ECONOMY
From 2015, ZipBCC has invested a further $4m in rehabilitation and improvements works to allow the smooth flow of traffic between the two countries.
for due to smuggling. This situation has made the location look disorganized, thereby affecting the flow of motor vehicles and creating an atmosphere for facilitation of smuggling.
Clearly, border traffic flow has an exponential effect on the revenue performance of Zambian government agencies operating at the border and collecting either tax or non-tax revenue.
As stated in the 2017 Budget Address, Zambia is making efforts to prioritize international trade as a tool for attaining inclusive growth and development.
As a result of improved operational efficiency, the importation of copper ores and concentrates through Kasumbalesa has now resulted in an upswing in total revenue collection, with Value Added Tax (VAT) accounting for more than 96%.
In this regard, efforts are underway to operationalise the Bilateral Trade Agreement with the Democratic Republic of the Congo and establish trade centres for our major non-traditional export markets beginning with Kasumbalesa, Kipushi and Chirundu borders.
Kasumbalesa has surpassed the 2017 revenue target by over K14m, collecting K342m as at 31st October 2017 against the annual target of K328m. The collection was boosted by an increase in both small-scale trading and commercial consignments. At the moment, Kasumbalesa experiences incidences of smuggling into the DRC from Zambia. Among other challenges, the close proximity of Zambia’s Bilanga market to the border, has been identified as a contributing factor to smuggling. At Kasumbalesa, the majority of traders are Congolese who cross into Zambia to buy food stuffs and sometimes sell merchandise. In as much as Zambia is benefiting from the buying power of the Congolese, trade happens haphazardly and transactions are poorly accounted
Going forward, the One Stop Border Concept is an important trade facilitation tool that will help to improve the flow of traffic across the border. Progressively, Zambia and the DRC have already signed an agreement to implement the One Stop Border Post (OSBP) concept at Kasumbalesa. Kasumbalesa is a low hanging fruit for enhancement of both tax and non-tax revenue collection for Zambia.
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