The development and actualization of the high trade volumes potential between Zambia and Angola has continued to suffer setbacks from lack of serious infrastructure investments in roads and modern one stop border post facilities despite the two countries signing a bilateral trade deal and scrapping off some Visa requirements about 5 years ago.
According to the UN’s COMTRADE data, Zambia exports to Angola in 2020 were a paltry US$1.7m and Angola’s exports to Zambia were only US$220k, for neighboring countries that could do millions if not billions of trade considering that Angola had Oil and Zambia has a diversified Agro produce.
And the Southern Africa Cross Border Traders Association (SACBTA) has revealed that there is need to develop modern border infrastructure including road and other support infrastructure to facilitate cross border trade between Zambia and Angola.
SACBTA secretary General Jacob Makambwe said since Zambia and Angola signed a trade agreement in 2016, very little infrastructure development has been seen at either Jimbe or Chavuma border posts in North-Western Province in terms of roads and border infrastructure itself to facilitate the movement of people and goods.
Makambwe said there is need for the two countries to focus on developing infrastructure especially the road infrastructure that leads to the borders between Zambia and Angola to facilitate trade. To ensure that local traders and SACBTA members participate, land borders provide the best option.
“Trade facilitation can only occur when there is infrastructure. We have some people and businesses that are trading with Angola, but not small scale cross border traders. It is the small scale traders that grow into big cross country traders that would help increase the trade volumes. Currently, only a few traders located say in Chavuma and Jimbe/Ikelengi are usually the ones that are doing some form of trade because they are closer to the borders between Angola and Zambia.
“One of the critical aspects of Zambia and Angola trade, since the Government signed an agreement on trade with Angola, we have actually seen very little infrastructure in terms of roads that leads to the borders and also the border infrastructure itself for facilitation of the movement of people in those particular areas. The only thing that we keep on hearing is the issue of bilateral trade that can take place between the two countries,” he said.
Makambwe said there are many opportunities that lie between Zambia and Angola that need to be exploited for the benefit of the two countries. He said, “We know that Angola has crude oil, we also know that there used to be the proposed Benguela railway that could actually go up to Angola’s capital, we know that agro produce is very expensive in Angola, so these are some of the critical infrastructure that needs to put in place if the two countries want to enhance their economic growth and realise regional integration through trade.
“So you see, like for example we are talking about the Kazungula border now because of the bridge that has been constructed, but the bridge on its own is not just enough, we also improved on road infrastructure at the border and put up a one stop border post because these are the critical infrastructure for regional integration and trade,” he said.
He noted that Angola is part of the Southern African Development Community (SADC) where there have seen many business proposals on how Angola can become critical to some of the SADC member countries. Most members of SADC including Zambia need say Crude Oil from Angola which can land with lesser transport costs when compared to imports from the Middle East.
Makambwe noted, “Again, if you talk about regional integration, countries have signed agreements to do with the African Continental Free Trade Area (AfCFTA) and SADC is also part and parcel of the agreement, so all these economic blocs need to interconnect each other through trade, meaning that we need to trade more with each other.
“You know that there has been one aspect that the government of Angola and Zambia have agreed on which is to waive or remove visa restrictions or requirements for people to go and do trade. But again you see that the pandemic has also brought in another dynamic that would continue to restrict people from moving.
“If there can be improved border management infrastructure between the borders for the two neighboring countries, it can be okay. But also, its not only from the Zambian government, there is need for Angola as well to respond from its side in terms of border infrastructure, and this can facilitate the initiation of serious small scale trade that would then grow to also encompass medium to large scale trade between Zambia and Angola,” he added.
