EARLY this month Cabinet, chaired by President Hakainde Hichilema, sat and approved that Zambia signs and ratifies the Beira Development Corridor Agreement (BDCA).
The BDCA is amongst the Democratic Republic of Congo (DRC), Malawi, Mozambique, Zimbabwe and Zambia.
"It is in the interest of Cabinet for Zambia to sign and ratify the BDCA for the Agreement to enter into force and facilitate the creation of coordination mechanisms to address the challenges that require to be resolved by the five-member States," said the Ministry of Transport in a statement.
Frank Tayali, Minister of Transport and Logistics, added that the development was a very welcome move.
He also explained that the approved Agreement will now be taken to Parliament for the final stage in the ratification process.
Once ratified, it will be the fifth corridor agreement that Zambia will have ratified since the New Dawn administration took over office in 2021.
According to Mr Tayali, the remaining corridor under consideration and awaiting approval and subsequent ratification is the North-South Corridor Agreement.
The agreement is still waiting for intervention from the Southern African Development Community (SADC) Secretariat.
The Minister was highly optimistic that the approval of the Corridor was a sure way in the country's quest to create a multi-modal transportation and economic development system in the region and beyond.
It is acknowledged that the ratification of the Beira Corridor is yet another key engagement the Zambian government has undertaken to integrate the country into the regional web of trade avenues.
These engagements are a clear indication of the positive intentions that the New Dawn government has embarked on in the bid to address the country's inland goods movement.
The Beira Corridor undertaking comes just months after the US and European Commission-backed multimillion-dollar Lubito Corridor including the Angola Zambia railway link project took centre stage.
Being a landlocked country surrounded by eight countries, it is envisioned that Zambia stands to highly benefit from regional trade corridors such as the Beira Corridor.
Private Sector Development Association Executive Director Yusuf Dodia expressed optimism and described the Beira corridor as an interesting prospect for Zambia's regional integration efforts.
Mr Dodia added that being a single-country trade route, the Beira Corridor has a long-term benefit to Zambia and the region.
"There are long-term trade benefits for the country once the Beira trade corridor is fully operational. We expect Zambia to take full advantage of this development to improve the movement of goods in and outside the country by land.
"Currently, Zambia looks up to two significant trade routes. One is through Zimbabwe and South Africa to the port in Durban and another is to Dar es Salaam through Nakonde into Tanzania. But these are long routes while the Beira will be the shortest to the Mozambican port," he said.
True to Mr Dodia's sentiments the Beira Corridor will create a coordinated means to address the transportation challenges that the region currently faces.
The Corridor is also expected to promote infrastructure development along the route, strengthen transit-transport cooperation and enhance cross-border trade.
. Saasa
This undertaking will also ensure that the region begins to benefit from the various initiatives and development projects to be undertaken by investors and other cooperating partners within the corridor.
Renowned economist and business analyst Oliver Saasa acknowledged that trade corridors, like the Beira route, do not only improve the efficiency and smooth movement of cargo but also attract investment.
Prof Saasa explained that the good railway networks and road infrastructure associated with trade routes play a pivotal role in bringing in investors to set up business along the trade corridors.
"What happens is that because of these good, and efficient transport infrastructures, they also spur another level of investment which attracts private sector entities to set up businesses.
"We also look at the cost-effectiveness of the use of these corridors to the nation which is positive. It is better for the country hence I commend the government for taking up these trade corridor initiatives," Prof Saasa said.
Indeed, the Beira Development Corridor will bring with it other economic success stories for the region particularly the member states that are towing the line to bring this development to reality.
The corridor will be vital for enhancing regional and international trade competitiveness, particularly in closed-up countries like Zambia, including the DRC, Malawi and Zimbabwe.
Investors expected to flock to the corridor are expected to develop viable businesses along the railway and around the port in the region, creating employment.
Known as the 'ships graveyard', the Mozambican port of Beira links the inland states and is considered as a potential hub that can easily connect the southern region to the Far East markets.
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According to Mr Tayali, what was being undertaken was in line with the government's aspiration of turning the country into a regional transport and logistics hub.
The Minister also said the development of the railway link will cut the distance to the Beira Port by over 1000 kilometres in comparison with other ports.
It is also deemed that the Beira Corridor project will improve the livelihoods and prospects for young people living along the corridor by creating self-employment opportunities.
Further, development partners in various sectors, including governments in member states, the private sector and investors remain crucial to the development and realisation of the Beira Corridor agenda.
Prof Saasa said for Zambia to enhance the smooth movement of cargo in and out of the country it was imperative to continue engaging in trade corridor agreements for regional integration.
He added that the use of railway transport will lift the pressure exerted on roads in the country due to heavy-duty trucks crisscrossing Zambia from other countries.
"The government needs to be commended for these engagements because the cost burden of moving cargo whether imports or exports would be reduced and also address efficiency," he said.
