GROUP MEMBERS

MUDZIMU FLORENCE M187511

CHAWANDA RAVIRO L M181145
MUNEMO RONALD M180897
LUNGA KELVIN M187394
TSWANGIRA GUIDANCE M187396
KWANAI LEARNMORE M188093
CHINEKA TRISH M188262
ZHANDA JOSIPHINE M180790
NEDAWA GODFREY M186871
MACHAURIRA MALVIN M187537
KUPANGWA ARON M187613
International Trade and Transportation

 International trade- It is the exchange of capital goods and services between many
countries.

 There is close relationship between international trade and international

transportation.

 International trade involves supply chain and logistics concept

 Transport and logistics sector is an integral part in terms of facilitating

international trade as it allows firms to effectively complete imports and exports
of goods and services and associated transactions.
LOGISTICS
 Logistics- Refers to the movement, storage and flow of goods, services and
information within the overall supply chain
 Logistics is the backbone of global trade. As supply chains become more globally
dispersed, the quality of a country’s logistics services can determine whether or not it
can participate in the global economy.
 Transport and logistics services facilitate international trade and play an important role
in the growth and development of the local economy as it allows firms to effectively
complete imports and exports of goods and services and associated transactions.
 Poor logistics services such as limited co-ordination among countries on border
procedures, inefficiency of customs clearance process at the ports, fragmented and
poor quality of transportation related infrastructure, costly and infrequent shipping
(with long and indirect shipping routes), delays in terminal handling and clearance of
goods, absence of cool storage facilities at ports and the inability to certify product
quality can cause significant hindrance to international trade.
SUPPLY CHAIN

 Supply chain management- It is the overarching concept that links together

multiple processes to achieve competitive advantage. It is referred to as the
alignment of firms that bring products or services to market.
 The supply chain includes manufacturer, suppliers, transporters, warehouses,
wholesalers, retailers, other intermediaries and even customers themselves.
 Any good traded on the consumer goods market, in its evolution from raw
material to finished product undergoes a series of successive transactions on the
business to business market.
 For example when a final consumer purchases a bottle of coca cola he/ she does
not buy directly from coca cola but from an intermediatary eg hypermarket and
the product goes through several transactions on the business to business market
on the circuit coca cola- wholesaler- retailer-final consumer. (Supply chain).
CONT’

 Global supply chain management involves planning how the entire supply chain
will function as an integrated whole, with the aim of generating an optimum level
of customer service while being as cost efficient as possible.
 Trading globally gives consumers the opportunity to be exposed to goods and
services not available in their own countries, or which would be expensive
domestically.
 Transportation is very important because it enables fast delivery of products and it
includes the movement of goods and services and people from one location to
another. (Road, rail, air and pipeline)
 International trade transportation analysis depends on the collection, accuracy,
completeness, cost effectiveness and timely distribution of international trade data
CONT’
 Challenges affecting transport and trade include, transport costs and access to efficient
transport services; energy, oil prices and shipping costs; environmental sustainability of
transport
 There are three broad types of transport policies which include infrastructure
investments, price instruments, and regulations (Berg et al., 2015).
 Policies important to international trade transportation include international trade
agreements, ports, trade corridors, and new technology.
 For example :World Trade Organization, which began in the middle of the 20th century
as the General Agreement on Tariffs and Trade which will continue to reduce trade
barriers and encourage regional trade agreements
 A reduction in transport costs may stimulate the volume of trade thereby influencing the
patterns of trade and trade costs are high in developing countries for example in Ethiopia
and Nigeria for instance, the costs are four to five times larger than in the United States
(Atkin & Donaldson, 2015).
 CONT’
 Thus building integrated multimodal transport networks towards high transport costs and
environmental impacts for example Africa’s Northern Transport Corridor that joins
Burundi, the Democratic Republic of Congo, Kenya, Rwanda and Uganda.
 Sustainable transport policies for example the White Paper on transport adopted by the
European Commission which sets the objectives, such as optimizing the performance of
multimodal logistics chains, including by using several more energy-efficient modes of
transport on a larger scale, facilitated by efficient and environmentally friendly freight
corridors;
REGIONAL TRADE AND
TRANSPORTATION
 Trade and transport have long been central to the Southern African Development
Community (SADC) integration agenda.
 Regional trade is defined as a treaty between two or more governments that define
the rules of trade for all signatories.
 Regional trade is the key determinant of trade flow between the counties
 TYPES OF REGIONAL TRADE AGREEMENTS:
 Southern African Development Community
 European union
REGIONAL TRADE AGREEMENTS
UNDER SADC
 Countries in SADC includes ; Zimbabwe, South Africa, Namibia, Lesotho, Botswana,
Mozambique, Zambia, Swaziland etc.
 FREE TRADE AGREEMENT(2008): They did what is called trade linearization, which
refers to the process of opening markets to international trade by reducing trade
restrictions including tariffs and non-tariffs barriers on the import and export of goods.
Therefore, there was free trade in 2008 leading to growth of economic of the countries.
 Custom union (2010)- linking all SADC members within which trade between members
is free while a common external tariffs is levied on non-members trading partners.
There is only record of 5 members that signed with custom union with South Africa
like Botswana , Namibia, Lesotho, Swaziland, while others are small as this free trade
with SA spurred their development. All these are encouraging regional trade benefits .
 To promote further cooperation SADC continues to work to incorporate other members
states into custom union, common market 2015, monetary union 2016
REGIONAL TRADE AGREEMENTS
UNDER EUROPEAN UNION
 Countries includes Botswana, Lesotho, Mozambique, Zimbabwe etc
 ECONOMIC PARTNERSHIP AGREEMENT (EPA)- this was done with SADC
countries. It grants 100% free duty and quota free access to all imports coming
from Botswana, lesoth, Mozambiques etc. removes duties on 98.7 % of imports
coming from South Africa under specific quantity quotas.
 For example EU countries made agreement with Zimbabwe to an extent that they
allow free duty access to Zimbabwean exports and in return, Zimbabwe agreed to
gradually open up markets for EU products over 15 years.
Cont’

