Trade boost as one stop border post opens

08 December 2009

Trade in Africa received a boost today as the latest phase of a road infrastructure overhaul was opened.

The One Stop Border Post, between Zimbabwe and Zambia, will halve waiting times for hauliers carrying goods around the continent, helping businesses and investors to do business.

The border post is part of the North South Corridor (NSC) upgrade. The NSC is one of the main trading routes in Africa, cutting through Tanzania, the Democratic Republic of Congo, Zambia, Malawi, Botswana, Zimbabwe, Mozambique and South Africa.

Waiting times at borders between countries increases costs for businesses that must pay haulage firms while drivers sit idle for up to three days while paperwork is processed.

It also reduces the incentive for global firms to trade within Africa as cargoes can take weeks to arrive at destinations which would take a couple of days to reach in Europe.

For example, a single cargo of copper from the copper belt in DRC could take two to three weeks to reach the southern ports but the equivalent journey in Europe would take just 48 hours.

Gareth Thomas, Minister for Trade and Development, welcomed the opening of the border post as a significant step in improving Africa’s business infrastructure.

He said:

“Sound infrastructure for moving goods around Africa is absolutely vital for businesses and investors. The opening of the one-stop border post in Chirundu underlines the fact that Africa is open for business.

“The reduction in processing times will benefit businesses that will be able to move cargos more efficiently but will also have a social benefit to drivers who will spend less time waiting to be processed.

“The North South Corridor will bring economic benefits to some of the poorest people in the world through improved trading conditions which will increase investment in African businesses.”

The new border post, to which the UK has contributed £850,000 over the last three years, will streamline the border-checking process and those passing through it will now only have to submit their documents once. Three new One Stop Border Posts along the North South Corridor are planned by 2012 and others will follow in the region shortly after.

The North South Corridor programme is financed by a mix of public and private investment by donors including the UK Government, World Bank, EC, the three regional economic communities in East and Southern Africa (COMESA, SADC, EAC), international development agencies and the private sector.