Category: Poverty

Licking poverty in East Africa – the lollipop example

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...

New breed of freight professionals spur trade

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,...

The Busia border can be a contentious place

It’s a Friday afternoon at Busia border between Uganda and Kenya. Ugandan immigration staffs are busy clearing travellers when a tall young man marches to the counter and demands an entry stamp in his South Sudanese passport. The immigration officer has a number of queries before he can clear him, and the impatient young man starts getting angry and belligerent. Kenya has cleared his exit and he doesn’t see why the Ugandans should waste his time. The immigration officers enlist the help of police to overpower the young man and escort him back to the Kenyan side. Ugandan and Kenyan officers examine the case, and compare notes and finally give him clearance to travel to Kampala. The Ugandan officer in charge of immigration, Margaret Obong, regrets the amount of time lost on such individual cases when immigration officers of both countries walk across to compare notes and meet with their counterparts. This time-consuming exercise will be dramatically reduced when a One Stop Border Post (OSBP) becomes operational. This innovation is going up in many parts of East Africa to speed human and goods traffic, save time and money, and allows the private sector to generate more money and less paperwork. [caption id="attachment_177" align="alignleft" width="407"] The Uganda-Kenya Busia border can be a contentious place[/caption] With funding from Britain’s development arm DFID, the Dutch, Danish development agency (DANIDA), Sweden development agency (SIDA) and Belgium, TradeMark Africa has helped institute a complete reconfiguration of the border processes including physical construction of the new...

East Africa’s women border traders find their champions

They are as much a feature of Africa’s borders as immigration officials, barbed wire and bureaucracy. They are the service stations of Africa’s highways and the pit stops of commerce from Cape Town to Cairo. They gravitate to the frontiers where trucks stop, truckers break and travelers take on food and water for their journeys. Their shop fronts are brimming baskets and their cash registers are pockets and purses. They are the women traders who make a living by selling wares at Africa’s myriad borders and TradeMark Africa (TMA) is helping them to get organized, to know their rights and to reap the fruits of East African (EA) integration. “As cross border traders we carry the ignition key to transform our communities,” said Hadijja Sserwanga, a champion of the rights of Uganda’s border traders, regional Chairperson of the East African Women Cross Borders Traders Association (EAWCBTA). She describes herself as a politician, activist, teacher and community development worker fighting to overturn the sexual harassment, exploitation and marginalization by the (largely male) people who run and operate EA borders. She’s been a border trader herself since 1987, operating on the Uganda-Tanzania frontier at Mutukula, and has seen and experienced the problems women traders run into by not knowing their rights under EA integration or being bamboozled into paying unnecessary fines, taxes and bribes because they don’t know better. “I have a lot of passion for women’s empowerment and being a cross border trader. I feel we can transform ourselves from being...