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The 2018 East African Trade Development Forum was hosted at Munyonyo Speke Resort from 28th February to 1st March. Here is the full speech by H.E Edward Kiwanuka Ssekandi, the Vice President of Uganda.
Ladies and Gentlemen,
You are welcome to the East African Trade Development forum 2018. On behalf of the Government and the people of Uganda, I extend a warm welcome to all of you and invite you to enjoy the hospitality of our Country.
We commend the good working relationship with our Development Partners in tackling the bottlenecks and the cost of doing business that hinder our export competitiveness.
I wish to thank the organizers of this trade development forum which is timely in assessing our trade facilitation journey and I reaffirm the Government of Uganda’s commitment to the EAC Integration agenda.
H.E Edward Ssekandi is ushered in to the 2018 EAC Trade Development Forum held at Speke Resort Munyonyo.
The forum provides an opportunity to share key milestones/ results achieved in our regional integration with support from our development partner Trade Mark East Africa in the past seven years. It will highlight their goals and objectives for the new six year strategy (2018 -2023).
In our EAC integration drive, we have made significant progress since the launch of EAC Customs Union in 2005 that include;
From 2006, EAC intra exports increased from US 1.07Bn to USD 1.22Bn Dollars by 2016 while the intra EAC imports increased from USD 1.07Bn dollars recorded in 2006 to USD 1.43Bn Dollars by end of 2016.
Establishment of the EAC Customs Union and the subsequent Common Market and Monetary Union that will come into force in 2023.
In the recently concluded EAC Summit of 23rd February 2018, whose theme was “Enhancing Social Economic Development for Deeper Integration of the Development of Deeper Integration of the Community,” we recommitted to the construction of 286 infrastructure projects over a ten year period and this will link the region.
As EAC Heads of States we have committed ourselves by 2025 to have upgraded 7,600km roads, laid 4,000km SGR, and increased the combined installed capacity of electrical power generation from 4245MW to 6734MW.
Hon Edward Ssekandi receives President Museveni’s gift at the 2018 EAC Trade Development Forum held at Speke Resort Munyonyo.
In additional, the region hopes to construct 3,000km of oil pipeline and an oil refinery, and improve efficiencies at the Mombasa and Dar es Salaam ports.
How is the performance of the region in improving the business / trade facilitation environment?
I note a reduction in the cost of doing business within the EAC countries from 2006 to 2015; as per the World Bank doing business statistics; costs to export and import for the EAC countries have reduced for the EAC countries.
Export costs per container for Burundi reduced from USD 6,742 in 2006 to USD 2,905 by 2015.
Export costs per container for Kenya reduced from USD 3,883 in 2006 to USD 2,255 by 2015
Export costs per container for Rwanda reduced from USD 5,154 in 2006 to USD 3,245 by 2015
Export costs per container for Uganda by end of 2015 stood at USD 2,800
Export costs per container for Tanzania reduced from USD 1,716 in 2006 to USD 1,090 by 2015
A number of trade facilitation initiatives have been undertaken with support of our development partners especially TradeMark East Africa.
Between 2010 and 2017, efficiency gains have been achieved at the ports and borders, and by revenue authorities in clearance of cargo and other agencies involved in the international trade clearance chain.
On the larger front, the average transport costs on the Northern Corridor have declined by an average of 48% from US$4.06/Km in 2010 to US$2.1/Km in 2017 while costs have declined by an average of 11% from US$3.37/km in 2010 to US$3.00/km in 2016 on the Central Corridor.
TMEA has invested in improving port efficiency in the Mombasa and Dar Ports. I am glad to report that there has been a 28% reduction in import time (11.6 days in June 2017 from 16 days in 2010) and 53% reduction in export time (6.8 days in June 2017 from 14.6 days in 2010) at the Dar es Salaam port.
TMEA has supported the implementation of the East African Single Customs Territory since 2014. Through these interventions, transit time from Mombasa to Kampala has been reduced from 18 to 4 days and from 25 to 5 days from Dar es Salaam to Kigali.
Automation of processing of key trade documents along the Central and Northern Corridors has contributed to the reduction of document processing time from an average of 79 hours (3.3 days) to 2 hours while the cost per transaction reduced from average of US$72 to US$10.
The 2018 EAC Trade Development Forum held at Speke Resort Munyonyo.
