The UNITED Nations Economic Commission for Africa (UNECA) executive secretary, Vera Songwe, has said that Africa has all the pre-requisites for rapid economic transformation in the next decade. “But the importance of digitalisation and the digital economy in driving growth and structural transformation, as well as optimising fiscal performance in Africa, cannot be overstated,” she said.

This optimism is reflected in the massive potential of the Zambian logistics sector. The industry is primed to increase revenue from opportunities that arise out of digital transformation.

Says Mupota Muchelemba, Managing Director of Seidor Zambia, “Zambia is a land-locked country, rich in natural resources, with good road infrastructure, so it is not surprising that the number of freight management and transportation businesses is growing. Now it’s time for companies to optimise their supply chains by investing in their business processes through the leveraging of digitalised information.”

Most local distribution businesses primarily transport goods for mining companies, agricultural products or general freight. In addition, there is a need for the transport of imported or exported goods for use locally or in neighbouring countries.

This leads to a lot of moving parts that have to be optimised. Companies, for example, need to have a healthy fleet, which has to be close enough to where goods need to be collected and delivered and to beat the competition in terms of rates.

“Many businesses still manage these complexities using multiple small systems,” explains Muchelemba. “For example, one system may look after contracts while another logs and tracks goods. Some companies are known to just have a billing system in place and use, for example, a GPS tracking system.

This means that the vast majority of the local transport and logistics companies in Zambia are still relying on paper-based and/or manual systems. Just by their nature, this is open to inefficiencies. Three or four disconnected systems with different people using different spreadsheets leads to things falling through the cracks. This has the knock-on effect of a loss of trust by clients and potential financial losses.”

At a recent event hosted at the Seidor Zambia office in Lusaka, Jason Kazilimani, the CEO of KPMG and President of the Zambia Institute of Chartered Accountants (ZICA), spoke about how important it is that Zambian industry transforms in order for it to move with the times and remain sustainable.

The growing opportunity (or threat) of globalisation also needs to be considered, with many international businesses wanting to expand into Africa. These competitors will enter the Zambia marketplace with effective digital systems in place already, making them a more competitive option than local suppliers.

It also then becomes essential for local businesses to control costs, to keep their prices down and offer market-related fees. It therefore becomes a priority to know where costs are coming from and whether saving is possible.

To ensure growth, the local industry needs to remain competitive by embracing digital transformation.

Says Muchelemba, “There are very few systems that can effectively track and manage all the parts of a distribution business. Not many ERP systems can effectively combine all of the financial and operational aspects of logistics businesses into one system. SAP Business One, combined with the specially developed logistics functionality of the Transport One add-on, has solid local case studies behind it.”

Zambian logistics businesses that use SAP Business One such as Juba Transport and AM Motors, have clearly shown how profitable it can be to move to the right integrated system. Both have been able to automate workflows, increase efficiency and get an accurate real-time overview as well as valuable insights into their businesses.

Explains Muchelemba, “Previously, Juba Transport used three different systems to manage the finance, transport operations and maintenance parts of their business. This involved a lot of paperwork and expense. Now they have access to real-time information. They know when permits need to be renewed, they can schedule maintenance of vehicles and can track all expenses, the progress of deliveries and more.”

As logistics is a very specialised industry, it is important to choose the right partner to help you invest in digitalising your business.

The right partner is one who has experience in your industry and already understands the challenges of your type of business. It is not enough for a service provider to know the software system; they need to understand your industry in order to properly hold your hand and help you make the most of your investment. It is a big investment and you risk the success of your project if you don’t have the right partner.

African Union Commissioner for Trade Albert Mudenda Muchanga says free trade across Africa’s borders will begin by June 2020.

He said following the ratification of the instrument by member states, the African Union was targeting June 2020 to begin the free trade.

He said the there were immense opportunities that the African Continental Free Trade Area(AfCFTA) brings.

He said African countries have an opportunity to industrialize and develop their manufacturing sector.

He said Africa should trade increasingly with itself and add value to its products.

He was speaking at the World Economic Forum (WRF)in Capetown, South Africa.

The debate was covered by CNN program, the Market Place.

Mr. Muchanga said the AfCFTA is now operational and the first free trade should begin in June 2020.

This is according to a statement issued by First Secretary for Press and Tourism at the Zambian Mission in Addis Ababa Mrs. Inutu Mupango Mwanza.

Zambia and Sweden’s IVL Environmental Research Institute have agreed to work together to develop a series of water and environmental related projects which will be funded and implemented through the Water Resources Management Authority (WARMA).

And world-renowned water management body, Stockholm International Water Institute (SIWI), has pledged to collaborate with Zambia so that it can contribute to the country’s efforts in dealing with water challenges.

