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WE PROVIDE THE BEST SERVICES AGS provides a wide range of services above and below wings delivered by our highly skilled and trained staff, operating the latest ground services equipment. Complimented by our mature and rened systems, safety and security are guaranteed and
CARGO HANDLING
maintained as our highest priority.
AIRCRAFT HANDLING
Aviation Ground Services New Cargo Village Robert Gabriel Mugabe International Airport P.O. Box Ap13 Harare Zimbabwe
Tel:+263242575000-9 Tel:+263-867-700-4791 Email:
[email protected]
X- RAY MACHINE
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Contents
EDSURGE COMMUNICATIONS Suite 10/11 North Wing Mercury House, 7th Floor George Silundika Avenue/1st Street Harare TEL :242 774 025 Mbudzi interchange construction gathers momentum 0773 182 226 Email :
[email protected] www.edsurgenews.com
EDITOR William Makomo
[email protected]
SUB EDITOR George Honzeri
[email protected]
DESIGN AND LAYOUT
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Government commits to road rahabilitation
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Tanzania Ports Authority enters Zim market
George Honzeri
[email protected]
MARKETING AND SALES
Tatenda Makomo
[email protected] [email protected]
COVER DESIGN Omega Jaricha
[email protected]
PHOTOGRAPHER Blessing Madhorobha
DISCLAIMER
[email protected]
The opinions expressed in The Freight and Transport Magazine do not necesssarily reflect those of Edsurge Communications, the publisher or their agents. Any unauthorised copying of this publication, or of articles or columns herein other than than for personal use or internal reference, without the express written permission of the publisher is strictly prohibited.
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Mbudzi interchange construction gathers momentum
Clearing agents lobby for self regulation
Editor’s Note In today’s world of hyper networking, hyper information, and hyper communication, we can’t even eat a meal without having to Instagram it first. So as news. We can’t read alone without sharing, tweeting and re-tweeting, we now create assemblage, which has taken crazy to a whole new level. Everything today in the market is fierce and makes it that much more difficult to focus and stay sane.
stones on national infrastructural developmental achievements and the Ministry of Transport’s 2023 strategic plans as guided by the Budget not to mention Beitbridge-Bulawayo-Victoria Falls Highway rehabilitation project expected to kickstart soon. With the strain socio-economic situation everyone around is effected and facing their part of stress, imagining the normal soon seems a dream, myself and my team would like to express our gratitude and appreciation to all our readers and stakeholders for supporting us and we are gleaned that the magazine we compile is of significance to the industry that we represent, thank you once again
I am thrilled that The Freight & Transport Magazine continues to grow and its significance well commendable by Industry stakeholders within Zimbabwe and across the Region. This has of late pushed demand for the publication and Insights on the issues expected to get coverage and feature in upcoming ISSUES continue to pour in from stakeholders from all corners of the country and region. Serving to give support to the truth and factualness of H.E President ED Mnangagwa’s Mantra, “ZIMBABWE IS OPEN FOR BUSINESS”, The Freight & Transport magazine on behalf of the Freight Sector in Zimbabwe would like to welcome Tanzania Ports Authority (TPA) for joining the Freight World sector in Zimbabwe and their participation in the current Issue of the Transport magazine. Zimbabwe and Tanzania are long standing friends with historical ties going as far back from early 1960s from the time when the struggle for independence was fought. Such long historical ties and relationship between the two (2) African countries is expected to be fully translated into strong diplomatic and economic cooperation to improve the welfare of their citizens. TPA’s initiative in promoting trade between the two (2) countries is a great milestone in the implementation of Africa Continental Free Trade Agreement (AFCFTA) and strengthening ties between Tanzania and Zimbabwe.
William Makomo
Editor
In this 2023 1st quarter Issue we have derived our main article from the 2023 National Budget information to update our stakeholders, readers and audiences of the 2022 summary of mile-
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Road s infrastructure development towards vision 2030
Modernisation of the county’s roads paves way for increased trade and development In line with the national vision, Government’s interven- Bank Group is developing a standardized framework of tions in the transport sector seeks to address bottlenecks evaluating road construction input costs for adoption and affecting connectivity, in order to foster economic devel- use by all road authorities. opment and trade facilitation. Support from Japan, through the Japan International CoopOverall support towards the transport sector for the eration Agency (JICA), amounting to JPY97 million, (apyear 2023 amounts to ZWL$194.8 billion, of which proximately US$0.7 million) in grant funding will ensure ZWL$177.4 billion is earmarked for road rehabilitation, finalization of a Detailed Design Survey for Phase 2 Road ZWL$13.4 billion and ZWL$4 billion being channeled Improvement Project, meant to construct climbing lanes towards rehabilitation and upgrading of airports and the and widening of sharp curves on the road section between Makuti and Hell’s Gate. railway network, respectively. In the road sector, priority is on upgrading and rehabilitation of the road network, with emphasis on completion of ongoing rehabilitation works of major road and re-gravelling of feeder roads.
The construction of the Mbudzi Traffic Interchange, meant to eliminate congestion and complement the ongoing upgrading works on the Beitbridge-Harare-Chirundu highway, is progressing well and expected to be completed in 2023.
