Trade barriers still a tough nut to crack for EAC

Agriculture minister Hussein Bashe (left) inspects lorries laden with maize destined for Kenya at the Namanga border post. PHOTO | FILE

By Peter Saramba

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Mwanza. Removal of trade barriers- tariff and no-tariff - remains a challenge within

the East African Community (EAC) bloc despite policy interventions.
The barriers have not only impacted on cross border trade among the  six-partner states, but hindered intra-regional investment flow.
This emerged last week during a public-private dialogue for business stakeholders at the Mutukula border crossing between Tanzania and Uganda.
They said although there has been a rise of trade between Tanzania and Uganda, statistics could have been higher if there were no barriers.
Trade records at the Mutukula One-Stop Border Post (OSBP) indicate that Tanzania exported goods worth $743.6 million in 2020.
Imports from the neighbouring country stood at $95.1 million during the period under review.
The public private dialogue was organised by the East African Business Council (EABC) in collaboration with TradeMark East Africa (TMEA).
It emerged that between 150 to 200 cargo lorries from Tanzania to Uganda pass through the border crossing daily.
Speaking during the dialogue attended by 50 delegates, Mr Caesar Kasaanya from the Uganda Revenue Authority (URA) said trade barriers remain to be the main hurdle for cross border trade.
“The existence of Non-Tariff Barriers (NTBs) is still affecting cross-border trade, especially on the EAC originating products including food crops,” he pointed out
Participants included the government officials from both countries as well as those from a raft of trade facilitation agencies.
Others were importers, exporters, transporters, women cross-border traders and Eastern African Sub-Regional Support Initiative for the Advancement of Women (EASSI).
The EABC executive director Mr John-Bosco Kalisa appealed for the EAC Partner States to take deliberate measures that will cut down the NTBS in order to ease business flow. He rooted for deployment of officials who would offer 24-hour service on the Uganda side of the shared border as is the case on the Tanzania side.
While all agencies on the Tanzania side operate 24 hours, only the immigration department on the Ugandan side operates 24 hours at the Mutukula OSBP.
Meanwhile, the EABC says it was working with the International Trade Centre (ITC) to design an online platform for micro, small and medium enterprises (MSMEs) in East Africa.
The facility offers the targeted enterprises the opportunity to access new markets both locally and internationally through the digital means.
Through ITC’s One Trade Africa programme, the project will focus on empowering, enhancing and enabling youth-owned enterprises to access business opportunities.
Particular emphasis would be on women and the youth to ensure they are part of the continental market equation.
Through broadening customer reach, the platform would lower the cost of transaction through the integration of innovative digital financial services such as mobile money which feature strongly in the region.
Offering online payment for offline MSMEs will enable the start-ups and the small enterprises in general to manage, receive and track online payments from their customers.
Through the project, according to EABC, enterprises will access affordable capital.