Zambian Government, through transport infrastructure development, is improving trade facilitation
Updated: Feb 14, 2019
The Zambian Secretary General, Hon Davies Mwila says that according to the 2019 African Economic Outlook by the African Development Bank, “roads, ports, railways, pipelines, and telecommunications have always been important for African integration."
With the signing of a far-reaching agreement between China and the African Union Commission within the framework of the African Union’s Agenda 2063 which will link all African capitals by road, rail, and air transport the socio-economic transformation of the continent over the next 50 years will seek to accelerate the implementation of past and existing continental initiatives for growth and sustainable development.
"the quality and quantity of hard infrastructure are key determinants of trade costs"
"By reducing trade costs, new roads, railways, and ports are intended to improve connections across cities, accelerate urbanization, and encourage regional integration. A virtuous cycle leads from investments in hard infrastructure to increased trade that in turn makes further investments profitable. By contrast, poorly functioning logistics markets leads to a vicious circle of low trade volume and high trade costs. The quality and quantity of hard infrastructure are key determinants of trade costs. The Zambian Government through transport infrastructure development is improving trade facilitation as well as maximizing on the above-mentioned virtuous cycle benefits while also; simultaneously eliminating the vicious circle impediments of low trade volume and high trade costs.”
Under President Edgar Lungu, the Zambian Government is rehabilitating the Chinsali to Nakonde Border Road in order to facilitate increased trade domestically and with the East African corridor, through the provision of faster and safer movement of goods and people along this important trading route. More specifically, the Zambian Government, through the Road Development Agency (RDA), has signed two contracts for the rehabilitation of the Great North Road from Chinsali to Nakonde in Muchinga Province, which has been divided into two projects.
The first project of 103km from Chinsali to Isoka has been awarded to China State Construction Engineering Limited, while the second project with of 107km from Isoka to Nakonde has been awarded to China Railway Seventh Group Co. Zambia Limited.
Project 2 will also include the urban section of the road to the border with Tanzania. The projects are being financed by the African Development Bank (AfDB) which is contributing $193m, Africa Growing Together Fund at $50m and $12m from the Government of the Republic of Zambia. The complete rehabilitation of the Chinsali to Nakonde Road is expected to take 3.5 years through the RDA.
Another major road construction and rehabilitation project is the Ndola to Lusaka Dual Carriageway, which upon completion, shall boost inclusive economic development as a result of enhanced domestic trade through more efficient flow of goods on this strategic domestic and regional trade route.
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