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East Africa: Businesses Point Out Barriers
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The Citizen (Dar es Salaam)
3 May 2008
Posted to the web 5 May 2008
Zephania Ubwani
Arusha
The East African business community has criticised authorities over bureaucratic bungling and cargo delays that are hampering trade in the region.
Businesspersons from five EAC member states condemned the "little progress" made to address red tape and non tariff barriers at common borders and ports.
Speaking recently at the start of talks for the region's Common Market in Arusha, the business leaders said red tape and cargo delays were huge impediments to cross border and transit trade.
Mr Bernard Kagira, a business consultant from Nairobi cited congestion at the Dar es Salaam and Mombasa ports as major obstacles to efficient movement of cargo in transit and within the region.
He said while transporting goods was very costly, especially for landlocked countries such as Rwanda and Burundi, the situation had been worsened by "preventable delays at border posts."
Trucking goods from Kigali to Mombasa, which could take only six days, takes between 15 and 20 days.
A number of factors lead to the delays, but chief among them are the lack of a common regime for mananging transit trade in the region and the numerous weigh bridges along major roads, where corruption has also been reportedly rampant.
Some experts have also criticised the mandatory escort of goods in transit saying besides adding costs it was delaying delivery of raw materials.
They said the rule must apply only to sensitive goods and during times of political unrest. The lack of common transit insurance bonds, said the business community, increased costs of transit, while the absence of harmonised axle load disadvantaged landlocked countries.
Other speakers at the meeting accused Tanzania and Kenya immigration officials of complicating movement between the two countries by making unnecessary demands.
They said while Tanzania truck drivers entering Kenya on weekends were being asked to pay overtime fees, drivers and loaders from Kenya were required to have visas to enter Tanzania.
The chairman of the East African Business Council Mr Arum Devani, warned of retrogression in trade relations in the region if authorities fail to deal with bureaucratic structures within their secretariats.
He called for the removal of trade barriers within the region saying member states must shun lip service and uphold their commitment to regional integration.
East Africa businesses point out barriers
By Zephania Ubwani, Arusha
The East African business community has criticised authorities over bureaucratic bungling and cargo delays that are hampering trade in the region.
Businesspersons from five EAC member states condemned the "little progress" made to address red tape and non tariff barriers at common borders and ports.
Speaking recently at the start of talks for the region's Common Market in Arusha, the business leaders said red tape and cargo delays were huge impediments to cross border and transit trade.
Mr Bernard Kagira, a business consultant from Nairobi cited congestion at the Dar es Salaam and Mombasa ports as major obstacles to efficient movement of cargo in transit and within the region.
He said while transporting goods was very costly, especially for landlocked countries such as Rwanda and Burundi, the situation had been worsened by "preventable delays at border posts."
Trucking goods from Kigali to Mombasa, which could take only six days, takes between 15 and 20 days.
A number of factors lead to the delays, but chief among them are the lack of a common regime for mananging transit trade in the region and the numerous weigh bridges along major roads, where corruption has also been reportedly rampant.
Some experts have also criticised the mandatory escort of goods in transit saying besides adding costs it was delaying delivery of raw materials.
They said the rule must apply only to sensitive goods and during times of political unrest. The lack of common transit insurance bonds, said the business community, increased costs of transit, while the absence of harmonised axle load disadvantaged landlocked countries.
Other speakers at the meeting accused Tanzania and Kenya immigration officials of complicating movement between the two countries by making unnecessary demands.
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They said while Tanzania truck drivers entering Kenya on weekends were being asked to pay overtime fees, drivers and loaders from Kenya were required to have visas to enter Tanzania.
The chairman of the East African Business Council Mr Arum Devani, warned of retrogression in trade relations in the region if authorities fail to deal with bureaucratic structures within their secretariats.
He called for the removal of trade barriers within the region saying member states must shun lip service and uphold their commitment to regional integration.
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