The upgrading of the 580km Harare–Beitbridge Highway, The following works will be undertaken in 2023 to coma strategic transport route which is a critical section of the plete the project: North-South Corridor, will be prioritized for completion • Construction of 9 bridges, including the main bridge; during 2023. As at end of October 2022, a total of 400km has been • Backfilling of bridge approaches opened to traffic, whilst the remaining sections are under • Construction of 14 approach roads, including diversion construction. routes of Amalinda road and its bridge To facilitate work towards completion of the project, a In an effort to increase access and coverage in rural commutotal of ZWL$43 billion has been set aside under the 2023 nities, the District Development Fund (DDF) is re-gravelNational Budget. ling and maintaining rural feeder roads, with 134km having The Emergency Road Rehabilitation Programme II has been rehabilitated and re-graveled, whilst 16 wash away been allocated ZWL$70.5 billion for implementation of were reclaimed as at end of October 2022. priority trunk and tertiary road projects in provinces and The 2023 Budget will sustain these interventions, with an districts, as well as major arteries in urban areas. allocation of ZWL$3 billion being set aside under DDF. In addition, the Road Fund will support maintenance of Improvements in airport infrastructure will establish the roads under road authorities, with ZWL$41 billion being country as a gateway to the continent and the world, benechanneled towards various road projects, and a further fiting from the rebound in tourism, as COVID-19 lockdown ZWL$43.5 billion being allocated for other road infra- measures ease across the globe. structure assets, covering tollgate infrastructure developSupport will mainly focus on the Robert Gabriel Mugabe ment and VID weighbridges. International Airport, funded from a loan from China Exim To facilitate value for money in the implementation of the Bank. Completion of the project will increase passengers Programme, Government with the assistance of World To page 6
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From page 5 Completion of the project will increase passengers and cargo handling capacity at the airport, ensuring it becomes one of the regional aviation hubs, attracting more airlines and facilitating tourist arrivals. The 2023 National Budget provides ZWL$3.1 billion for the procurement and installation of air traffic control, surveillance, aircraft communication and weather equipment in order to improve air safety and security at major country airports. The service provision by the National Railways of Zimbabwe has remained poor, at a time demand for its services are needed to lower the cost of cargo freight in support of economic transformation. Given the huge capital requirements needed to re-establish service provision, the NRZ Recapitalization Road Map, to be implemented from 2023, seeks to leverage the parastatal’s 121 assets to crowd in private sector funding. Phase I of the project is targeting the rehabilitation of rail infrastructure, procurement of locomotives, wagons and passenger trains that will Official oppening of Beitbridge improve cash flows to support the recovery of NRZ. modernisation project The commissioning of the Beitbridge Border Post modernization project by His Excellency, the President, Cde E. D. Mnangagwa in September 2022 has provided impetus towards addressing bottlenecks and inefficiencies at the country’s ports of entry.
from an increase in traffic volumes of private vehicles that has resulted in traffic congestion on major roads during peak hours.
The funding model, involving the private sector, under a Public Private Partnership (PPPs) arrangement, is being considered for other border posts such as Chirundu, Plumtree and Forbes in order to reduce the burden on the fiscus, as well as facilitate smooth movement of goods and people through our country borders.
This is notwithstanding the liberalization of the sector in May 2022 and incentives for private players to import buses through suspension of duty. Whilst modalities to broaden private sector participation are being finalized, the capitalization of ZUPCO to acquire additional buses becomes imperative.
The Budget will support works to align the country’s border at Kazungula with Botswana and Zambia, in order to support trade and transport along the North-South Corridor, as well as the Trans-African Highway on the Cape to Cairo route.
Accordingly, the 2023 Budget has set aside resources amounting to ZWL$6 In addition, investors will be incentivized to set up amenities such as health billion for the procurement of additioncenters, warehouse facilities and supermarkets, among other facilities, along al buses. This will be complemented by the trunk roads and border ports. measures to address management of urban transportation system, governance Pertaining to Public Transport, urban centers in particular Harare and issues, and viable fares, critical to the Bulawayo, have witnessed a surge in demand for public transport, arising commercial viability of the company.
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Tanzania Ports Authority plunges into Zim market William Makomo With at least 15,900 motor vehicles imported to Zimbabwe through Dar es Salaam Port during the Financial Year 2021/22, the Tanzanian Government through Tanzania Ports Authority has undoubtedly identified Zimbabwe as a potential market worth exploring and investing into. Located 2,284,54km from Harare, Dar es Salaam Port is striving to become the regional port of choice when it comes to cargo safety, port efficiency and lower handling costs when compared to traditional ports of Durban, Walvis Bay and Beira. Tanzania Ports Authority is a Public Parastatal Entity under the Ministry of Works and Transport with the mandate to manage and operate both Sea and Lake Ports in Tanzania. In addition to Dar es Salaam Port, other major Ports managed by the Authority include Tanga Port, Mtwara Port, Lake Victoria and Lake Tanganyika Ports.
around time, commendable security with less trucks hijackings compared to what happens in other regional cargo routes is what makes Dar es Salaam Port unique for the Transit market, including Zimbabwe. As a means of extending its commitment to better serve Customers, TPA has launched a Country Office in Harare that will provide reliable information on the facilities and services offered at Dar es Salaam Port and offer required customer service on ground. The Office, located at 17 Philips Avenue, Belgravia, Harare will eliminate the need for Customers to physically travel to Dar es Salaam to obtain cargo related information hence minimizing the overall cost of trade.
Apart from the already existing Motor vehicle Cargo traffic through TPA ports has been increasing from Traffic, TPA is keen on growth and diversifi15.5 Million in the Financial Year 2017/18 to 20.7 Million in cation of other types of Cargo including Containerized Cargo. The Port has made immense the Financial Year 2021/22. improvements on its facilities following completion of the Dar es Salaam Maritime Gateway Dar es Salaam has been described as an anchor port handling Project (DMGP). Through the Project the Port over 99% of the total seaborne traffic and serving not just has dredged its entrance channel to 14.5 Meters Tanzania but also several land linked neighbors in the Region culminating to over 700 Million People including Zimbabwe. depth, allowing for berthing large Ships, Railway network improvement in the port, modernization of ICT Systems and procurement of Construction of a dedicated RORO Terminal with 73,000 modern equipment for operational efficiency. Square Meters, is able to accommodate at least 3,000 vehicles at any given time which translates to at least 200,000 units per annum. Further, it is worth pointing out that in addition to the Terminal construction, the Port displays the highest level of operational efficiency with the ability to offload 100 vehicles per hour.
