Mufaya Bruce Liswani
As a native of Katima Mulilo in the Zambezi region and a logistician, I have always been curious about why Katima has not established a logistics hub since independence.
Katima Mulilo is a key border and logistics hub 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 foster intra-African trade, especially under the Africa Free Trade Agreement. It is therefore imperative to examine and explore potential benefits [competitive strength] and some challenges of a logistics hub in Katima Mulilo that is still under development.
Although there are many plans, policies and regulations in place, the implementation of a logistics hub in Zambezi is taking longer than expected. It is important that those in responsible positions take action before opportunities are lost.
The expanded Port of Walvis Bay is envisaged to generate increased cargo volumes for the hinterlands of Zambia, Zimbabwe, Botswana, the DRC, Malawi and Angola.
Therefore, to absorb the increased throughput of cargo volumes via Katima Mulilo and Ngoma border posts in the Zambezi region, there is a need to give a facelift to the border infrastructure at Katima Mulilo border post. Furthermore, a logistics hub in Katima Mulilo would be part of the Trans-Caprivi Corridor, which connects Walvis Bay to the copper-rich regions of Zambia and the DRC. Namibia can showcase the success stories and testimonials of the existing users and operators of these corridors to attract more investors and customers, by highlighting its strategic location, its 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
Access to a strategic location is a major benefit as the region is situated at the crossroads of four countries: Namibia, Zambia, Botswana and Zimbabwe. A logistics hub in Katima Mulilo would enable investors to access and serve a large and diverse market of over 300 million consumers in the SADC region, as well as other global markets.
Moreover, the utilization of existing and planned infrastructure, Katima Mulilo would benefit from the existing and planned infrastructure projects that aim to improve the transport and logistics capacity and efficiency in the region. These include the railway line from Grootfontein to Katima Mulilo, which is expected to be completed by 2025; the Katima Mulilo airport, which is planned to be upgraded to handle larger aircraft and more passengers; the Zambezi River port facilities, which could be used for water transport; and the one-stop border post at Katima Mulilo, which would streamline and simplify cross-border formalities and reduce delays and costs.
A logistics hub in Katima Mulilo would benefit from the favourable policies and regulations that Namibia and its neighbours have adopted to promote regional integration and cooperation. These include the harmonisation of customs procedures, tariffs, standards, safety measures, transit fees, etc. among the SADC countries; the implementation of the African Continental Free Trade Area which aims to create a single market for goods and services in Africa; and the provision of incentives and support from the government and other stakeholders to attract and retain investors in the logistics hub.
A logistics hub in Katima Mulilo would create opportunities for investors to provide value-added services to their customers and partners. These include cold storage, warehousing, transhipment, quality control, market information.
Challenges
A logistics hub in the region offers many benefits, but it can be hindered with existing challenges that needs to be considered. A logistics hub would require adequate road, rail, air and water infrastructure to connect Katima Mulilo to other markets and ports. Currently, some of these infrastructure projects are still under development or need upgrading. For example, the Trans-Caprivi Corridor, which links Katima Mulilo to Walvis Bay, needs to be expanded and maintained to accommodate increased traffic and cargo volumes. The Katima Mulilo airport also needs to be upgraded to handle larger aircraft and more passengers. The Zambezi River, which borders Katima Mulilo, could be used for water transport, but it would require dredging, navigation aids and port facilities.
A logistics hub would require harmonised policies and regulations among the countries involved in the cross-border trade and transport. This would include customs procedures, tariffs, standards, safety measures, transit fees, etc. Currently, there are some differences and challenges in these areas that could hamper the efficiency and competitiveness of the logistics hub. For example, there are delays and costs associated with border crossings, inspections, documentation, etc. There are also issues of security, corruption, smuggling, etc. that could affect the integrity and reliability of the logistics hub.
Way forward
Namibia should seek partnerships and funding from regional and international organizations, such as SADC, the African Development Bank (AfDB), the World Bank, etc. to finance these projects to develop and upgrade its infrastructure in the region.
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 to promote regional integration and cooperation.
Namibia can offer tax breaks, subsidies, grants, loans, guarantees, etc. to investors who are willing to invest in the logistics hub. Namibia can also provide technical assistance, training, market information, quality control, etc. to investors who are interested in doing business in the region.
It is imperative for the Namibian 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 holds a masters degree in logistics and supply chain management. He writes in his private capacity.