WIDER Working Paper 2017/46 Understanding intra-regional transport Competition in road transportation between Malawi, Mozambique, South Africa, Zambia, and Zimbabwe Thando Vilakazi and Anthea Paelo* March 2017 Abstract: Efficient transport links are critical to enhancing the integration of markets in Southern Africa. This paper assesses the structure of markets, competition, and prices and costs of road transportation between urban hubs in Malawi, Mozambique, South Africa, Zambia, and Zimbabwe. Key findings are that certain routes, such as that between Lusaka and Johannesburg, have become more competitive over time and relative to benchmarks due to the availability of loads in each direction, improved efficiencies, and greater competitive rivalry between trucking firms from different countries. However, border delays and control of access to loads by large brokers continue to negatively affect competition and efficiency. Keywords: cross-border logistics, road transportation, Southern Africa, competition, regulation, regional integration JEL classification: D40, F15, L1, L50, L91, L92 Acknowledgements: Support for this research, which was conducted by the Centre for Competition, Regulation and Economic Development (CCRED) at the University of Johannesburg (South Africa), was provided by the United Nations University World Institute for Development Economics Research (UNU-WIDER). * Both authors: Centre for Competition, Regulation and Economic Development (CCRED), corresponding author:
[email protected]. This study has been prepared within the UNU-WIDER project on ‘Regional growth and development in Southern Africa’. Copyright © UNU-WIDER 2017 Information and requests:
[email protected] ISSN 1798-7237 ISBN 978-92-9256-270-0 Typescript prepared by Joseph Laredo. The United Nations University World Institute for Development Economics Research provides economic analysis and policy advice with the aim of promoting sustainable and equitable development.