Cross-border trade for increased integration

HENRY LYIMO

THE Minister for Foreign Affairs, East African Regional and International Cooperation, Ambassador Augustine Mahiga and Kenya’s, Cabinet Secretary, Ministry of Labour and East African Affairs, Phyllis J. Kandie cut a ribbon to officially open Holili and Taveta One Stop Border Posts at Holili in Rombo District, Kilimanjaro Region last Saturday. Looking on is the East African Community Secretary General. Dr Richard Sezibera (second left). (Photo by Staff Photographer)

THE cost of doing business in the East African region has come down significantly after Tanzania and Kenya started joint border clearance procedures through one-stop border posts at Holili and Taveta border of the two countries.

According to TradeMark East Africa Director of One Stop Border Posts, Theo Lyimo, the two border posts set up by TradeMark East Africa at a cost of approximately 12m US dollars, have cut down to about 30 per cent of time spent in border clearance since they started operations mid last year.

“We have so far achieved 30 per cent reduction of time spent in crossing the border by avoiding duplication of activities,” he told reporters last Saturday after a grand ceremony to officially open the two border posts officiated by the Minister for Foreign Affairs, East African Regional and International Cooperation, Ambassador Augustine Mahiga and Kenya’s, Cabinet Secretary, Ministry of Labour and East African Affairs, Phyllis J. Kandie.

TMEA has funded a $5.7 million state-of-the-art post on the Tanzania’s side of the border with Kenya at Holili in Rombo District in Kilimanjaro Region and another US$ 6.7 million infrastructure at the Taveta border post on the Kenyan side to simplify customs procedures between Tanzania and Kenya and boost trade in the Eastern African region.

The ultra-modern buildings at the Holili and Taveta are furnished with modern furniture and equipment, internet facilities, as well as inspection sheds, warehouses, animal holding facilities, incinerators for burning biological waste and laboratory for testing goods at the border.

TMEA has also supported establishment of National OSBP steering committees and funded their meetings, which among other things, prepared bilateral agreements which serve as legal framework necessary for OSBP arrangements pending the entry into force of EAC One- Stop border legislation.

Mr Lyimo said they expected a return of 30 US dollar for every dollar invested in Holili and Taveta facilities as well as other 53 similar posts funded by Trade mark East Africa in East Africa and South Sudan.

“We have invested about 117million US dollars in One Stop Border Posts and one access road, and what is exciting about this is that we expect a return of 30 US dollars for every dollar invested,” he said.

In his remarks at the opening ceremony of the facilities, Ambassador Mahiga said the opening of the Holili and Taveta border post reflected the determination of Tanzania and Kenya’s government to boost regional integration through trade facilitation.

“It’s a demonstration of the trust between the two countries and that the One People, One Destiny dream is slowly being realized through various East Africa Community initiatives,” he said.

Dr Mahiga said the OSBP is set to increase efficiency by reducing time and transport costs incurred by businesses, farmers and transporters in crossing the border.

The Kenya’s Cabinet Secretary for Cabinet Secretary, Ministry of Labour and East African Affairs, Phyllis J. Kandie said the opening of the One Stop Border Posts at Holili and Taveta border marked an important milestone in the integration process of the of the region and called upon the business community to make optimal use of the facilities to enhance trade.

“Kenya cherish the vision of widening and deepening of integration...Kenya strongly believes in dynamism of regional integration,” she said.

She said with the construction of Voi and Taveta Road nearing completion, the new facilities at Holili and Taveta would boost trade between in the East African region and unlock trade potential of the Kilimanjaro Region and Taveta County.

“I am pleased to appraise the substantial progress already recorded in the construction of the Taveta-Mwatate-Voi road section. Already, 75 per cent of the road is complete and opened for use.

It is anticipated that by the end of this year, the outstanding works on that section will be complete and the people of Taveta and Northern Tanzania for the first time will travel to and from Mombasa and other parts of Kenya with ease,” she said.