The Nation (Nairobi)

East Africa: Poor Road, Railway Network Holding Back Integration

Nairobi — Non-tariff barriers (NTBs) are still seen as major hurdles to the smooth transaction of business in East Africa despite the Common Market Protocol.

The situation has been compounded by poor infrastructure which will deny member States full benefits of integration. East African Community secretary-general Juma Mwapachu says efforts to promote regional trade would be futile if markets are not accessible.

"It is not possible for our nations to realise the full benefits of regional integration where there is no reliable infrastructure," he said in Arusha last week. Mr Mwapachu told a meeting on improving fertiliser supply in Africa that the removal of infrastructure-related barriers -- both physical and non-physical -- was critical for the smooth flow of trade in the region.

Among the key barriers are customs and administration documentation procedures, immigration procedures, cumbersome inspection requirements and police road blocks. EAC partner States, he said, should urgently mobilise their resources as well as seek donor support to upgrade their run-down transport networks.

Good physical infrastructure such as roads, railways, ports, inland water ways, airports, energy and telecommunications were essential for a well functioning customs union and common market. Mr Mwapachu said enhanced cross border trade and economic ties were milestones in the integration process.

He told delegates drawn from fertiliser supply firms from various parts of Africa and beyond that farmers should be made the leading beneficiaries of the common market. The on-going improvement of transport infrastructure would give adequate attention to a balanced development of major highways and railways.

Rural feeder roads should also be developed to ensure optimal use of major infrastructure, he said. His remarks on the barriers did not surprise many in the five EAC member countries -- Kenya, Uganda, Tanzania, Burundi and Rwanda. For years the barriers have posed a serious obstacle to intra-regional trade, increasing the cost of doing business.

Consultants hired by EAC last year said that administrative hitches associated with the trade barriers had not been dealt with firmly by regional leaders. They said the existing framework for monitoring NTBs was not only ineffective but did not deal with ad hoc administrative cases which arose in the course of cross border trade.

"This is because it takes long to constitute the committee meetings or for respective revenue authorities to exchange information in order to resolve emerging NTB issues," they said in their report to EAC High Level Forum on Customs Union. The consultants proposed the establishment of rapid response units within the ministries of trade in member States to facilitate "faster and more effective" means of dealing with cross border trade hitches.

"In addition, this will allow the national NTB monitoring committees to deal with structural, as opposed to day-to-day operational issues", they said in a report titled; An Evaluation of the Implementation and Impact of the EAC Customs Union. They further proposed that officials of the ministries of trade from all the five member States should oversee reported cases of NTBs and resolve disagreements which may arise.


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