‘Briefcase operators’ destabilise forwarding industry

As clearing and forwarding finally comes into its own in Zambia, another problem is raising its ugly head – agents who trade far below the going rates. Known as the Chimutengo Boys (translated as the boys with offices under the trees), they are nothing but briefcase operators who target prospective clients at the Lusaka airport and at the border posts. David Chimfwembe, Lusaka area manager for Manica Zambia, who is writing a thesis on the Zambian clearing and forwarding industry for his MBA, says the Chimutengo Boys are a challenge for the industry as they cannot really be stopped. “Questionable dealings are often part and parcel of what they do. They clear cargo for far below the going rate and there are people who use them because of that. It is however a very dangerous decision,” says Chimfwembe. “There has been too much of a mushrooming of agents and in a way it seems out of control. The Chimutengo Boys are one result of this.” While they clear quickly and cheaply, they target some organisations with inventive ways of clearing. “It would be very difficult to draft these agents into our ranks,” says Chimfwembe. “While they are offering the same service as us, they are cutting costs and companies should be careful as they have no investment and no credibility. If something goes wrong such as misapplication of customs tariff codes or queries from customs later, you will not find them – they go underground.” Chimfwembe, who has done much research on the forwarding and clearing industry in Zambia for his thesis, says despite the challenges posed by the Chimutengo Boys the industry is developing and is in a good position for the first time in years. “Many opportunities are being presented and the costs of doing business per se are lower. Smaller players are also finally stepping up and penetrating the market that for a long time was controlled by a few big role-players, once referred to as the big five of the industry. We are seeing entrepreneurs developing and there is more competition than ever before.” He said Zambia had some unique challenges to overcome, but also plenty of opportunities. “The days of control are over and it is now easy to set up a business and challenge the bigger companies.”