Zimbabwe and Tanzania are long standing friends with historical ties going as far back from early 1960s from the time when the struggle for independence was fought. Such long historical ties and relationship between the two (2) African countries is expected to be fully translated into Multiple vehicle delivery services, efficient clearing turn- strong diplomatic and economic cooperation to
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Tanzania Ports Authority connecting the region from the East
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TANZANIA PORTS AUTHORITY Committed to serve 24/7 365
Tanzania Ports Authority provides the necessary pathway to trade between Asia and Africa with trade volumes expected to rise as industrialisation is taking place in the region. 10
Xpress Sunshine Logistics Growing from strength to strength
Custo
ms cle
aring
With six branches in the country offering end to end clearing and forwarding services, Xpress Sunshine Logis�cs is growing from strength to strength offering an array of services to the local market and beyond. Established during the height of the covid 19 induced recession in 2020 ,Xpress Sunshine Logis�cs has stood the test of �me to compete with established clearing and forwarding companies in the the country. The company located in avenues area of Harare at Westminister Court at number 209 Kwameh Nkrumah Avenue boasts of a team of young, energe�c reliable and highly trained workforce eager to build a strong brand in the freight forwarding and clearing business. The company has a network of branches in Mutare, Victoria Falls, Plumtree, Beitbridge, Chirundu as well as representa�ves in Dubai, China and the United Kingdom. Xpress Sunshine deals with all kinds of cargo mainly from China, Dubai and the United Kingdom. The company has a sound working rela�onship with the Zimbabwe Revenue Authority and credits it for availing informa�on on any changes for the benefit of the organisa�on..
Impor
ts and
Export
s
Transport logis�cs, bulk cargo, containerised logis�cs, freight forwarding and customs clearing are at the core for Xpress Sunshine making it one of the fastest growing organisa�ons in the clearing and forwarding sector in the country. Xpress Sunshine is also a member of the Shipping and Freight Forwarders Agents of Zimbabwe (SFAAZ) .The Company has a sound working rela�onship with SFAAZ and is a strong advocate for good working ethics. Xpress Sunshine is a strong member of SFAAZ offering support to the organisa�on. Xpress Sunshine is looking beyond expanding its foot print over the country’s boarders and to change ways of doing business. The work ethic at Xpress Sunshine is �meous service. Xpress Sunshine considers the client as part of their family through providing cost effec�ve, reliable and trusted
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Trans p
ort Lo
gistics
logis�cal solu�ons for any interna�onal freight service. Door to door delivery services has also made Xpress Sunshine the logis�cs company of choice. The company also accepts any form of payment so as to fully service the expanding clientele base. Xpress sunshine also bemoans forex shortage as a hindrance to the growth of the industry though the company commended government for availing a conducive environment for business.
From page 8
improve the welfare of their citizens. TPA’s initiative in promoting trade between the two (2) countries is a great milestone in the implementation of Africa Continental Free Trade Agreement (AFCFTA).
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XPRESS SUNSHINE Always On Time
Xpress Sunshine ,Chirundu
Xpress Sunshine Chirundu
Xpress Sunshine Victoria Falls Xpress Sunshine is fast growing private company in the clearing ,shipping and forawarding business.It has other branches in Beitbridge ,Plumtree and Chirundu which are the busiest ports of entry in Zimbabwe.The company’s business ethic is “Always on time”
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AFRICA CENTRE FOR CUSTOMS EXCISE AND TRADE STUDIES
Boosting intra-Africa trade through capacity building ACCETS is registered with the Zimbabwe Ministry of Higher and Tertiary Education Science and Technology Development as a training institution. Certification of its courses is done by the Zimbabwe Higher Education Examination Council (HEXCO) ACCETS is inviting interested people to apply for the following National Diploma courses. COURSE 1 National Diploma in Customs and Excise Management
2 National Diploma in Applied Taxation
3 National Diploma in Freight Forwarding Logistics Management
ENTRY REQUIREMENTS 5 O Levels including English and Maths and National Certificate in Purchasing & Supply or its equivalent.
DURATION Mode of study 2 years Virtual and/or
5 O levels subjects including English Language and Mathematics and a National Certificating in Accounting or its equivalent.
2 Years
5 O levels including English and Maths and a National Certificate in Transport and Logistics Management or its equivalent.
2 Years
In person Virtual and/or In person Virtual And/or In person
Tuition fees are: 1. Full Course: ZICCEET members US$80 per module and Non-members US$100 per module. 2. Single module entry: ZICCEET members US$100 per module and Non-members US$120.00 per module. Prospective students should visit ACCETS website: www.accets.org and submit their applications online. Applicants should feel free to contact either of the following persons should they need help in submitting their applications: Juliet Matare:
[email protected] Mobile: +263 772403730 Elisha Tshuma:
[email protected] Mobile: +263 777850251 Alternatively, they can drop an email at:
[email protected].