Other initiatives specific for Uganda that were implemented in partnership with TMEA over the last six years include;
Construction and operationalisation of the 3 One Stop Border Posts (OSBPs) at Busia OSBP with Kenya, Mutukula OSBP with Tanzania, Mirama Hills OSBP with Rwanda
Supported the establishment of Electronic single window that interconnects 16 border agencies and economic operators aimed at reducing the clearance time for international trade that includes imports, exports and transit.
Reduction of Non Tariff Barriers (NTBs) through the implementation of a web based NTB reporting system that is key in addressing the identified NTBs among the trade facilitating institutions.
Constructing a web based portal for export, import and transit information in Uganda.
Women in Trade – TMEA empowered women’s participation in intra-EAC trade through a number of interventions including the sensitization of 4776 women traders on EAC trade procedures.
In relation to Improving Business Competitiveness, TMEA has delivered a number of initiatives including supporting improvements in maize standards for farmers in pilot districts of Nakaseke, Masindi and Lira and Sesame standards.
As I conclude;
The Government of Uganda has enjoyed a productive partnership with TMEA and pledges to offer its support as TMEA embarks on its second phase 2018-2024.
I commend the Ministry of Works, URA, Ministry of Finance, URC, UNRA, Uganda Free Zones Authority and the Ministry of Trade, Industry and cooperatives for working closely with TMEA to deliver good results.
Special credit goes to Hon. Amelia Kyambadde for taking lead in the trade sector with TMEA.
We thank the Donors, TMEA CEO and TMEA Uganda Country program team for excellent results delivered.
The 2018 East African Trade Development Forum was hosted at Munyonyo Speke Resort from 28th February to 1st March. Here is the full speech by Hon. Amelia Kyambadde (MP), the Minister of Trade, Industry and Cooperatives.
Ladies and Gentlemen.
Trade is one of the major pillars in the East African Integration process. Considerable progress has been made in the EAC economic integration agenda. The establishment of the EAC Customs Union and the subsequent Common Market and Monetary Union that will come into force in 2023 are major milestones towards a fully-fledged EAC Economic integration.
Along with other initiatives, EAC Partner States have prioritized infrastructure development in order to promote trade.
EAC recorded a 19.5 percent decline in trade to US$44.6 billion in 2016 from US$55.4 billion in 2015. Overall, total EAC trade was meager and accounted for only 0.3 percent of global trade in 2016.
Uganda’s Trade with EAC.
The EAC is Uganda’s second export destination. Currently, Uganda’s exports to EAC are valued at $711.3m and these are mainly coffee, tea and spices, cereals, tobacco, sugar, iron and steel with Kenya as Uganda’s number one export destination within EAC. Uganda’s imports from EAC are valued at $530mare these are mainly salt, sulphur, lime and cement, iron and steel.
Trade Facilitation in EAC.
Trade facilitation is critical to the enhancement of competitiveness in the EAC region. Between 2010 and 2017, EAC government Ministries, Agencies and Departments, and Private Sector stakeholders have made significant efficiency gains in the management of Ports and Borders. For example, Mombasa Port has seen a 52% reduction in import time and 59% reduction in export time. Similarly, Dar-es- Salaam Port has seen a 28% reduction in import time and 53% reduction in export time. There has been on average a decline of 50% in the time it takes to cross borders.
The key enablers have been better trade infrastructure – both hard (roads, ports, one stop border posts), and soft (ICT for trade especially electronic single trade portals and cargo tracking); institutional building (modernization of customs and revenue authorities); and private sector engagement.
TradeMark East Africa (TMEA) and, her partners have played an important role in these achievements and valuable lessons have been learnt.
Frank Matsaert, CEO, TradeMark East Africa addressing the 2018 East African Trade Development Forum held at Speke Resort Munyonyo.
Trade Facilitation Initiatives through TMEA.
Between 2010 and 2017, significant efficiency gains have been achieved at the ports and borders, and by revenue authorities in clearance of cargo, as well as agencies and firms involved in trade statistics through the following initiatives;
Establishment of the Electronic Single Window.
The system has so far integrated 8 trade regulatory agencies with plans to have a total of 22 agencies interconnected by the end of 2018.
One Stop Border Posts(OSBPs).
Three (3) OSBPs have been constructed and completed; these include;
Mutukula OSBP with Tanzania,
Busia OSBP with Kenya, and
Mirama Hills OSBP and Ntungamo – Mutukula Road
All the border posts are operating under one stop controls which means that a transporter or traveller clears only once, on one side of the border.
