A Critical Evaluation of Participation Rates in South Africa’s Authorized Economic Operator Programme: Acceptability, Barriers and Implications
Year: 2025
Type: article
Abstract: Purpose: The Authorised Economic Operator (AEO) programme, launched by the World Customs Organisation in 2007, was introduced in South Africa in 2020 to enhance trade facilitation and compliance. However, participation remains low—only 137 of 357,653 eligible customs companies registered in 2021, rising slightly to 144 in 2022, reflecting under 1% engagement. Challenges include high entry barriers, limited impact, and insufficient uptake despite active promotion. This study assessed the programme’s low participation rate, identified barriers to adoption, and evaluated its impact. Design/Methodology/Approach: A mixed-methods approach was employed, using data from 22 purposively selected participants, including a university tax lecturer and 21 middle management staff from the South African Revenue Service’s AEO department. Findings: While participation is low, several informants regard the current figure of 400 approved clients as acceptable. The programme is considered compliant with international standards and compares favourably with similar initiatives in the region. Implications/Originality/Value: Enforcing adoption of the AEO programme through policy for large businesses may ensure that all big companies are AEOs which could increase the number of accredited operators.
Authors: Kiran Baldavoo, Olebogeng Nkhahle
Institution: University of KwaZulu-Natal
Language: English
Field: Social Sciences
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4416098528