Cross-Border Traders Report Strong First Quarter on Back of Stable Kwacha

Cross-border traders recorded a positive performance in the first quarter, buoyed by a stable kwacha, according to the Southern Africa Cross Border Traders Association (SACBTA).

Speaking in an interview on Friday, SACBTA Secretary General Jacob Makambwe said the currency's stability had cushioned traders despite Ebola-related restrictions in the Democratic Republic of Congo.

He said the kwacha holding between K17 and K19 to the US dollar had given traders greater predictability when importing goods. Those bringing in goods from abroad were benefiting from the favourable exchange rate, he added, describing the currency's resilience as a source of business predictability.

Makambwe said the quarter had not been without difficulty. An Ebola outbreak in the DRC had disrupted trade, restricting the movement of cross-border traders who typically cross at Mokambo, Sakanya or Kasumbalesa.

Despite these challenges, he said overall trade had fared well. Traders dealing with Botswana, Namibia and other countries had performed strongly, with only trade involving South Africa proving weaker.

Makambwe illustrated the benefit of the stable exchange rate by pointing to the cost of importing goods such as vehicles, noting that ordering a car at a rate of around K17 or K18 to the dollar meant securing it at a favourable price.

He said the association was still compiling its quarterly bulletin, which would set out detailed figures on the sector's performance, and undertook to share the statistics in due course.