Zambia’s government has taken harsh measures against importers and exporters who disobey laws favouring local carriers when moving products across the nation’s roads.
By taking this action, the Transportation of Heavy and Bulk Commodities by Road (Reservation) Regulations, 2021—a regulation under the Citizens Economic Empowerment Act, 2006 (Act No. 9 of 2006)—will be enforced.
The government expressed worry that corporations had routinely ignored the law by preferring foreign transporters over Zambian ones.
Section 3 (1) of the Act explicitly specifies that “any person who intends to transport a commodity by road shall give preference to a local road transporter in accordance with these Regulations.” This rule affects a wide range of enterprises involved in the import and export processes, including producers, manufacturers, logistics companies, clearing and forwarding companies, and oil marketing companies. The rule also covers the transfer of goods to a company’s own premises.
For exports, the regulations become even more specific. Section 4 mandates that “a person who intends to export a commodity referred to in the Schedule, From the Republic to another country, shall ensure that at least fifty percent of the commodity is transported by a local road transporter.” This ensures that a significant portion of export-related transportation business goes to Zambian companies.
The ministry in charge of implementing these restrictions has issued a strong warning to all enterprises involved in Zambia’s import and export activity.
Failure to comply with the law will result in sanctions and legal action against individuals found to have violated the restrictions. The Ministry underscores its willingness to collaborate with law enforcement agencies to ensure that these measures are adequately enforced.
This enforcement action is driven by the government’s desire to prioritize Zambian businesses in the transportation sector.
The Ministry has taken concrete steps to achieve this goal, including training authorized officers to effectively enforce the Act and ensure that contracts for transporting heavy and bulk goods by road are awarded to local companies.
The Ministry welcomes collaboration with all transportation companies operating in Zambia.
They encourage companies to reach out to the Ministry if they face any difficulties complying with the regulations or witness any instances of non-compliance by exporters or importers. This collaborative approach is crucial for ensuring the successful implementation of these regulations.
The ultimate goal of these initiatives is to provide Zambian businesses operating in the transportation industry more leverage.
The government intends to promote economic growth in the nation and present chances for Zambian companies to prosper by allocating a sizeable share of transportation business to local operators. This change in policy could strengthen the local economy, generate jobs, and advance the transportation sector in Zambia as a whole.
It remains to be seen how effectively these regulations will be enforced and what the long-term impact will be on the transportation sector.
However, the government’s commitment to supporting local businesses is a clear signal of its intent to empower Zambians and foster economic growth within the country.
