Maravi

Govt finalises guide to OSBP legislation

Govt finalises guide to OSBP legislation
Written by Kabanda Chulu
Wednesday, January 07, 2009 3:01:18 PM

GOVERNMENT has finalised legislation to guide the implementation and commencement of operations at the One Stop Border Post (OSBP) at Chirundu. It is expected that Zambia’s revenue collection at Chirundu border will increase by 25 per cent from the current K70 billion per month when the OSBP starts operations later this year since it would result in less congestion through quick clearance of goods and services.

Giving an update on the OSBP, commerce minister Felix Mutati said the physical infrastructure such as offices and terminal buildings had been completed and the National Assembly would soon pass the needed legislation.

“We are through with the physical infrastructure and we have finalised the legislation which we hope will be passed in the next sitting of Parliament and then the OSBP will commence operations,” said Mutati.

“And some of the immediate benefits will be the single clearance since, currently, there is double clearance but with the coming of the OSBP, goods will only be cleared on one side and that will be all. Also congestion will reduce and in the longer term, the socioeconomic problems that result in drivers to spend nights at the border will also reduce since there will be quick clearance.”

And Common Market for Eastern and Southern Africa (COMESA) secretary general Sindiso Ngwenya said the OSBP would be launched later this year.

“There is need to have projects that will have positive impact on poor people and the OSBP is one of those projects since it will reduce the cost of doing business and it will also enhance trade facilitation,” Ngwenya said.

“This OSBP facility will be the first in Africa and it will become an important tool for trade facilitation and would also reduce the cost of doing business in the region.”

Ngwenya said there was need to move towards harmonisation of the border procedures and integrated management to increase efficiency of trade and reduce the cost of doing business.

He said it currently took between 24 and 48 hours in order to make a successful border crossing at Chirundu border.

“This has many implications because business transactions are unnecessarily delayed since assets are tied up in transit and this situation leads to complications in the supply chain hence hindering competitiveness of local industry, reduction in consumer welfare and reduced capacity for revenue collection,” said Ngwenya.

Labels: BORDERS, OSBP

posted by MrK @ 3:02 PM