Entebbe — The World Bank, in collaboration with African Development Bank (AfDB), have injected $209m (about Shs382b) into the East African Trade and Transport Facilitation Project to address transport challenges in the region. World Bank contributed $199 million whereas AfDB offered a grant of $10m.

Launching the project during a regional committee meeting at Imperial Beach Resort Hotel on March 24, the EAC Deputy Secretary General (Projects and Programmes), Dr Kipyego Cheluget, said the money would facilitate the implementation of four components of the project aimed at improving transport systems, minimising costs and easing traffic flow in the region.

The first component to be addressed is the Customs Union, which will involve the implementation of a one-stop border post and improvement of infrastructure and facilities at major border posts such as Malaba, Busia (Uganda-Kenya border), Namanga (Tanzania-Uganda), Katuna, Kakitumba (Uganda-Rwanda) among others.

According to the Executive Secretary of the Northern Corridor Transit Transport Coordination Authority, Mr Godgrey M. Onyango, one stop border posts will ensure that customs officials from two countries use a joint checking system for goods being transported from one country to another. This will avoid delays in clearing cargo at border posts.

"Currently, when goods come from Kenya to Uganda, they are checked from the Kenyan side, and when they cross the bridge, Uganda's customs officers recheck them. This is time consuming and at times, goods spend days at the borders.

With the introduction of this system, there will be a joint checking system called entry, where Uganda's goods for example to Kenya, are checked jointly by customs officers from the two countries to minimise costly delays at various border posts," Onyango said.

He blamed the high transport costs in the Northern and Central Corridors, which are vital trade corridors for the East and Central African region on challenges like inadequate transport infrastructure, failing rail transport and lengthy cargo clearance procedures at the seaports and border post.

He cited that transport costs account for 30 to 40 percent of the value of goods traded in the region, adding that each country in the region loses about $40m per year. Another component of the project is the concession of the Uganda-Kenya Railway.

"The bank is offering a partial risk guarantee facility of $35m to Uganda and Kenya to improve the capacity and efficiency of rail transport services to boost business in the region," he said.