Delays at Beitbridge cost $35m annually

In a speech read on his behalf by the African Development Bank lead economist Mr Damoni Kitabire at the Zimbabwe International Trade Fair yesterday, the institution’s vice-president Professor Mthuli Ncube said Beitbridge was among the busiest border posts in Sadc.

“The delays, high congestion and inefficient service delivery experienced on the Beitbridge border, are very costly in terms of waiting time and transaction costs ranging between $29,3 million and $35 million a year. The costs are limiting the prospects for intra-regional trade expansion,” he said.

He said it was critical to improve the operational effectiveness of the border post through the establishment and effective implementation of a one-stop border post.

He said the implementation of the one-stop concept at the port of entry would improve the flow of commercial goods and services including people.

Prof Ncube noted that the setting up of one-stop border concept would not only facilitate improved trade within Southern Africa.

“It will also address the special needs of landlocked countries such as Zimbabwe, which lack maritime access, and consequently suffer high transit cost for their traded goods. The long distances from markets, the heavy reliance on the seaports of South Africa and Mozambique for exports together with the bottlenecks at the border posts, significantly constrain Zimbabwe’s trade, reduce its competitiveness both within the region and globally, and hamper its socio-economic advancement,” said Prof Ncube.

He said the one stop-concept would further unlock trade opportunities for Zimbabwe because Beitbridge was the major crossing with South Africa.

Prof Ncube said the reduction of cost of trading as well as expanding trade and investment in Zimbabwe by establishing Beitbridge as a one-stop border, would also go a long way in complementing national efforts aimed at addressing the deteriorating infrastructure, poor public administration, and the socio-political tensions that have rendered the supply of goods and services inefficient and costly.

Zimbabwe introduced the one-stop border concept at Chirundu that has created many benefits such as reduced supply chain transaction costs, increased Government revenues, and reduced duplication of efforts.