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SADC REGIONAL CUSTOMS TRANSIT GUARANTEE
SADC The SADC region comprises of 16 Member States and these are Angola, Botswana, Comoros, DRC, Eswatini, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Tanzania, Zambia and Zimbabwe. Member states that are land linked are Botswana, Eswatini, Lesotho, Malawi, Zambia and Zimbabwe. Coastal ones are Angola, DRC, Mozambique, Namibia, South Africa and Tanzania and the Islands are the Comoros, Madagascar, Mauritius and Seychelles. The busiest corridor which is the north-south corridor connects the South African port of Durban to Lusaka (Zambia) and Lubumbashi (DRC) through Johannesburg and Gaborone (Botswana). The corridor branches off from Zimbabwe - Mozambique to Malawi. Background to the SADC Customs Transit Management System The SADC Protocol on Trade (2005) as amended, outlines some of its objectives which are to: further, liberalise intra-regional trade in goods and services. ensure efficient production within the SADC region. create a conducive investment climate and enhance economic development, diversification and industrialisation of the region. Guided by these objectives, Annex IV to the SADC Trade Protocol lays out the general provisions for the movement of transit goods and their related facilities to ensure that transit goods move seamlessly across the region. In compliance with Annex IV, SADC Member States are required to
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commit to: Allow all transit goods including their means of transport (conveyance) to move freely through their territories Ensure equal treatment of goods, people, mail, and means of transport involved in transit operations; and
take out bonds that cover the customs duty that would be payable on their cargo if such cargo were to be entered for home consumption. This is done in each and every Member State that the transit goods pass through. Each member State has its own different requirements for transit traffic traversing their territories. This places a compliance burden on the traders.
Accord transit goods rates that are equivalent to the rates they would give to the traffic originating from their own territory.
The current transit procedure is that the office of commencement checks the goods, approves means of transport, transit documents and affixes customs seals where necessary. The office en route or transit office similarly checks goods, documentation and may affix seals where necessary. It is only when goods have been confirmed to have arrived at the office of destination and when transitors have provided proof that transit cargo in their custody has exited the customs territory, that customs releases traders’ bonds.
The SADC Protocol on Trade, if implemented fully, has the effect of reducing trade barriers through simplification of customs procedures, harmonisation of trade policies and encouragement of fair business practices. It also clearly sets out the institutional framework for implementation of the trade facilitation initiatives. By freeing trade in the region, this creates larger markets, encourages diversification and industrialisation and ultimately boosts regional economic growth. Some progress has been made regarding dismantling tariffs within the SADC Region, however, compared to the rest of the world, SADC still remains far behind on SADC intra-trade. This implies that the challenge of regional integration in trade in goods goes far beyond tariff liberalisation hence the need to implement other trade facilitation initiatives such as the Regional Customs Transit Guarantee (RCTG). Various interventions have been done in the region to ensure that the RCTG is smoothly implemented and the project is at a stage where the instrument is to be piloted and thereafter implemented. These include stakeholder consultation and various capacity building initiatives. Member States with the assistance of SADC Secretariat developed RCTG Regulations and these outline key definitions, how the RCTG process works, key role players and their responsibilities. Difference between Regional Customs Transit Guarantee and Nationally Executed Transit Bonds Nationally Executed Transit Bond System The current transit management system in the SADC region is that traders are required to
Many a time, there are delays in the release of such guarantees and as a result, large sums of money get tied up in the process of issuing guarantees. Traders also face challenges in mobilising huge financial resources so as to obtain the necessary guarantees that cover goods in transit.
The Regional Customs Transit Guarantee (RCTG) System This is a customs transit management system where a single regional guarantee is issued in a Member State. Once approved, the guarantee can be used throughout the corridor and all Member States along that corridor are mandated to mutually recognise that guarantee as if it was issued in their own country. It is mainly different from the currently executed transit bonds in that, it has a regional feature, it is based on a chain of players and the system has a strong player accreditation system. The RCTG allows players to move multiple consignments up to the guarantee limits set. The RCTG can be individual, (once off ) or comprehensive (operator allowed to move multiple consignments on the single guarantee). Article 4 of the SADC Transit Customs Guarantee Regulations defines the structure of the Regional Customs Transit Guarantee as follows: a) The guarantee chain comprises of the Principal Bond Holder (PBH), Designated Representative (DR) and the Guarantor. The PBH ensures that proper documentation and bond is lodged in the country of commencement where they are domiciled, the DR facilitates
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the movement of transit goods in their Member State on behalf of the PBH and the Guarantor has the responsibility of issuing authentic guarantees. These players are jointly and severally liable. b) The guarantee to cover transit goods can be either single or comprehensive and once lodged and accepted by Customs, a Certificate of Guarantee which is accepted by all Member States en route is issued. c) The Guarantee is valid from the date that it is accepted and approved by Customs up to the date when Customs at the Office of destination cancels the certificate of Guarantee upon fulfilment of all obligations by the Principal Bond Holder. d) There is extra-territorial recognition of the single guarantee. Regional Customs Transit Guarantee Benefits The following are the potential benefits that could be derived from the implementation of the SADC RCTG. The list is not exhaustive. a) Reduction of cost of doing business in the region; b) Facilitation of smooth movement of goods; 18
c) Promotion of production of more competitive goods in the region; d) Shorter border waiting times/reduction of border delays; e) Harmonization and simplification of transit procedures; f) Harmonisation and simplification of transit documentation; g) Predictable control procedures based on risk management; h) Secure transportation procedures; i) Fulfilment of commitments under the Trade Agreements namely, EPAs, AfCFTA, and TFTA; j) Removal of NTBs; k) Improved exchange of information and cooperation among transit players along the transit corridors including customs administrations; l) Improved records management and production of accurate regional statistics.
AfCFTA IMPLEMENTATION FROM CHALLENGES COMES OPPORTUNITY In consistent and inadequate freight and logistics have long hindered intra-African trade. Countries face high customs delay periods, shortage of paved roads, portholes upon which freight can be transported and a higher loss of goods due to limited cold chains compared to other regions globally. AfCFTA is designed to address these challenges. African states currently import $36.8 worth of freight or logistics goods from passenger freight and transport to parcel and courier services every year from within and outside the continent. Under AfCFTA that amount is set to swell and African companies are expected to fulfil that demand.
and ports and other means of transport to reach rural communities and bringing then into growing economic mainstreams. B2B logistics which is already a major component of Africa’s logistics economy is expected to dominate the sector in short-to-medium term. African companies spent $2.6 trillion on B2B services in 2015 and are expected to spend another $1 trillion by 2025 and AfCFTA will only accelerate opportunities for companies providing B2B services.