 AFRICAN CONTINENTAL FREE TRADE AREA (AFCFTA) -This was

between developing countries with the aim to create a single continental market
for goods and services, eventually leading to the establishment of a Customs
Union regional trade it is important to note that the agricultural sector is directly
linked to the regional and international markets.
 This was joined by Zimbabwe in 2020 For example, regional trade helps in the
economy of country and foreign investments are promoted like in Zimbabwe,
according to the Reserve Bank of Zimbabwe regional trade agreements contribute
more than 40% to the ease of trade due to the enhanced trade facilitation because
of the various partnerships (RBZ, 2019b).
REGIONAL TRANSPORTATION

 Transport networks that are included in regional trade like roads, freight, rails etc.
 -Freight transport also plays a critical role in facilitating cross border trade
 -Cross border road transport plays a key role in the achievement of regional
integration especially in Africa.
 Regional transport corridors play a key role in linking landlocked countries to
fellow African countries as well as to foreign markets via the main ports in South
Africa, Mozambique, Angola and Namibia thus enhancing accessibility as well as
promoting domestic and regional trade.
Highway code in SADC

 They should be the same so that everything will flowing indifferent regions.
 This will facilitate good transportation network movement hence regional trade
will flow. -According to TSCZ Managing director Mr. Obio Chinyere the new
highway code which contains in it new rules and traffic signs such the box
junction, has come into place as a means to standardize the rules regionally.
 For example in SADC countries like Zimbabwe, ZAMBIA was with different
highway codes hence this was affecting transport movement hence affect trade so
SADC agreed to have same highway code so that they will be no confusion when
it comes to drivers from either Zimbabwe to South Africa.
 -The new highway code has come about following the SADC ROAD SAFETY
PROGRAMME OF ACTION in support of the UN Decade of Action Road Safety
2011 -2020, aiming to standardize and harmonies the road signs in the region.
Regional Road Trunk Routes:In
Zimbabwe
CONT’

 Road network is important as it enhances accessibility as well as promoting domestic

and regional trade as a key transport corridor.
 Regional road transport corridors play a key role in linking landlocked countries to
fellow African countries as well as to foreign markets via the main ports in South
Africa, Mozambique, Angola and Namibia.
 EXAMPLES:
 Beitbridge -Harare -Chirundu route thta is rehabiltated and dualisation of 934km
 Harare Ring Road - which is is under construction of 117 km road
 bulawayo - beitbrigde road -
 Bulawayo -victoria falls kazungula
 Harare - Nyamapanda
Transport corridors