With the construction of the OSBPs, there has been an average reduction in border crossing time of at-least 50%.
Reduction of NTBs through the NTB Reporting System.
With support from TMEA, the Ministry of Trade, Industry and Cooperatives is implementing a web based Non-Tariff Barrier Reporting System which facilitates the reporting and resolution of NTBs among trade facilitating institutions. As a result over 86% of all NTBs reported through the system have been resolved. This,, in turn, has reduced on the delays and costs of moving goods in and outside of Uganda across trading member states.
The Trade Information Portal.
Government with support from TMEA is in the final stages of developing a One Stop Portal for export, import and transit information in Uganda.
It is an online platform where all the information regarding export, import and transit of goods in Uganda will be availed to traders, government agencies and all interested parties. The portal will provide the traders with all the necessary information to enable them undertake the transaction on Electronic Single Window. The two platforms are therefore complementary.
Support to Women Cross Border traders.
Uganda’s comprehensive Cross Border Trade Strategy was commissioned in 2017 with support from TMEA. The strategy aims at simplifying trade processes for informal traders especially the women and youth. Digitization will be a key intervention too for the implementation of the strategy to promote inclusiveness
THE EAST AFRICAN TRADE DEVELOPMENT FORUM.
Kenya Revenue Authority (KRA) Commissioner General John Njiraini addressing the 2018 East African Trade Development Forum held at Speke Resort Munyonyo.
Against the above milestones in trade facilitation, TradeMark East Africa in collaboration with the Ministry of Trade, Industry and Cooperatives has organized the organized a biennial forum for its partners, stakeholders and the trade development community to review, reflect and exchange ideas on progress TMEA and its partners are making in trade facilitation in East Africa.
The initiative that was initiated in the year 2010 will be held from Wednesday 28th February to Thursday 1st March 2018 at Speke Resort Munyonyo and the Vice President will be the Guest of Honor.
The objective of the East African Trade Development Forum is to showcase the exciting results we have achieved with our partners during our Strategy One (2010-2017), share lessons learnt, and discuss Strategy 2 (2018-2024).
The forum will provide an opportunity to share with a wide regional and international audience TMEA’s partners’ results achieved during the last seven years. The event will recognize the many exceptional partnerships that have contributed to the successful results achieved together and focus on sharing knowledge and learning on what has worked and the challenges.
Objectives of the forum.
The objectives of the East African Trade Development Forum include;
To showcase the tremendous results TMEA and the Ministry of Trade, Industry and Cooperatives and our partners have achieved during the past 7 years of the TMEA Strategy One (2010-2017)
Share the lessons learnt during the implementation of TMEA Strategy One
Discuss TMEA Strategy 2 for the next 6 years (2018-2024)
Establishment of vibrant permanent platforms for sharing knowledge and experience amongst partners over the next six years.
Forum Format and participants.
The Forum format will be high-level, interactive and participative. We will combine a mix of experiential, plenary and breakout sessions spread over the two days. The experiential sessions will include a ‘Wall of Trade’ depicting EAC trade Corridors, real-time cargo tracking; and women-in-trade live exhibits. Break-out session topics will cover areas of trade facilitation such as information and communication technology for trade; trade logistics; trade infrastructure, logistics and transport corridors; industrialization and jobs through cluster development; women in cross-border trade, and new ways of funding trade development.
The Forum will aim to establish vibrant permanent platforms for sharing knowledge and experience amongst partners over the next six years.
Partners and participants will be drawn from both our regional and international trade development communities. The forum will be graced by H.E. Edward Kiwanuka Ssekandi, the Vice President of the Republic of Uganda as the Chief Guest. Key speakers will include Ali Mufuruki our Board Chair, Development Ministers and distinguished speakers from trade facilitation and Aid for Trade fields.
The trade development community is therefore cordially called upon to embrace the forum which will deliberate on issues that directly impact on trade in the East African Region.
Busia, February 24th, 2018: H.E. Uhuru Kenyatta, President of the Republic of Kenya and H.E. Yoweri Kaguta Museveni President of the Republic of Uganda joined by Amb. Liberat Mfumukeko, East African Community Secretary General, officially launched the Busia One Stop Border Post (OSBP) located on the Kenya/Uganda border, today.
