Zambia's Gateway to Global Trade

  

Bigger international vessels are now able to dock at one of the upgraded berths  

By Derrick Silimina

A quiet battle for the shipping business is under way in East Africa, with Tanzania, Kenya, Djibouti and Somalia taking the lead in upgrading their maritime infrastructure in the region. 

As the African continent glides on the waves of globalization, the modernization of its seaports is key to the development of maritime infrastructure and its connectivity with inland transport systems.

Undoubtedly, seaports play a vital role in any economy that is reliant on imports and exports, especially in developing countries where maritime transport is the primary form of access to the international market and a key contributor to local job creation.

According to a recent World Bank report, inefficiencies at the main port of entry cost Tanzania and neighboring countries up to $2.8 billion in lost revenues annually, and as a result, this had a negative impact on regional trade, especially among land-locked countries such as Zambia that look up to one of Africa's reliable seaports – the Port of Dar es Salaam - as a gateway for international trade.

 

One of the re-built facilities at the port is already commissioned

A shipping hub 

Currently, it is estimated that over 70 percent of imported goods for land-locked nations in the sub-region transit through the Port of Dar es Salaam via Tunduma-Nakonde Border Post, which is Tanzania's busiest crossing point, the gateway into Zambia, the Democratic Republic of the Congo (DRC) and, to some extent, Zimbabwe. On average, the value of cargo passing through the border to Zambia, the DRC and Zimbabwe is estimated to be to the tune of $1.5 billion annually, according to trade experts.

With its strategic location as a freight link not only to east and central African countries but also to the Middle and Far East, Europe, Australia and Americas, the Port of Dar es Salaam has a total quay length of about 2,600 meters with 11 deep-water berths, handles about 95 percent of the country's international trade and serves neighboring land-locked countries like Malawi, Burundi, Rwanda and Uganda, among others, according to the Tanzania Ports Authority (TPA).

For this reason, the Dar es Salaam Maritime Gateway Project, worth $421 million, was established in a bid to overhaul the Port of Dar es Salaam's infrastructure by 2023.

In the 1970s, China was already involved in the construction of the Tanzania-Zambia Railway linking Tanzania and Zambia and, in this context, the ongoing upgrade of the Port of Dar es Salaam is another game changer in the intercontinental connectivity initiative, as China's past approach to partnership on infrastructure development in Africa has continued to shape the continent's socio-economic trajectory.

With Zambia's import-driven economy set to benefit a lot from the upgrade of the Port of Dar es Salaam, the move has excited local entrepreneurs as the facility contributes greatly to the southern African country's treasury in terms of taxes and customs duty.

"The port's close proximity to the Nakonde border is key to the survival of our automobile business. The ongoing facelift will definitely speed up customs clearance and in turn lower the cost of doing business for us," Car Dealers Association of Zambia Chairperson Webster Mulambia told ChinAfrica.

Mulambia regrets that a long queue of offloading ships is painful for most importers and exporters of cargo who seek to have it delivered to their respective destinations on time.

Just like car dealers, many Zambian shop owners who sell daily goods such as diapers, powdered milk, clothes, sanitary products, as well as medicines and medical supplies share the lament that delays extend for several weeks or months due to container vessels transporting imported cargo from across the world were on average queuing for 10 days to be able to berth at the port. It further takes another 10 days to offload the merchandise, clear it and transport it.

"My merchandise takes two months to be delivered and this affects my cash flow due to the usual delays at the port, and you know in business, time is money," Reagan Nkamba, 45, a trader of Chinese smartphones, stated.

 

The Port of Dar es Salaam upgrade is in final stages of completion 

China's role 

Thanks to China Harbour Engineering Co. (CHEC) whose global engineering strength is equipping the Port of Dar es Salaam with modern apparatus, the maritime facility will have the capacity to accommodate large vessels from across the world and be able to anchor at Tanzania's largest seaport.

As CHEC is taking on the first World Bank project in a decade, engineers say it is a momentous step forward for the Chinese engineering firm, and that the project will enhance the company's level of operations and expertise in East Africa.

"This project mainly involves the upgrade of seven existing berths and the building of a new berth that will enable large vessels with a load carrying capacity of up to 70,000 tons to dock at the port, which previously had a capacity for under 30,000 tons," TPA Director General Eric Hamissi recently said.

The port authority further affirmed that with a length of 300 meters and 13.5-meter depth, the new berth will be equipped with state-of-the-art cargo handling equipment.

Ruth Chinyimba, 40, a spare parts dealer based at Lusaka's bustling town center market, said, "The ongoing upgrade of the port will definitely help grow my client base as my customs clearance will be done with ease."

Chinyimba, who owns Ruth-Auto shop, added that due to high demand for spare parts in the local market, her business will see growth with a more efficient maritime facility in the region.

