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Category: Trade Policy

World-class reformer Burundi slims down paperwork for business

It used to be six or seven trips, eight days traipsing around town and a lot of shoe leather in the clammy lakeside capital of Burundi to complete the paperwork needed to register for a building permit. Now it’s one trip, six flights up in a Finance Ministry building by elevator and a mere 24 hours or less. That’s because of a One-Stop Shop approach Burundi has adopted, an innovation that has made the country of nine million people one of the top 10 economic reformers in the world, according to the World Bank. The World Bank’s International Finance Corporation (IFC) paid tribute to Burundi’s zeal in its annual Doing Business in East Africa report, which made the country the only African state to figure in the league of the world’s top 10 economic reformers. “Burundi is among the top 10 improvers for the second consecutive year, with four regulatory reforms in starting a business, in dealing with construction permits, registering property and trading across borders,” said the IFC report. Only four steps are required to register a business, half the number needed on average by the rest of sub-Saharan Africa. They include submitting all documents, obtaining a registration certificate and registering the company. It also includes making a company seal needed by some banks to issue loans. Although the Government is now proposing to abolish this step, combining the first two so as to remain with only two steps. "The One-Stop Shops are important for Burundi's economy and economic...

World chambers honor Tanzanian scheme to topple barriers to free trade

World Chambers of Commerce have honored a Tanzanian-designed scheme to use cell phones to identify and help overturn barriers to free trade across East Africa. The scheme won second prize in the World Chambers of Commerce competition for the best project amongst a field of other groundbreaking innovations from Britain, China, the Slovak Republic and Turkey. 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. “Already within East Africa other countries are expressing interest in the system. To get that international recognition for a project designed and driven by the private sector is great,” said Pauline Elago, Country Manager of TradeMark Africa, which backed the scheme. It is the first of its kind in East Africa and is a beacon in the battle against NTBs, regulatory or official hurdles which slow free commerce and add to the cost of transporting goods to the region, which already has the highest transport costs in the world. ““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 is evidence that what we do, as a private sector, in creating favorable business environment adds value to...

Landmark scheme puts Uganda truckers in the fast lane

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 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. Transport...

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...

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...

Barriers to Rwandan trade tumble – Theo keeps on trucking

Theodore Murenzi’s truck ground to a halt in Rwanda. So did the business it was supposed to be doing, hauling stone and earth to feed the appetite for construction that is changing the face of East Africa. It needed brake linings, oil and fuel filters and new clutch plates to get back on the highway and earning money. All the parts were readily available, in a warehouse in the Ugandan capital, Kampala, a couple of hundred miles away. A few years ago that might have meant being off the road and out of action for days, even weeks, locating the parts, ordering them, paying for them, getting them cleared at two customs posts and delivered to his yard in Kigali, the Rwandan capital. But in December 2012, thanks to a systematic campaign by Rwanda to overturn the Non- Tariff Barriers (NTBs) to trade with its East African Community (EAC) Partner States, the whole process took less than 24 hours. “I ordered them in Kampala, paid for them by Western Union, filled out a simplified declaration form, went up to the border at Katuna, paid my V.A.T. and had a cup of tea with the police there while my stuff was loaded onto another truck. The truck was back in business the next day.” Theodore speaks not just for his own business. He is head of the Long Distance Truck Drivers Association of Rwanda, which has 4,700 members and plies the two main corridors on which landlocked Rwanda, Burundi and Uganda...

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...