 Consist one or more routes that connects centers of economic activity whereby the routes
have different alignments but common transfare points and common end points which are
gateways that allow traffic to enter or exit the corridor.
 They provide transportation and other logistics services that promotes trade among the cities ,
countries along the corridor infact they are developed to support regional trade hence regional
economic growth hence that’s the reason why many transportation corridors are associated
with corresponding trade and economic corridors.
 Regional Infrastructure Development Master Plan identifies corridor development as a key
strategy for improving the performance of transport in the region to serve the intraregional
and overseas trade.
 Following South Africa’s use of spatial development initiatives (SDIs) and the example of the
Maputo Development Corridor, SADC adopted its Spatial Corridor Development Strategy in
2008. As a result, the SADC transport agenda now increasingly focuses on mobilizing
infrastructure investment and facilitating trade along the region’s major transport corridors.
TRANSPORT CORRIDORS IN SADC
Rail corridors in Zimbabwe
CONT’

 The rail corridors in Zimbabwe that connects it from different countries to ensure
trade leading to economic growth.
 a reliable rail network offers the much needed support to economic activities as it
provides efficient transportation for bulk commodities (mining, industrial and
agricultural produce) and offers a cheaper alternative to the commuting public.
For this reason, the Bank considers the resuscitation of the National Railways of
Zimbabwe (NRZ) as paramount to addressing the high cost of doing business and
spurring economic development, as well as for promotion of regional integration.
 EXAMPLES: Lion’s Den to Kafue Rail Link Project to be done ZIMBABWE TO
ZAMBIA
 Shamva to Moatize Rail Link Project to be done ZIMBABWE TO
MOZAMBIQUE
Corridors in Zimbabwe
 Beira Corridor -which serves road transport along the Beira–Mutare–Harare–
Chirundu–Lusaka Route, which overlaps with the Harare–Chirundu–Lusaka
section of the North–South Corridor.
 Trans-Kalahari Corridor- is also a much faster route for road transportation, as it
saves about five to seven days, compared to other ports in the region for cargo
from European and America. Zimbabwean Traders have also an option either to
use the Trans-Kalahari Corridor or Trans-Caprivi Corridor as the trade corridor
links West Africa, as well as Europe, the Americas, and West Africa.
 Walvis Bay route corridor in Namibia will provides a safe, faster, cheaper
alternative for Zimbabwean importers of raw materials and exporters of finished
products.
CORRIDOR SYSTEMS

 Corridor Trip Monitoring System (CTMS) : A new digital information system to monitor and
speed up cross border truck movements and driver health checks at land borders in Eastern and
Southern Africa was launched on 20th May 2022 at Tlokweng Border Post in Botswana.
 CTMS has now been installed at major commercial border posts in Botswana, Namibia,
Zambia, and Zimbabwe, along sections of three regional transport corridors, and will soon be
installed in other Eastern and Southern African countries. The CTMS is spearheaded by the
Southern African Development Community (SADC) on behalf of COMESA, EAC and SADC.
 In his remarks, Honourable Thulaganyo Merafe Segokgo, MP, Minister of Communications,
Knowledge and Technology for the Republic of Botswana underscored that the Corridor Trip
Monitoring System has proven to be a highly effective and efficient digital solution in the
management of safe cross border road transport and compliance to COVID-19 requirements by
operators and drivers, and most importantly enhancing trade facilitation and movement of
goods across the Southern African region and beyond.
Cont’

 The system at Tlokweng will boost transport efficiency from Cairo to Cape
Town,” said Mr Jan Sadek, the European Union’s Ambassador to SADC and
Botswana, at the Launch. “Economic integration is in the EU’s DNA, and we are
delighted to help build a transit system that will ultimately streamline trade and
travel between all parts of Africa.”
FACTORS AFFECTIONG REGIONAL
TRADE AND TRANSPORTATION
 Soft infrastructure constraints obstructing the regional integration process, including
the lack of harmonization of transport policies,, and procedures governing both
trade and infrastructure development.
 Poor hard infrastructure continues to cast a long shadow on Africa’s competitiveness
and diversification.
 The resistance of national regulators to transition from bilateral to multilateral
permits (the former are a significant source of rents).
 Lack of coherent thinking in some member states on how to link trade and transport
agendas, and a lack of coordination between border agencies.
 Moreover, SADC island member states and some of its smaller, less developed
members, have much less to gain from a corridor approach. They therefore show
limited commitment to this agenda.
HOW TO REDUCE FACTORS AFFECTIONG
REGIONAL TRADE AND TRANSPORTATION
 -In particular, it is essential to scale-up investment in efficient, seamless, and cost-
effective transport as well as in soft infrastructure reforms such as one-stop border
posts- This involves reforms in border and behind-the-border operations,
including the reliability and efficiency of transportation infrastructure, logistics
operations, and customs and border management regulations and procedures
 Constructing, rehabilitating, and maintaining reliable and efficient regional
infrastructure would act as a catalyst for development, by bringing down the time
and thereby the costs of cross-border trade and transport, which in turn would
foster trade, the creation of decent jobs, inclusive green growth, and lead to an
integrated continent as a pathway to sustainable development.
 For instance what is done
Cont’

