Category: Enhanced Trade Environment

From ledger to lan – South Sudan builds on customs’ cash

South Sudan is barely one year old. But this new state is laying the foundations on which to build a future with a streamlined customs collection system that has increased revenue by more than 1,000 percent in the past six months. “This money will help us build the nation,” says Lt. Col. Emmanuel Goya Simon at the steamy Nimule Border with Uganda, the lifeblood entry point for nearly all of South Sudan’s import-dependent economy. “The revenue will help us in security, health and education. It will help the nation grow and breathe,” says Simon, second-in-command of Customs at Nimule. “We are already well on the way.” Outside huge trucks carrying everything from chewing gum to electric kettles and sugar, park to begin the laborious process of registering with half a dozen authorities, declaring their contents, being inspected and paying duty. “It’s a muddle. All the work is manual now, but not for much longer,” says Eugene Torero, the representative in South Sudan of TradeMark Africa (TMA), a donor-funded organization helping the East African community modernize trade and sow the seeds of new prosperity. Across the East African community TradeMark Africa (TMA) is helping countries accelerate away from ways of doing business and trade that have barely changed in the decades since the independence wave unfurled in the 1960s – paperwork, and lots of it. At Nimule, for example, TradeMark Africa (TMA) is in the process of computerizing form filling so that truckers will be able to sit at a laptop...

Frontier justice – TMA helps people know their EAC rights

There are huge gaps at the border between Uganda and Rwanda. They are not the tortuous hilltop roads smugglers pass to avoid customs officers and police. They are not the holes in the chain-link fencing between the two Partner States. They are the blind spots in the knowledge of ordinary people in how the East African Community (EAC) is changing their lives. But with active support of officials on both sides of the frontier, and the Dutch NGO Microjustice4All and TradeMark Africa’s (TMA) US$ 500,000 backing, those gaps are being filled in. Simon Tumwesigye of the Uganda Revenue Authority comes face to face with the gaps every working day and he is grateful that Microjustice4All is working both sides of the Katuna/Gatuna border to enlighten ordinary people as to their rights and obligations. “Ordinary people believe what their Presidents say on Radio or TV; they say there will be freedom of movement for goods and people thanks to the (East African) Community. So people turn up here expecting to pay nothing in taxes or customs duties at all.” “They have no idea that they have to pay VAT or withholding tax or whatever applies. But thanks to Microjustice4All, we have people on the ground to explain to them, and they do a great job,” he says. It’s a year-long pilot project, for now, to ensure that “people understand how the EAC affects them, especially people who live at the border, the small traders, the border communities who were here long...

Joining the elite authorized club to speed the goods to Uganda

Truckers yearn for it. Some are even prepared to break the rules to get it. But in Uganda actually obeying the rules and signing up for a computerised system has put truckers where they and their cargo want to be - in the fast lane. “Although many business people in Uganda still believe that money is made by cutting corners and doing the wrong thing, you can now make good money by doing the right thing, which is more sustainable,” says Jennifer Mwijukye, founder and MD of Unifreight, a cargo handling company. She is talking about the pilot launch in Uganda of the Authorised Economic Operators (AEO) scheme, which gives approved companies preferential treatment to sail through the Ugandan border all the way to the importers’ premises without being stopped anywhere for Customs checks. The programme, fully funded by Trademark East Africa (TMA), allows authorized companies like Jennifer’s to operate smoothly by clearing merchandise electronically and calculating taxes due, which can be paid at the click of a mouse. “I can tell you today that I am saving at least $300 per container in processing costs, to say nothing of the handling time which has drastically reduced,” she says. Clearing at least two containers a week, she now saves $31,200 a year (78 million Uganda shillings). Time is money, not just for freight companies but also for East Africa’s 140 million consumers who have to help cover the cost of one of the most expensive transport systems in the world....

