GOVT MOVES TO CUT TRADE COSTS, BOOST EXPORTS

Hichikumba says tackling transport, logistics and border barriers is key to turning production ambitions into jobs and investment

By Francis Maingaila ♥️

Lusaka, Zambia24 — 21-10-2026 — Government wants to turn Zambia’s production ambitions into tangible economic benefits by tackling transport, logistics and border-related barriers that make it expensive for businesses to trade.

Speaking at the launch of the Trade Obstacles Alert Mechanism, Ministry of Commerce, Trade and Industry Permanent Secretary for Investment and Industrialisation Crusivia C. Hichikumba said efficient trade systems were essential to helping Zambian products reach local, regional and international markets at competitive costs.

Zambia Chamber of Commerce and Industry (ZACCI) vice-president for services Andrew Sinyangwe said the mechanism would help businesses document trade barriers and provide evidence to inform dialogue and action by relevant institutions.

Mr Hichikumba said the country’s economic transformation depended not only on increasing production but also on ensuring that goods moved efficiently from production centres to markets at competitive prices and within reasonable timeframes.

He said the Government’s production ambitions under President Hakainde Hichilema’s Grow Zambia agenda presented opportunities for agricultural transformation, mining, manufacturing, agro-processing and employment creation.

However, he said these ambitions needed to be matched by the capacity to move goods efficiently, meet market requirements and compete on price and quality.

Mr Hichikumba said the Government was pursuing measures to improve trade infrastructure, streamline procedures and reduce avoidable costs along domestic and regional supply chains.

He said the interventions included upgrading border infrastructure and operations, developing one-stop border facilities and improving coordination among border agencies.

He added that digitalisation and smart border systems would help streamline clearance procedures, reduce delays and improve the efficiency of cross-border trade.

Mr Hichikumba said Zambia’s landlocked position made reliable transport and logistics systems particularly important to its trade competitiveness.

He said high transport costs, freight charges and inefficient transit procedures could undermine the competitiveness of Zambian exports in international markets.

Mr Hichikumba cited transport costs as a major challenge, saying they could account for more than 40 per cent of the final price of goods in Zambia, compared with about 10 per cent in some European markets.

Mr Sinyangwe said delays, excessive transport costs and unnecessary administrative requirements affected producers, traders and consumers while undermining business competitiveness.

He said transport and logistics were central to the trading process, from moving raw materials to production centres to delivering finished products to domestic and international markets.

Mr Hichikumba said the Government was strengthening connections to regional markets and seeking to take advantage of Zambia’s position along major regional transport corridors to support trade and distribution.

He said Zambia was also committed to increasing its participation in regional and continental trade through frameworks such as the African Continental Free Trade Area (AfCFTA).

Mr Hichikumba said these agreements provided opportunities to expand exports, attract investment and integrate Zambian businesses into regional value chains.

However, he said trade agreements alone could not guarantee increased trade unless businesses were able to navigate trade procedures, move goods across borders and deliver products competitively.

He said the focus should therefore be on translating available trade opportunities into actual exports, investment and enterprise growth.

Mr Hichikumba said this required continuous engagement with the private sector to identify obstacles affecting businesses and develop practical solutions.

Mr Sinyangwe said the Trade Obstacles Alert Mechanism, an online tool developed by the International Trade Centre, would initially focus on challenges affecting the transport and logistics sector.

He said the mechanism would provide a structured channel for businesses to report obstacles, helping generate evidence that could inform advocacy, policy discussions and decisions aimed at improving the trading environment.

Mr Sinyangwe said ZACCI wanted the actual experiences of businesses to inform discussions and interventions addressing barriers to trade.

Mr Hichikumba said information gathered through the mechanism would help the Government identify recurring challenges, inform policy decisions and engage trading partners on resolving reported obstacles.

He emphasised that the mechanism was intended to complement existing government channels rather than replace established procedures.

He said its success would depend on the quality of information submitted, the timely referral of reported obstacles and constructive engagement between the public and private sectors.

Mr Sinyangwe urged businesses and industry associations to take ownership of the mechanism by reporting obstacles accurately and providing sufficient information to support their assessment.

He said the objective was not to assign blame but to establish a constructive process through which trade barriers could be identified, examined and addressed.

Mr Hichikumba also called on government ministries, departments and agencies to engage constructively with reported obstacles and consider appropriate responses within their mandates.

Mr Sinyangwe said the mechanism’s success should be measured by its contribution to more efficient trade processes and a more predictable business environment, rather than simply by the number of reports submitted.

Mr Hichikumba commended ZACCI and the International Trade Centre for supporting the initiative, saying partnerships between Government, the private sector and development partners were important in addressing constraints to trade.

Mr Sinyangwe reaffirmed ZACCI’s commitment to working with the Ministry of Commerce, Trade and Industry, the International Trade Centre and stakeholders across the transport and logistics sector to ensure the initiative delivered practical benefits.

He urged businesses and industry associations to use the mechanism and participate constructively in efforts to resolve the challenges they encountered.

Mr Hichikumba said efficient trade systems were necessary to support the Grow Zambia agenda by helping Zambian enterprises reach markets and ensuring that trade contributed meaningfully to economic growth, investment and job creation.