A fuss-free border can generate more revenues for governments and offer lower prices for consumers than one that is steeped in bureaucracy.

It also encourages the movement of people which in turn inspires entrepenuership. The tourism industry can also gain through the concept of a seamless package tour.

In the coming months, citizens of the East African Community (EAC) Partner States will see their presidents trooping to their borders to officially open new One Stop Border Posts (OSBP) facilities.

In the dark days before economic integration became a clarion call for more regional prosperity, national borders were like fortresses. More so for business people and general traders intent on importing vital production inputs or exploiting new markets for their goods. The costs involved in both importing and exporting were high, because of the wasted time in duplication of effort.

OSBPs will change all that, because persons, vehicles and goods make a single stop to exit one country and enter another. Implementation includes simplification of documents and procedures and greater use of ICT. Many online systems are already in place.

For road transporters, instead of spending days at the borders, truckers will complete formalities in a single facility and leave in less than a day. Many of these documents will be received and reviewed electronically before the vehicle arrives. If all is in order and no inspection needed, the vehicle could complete formalities in a few hours and not several days as before.

If inspection is needed, it will be done jointly. This avoids unloading and reloading cargo twice with the loss of time and potential damage to the goods. When trucks don’t move the transport companies don’t make money and the cost of imports to manufacturers, retailers and consumers is higher. The reverse will cause prices to steadily fall.

The relevant border agencies, like revenue, immigration and health authorities, will also be able to do their jobs with more efficiency.

Agricultural inspection, using international and regional standards, can be done once and jointly by the agriculture officers of both countries. Border security agencies will cooperate more in identifying risks in cargo or persons, and allowing the rest to pass the border more easily.

Last year in Kigali, EAC Secretary General, Dr. Richard Sezibera said there has been a reduction of trade barriers that has consequently reduced the cost of doing business in the region.

He said previously it would cost $1500 to ship a container from Japan to Mombasa port and $4500 to move the same container to Kigali. Much of the cost was due to administrative hurdles found along the transit routes. These days however, the cost of moving a container from Mombasa to Kigali is around $1000.

At the centre of all these improvements is TradeMark Africa (TMA), a consultancy that has been chanelling Development Partner funds towards streamlining regional trade flows. TMA have regional offices in all five EAC countries with Nairobi hosting its headquarters.

According to the latest annual Doing Business Survey, Uganda reduced the time to export and import by implementing computerized systems that allow web-based submission of documents.

Tanzania invested in port infrastructure which have helped reduce berthing and unloading time as well as congestion. The reduction in the time required for port and terminal handling activities benefits not only traders in Tanzania, but also those in the landlocked economies of Burundi and Rwanda that use the port.

However, all these efforts add up to nothing if the borders are clogged up with masses of procedures and paperwork. EAC citizens should therefore be gratified and should take advantage of the OSBPs, because now crossing the border is no longer an obstacle course.

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.