East Africa on verge of single tourist visa after 10-year wait

Nairobi – After 10 years of stop-go discussions, three East African states are on the verge of launching a single tourist visa to ease the path of visitors across national borders and make it easier for the tourism industry to offer multi-destination packages. “It’s taken a while. There were concerns about how to split the revenue, about possibly losing money and about screening visitors, but Rwanda, Uganda and Kenya have seen that the advantages far outweigh the disadvantages,” said Waturi Matu, coordinator (Kenya) of the East African Tourism Platform. Moves to facilitate tourists across East African Community borders was given fresh impetus in June when the presidents of Kenya, Uganda and Rwanda met and agreed to strengthen integration and cooperation to spur the growth of trade. “Rwanda will be in charge of designing the visa, and the plan is to have it launched in January next year with Tanzania and Burundi free to join at any time,” she said. Long a lobbying goal of East Africa’s tourism industry, the single visa will enable a tourist to buy a visa for the three countries for $100 instead of three visas for $150. The savings for couples and couples with children, the main tourism unit, is therefore substantial. “Tourism is a key source of income for the East African Community and we support the East African Tourism Platform precisely so it can lobby to make the borders between members states ‘thinner’ and less bureaucratic,” said Frank Matsaert, CEO of TradeMark Africa. The...

East Africa set to adopt the harmonized edible oil standard

Fried fish, fried beef, chicken and fried bananas; oils and fats are as much part of East African life as blue skies and rain showers. But until recently, what you bought in Uganda to prepare your matoke with and what you used in Tanzania to fry your fish might have looked the same from the label but have been of vastly differing qualities. And none of East Africa’s 140 million citizens might have been the wiser. But not for much longer, the East African Community (EAC) Secretariat, with support from TradeMark Africa (TMA), met in the Burundian capital, Bujumbura; in March, for a regional technical committee meeting on oil seeds, edible oils and fats sector held to harmonise standards of this key ingredient of the daily diet. “Harmonisation of standards for all sorts of things is one of the building blocks on which to build a strong, integrated East African Community,” said José Maciel, Director of Trade Facilitation (Non-Transport), at TradeMark Africa (TMA). “It’s one of the reasons that the European Economic Community has become the power house that it is. You need to agree on basic standards for goods to create a level playing field on which traders and consumers will both benefit.” The edible fats and oils sector is a part of the larger food and beverage industry that commands a US$ 2 billion East African regional market value and, like the regional economy itself, is fast growing. There is strong demand for oils and fats but not...

Burundi’s women traders hit by EAC propaganda and like it

They sneak across the border back to Burundi, putting one foot quietly in front of the other on unmarked forest trails and secret tracks. The enemy is the authority. The goal is tax evasion. And the reason is ignorance. These are the women traders of Burundi who risk the wrath of the law to escape paying taxes on the food and small goods they carry in their nylon baskets from Uganda or Rwanda to sell to ready customers in border villages and further afield. It is much the same story across much the East African Community (EAC) – women traders running needless risks because of rumour and misinformation about punitive border taxes, expensive permits and baffling bureaucracy. “Women traders are the ones who face, every day, the problems of not knowing what their rights are in today’s EAC,” said Burundi’s minister for East African Community Affairs Hafsa Mossi. “Most of them haven’t a clue about their rights or their obligations.” With support from TradeMark Africa (TMA) that situation is changing. Partnering with NGOs, the government and the media, the borderline informal sector is learning that much of what they feared held no threat, and that clarity on tax obligations and paperwork can make their lives, and their profits much better. “Women traders are at the front line in disputes with the authorities at the borders,” said Floride Ahintungiye, Programme Director of the International NGO Search for Common Ground (SFCG). “With help from TradeMark Africa (TMA) our staff went to the...

Burundi media helps citizens reap benefits from EAC membership

Trader Jeremie Kayobera had his life changed by a radio broadcast. It wasn’t a religious broadcast, or a political one, but a nuts and bolts broadcast about how to take advantage of Burundi’s membership of the East African Community (EAC). Until that December 2011 radio show, he had bought maize flour in Tanzania or Uganda, Burundi’s economically powerful neighbours, imported it, paid his border dues and sold the staple foodstuff in his home country. Why not? It’s a pattern of business repeated across the whole spectrum of Burundi’s trade relationships with its EAC neigbours: buy across the frontier, import, and sell. Every market place in even the smallest community bears witness to this pattern of doing business. That changed overnight. He heard a radio programme explain to him that he could take advantage of start-up help from the government’s API Investment agency; he heard how much or how little he would have to pay in tax to the state’s Office Burundais des Recettes (OBR), the revenue authority. Today he has realized a dream and established his own maize mill in Kanyanza. Goodbye paying taxes on imported foodstuffs. Hello the opportunity to make bigger profits milling from local produce, and to export. “It doesn’t matter where you go in the countryside, you find that people know almost nothing about the benefits of EAC membership or the steps the government is taking to help business compete in the EAC,” says Davy Rubangisha, Programme Manager at the RPA radio, Burundi’s private and biggest...

