Trade Facilitation

Description

Zimbabwe is a landlocked country and therefore has limited water transport services. It has access to the sea through ports in Mozambique and South Africa. According to the World Bank Logistics Performance Index (LPI) (2012) which measures countries’ trade logistics efficiency, Zimbabwe was ranked 103rd out of 155 countries. Its general performance is better than the averages of sub-Saharan Africa and low income group. Although Zimbabwe has higher indices in timeliness and international shipments than the regional average, according to World Bank Doing Business Report (2013), it takes longer time and more cost to export and import than the regional average. It takes 53 days and 71 days to export and import a standard container of goods in Zimbabwe while, the regional averages are almost its half (31 days for export and 28 days for import). The problem lies in the long time to prepare document, which takes 33 and 42 days. Therefore, internal border agency cooperation and formality of documents need to be improved. Moreover, it costs USD 3,765 and USD 5,660 to export and import the container in Rwanda, while the regional averages are USD 2,108 and USD 2,793. Considering that Zimbabwe pays USD 3,000 and USD 4,500 just for inland transportation and handling, it is necessary to improve the quality of logistics services, for which the index was lower than the regional and income level averages.

Logistics Performance Index (LPI): Country Comparison