The Forum expects an increase in intra-African freight de- B2C logistics is also expected to increase as mand of 28% translating to additional demand for almost consumer spending rises, e-commerce becomes 2 million trucks to be used primarily for the expected grow more prevalent and urbanization continues. trajectory in trade of automotive parts and pharmaceuticals. Expected for growth shall also be 100,000 rail wagons, 250 aircraft and more than 100 vessels by 2030. Maritime trade is projected to increase from 58 million to 132 million tons by 2030 with the implementation of AfCFTA and the growth in this sector will help in particular, with a projected boom in agro-processing trade caused by AfCFTA. As the largest continent in the world and with the hitherto struggling intra-continental logistics network, the AfCFTA presents a major opportunity to invest in logistics and freight at a growth inflection point. The overwhelming demand and need for logistics services will only increase as the AfCFTA is implemented, intra-African trade increases and more medium-sized enterprises require logistics providers to connect to larger markets. If commodity prices decrease as projected due to removal of trade barriers and import costs, consumption and demand is expected to increase benefitting manufacturers and the mobility sector. Large logistics companies have historically been too expensive for African companies, but we are now seeing the rise of new digital logistics companies that reduce costs and can improve the quality of services while also promoting sustainability. Closing the urban-rural divide will also yield significant opportunities. Rural areas are naturally more reliant on regionally supply chains than urban dwellers but inadequate road infrastructure too often leaves them isolated and economically excluded. Startups have already begun to address these issues, proposing innovative solutions to integrate rural and city markets. Infrastructure gaps, especially those that take a long time to fix such as roads issues have spurred companies to turn to novel solutions including cargo drones, inland waterways
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Implementing safety protocols for dangerous goods -International Cargo Solution In the spectrum of dangerous goods importation and exportation it is a viable conduit to reflect that International Cargo Solutions is on the brink of expansion as they are waiting for approval from CAAZ as a Dangerous Goods (DG) shipper which will result in the end of tumultuous and challenging setbacks in the freight industry. In a statement, the Managing Director of International Cargo Solutions, Tatenda Manyere said the approval of International Cargo Solutions as a Dangerous Goods (DG) shipper is positive and an advantage to the country as it is the only freight company that meets the IATA standards on handling of Dangerous Goods (DG). “In the country we are the only company that meets the requirements for shipping Dangerous and it is a big advantage for the company.” said Mr Manyere. The company has the latest IATA DGR 64th Edition 2023 manual, recognized by airlines worldwide, the IATA Dangerous Goods Regulations (DGR) is the industry standard for shipping dangerous goods by air. It is the most complete, up-to-date and user-friendly reference manual trusted by the industry for over 60 years. Manyere also added that his company ICS) has also been audited and it has qualified to be a dangerous good (DG) shipper and only waiting for the final three assessments by CAAZ. The agency has become the top notch leading airfreight cargo handling and transportation company in Zimbabwe as they only use IATA certified export packaging materials for dangerous goods (UN specific type) and the agency is the only company in Zimbabwe that has a Cargo Operating Manual approved by CAAZ.
Tatenda Manyere
Manyere further explained that, all agencies should have prior knowledge to cargo handling so that in an event of handling of dangerous goods (DG) they are familiar of the precautions to take. “We expect our shippers to know and advise us of the correct and true things they would have packed as it is a requirement to avoid disasters or accidents and abide by regulations of states of origin, transit and destination”, he said 20
To page 21
From page 20 Among other efforts, International Cargo solutions is looking forward to shape the Zimbabwean freight industry to match international standards in handling dangerous (DG) cargo through training and implementing various initiatives such as introduction of manuals. In accordance to IATA the manuals serve the purpose of a global reference for shipping dangerous goods by air and the only standard recognized by the global Airline industry, everything you need to prepare dangerous goods shipments in compliance with international air transport regulations and the industry’s most trustworthy cargo sources to help you classify, pack, mark, label, document shipments of dangerous goods and ensure they are safe to be shipped on board. International Cargo Solutions marketing plan is centered on the advantages of increasing cargo handling efficiencies on airport facilities by raising awareness among the cargo constituents which can be achieved through implementation and enforcement of IATA standards and Laws of the land by the Regulator, CAAZ. Such initiatives by local players like International Cargo Solutions help selling the local airports to air carriers keeping in mind those factors which influence shippers' routing decisions. The ongoing refurbishment and modernization of R.G Mugabe International, Victoria Falls and Joshua Nkomo International Airports are some of the initiatives undertaken by the government to attract more airlines on the Zimbabwe airspace. Well-designed and cost effective cargo facilities and handling service remains a key advantage in highlighting the airport's benefits and attracting additional air service consolidations. All these initiatives help our local airports to become more familiar to regional and global Airlines which also results in attracting Industry Stakeholders participation. However, Tatenda Manyere applauded the construction of cold rooms by Ground handlers at RG Mugabe International Airport as a positive step towards improving service delivery for fresh produce handling to export farmers who are directly working with International Cargo Solutions, hence contributing towards GDP.
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PERISHABLE CARGO
DANGEROUS GOODS
WE ARE EQUIPPED IN HANDLING AND TRANSPORTING : Dangerous Goods, Live Animals, Perishable Cargo, Wet Cargo, Time And Temperature Sensitive Products
GET IT DELIVERED If you can’t deliver, we collect, clear, load and offload 37 Jesmond Road, Ha ield, Harare
rinterna onalcargosolu
[email protected]
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+263 773 407 445 +263 773 370 843
Joint Freight Associations’ Committees Tabled In the year 2022, the Commissioner of Zimra requested each Association among the 5 Customs Clearing & Freight Associations in Zimbabwe through their Chairpersons to provide names of contact persons from each for easy of information dissermination and meetings relating to issues affecting the industry and such persons would act on behalf of their associations.