SIWI has also indicated that it would explore possibilities of collaborating with Zambia and the Global Water Partnership (GWP) to access funding for implementation of programmes in capacity building and other water resource management areas.

This came to light last week during two separate meetings between then Permanent Secretary for Water Development, Sanitation and Environmental Protection Dr. Ed Chomba, and IVL Environmental Research Institute Assistant Director and Head of Team Water, Mr Mikael Olshammar, and SIWI Director for the Africa Regional Centre, Mr. Anton Earle.
The meetings took place on the side lines of the 2019 World Water Week which was held in Stockholm. The World Water Week, organised by SIWI, is a leading annual global event addressing water issues. The meetings were organised by the Embassy of Zambia in Stockholm.
At the meeting with SIWI, Dr. Chomba pointed out that the Zambian Government was keen to ensure that sanitation was given the attention it deserved as opposed to the neglect it suffered in the past. The first ever National Sanitation Summit in Lusaka which brought together delegates from across the world in November, 2018, is the culmination of the increased attention by government to the sector.

Dr. Chomba bemoaned the effects of climate change which he said have led to depletion of water resources in several parts of the world.
He pointed out that before the creation of WARMA in 2011, water in Zambia was viewed as a social good rather than an economic commodity. Zambia’s water sector was operating on the 1949 Act before the creation of the Authority.

The Permanent Secretary noted that the creation of WARMA was well intended as it was meant to ensure that there was not only management of the water resource but also equal distribution of the commodity to users.
He called on the world to look at water as an important natural resource just as oil was considered to be in the 20th Century.

In response, Mr. Earle noted that latest developments in Zambia were encouraging particularly with the Water Act of 2011 and the creation of WARMA which put the country in a strong position to effectively face various water challenges.

He advised that there was need for investment in water infrastructure especially with the below-average rainfall that was being experienced due to climate change.
He further advised Zambia to take advantage of SIWI and highlight strides that the country was making towards climate change through platforms such as the annual Stockholm World Water Week or the World Water Forum scheduled for Senegal in March, 2021.
The forum presents an opportunity for the country to expose its efforts in combating the effects of climate change in order to receive the necessary consideration from donors.

The parties agreed that at the invitation of the Permanent Secretary, Mr. Earle will travel to Zambia with a view to explore areas of collaboration with the MWDSEP, in order to establish partnership and support. SIWI will then involve the Swedish International Development Aid (SIDA) accordingly.
The Ministry will also invite SIWI to support in organising the 2nd National Sanitation Summit to be hosted by the MWDSEP in 2020.
And on the agreement to work with IVL Environmental Research Institute to develop water and environmental related projects, Dr. Chomba said it was important for WARMA and IVL to sign memoranda of understanding in order to enhance capacity in the Zambian institution.
The Permanent Secretary noted that necessary laws were in place in Zambia but that the country lacked capacity to adequately implement the existing pieces of legislation.

Dr. Chomba pointed out that Government would be happy to see IVL establish offices in Zambia and assured that he would ensure that office accommodation was provided for the institution.
He further requested for financing for WARMA, particularly that which could be channelled towards institutional support for capacity building.
And at the same meeting, IVL indicated that it wanted to make a positive impact in Africa especially were the issue of raising capacity was concerned.

Mr. Olshammar pointed out that there were various opportunities in research collaboration between the two countries and that IVL could also assist in waste water recycling in Zambia.

He said IVL has done some research into the control of invasive water species such as the Water Hyacinth, which has invaded a lot of water bodies in Zambia and that the institution was ready to work with the MWDSEP and share the knowledge.

The institution has discovered that the hyacinth also acted as a good feed for Tilapia fish which was one of the predominant fish in Zambia.

On the use of hyacinth as feed for Tilapia, the Permanent Secretary illustrated the possibility of creating a value chain, which could include setting up of cooperatives for women derived from WARMA’s Water Users Association (WUAs) to establish ventures in fish farming.
Dr. Chomba observed that this would, in turn, result in job creation and contribute to addressing Zambia’s 200, 000 tonne fish deficit.

Mr. Olshammar noted that it was possible for Zambia to access seed funding from SIDA through the suggested project of empowering women through fish farming activities. He said IVL will render its support so that Zambia could access the funding.
The two parties resolved that a letter of intent would be submitted to SIDA by MWDSEP through IVL for seed funding in respect of the fish farming project.
Zambia will also send a proposal for mitigation of the hyacinth and waste water recycling in order to access funding from the African Water facility of the African Development Bank (AfDB).
The IVL delegation also included Dr. Magnus Karlsson – Associate Partner, and Mr. Musbau Bello, who is Project Manager.

Issued by:
Nicky Shabolyo
Counsellor
ZAMBIAN EMBASSY IN SWEDEN