An English revolution in Burundi sets pathway to deepening integration in the East African Community

An English revolution is sweeping across Burundi, transforming this French-speaking nation to a multi-lingual nation. The demand for the language has resulted in several English language colleges sprouting up all over the capital city. While the EAC Treaty provides English and Kiswahili as the official languages in the Community, the bigger majority of the Burundian population, including Government officials lack the requisite skills to conduct business and meetings in English. This situation has resulted in significant challenges for the Burundi population in relation to the rest EAC partner states, including difficulties in common understanding and in-depth negotiations during EAC council and sectorial meetings follow up on agreed decisions or coordination of Burundi’s EAC policy implementation. On 1st July 2007, Burundi officially acceded as a member state of the East African Community (EAC) and committed itself to a widening and deepening co-operation with Kenya, Rwanda, Tanzania and Uganda in the political, economic, social, and cultural fields. Today, the EAC has become the fastest growing block in Sub-Saharan Africa. Through the establishment of a Customs Union, Common Market, Monetary Union and ultimately a Political Federation, Burundi, with the other four partner states is set for increased trade and development. One of the major challenges for Burundi has been that it is the only EAC country with the predominance of the French language. Since 2012, TradeMark Africa (TMA) has been supporting the Ministry at the Presidency in Charge of the East African Community Affairs,to establish and implement a two year project titled ‘Enhancing...

Burundi – A nation takes steady steps towards a better future

KOBERO, Burundi – Burundi, one of the world’s poorest states, has been ranked one of the world’s top 10 economic reformers in a World Bank survey that honours its drive to modernize trade and infrastructure. The award, in the bank’s yearly Ease of Doing Business report, acknowledges Burundi’s efforts to attract foreign investment by unraveling age-old procedures that snarled commerce in paperwork, queues and wasted time. “We are delighted to be among the top reformers in the world, having moved up 13 places this year on top of having moved up eight places last year,” said the country’s Second Vice President, Gervais Rufyikiri. The index, topped by Singapore for the seventh successive year, measures how countries perform on a range of indicators from the time it takes to get a building permit to how long it takes to get across borders. Time, especially in the East African region is money, and Burundi’s modernization efforts have been helped by targeted expertise from TradeMark Africa (TMA), a donor-funded organisation helping the region to grow prosperity through smoother and increased trade. Modernity gleams through the rain at Kobero, a four-hour drive from Bujumbura and Burundi’s lifeline border crossing into Tanzania and the distant port of Dar es Salaam. Or, a two-day drive for the 80-odd trucks that pass here every day from Dar es Salaam. Here, in the middle of a fairly typical African frontier crossing – tiny kiosks, a foreign exchange dealer, and truckers’ cheap hotels – is a large white prefabricated...

A Tanzanian Designed Scheme to Topple Trade Hurdles With Cell Phones up for World Trade “OSCAR”

Few parts of the world have pioneered the cell phone with such ingenuity as East Africa. You can pay bills with it, check crop weather with it and, when you’re not checking your bank balance, talk to your auntie in Kisangani or Kigali or Kericho. But now, for the first time in East Africa, the humble cell phone is being used as a beacon to champion free, smoother and cheaper trade across the region by naming and shaming unnecessary or duplicated barriers to the free movement of goods. The short messaging system (SMS) online non-tariff barrier (NTB) reporting and monitoring mechanism, was developed by the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA) to get the business community not just to grumble about NTBs but to log them, report them and get them referred to those with the power to overturn them. Such is the beauty of the system that it has been nominated for the award of Best Project of the Year by the International Chambers of Commerce and World Chambers Federation, a grouping of senior business, trade and commerce experts. “It is a great pleasure to see that the in house innovation can stretch its wings to the international community. The recognition that the NTBs SMS and online reporting and monitoring system has received through its nomination in the finals, is an evidence that what we do as a private sector in creating favorable business environment adds value to the lives of people; not only because the world...