The coming-in of the Mchinji-Mwami One Stop Boarder Post has excited the leadership of the Common Market for East and Sothern Africa-COMESA which feels the facility is a game changer in enhancing the promotion of trade integration within the block.
Whilst Malawi and Zambia would be direct beneficiaries of the upgraded customs e-management system, other surrounding African states are also expected to register significant gains from utilizing the facility.
Chileshe Kapwepwe, Secretary General for Comesa says apart from speeding-up clearance of goods the one stop boarder post holds the key to creating jobs between Malawi, Zambia and neighboring states, also vital in promoting the Comesa simplified trade regime — STR.
Launched in 2010, the STR aspires to simplify and streamline the documentation and procedures for small cross-border trader consignments by reducing the cost of trading and challenges faced when accessing relevant customs documentation.
“The large and small medium scale traders alike would now be able to efficiently clear merchandise and immensely reduce transition costs thereby able to increase profitability, this will lead to improvement of the livelihood of thousands of people,” Kapwepwe said.
Meanwhile, data from the United Nations Commodity Trade Statistics Database values Malawis exports to Zambia at 26.84 million US Dollars whilst Zambias exports to Malawi were valued at 124.52 million US Dollars for 2020.
Given such statistics, Malawi President, Lazarus Chakwera is hopeful that the Mchinji-Mwami One Stop Boarder Post will assist the nation to boost its export capacity as means for promoting economic growth of the two countries.
“This one stop boarder post is good news for travelers, good news for traders, good news for our economies, good news for regional culture and economic integration, it is good news for neighborly harmony and solidarity.
“It brings us six other practical benefits , convenience for travelers and drivers, streamlined processes by consolidating boarder control functions, professional trust between boarder officers of our two countries, reduced boarder delays , promotes coordination in facilitation of trade , accords dignity to our people,” Chakwera explained.
On the other hand; his counterpart, Hakainde Hichilema, President of Zambia noted the facility was not only a game changer for economies of Zambia and Malawi but also surrounding COMESA and SADC member states.
“The reason these facilities have been put up is to ease the movement of goods not just between our two countries, Malawi and Zambia but the goods coming from the wider areas like Mozambique and I know at some point through some routes Zimbabwe as well, am also aware that on the northern side it is Tanzania, Rwanda, Burundi and beyond.
“But it is important for this facility to move with technology and automation so it upgrades to a non-stop boarder post so we can scan the trucks , the goods and people miles ahead from Mchinji-Mwami” Hichilema said.
Coming a time a recent Comesa report on Covid-19 impacts on trade indicate a 32% decline of imports into Malawi in April 2020 and 25% in Zambia between March and April 2020, ministers responsible for trade for the two countries say the just commissioned boarder post was key to promoting economic recovery.
According to Mark Katsonga Phiri, Malawis minister of trade and industry, the one stop boarder post has great potential to boost economic gains for traders hence the nation was committed to construct more border posts as means for promoting economic integration.
“The Malawi government through my ministry will start three more boarder contractions in the coming year, starting with Songwe in the north in February, Mloza in July, thereafter Chiponde, we are estimating that by 2024 all our boarders will be one stop border posts,” Katsonga-Phiri said.
Besides, Chipoka Mlenga, minister of commerce, trade and industry for Zambia said the facility was indication of the desire to strengthen the trade relationship between Malawi and Zambia.
“We are committed to implement the vision of strengthening our economic ties, we are very committed to making sure that the easy way of doing business between the two countries is indeed implemented,” Mlenga pledged.
On his part, Jacek Jankowski, European Union Ambassador to Zambia and COMESA noted the border post was essential in advancing goals of the African Continental Free Trade Area (AFTCA) to which Malawi and Zambia are signatories which aspires to create the largest free trade area in the world by connecting 1.3 billion people across 55 countries, with a combined gross-domestic product (GDP) valued at 3.4 trillion US dollars.
“This is the actualization of the COMESA regional integration agenda, its also an example of how the block has been honoring its pledge to be the driving force for promoting economic integration in Africa,” Jankowski explained.
For the African Development Bank the facility, according to Raubil Olaniyi Durowoju its country manager in Zambia was essential in ensuring that landlocked countries like Malawi and Zambia participate fully in international trade.
“Trade facilitation programs are crucial for land locked countries if they are to participate meaningfully in international trade, this include customs cooperation among the different customs jurisdictions and long transport corridors.
“In addition to funding the development of physical transport infrastructure it is also important to priorities the mainstreaming of soft infrastructure programs so as to address policy and regulator components of international trade,” Durowoju said.
Also excited with the commissioning of the Mchinji-Mwami One Stop Boarder Post is Steve Yohane, chairperson for the Cross Boarder Traders Association of Malawi according to whom the facility had potential to fast-tracking the process of clearing goods at the border.
“Previously, traders would wait for a long time for their goods to be cleared, now the situation will change, the process will be fast … we are excited because this means we can also leave the boarder quicker to attend to our businesses,” Yohane said.
Equally Major Mkandawire, chairperson for Professional Drivers Union of Malawi said the facility was solution to reducing clearance and security problems faced by cross-border drivers.
“We had a lot of challenges with the parking and security of drivers, we used to park along the road, so this will make our life easier , we know that most drivers coming from Namibia, Zambia , Botswana and Mozambique also use this boarder so its good news for us,” Mkandawire said.
Now at a time, the tourism industry accounts for only 7 % of Malawis total Gross Domestic Product (GDP), players in the sector are optimistic that the one stop boarder post stands to boost revenue of the tourism industry.
According to Justine Dzikambani, chairperson for the Tourism Council of Malawi the facility will go a long way in easing entry of tourist into the country hence maximizing on revenue generation.
“This means that tourist coming to Malawi will be assisted at a one-stop center without going into various places, so its going to be easy for them to come into our country.” Dzikambani said.
He also challenged authorities to ease laws that govern immigration procedures such as removal of visas to open up boarders for international trade.
Also at a time smuggling of goods is said to be costing the Malawi Revenue Authority 1 billion kwacha in potential revenue every year, Dr Betchani Tchereni, an economics scholar with the Malawi University of Business and Applied Sciences is confident that the one stop centers stands to turn around this predicament.
“Issues of smuggling, corruption, under declaring and over-declaring as it were are going to be reduced so its going to be beneficial to suppliers, importers, exporters and transporter,” Tchereni explained.
The Mchinji-Mwami One Stop Boarder Post is part of boarder upgrading projects funded by the European Union at over 5.3 million Euros, with Mwamwi allocated 1.77 million Euros and Mchinji 3.54 million Euros.
The project is aimed at enhancing Malawi and Zambias participation in the COMESA regional integration agenda which among other goals aspires to promote the free movement of goods and services produced within the block and the removal of all tariffs and non-tariff barriers.