Chichewa

SMEs to reap from one-stop border post agreement

 

The National Association of Small and Medium Enterprises (Nasme) says it feels excited with the launch and the imminent construction of one-stop-border posts which it says will reduce travel costs and time its members encountered when cross ing into Zambia and Mozambique.

Nasme executive director William Mwale said in an interview at the weekend apart from reducing travel costs, the facility will also stimulate more trade between the two landlocked developing countries.

Entrepreneurs such as these  to gain from one-stop border agreement
Entrepreneurs such as these to gain from one-stop border agreement

Mwale was reacting to last week’s launch of the Nacala Road Corridor Phase Four Project in Chipata, Zambia.

The project’s major scope involves the rehabilitation of a 75-kilometre road between Liwonde in Machinga and Mangochi and also the construction and establishment of two one-stop border posts between Malawi and Mozambique at Chiponde and between Malawi and Zambia at Mchinji.

The project, whose completion is slated for 2016, is being financed by the African Development Bank (AfDB) to the tune of $84.1 million (K37.8 billion).

“It was taking too long to get cleared on the border may be two hours if you are travelling by bus. But when  travelling by your vehicle, it could take you 30 or 40 minutes while you are rushing to do business say in Lusaka and you want to return the same day,” said Mwale.

Mwale said with the one-stop border post facility, there will be a one point check at the border with no major stoppage on the way when Small and Medium Enterprises (SMEs) are entering or crossing Malawi.

He said currently, because of the delays at the main border posts coupled with numerous road blocks between Lilongwe and Lusaka, most SMEs feel frustrated and incur huge costs which eventually squeeze them outside their already small business ventures.

In 2010, Malawi also launched a first simplified trade regime (STR) with Zambia under the Common Market for Eastern and Southern Africa (Comesa) with an aim of easing the cost of doing business across the borders of the two countries and facilitate cross-border trade in the process.

 

 

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