DRC mining potential bodes well for project growth

Joy Orlek THE MOVEMENT of transit cargo from international sources into Africa is the speciality at East Rand-based Cross Africa, where projects are a strong focus. From food aid parcels to mining projects, particularly into Lubumbashi and the Copper Belt, business has been brisk in recent years. But the stronger rand and ownership changes at the mines have led to a slowdown in activity with a lot less project cargo moving into the region, says managing director Jeff Smit. The major challenges, in his view, are border delays and red tape. “Projects into Africa are generally duty free and VAT free and require permits and certificates. When you get to the border, although your documentation may be in order, there are generally delays,” says Smit. And if you’re transiting through Zimbabwe to reach Zambia or Malawi, most of your delays are likely to be in Zimbabwe which is not even the country of destination, he added. “Devaluation of currencies for transit bonds is a big issue here. If you’re carrying electronic goods or computers or anything that’s high value, you’re likely to be delayed through Zimbabwe because the customs guarantee bonds are not worth much any longer.” But Smit is confident that we will begin to see investment in mining in the DRC, which is positive news for companies like Cross Africa which has the expertise to navigate the often turbulent waters. The company was established 10 years ago. Smit has notched up 16 years experience in the industry.