With perfect timing, our feature on Trade Wars (see page ????) is exemplified, writes Gazette Correspondent DOUGLAS RASBASH
The recent decision by Zambia to temporarily close its borders with the Democratic Republic of Congo (DRC) has spotlighted a disturbing trend: the weaponisation of trade. This decision, which could severely impact exports from Africa’s largest copper producer, underscores a dangerous precedent where economic leverage is used as a political tool.
Zambia’s move comes in the wake of heightened tensions following the DRC’s ban on certain Zambian beverage imports. In an era where economic interdependence is meant to foster cooperation and stability, the resort to trade restrictions as a means of political pressure is a troubling development.
Chipoka Mulenga, Zambia’s Minister of Commerce, Trade and Industry, stated that the closure is a precautionary measure to avoid a “build-up of trucks” but the timing and context suggest a deeper motive linked to the ongoing trade dispute.
In 2022, the Democratic Republic of the Congo exported $16.3B in refined copper – accounting for 23% of GDP. The main destinations of the DRC’s exports of refined copper were China ($6.72B), Tanzania ($1.17B), Singapore ($1.1B), Hong Kong ($1.06B), and the United Arab Emirates ($1.02B). Copper logistics is vital to world economics as copper is one of the main materials used in the ITC sector. The ramifications of Zambia’s action will be worldwide.
Landlocked nations
Moreover, the impact of such trade barriers extends beyond the immediate economic concerns. Africa, with more landlocked countries than any other continent, relies heavily on regional cooperation for its economic vitality.
In this interconnected network, landlocked nations like Zambia are inextricably linked with their neighbours for access to ports and markets. The DRC’s actions and Zambia’s response reveal how fragile this system can be when political and economic grievances surface.
Both Zambia and the DRC produce copper and both countries depend on their neighbours to provide export routes for the copper. The banning of DRC copper trade also impacts Botswana, Angola, Mozambique, Tanzania, Zimbabwe and South Africa who all help to transport copper from both countries to varying degrees and will lose out because of Zambia’s unilateral decision.
A small example is that copper transit contributes significantly to the toll income on the Kazungula Bridge. If DRC copper cannot pass through Zambia, it also cannot pass through Botswana.
Trade wars and economic sanctions can have devastating effects on regional stability, particularly in areas already burdened by economic challenges and infrastructural constraints. The closure of borders can lead to delays, increased costs and disruptions in supply chains, which ultimately harm ordinary citizens and businesses more than the intended political targets.
As African nations grapple with these complex issues, it is crucial to emphasise the need for constructive dialogue and diplomatic engagement. Rather than resorting to trade barriers, countries should seek collaborative solutions that address grievances while minimising harm to the broader regional economy.
This approach would not only safeguard economic interests but also reinforce the spirit of cooperation and integration that is vital for Africa’s development.
SADC Summit
This week, as the Southern African Development Community (SADC) summit convenes in Harare, it is imperative that the Zambia-DRC trade dispute be addressed. The summit presents an opportunity for regional leaders to discuss and resolve such issues through diplomatic channels, fostering stability and cooperation across the region.
The Zambia-DRC situation serves as a stark reminder of the perils of weaponising trade. It underscores the necessity for stronger regional frameworks that can mediate disputes and foster mutual economic interests. In the long run, true progress in Africa will depend on building robust, cooperative relationships rather than allowing trade to become a pawn in political struggles.