Construction of the Busia OSBP was carried out with funding of US$11.7million from the United Kingdom through the Department for International Development (DFID) while the systems and other related soft infrastructure equivalent to US$1.2million was funded by Global Affairs, Canada.
The OSBP investment includes office buildings, roads and parking yards, cargo verification bays, scanner shed, passenger sheds, targeting booths, warehouse and canopies, ICT networks and hardware, furniture, and institutional support to the border agencies. The OSBP ensures effective border control mechanisms are in place.
Museveni and Uhuru shake hands after commissioning the Busia One Stop Border Post.
It will boost trade by cutting the time taken to clear goods between the two nations, thus contributing to a reduction in transport cost, whilst increasing volumes of transhipment cargo through the Central Corridor. It is expected that time to cross the border will reduce by at least a third.
An OSBP is a “one stop” form of border crossing point jointly managed by adjoining Partner States, where multiple border agencies cooperate and collaborate with each other, and effectively coordinate their activities to maximise their operational efficiency. OSBP arrangement brings together under one roof, all the Government agencies performing border crossing controls procedures, doing away with need for motorised traffic and persons to undergo clearance twice at both sides of the border.
This arrangement expedites movement, release and clearance of goods and persons across borders, by streamlining border procedures, automation of the border processes and simplification of trade documents.
Speaking at the event, Uganda president H.E Yoweri Museveni said, “I want to thank the British government who have supported us through TMEA, in the construction of the one stop border post making it easy to cross the borders and to do business with Kenya. Trade is a means that will help us create prosperity for the people. My government is committed to creating wealth and jobs for the people through creation of enabling environment for services, Information Communication Technology, commercial agriculture and industries.”
Addressing the crowd, Kenyan President H.E Uhuru Kenyatta commended TMEA for its support to the government and underscored the importance of the OSBP saying, “This facility is an important link for ease of trade between our two countries. Uganda continues to be an important trading partner for Kenya. Opportunities for increased trade and investment have been created. I am happy to hear that because of this OSBP here in Busia, our revenue authority has been able to collect more revenues, a clear indication of increased trade flows.”
EAC SG Amb. Liberat Mfumukeko “Much as the One Stop Border concept may look new to some people, the framers of our integration instruments envisioned the need for these facilities and embedded them in the EAC Customs Union Protocol at the time of its negotiation. The first OSBP operations was at Malaba railway station between Uganda and Kenya over ten years ago. At the same time Customs Departments having realized that multiple examination of goods at our internal borders was wasteful and caused unnecessary costs to business, started joint examination of cargo of which Busia Border was a pioneer. These pilot programs provided a practical justification for upscaling the One Stop Border program in the entire region.”
UKAID has provided over USD 52million to the East African Transit Improvement Programme (EATIP) through TMEA, as a contribution to the World Banks’ East Africa Trade and Transport Facilitation Project (EATTFP).
The Head of DFID Kenya, Pete Vowles said, “The UK government is proud to have made such an important contribution to improving regional trade in East Africa through our establishment and leadership of Trade Mark East Africa. By cutting red tape, reforming customs processes and improving roads, ports, and border posts, the UK is supporting the creation of an environment essential for businesses to grow and trade with each other. The completion of the Busia border post marks an important milestone towards our goal of reducing by a third the time to import from the EAC and the rest of the world.”
Over the years, delays in cross border clearance were attributed to duplication of handling procedures on either side of the border, poor institutional arrangement and cargo management systems inadequate physical infrastructures and services and immigration management.
The new established OSBP has already addressed some of these challenges. Surveys indicate that since operationalisation of the OSBP early this year, the average time to cross the Busia border has reduced by 84%.
TMEA CEO Frank Matsaert (L) with other officials at the launch of the Busia OSBP.
TMEA CEO Frank Matsaert, said, “The completion and operationalisation of the Busia OSBP is a crucial milestone in increasing access to markets and the facilitation of the movement of cargo along the Northern Corridor. When initially investing $12 million with our donors, the United Kingdom and Canada, greater access to markets, increased efficiency that would reduce costs by reducing time and improved infrastructure were just a few of our end goals. Ultimately, our projects in physical infrastructure and automation of key government trade processes like customs, have complemented each other to reduce the cost of doing business and boost trade volumes, increasing both Kenya’s and Uganda’s overall trade competitiveness. Most importantly, they have contributed to governments being businesses being able to expand thus creating jobs.”
