Trade and Agribusiness Competitiveness

Component 2: Promote Trade and Agribusiness Competitiveness

Objectives

The objective of this component is to enable the key stakeholders in Zambia’s agribusiness sector and those benefiting from Component 1 to take advantage of an enhanced business environment and opportunities emerging from the African Continental Free Trade Area (AfCFTA).

This component seeks to improve the trade pathways, quality infrastructure, and business enabling environment i.e. meso-level sectoral activities critical for firms and farmers and in line with AfCFTA protocols ratified by Zambia. Special focus would be placed on small agribusiness enterprises and women traders to ensure that the project addresses key constraints and barriers they face to grow and trade which includes:

Lack of information and requirements on export trade procedures.
Customs and bureaucratic procedures are making it difficult for the majority of traders and private firms to undertake cross border business.
Regulatory systems not supportive to small enterprises and traders’ business growth.
Finance and payment mechanisms
Product and Price Barriers – Agribusiness firms struggle to export most of their products due to product quality, lack of understanding on specification’s in the international markets and how to address them.
Non-tariff barriers.
Transportation: costs, frequency, and insecurity; inadequate logistics
Lack of planning and organization as firm and trader level.
Inadequate R&D activities; and
Inadequate export marketing activities.

Unlocking these bottlenecks presents a huge opportunity in promoting trade, agribusiness competitiveness and growth which will ultimately create jobs for the country.

Interventions Under Component 2

Interventions would focus on Micro, Small, Medium Enterprises (MSMEs) and women traders and also on streamlining procedures that reduce post-harvest losses for perishables thereby fostering climate adaptation. Component 2 is aligned to the Global Challenge Research Fund (GCRF) Pillars 1 (Responding Food Insecurity- through reduced food losses, increased market access) and Pillar 2 (Protecting People and preserving Jobs) and will comprise of the following activities:

(i) Implementing trade commitments: ZATP-II will support implementation of global (World Trade Organization [WTO]), continental (AfCFTA), and regional (corridor specific) commitments and domestic regulations. Three specific focus areas are:

(a) implementing Zambia’s AfCFTA strategy and action plan including developing capacities required within MCTI;

(b) supporting the National Trade Facilitation Committee and Corridor committees; and

(ii) Improving trade efficiency: Support would be provided through MCTI to Zambia’s trade agencies to implement an automated, coordinated and risk-based approach to trade in goods. This would include:

(a) Coordinated Border Management (CBM);

(b) Risk Management; and

ICT systems for Zambia’s key trade agencies aiming to connect to the single window for back-end processing for approvals, registrations, licensing, inspection, sampling, fee collection, tracking and tracing, lab sampling and Phyto. Systems deployed would utilize climate friendly equipment to the extent possible; and
Wide area network connectivity at HQ for connection to the national single window and at selected borders to connect to ASYCUDA World.

(iii) Strengthen Business Regulation, Investment Promotion, NQI and SPS capacities and facilities: The project will enhance the capacities and facilities for Zambia’s key business regulations, investment promotion agencies as well as trade related agencies involved in agricultural trade to reduce the burden of business compliance, attract, retain and service investments, increase exports and strengthen the development of agribusiness value chains. Specifically, it would support:

(i) capacity building of business regulatory and investment policy and promotion agencies;

(ii) repurposing or refurbishing diagnostic facilities in Lusaka and rendering them efficient and climate resilient;

(iii) setting up of a national accreditation body and laboratory accreditation for selected testing at ZCSA and other selected agencies;

(iv) equipment and supplies to support inspection and sampling including that are that are energy efficient and climate resilient; and

(v) enabling Zambia’s trade agencies to expand stakeholder engagement, consultation and awareness including for women and MSMEs that would include the establishment of joint resource centers.