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Mahagi OSBP Phase II Completed, Phase III Launched to Revolutionise Trade Across the Northern Corridor

Mahagi, Democratic Republic of Congo (DRC), 28 November 2024:
The Democratic Republic of Congo (DRC) and TradeMark Africa (TMA) yesterday announced the completion of Phase II of the Mahagi One Stop Border Post (OSBP) Project, marked by the technical handover event, alongside the commencement of Phase III. Funded by UK International Development, Finland, and the Netherlands, the Mahagi OSBP is transforming cross-border trade along the Northern Corridor, a critical route connecting Eastern and Central Africa. The official handover to the government of DRC is scheduled for Q1 of 2025.

Phase II, funded by Finland, delivered essential infrastructure, including modern administrative buildings, water drilling facilities, a retaining wall for truck parking, and improved water, sanitation, and public lighting systems. These upgrades build on the foundation laid in Phase I, co-financed by the Netherlands and UK International Development which expanded and paved the parking area, constructed a warehouse and gatehouse, installed fencing, and deployed CCTV to enhance security. Together, these measures are set to significantly reduce border crossing times, streamline trade flows, and address delays along one of Africa’s most critical trade corridors.

Designed with cross-border traders in mind, particularly small-scale operators, and exporters of coffee and cocoa, the OSBP addresses the needs of those who depend on Mahagi for their livelihoods. Despite the progress of Phase II, gaps remain in transport connectivity, customs integration, and accessibility for smaller traders.

Phase III, funded by UK International Development, seeks to close these gaps. Planned improvements include designing and paving of the access roads to the cross-border market, rehabilitating the Nyibola River bridge, and constructing a modern cross-border market and staff accommodation. Digital upgrades, such as improvements to the Customs Management System (ASYCUDA World) and the Electronic Cargo Tracking System (ECTS), will enhance trade monitoring, compliance, revenue collection and operational efficiency.

Additionally, the USAID-funded ERRA programme will further equip the OSBP with furniture and ICT systems, ensuring its full operational potential into an OSBP is realised. The Mahagi OSBP is a critical investment in Africa’s trade infrastructure, promising to formalise trade, reduce costs, support inclusive economic growth across the region and strengthen the DRC regional integration.

The Government of the DRC highlighted the project’s significance, noting its alignment with the country’s ambition to modernise trade infrastructure. Speaking at the technical handover of Phase II and the launch of Phase III, Executive Secretary of the Provincial Government, Dieudonné Ngadjole, said: “The Mahagi OSBP exemplifies the government’s commitment to creating a modern and inclusive trade environment that benefits traders, businesses, and communities. By reducing costs and accelerating trade, the OSBP is transforming Mahagi into a hub of opportunity for sustainable development and economic growth.”

The Directorate General of Customs and Excise (DGDA), Head of office in Mahagi, Ezechiel Kasereka said: “Borders are not just crossing points; they are essential connections for communities and businesses that rely on trade. The improvements to the Mahagi OSBP reflect our commitment to creating opportunities for growth and seamless trade. Through our partnership with TMA, we have modernised infrastructure and systems to make trade faster, fairer, and more efficient. We call on all members of the operational order to make good use of the structures built to ensure their durability. Phase III will build on this progress, empowering traders, especially small-scale ones, to move goods with ease, confidence, and dignity, fostering prosperity across the region.”

Speaking on behalf of the DRC Programme, Maxime Hekima, TMA Programme Manager, said: “The Mahagi OSBP is more than a border facility. It is a driver of growth and opportunity. By addressing critical gaps and unlocking untapped potential, this initiative is set to transform trade along the Northern Corridor. With the launch of Phase III, we are building on this vision by delivering infrastructure and digital systems that will increase trade volumes, reduce transaction costs, and support sustainable and inclusive trade practices. This phase will create a model for efficient, resilient, and future-ready trade facilitation in the DRC and the East Africa region.”

 

The Mahagi OSBP serves as a cornerstone for formalising trade and expanding market access in the region. It tackles enduring obstacles such as excessive transit costs, inadequate infrastructure, and inefficiencies caused by manual processes. The integration of a cross-border market will bring small-scale traders, particularly women, into the formal trade ecosystem, equipping them with facilities and training to enhance their participation in regional trade.

Projections indicate that by 2025, trade volumes at Mahagi will rise by 25%, accompanied by significant cost reductions for traders. Enhanced connectivity, modernised systems, and upgraded infrastructure position Mahagi as a central hub in the regional trade network, driving prosperity for businesses and communities alike.

The success of the Mahagi OSB demonstrates the importance of partnerships in overcoming systemic trade barriers. Backed by development partners including the Netherlands, Finland, UK International Development, and USAID, the project exemplifies a shared commitment to creating efficient, inclusive, and sustainable trade frameworks. It demonstrates how coordinated investments in infrastructure and capacity-building can deliver measurable economic benefits for the region.