Tanzania's Prime Minister Kassim Majaliwa recently noted that the Port of Dar es Salaam upgrade is in final stages of completion as the East African country is focused on making optimal use of its strategic geographical location to enhance regional trade, stimulate economic growth and ease transportation costs.

"These projects will enable the nation to make the most of the geographical opportunities we have as well as stimulate economic growth and facilitate transportation," said the prime minister while tabling in parliament his office's budget proposals for the 2021/22 financial year.

In line with China's Belt and Road Initiative, a multifaceted and connectivity-oriented grand strategy, the port upgrade will certainly serve Africa's current regional infrastructure challenges which are primarily inward-looking as they seek to deepen the continent's regional integration.

The project is supported by the Tanzanian Government and a coalition of development partners which includes the TradeMark East Africa, the United Kingdom Department for International Development, and the World Bank.

On March 1, Tanzania's Works and Transport Minister Leonard Chamuriho officiated the handover ceremony of Berth No. 5 held for the No. 1-7 Berth Project at the Port of Dar es Salaam.

Chamuriho said the completion of berth No. 5 marked the official entry of the project into the final sprint stage, adding that the smooth completion of the berth laid a solid foundation for its full completion and the smooth development of subsequent projects.

"We recognize the achievements of the project in terms of safety, quality and management and the company's outstanding performance capabilities," Chamuriho said, expressing gratitude to the Chinese engineering firm for its efforts in the construction of Tanzania's mega port.

Reporting from Zambia

China Enhance Technology Transfer

 

Workers at a face mask firm in Lusaka, Zambia (XINHUA)

By Derrick Silimina

As part of the realization that it is a "knowledge and technology transfer" approach that helped China become one of the major global economies, the Asian giant is employing training as one of the vital ways of skill and technology transfer to Africans.

In Zambia, some Chinese companies are providing training to its local employees mostly through formal programs such as mentoring and on-the-job training. For these reasons, Chinese investments in Zambia's key economic sectors have continued to change people's lives, especially the youth, with many direct and indirect jobs created.

Recently, government reiterated its call to Chinese Ambassador to Zambia Li Jie to encourage Chinese companies operating in the country to transfer skills to locals.

Nestled at the edge of Chongwe District 50 km east of Lusaka City is Zhongyang Eco-Agriculture Industry Park, a Chinese-owned agriculture and construction company. Apparently, Chongwe is home to some other Chinese businesses that contribute immensely to Zambia's agriculture and construction industries, key economic sectors which have since benefited many people in terms of employment creation in the area.

Zhongyang Eco-Agriculture Industry Park Administrative Manager Fredrick Sashi is one among many local workers who appreciates the value of skills and technology transfer by foreign entities to its employees.

Interestingly, the Chinese company was recently left in Sashi's hands when its directors returned to China during the Chinese New Year celebrations early this year. Their prolonged stay in China following the outbreak of COVID-19 in that country did not disrupt operations in Zambia because Sashi had acquired the appropriate management skills.

Sashi told ChinAfrica that it was an amazing achievement and a boost to his career prospects being delegated to manage the company's finances and operations.

"For me, the responsibility was timely because I had already been groomed to do the job by my Chinese managers. Apart from that, it's an excellent experience when you get entrusted by foreign investors to manage the company's operations on their behalf," he said.

Sashi, who is an accountant by profession, stated that having been at the helm of the company and coordinated its financial transactions for about 20 months was enlightening as he had gained valuable skills in using Chinese apps to communicate and carry out monetary transactions more efficiently.

Mutual benefits

But it is not knowledge transfer alone that is mutually benefitting Zambia and China. Recently, there has been more technology transfer of vital knowledge diffusion from Chinese companies to local members of staff. This has been in the form of machinery and production processes and models among others.

For instance, Hongsen Investment is another Chinese company involved in recycling plastic waste materials into finished household products such as dishes, cups, brooms and hangers.

Hongsen Company Administration Officer Thandiwe Chaaba said they are creating value out of plastic waste material by contributing to job creation and environmental sustainability.

"This plant here uses unique technology because it was one of the first to be established in the country and I believe its operators, who are mostly locals, have learnt the value of such equipment not only to help sustain the environment, but also to create jobs in the community," said Chaaba, who is also a Mandarin/English translator at the company.

Francis Kabaso, 42, works at Chinese company CAMCO Equipment (Zambia) Ltd., known for its supply of durable and affordable agricultural equipment in the country.

As CAMCO's Operations Manager, Kabaso coordinates the company's outlets countrywide through the supply of state-of-the-art agricultural equipment in line with the goal to scale up agriculture productivity in the country.

Kabaso said that during the course of his duties, he has learnt how technology transfer is key to national industrialization. If it is well harnessed, local workers who have been taught how to operate certain equipment can easily pass on the technical skills to future generations, a catalyst to national emancipation, he said.

Meanwhile, China-Africa Cotton (CAC) is one of the first Chinese cotton companies to enter the African market. CAC is a wholly-owned subsidiary of China-Africa Cotton Developed Ltd., and has become an integrated enterprise including cotton seed planting, cotton ginning, sales and cooking oil production, based on excellent cotton growing conditions in Africa.

