I am pleased to share the second Ministerial article in this week’s column. Today I focus my discussion on the broader trade facilitation interventions the Ministry was making in its quest to contribute towards realisation of the New Dawn Governments mantra of “Restore, Revive and Revive”. For our economy to rebound and have a meaningful mark on poverty, tenacity and intrepidness in decision making processes at policy formulation and implementation is a necessity. Despite itselementary sense, therefore, this mantra remains our key yardstick and a vehicle through which we aspire to deliver positive outcomes from our efforts.
With the aforesaid, therefore, let me start by pointing out that trade facilitation continues to be a key factor in improving trade efficiency and competitiveness of countries, especially land linked countries like Zambia. The importance of trade facilitation lies in its ability to make trade across borders (imports and exports) faster, and cheaper and more predictable, whilst ensuring its safety and security. Thus, it focuses on the simplification and harmonization of formalities, procedures, and the related exchange of information and documents between the various partners in the supply chain. The prominence of trade facilitation in the global trade and development agenda culminated in the conclusion of the World Trade Organization (WTO) Trade Facilitation Agreement (TFA) which came into force on 22nd February 2017 and to which Zambia is part to. As part of modalities to domesticate the WTO TFA, Zambia promulgated the Border Management and Trade Facilitation Act (No. 12 of 2018) which provides for coordinated border management and control for the efficient movement and clearance of goods.
In a quest to enhance trade facilitation and consequently improve the country’s national trade competitiveness, Zambia, on 27th November 2020, signed a Euro 6.8 million Sub-Delegation Agreement with the Common Market for Eastern and Southern Africa (COMESA) to implement the Zambia Border Posts Upgrading Project (ZBPUP). The sub-delegation agreement is part of modalities to implement the 11th European Development Fund (EDF) funded Trade Facilitation Programme which aligns with the COMESA Treaty aimed at removing Non-Tariff Barriers, lowering trading costs at borders, improving trade infrastructure and automation of customs and transit systems.
ZBPUP is unique in nature, as it feeds into COMESA member states’ ambition of becoming a single trade and investment area in which impediments to the movement of goods, services, capital and people will be removed by 2025.
As you may be aware, Zambia has several border posts linking up with our neighbours such as Angola, Botswana, Democratic Republic of Congo, Malawi, Mozambique, Namibia, Tanzania and Zimbabwe which makes the country a key transit route for cargo across the North-South Transport Corridor.
Consequently, the signed, Sub-delegation agreement being implemented under the ZBPUP hinges on its potential to specifically address trade and Trade Facilitation related bottlenecks faced by traders (both small and large) through upgrading the Chirundu, Mwami and Nakonde One Stop Border Posts (OSBPs) which are key identified borders to shape Zambia’s trade profile.
Implementation of the project will result in the upgrading of Chirundu, Mwami and Nakonde OSBP as well as assisting in improving efficiency of the services offered by Border Agencies.
One of the crucial measures under the WTO TFA is to enhance border agency cooperation. This key commitment is promulgated under Article 8 of the agreement and aims to facilitate coordination between border regulatory agencies (at both national and international levels) with the anticipated results of lower trade costs, faster processing and improved customer satisfaction for traders. This implies that countries should work towards implementation of the Coordinated Border Management (CBM) approach which is essentially the holistic approach involving all cross-border agencies so that their regulatory functions are discharged in a coordinated manner. Intuitively, the CBM approach involves putting in place official measures, mechanisms and communication channels to ensure that regulatory processes are streamlined and effective.
Zambia has made strides in enhancing coordination among border agencies through the implementation of a National Electronic Single Window (NESW) through the Automated System for Customs Data (ASYCUDA) which typically allows integration of the processes and controls of multiple border agencies through ICT. Under the ZBPUP, the Ministry of Commerce, Trade and Industry (MCTI) will facilitate the upgrade of the ASYCUDA World system and other related processes to the latest version. It is envisaged that this will result in more border agencies connecting to the single window and hence streamlining cross border processes. In addition, the project has procured ICT equipment to enhance operations of border agencies at the three targeted borders.
One other important aspect of CBM is the establishment of Joint Border Committees (JBCs) which facilitate multi-sectoral collaboration of key border agencies and the private sector involved in the clearance of cargo at the border. This results in coordination between border agencies with the aim of enhancing efficiency at borders. Within the framework of the ZBPUP, the ministry is supporting the strengthening of the JBCs at the three borders. In the month of April 2022, the ZBPUP has supported the reconstitution of the JBCs for Chirundu and Nakonde borders while the JBC for Mwami is planned for May 2022. With support from the project, the reconstituted JBCs have defined their work plans to improve coordination at the border and enhance border efficiency.
Within the legal and regulatory result area under the project, my ministry commenced the review of the Border Management and Trade Facilitation Act (BMTFA). Once concluded, the next steps will be the alignment of border agency laws to the BMTFA, development of regulations for the implementation of the Act, review and harmonisation of other legislation for Border Agencies in line with the BMTFA, review of inter-agency MoU and development of Standard Operating Procedures (SOPs) for each border. All these interventions are aimed at enhancing coordination and efficiency at the border.
Under soft infrastructure, the project is procuring various equipment for border agencies at the three borders. Other servers, computers and printers, the project is in the process of improving signage at the borders and acquiring equipment such as biometric web cameras, driver’s license scanners, passport readers, card printers for permits, security Cameras (CCTV) to enable remote visual coverage of the borders, baggage scanners to facilitate clearance for passenger and small scale cross border traders crossing the border posts, metal detectors to secure and facilitate the movement of passengers and Mini-Labs equipment and required testing and diagnostics Kits for rapid assessment for SPS/TBT. All these are aimed at improving the operations of the border.
Lastly, the project is also conducting various capacity building interventions for border agencies operating at the three borders including implementation of the WTO TFA, Risk Assessment and Food Safety, SPS/TBT, training in the COMESA trade and transport instruments and many other areas relevant to improved border coordination.
Let me end by stating that the ZBPUP is exceptional as it goes to the core of the Ministry’s work and the New Dawn Governments’ resolve to restore economic growth through macroeconomic stability, economic diversification and debt sustainability. All the interventions under the project are intended to reduce clearance time at the border, increase satisfaction among users of border facilities, and increase revenue collection. The ultimate goal remains enhanced trade facilitation and improved competitiveness for growth and development.
The author is the Minister of Commerce, Trade and Industry (MCTI).
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