Chirundu one-stop border poster meets revenue target

Africa’s first one-stop border post at Chirundu, between Zambia and Zimbabwe, is beating its budget forecast. The Times of Zambia quotes Chirundu One-Stop Border Post deputy manager, Kasepa Mulenga, as saying that the crossing met its 2012 budget in October – two months ahead of schedule. According to the report, the border post collects over K180 billion (R293 million) a month. It was opened officially on December 5, 2009 by the presidents of Zambia and Zimbabwe, and is one of the links in the North-South trade corridor designed to reduce transit times and logistics costs in the region. There have, however, been delays in the establishment of other one-stop posts along the route. This is despite the fact that the 2012 World Bank’s “Doing Business” report identified the cost of border delays, not lack of infrastructure, as the biggest cost to logistics on the continent. Red tape and corruption at border posts is seen as one of the biggest obstacles to the growth of inter-regional trade. “To unlock the potential of intra-African trade and boost competitiveness, governments should redouble their efforts to improve both “hard” and “soft” infrastructure,” says Habiba Ben Barka, senior planning economist with the African Development Bank. In his paper on the challenges facing intraregional trade, he says “hard” infrastructure improvements would include: constructing and/or rehabilitating transportation networks (roads, railroads, port facilities and airports), ensuring a reliable and affordable source of power, and building robust ICT systems and services. Measures on the “soft” infrastructure side include: simplifying and harmonising customs and border procedures; encouraging the use of new technology by customs agencies; and eliminating corruption and illegal payments (including bribes to officials) at borders and checkpoints. INSERT ‘Biggest logistics cost is border delays, not lack of infrastructure.’