An international research firm believes that recent strategic investments in border infrastructure, particularly the Kazungula Bridge, alongside enhancements in customs operations, have elevated Botswana’s attractiveness as a regional land-linked logistics hub.
US-based BMI-FitchSolutions notes that Botswana’s improving ranking in the World Bank’s Logistics Performance Index (LPI) and the BMI Trade Procedures & Governance (TPG) index highlights the country’s growing importance as a viable and efficient trade route alternative to Zimbabwe’s congested Beitbridge.
BMI notes that the implementation of advanced Customs Management Systems and the automation of data exchange have reduced both costs and transit times. Additionally, strengthened transport infrastructure links with Zambia, Angola, and Tanzania will further reinforce Botswana’s role in Southern Africa’s trade and logistics landscape.
It says Botswana has improved its border infrastructure and customs processes to boost its role in the North-South trade corridor of Southern Africa. |The Kazungula Bridge, launched in mid-2021, has been pivotal in this transformation,” says BMI.
The bridge replaced an old ferry system, speeding up trade and reducing congestion at Beitbridge, thus strengthening Botswana’s position as a strategic trade hub in Africa.
BMI points out that Botswana’s commitment to bolstering its trade capabilities is demonstrated by the substantial US$ 259.3 million investment it has made towards the Kazungula Bridge construction. It says by 2023, Martins Drift and the Kazungula Bridge had become Botswana’s main border posts, managing 83.0 percent of its border trade, with Kazungula accounting for the majority.
It says despite congestion at the smaller Martins Drift’s single-lane bridge, there is a positive trend in border efficiency, propelled by government-run projects improving infrastructure. Meanwhile, Zimbabwe’s Beitbridge border post – despite being the busiest in the region and a crucial conduit for North-South trade – is losing competitiveness due to congestion, onerous bureaucratic red tape and infrastructure inefficiencies.
“Highlighting Botswana’s relative outperformance in logistics and trade efficiency, in the Q124 BMI Trade Procedures & Governance Index, Zimbabwe ranked in a low 29th position regionally while Botswana ranked in a high third place out of 49 Sub-Saharan African (SSA) markets,” BMI says.
It says the infrastructure improvements have not only strengthened Botswana’s appeal as a transit hub but have also broadened the supply chain alternatives for Southern Africa. According to BMI, the Copper Belt, straddling the southern Democratic Republic of the Congo and northern Zambia, benefits from this development, now enjoying more efficient transport connections to ports in South Africa and Namibia. It says the collective effect of these strategic investments is establishing Botswana as an attractive and efficient freight transport corridor, offering advantages to its neighbouring countries as well as the wider Southern African region.
BMI says Botswana has seen strong performance improvement over the past decade, swinging from underperforming the SSA (Sub Sahara Africa) region across key components of the LPI by 8.9 percent on average in 2014 to surpassing the regional average by 39.7 percent in 2023. It says this significant enhancement has been propelled by advancements in both hard and soft infrastructure at the country’s various border posts.
BMI says the continued modernisation efforts of the Botswana Unified Revenue Service (BURS) are exemplified by the successful implementation of a Customs Management System. This initiative, BMI says, combined with the automated data exchange with South Africa and Zambia, has significantly reduced transit times from 36 hours to just two. It notes that these advancements, including the introduction of new monitoring systems, are streamlining processes, and reinforcing regulatory compliance.
BMI says such measures highlight Botswana’s dedication to improving its trade efficiency. “As a burgeoning participant in the north-south trade corridor, Botswana offers swift and efficient transit routes for logistics supply chains within the Southern African Development Community, supporting not only regional but also domestic growth,” says BMI.
