Zambia Government and partners break ground on the $10.5 million Nakonde border upgrade
Nakonde, Zambia, 21 October 2024 – Trade Catalyst Africa (TCA) has hailed the start of the improvement of infrastructure works at the Nakonde One Stop Border Post (OSBP), an important step that will improve customs efficiency and significantly cut down cargo clearance times for traders along the Dar es Salaam Corridor. The upgraded facilities will play a vital role in the transportation of essential goods, such as food, fuel and fertiliser. The groundbreaking ceremony was led by the Government of Zambia in partnership with TradeMark Africa (TMA), the British High Commission in Zambia, and other partners. The $10.5 million project is being funded through TMA by the UK Government.
“The investment that Trade Catalyst Africa made for pre-feasibility studies provided the right justification for the project’s viability, reduced the likelihood for investment risk and enhanced confidence amongst potential backers owing to the project’s potential for success. This consequently unlocked the funding required for the construction of the OSBP,” remarked Duncan Onyango, CEO of Trade Catalyst Africa, an investment vehicle for implementing innovative financing structures for the development of trade infrastructure and enhancing access to trade finance for small and medium-sized enterprises (SMEs).
Mr. Onyango further noted that TCA’s investment in the Nakonde OSBP pre-project work was strategic as borders across Africa have historically been major bottlenecks for trade or have remained costly to develop and maintain. “Lengthy delays at these borders due to infrastructure deficits and inefficient clearance processes significantly increase the time and cost of trade. The modern border facility will be a major enabler for international trade on this busy transit corridor,” he said.
Zambia’s Minister of Infrastructure, Housing and Urban Development, Charles Milupi, underscored the critical role the modern OSBP will play in streamlining operations, reducing congestion and improving regional trade. The project entails upgrade of roads within the border post and the truck parking yard, construction of additional office buildings and warehouses, digitising clearance procedures, installing a modern X-ray cargo scanner. They also include digitising clearance processes and installing smart gates to reduce truck dwell times by 84% to less than 10 hours from 64 hours currently.
“This project is timely as it will resolve the challenges experienced at this critical border and allow it to operate efficiently as a one-stop-border post. Our infrastructure agenda is anchored on harnessing our land-linked status as a country, through the development of critical trade corridors to ensure that they are serviced by high quality and reliable road, rail and border infrastructure. Our country is at the heart of the Southern and Eastern African region, with a combined population of 633 million people, which is a big market for Zambian products and services,” Minister Milupi, said.
The Nakonde border infrastructure upgrades follow the UK-funded upgrade of the Tunduma OSBP in Tanzania, which encompassed the installation of cargo x-ray scanners, leading to a 40% reduction in cargo processing time between Tanzania and Zambia. With over 15 OSBPs that TradeMark Africa established in East Africa, resulting in an average 70% reduction in border crossing times, the Nakonde project will deepen trade ties between Zambia and its neighbours, leveraging Zambia’s strategic standing as a land-linked country reliant on regional ports and corridors for its international trade.
“This is yet another important milestone in the partnership between the UK and Zambia. The UK is committed to economic growth and this One Stop Border Post will reduce the time and costs of trade. By implementing these hard and soft infrastructure projects, we are laying a strong foundation for increasing trade and prosperity in a more interconnected Africa,” the acting Development Director at British High Commission in Lusaka, Berni Smith, said.
Other officials in government and development circles attended the ceremony. They included Zambia Minister of Commerce, Trade and Industry, Chipoka Mulenga; Muchinga Provincial Minister, Henry Sikazwe; Antoinette Tesha, Investments Director at Trade Catalyst Africa, Permanent Secretaries as well as representatives from the World Bank, Tony Blair Institute and regional leaders in Zambia. Trade Catalyst Africa, a commercial subsidiary of TMA, and the Tony Blair Institute both provided technical support during the design phase.
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