CAC has contributed greatly to technology upgrades in Zambia's textile industry through the introduction of improved seed varieties and cost-efficient chemical products. This has meant an increase in productivity in cotton production. CAC's goal is to form a complete industry chain, including cotton planting, ginning and spinning as well as oil production.

"We will take advantage of our cutting-edge technology and efficient management skills to provide good products and service to all our clients," CAC Chairman Wang Chuanguan said recently.

While it may be too early to measure the significant role technology and knowledge transfer from China to Zambia is playing in shaping its development agenda, experiences in Zambia and other growing economies on the continent point to a mutually beneficial outlook.

Derrick Silimina is an award-winning multimedia journalist based in Lusaka, Zambia. His work has appeared on many media outlets in Zambia and abroad.

BARLOWORLD EULOGISES KK’S ECONOMIC LEGACY

 

Advertorial

By: Mbuyoti Silimina

The story of Barloworld Equipment Zambia Limited is one of success, longevity and high-performing products.

Ms. Mfikeyi Makayi
Barloworld Zambia Country Manager

With over 100 years of operations in Africa, the firm is backed by Johannesburg Stock Exchange-listed Barloworld Limited, a R62 billion company with secondary listings on the London and Namibian Stock exchanges.

Having entered the Zambian market in 1994 taking over the Caterpillar dealership from Mazembe Tractor Company, Barloworld’s past 26 years as an operator investor has seen the business expand its presence in the primary sectors of mining and construction.

“Our fixed presence in Lusaka, Kitwe, Solwezi, Lumwana and Kalumbila has consolidated our support to these industries as well as the Zambian people over the last two decades,” Barloworld Zambia Country Manager Mfikeyi Makayi told Nkwazi.Barloworld Zambia is cognizant of the socio-economic reforms put in place by Zambia’s first president Dr. Kenneth Kaunda. Reforms which laid the foundation for the future success of Barloworld Zambia today.

But over and beyond political freedom, Dr. Kaunda wanted to achieve economic emancipation and improve the welfare of ordinary citizens through an enormous drive to accelerate investment especially, in the fields of mining and construction.

Dr. Kaunda’s investments in Zambians laid the foundation on which Zambians across the country can build on today. “KK’s mining policies were multi-faceted, in retrospect with good intention during difficult times. Firstly, of key note and success to this day was KK was very deliberate about education policies for Zambians. He ensured a deliberate policy that the Zambian people attained the best international education & exposure in running the mining sector through scholarships without discrimination or prejudice, Zambians were sponsored to universities globally by ZCCM with the view that they returned to work in the mining industry. Many Zambians today are known globally for their expertise in the fields of copper mining, engineering, geology and metallurgy.

Secondly, the 1969 Mulungushi and Matero Reforms significantly shaped the future of Zambia’s mining policy with the formation of ZIMCO and MINDECO. The intention was to maximize the sector’s economic potential & drive development,” Makayi noted, “it coincided with tumultuous times in independence struggles in southern Africa, with Zambia as a key frontline state.

As a result, Zambia became and remains one of the world’s largest copper producers and the second largest producer on the African continent (behind the Democratic Republic of Congo). Copper is the mainstay of the country’s economy and has been for almost a century.

The Barloworld country manager highlighted that KK’s One Zambia, One Nation motto which is embedded inevery Zambian’s mind has kept Zambia a peaceful and inclusive nation that has never experienced war. “This element of his leadership has shaped how we lead our business in Barloworld by reinforcing inclusion, having dialogue and appreciating differences.”

In this context, Barloworld’s consistency in delivering quality construction and mining equipment to the earthmoving industry has contributed to the growth of the country’s mining industry

In 2014, Barloworld solidified and affirmed its investment commitments by increasing its footprint North Western and Copperbelt provinces constructing a $14million facility in Kitwe, which comprises of a world class training facility, component rebuild centre and 10,000m2 warehouse to ensure adequate support to the mining operations in the Copperbelt and North Western provinces.

In the construction sector, whether one is in a residential or non-residential building, infrastructure or road construction, Barloworld Equipment’s best machinery and power generation equipment in Southern Africa – including 35 different types of work-tools ensure quality after sale service to all its paraphernalia.

“We seek to support projects that will ensure access to local and international markets with ease as the expansion of our road infrastructure is cardinal to boosting regional trade and with eight neighbours to become a land-linked country,” Makayi stated

Barloworld will always remember Kaunda for creating a solid foundation for the country’s development program which the firm renowned for its Cat earthmoving machines is happy to be associated with.

“Over the last 26 years, favorable mining policies encouraged mine operator’s exploration programmes into the North Western Province as our primary clients invested in new equipment which consequently meant increased opportunities to create employment and growth for Barloworld as well as to support the sector,” Makayi noted.