Kenya's decision to remove police roadblocks marks the first move towards dismantling non-tariff barriers, but more of such bold measures are needed to remove other restrictions to the free movement of goods and services in the region.
While on a visit to Kigali on July 19th, Michael Kamau, Kenya's Cabinet Secretary for Transport and Infrastructure, said police roadblocks had been withdrawn and had been officers directed to concentrate on providing security through patrols.
"There is not a single police roadblock between Mombasa and Malaba," claimed Kamau, in response to a question about delay due to roadblocks. "That is now history. I call upon Uganda and Rwanda to do the same."
There are already no police roadblocks in Rwanda that stop and inspect transit goods. Once trucks are cleared at Gatuna border, they proceed unstopped to customs in Magerwa.
Kenyan police roadblocks have been the single-biggest impediment to overland cargo movement from the Port of Mombasa to Uganda, Rwanda, Burundi and eastern DR Congo. Importers and transporters have welcomed the removal of the roadblocks, as they have for decades borne the cost of roadblocks in both time and bribes.
"That is good news for us because there will be a reduction in transport time and also on corruption," said Theodore Murenzi, president of Rwanda Truck Drivers Association.
According to a study carried out in 2007 by the United States Agency for International Development (USAID), importers pay about $30 in bribes per transaction to either a policeman or a customs official in Kenya or Tanzania. The cost of bribing similar officers in Uganda is a significantly higher, at between $100 and $150 per shipment of goods.
Governments too, lose millions of dollars each day in revenues to bribes and unnecessary delays. According to figures available from the Transit Transport Co-ordination Authority of the Northern Corridor, businesses lose $800 USD per day per truck due to delays alone while governments lose $57,730 in tax revenue to bribes per 100 transactions.
Clearly, this shows that non-tariff barriers, although put in place by governments, serve no good. Instead they benefit a few corrupt officials who are cunning enough to exploit the loopholes that come with them.
While there have been many workshops and conferences on removing NTBs, there has never been a move as bold as the measure taken two weeks ago by the government of Kenya.
This is perhaps an indication of the many good policies to come from the region's biggest economy, whose new government has pledged better regional trade and cooperation as a hallmark of its diplomatic policy.
Unfinished business
Hopes for further progress on the issue of NTB's rest on an upcoming meeting in Kampala between President Paul Kagame, and his counterparts Yoweri Museveni of Uganda and Uhuru Kenyatta of Kenya.
"We hope that the heads of state will move firmly and decisively in dismantling several other NTBs that continue to impede regional trade and commerce. There is need to do more beyond removing police roadblocks," said an importer who did not wish to be named.
With 25 police checkpoints, 15 roadblocks and 13 weighbridges between Mombasa and Gatuna, there are still many barriers for transporters to deal with.
Cumbersome and confusing paperwork at the borders is another cause of unnecessary delays and can provide an avenue for corruption. While Rwanda has moved a step ahead by introducing a single window through which all import documentation can be handled, in neighboring countries importers still have to move between several offices to have goods cleared.
The Rwanda Electronic Single Window has cut the amount of time traders spend while clearing goods by more than half--by simply linking all institutions involved in clearing of goods: Rwanda Revenue Authority, Rwanda Development Board, Magasins Generaux du Rwanda (MAGERWA), the Ministry of Health, and Rwanda Bureau of Standards.
According to the East African Business Council, the umbrella body of the private sector in the region, there are several NTBs that need to be dealt with urgently. They include complicated inspection requirements, varying trade regulations, costly transiting procedures, and duplicated functions of agencies.
Others barriers include varying procedures and requirements across borders and lack of preferential treatment to EAC originating businesses, discriminatory taxes, competition from counterfeit products, and more.
Clearing eased
Fortunately, Kenya has also taken measures to streamline operations at the Port of Mombasa. For example, authorized clearing and forwarding service companies and commercial banks have been ordered to operate on a 24-hour basis or have their licenses cancelled. This means that importers will no longer have to wait for the next day to pay their fees.
According to Kamau, only two modernized weighbridges will remain at Mariakani and Athi River. Moreover, trucks weighed at Mariakani with seals intact will be allowed to proceed to Malaba without further inspection at police roadblocks or other weighbridges. Kenya also has a 5% overloading allowance, Kamau said.
There has been massive investment in the expansion of facilities at Mombasa Port, aimed at easing congestion as well as making the clearing of goods faster. According to Kenya Port Authority (KPA) managing director, Gichiri Ndua, KPA has completed dredging the channel to allow bigger vessels to dock at the port.
He said KPA has also acquired 27 new terminal tractors to enhance container yard operations.
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