Rwanda has launched the Regional Electronic Cargo Tracking System (RECTS), connecting with Uganda and Kenya in reducing the cost of cargo transportation along the northern corridor. The northern corridor is the transport corridor linking the landlocked countries of Uganda and Rwanda with Kenya’s maritime port of Mombasa. The country on Friday joined its East African neighbors of Uganda and Kenya by unveiling a cargo tracking system that seeks to reduce the cost of trade and check tax evasion. Speaking at an event held at Rwanda Revenue Authority (RRA) premises in the country’s capital Kigali, Francois Kanimba, Rwandan minister of trade and industry and the East African Community affairs said that the system will enable a real time tracking of transit cargo from Mombasa port to its destination through an online platform monitored in the three countries. "This is a landmark to our country towards improving regional trade through increased security of cargo and enabling traders to monitor their cargo. This tracking facility will enable RRA to deliver high quality service to importers and exporters by giving capability to monitor fleets and cargo," he added. He stated that the regional electronic cargo tracking system is part of deepening trade within the East African Community (EAC) countries through improved land transport security, reduce dumping, ensures cargo does not deviate from designated route and improve tax collection. RECTS allows revenue authorities in Rwanda, Uganda and Kenya to jointly and electronically track and monitor goods (whose taxes have not been paid) along the northern...

Rwanda Revenue Authority (RRA) on Friday commissioned its Electronic Cargo Tracking System (eCTs) which will help reduce transit time, enhance cargo safety and help traders to better predict arrival of goods. The eCTs is a web-based system used to monitor transit cargo from the point of entry to the exit in order to improve its safety and promote fair terms of trade by eliminating offloading of undeclared goods on the Rwandan market. During the launch at RRA headquarters in Kigali, François Kanimba, the Minister for Trade, Industry and East African Community Affairs, recalled that the project was sanctioned by the heads of state of Rwanda, Uganda and Kenya to improve trade which accounts for a big share in the factors behind the East African Community (EAC) integration agenda. Kanimba said: “The facility goes a long way to improving the turnaround time in international trade on the Northern Corridor. In Uganda, where the system is operational since 2014, it has proven to deliver impressive results in terms of transit time between Mombasa port and Kampala.” “This is a very important tool for a landlocked country like Rwanda which suffers disadvantages of being far away from the port. Any reduction in the costs of moving cargo means improved margins for our traders and, of course, tax revenues.” The minister assured the business community of the government’s willingness to continuously upgrade policy and physical infrastructure to facilitate competitive trade. The establishment of the $4.5 million Electronic Cargo Tracking System was funded by the...

In the Framework of the WCO- East African Community (EAC) CREATe project, funded by Sweden, the WCO provides technical assistance to the EAC Member States with the implementation of a regional Authorized Economic Operator (AEO) Programme. The goal of the project is to increase regionalization in the EAC region through facilitated trade for compliant traders. As part of the project, the WCO conducted a regional workshop from 6th - 10th March 2017 in Kampala, Uganda in order to support the region to review and update its Post Clearance Audit (PCA) Manual. PCA is a significant aspect for the successful implementation and administration of the regional AEO programme. During the workshop, 15 AEO and PCA experts from the five EAC member states, Burundi, Kenya, Uganda, Rwanda, and Tanzania participated in the workshop. The participants, with the support of a WCO PCA expert, have reviewed and updated the EAC PCA Regional Manual with audit programmes that are relevant for conducting audits in other operators within the supply chain and customs clearance processes. The manual was updated in order assure the alignment with WCO Guidelines and best practices. Here, eight operators were identified for the inclusion in the PCA Manual including Clearing Agents, Freight Forwarders, Transporters, Manufacturers, and Warehouse and storage operators. The experts alluded that the updates on the Manual not only assist in the delivery and management of AEO, but also increase customs compliance in the region as the operators play a crucial role in overall compliance improvement. The updates on...

