Transport and trade routes are believed to be major infection conduits and present a significant threat to the entire East Africa region, disrupting health, the economy, and regional and national economic supply chains. Governments have responded by introducing important and essential containment measures that must be implemented on the main trade corridors to make them safe, allow goods to keep moving, and to save lives. Without the ability to continue to implement these measures, the risk of border closures, truck driver stigmatisation and escalating disputes among neighbouring countries remains looming. Malaba and Busia One Stop Border Posts (OSBPs) are the busiest inland entry ports on the Northern Corridor and handle over 95% of cargo destined to Uganda, and transit cargo to Rwanda, Burundi, Democratic Republic of Congo (DRC) and South Sudan. Trade facilitation initiatives by TradeMark Africa (TMA) and other development partners through construction of the OSBPs have greatly improved infrastructural development and coordination of border agencies. This has resulted in faster clearance since all regulatory agencies required for clearance of goods sit under one roof, reducing turn-around time for traders and more importantly lowering cost of doing business. Traffic has increased from 1,500 trucks per day to an average of 3,000 trucks both inbound and outbound at Busia and Malaba OSBPs and border clearance time has dropped substantially. With the spread of the Covid-19 pandemic in the region, the smooth flow of cargo at the border crossing had been greatly disrupted.  Requirements by the Government of Uganda for all...

Rwanda’s small trucking industry hasn’t had much to shout about recently, unless it was to complain about interminable roadside delays due to bureaucracy, corruption and paperwork. Until now. Some neat diplomatic footwork with neighbouring Tanzania has given Rwandan truckers some good news in an industry where time is money, costs are high, and margins small and the playing field tilted towards the regional giants and their huge trucking sectors. “Yes, some good news for a change,” says Theodore Murenzi, head of the Rwanda Truckers Association. “Tanzania has dropped a road toll which penalized Rwandan trucks on the central corridor. It’s not 100% good news, but it’s a real start.” A study into the competitiveness of Rwanda’s road freight industry highlighted what Rwandan truckers had long complained about – Tanzania charged Rwandan trucks a $500 transit toll yet Rwanda charged Tanzanian registered trucks only $152, putting Rwanda’s drivers at a $348 disadvantage every return trip and adding to already high costs. Such bureaucratic hurdles to free trade are known as Non Tariff Barriers (NTBs). The EAC is committed to eliminating them altogether, but the process is laborious and the barriers cemented in protectionism. “We registered this as an NTB at the level of the EAC, but the harmonization of the road toll at EAC level is not decided,” says Vincent Safari, head of the National Monitoring Committee on NTBs. “But the study was evidence-based, factual and detailed and we were confident it would succeed, somehow.” After validation of the findings of...

Whenever I talk or write about East African integration I use this picture of three boys sharing a lollipop. I don’t know where the photo came from or who the boys are, but I do know that it speaks volumes about the way trade could lift millions out of poverty. These three little boys in Kigali are sharing a lollipop. They lick it in turns. The lollipop is imported, so 45% of its cost is due to transport and allied costs. It might have been made in Kenya or Tanzania or even further afield, and it has travelled thousands of kilometres and several borders. So whichever of the boys bought that treat, he’s paying part of the freight clearance charges, handling charges, insurance, fuel costs and the salary of the trucker who got it to the Rwandan capital. It’s no wonder that the boys cannot afford to buy their own lollipops but have to share one. Transport costs in East Africa are among the highest in the world. This is largely due to infrastructure and regulatory constraints but the major reasons for the high costs are policy, legal and regulatory constraints, not infrastructure. It’s not only the slow ports or bad roads that up the price, its old policy and legal habits and slow border crossings. It takes 28 days and $600 to move a 40-foot container from the port of Shanghai, China to Mombasa, Kenya. It can take almost the same amount of time for the same container to...

An innovative training program for clearing agents is growing a new breed of professionals to spur trade and prosperity in East Africa. “Where you see trade grow you see prosperity take root. By training the key people in the freight forwarding business, we are helping move goods quicker, save time and money and help the region develop” said Silas Kanamugire of TradeMark Africa (TMA). Run by the East Africa regional freight forwarding governing body (FEAFFA), the program is quickly churning out a fresh generation of professionally trained freight forwarders to quickly expand the ever-growing potential for trade within the East African region. With TradeMark Africa (TMA)’s support, FEAFFA aims to transform the job of freight clearing and forwarding into a recognized profession and to standardize and regulate this key position to streamline the process of doing business in the five-nation bloc. “My clients are now satisfied with the fast clearance of their goods. We are now not seen as unreliable or barriers to the trade process, but rather partners who can help grow the prosperity of this region”, Said Xavery Komba, CEO of Victorius Tanzania Ltd, one of the trained agents. “With more than 40% of business costs accruing to transport and logistics, there is increasing appreciation of the importance of the sector in international trade. I am pleased this program will raise professional standards in the industry with the aim of increasing trade and prosperity in the region,” said the Federation’s Regional Executive Officer, John Mathenge. Up until recently,...

DAR ES SALAAM – Tanzania has embarked on a major shake of its ports, railway and road networks to handle surging cargo traffic caused by its own economic boom and similar expansions in neighbouring countries. “We’ve set specific timeline targets for every sector, port, road, rail – the lot. And if these targets are not met, then heads will roll, including mine, and I am rather keen to keep it where it is,” Tanzanian Transport Minister, Harrirson Mwakyembe said. The Programme, called Big Results Now, marks a determination by the government and its development partners to modernise its infrastructure to cope with current and projected demand as East African economies grow at rates that would make the United States envious. Tanzania is growing by around eight percent a year and similar rates are being enjoyed by all its East African Community (EAC) partners, driving demand for construction and consumer materials from Dar es Salaam to the shores of Lake Kivu. In contrast to previous plans, the Minister said that targets set by the National Key Result Area (NKRA) of the plan would be regularly scrutinized because “periodic measurement of performance is of critical importance, as is adherence to targets.” This will not be a grandiose five-year-plan to gather dust and be replaced by another. “An efficient transport sector is essential for the sustainable development of any country, so ability to keep track of level performance cannot be over-emphasised,” he said. The plan, built with assistance from donors, including TradeMark Africa,...