EAC seeking tool to measure OSBP trade

The Holili border post on the Kenya-Tanzania border. FILE PHOTO | NATION 

In Summary

• The region is developing a tool to measure the performance of the 12 one-stop border posts so far built across the region to spur intra-regional trade.
• Once the measurement tool is ready, the EAC Customs officially will continuously assess the OSBPs performance and institute improvement strategies.
• Currently 10 out of the 12 constructed posts are operational and heads of state have launched four of them.

By PATTY MAGUBIRA
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The East African Community is developing a tool to measure the performance of the 12 one-stop border posts (OSBPs) so far built across the region to spur intra-regional trade.

The 2016 EAC Trade and Investments Report says that the regional intra-trade is still low, as it constitutes only 9.4 per cent of total trade, despite the implementation of Single Customs Territory which provides for removal of tariffs and other barriers to trade among partner states.

The tool will involve a range of measurements for expected economic benefits of the OSBPs, including reduction of time spent on administrative procedures, reduction of transport cost, reduction of inventory cost and increase of revenue collection and trade. 

The EAC Committee on Customs said the OSBPs measurement performance tool would be developed with support from the East African Development Bank, TradeMark East Africa (TMEA) and Japan International Cooperation Agency.

“A lot of resources have been invested in constructing the OSBPs, we’ve to ensure we get value for money,” the Tanzania Revenue Authority Acting Commissioner of Customs, Osaje Asubisye, said on behalf of the committee.

TMEA has so far spent over $117 million on the construction of the OSBPs in the region.

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Once the measurement tool is ready, the EAC Customs administrations will continuously assess the OSBPs performance and institute improvement strategies, Mr Asubisye said.

Currently 10 out of the 12 constructed posts are operational and heads of state have launched four of them, namely Taveta-Holili, Mutukula, Busia and Rusumo.

Other OSBPs whose construction has been accomplished are Ruhwa, Lunga Lunga-Horohoro, Kagitumba-Mirama Hills, Kobero-Kabanga, Malaba and Isebania-Sirari.

“Initially we focused on transforming the internal borders only into OSBP; there are now efforts to also transform those with countries bordering the EAC,” Mr Asubisye said.