Zambia’s logistics efficiency rates very low on global scale

Moving freight in and through Zambia takes a thorough understanding of the challenges and support on the ground. The World Bank’s “Connecting to compete 2010: Trade logistics in the global economy logistics performance index” puts Zambia at 138 out of 155 in terms of overall logistics efficiency. Germany was ranked number one, and Somalia last. South Africa is 28th. In March this year, the Times of Zambia quoted works and supply minister Mike Mulongoti as saying that the country needed over R1.5-billion a year to maintain the core road network. In 1991 it was estimated by the National Road Fund Agency (NRFA) that 80% of the road network had deteriorated. Road works are funded through a combination of fuel levy and donor money, and there are moves to toll some of the routes. At 138, Zambia is behind neighbours Tanzania (95) Mozambique (136) and Botswana (134), but ahead of Angola (142). Malawi and Zimbabwe were not included due to a lack of data, and there was insufficient information for a comparative study on the Democratic Republic of Congo. Zambia ranked 111 for customs, 140 for infrastructure, 128 for international shipments, 149 for logistics quality and competence, 130 for tracking and tracing, and 131 for timeliness. The logistics challenges of Zambia and its neighbours have a direct impact on the local economy, according to the World Bank report. It states, “except in high-income countries, the availability and quality of trade-related infrastructure is a major constraint to performance”. According to the World bank statistics, it costs around US$5 000 and takes four days to transport a 40-foot container to Zambia from the nearest port, which is 2 000 kilometres away. This made Zambia one of the most expensive countries in the survey. According to the study, just 1% of cargoes entering or leaving Zambia is physically inspected – which is on a par with a number of industrialised and developing countries. But, through the freight corridors and other inter-country initiatives, one of the biggest constraints is being addressed: “Efficient border management and coordination of the various agencies involved in border clearance is increasingly important,” says the report. Zambia has also started removing some of the red tape and ownership constraints. “Income is not the only determinant of a country’s logistics environment. Even in low-income countries, policymakers can do much to boost performance,” says the report. Liberalising logistics services markets, for example, can encourage local service providers to increase quality and price competitively. This is particularly important in sectors such as trucking and customs brokerage that are essential to efficient service delivery by international forwarders, says the World Bank.