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The causes of high intra-regional road freight rates for food and commodities in Southern Africa

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  • Thando S Vilakazi

Abstract

This paper focuses on key areas for reducing transport costs in Southern Africa emerging from recent research on cross-border freight between Malawi, Mozambique, South Africa, Zambia and Zimbabwe. We consider the impact of competition, border delays and lack of return loads on transport rates which could be reduced significantly through increased availability of return loads for transporters, linked to growing industrial capacity in each country. Furthermore, increased competition and reducing delays for transporters contributed to a large reduction in transport rates between Lusaka and Johannesburg, with similar effects from Malawi. Margins charged in refrigerated transport are high due to low levels of rivalry and lack of return loads. Measures to reduce border constraints and enable greater rivalry between transporters from different countries could have a downward effect on transport rates in the region which are shown to be above benchmarks for efficient transport.

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  • Thando S Vilakazi, 2018. "The causes of high intra-regional road freight rates for food and commodities in Southern Africa," Development Southern Africa, Taylor & Francis Journals, vol. 35(3), pages 388-403, May.
    • Handle: RePEc:taf:deveza:v:35:y:2018:i:3:p:388-403
    DOI: 10.1080/0376835X.2018.1456905
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    Cited by:

    1. Anthony Black & Lawrence Edwards & Ruth Gorven & Willard Mapulanga, 2020. "Agro-processing, value chains, and regional integration in Southern Africa," WIDER Working Paper Series wp-2020-36, World Institute for Development Economic Research (UNU-WIDER).
    2. Leon Gwaka & Job Dubihlela, 2020. "The Resilience of Smallholder Livestock Farmers in Sub-Saharan Africa and the Risks Imbedded in Rural Livestock Systems," Agriculture, MDPI, vol. 10(7), pages 1-11, July.
    3. Grace Nsomba & Thando Vilakazi, 2021. "Barriers to entry and the role of African multinational corporations: Entrants in intermediate industrial products (inputs into construction)," WIDER Working Paper Series wp-2021-143, World Institute for Development Economic Research (UNU-WIDER).
    4. Ebenezer Olamide & Kanayo Ogujiuba & Andrew Maredza, 2022. "Exchange Rate Volatility, Inflation and Economic Growth in Developing Countries: Panel Data Approach for SADC," Economies, MDPI, vol. 10(3), pages 1-19, March.
    5. Anthony Black & Lawrence Edwards & Faizel Ismail & Brian Makundi & Mike Morris, 2019. "Spreading the gains?: Prospects and policies for the development of regional value chains in Southern Africa," WIDER Working Paper Series wp-2019-48, World Institute for Development Economic Research (UNU-WIDER).

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