The Cost of Non-tariff Barriers to Business along the North–South Corridor (South Africa–Zimbabwe) via Beit Bridge A Preliminary Study
Summary
This 2008 report by the South African Institute of International Affairs examines the economic impact of non-tariff barriers (NTBs) on the North-South Corridor between South Africa and Zimbabwe, specifically focusing on the Beit Bridge border crossing and Durban port. The study identifies administrative and trade policy barriers—most notably Zimbabwean foreign exchange controls and regional transport inefficiencies—as significant costs to businesses across various sectors including mining, fuel, and agriculture.
Key insights
- Zimbabwean foreign exchange controls are consistently identified as the most costly non-tariff barrier across multiple sectors. For nickel exporters, the requirement to liquidate 25% of foreign exchange earnings into Zimbabwean dollars acts as an effective 25% export tax due to the gap between official and market exchange rates.
- The Beit Bridge border crossing experiences severe delays. A FESARTA study found that Consolidated Multiple Entry (CME) trucks traveling from South Africa to Zimbabwe took an average of 2.5 days to clear the border.
- Administrative processing times at Beit Bridge are split between the two national revenue services. Northbound CME trucks spent an average of 26.2 hours being processed by the South African Revenue Service (SARS) and 28.5 hours by the Zimbabwe Revenue Authority (ZIMRA).
- Durban port, the busiest in Africa, suffers from capacity and efficiency issues that create high freight and transport costs. Truck queues to enter the port can reach 5 km, causing delays of 3 to 6 hours at an estimated cost of R300 ($46) per hour per truck.
- Regional transport costs are inflated by the dysfunction of the rail network, forcing businesses to use more expensive road transport. Issues include a lack of available rolling stock, high risks of unexpected delays, and theft.
- South Africa's ban on second-hand vehicles from the Middle and Far East traveling on South African roads to destinations north of the border increases costs for importers. Transporting these vehicles via carrier truck adds approximately $700 to the cost of each vehicle.
- The implementation of a single administrative documentation (SAD) system for commercial traffic from South Africa to Malawi via Zimbabwe and Mozambique reportedly reduced transit times by nearly 40%.
- Trade between South Africa and Zimbabwe is highly asymmetric and dominated by specific commodities. In 2006, the main South African exports to Zimbabwe were mineral fuels, machinery, and vehicles, while the main Zimbabwean exports to South Africa were nickel, cotton, and tobacco.
- Official statistics omit one of Zimbabwe's most valuable exports to South Africa: platinum ore. Because it is refined in South Africa before being exported globally, it is recorded as a South African export.
- Zimbabwean fuel importers face numerous administrative levies, including a 5% tax on load value, road levies for petrol (Z$8.95/litre) and diesel (Z$9.08/litre), and various other taxes such as a carbon tax of ZS$100/litre.
Cite the original document
- APA
- Mthembu-Salter, G. (2008). The Cost of Non-tariff Barriers to Business along the North–South Corridor (South Africa–Zimbabwe) via Beit Bridge A Preliminary Study. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2008/11/dttp_rep_20_mthembu_salter_2008.pdf
- Chicago
- Mthembu-Salter, Gregory. The Cost of Non-tariff Barriers to Business along the North–South Corridor (South Africa–Zimbabwe) via Beit Bridge A Preliminary Study. South African Institute of International Affairs, 2008. https://saiia.org.za/wp-content/uploads/2008/11/dttp_rep_20_mthembu_salter_2008.pdf.
- Wikipedia
- {{cite report |last1=Mthembu-Salter |first1=Gregory |title=The Cost of Non-tariff Barriers to Business along the North–South Corridor (South Africa–Zimbabwe) via Beit Bridge A Preliminary Study |publisher=South African Institute of International Affairs |date=2008 |url=https://saiia.org.za/wp-content/uploads/2008/11/dttp_rep_20_mthembu_salter_2008.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{mthembusalter2008cost, author = {Mthembu-Salter, Gregory}, title = {{The Cost of Non-tariff Barriers to Business along the North–South Corridor (South Africa–Zimbabwe) via Beit Bridge A Preliminary Study}}, institution = {South African Institute of International Affairs}, year = {2008}, url = {https://saiia.org.za/wp-content/uploads/2008/11/dttp_rep_20_mthembu_salter_2008.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
Full text
Collected · Record updated