Zambia Country Profile

The overall goal of the United States Agency for International Development (USAID) Southern Africa Trade Hub (SATH) is to increase international competitiveness, intra-regional trade and food security in the Southern Africa region. With a team of long term regional and international experts based in Gaborone, Botswana, SATH delivers targeted technical assistance to governments, the private sector and civil society organizations in support of advancing regional integration and increasing the trade capacity of selected value chains within Southern Africa.

While the majority of SATH's activities are regional in nature, some activities specifically target Zambia as a direct beneficiary. Through various regional and cross-cutting initiatives, SATH is working with Zambia specifically within the context of regional agricultural value chain initiatives, trade facilitation and support for Zambian exporters under the United States (US) African Growth and Opportunities Act (AGOA). Zambia also stands to benefit significantly from SATH's support for regional integration through the Southern African Development Community (SADC).

Coordinated Border Management (CBM): Efficient border management requires effective coordination between all relevant government agencies including customs and private sector agents involved in cross border trade. The CBM program aims to reduce border crossing times and costs through the establishment of public-private joint border committees and action plans to address delays. The program in particular targets the Feed the Future (FTF) countries of Malawi, Zambia and Mozambique and SATH is currently implementing this program at these Zambian borders: Nakonde, Kasumulu and Kasumbalesa.

Corridor Management Institutions (CMIs): Experience has demonstrated that corridors with CMIs are able to effectively monitor corridor performance and address non-tariff barriers (NTBs) along the corridor in a proactive manner. SATH has successfully established a CMI along the Dar es Salaam Corridor which encompasses Tanzania, Zambia and the Democratic Republic of the Congo (DRC) and continues to provide input for the development of self-financing initiatives. Moving forward, SATH will provide technical input for the development of CMIs on the Beira and Nacala Corridors serving SATH's FTF focus countries, including Zambia.

National Single Window: SATH is working throughout the region to facilitate the introduction of National Single Windows to facilitate trade throughout the region and internationally. SATH has held preliminary discussions with the Zambia Revenue Authority and will continue to work with Zambia to support the development of this powerful trade facilitation tool.

Customs Connectivity: Increasing customs connectivity has substantial potential to streamline procedures and lower transport times. SATH is currently working throughout the region on customs connectivity issues and in particular will work with the Dar Corridor to facilitate the development and implementation of customs connectivity between Tanzania and Zambia at their common border of Tunduma/Nakonde.

e-Certificate of Origin: Currently, the SADC Certificate of Origin is issued manually, which causes significant delays and costs in transactions. In 2011, SATH trained customs and private sector personnel from throughout the region, including Zambia, to develop an electronic certificate (e-Certificate). This year, SATH is working to assist the piloting of the e-Certificate throughout the region.

Increasing the Capacity for Clean Energy Regulation and Planning: SATH is collaborating with regional energy organizations to increase capacity of regional regulators and energy policy makers to enhance the development of clean energy in the SADC region. In March, SATH hosted a renewable energy training program in Zambia in conjunction with the Regional Electricity Regulators Association of Southern Africa (RERA) and members of Zambia's Energy Regulatory Board. SATH is currently working with Zambia to develop a consultancy on Feed in Tariffs which will allow Independent Power Producers in clean energy to provide energy to the national electricity grid.

Buyer/Seller Missions – Value Chains: In 2012, SATH will undertake a buyer/seller mission to Zambia which will include seed and other input suppliers as well as commodity buyers. The seed suppliers will be able to explore new markets for their seed as well as respond to variety demands from the commodity buyers. The buyers will identify sources for specific products and are introduced to commercial producers, smallholder producer organizations and traders with the capacity to supply produce.

NAMPO Harvest Day: SATH works with local service providers in Zambia to promote participation at the NAMPO Agricultural Harvest Show in South Africa. Zambia producers' attendance of the biggest agricultural trade show in Southern Africa alongside counterparts from neighboring countries promotes trade and technology interchange within the region.

Investment Promotion – Grain Warehousing: Zambia will be the pilot for an inventory of regional crop storage facilities which will assess not only physical infrastructure but also management capacity; both of which are key elements to the development of certification programs for Warehouse Receipt Systems. The purpose of the study is to identify investment and trade opportunities for new warehousing, refurbishment of existing facilities and the implementation of warehouse management systems. These opportunities will lead to trade and investment missions from the region and the US.

Introduction of Genetically Modified (GM) and Conventional Certified Cottonseed through Partnership with National Farming Unions: In Zambia, SATH will build the capacity of the Cotton Development Trust (CDT) to facilitate the introduction of GM cotton trials in Zambia. SATH will support the Cotton Association of Zambia (CAZ) so that it can run a GM outreach program targeting smallholder farmers, policy makers and the general public. Workshops will be held with a range of industry stakeholders, including firms that may wish to submit proposals to commence GM trials. SATH will explore the possibility of helping Zambian cotton farmers to improve access to certified cottonseed.

AGOA Resource Center: SATH is working with USAID/Zambia and the American Chamber of Commerce (AmCham) on implementing an AGOA Resource Center in Zambia. The Resource Center will serve as the primary private sector contact point for AGOA and a repository of AGOA information. The center will improve the quality and quantity of information for potential Zambian exporters, and will be a primary point of contact between the Zambian private sector and United States Government agencies engaged in the promotion and support of the AGOA initiative.