The Tanzania Ports Authority (TPA) has reduced wharfage rates for containerized cargo heading for Zambia by more than 50%, promising to dramatically lower the cost of doing business in Zambia. The Zambian Ministry of Transport and Logistics confirmed this great development in a statement made on April 6, 2024.
The reduction in port costs at Tanzania’s major ports, notably Dar es Salaam, Tanga, and Mtwara, is an important step toward increasing trade between the two countries. Zambian enterprises will profit from better efficiency and decreased overall costs as shipping goods through Tanzanian ports becomes more affordable. This can lead to more competitive export prices and, ultimately, cheaper prices for imported goods reaching Zambian consumers.
Zambia’s Transport and Logistics Minister, Frank Tayali, hailed the decision by TPA as a positive outcome of President Hakainde Hichilema’s focus on economic diplomacy. This targeted approach to fostering regional economic partnerships appears to be yielding results, creating a more favorable environment for Zambian businesses to engage in international trade.
Minister Tayali urged the Zambian business community to seize this opportunity and leverage the reduced port charges to expand their operations. The cost savings can be reinvested in growing businesses, potentially leading to increased production, job creation, and overall economic growth within Zambia.
The reduced port charges are likely to have a ripple effect beyond Zambia’s borders. As a landlocked nation, Zambia relies heavily on efficient and cost-effective access to seaports for its international trade. By making Dar es Salaam and other Tanzanian ports more attractive options, this move has the potential to increase overall trade volumes flowing through the region. This could benefit both Tanzania, through increased port usage fees, and Zambia, through a more vibrant trading environment
The decision by TPA also highlights the growing economic cooperation between Zambia and Tanzania. By working together to streamline trade procedures and reduce costs, both nations stand to gain. This collaborative approach paves the way for further economic integration within the Southern African Development Community (SADC) region.
Encouraging examples of how regional cooperation can help all parties involved include the decrease of port taxes. Although the potential for growth is evident, it is yet to be seen how Zambian businesses can take advantage of this platform. More dialogue and cooperation between Tanzania and Zambia, together with similar efforts across the SADC, might foster a more prosperous and integrated economic environment for all participants.