A new trade facilitation tool was launched Tuesday in Kigali aimed at enhancing intra-Africa trade. The One-Stop Border Post (OSBP) Sourcebook is expected to help governments improve cross-border and intra-regional trade across Africa. The second edition of the sourcebook was supported by the Japan International Cooperation Agency (JICA), NEPAD, the Common Market for Eastern and Southern Africa (COMESA), East African Community (EAC), and the Intergovernmental Authority on Development (IGAD). The tool was launched at a regional workshop on the OSBP. The workshop runs up to March 16. Participants are exchanging views on further development of OSBPs in the continent. Participants were drawn from Djibouti, Eritrea, Ethiopia, Kenya, Sudan, Uganda, Rwanda, Tanzania and South Sudan. Dr Ibrahim Assane Mayaki, the NEPAD chief executive officer, said the trade facilitation tool seeks to promote a coordinated and integrated approach towards easing trade, movement of people, and consolidating security. He pointed out one-stop border posts are crucial in facilitating trade on the continent because clearance time reduces for both travellers and goods under one roof. Mayaki said: “It is envisaged that the OSBP project will help reduce the cost and time transporters take to ferry goods across borders.” Mayaki affirmed NEPAD’s commitment to support initiatives that promote trade on the continent. He also urged governments and key stakeholders to fully utilize the sourcebook to help them determine the best way to develop OSBPs in each region. Snowden Mmadi, an infrastructure expert at COMESA, said studies show that time wasted clearing at ports, borders, and...

African governments have been challenged to identify unique opportunities which they can pursue for growth of their ports instead of engaging in duplicate expansion projects that do not add value to their competitiveness and growth. Speaking during the African Ports Expansion Conference in Mombasa, leading world port and maritime sector managers said that many of the ports were duplicating what others were doing instead of trying to curve a niche for themselves so as to remain relevant. Tessa Major, a representative of the Port of Antwerp, Belgium, said by working together African countries can supplement each other instead acting as competitors so as to ensure growth in their maritime industry. She noted that many African countries had embarked on huge expansion projects of their ports so as to keep up with the increase in cargo volumes without focusing on future trends of the shipping industry. The conference brought together major stakeholders in the maritime industry including government officials, port authorities, contractors, technology providers, suppliers of port equipment and consultants. “When you look at majority of the expansion projects in African ports, most of them are similar. When we were expanding our Port in Antwerp, our biggest competitor was the port of Rotterdam in Netherlands but we realised the Port of Rotterdam deals more in liquid cargo,” said Tessa. The port of Antwerp is the second largest port in Europe after the Rotterdam port in the Netherlands which handles approximately 200 million tonnes of cargo in an year. Her remarks come...

Kenyans can expect lower costs and greater ease in doing business from massive synchronised transport projects in Mombasa, says Transport CS James Macharia. Calling them “game changers,” he cited construction of the second container terminal at the Mombasa port, ongoing construction of airport road and the standard gauge railway. “We cannot concentrate on the standard gauge railway alone. Projects have to be synchronised.We want to ensure as we launch the SGR on June 1, roads are also in place,” he said on Wednesday. Decongesting Mombasa Macharia toured the construction of the Sh6 billion airport road, the second container terminal, the SGR marshalling site, Mombasa West SGR terminal and the Dongo Kundu bypass. These are part of a three-phase plan to de-congest Mombasa by 2018. The airport road will ease both entry and exit to Mombasa. “One cannot talk about an airport without roads,” he said. The state has settled on compensation worth Sh1.7 billion, while the remaining Sh800 million will be paid as soon as beneficiaries are identified,” Macharia said. At the container terminal, Kenya Ports Authority MD Catherine Mturi-Wairi joined Macharia. Roads, sea ports, railway and airports are critical in improving business. More containers Macharia said two years ago, only 800,000 containers were handled at the terminal, which can now hold 1.6 billion. With completion of phase two, it is projected to hit 2.1 billion. Phase one of the terminal was constructed for Sh27 billion. Macharia said Kenya is ranked fourth in the world in handling cargo. Mturi said...

IN a bid to ensure production and supply of fertilisers in the country, the Norwegian YARA International company, which produces fertilisers has announced to invest 80bn/- at the Port of Dar es Salaam so as to improve the business. The idea is likely to improve agriculture production in the country, since majority farmers will benefit from the huge investment. The Norwegian ambassador to Tanzania, Ms Hanne-Marie Kaarstad said his country is committed to boost agriculture sector in the country. "The Norwegian government has provided 30m/- US dollar in a form of loan for expansion and strengthening of fertiliser section at the Port of Dar es Salaam, our aim is to see YARA improving its performance and ensure fertilisers reach farmers on time and at affordable price," she said. She was speaking during her visit at YARA Tanzania Ltd headquarters in the city She said the company is the main stakeholder of Southern Agricultural Growth Corridor of Tanzania (SAGCOT) programme. The company's Executive Director, Mr Alexandre Macedo said the port's fertiliser section is capable of offloading 422,400 tonnes of fertiliser per year. "Many farmers need fertilisers, and YARA has been doing everything in its powers to reach them," he said. He added that farmers need education on the importance of using fertilisers so that they can benefit from agriculture practices. He said the company uses 3m/- US dollar annually in various activities that aim at improving agriculture production in the country. He said the company has employed 33 extension officers and...

