Lack of skills and capacity among clearing and freight forwarding agents has been blamed for trade hurdles across the East African region, a new survey shows.
The survey by TradeMark Africa (TMA) established that 477 clearing agents in the region had not been trained on improving trade logistics.
This means that freight forwarding firms continue to incur costs such as fines imposed when clearing agents make errors on systems.
The TMA survey conducted between 2011 and 2014 estimated that companies could save Sh38,500 annually if they employ trained clearing agents.
TMA chief executive Frank Matsaert said business prosperity is achieved when there is a trade flow.
“By training key people in the freight forwarding business, we are helping move goods quicker, save time and money and help the region develop,” he said.
He said the survey was based on the premise that freight forwarders and clearing agents lacked necessary skills and capacity in clearing cargo at border points which resulted to an increase in cargo clearance costs and cargo release times.
It was implemented by the Federation of East African Freight Forwarders Associations (FEAFFA) in conjunction with the East Africa Revenue Authorities (EARA).
A total of 4,023 out of 4,500 freight forwarders and clearing agents were trained during the programme that sought to seal some skills gaps.
The highest number of graduates in the programme were from Kenya, 1,665, while Tanzania had 1,218. Uganda, Rwanda and Burundi had 717; 299 and 164 graduates respectively.
The survey projected an 84 per cent growth on the average number of graduates per year under the programme; from 367 in 2011 to 678 in 2014 before TMA funding began.
Efficient flow of cross-border trade relies on a range of skilled service providers working together effectively, including shipping lines, port terminal operators, customs officials, operators of off-dock container yards, land transport agents, and clearing and forwarding agents.
Source: Business Daily
Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark Africa.