Busia border happens to be one of the busiest in East Africa handling transit to and from Great Lakes region of Rwanda, Burundi, DRC and South Sudan. Based on recent TMEA independent Time and Traffic Survey, total weekly traffic count Busia Kenya is 3324 vehicles and 1784 for Busia Uganda. Most importantly, this border handles the largest number of informal cross border traders in the EAC.
TMEA through its donors and in partnership with the East Africa Community has since 2010 to date supported 15 OSBPs in East Africa including South Sudan and has invested about US$117 million in OSBPs and access roads. They are: Kenya and Uganda’s Busia/Busia, Kenya and Uganda’s Malaba/Malaba, Rwanda and Uganda’s Kagitumba/Mirama Hills, Tanzania and Uganda’s Mutukula/Mutukula, Kenya and Tanzania’s Holili/Taveta, South Sudan and Uganda Nimule/Elegu, Burundi and Tanzania’s Kobero/Kabanga and lastly Tunduma on the Tanzanian side.
Busia town was treated to one of the biggest East African Community celebrations as Presidents; Yoweri Museveni of Uganda and his Kenya counterpart Uhuru Kenyatta officially launched the Busia One Stop Border Post – OSBP.
Museveni and Uhuru plant a tree each as part of the launch of the Busia One Stop Border Post.
OSBP is an integrated border system that leads to improved efficiencies through streamlined, coordinated and harmonized procedures under one roof/structure.
TradeMark East Africa – TMEA with support from UK’s Department for International Development (DFID) and partners has developed “15 OSBPs in East Africa including South Sudan and has invested about USD 117 million in OSBPs and access roads. Estimates of benefits show a return of about about 30 for every dollar invested.”
Frank Matsaert – CEO of TradeMark East Africa gets a well deserved thank you handshake from President Uhuru Kenyatta.
Several dignitaries from Uganda, Kenya, EAC, and Europe attended the colourful event held at the Busia Uganda Revenue Authority (URA) clearance compound. Thousands of residents from Busia Uganda and Busia Kenya also witnessed the commissioning with soft drinks and entertainment on the house; something that further exciting the already appreciative gathering.
Some of the performers at the Busia OSBP launch.
At the event, speaker after speaker showcased how the Busia OSBP was changing lives of traders and tourists alike with both President Museveni and Kenyatta thanking TradeMark East Africa for a great trade facilitation job it has implemented across EAC over the past 8 years.
Busia OSBP launch had representatives from Uganda, Kenya, EAC and Europe.
How OSBPs are facilitating Trade.
In Uganda, 4 OSBPs are operational, managed by URA and Ministry of Trade. These are Mutukula OSBP at the Uganda-Tanzania border, Mirama Hills OSBP at the Uganda-Rwanda Border, Busia OSBP at the Uganda-Kenya border and Malaba OSBP also at the Uganda-Kenya border.
Since, their establishment, OSBPs have significantly improved trade, movement of people and cargo across EAC.
TradeMark East Africa, Uganda Team at the launch of the Busia OSBP.
In 2011, it took 45 hours for cargo to cross the Mutukula border at the Uganda-Tanzania. By 2017, this had reduced to only 4 hours, leading to a 90% time saving.
Again, in 2011, it took some 14 hours for cargo to cross the Busia Border ( Uganda-Kenya). Cargo crossing time as of 2017 had reduced to only 4 hours. This can only get better.
Lastly, in 2011, it took 1.5 hours for cargo to cross the Mirama Hills Border ( Uganda-Rwanda). Today, the same cargo takes only 20 minutes to cross the same border.
Investments in border infrastructure has led to reduced time for cargo to transit through the main corridors and to cross borders thus enhancing the regions interconnectedness in trade.
This has contributed to the EAC being touted as one of the most integrated regions as attested by the 2016 African Regional Integration Index Report.
OSBPs have equally improved cross border trade with cross border traders getting easier access to markets, simplification of their clearance process and better work relations with border officials.
Trade Minister, Hon, Anne Amelia Kyambadde will from 28th February to 1st March host the 2018 East African Trade Development Forum at Speke Resort Munyonyo.
The forum which brings together senior trade stakeholders from East Africa and global funders is organized by the ministry of trade together with TradeMark East Africa (TMEA).
