Zambia and its largest African trading partner, South Africa have agreed on modalities of how the smooth flow of traffic and in effect trade would be attained despite the restrictions on movement due to the health measures to contain the coronavirus – covid 19 transmission.
Despite Zambia running a deep trade deficit with South Africa, the country has continue to facilitate expanded trade with South Africa being the major supplier of consumer goods to Zambia while Zambia has little exports to South Africa to talk about. South Africa also uses Zambia as a transit route for its exports to the vast market in the Democratic Republic of Congo – DRC.
The statement received from the Ministry of Finance by the Zambian Business Times – ZBT stated that Zambia and South Africa have formed a private sector working group to create a framework targeted at ensuring the smooth flow of essential goods and services, during the Covid-19 partial lockdown in Zambia and full lockdown in South Africa.
The two countries have discussed the necessity of ensuring that South African Chain Stores operating in Zambia open their doors wider to local producers and suppliers to ensure that there is business continuity and empowerment during the Covid-19 period and beyond.
Speaking at a meeting chaired by Deputy Secretary to Cabinet Christopher Mvunga on 9 April 2020, the Zambian Government has placed the sustenance of the value chain and continued empowerment of local businesses at the centre of its economic sustainability and emergency purpose plans for the immediate term and the future.
And Finance Minister Dr. Bwalya Ng’andu encouraged the Zambian private sector to rump-up participation in the value-chain and take advantage of the internal market platforms while maintaining quality standards, regular supply and stable prices to the greatest extent possible.
And South African High Commissioner to Zambia George Twala said his office is ready to work with Zambian authorities to facilitate strengthened engagement between private sector players of the two countries and ensure that the value and supply chains are kept in motion.
Twala called for a proactive review of trade and economic affairs that need to be reviewed in the entire value chain to ensure a fast paced programme that will mount a lasting positive impact on the future economic relations between the two countries.
Among the other key issues discussed was import substitution, mutual market access, supplier payment systems, banking and financial services, transport and logistics, smoothening of regulatory matters, border clearance and transit insurance, and the creation of the Zambia and South Africa working group on trade and economic facilitation during Covid-19 and beyond.
