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LOBITO CORRIDOR TRADE FACILITATION PROJECT


Overview

  • Reference: P-Z1-KF0-027
  • Approval date: 04/12/2017
  • Start date: 04/12/2018
  • Appraisal Date: 25/02/2017
  • Status: ApprovedAPVD
  • Implementing Agency: MINISTRY OF COMMERCE, TRADE and INDUSTRY (MCTI) in Zambia AND MINISTRY OF COMMER
  • Location: LOBITO CORRIDOR

Description

The Project The proposed project will comprise three components, as follows:- Component I: Capacity Building for Trade Facilitation and Corridor Development: - This component will facilitate the development of trade facilitation instruments along the Lobito Corridor, build institutional capacity among Corridor States for coordinated planning of corridor development and promote dialogue on among key stakeholders. Key deliverables under this component will include: "Implementation of a harmonized simplified trade regime for small scale traders, 70% of whom are women; "Needs assessment study for a OSBP and border market at Jimbe border between Angola and Zambia "Establishment of a one-stop-shop for trade and business facilitation in Northwestern Province; "Deployment of mobile labs to facilitate product standards compliance testing for frequently traded products "Streamlining and harmonization of trade facilitation instruments on transit and border procedures "TA to Ministry of Transport to establish of National Corridor Coordination Secretariat "TA to establish a Lobito Corridor Management Institution (CMI) "Deployment of Liaison Expert to SADC Secretariat to facilitate corridor coordination, convening of Corridor States and provide technical advice on harmonization activities

Component II: Technical Assistance for Value Chains and Economic Clusters Development: This Component will focus on supporting value chains in Agri-business and construction sub-sectors through deployment of technical assistance (TA) to provide a range of capacity building initiatives, strengthening of stakeholder dialogue and promotion of business linkages. Key deliverables in Zambia will include: "Creation of linkages between SMEs and established firms in the mining and retail value chains. The following anchor firms have expressed interest to participate in the linkages arrangements with SMEs: Kansachi FQM Mines, Barrick Lumwana Mine; and Shoprite; "Capacity building of SMEs in the selected value chains to comply with product market standards; "Support to farmers cooperatives with simple technologies for value addition; "TA to Citizens Economic Empowerment Commission (CEEC) to design an incubation program for its industrial yards; "Provide TA to strengthen business and commercial capabilities of cooperatives in selected agri-business and construction value chains; "Develop customized skills development programme for SME contractors in the construction sector in collaboration with Solwezi Trades School; "Establishment of cross-border business platform to facilitate business linkages and cross-border trade, in collaboration with business apex institutions

In Angola the key deliverables will include:

"Strength business and commercial capabilities of cooperatives "Provide TA to strengthen the Agrarian Development Institute services to increase farmers' productivity "Facilitate linkages with Agromerca and other domestic and regional formal markets "Conduct studies and assessments to inform the design of the planned ADB-funded Lobito Corridor Agricul Agriculture Project, which will scale up the interventions

Component III: Project Management will support recruitment of project management team, monitoring activities, and project audit.

12.Gender will be mainstreamed through inclusion of women cooperatives (such as Nsabo Yetu women Cooperative in Zambia and ASSOMEHUA women cooperative in Angola), development of gender guidelines in the operationalization of Corridor Management institutions, and inclusion of gender targets in training.


Rationale

The LCTF Project will contribute to Integrate Africa High-5 through capacity building on Trade facilitation and enhancing the capacity of SMEs to participate in value chains and cross-border trade. The Project will address coordination failures in corridor development; develop trade facilitation instruments, and support value chains and economic clusters development by creating business viable linkages between SMEs and large firms and improving the business facilitation ecosystem. This will contribute towards the realization of domestic and cross-border trade growth and improved livelihoods of communities along the Corridor.The project has 3components

(i) Capacity Building for Trade Facilitation and Corridor Coordination and

(ii) Technical Assistance for Value Chains and Economic Clusters Development and

(iii) Project Management. The project is strongly aligned with the Integrate Africa High-5 and the Regional Integration Strategy Paper (RISP, 2011 -2015)2 for Southern Africa, in particular Pillar 2 which targets support for Trade and Transport Facilitation. The project is also in line with the CSPs for Angola and Zambia. Pillar II of Angola's CSP (2017-2021) 'support to sustainable infrastructure development', identifies "the construction of railway and road links between Angola and Zambia, accompanied by efficient trade facilitation measures, in order to harness the full potential of the Lobito Corridor and promote regional integration" as a priority. Similarly, Pillar I of Zambia CSP (2017-2021), 'support to infrastructure development', which will support

(i) rehabilitating and expanding infrastructure networks,

(ii) strengthening institutions and institutional capacity in the transport sector, and

(iii) facilitating trade and transport development.


Benefits

The objective of the Project is to strengthen institutional capacity to plan and coordinate corridor development activities and develop harmonized trade facilitation instruments, and to enhance SME productivity and competitiveness to establish linkages with established firms and markets in targeted value chains along the Corridor.

The project will benefit the following directo beneficiaries 1. SMEs through the creation of Simplief Trade Regime 2. Over 400 cooperative members (3 cooperatives in Zambia and 3 in Angola) through training and technical assistance & creation of business linkages with large value chain players in the mining, agriculture and retail sectors 3. Government departments responsible for corridor development and coordination 4. Private sector Apex bodies who will benefit from enhanced awarenes of cross-border and domestic market opportunities


Key contacts

DUBE Memory - PITD2


Costs

Finance source Amount
ADFUAC 6,000,000
TotalUAC 6,000,000