Imagine cross-border trade as a highway, goods as vehicles, and customs procedures as toll booths. The more toll booths there are—and the slower they operate—the more congested the highway becomes. Zimbabwe's path to trade facilitation involves dismantling unnecessary "toll booths" to allow goods to move faster.
The World Customs Organization (WCO) has partnered with the Zimbabwe Revenue Authority (ZIMRA) to launch a two-year cooperation program aimed at helping Zimbabwe more effectively implement the World Trade Organization's (WTO) Trade Facilitation Agreement (TFA). This initiative seeks to streamline the country's trade arteries, with financial backing from the UK's HM Revenue and Customs (HMRC) and technical support from the United Nations Conference on Trade and Development (UNCTAD).
Trade Facilitation: Beyond Speed
Trade facilitation encompasses more than just faster customs clearance. It's a comprehensive system involving simplified procedures, increased transparency, and better inter-agency coordination. Even with rapid customs processing, constantly changing regulations or cumbersome approval processes can hinder true trade efficiency. The TFA addresses these issues through measures designed to reduce trade costs, improve efficiency, and promote global trade growth.
Zimbabwe's Acceleration Plan
The WCO-Zimbabwe cooperation program follows a three-phase approach: diagnosis, planning, and implementation.
- Diagnosis: WCO experts conducted in-depth consultations with ZIMRA, various government ministries, and private sector representatives to identify implementation challenges.
- Planning: Building on diagnostic findings and UNCTAD research, the WCO developed a detailed action plan covering risk management, information publication, post-clearance audits, and transit freedom.
- Implementation: The program will roll out over two years through customized modules from WCO's Mercator Program, providing tailored technical assistance.
Four Key Areas for Trade Transformation
The program focuses on critical areas to boost Zimbabwe's trade efficiency:
- Risk Management: Establishing scientific assessment systems to focus resources on high-risk goods while minimizing interference with low-risk shipments.
- Information Publication: Enhancing transparency through improved mechanisms for disseminating customs policies and procedures.
- Post-Clearance Audits: Strengthening capabilities to verify cleared goods' documentation and detect compliance issues.
- Transit Freedom: Improving conditions for transit transport—particularly crucial for this landlocked nation—to reduce trade costs and enhance regional competitiveness.
Coordinating Through the National Committee
The program will also support Zimbabwe's National Trade Facilitation Committee (NTFC), a multi-stakeholder body mandated by TFA Article 23.1 to coordinate reforms across government agencies and private sector representatives. WCO's assistance aims to strengthen the NTFC's operations and foster collaboration among stakeholders.
International Cooperation Paves the Way
The initiative's success depends on continued collaboration between WCO, HMRC, UNCTAD, and Zimbabwean authorities. This ambitious program represents a significant step in Zimbabwe's trade facilitation journey, with potential benefits extending beyond national borders to contribute to more efficient, sustainable global trade.
Zimbabwe's experience offers valuable lessons for other developing countries undertaking similar reforms, demonstrating that comprehensive trade facilitation requires sustained commitment and international support.