Inefficiency at one of the border posts between South Africa and Mozambique is a key constraint to accelerated growth of trade and investment between the two countries, the Maputo Corridor Links Initiative (MCLI) said on Thursday.
MCLI chief operating officer Barbara Mommen said delays in the movement of cargo through the Lebombo/Ressano Garcia border post was costly and affected growth of trade.
”Delays in the movement of cargo across the border are costly to business, and adversely affect the efficiency and growth of trade.
”The lack of a 24-hour border post plays a significant role in this constraint,” she said.
However, the issue was being addressed jointly by the SA and Mozambican governments with a view to implementing a 24-hour one-stop border post, which would be operational by 2010.
”MCLI is delighted with this development as it is an issue for which it has been lobbying for some time with considerable energy and focus,” said Mommen.
She noted that efficient operation of the facility, which would have separate clearing facilities for cargo and passengers, would result in the acceleration of investment and trade between the two countries.
”Mozambique is certainly a good prospect for South African investors,” said Mommen.
However, constraints that existed relating to doing business in Mozambique included high costs [of services and goods] in areas outside Maputo. This was due to inadequate infrastructure.
Mommen also said there were considerable bureaucratic delays, complex legislation, high taxes, corruption and lack of locally available skills.
”The Mozambican government is working towards modernising its legal and bureaucratic processes to facilitate business development but this is a complex issue and will take time,” she said.
Figures released by the Mozambican Investment Promotion Centre (CPI) indicated that SA’s investment in Mozambique accounted for 58% of all investment in 2005.
In 2006, the value of South African investment in Mozambique was estimated at $60-million.
Figures for 2007 were not available.
Mommen said one of the mega projects planned for Mozambique that included SA investors, was the $5-billion oil refinery project in the northern port of Nacala.
A consortium of SA and Mozambican investors owned 30% of the project, while the other 70% was a direct investment by the United States.
A Mozambican and SA partnership will also shortly begin work on a R4-billion project to supply inland SA with competitively priced imported petroleum products through the 440km-long pipeline from Matola near Maputo to Kendal in Mpumalanga. – Sapa