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