An impeccable source has revealed to the Zambia Business Times – ZBT that South African based Zambian born millionaire and promoter of My Home Town that splashed cash in Choma earlier this year is about to lose his lease of Zambia’s Walvis bay dry port held by his company Africa Union Cargo.
A source told ZBT that the Zambian government and Africa Union Cargo – AUC are having disputes in relation to how much revenue government is receiving from AUC, which is managing the port via a concession and lease agreement.
Speaking in an interview with the Zambian Business Times-ZBT, the source who asked to have their name withheld due to the sensitivity of the matter disclosed that government is planning to take over the facility so that ZAM Cargo – state owned company can manage the dry port.
“There are a few issues in terms of how much government gets, there has been a dispute on what government receives and what they perceived, so government is planning to take over the facility so that Zamcargo can manage it”, the source said.
However, it is not clear how Zambia intends to take over the operations of the dry port without paying out huge sums in damages for breach of contract as some stakeholders have indicated that the lease of the dry port to Africa Union Cargo is for 20 years and still running.
When contacted for a comment on the matter, Minister of Transport Frank Tayali declined to comment on the matter stating that the issue was a work in progress and government would give details on the matter at an appropriate time.
The Namibian government gave Zambia as a Southern African Development Community (SADC) land locked country a dry port at Walvis Bay along the Atlantic Ocean coast of Namibia in order to enable Zambia develop their own sea dry ports at Walvis Bay as a way of encouraging trade through Namibia.
Zambia started using its Walvis bay dry port, which was constructed at an initial investment cost of US$3 million in 2017. Government has not been clear on how Zambian importers and exporters can best utilize the Namibian port of Walvis Bay due to its accessibility and special status given to Zambia.
The Port offers the Zambian economy a sea route and can easily be used by the Zambian business community to access the market in Europe and America. Walvis Bay Corridor offers Zambia an excellent opportunity for both the private sector and parastatals to participate in international trade.
Currently, Zambia’s dry port at Walvis Bay has been leased or concessions to Africa Union Cargo but it is not been publicly revealed on what the terms have been agreed for the lease or exit clauses. ZBT has also reached out to Africa Union Cargo and more details to follow as they are made public.
