Kigali-9th May, 2013
TradeMark Africa ( TMA ) and the Rwanda Revenue Authority (RRA) signed a memorandum of understanding (MOU) affirming their continued partnership and setting a framework for the implementation of an electronic system, the “Electronic Cargo Tracking System” (ECTS), that will allow a more efficient monitoring of the movement of cargo transiting along the corridors of the East African Community (EAC). The objective is to reduce time and cost of transit along the major transport routes in East Africa and ultimately ease movement of goods and facilitate trade within the region. The system is expected to reduce the transit time by 50% which will significantly reduce the overall transit cost.
East Africa is one of the fastest growing regions in the world, though trade continues to be hampered by non-tariff barriers and high transport costs among others. As Rwanda is a landlocked country and mostly depends on the cargo transiting along the East African routes to import and export goods, it has become imperative that more efficient and cost effective ways of managing this transit cargo be sought. Indeed, manual monitoring of cargo is inefficient and expensive to business both in terms of cost and time and is prone to abuse due to the human element in checking and recording of the status of seals and any other relevant information. Hence the initiative for electronic monitoring of transit cargo which is expected to ease the achievement of the ultimate objective of facilitating trade without compromising customs controls.
The ECTS will be used to electronically track in real time all trucks and containers transporting goods along the East African corridors and monitor the movement of transit cargo across the country in order to ensure that it exits to the intended destination. Gadgets are affixed on to trucks and containers such that movement is monitored remotely and real time alerts are sent in case of any attempt to deviate from the route, prolonged stops in ungazetted areas or tampering with seals. The system will to a large extent address the delays caused by repetitive checks and robberies along the transit route and eliminate physical escort of goods which will reduce the transit period by 50% hence reduce transit cost.
Electronic tracking of cargo is being implemented in other EAC countries such as Kenya, Uganda and Tanzania. The Rwanda ECTS will be interfaced and exchange information with that of Tanzania.
The agreement signed by Richard Tusabe, RRA Deputy Commissioner General on behalf of the RRA Commissioner General, and Frank Matsaert, Chief Executive Officer of TradeMark Africa (TMA) is firming up TradeMark Africa (TMA) ’s commitment to support RRA implementing the Electronic Cargo Tracking System with a budget of US$1million.
This is the second MOU signed between TradeMark Africa (TMA) and RRA as the two institutions have been working together since August 2011 when TradeMark Africa (TMA) signed a financial aid agreement of US$3.8 million to support RRA until June 2015 purposely to promote greater trade, capacity building and regional integration within Rwanda and East Africa. This second MOU is therefore adding 1 more US$ million to TradeMark Africa (TMA)’s existing support to RRA.
Contacts:
Drocella Mukashyaka,
Rwanda Revenue Authority,
Director for Taxpayer Services Department.
Tel: 0788185660
Mobile: 0788351001
Email: drocella.mukashyaka@rra.gov.rw
Source: TradeMark Africa (TMA)
TradeMark Africa (TMA) is an aid-for-trade organisation that was established with the aim of growing prosperity in East Africa through increased trade. TradeMark Africa (TMA) operates on a not-for-profit basis and is funded by the development agencies of the following countries: Belgium, Canada, Denmark, Finland, the Netherlands, UK, and USA. TradeMark Africa (TMA) works closely with East African Community (EAC) institutions, national governments, the private sector and civil society organisations.
