Companies that have placed orders to import goods through Mozabique’s Beira port face cost escalation challenges as the road network and transportation infrastructure has been adversely affected following the devastating effect of cyclone Idai. The importers some of whose goods were caught in the storm have had to rely on insurance to claim for their damaged products.
And the Zambia Revenue Authority – ZRA has projected reduced import duty revenue collections in the aftermath of Cyclone idai. ZRA Corporate Communications manager Topsy Sikalinda said Zambia being a land-locked country receives significant volumes of imports through Beira in Mozambique.
Sikalinda said in a statement made available to Zambian Business Times – ZBT that the impact of the cyclone has left custom ports of entry into Zambia at low operational levels due to reduced traffic flow with Chanida border in Luangwa being the most affected.
He said the cyclone idai has caused disruptions to the international supply chain for most businesses and industries leading low revenue projections from trade taxes for ZRA.
He added that the cyclone has left some infrastructures damaged in the neighboring countries with some roads being closed during the period while at the sea various ship vessels were diverted or delayed due to bad weather.
“With Mozambique having had the worst impact, neighboring countries like Malawi and Zimbabwe experienced heavy rainfall, flooding and damage caused by high wind speed. Madagascar also experienced bouts of heavy rainfall during the storm’s pathway to Beira,” he said.
Sikalinda further said that most of goods that come to Zambia through these routes include fuel, mining machinery, hardware, groceries and foodstuff that are destined for Zambia and Democratic Republic of Congo-DRC. The Authority has however urged traders and transporters to consider using alternative routes into Zambia during this period.
