Zam­bia is bleed­ing USD3.5mn in daily tax rev­enue due to pon­toon break­down at Kazun­gula bor­der post - Mu­tati

Zambian Business Times - - FRONT PAGE -

Africa’s sec­ond largest cop­per pro­ducer Zam­bia is los­ing USD3.5mn in fore­gone tax re­vue at Kazun­gula bor­der post due to the break­down of the sec­ond pon­toon. This was es­tab­lished when the Min­is­ter of Works and Sup­ply Honor­able Felix Mu­tati vis­ited the bor­der post con­nect­ing Zam­bia (at Kazun­gula) to Botswana (at Kasane)...

The Honor­able Min­is­ter ex­pressed dis­ap­point­ment that the En­gi­neer­ing Ser­vices Cor­po­ra­tion – ESCO a State Owned En­ter­prise – SOE had not ad­dressed the break­down with ur­gency com­pared to the im­pact this dis­rup­tion has on trade flows. The min­is­ter has di­rected ESCO man­age­ment to deal with the is­sue within a week. Chal­lenges at the Kazun­gula bor­der post have deep­ened fol­low­ing a rise in wa­ter lev­els in the Zam­bezi river and this has caused op­er­a­tional chal­lenges on equip­ment man­aged by the ESCO. “We heard ear­lier from the sta­tion man­ager of the Zam­bia Rev­enue Author­ity – ZRA that on a daily ba­sis Zam­bia is los­ing close to ZMW35mn. This means that the econ­omy is los­ing that ex­tent of money and when you com­pare to the spare parts that are be­ing pro­cured for only USD30,000 surely this shouldn’t be an is­sue,” Min­is­ter of Works and Sup­ply Honor­able Mu­tati said. You are only given a week in which the sec­ond pon­toon should be op­er­a­tional be­cause we can­not con­tinue los­ing money, he said. The Kazun­gula – Kasane route has been dubbed one of the SADCs busiest cor­ri­dors fa­cil­i­tat­ing trade flows and dis­rup­tion of this sort has rev­enue gen­er­at­ing im­pli­ca­tions. Ear­lier last week, Dae­woo the con­struc­tion com­pany con­tracted to com­plete the Kazun­gula bridge re­vealed that the bridge project would de­lay by 7 months ow­ing to lo­gis­ti­cal is­sues. The bridge was es­ti­mated to com­plete in March 2019 but will now com­plete in Oc­to­ber 2019. The bridge will pro­vide so­lu­tions to the capped and con­strained traf­fic flow pro­vided by pon­toons which can only carry pre­scribed traf­fic weight at a par­tic­u­lar time. The Road De­vel­op­ment Agency ex­pressed sat­is­fac­tion with the qual­ity of works as con­firmed by Cor­po­rate Com­mu­ni­ca­tions Di­rec­tor Ma­suzyo Ndhlovu on 26 April at the bor­der post.

Newspapers in English

Newspapers from Zambia

© PressReader. All rights reserved.