company based at Dar-es-Salaam port, plan to open Dry Ports at the
Nakonde and Chirundu border posts to increase the handling of cargo.
This is a positive innovation that should have developed years ago by
both Government and the private sector.
Clearly Nakone and Chirundu are Zambia’s busiest border posts for both
imports and exports. However, as Zambia looks to set herself up as the
region’s natural trading hub, several other opportunities for dry
ports are available at Kasumbalesa, Kasangula, Katima Mulilo, and
Mchinji.
These border posts are already fairly active ad can be stimulated for
trading activity by the introduction of dry ports to facilitate cargo
handling and settling.
Evidence on the ground already informs us that the Democratic Republic
of Congo (DRC) is a lucrative market for Zambian food exports and for
South African finished products. Many trucks pass through our borders
every day with cargo destined for the DRC without leaving much income
to Zambian companies with the exception of fuel.
Dry ports aimed at servicing the DRC will house cargo sourced from the
south, and stimulate some value addition services such as re-packaging
and final processing where necessary, before being re-exported to the
DRC. The basic warehousing of cargo makes the products readily
available to the customers across the border such that delivery times
are kept to a minimum and reliability of access to goods is
established within Zambia.
These are the attributes of a good trading partner.
Since Mofed handles cargo at Walvis Bay in Namibia and Beira in
Mozambique, a compelling motivation exists for the development of dry
ports at Katima Mulilo and Chanida near Katete on the Mozambican
border with Zambia.
Private investment in dry ports is not new to Zambia as evidence is
seen at the former Lido Drive In Cinema dry port installation on the
Kafue road. The dry port ran for a few years and was later dismantled
for unknown reasons.
Opportunities exist for dry ports to be established at Kapiri Mposhi
where Tazara and Railway Systems of Zambia link up. This is also a mid
way point between Lusaka and the Copperbelt thereby providing access
to at least one third of the population.
Dry ports promote enhanced trade as goods can be kept in bond in close
proximity to the targeted markets. Money is therefore primarily
invested in stocks, while taxes are only paid once the goods are sold
and removed from bond.
The dry port concept will fast develop Zambia into a trading hub for
our neighbours namely; DRC, Angola, Namibia, Botswana, Zimbabwe,
Mozambique, Malawi, Tanzania and Burundi and Rwanda across Lake
Tanganyika.
This ten country market should be the focus for Zambia in respect to
easier regional trade.
Mofed may be the flagship for market penetration within the region
for Zambia, but the choice and character of the private sector
partners in this program will go a long way towards establishing a
competitive atmosphere in the sector such that other players from the
private sector can be encouraged to invest and rapidly build the
trade network across the country which will no doubt contribute to a
higher GDP for Zambia.
Options for dry ports at the four international airports are also
possible. Many high value but small products are usually marketed
through airfreight corridors. These products include ICT items,
jewelry, cosmetics, and electronics. In many countries of the world
airports are natural targets for dry port initiatives. Transportation
to different destinations across the country is made much easier from
one airport to another.
The threat however, is that efforts to monopolize this sector will be
made by pioneer investors with the goal of cornering the market and
making as much money as possible at the cost of trade expansion for
the greater majority.
Government and the relevant line Ministries will do well to keep an
eye on the development of this dry port program and put in place
measures to attract more players and open up the opportunities to as
many investors as possible to encourage competition for the benefit of
both the country and the consumers.
Increased trade is usually the basis for other economic activity to
take off. Trade is the activity that tests the business waters before
serious long term investments are considered. Trade is a confidence
builder in the economy which is then followed by industry and real
estate that are medium and long term investments.
Mofed may lead the way now, but the future economy must be based
private sector investment for sustainability, competitiveness, and
re-investment. We must not ignore this basic goal.
Published 11 August 2009
No comments:
Post a Comment