The mega-deals
signed between
China and
Zimbabwe in
December last year will be
a major game changer for
neighbouring cross-border
transporters, according
to Federation of East and
Southern African Road
Transport Associations
(Fesarta) CEO, Mike
Fitzmaurice.
“Zimbabwe is a
landlocked country and is
thus dependent on ports
such as Durban and Beira,
Mozambique as its main
ports of entry for global
imports and exports,” he
commented. And with
the subsequent energy,
transport, agricultural
sector and infrastructure
revamps that would come
into effect as a result of
these deals, Zimbabwe’s
trade could
strengthen
considerably,
he said.
“Zimbabwe
is a
commoditydependent
economy,
with over
half of its
exports
originating
from the
mining
sector –
which has
been hard hit by the
current power crisis. The
deals are therefore a winwin
situation for both
countries, with China
looking for new markets
in Africa and Zimbabwe
looking to revitalise its
f lagging
economy,”
Fitzmaurice
told FTW.
He
believes the
investment
deals are
likely to be
a long-term
investment
by China
and pointed
out that
wise
transporters
would see
this as an opportunity
to grow their business
and market share in the
region. “Zimbabwe does
not currently have the
resources to support the
planned infrastructure
developments. This
creates opportunities
for local industry in
the region, particularly
South Africa, to supply
the resources required to
spur development,” said
Fitzmaurice.
He told FTW that the
greatest obstacles to
growth in the southern
African region overall
continued to be the
lack of road and rail
infrastructure and border
inefficiency.
“Transportation accounts
for a large proportion of
infrastructure investment
in most sub-Saharan
countries. Nevertheless,
the quality of roads and
railroad networks still
lags far behind much of
the rest of the world and
they are in serious need of
improvement,” he said.
According to
Fitzmaurice, many roads
remain unpaved and most
rail lines constructed
during the colonial period
are in poor repair and
outdated.
“The road access rate
in Africa is only 34%,
compared with 50%
in other parts of the
developing world. The
African Development Bank
reports that high transport
costs add up to 75% to
the price of goods in
Africa.” He added that
independent studies done
by transport logistics
consultants in the region
showed that of these
transport costs, 70%
were ‘on the road’
transport costs
and 30% were
related to port
charges and
cross-border
fees.
“Of the
transport
related costs
(70%), 60% is directly
related to delays ie, loading
at ports, border post delays
and stoppages along the
road at weighbridges and
checkpoints.
It should also
be noted that
30 countries
in Africa
have chronic
power
outages
and face
an energy crisis,” said
Fitzmaurice.
INSERT
75% What high transport costs
add to the price of goods in
Africa
INSERT & CAPTION
Zimbabwe is
a landlocked
country and is thus
dependent on ports
such as Durban and
Beira.
– Mike Fitzmaurice
CAPTION
Chinese president Xia Jinping signed several investment deals
with his Zimbabwean counterpart, Robert Mugabe, during his
southern Africa visit last month.
China-Zim deals could kick-start transport opportunities
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