Nam logistics sector hamstrung by border hours
by
Sam Shivute
OPPORTUNITIES are increasing for Namibia to position itself as an alternative logistics gateway for Southern African Development Community countries, but the lack of government officials and short operating hours (12 hours a day) have led to congestion at the borders.
There is, therefore, a need to enable 24/7 operations and streamlining activities at the borders to reduce congestion and health risks, the World Bank and the International Finance Corporation have said.
The two global lenders, in their recently released country diagnostic report, said if more time for work is allowed, border-crossing efficiency would improve, and also along the trade corridors.
In addition to time, the report also stressed that there is a need to enhance staff capacity at the borders and upgrading border infrastructure to reduce border bottlenecks.
Earlier this month, Namibia Revenue Agency (Namra) commissioner Sam Shivute paid a courtesy call on trade minister Lucia Iipumbu where they considered enhancing synergies in areas of cooperation on trade facilitation, one-stop border posts and integrated online services that relate to the import and export of goods.
Namibia has been mulling over a one-stop border post concept for some time, with Shivute and the minister of international relations Netumbo Nandi-Ndaitwah stressing its importance, especially in Zambezi region where trade flow into the rest of Africa is not efficient.
If improved, Namibia could attract more traffic.
“Walvis Bay is leveraging its four main trade corridors to attract traffic from Botswana and new attention from South Africa's Northern Cape agriculture hub. The logistics master plan proposes a logistics hub centre at Walvis Bay. This could become a transit/transshipment cargo hub with sufficient traffic to improve connectivity to global markets and reduce logistics costs, in line with Namibia's vision to become a 'logistics nation' by 2025,” reads the financiers report.
Namibia lags behind South Africa and is roughly on par with Mozambique and Tanzania, when ranked in the World Bank Logistics Performance Index, and to enhance its competitive edge, “Namibia needs to improve its performance in timeliness, tracking and tracing, logistics competence, international shipments, infrastructure, and trade facilitation,” reads the report.
The transport and storage sector is expected to reach over N$5,4 billion in value this year, as per the Bank of Namibia economic outlook, recovering from the strain of Covid-19.
This recovery could be better, if the development of logistics facilities is fast-tracked.
The global financiers said there has been a development delay because of hesitancy by logistics investors, a lack of skilled logistics professionals, limited availability of data to monitor the performance of the Walvis Bay corridors, and a lack of good-quality third-party storage facilities.
Sea connectivity infrequency or unavailability because of competing ports was identified.
“Air connectivity depends on passenger traffic rather than cargo needs; rail transportation is unreliable because of outdated railway equipment; and road transportation entails high costs because of empty back-hauls and a restricted trucking market,” reads the report.
A mapping of trade patterns and flows to identify priority areas for strengthening transport and logistics infrastructure could be a good basis to identify private investment opportunities, said the global lenders.
Addressing the challenges will require accelerating implementation and scaling of digital systems along the trade corridors, which includes investing in digital infrastructure and adopting digital processes to enable real-time cargo monitoring, implementing the single window system, establishing a trade portal and adopting a virtual queue management system at land border posts.
Other recommendations include improving the regulatory framework for domestic and international logistics services, and improving border crossing efficiency along the trade corridors.
Attempts to reach the trade ministry, as well as the Walvis Bay Corridor Group proved futile at the time of going to print.
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