New facility to boost regional trade

The United States Agency for International Development (Usaid) on Thursday launched an initiative dubbed Usaid Trade Infrastructure Programme as part of efforts aimed at enhancing efficiency of regional trade. The three-year programme, worth $5.7 million, seeks to reduce the time it takes to clear goods at Rwandan borders, reduce technical barriers to trade, and enhance the country’s ability to export as well as import goods through increased regional integration. It was formally launched at a signing ceremony between Usaid and Trade Mark East Africa (TMEA), the implementing agency at the US Embassy in Kigali. Peter Malnak, Usaid Mission Director for Rwanda, said Rwanda being a landlocked country has to be efficient in terms of reducing the time it takes for imports to get into the country and exports getting to the ports. He added that the new funding will focus on improving efficiency, supporting infrastructure development and reducing non-tariff barriers. “With the reduction in delays, the country’s competiveness will be enhanced,” Malnak said. Trade Mark Senior Director Country Programs Mark Priestly said government agencies, civil society and the private sector will all benefit from the new programme, which complements the Rwanda Electronic Single Window system that brings together all the agencies needed to clear, approve and charge duty on imports and transit goods. He added that the new programme will bring on board new agencies like the Ministry of Agriculture, Ministry of Health, Rwanda Bureau of Standards and the Rwanda Development Board which will enhance efficiency. Pascal Ruganintwali, the deputy commissioner general, RRA, said the programme will help streamline the operations of tax administration and transform the tax body into a model institution in the region. “This project will strengthen Rwanda’s customs procedures and will also mark the beginning of a long journey towards improving regional integration,” he said. Since the East African single customs territory was rolled out in January this year, clearance time for cargo destined for Kigali has reduced from 21 days to six days. The cost of clearing a container has since also reduced from close to $5,000 to $3,387. The USAID Trade Infrastructure Programme will build on such successes and work closely with the EAC and the Government of Rwanda.

National

New facility to boost regional trade