AfDB, World Bank to finance border posts feasibility studies

Minister of Industry and Trade Joseph Mwanamvekha has said African Development Bank (AfDB) and the World Bank are willing to provide technical support to improve services at the country’s border posts with Mozambique.

Mwanamvekha made the remarks last week during a bilateral meeting with his counterpart in Mozambique, according to a statement.

“Let me also interest you with the fact that the Africa Development Bank is willing to provide technical and financial support towards the Chiponde/Mandimba border post. In addition, the World Bank is also ready to support a feasibility study for the Dedza/Calomue, Mwanza/Zobue and Muloza/Milanje border posts.

“In light of this, I would like to call for closer cooperation in the establishment of a one-stop border post to ensure smooth implementation,” he said.

Mwanamvekha said it is difficult to transport goods in the region, especially for landlocked countries such as Malawi because transportation costs are high.

“Malawi transporters are faced with numerous challenges ranging from non-tariff barriers and high costs of insurance. You may be aware that under Comesa, a Comesa yellow card scheme is currently operational, which allows transporters to purchase insurance from the exporting countries and use the same insurance through any Comesa country that the cargo is transiting,” he said.

Mwanamvekha, therefore, urged Mozambican Government to consider joining the yellow card scheme even though the country is not a member of Common Market for Eastern and Southern Africa (Comesa) to further bilateral trade relations.

On trade activities between the two countries, he said there is a lot of trading activities along the bordering districts of the two countries; hence, the need to support small-scale traders to grow their businesses.

“I have in mind Tete, which has recently experienced booming business activities. Most of the trade in the border districts is being done by small-scale traders. In light of this, I would call on Mozambique to consider establishing a simplified trade regime (STR) for small-scale traders from the two countries,” he said.

Mwanamvekha said STR is ideal for facilitating and boosting cross-border trade between the two countries.