Towards the Integration of Markets: Competition in Road Transportation of Perishable Goods between Malawi, South Africa, Zambia, and Zimbabwe

WIDER Working Paper No. 2017/49

CCRED Working Paper No. 2017/5

32 Pages Posted: 10 Mar 2017

See all articles by Thando Vilakazi

Thando Vilakazi

Centre for Competition, Regulation & Economic Development (CCRED)

Anthea Paelo

Centre for Competition, Regulation & Economic Development (CCRED)

Date Written: March 2017

Abstract

Rapid urbanization and rising income levels in Southern Africa have increased the consumption of perishable and processed food products. This paper relies primarily on firm-level interview data to assess competition and bottlenecks in transporting time-sensitive perishable products across borders between Harare, Johannesburg, Lilongwe, and Lusaka. High transport prices in 2015 — almost double the benchmark rates applied and rates for transportation of commodities — are partly explained by concentration in Malawi, Zambia, and Zimbabwe, and lack of return loads to Johannesburg. Rates could be significantly reduced through a platform for coordinating access to return loads, reducing delays at borders, and effectively implementing preclearance procedures.

Keywords: Road Transport, Perishable Goods, Cross-Border Transport, Competition, Southern Africa

JEL Classification: D40, F15, L1, L50, L91, L92

Suggested Citation

Vilakazi, Thando and Paelo, Anthea, Towards the Integration of Markets: Competition in Road Transportation of Perishable Goods between Malawi, South Africa, Zambia, and Zimbabwe (March 2017). WIDER Working Paper No. 2017/49, CCRED Working Paper No. 2017/5, Available at SSRN: https://ssrn.com/abstract=2929911 or http://dx.doi.org/10.2139/ssrn.2929911

Thando Vilakazi (Contact Author)

Centre for Competition, Regulation & Economic Development (CCRED) ( email )

6 Sturdee Ave
Johannesburg, GP, 2196
South Africa

Anthea Paelo

Centre for Competition, Regulation & Economic Development (CCRED) ( email )

5 Sturdee Ave
Johannesburg, GP, 2196
South Africa

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