Investment still needed at border posts

Road-based freight services in and out of Zambia continue to be constrained by a lack of investment in the border posts, according to operators who do not want to be identified. “Take Chirundu (between Zambia and Zimbabwe), which is a one-stop border post. They need mains electricity, and they need common systems. All that is not in place. It is not operating as a one-stop border post,” said one to FTW. The Kasumbalesa border post between the Zambian Copperbelt and the Katanga province of the Democratic Republic of Congo consists of a single lane bridge, which also results in delays which add to the cost of doing business in Zambia. There are similar delays at the country’s other border posts caused by a combination of lack of skills, infrastructure, systems and corruption, say operators. These problems have far-reaching consequences for the economy, which is overly reliant on imports. Zambia’s manufacturing industry will not be able to be competitive for as long as the delays and costs of crossing the borders remain, say economists. With these constraints, Zambia recorded a trade surplus valued at K7623-billion (R115-million) in May 2010 despite strong mineral exports, according to the Zambian Central Statistical Office. Consumer and capital goods exports accounted for 11% of the total, with the remainder made up of refined and raw copper and cobalt. Road was the major mode of transport for Zambia’s exports, with 79 and 84% in May and April 2010, respectively. Rail was the second major mode of transport in May and April, with 19 and 15%, respectively. Air transport accounted for around 2% of exports, with the remainder being made up of electricity. Capital goods (mainly mining machinery) made up the biggest percentage of imports (36%), intermediate goods 32%, raw materials 21%, and consumer goods 11%. South Africa accounted for 33% of imports, followed by the DRC on 19%. Belgium, Kuwait and India, collectively accounting for 24% of Zambia’s total imports in May 2010