According to a statement from the ministry of trade, the objectives of this forum are;
To showcase the tremendous results TMEA and the Ministry of Trade, Industry and Cooperatives and our partners have achieved during the past 7 years of the TMEA Strategy One (2010-2017).
Share the lessons learnt during the implementation of TMEA Strategy One.
Discuss TMEA Strategy 2 for the next 6 years (2018-2024).
Establishment of vibrant permanent platforms for sharing knowledge and experience amongst partners over the next six years.
Uganda President Yoweri Museveni and Kenya President Uhuru Kenyatta will this Saturday 24th February officially launch the Busia One Stop Border Post (OSBP).
OSBP is an integrated border system that leads to improved efficiencies through streamlined, coordinated and harmonised procedures under one roof/structure.
Under the One-Stop Border Post framework, border agencies of two given countries sharing a common border and involved in clearance of goods and persons operate under one roof, with traffic crossing the border only stopping at one side of the border.
The construction of the physical infrastructures for Busia OSBP started in August 2013 and was completed in May 2016 on the Ugandan side; and started in April 2012 and was completed in July 2017 on the Kenyan side.
Other OSBPs around Uganda include Mirama Hills connecting Uganda to Rwanda, Malaba connecting Uganda to Kenya.
TradeMark East Africa – TMEA with support from UK’s Department for International Development (DFID) and partners has developed “15 OSBPs in East Africa including South Sudan and has invested about USD 117 million in OSBPs and access roads. Estimates of benefits show a return of about about 30 for every dollar invested.”
In what is clearly a ‘boiling battle’ for the internet market sub sectors, Telecoms are doing everything in their means to retain current data users but also woo news ones.
The latest development in the sector is for MTN Uganda’cutting its data prices by about 100 per cent, just weeks after Airtel Uganda did the same.
Below is the full statement.
MTN Uganda has revised data rates to continue the drive towards ensuring offering affordable internet to Ugandans. The reduction in data is expected to drive further internet connectivity, facilitate business growth and enable communication through internet-based channels. The rate reduction, according to Wim Vanhelleputte the MTN Uganda CEO is an indication that as uptake and internet usage continues to grow, the internet rates will also continue to fall.
“What we are currently witnessing is data revolution coming into full swing. The reduction in pricing is by over 100%, indicating our commitment towards internet connectivity and affordability for all,” he said.
The revised data bundles are not just price based but also include increased volumes for a lower price. For instance, the lower data bundle threshold has been increased to 15MBs from 10MB at a price of Shs250. For Shs5000, a customer would get 325MB. With the new rates, a customer get 1GB for that price. This is more value for the customer at the same price.
For Shs100,000, you can now get Shs30GB for a month. In the old rates, a customer had to pay Shs285,000 to get 30GB.
“It is important that our customers not only get lower rates, but also experience a good quality network – where we are keen to continuously invest; everywhere. MTN Uganda over a two year period of 2017 and 2018 has budgeted over Ugshs 400 Billion invested in network upgrades in order to improve customer experience. This will increase our 3G sites and 4G/LTE sites to deliver a bold digital world to our customers,” he added.
Olivier Prentout the MTN Uganda Chief Marketing Officer (center) is flanked by other dignitaries and MTN Uganda staff soon after receiving the Digital Brand of the Year award that MTN Uganda won at the Digital Impact Awards Africa (DIAA) 2017 awards night held at the Kampala Serena Hotel. The award was presented to him by the DIAA Patron, Hon. Karubanga David, State Minister for Public Service. MTN Uganda took home four other awards which cemented their position as the number one telecommunications company in Uganda.
According to Wim, MTN Uganda’s planned investment will upgrade the network in order to ensuring quality, good coverage and better experience. Further investment in the network also means the internet speeds continue to improve, which will facilitate business growth and innovation.
“In the world right now, the internet is driving innovation to unprecedented levels. We are seeing this in our numbers and data continues to be one of the fastest growing sources of revenue and subscriptions for MTN Uganda. We expect this trend to continue,” Wim pointed out.
MTN Uganda at the end of December 2017 had approximately 12 million subscribers. The ambition is to have at least two thirds of all MTN subscribers connected to the internet. This will happen with more affordable data, reliable network and affordable internet-enabled handsets.
