Trade Mark East Africa (TMEA) yesterday initiated a $7.5 million (over Rwf 4.5 billion) fund dubbed Trade Mark East Africa Challenge Fund-TRAC  to finance innovative projects from the five East Africa partner states that focus on eliminating challenges that hamper regional trade. The fund, that will run for a period of three years, targets private sector and civil society organisations.  TMEA is a multi-donor funded agency that provides support for increased regional trade and economic integration and accelerates the implementation of the East African Community (EAC) protocols towards regional integration. "A challenge fund such as this provides a great opportunity for us to therefore approach business directly and tap into the well of creativity and entrepreneurship that exists out there,” Mark Priestly, the Country Director of Trade Mark East Africa, said during the launch.Priestly noted that several challenges such as non-tariff barriers, compositeness  and the supply side constraints still hampering the region’s fragile trade."In particular, we are looking for innovative and new ideas for stimulating trade and overcoming the trade challenges that Rwanda and the region face,” he added.TRAC fund grant invests in innovative projects started by the private sector and civil society organisations that can boost regional trade within the East Africa community.  The fund has already been introduced in Kenya and Tanzania and would soon be launched in Burundi and Uganda as well.The Minister of Trade and Industry, Francois Kanimba, said the fund is a timely initiative that will help the country leapfrog its economy to a service-based one through increased exports  to bridge the country’s trade deficit."This initiative will open the door to businesses which have innovative projects but have so far been unable to finance them due to the inherent risk involved,” the minister said."TRAC includes instruments to deliver policy and institutional change increasing its ability to deliver systematic change. It’s a niche fund that compliments other funds in operation”.Kanimba said the challenge fund was an opportunity for Rwandans to compete regionally in accessing the funds to develop their businesses."You have to work hard to be able to get this significant share (of the funds). You will be competing with other regional applicants. However, Rwandans should utilise this chance and submit their proposals as soon as possible.” Some of the projects to be given priority include manufacturers who set up an innovative supply chain to source raw materials like cotton vegetable oil seeds from other EAC countries thus enabling more productivity. Others are telephone companies that reduce calling costs by investing in new technologies that overcome infrastructure constraints among others.Experts say the fund highlights a stronger need for both the private sector and civil society to play a role in the integration process."When you want people to own the integration process, then the best way to go is to let the private sector lead the way because the integration must be business oriented,” Davis Mukiza, a local business consultant, pointed out.Accordingly, the project targets innovative projects proposed by private firms that have the ability to increase cross border and international trade, promote climate resilience and environmental sustainability.The fund will also facilitate the service industry to develop creative projects to reduce the cost of trade in East Africa. The funding will be based on cost sharing where businesses will be expected to demonstrate ability to finance half the cost of the project.TRAC officials clarified that each applicant should not exceed a budget of $350,000.The TRAC country coordinator in Burundi Robert Nkiiko said online applications are open.He added that a committee comprising TMEA officials would screen applications and successful applicants would receive funds within six months.Experts are optimistic that the fund would also boost technology transfer, bridge the competitiveness gap that currently exists among member states where some are landlocked which leads to an increase in the cost of doing business.