Batsirayi D Chadzingwa ,ZIMRA Commissioner of Customs and Excise
The function of the Contact Persons Committee(CPC) is to discuss with the Commissioner any issues and complains received from members through their respective Associations and any resolutions that bind the Agents are done at Associations’ Executive Levels. Each Association is granted 3 seats in every meeting held with the Commissioner of Customs and Excise and it is the duty of the respective association to nominate among their member who should attend to represent their respective associations. Additionally, a sub-committee was elected to review the already signed Code of Conduct & Ethics. To date, only 4 among the 5 Associations have signed the Code of Ethics & Conduct whilst the 5th one had just subscribed to it. The list of members nominated to review the Code of Conduct from the 5 Associations which form a Joint Associations Code of Ethics Sub-Committee include : SFAAZ - Mr. A Mtembo, IFFAZIM - Mr. E. Tshuma, ISFAZ - Mr. A. Maumbe, ZIFFA - Mr. G. Chikoore and ZNCEE - Mr. Homela respectively Mr Homela was elected Chairperson of the Joint Associations Code of Ethics Sub-Committee and Mr A. Mtembo was elected Secretary. The Sub-Committee Chairman of the Joint Association’s Code of Ethics and Conduct, Mr Homela confirmed the Code of Ethics document in circulation is still a draft awaiting all stakeholders contributions and comments. He has therefore called apon all legitimate Agents and Association members to submit their concerns so that they are officially captured. “Comments are still welcome because the code is still work in progress”, “This is why it is encouraged for legitimate Agents to go through their respective Associations groups with their concerns, so that they are officially captured”, said Mr. Homela in his presentation to the group of Customs Experts.
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OCEAN FREIGHT :SAILING RATES AND SCHEDULES.CHINA TO BEIRA
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HOW UNIQUE RAIL TRANSPORTATION CAN BE IF PROPERLY UTILIZED
construction of Lion’s Den to Kafue Railway link that will see Zimbabwe having a competitive advantage over this route when complete as it will provide the shortest link for Zambia, DRC and Mozambique.
Rail transportation is especially suited to long distance travel by people and transportation of bulk goods at one go thus pushing down cost of transportation per unit to be quite less compared to other modes of transport. In an era of poor road infrastructure, road congestion, high fuel prices and high border transit charges, rail freight in Zimbabwe seems an obvious mode to turn to more for intermodal container and general bulky cargo deliveries Ironically, it is still a mode of transportation that many freight forwarders and cargo owners find difficult to navigate and make solid decisions especially in the case of NRZ’s incapacitation that can’t offer reliability and convenience to all the longer distance major country routes. In November 2022, Hon Minister of Transport and Infrastructural Development Adv. F.T Mhona when he officially opened the Ministry of Transport and Infrastructural Development Strategic Planning Workshop at Rainbow Hotel in Bulawayo spoke on the bright future that lies ahead of NRZ with the government of Zimbabwe committed to recapitalize the parastatal through partnerships with External Investors and International financial institutions, to boost the carrying capacity of NRZ. Adv. Minister F.T Mhona also signaled the completion of a feasibility study and detailed designs for the
Fundamentally, in the marketplace, whether one is a freight forwarding agent, cargo owner or transport broker, its often very difficult to access rail freight service within preferred routes. The rail system has got its own unique language. The Zimbabwe market is made up of only one main rail freight operating company NRZ, which tend to move trains on behalf of shipping companies or large corporates like Sino and various mining companies. For a typical SME, it’s not easily accessed. So, the default position is to lookout for road transportation. Hence 90% of bulk cargo and intermodal containers in the Zimbabwe are moved by road, whereas if one moves it by rail there’s a 76% cost reduction ln 2021 the NRZ embarked on the restructuring exercise anchoring the 10 years Strategic Plan broken into 3 phases, the Stabilization phase, the Growth phase, and the Expansion aimed at making NRZ a modern and efficient mode of transporter of choice for both bulk passengers and freight as key in the achievement of Vision2030, especially with regards to the attainment of the USD12 billion mining industry.
