South Africa’s retailers are likely to benefit most from a soon to be constructed $262-million road in Zambia.

The development of the project is expected to make movement of goods and services within Zambia and between neighbouring countries, thereby stimulating regional trade.

The Development Bank of Southern Africa (DBSA), which is funding the Zambian government to build the road says the deal is all about facilitating regional integration on the continent.

Zambia shares borders with Malawi, Botswana, Angola, Tanzania, Mozambique, Zimbabwe and the DRC. The road project will open up Zambia’s western Mtwara and Nacala regional corridors, which link the country to neighbouring states.

A number of SA’s top retailers operate in Zambia and other neighbouring countries.  Pick n Pay, Shoprite and Massmart, through its Game franchise, have a presence in Zambia, while telecommunications company MTN also has a footprint in the region.

Pick  n Pay says the road construction will enable the group to expand in the increasingly attractive southern African market.  It plans to open seven stores in Zambia over the next five years.

Lack of modern infrastructure is an impediment to trade and regional integration in Africa, and up to $93-billion a year will be needed to upgrade existing infrastructure.

Source: Business Day