Cross-border tariff hike hurts Angola operators

Doing business in Angola, the former war-torn nation that has found peace, requires a great deal of patience, especially when one of your trucks is stranded at the border post, says Mahaveer Chavda, the managing director of Chavda Freight. “When delays occur, usually over paperwork, they can be fixed in around three hours in South Africa. But the same problem, often relating to extra documentation required, would take around three to four days to resolve in Angola,” says Chavda. One of the major hurdles is communication, with Angolans predominantly Portuguese-speaking. Angola was ruled by Portugal from the 16th century until 1975 when independence was followed by war until 2002. Rich in mineral resources, Angola’s economy has shown signs of a revival but doing business for South Africans poses many challenges. The use of South African drivers is one of these. They require visas to enter the country, and these are not easy to secure. Chavda says after losing business because of delays, his company engaged drivers from Namibia to take its trucks into Angola since they do not require entry visas into the country. As one of the few specialists operating in Angola, Chavda says he has gained over a decade of knowledge and experience in the country. “Many fly-by-night operators have tried to offer cheaper prices and cut us out of Angola but we have a reputation, a network with an office in Luanda, the capital, and understand the business environment,” he says. A key challenge facing Chavda Freight has come via the Cross Border Road Transport Agency (CBRTA), which hiked its tariffs for the first time in six years by as much as 700% for truck operators. “We used to pay R390 for a three-month permit per truck, and this has risen to R2300 a vehicle,” he says. Chavda adds that at least with the CBRTA there was certainty. “In Angola, if officials at the border post find one fault with your vehicle, for example a faulty reflector light, they impose a fine of up to 10% of your cargo. “The average load we take into Angola is worth around US$700 000, and a 10% fine is around US$70 000 (about R450 000). Chavda says the road transport system in Angola has also improved. “If you have a smooth journey it can take ten days to deliver cargo to Luanda while the journey by ship from Durban takes 12-15 days. Port congestion and delays at the border could even make it longer longer,” he adds. “Our clients are satisfied sending cargo to Angola using our trucks because there is more certainty about the time it will take to deliver the goods there,” he says.