 For instance what is done in SADC- they are doing National Development Strategy 1
(NDS1), which identifies the urgent need to rehabilitate national road, networks,
particularly those that link the country to the rest of the region so that regional trade
will be done. “In this regard, the NDS1 will target to increase the number of
kilometers of road network converted to meet Southern Africa Transport and
Communications Commission (SATCC) standards from five percent to 10 percent by
2025 and to increase the number of kilometers of road network in good condition
from 14 702 km to 24 500 km by 2025.
 Therefore, The upgrading of beightbridge road will reduce the cost of road transport
along the North-South Corridor and Dar es Salaam corridor, reduce vehicle operating
costs for freight transport and improve the competitiveness for industries in the eight
countries served by this corridor which are Democratic Republic of Congo, Malawi,
Mozambique, Namibia, South Africa, Tanzania, Zambia and Zimbabwe.
Transport and
development in SADC
• DEVELOPMENT IN SOUTHERN AFRICA HAS TRADITIONALLY OCCURRED ALONG ROUTES THAT CONNECT

AREAS OF INDUSTRY WITH AREAS OF TRADE.

Cont.

 From industrial sites, raw materials pass along highways, railways, canals, and

pipelines to ports for export, while finished products travel back through the same

corridors. As a result, Infrastructure has been concentrated along these routes.

Cont.

 However, infrastructural bottlenecks along these corridors – poor roads and

bridges, confusing border logistics, and complex customs procedures – often

hamper operations of these other industries.

Cont.

 SADC has formulated policies and strategies for Regional Integration in support

of economic growth and development. The economic benefits expected from
Regional Integration, as shown elsewhere around the world, include increased
market size, improved intra-regional trade and investment flows, and increased
transfer of technology and experience.
.

 Protocol on Transport, Communication and Meteorology

 advises SADC Member States to promote an integrated, multimodal transport

system throughout Southern Africa that remains efficient, reliable, economically
viable, and environmentally responsible. For example development of Kazungula
bridge allows movement of goods and services from one country into another and
reduces pressure on Beitbridge and this development could lead to better
efficiencies, reduced traffic and clearances and related costs
Cont,

 calls for the creation of Corridor Planning Committees to focus on specific

strategies for development along the region’s key corridors.

  These Corridor Planning Committees are cross-border entities comprised of both

public and private stakeholders from transport and infrastructure authorities,
customs authorities, trade and industry bodies, and users of the development
corridors.
Cont.

 Example:

 Maputo development corridor restores the historic trade route between the
landlocked provinces of Gauteng and Mpumalanga in South Africa to the port of
Maputo in Mozambique, and has drawn extensive investment into the sub-region. 
Cont.

 Also, developments throughout SADC have followed the Spatial Development

Initiative model.

 This model serves as an integrated planning tool for promoting development in

regions that exhibit strong growth potential; it offers systems through which the

public sector crafts conditions attractive to private investment and public-private

partnerships
 Regional Infrastructure Development Master Plan Transport Sector Plan
(2012) aims to:
 key hubs for rehabilitation and development in order to improve the ability of
passengers and goods to reach markets

 analyses the current situation in SADC regarding roads, rails, ports, waterways,
and air transport, offering projections for the future and an assessment of gaps
between the current situation and infrastructure goals for 2027.( cost-effective
trans-boundary infrastructure. )
 Regional infrastructure development master plan currently projects the following
increases:
 By 2030, traffic for landlocked SADC countries will increase to 50 million
tonnes, ramping to 148 million tonnes by 2040 – an 8.2% annual growth rate.
 Port traffic will expand from 92 million tonnes to 500 million tonnes by 2027;
 Port expansion projects at Dar-es-Salaam will only sustain shipment traffic
through 2020;
 Hence development in SADC  
By 2027, the following road projects are anticipated for
operation:

 Dar‐es‐Salaam – Chalinze toll road

 Kazungula bridge
 Nata – Kazungula road upgrading
 Beitbridge – Chirundu road upgrading
 Tete toll bridge
 Western Corridor road in Zambia