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To page 27
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The three phases are intertwined spreading over the strategic horizons namely the short-term, medium-term and long-term. They provide cost-cutting measures, debt management, and clearing strategy through NRZ initiatives and Real Estate. The NRZ Year 2021-22 achievements include and not limited to successfully lobbying RBZ to be authorized to purchase fuel in ZWL for their operations, repaired a total of 230 wagons and released into service & Completed refurbishment of 100 Tankers using internally generated funds. NRZ trained a group of security staff from employees who were deemed excess in their departments following the restructuring exercise to curb vandals and thieves who destroyed and stole railway infrastructure worth US$3,6 million in the last five years. The organization successfully entered into partnerships with ZIMASCO for the refurbishment of wagons and locomotives, Strauss for tanks, refurbishment ongoing and 25 tanks repaired are in service now. Another 7 companies engaged for PPP and discussions at various stages. Delivery of the Stone Crushing Plant for the purpose of exploitation of the quarry deposits at Nalatale, Commissioned the Rutenga weighbridge to facilitate weighing of all export traffic to Maputo avoiding over loading which may strain locomotives and damage the track . NRZ managed to reduce its locomotive fuel consumption from the then average of 1,8 million per month to the current level of 1,0 million average per month through the introduction of measures to curtail fuel leakages either through theft or fixed leaking fuel facilities. Completed the renovation of the General Manager’s official residence at a reduced cost compared to the tendered amount through contracting different companies for each job required. Saved two thirds of the initial tendered amount. Traffic Safety Council of Zimbabwe agreed to collaborate with NRZ to address level crossing accidents by revamping signage at these points and Zimbabwe Anti-Corruption Commission assisted in setting up an Integrity Committee. NRZ have so far paid 50% for the first 10 000 concrete sleeper from own resources and to date have received 4000 sleepers, awaiting PSIP funding disbursement to pay balance, also enhanced expenditure control through centralizing authorization of payments. 27
Minister F.T.Mhona
MBUDZI INTERCHANGE CURRENT SETTINGS
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ENGINEERING IN MOTION
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Port of Mtwara
complementing Dar ES Salaam in handling bulky exports
Historically, Mtwara Port has for many years been regarded as a Seasonal Port due to its overreliance on traditional and seasoned cargo such as cashewnut harvest season. In recent years, the government of Tanzania through Tanzania Ports Authority (TPA) has massively invested in capital projects that include construction of new berths and procurement of state of the art machines at the port of Mtwara in a drive to increase the port’s capacity and diversity from seasoned consignments. Initiatives to upgrade the port are already reaping good fruits as Mtwara Port has been capacitated to unlock the economy of Southern regions of Tanzania, neighboring countries of Malawi, Mozambique and Comoros by attracting both traditional and Coal in huge volumes. Until recently, coal has been largely underdeveloped for many years in spite of Tanzania having an estimated 1,5 billion tonnes of reserves which ranks Tanzania as the first country with such huge coal reserves in East Africa. In 2021, the Port of Mtwara handled its first Coal consignment of 33,000 metric tonnes of coal which gave the port an opportunity to gain experience in
handling similar consignments in future. As energy needs in Europe and rest of the world soured in 2022 driven by the turmoil in the global energy market, Tanzania offered the gateway for Europe, Asia and Africa to keep a lid on power prices and ensure energy security. Mtwara Port increased traffic volumes of coal from 33,000 metric tonnes in 2021 to over 1 million tonnes in early 2023 translating to an increase of over 3,000%, surpassing expectations and raising the bar and undoubtedly becoming one of Tanzania’s best performing port. The port is indeed a reliable logistical partner in securing energy needs of not only Tanzania but also those other countries as the cargo exported is destined to many other countries such as India, Egypt, Senegal, Netherlands, Ghana, France, Poland, DRC, Kenya, Spain and Comoros. Tanzania Ports Authority is a parastatal acting under the auspices of the Ministry of Infrastructure Development, that has the responsibility “to manage and operate” the ocean and lake ports of the Republic of Tanzania
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Next issue We hope you like the new format and hopefully there will be a section that is of interest to you in every quarter. Feel free to get involved! To re-iterate, the main sections are. Road Freight Sea Freight
Rail Freight
Trucking & Haulage Sea and Air Ports
Technological Innovation (Transport related)
Exhibitions & Events
Customs Clearance
Industry Services
Cargo Theft Reduction Strategies
Recruitment & Training
Roads Infrastructural Developments If you would like your editorial to feature in our next quarter’s magazine, please contact our editor using the contact details on our CONTENTS section. If you would like to advertise in The Freight & Transport magazine, full details of our rates and technical specifications can be forwarded to yourself by emailing us on
[email protected] . Please email us for a copy. The Freight & Transport magazine is free in Zimbabwe. Also email for a subscription form. Please visit us online at www.edsurgenews.com
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CLEARING AGENTS LOBYING FOR SELF-REGULATION Customs experts in the shipping and logistics sub sector in Zimbabwe is trying to make a case for the industry that once was regarded as the lubricant of the economy to attain self-regulation status but the question is, “Is it really possible and necessary when Zimra has already set its foot, regulating the entire sector by setting codes of practice, industry-based accreditation requirements in order to safeguard revenue leakages. Customs Clearing and Forwarding agents through their individual voluntary associations want to be recognized in the same breath as the fraternity of lawyers, engineers and even accountants who all have been granted self-regulation status. Industry self-regulation is the introduction and adaptation of business practices to meet ethical, professional, social and environmental criteria, with self-imposed standards, guidelines, targets and monitoring systems possibly enforced by endorsed codes of practice, membership of professional and trade associations, and non-regulatory agreements, the latter being sets of principles for action intended to influence the conduct of business, typically based on exhortation with no compliance requirements, and intended to influence both external regulation and self-regulation of the industry. Self-regulation usually originates is large international companies providing leadership to the industry as a whole. The benefits and experience they achieve can be passed on, through trade and professional associations and codes of practice, to smaller companies who might otherwise escape the regulatory net. World Bank studies have revealed that a weak regulatory framework has been the root of the challenges that countries have faced in the transport and logistics service industry. For example, in Greece, multiple administrative agencies that do not interact with each other have created duplication of regulations and resulted in overregulation. In the East Africa Community, due to insufficient regulatory oversight, low skilled operators easily enter the industry with the lack of professionalism, quality, and efficiency of their services. In Nigeria, Customs agents operate only at the downstream sector of the supply chain and they are perceived by the Federal Ministry of Finance of Nigeria as originators of revenue leakages and short collections always result in the clearance process. They are non-compliant to trade rules and they lack professionalism. Minimum
