BORDER ECONOMIES LINKAGES TO THE DEVELOPMENT OF TRADE CORRIDORS AND REGIONAL VALUE CHAINS IN SADC

This research paper examines the political economy of border economies in the SADC region, focusing on the Beitbridge and Chirundu border posts. It analyzes the causes of 'standing time' (truck delays) and the tensions between trade facilitation efforts and the sustainability of local border economies, providing policy recommendations to improve driver wellbeing, support small-scale traders, and diversify border town economies.

• Border delays and 'standing time' for trucks are identified as the primary contributors to uncompetitive transport costs in Southern Africa, outweighing the impact of a lack of backhaul opportunities. Logistics companies attribute 60% of high costs to border delays, while 30% are attributed to a lack of backhaul opportunities.
• The average speed of a truck traveling the North–South Corridor from South Africa to Zambia is only 6 km/h, with transport costs estimated to be 1.4–2 times more expensive than in South-East Asian countries.
• At the Beitbridge border, truck drivers report an average waiting time of 48 hours for vehicles with correct documentation, though some face wait times up to 101.9 hours. Total clearance time into Zimbabwe from South Africa averaged 96 hours and 21 minutes in a June 2018 study.
• Standing time at Beitbridge is caused by operational 'soft' issues rather than hard infrastructure, including poor signage, lack of disaggregated lanes, low customs staffing, and duplication of inspections. Driver behavior also contributes, as drivers often remain at the border after clearance to rest or run personal errands.
• The implementation of a One-Stop Border Post (OSBP) at Chirundu has significantly reduced clearance times compared to Beitbridge. Total clearance time into Zambia at Chirundu averaged 26 hours and 34 minutes, suggesting that OSBPs can reduce clearance by an average of 50 hours.
• At Chirundu, standing time is exacerbated by limited operational hours (6am–6pm), Zambian travel restrictions between 9pm and 5am, and a lack of ICT interfacing between the ASYCUDA World systems of Zimbabwe and Zambia.
• Informal cross-border trade is a dominant economic activity, with estimates suggesting 50.1% of those crossing Beitbridge are informal traders, 70% of whom are women. These traders face significant vulnerabilities, including a lack of basic amenities (toilets, feeding rooms) and restrictive rules of origin.
• There is a tension between trade facilitation and local border economies; increased efficiency can undermine businesses that rely on border delays, such as hotels. For example, two major hotels on the Zimbabwean side of Beitbridge closed after the border became a 24-hour post.
• Trade flows through Beitbridge have declined since 2014, with traffic increasingly diverted through Botswana via Kopfontein (11% of inland border trade) and Skilpadshek (10%).
• The paper recommends that SADC finalize and harmonize a Simplified Trading Regime (STR) to assist women and youth traders, and prioritize driver wellbeing by providing sufficient off-duty resting time and health clinics.

APA

Ngarachu, A., Wood, C., Krogman, H., Tshuma, E., Mudenda, D., & Makokera, C. G. (2018). BORDER ECONOMIES LINKAGES TO THE DEVELOPMENT OF TRADE CORRIDORS AND REGIONAL VALUE CHAINS IN SADC. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2018/11/GA_Th3_DP_Ngarachu-et-al_201811061.pdf

Chicago

Ngarachu, Anna, Christopher Wood, Heinrich Krogman, Elisha Tshuma, Dale Mudenda, and Catherine Grant Makokera. BORDER ECONOMIES LINKAGES TO THE DEVELOPMENT OF TRADE CORRIDORS AND REGIONAL VALUE CHAINS IN SADC. South African Institute of International Affairs, 2018. https://saiia.org.za/wp-content/uploads/2018/11/GA_Th3_DP_Ngarachu-et-al_201811061.pdf.

Wikipedia

{{cite report |last1=Ngarachu |first1=Anna |last2=Wood |first2=Christopher |last3=Krogman |first3=Heinrich |last4=Tshuma |first4=Elisha |last5=Mudenda |first5=Dale |last6=Makokera |first6=Catherine Grant |title=BORDER ECONOMIES LINKAGES TO THE DEVELOPMENT OF TRADE CORRIDORS AND REGIONAL VALUE CHAINS IN SADC |publisher=South African Institute of International Affairs |date=November 2018 |url=https://saiia.org.za/wp-content/uploads/2018/11/GA_Th3_DP_Ngarachu-et-al_201811061.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ngarachu2018border, author = {Ngarachu, Anna and Wood, Christopher and Krogman, Heinrich and Tshuma, Elisha and Mudenda, Dale and Makokera, Catherine Grant}, title = {{BORDER ECONOMIES LINKAGES TO THE DEVELOPMENT OF TRADE CORRIDORS AND REGIONAL VALUE CHAINS IN SADC}}, institution = {South African Institute of International Affairs}, year = {2018}, month = nov, url = {https://saiia.org.za/wp-content/uploads/2018/11/GA_Th3_DP_Ngarachu-et-al_201811061.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }