Zambia should backs its local cross border traders to expand export or risks remaining a net importer and dumping ground for foreign goods. Local traders growth will directly translate into increased forex earnings and local benefits.
Speaking in an an exclusive interview with the Zambian Business Times – ZBT, Cross Boarders Traders Association – CBTA of Zambia Secretary General Jacob Makambwe said there is need to forcus on value addition and agro processing activities if the country is to expand its exports.
“There is need implement the industrial development policy that will support local value addition and the agro process activities. This includes developing the packaging and export standards certification, so that Zambian products are accepted in especially neighboring countries”, Makambwe stated.
He warned that if Zambia does not have value addition, it will continue being the dumping ground for foreign products and all our goods are going to come from outside the country. The country needs urgently implement its industrial development policy and re-develop its local manufacturing sector.
He added that Zambia is now part and parcel of the African Continental Free Trade Area – AfCFTA which is an agreement to open up to almost all African countries products and service, which will introduce other market forces.
Makambwe stated that his association which has over 500 registered members need to be supported if Zambia is to meaningfully grow its exports and earn the much needed foreign exchange.
He told ZBT that currently, the association members Business is about 70% imports and 30% exports. But when you look at the exports, the numbers could be more as most local traders rather take their goods to the Zambia border side and these are then bought off by traders from neighboring countries who then cross over to their countries. So the export numbers are much more than the official statistics.
The cross boarder traders association has called on the ministry of foreign affairs to sign off more bilateral trade deals that can have agreed quotas and could be utilized to drive more trade especially by local traders.
And Mambwe said most of the goods that Zambia imports through small scale and local traders includes motor vehicles, motor vehicle spare parts, clothes and groceries. So these are some of the areas were Zambia can deliberately look at setting up local manufacturing facilities.
In terms of exports, goods originating from Zambia are mostly Agro products and Livestock. This is an area we’re the country needs to develop its Agro processing industry to get better value from exports.
He told ZBT that the most active borders for local traders include Nakonde, border with Tanzania, Kasumbalesa border with the Democratic Republic of Congo, Chirundu border with Zimbabwe, Kazungula border with Botswana and Mwami border with Malawi.
He stated that “Nakonde is one of the busiest borders as its used as the entry point of most imports not just from Tanzania, but as a transit border for goods from as far as China and the Middle East. It’s also a transit point for goods destined for DRC Katanga region.
Chirundu is also the other land border which is very busy as it is a transit point for goods from South Africa to Zambia as well as transit goods to DRC. So the cargo that comes through Chirundu or even Kasugula also includes goods destined for DRC.
Zambia currently exports about 800,000 tons of copper annually mainly through multinational companies, but the export proceeds in dollars are not entirely remitted back to Zambia making the Kwacha Weaker and in perpetual depreciation fight.
It’s it is projected that if local traders were involved, the externalizations of export proceeds could be minimized as its generally a known principle that people invest in their home countries. It’s now known that there is no country that has been sustainably developed by another country.
