Perhaps no single organisation has made such an effective mark on streamlining East African Community (EAC) cross-border trade than TradeMark Africa (TMA). In its annual report for 2013-2014, TMA explains their success

Investments in trade infrastructure as well as the dismantling of bureaucratic and procedural barriers to economic integration, is positioning the EAC region as the destination of choice for doing some business.

At the centre of all this improvement is TMA who have regional offices in all five EAC countries with Nairobi hosting its headquarters.

The report is titled ‘Partnering for Prosperity in East Africa’ and TMA says this continued partnership with the East African governments has resulted in great progress being made.

Introduction of the One Stop Border Posts (OSBP) systen across the region has increased physical access to markets for both formal and informal traders.

Pilot operations at the Kobero/Kabanga between Tanzania and Burundi borders already indicates a two-day reduction in transit times at Kabanga for cargo trucks, as well as reduction in tedious formalities for traders.

Previously excessive paperwork at the border posts caused costly delays which in turn kept the costs of doing business consistently high.

Frank Matsaert, the TMA Chief Executive Officer highlighted some key successes.

There has been a reduction of average time to clear goods at Mombasa port and transport them to Kampala to four days.

The number of customs declarations have been slashed by 90% leading to an increase in trade volumes. For example, fuel imports into Uganda have increased from 32.1 million litres to 108 million litres due to this single measure.

“The results presented in this Annual Report point to an ever improving trade environment which is expected to spur investments and ultimately benefit the citizens of East Africa.”

“TMA is playing an important role as a catalyst in mobilizing around $600 million at Dar es Salaam Port to improve its performance through better infrastructure and port operations. Our partnerships at both Mombasa and Dar ports involve an innovative approach mixing both hardware and software solutions,” he told East African Business Week.

Matsaert said small and informal sectors may not feel the benefits yet but efforts are being made to educate them on these new systems.

“We have made strides to support informal trade across borders; this is often the lifeline of most rural livelihoods. Since these traders do not use available formal systems and structures for their transactions, it is difficult for regional trade policy initiatives to have any significant impact on their lives.

“There is therefore a continued effort to ensure these economically disadvantaged populations have access to markets,” he said.

Matsaert said TMA is helping in the formation of cooperatives for informal women traders which has enabled them educate their members to access finance as a group, and engage formally with border officials.

The Uganda Minister for Works and Transport, John Byabagambi expressed appreciation for TMA work in East Africa.

“We are very pleased with our partnership with TMA who have supported some of the Ministry’s trade programs including construction of Ntungamo-Mirama Hills Road between Uganda and Rwanda.”

“This is expected to facilitate improved access to goods and passenger transport services and reduce transport costs along the Kampala-Kigali route. TMA is also supporting construction of key One Stop Border Posts between Uganda and her neighbours Kenya, Rwanda and Tanzania,” he said.

The report details TMA’s vision of improving interconnectedness in the region through trade by highlighting some of the successful projects they have supported.

Notable among these is the recent signing of the Mombasa Port Community Charter, witnessed by Kenya’s President Uhuru Kenyatta. Also in attendence were 25 government and private sector agencies who are committed to support the initiative that will increase efficiency at the Mombasa Port and the Northern Corridor traffic flow.

The Permanent Secretary for the Uganda Ministry of East African Community Affairs, Edith Mwanje said, “I am glad that TMA has focused on women informal traders who are responsible for up to 60% of all intra-East African trade.

“Through the East Africa Initiative for the Advancement of Women (EASSI), TMA has intervened to provide informal women traders increased access to valuable information and to nurture women associations and lobby groups to advocate for a better trading environment for them,” she said.

However the Annual Report indicates the challenges that the organization faced in the last year especially from external factors such as increased threat of violence and terrorism.

Allen Asiimwe, the country manager TMA, during the same action said they were still facing challenges like terrorism that scares away investors and sterilizes trade and internal conflicts in Sudan.

Source: East African Business Week

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.