Mr Lino Criel Icila, the secretary general of the Uganda Clearing Industry and Forwarding Association (UCIFA) has come out and assured trade stakeholders that the adoption and usage of the Uganda Electronic Single Window as a cargo clearance tool will not impact on jobs in the sector.
Launched in November 2016, the Uganda Electronic Single Window is a paperless platform that leverages technology to facilitate international trade through allowing for electronic submission of information, documentations and processing of import, export & transit related trade documents and requests.
Mr Lino’s position came at the back of some stakeholders fighting the electronic platform as they see it as a tool that may lead to underemployment and eventually unemployment for them.
But in a recent interview, Mr Lino was quick to note that debating electronic clearance vs jobs in the sector is a wrong perspective as even with the presence of this automated system, there is still physical work to be done.
“That is not a correct perceptive. Single Window doesn’t real have a direct impact on the jobs. It is a system of operation. Of course, it is true that with any automation, some processes are cut down thus the necessity to reduce staff. But it won’t be a very big impact. Because, even with the electronic system, there are still several things that still require man power. Electronic only does document logging, reading and accessing information and getting releases. Our staff still do physical verification, cargo delivery and supervision among others,” he explained.
He noted that since its launch, the single window has reduced both time and costs involved in cargo clearance in addition to ensuring that clearing and forwarding agents are paid promptly.
“Clearing Agents are paid when goods are delivered so when you deliver on time, you are paid immediately and when you delay, your payment also delays. In all the system is facilitating trade and benefiting all stakeholders,” he revealed.
Nonetheless, he challenged the government and her trade partners to work on the challenges that are currently affecting this system.
“There are three things that need to be addressed. Network issues need to be fixed because the system is internet enabled, have all trade agencies on board and massive sensitization so that all stakeholders move in the same direction.” he concluded.
Busia Traders, Customs Agents, URA, KRA, KenTrade and Uganda Single Window Team.
In Uganda, the National Electronic Single Window was rolled in November 2016 while in Kenya, KenTrade – National Electronic Single Window System was launched in 2014. The Rwanda Single Window was launched August 2016. In all these three countries, the single window systems are implemented by the sitting governments, supported by TradeMark East Africa, DANIDA, UNCTAD and other development partners.
The Kampala City Traders Association (KACITA), through its chairman Everest Kayondo, has asked the government and her development partners to ensure that there is both faster and reliable internet at the border posts as this will guarantee seamless electronic cargo clearance.
In an interview at the start of 2018, Mr Kayondo noted that while electronic cargo clearance platforms such as the Uganda Electronic Single Window (UESW) were facilitating trade through reducing both time and money spent in cargo clearance, unreliable internet would undo the progress made so far.
“ There is a challenge of internet because some time, internet goes off and once it is off, all this science we are talking about including goods tracking and data capturing will fail. Once there is internet breakdown, there is a total mess,” My Kayondo highlighted, adding;
“At one time loaded trucks were at the border of Malaba and they were stretching to about 20kms. All these couldn’t be cleared because internet was down. So there must be a backup force to ensure that internet does not break down and when it does there is an immediate solution.”
KACITA’s position is further supported by trade stakeholders at the Busia One Stop Border Post (OSBP).
Eric Onyango, a Ugandan Customs Agent at the Busia OSBP recently noted that just like any other new system, the Electronic Single Window still has some ‘teething issues’, key on the list being internet connectivity.
“One of the major challenge is connectivity and network instability. It is very hard to convince a trader used to going to customs desk to process documents that there is no network so they can’t be served. The other issue is systems interfaces. Since all these related organizations have been merged in to one window, sometimes you find a challenge that one agency is hanging. This one agency will hold you until when that problem is sorted,” Onyango stated, adding;
“There is also an issue of correspondence. Under this new arrangement, we are not supposed to have eye to eye contact with the traders. But we still have that culture whereby sometimes you can send an email and no one responds to it. You realize that at the end of the day, if you don’t call that person and talk to them, then nothing will proceed.”
The Uganda Electronic Single Window (UESW) is a paperless platform that leverages technology to facilitate private sector trade. The system allows for electronic submission of information, documentations and processing of import, export & transit related trade documents and requests.
In Uganda, the National Electronic Single Window was rolled in November 2016 while in Kenya, KenTrade – National Electronic Single Window System was launched in 2014. In both countries, the single window systems are implemented by the sitting governments, supported by TradeMark East Africa, DANIDA, UNCTAD and other development partners.
