Rwandan traders are pushing for the removal of all Non-Tariff Barriers (NTBs) along routes connecting Kigali to the East African coast to ease trade.
Rwandan traders are pushing for the removal of all Non-Tariff Barriers (NTBs) along routes connecting Kigali to the East African coast to ease trade.
This was highlighted on Thursday as East African Legislative Assembly (EALA) members met hoteliers, tour operators and transporters in an attempt to grasp the problems the latter face while doing business in the region.
NTBs are restrictions that result from prohibitions, conditions, or market requirements that make importation or exportation of products difficult or costly.
Transporters said about seven weighbridges exist on the northern corridor – creating unfavorable competition – and are calling for further advocacy.
Fred Seka, a transporter, said the central corridor route from Kigali to Dar is still preferred, though longer, as it has only one weighbridge. From Gatuna to Busia, in Uganda, there are four weigh bridges.
"A truck from Kigali takes three to four days to reach Dar,” Seka said.
Accessing Dar port an issue
Meanwhile, when the chairperson of EALA Rwanda Chapter, MP Patricia Hajabakiga, prodded for details on the situation at the two main EAC ports, Seka also reported challenges regarding Rwandan clearing and forwarding agents getting access.
In 2013, Presidents Yoweri Museveni of Uganda, Paul Kagame of Rwanda and Uhuru Kenyatta of Kenya agreed to implement a Single Customs Territory (SCT). The SCT agreement was to remove multiple weighbridges, police and customs checks along the Mombasa-Kampala-Kigali route.
It would also usher in computerised clearance and electronic tracking and other innovations that would overturn hurdles to free trade. Rwanda may now be in the SCT, Seka said, but "we still have challenges.”
Seka said: "We have reported our challenges so many times, up to the Summit level. Rwandan clearing agencies don’t have access to the Dar port.
Apart from being asked for work permits, Seka said, Rwandan forwarding and clearing agents do not have access to the customs systems in Dar.
"I must partner with a Tanzanian so as to access a container in the port. We are not yet where we want to be. We requested that there be mutual recognition and we also be considered as Tanzanian agents.”
"Back home, they use both their own customs system as well as the Rwandan one but we can’t use their system - Tanzania Customs Integrated System (TANCIS).”
Upper north, while Rwandan agents access Mombasa port, they are not activated to access the Kenya Revenue Authority (KRA) customs systems.
"Shipping lines that brought in the goods cannot recognize you if you are not recognized by the country’s customs authority.”
When Hajabakiga inquired about outcomes of the recent Tanzania-Rwanda Joint Permanent Commission (JPC) held in Kigali, Seka noted that the meeting in May, though vital, was more of a business people gathering.
Seka added that business people from both countries work well with each other but when it comes to addressing trade concerns, it is governments to take initiative to ease the business environment.
Stephen Ruzibiza, the Chief Executive Officer, Private Sector Federation (PSF), noted that, by and large, what was lacking in the past was political will for things to be sorted out but there was hope now.
"Hopefully, now that our Joint Permanent Commission (JPC) has resumed, something good will come out of it.
"But this doesn’t take away the initiative to keep pushing. There are things that call for immediate reaction. For clearing agents, for example, to get access to the port, they are only given badges.”
Annet Mukayiranga, an official in the Ministry of EAC Affairs who accompanied the lawmakers to the PSF meeting indicated that the situation is improving.
She said that most of the issues raised by local traders have been raised in quarterly business breakfast sessions.
Mukayiranga added: "And with the new political government, we are in agreement. Things are actually better.
"Regarding clearing and forwarding, the Tanzania Investment Centre (TIC) office is soon moving here [Kigali] and some of your issues will be solved.”
Mukayiranga and the lawmakers admitted that persisting issues are linked to the common market protocol implementation angle as Partner States are still struggling with harmonizing laws.
At the onset, lawmakers told representatives of Rwandan hoteliers, tour operators and transporters that both ends can do better by enhancing coordination and communication to timely find solutions.
Hajabakiga said: "Whenever there is an issue, always contact us. The Council of Ministers has bureaucratic processes but we are available and we shall readily help.”
"Do not wait for meetings to address issues. There are various open channels. You can reach any Rwandan lawmakers or write directly to the EAC Secretariat” siad Christopher Bazivamo.
The Assembly is working to get to the bottom of issues affecting the regional economic bloc’s integration agenda. Hajabakiga’s team is in the country, until June 28, to sensitize citizens on the overall integration process, create awareness on the gains and challenges of integration, and enhance mutual relationships and sustainable networking between EALA and Rwandans.
The lawmakers’ ongoing outreach and sensitization programme is themed: "EAC Integration Agenda: Accessing the gains,” and it commenced in all EAC Partner States on June 9.