Congo war hits trade

The wars in the Democratic Republic of Congo (DRC) and Angola have drastically disrupted neighbouring Zambia's trade, industry sources in Lusaka told IRIN on Tuesday. "While Zambia used to export up to 60,000 mt of maize to the DRC two years ago, our current maize exports to that country have now plummeted to about 15,000 mt," a source in the Zambian Association of Chambers of Commerce and Industry said. The source added that the war has affected Zambian industries ranging from the sugar to the petroleum industries. "These wars have also affected our trade with Burundi, Rwanda and Uganda," said the source, who added that it is important that peace is secured in the DRC and Angola as soon as possible. The source said Zambian companies whose businesses have been affected by the war have diversified into other activities. "Although no massive job losses have occurred, it is possible that a few hundred jobs might have been lost when some companies were forced to close." Zambia, according to the source, has not redirected its trade southwards with Zimbabwe or South Africa, for example, because of South Africa's protectionist policies on trade with its neighbours. "South Africa, as the leader of the five-nation South African Customs Union (SACU), has not shown seriousness in opening up its market for trade with Zambia," the source said. Zambia has a capacity to export 150,000 mt of beef to SACU countries annually, the source said. "However, SACU has rejected this proposal and instead proposed that we only export 1,500 mt into the Union countries." SACU is made up of South Africa, Botswana, Namibia, Lesotho and Swaziland. "South Africa currently exports about US $500 million worth of goods to Zambia as opposed to its imports of Zambian goods of about US $10 million," said the source. The source added that Zambian exports to South Africa and its SACU partners could increase to about US $150 million annually if free trade was agreed.