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entry requirement for agents licensing does not qualify them to be called professionals hence becoming a threat if they are to self-regulate. The Industry itself is involved in the movement of goods and services both local and across the borders including processing of Imports and Exports expeditions and collection of duties, taxes and levies from importers on behalf of the government. And it is the security for duty at stake for those goods handled and cleared through clearing agents which pushed the government through Zimra to stamp its foot to immediately regulate the Freight and Shipping Industry because these Agents and Transporters had failed to police themselves. Zimra and various importers have been swindled of millions of dollars yearly by some registered and licensed so called Agents and the trust has already been lost. Millions lost through goods smuggling purportedly to be goods in transit by some members hiding in the name of so called Licensed Clearing Agents. In some sectors of the economy Government may prefer to allow an industry to regulate itself but maintain a watching brief over the effectiveness of self-regulation and be willing to introduce external regulation if necessary. Where there is a mistrust, Government needs to take a more active role in regulating that particular industry, as it evidently cannot be trusted to regulate itself as the case of Customs Clearing Agents in Zimbabwe where there is a huge movement of taxes money involved that is channeled through Clearing Agents acting on behalf of Importers. However, there have been mixed reactions on the subject with some experts welcoming the initiative as a good development for the industry whilst some suggesting each association can just develop its own code and have displinary and grievance procedures incorporated in their constitutions. “In my view there is a cheaper option. Each Association can have its own code and have disciplinary & grievance procedure incorporated in their Constitutions”, said one of the experts whose name has been held for anonymity. Others contributions were centered on additional costs of doing business that could push small play-
From page 32
a Tax Accountant l pay around $500.00 per annum as an individual to get my practicing certificate. This amount is shared between my Tax Association and PAAB. Are we ready for this when we complain about adjustments of agents licensing fees which are far much lower than what Tax Accountants pay”, “Have we done a study on countries that have tried this route and assessed the value added? I know Nigeria tried it. Anyone interested can google and share his or her findings”, said concerned member. “Other Associations can learn from SFAAZ, the pioneer associatiation who successfully developed an excellent Code of Ethical Conduct which is given to every member who joins them and is signed by the senior of the member organization. They vet prospective members and even reject some applications. They also discipline truant members. An alternative option that would save time and costs would therefore have been for others to benchmark with the SFAAF model So in my view, if each Association follows the SFAAZ model in order to counter any allegations of lack of professionalism in the industry”, said one on the members.
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A THANK YOU MESSAGE FROM
THE FREIGHT AND TRANSPORT MAGAZINE Thanks for taking time reading. We hope the new year brings nothing but good things, personally and professionally. The next issue will focus on Customs Clearing and Freight Forwarding and how infrastructural development is aligned to smooth cargo flow. Industry experts swill be expected to share their opinions and recommendations for the good of the entire industry. The Edition shall be printed for the first time! So get in touch if that’s your area of interest. Please keep the great content flowing our way, and we’ll present it to the freight and logistics INDUSTRY, with love The Freight & Transport Industry Suite 10 and 11 7th Floor Mercury House George Silundika House Harare Tel : +242 774 025 Cell : +263 773 182 226 Email:
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Computation of capital gains tax on disposal of specified Assets The Capital Gains Tax Act provides for the levying or charging and collection of capital gains tax in respect of disposal or deemed sale of specified assets. What are specified assets? In terms of the Capital Gains Tax Act specified assets means immovable property or marketable securities which includes bonds that are capable of being sold in a share market or exchange. Calculation of capital gains tax Calculation of capital gains tax shall be calculated in accordance with the capital gains which has accrued or received by any person during any year of assessment applying the rates of tax that are fixed from time to time in terms of the Finance Act.
For marketable securities listed on the stock market, the rate of tax is one comma five percent (1.5%) of the price the security was sold if such security was held for not less than one hundred and eighty days or forty percent of the price at which the security was sold if such security was held for less than one hundred and eighty days from the date of sale. Deductions allowed in determination of capital gain For the purpose of determining capital gains tax on assets acquired from 22 February 2019 and thereafter the following deductions shall be deducted as below: I.
Expenditure or cost of acquisition of the specified asset. Additions, alterations or improvements to the specified assets but not expenditure which is deductible under the Income tax act. Any expenditure directly incurred on the selling of the specified asset. Two and half percent per annum on the purchase price from the date of acquisition to the date of sale. Two and half percent on cost of improvements and additions on the specified asset to the date of sale.
II.
Exemptions from capital gains tax
III.
The following shall be exempted from the charging of capital gains tax “Please not that this is not the full list of exemptions as provided for in the Act“
IV.
a. Amounts received or accrued to certain bodies referred in paragraphs 1, 2 and 3 of the Third schedule to the Income Tax Act such as Local Authorities and other specified bodies. b. Amounts received or accrued on the distribution by the executor of a deceased estate of a specified asset forming part of such estate c. Amounts received by a person on the sale of his/her principal private residence of such person on the date of sale was over the age of 55years. d. Amounts received or accrued on the sale or disposal of any shares or other marketable securities listed on the Victoria-Falls Stock Exchange. e. Amounts received or accrued to a person on the sale of marketable securities which is subject to withholding tax.
V.
Payment of capital gains in foreign currency Please take note that in terms of the Act, any sale of a specified asset that is purported to have been sold for in Zimbabwe dollars shall be presumed that the specified asset was paid for in foreign currency at the USD market valuation and the capital gains tax there on shall be paid in USD accordingly, unless the seller provides documentary proof satisfactory to the Commissioner that the specified asset was actually sold for in Zimbabwe dollars. Vitalis Chakanyuka is a Tax Consultant at FRANTANA CONSULTANCY SERVICES. Email
[email protected]
Rates applicable on capital gains tax For specified assets acquired before the 22nd of February 2019 the rate of tax applicable is 5 cents for each dollar of the gross capital amount or 5% of the selling price. Please note that in respect of these specified assets acquired before 22nd February no deductions shall be effected on the gross capital amount or the selling price of the specific assets. For specified assets acquired on or after 22 February 2019 the rate of tax applicable is 20 cents for each dollar of the capital gain or 20% of the capital gain as determined in accordance with the Capital Gains Tax Act (Chapter23:01).
Vitalis Chakanyuka
Rates on capital gains tax withholding tax
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