BORDER ECONOMIES LINKAGES TO THE DEVELOPMENT OF TRADE CORRIDORS AND REGIONAL VALUE CHAINS IN SADC
Summary
The paper examines how 'softer' operational issues, rather than hard infrastructure, drive high transport costs in SADC, specifically focusing on standing time at the Beitbridge and Chirundu borders. It highlights that border delays account for up to 60% of uncompetitive logistics costs and identifies causes such as poor coordination, staffing shortages, and driver behaviour. The research also explores the tension between trade facilitation and the sustainability of local border economies, which rely heavily on informal trade—predominantly by women—and logistics services. It argues for a holistic approach to corridor development that integrates economic growth with customs modernisation.
Key insights
- Operational 'soft' issues are more significant bottlenecks than physical infrastructure; performance scores in infrastructure and logistics competence are generally higher than those for customs.
- At the Beitbridge border, truck drivers report average waiting times of 48 hours, while Time Release Study (TRS) data shows total clearance into Zimbabwe averages 96 hours and 21 minutes.
- The implementation of a One-Stop Border Post (OSBP) at Chirundu has significantly reduced clearance times compared to Beitbridge, with total clearance into Zambia averaging 26 hours and 34 minutes.
- Standing time is exacerbated by driver behaviour, as drivers often remain at the border after clearance to rest, perform personal errands, or access services due to poor working conditions and lack of downtime.
- Informal cross-border trade is a cornerstone of border economies, with women making up approximately 70% of traders; however, they face significant barriers including lack of basic amenities and complex customs procedures.
- There is a structural tension between trade facilitation and local economic sustainability, as increased efficiency reduces the need for services that local firms provide to help traders overcome border hurdles.
- Trade flows through Beitbridge have declined since 2014, partly due to depressed commodity prices and partly because traffic is being diverted through Botswana via Kopfontein and Skilpadshek.
- Key operational causes of delays at both borders include staff shortages, system failures (such as ASYCUDA), multiple redundant inspections, and poor signage.
Cite the original document
- 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} }
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