By JULIUS PHIRI
ZAMBIA and Malawi are in the Landlocked Least Developed Countries (LLDCs).
The two countries are found in the Southern African Development Community (SADC) and Common Market for Eastern and Southern Africa (COMESA) regional blocs.
Being landlocked has been disadvantageous to a country’s development because it is either enclosed by land, or whose only coastlines lie on closed sea.
Currently, 48 countries locked up in that way.
For landlocked countries, the effects are particularly strong, as they are limited in their trading activity with the rest of the world.
Others have argued that being landlocked may actually be a blessing as it creates a natural tariff barrier which protects the country from cheap imports and in some instances, this has led to more robust local food systems.
Landlocked developing countries have a significantly higher cost of international cargo transportation compared to coastal developing countries.
However, recently, Zambia and Malawi launched Nacala Development Corridor that will undertake trade facilitation measures aimed at easing and mitigating challenges associated with landlockedness.
According to Eastern Province Permanent Secretary Chanda Kasolo who was represented by assistant secretary Beenzu Chikuba remarked that the launch of the project was another milestone and blessing in the region.
The Nacala Development Corridor project under phase IV will focus on enhancing and promoting regional integration in Southern African through proper road network, one-stop-border post and the railway sector.
African Development Bank (AfDB) announced the commitment of US$402 million for various infrastructure developments in Zambia, Malawi and Mozambique during the launch held at Chipata’s Cross Roads Lodge.
AfDB Malawi Resident Representative Andrew Mwaba said the Nacala Corridor Phase four is part of the multinational project for which the bank and other development partners are supporting in Malawi, Mozambique and Zambia which includes improvement of port facilities at the port of Nacala, improving selected sections of road infrastructure and improving the flow of traffic at border-crossings.
The overriding development objective of the project is to enhance corridor efficiency for improvement of traffic along the famous Nacala Corridor.
Mr Mwaba said the project will include rehabilitation of the roads in Malawi along the Nacala Corridor and the establishment of the two one-stop-border-posts between Malawi and Mozambique and between Malawi and Zambia.
The total commitment by the bank towards the construction of the two border posts amounts  to US$ 72 million.
He explained that the Nacala Development Corridor project would in addition fulfil and support bilateral and individual national development strategies within the framework of the Programme for Infrastructure development in Africa (PIDA) which was being championed by the African Union (AU) while the African Development Bank is the task manger.
The specific focus for the PIDA programme in the transport sector was aimed  among others, to improve connectivity across the continent of Africa and to establish a one seamless African market by the year 2040.
Mr Mwaba said the project was also within the bank’s medium and long term strategy which is to support member states to improve infrastructure to unlock private sector potential and to ensure sustainable and inclusive growth through championing of gender equality, community participation, protecting livelihoods and natural resources as well as, promoting resilience to climate change.
Once the Nacala Development Corridor is improved,  it is expected to complement the traditional sea-port routes of Durban in South Africa, Beira in Mozambique, and Dar-es-Salaam in Tanzania and will contribute not only to the socio-economic integration of the region, but most importantly,  would contribute to improved trade competitiveness of the two countries and the SADC region in general.
Further, Mr Mwaba explained that  improved infrastructure and transport along the corridor  is expected to open up opportunities for the private sector to locate industries along the corridor which would in turn, improve the living standards of the people along the corridor in the two countries .
He said the bank was pleased to support the financing of the one-stop-border post between Malawi and Zambia which would achieve economic benefits is in the long term in the form of cross –border-time-savings.
Mr Mwaba stated that the bank has not been alone in supporting the financing of the Nacala Corridor which includes other development partners such as  the European Union, the European Investment Bank, Japanese International Cooperation Agency(JICA) and the Korean Exim bank.
He commended the government of Zambia and Malawi for their determination to improve trade facilitation and transport along the Nacala Corridor.
Transport, Works, Supply and Communication Minister Yamfwa Mukanga said,  the opening up of the Nacala Corridor route was an important alternative for the inland importers and exporters within the region and beyond.
The minister said its development would be critical in enhancing the competitiveness of trade and the economies due to the uniqueness of being landlocked.
He explained that the opening up of the corridor will provide both Zambia and Malawi with the shortest route to the Indian Ocean.
“The importance of this project cannot be overemphasised as the Nacala Corridor is one of the important trade corridors in Southern Africa,” he said.
Mr Mukanga said Zambia along with Zimbabwe,  also successfully developed and implemented a One -Stop-Border- post at Chirundu border in December 2009  and  this was a fully functioning facility on African continent.
The lessons and experiences learnt from Chirundu would go a long way in ensuring the successful establishment and operation of the Mwami-Mchinji One Stop Border Post.
The benefits to be derived from implementing a one- stop-border post were immense and include expedient movement of goods and persons, reduced delays, congestions and subsequent lowered cost of cross border trade.
He said the timely implementation of the project was critical for both Zambia and Malawi to realise tangible benefits.
Mr Mukanga said Governments of Zambia and Malawi have developed appropriate frameworks to trigger the  release of finances and to set up a  monitoring and evaluation mechanism during construction.
He said Government has prioritised infrastructure development and the construction of the one stop border post to be a shining example.
The economic performance of landlocked developing countries reflects the direct and indirect impact of geographical situations on key-economic variables.
Malawian Industry and Trade Minister Joseph Mwanamvekha commended AfDB for facilitating organisation of the memorable event in the history of the two countries.
He reiterating Malawi Government’s commitment in undertaking trade facilitation reforms aimed at improving the overall doing business environment in the country and across the borders.
He said his ministry was entrusted with the coordination of all trade facilitation initiatives in the country adding that,  trade facilitation by simple definition was to harmonise, standardise, and modernisation of international trade procedures with a view to reducing the
transaction costs and time in local and international trade.
He said the One- stop- border post was necessary in trade facilitation reform programme being implemented by the Malawi Government with neighbouring countries such as Zambia, which was aimed at reducing the number of disruptions and processes associated with cross border transactions and to ease trade and movement of people.
Mr Mwanamvekha said at regional and multilateral fronts, the one stop border post was also one important component of facilitating trade under the recently concluded World Trade Organisation (WTO) Agreement on Trade Facilitation.
At national level, the one stop border post is enshrined in the Malawi Growth and Development Strategy II (MGDS) that identifies “reducing lead times on exports by improving the efficiency of customs procedures” as one of the key strategies to achieve export led growth in the country.
The improving of the efficiency of trade procedures will enhance the competitiveness of the country’s exports in regional and international markets.
“If properly implemented, these are  the main vehicles by which harmonisation, simplification and standardisation of rules and documentation can be achieved. Malawi and Zambia are members of SADC which has embraced the regional trade facilitation integration agenda,” Mr Mwanamvekha said.
It is becoming obvious that successful integration into the world economy is increasingly depending on the realisation of a series of complex, behind-border measures that fall under the heading of trade facilitation.
Broadly defined, these measures include anything from institutional, regulatory reform,  to customs and port efficiency and are inherently far more intricate and costly to implement.
Mr Mwanamvekha said the effective trade facilitation systems were one of the important panaceas of improving a country’s competitiveness which need to be given serious consideration.
In order to improve international ranking, Malawi has embarked on a number of trade facilitation reforms including OSBP and National Single Window (NSW) to rationalise multiple process in import and export procedures and ease the bureaucratic burden placed on businesses.
Despite these efforts though, there still remain many barriers to trade which our firms face.
It is clear that we must do better when it comes to facilitating trade and helping our firms compete internationally.
Being key trade facilitation institutions, all of us here have a role towards mitigating the challenges.
The Malawian Minister said according to the 2015 World Bank Report, Malawi was ranked 162 out of 187 countries in terms of ease of doing business.
He said that Public-Private Partnership (PPP) was one of the areas of trade facilitation which must in view of modern technological advances,  take  place in the trading regime.
He urged all economic operators dealing in trade facilitation matters such as ports, freight forwarders, roads authorities, logistics, trade policy, border administration, transport infrastructure and customs administration to continue collaborating and supporting each other.
Zambia’s Road Development Agency (RDA) acting chief executive officer Kanyuka
Mumba said the ongoing rehabilitation of the Great East Road from Luangwa Bridge to Mwami border in Eastern Province was cardinal for the promotion of the regional integration.
Mr Mumba said the RDA was currently carrying  out  a huge mandate on its shoulders to care for Zambia’s road network which covers 67,000 kilometres stating that,  40,000 kilometres was the core Road Network which is being done by  the agency.
He explained that the Nacala Corridor project is thus one of the critical arteries that the government of Zambia has given priority for development as it leads to the all important port of Nacala in Mozambique.
Mr Mumba said the rehabilitation of the important road link would no doubt but facilitate the implementation of  the phase four project of the Nacala Development Corridor, a project which involves the construction of a one-stop –border post at Mwami .
“Once completed, the one stop border post will enhance trade and reduce border transit time thereby reducing trade costs and actualising the much needed regional trade and integration,” he stated.
Malawian Road Development Authority Chief Executive Officer Trevor Hiwa said some road networks have been financed for construction by various corporating partners such as the AfDB.
It should be emphasised that Zambia being central to most of the regional corridors has identified strategic transport corridors requiring development in order to promote trade and other economic activities at regional level.