Debt relief is good news for freight industry

Kevin Mayhew RECENT DEVELOPMENTS with regard to Zambia’s debt relief bode well for the growth of the market for consumables because of better wages, changes in the level and spread of consumer wealth and new spending patterns, says the managing director of Lusaka-based freight forwarder Circle Transtra International, Nicholas Chizyuka. Chizyuka was referring to the April announcement that the International Monetary Fund (IMF) and World Bank had approved Zambia’s bid to reach the Highly Indebted Poor Country (HIPC) point. Achieving this places the country favourably for relief from its multi-billion dollar national debt. Already 50% of its debt has been written off subject to its continued adherence to good governance and poverty alleviation with the saved interest from its scrapped debt. “If the government sticks to the spirit and letter of the objectives of the scrapping then it will mean money in more people’s pockets to ultimately spend on consumables that all require freight,” he explained. Transtra is already heavily involved in the movement of consumables into the Democratic Republic of Congo (DRC). The company moves products by road and rail mainly from South Africa. However, Chizyuka said there was a lot of interest in moving bulk products through Dar-Es-Salaam. The company is also exploring the Trans-Caprivi route to Walvis Bay in Namibia which is more suited to moving lighter loads. Transtra uses the services of a sister company, CARS, for its transportation.