East African economies are seeking closer trade ties with countries outside the bloc as the volume of trade between the five-member states diminishes. A trade report by the  EAC Secretariat seen by The EastAfrican highlights a cocktail of factors stifling intra-EAC trade while undermining regional integration process. Non-tariff barriers (NTBs), poor infrastructure at the ports and on the main transport corridors, low value addition in the EAC region and lack of a common position on the implementation of duty exemption regimes by the member states have been identified as key factors that distort the Common External Tariff (CET). The other impediment is the lack of a comprehensive investment plan to promote EAC countries as a single investment destination. “In spite of the growth in trade and investment, the period 2015 exhibited continued sluggish performance that was witnessed in 2014. Trade in goods volumes as well as investment inflows remained flat or declined as a result of a number of challenges,” reads the report. The report dated August 2016 shows that trade among the EAC partner states is falling as member countries look beyond the borders for other  trading partners. Intra-EAC trade fell by 13 per cent in three years, with total value dipping from $5.8 billion in 2013 to $5.06 billion in 2015. Between 2014 and 2015, intra-EAC trade shrank by 10 per cent, from $ 5.6 billion to $5.1 billion. The bulk of EAC exports were destined to Common Market for Eastern and Southern Africa (Comesa) and the European Union (EU), amounting to 14.6...

The Rwanda edition of the International Trade Centre’s SheTrades initiative was today launched in Kigali by First Lady Mrs Jeannette Kagame. During the launch mobile-phone provider MTN Rwanda also announced it would be offering women entrepreneurs free downloads and free browsing of the ITC SheTrades mobile application. Launched in September 2015, the SheTrades Initiative will connect 1 million women to markets by 2020. Bart Hofker, chief executive officer of MTN Rwanda said his company will help promote the SheTrades app throughout the company’s media platforms. ‘We aim to harness the potential of Rwandan women entrepreneurs and enhance the growth of women-owned businesses to scale up and access markets,’ Hofker said. ‘We are committed to connecting 2,000 women to markets by 2020 as we believe this is an urgent necessity for inclusive economic growth.’ The launch of SheTrades Rwanda on 22-23 March brings together representatives from government, academia and the private sector to commit to actions that support women’s entrepreneurship and help them overcome barriers, including growing their businesses and accessing global markets. François Kanimba, Rwanda’s Minister for Trade, Industry and East African Community Affairs, said: ‘The SheTrades movement will advance women’s economic empowerment by creating enabling environment that allow them to participate in the global markets economy.’ Another major commitment made at the SheTrades Rwanda launch came from New Faces, New Voices, a pan-African advocacy group for women in finance, that announced that it establish a new Women Investment Fund and help connect 3,000 women entrepreneurs to markets. Held in...

Rwanda's exports to the East African Community member states have grown by 31.1 per cent in value, boosted by growing fuel re-exports to Burundi. However, the country’s imports from the region still outweigh its exports. Rwanda’s exports to the EAC increased to $157.52 million in 2016 from $120.15 million in 2015. “The growth trajectory is going to be sustained in the near and mid-term future as non-tariff barriers are removed and countries enforce free trade protocols,” said Francois Kanimba, Trade, Industry and East Africa Community. “We are seeing many foreign direct investments in Rwanda aimed to set up industries here and supply regional markets,” Mr Kanimba said. Rwanda’s leading exports in the region include tea, which is sold at the Mombasa auction, and petroleum product re-exports to Burundi. Other export commodities include raw hides and skins exported to Kenya, motor cars, mostly re-exported to Burundi and sorghum exported to Uganda. The oil re-exports to Burundi expanded by 292 per cent after a major oil marketer in Tanzania cut supplies to the troubled country, according to trading statistics released by National Bank of Rwanda. “This is due to the fact that in 2015, Burundi imported some petroleum products from Total Tanzania, but the company operations in Tanzania closed,” said John Rwangombwa, Governor of the National Bank of Rwanda. Oil re-exports to Burundi raked in $25.35 million in 2016, compared with $6.46 million in 2015. The fuel storage capacity the government has jointly built with the private sector has made Rwanda attractive...