Economic blocs boost cross-border trade

For example non-traditional exports are being subjected to undue procedures that are inimical in supporting cross-border trade for the two mineral-rich neighbouring countries.

Felix Mutati, Zambia’s minister for trade is still optimistic that the ongoing bilateral trade agreement discussions going on with DR Congo will soon free up the market for Zambian goods.

“We are hopeful of coming to terms with the neighbouring country,” he said.

However, there is hope as many countries in the region now want to work together to achieve free trade through Customs Union.

What is killing cross-border trade at the moment is congestion at most border entry points.

For example lengthy delays, onerous Customs requirements, corruption and other problems tend to impact negatively on the free flow of goods.

A lot of complaints have been raised on this issue but then not much is being done to address it.

Only a few countries like Zambia, Botswana, Zimbabwe and Malawi are working towards the establishment of one-stop border points to assist trade flows.

This is needful as almost 50 per cent of countries in the region are landlocked giving them the urgency to improve both their transport systems and border posts to cut down on traffic delays and haulage costs.

Currently, trucks take three to five days to get through various border crossings at a cost of not less than $1,000 per truck, per day.

Further still, delays on any trainload with vital exports results in the loss of not less than $1,600 per week.

Other than that transport costs in the region are quite high at more than 75 per cent compared to those in industrialised countries.

But then it is alarming for a region that is already marginalised in world trade.

It is for this reason that it is costing 15-20 percent higher for South African goods to reach their market destinations in the COMESA and SADC regions.

Since South Africa is undoubtedly the engine of cross-border trade in Southern Africa in comparison with the northern corridor any transportation bottlenecks tend to hinder trade.