Nairobi — East African governments should scale-up the use of electronic arrangements, popularly known as e-government, to minimise corruption in public offices.

Charles Mbogori, the executive director of the East African Business Council, says e-government builds accountability by eliminating gatekeepers and standardising service delivery.

"Publishing government information online makes it possible to track decisions and actions. This serves as an additional deterrent to corruption," he said at the Africa Growth and Opportunity Act Forum in Nairobi recently.

According to the 2008 EABC Business Climate Index, more than 35 per cent of business leaders cited corruption at the Customs department as a major obstacle to doing business in the region.

For instance, while a bribe by lorry operators in East Africa is as low as $1.9 on average, the survey found that annually the total bribe paid by all lorries to Customs officials amounted to $2 million.

The World Bank estimates that $1 trillion is paid in bribes each year.

"Corruption has a negative effect on a country's ability to compete in international trade. Smaller companies tend to suffer more as bribe payments usually constitute a larger proportion of their revenue, leaving them unable to compete with bigger companies where large bribes are required to secure a contract," Mr Mbogori said.

The International Monetary Fund estimates that corruption reduces investment by around five per cent.

The African Union estimated in 2006 that the continent loses $148 billion every year because of corruption. This figure is equivalent to a quarter of the continent's gross domestic product.

"Recurrent corruption payments will also increase business costs and, therefore, reduce profitability," Mr Mbogori said.

He added: "It is necessary to inculcate corporate governance among businesses, by having in place codes of conduct that companies must adhere to."

Founded in 1997, EABC is an umbrella body of business associations in Kenya, Uganda, Tanzania, Rwanda and Burundi. It aims at promoting the private sector's regional and global competitiveness in trade and investment.

EABC is preparing a Code of Conduct for its members. The code -- to be known as the Business Action Against Corruption -- is an anti-graft initiative of the private and public sectors to tackle corruption.