Malawi’s economy is hindered by a lack of investment and high trade costs due to inadequate logistics and infrastructure. Clearing goods at the Malawi-Dedza border post with Mozambique used to take an average of three days. The implementation of One-Stop Border Posts (OSBPs) has significantly reduced border waiting times and the cost of cross-border transactions.
The Dedza border post, located between Malawi and Mozambique, is a bustling hub with over 80 trucks being cleared daily. These trucks transport a variety of goods from South Africa to Malawi, including fertilizers for the agriculture sector.
Prior to the construction of the OSBP facility, it took up to 36 hours to clear trucks carrying essential items like wheat, fertilizers, groceries, and raw materials for Malawi’s industries. The process involved navigating between multiple offices in different countries, causing delays and confusion for drivers and clearing agents. The lack of parking facilities also led to congestion on the road leading to the border post.
Establishment of One-Stop Border Posts
In 2015, the Government of Malawi initiated a project to construct OSBPs in Dedza, Mwanza, and Songwe, which border Mozambique and Tanzania respectively. These OSBPs, along with the National Single Window (NSW) platform, aim to streamline international trade procedures and reduce costs. The World Bank supported this initiative with $91.7 million through the Southern Africa Trade and Transport Facilitation Project.
The newly completed Dedza One-Stop Border Post features modern facilities including examination bays, parking for trucks, and a passenger terminal.
“We now spend less than half a day clearing goods compared to the minimum of three days we used to spend here,” says Flatella Makwakwa, a truck driver benefiting from the improved process. The new system has simplified truck passage and made the overall experience more convenient for users.
The modern office infrastructure has also improved operations for the Malawi Revenue Authority and other border officers. The concept of OSBPs involves hosting border officers from neighboring countries in the same building.
Traders now have access to better sanitation facilities while waiting for their goods to be cleared.
“The positive feedback we have received about the Dedza OSBP encourages us to support the completion of the OSBPs at Mwanza and Songwe. Our objective is to reduce clearance times for passengers and goods, as delays are costly to the country’s economy,” says Chikondi Nsusa, a Senior Transport Specialist at the World Bank Malawi Country Office.
Enhancing Malawi’s Trade, Logistics, and Infrastructure
The latest Malawi Country Economic Memorandum underscores the challenges faced by the country’s economy, including lack of investment and high trade costs. These issues are exacerbated by poor logistics, inadequate infrastructure, and non-tariff barriers at the borders.
The report emphasizes the importance of addressing non-tariff barriers and improving coordination with neighboring countries like Mozambique, Tanzania, and Zambia. The establishment of more OSBPs is a significant step towards achieving these goals.
Distributed by APO Group on behalf of The World Bank Group.