As a native of Katima Mulilo in the Zambezi region and a logistician, I’ve always been curious about why an envisaged logistics hub at Katima has yet not seen the light of day.
The region is a key border axis for the SADC region. Its development is vital for enhancing regional and infrastructure integration, trade, and transport logistics efficiencies.
By expanding and improving Katima as a distribution centre, it can support regional, continental and global value supply chains and help foster intra-African trade, especially under the Africa Free Trade Agreement.
It is therefore imperative to explore the potential benefits (competitive strength) of a logistics hub.
Although many plans, policies and regulations are in place, implementation is taking longer than expected.
It is important that those in responsible positions take action before opportunities are lost.
The region is strategically located and will contribute towards Namibia’s vision of becoming the preferred logistics hub for the SADC region.
The expansion of the Walvis Bay port is envisaged to generate increased cargo volumes for Zambia, Zimbabwe, Botswana, the Democratic Republic of Congo (DRC), Malawi and Angola.
To absorb increased cargo volumes via the Katima and Ngoma border posts in the Zambezi region, Katima’s border post infrastructure needs to be upgraded.
Furthermore, a logistics hub at Katima would be part of the Trans-Caprivi Corridor, which connects Walvis Bay to copper-rich Zambia and the DRC.
Namibia can showcase the success stories of existing users and operators of these corridors to attract more investors and customers – by highlighting its strategic location, existing and planned infrastructure, its favourable policies and regulations, and its competitive advantages over other logistics hubs in the region.
This is how Namibia can turn its vision into reality.
BENEFITS AND CHALLENGES
Access to a strategic location is a major benefit as the region is at the crossroads of four countries: Namibia, Zambia, Botswana and Zimbabwe.
It would also be connected to Walvis Bay via the Trans-Caprivi Corridor, which offers a shorter and cheaper route to the Atlantic Ocean than traditional routes via South Africa or Tanzania.
It would enable investors to access and serve a large and diverse market of more than 300 million consumers in the SADC region, as well as other global markets (WBCG report, 2020/21).
Moreover, Katima Mulilo would benefit from existing and planned infrastructure projects that aim to improve transport and logistics capacity and efficiency in the region.
These include the railway line from Grootfontein to Katima, which is expected to be completed by 2025; the Katima airport, which is planned to be upgraded to handle larger aircraft and more passengers; Zambezi River port facilities, which could be used for water transport; and the one-stop border post (OSBP) at Katima, which would streamline and simplify cross-border formalities and reduce delays and costs.
A logistics hub would benefit from favourable policies and regulations adopted by Namibia and its neighbours to promote regional integration and cooperation.
These include harmonising customs procedures, tariffs, standards, safety measures, transit fees, etc, among SADC countries; implementing the African Continental Free Trade Area (AfCFTA), which aims to create a single market for goods and services in Africa; and providing incentives and support from the government and other stakeholders to attract and retain investors in the logistics hub.
It would also create opportunities for investors to provide value-added services to customers and partners.
These include cold storage, warehousing, transhipment, quality control, and market information.
Such services would enhance the competitiveness and profitability of the logistics hub and its users.
The challenge lies in getting to grips with infrastructure projects that are under development or need upgrading.
WAY FORWARD
Namibia should seek partnerships and funding from regional and international
organisations, such as SADC, the AfDB, the World Bank, etc, to finance these projects.
Namibia can work with its neighbours to streamline and simplify customs procedures and safety measures to facilitate trade and reduce delays and costs. Namibia can also leverage its membership in regional economic communities, such as SADC, the Common Market for Eastern and Southern Africa (Comesa), among others, to promote regional integration and cooperation.
The region requires incentives and support from the government and other stakeholders to attract and retain investors.
It is imperative for our government to take responsibility and invest in infrastructure developments in the Zambezi region that would enhance the well-being of the country and the local population.
- Mufaya Bruce Liswani has a Master’s Degree in logistics and supply chain management, a Bachelor’s in business administration (Honours), and a Bachelor’s in transportation engineering
