East Africa’s simplified trade regime helps small-scale merchants do business across borders with ease
The East African Community is implementing a Simplified Trade Regime designed to help small-scale cross-border merchants by reducing red tape and customs bureaucracy.
Under the new arrangement, traders with goods valued below USD 2,000 enjoy a simplified hassle-free clearance process with assistance from customs officials stationed at our border stations, according to the Secretary General of the East African Community (EAC) Veronicah Nduva.
“On the other hand, the introduction of regional electronic cargo tracking systems (RECTS) and single customs territory (SCT) has reduced smuggling and increased tax revenues,” said the EAC Secretary General, adding that digital systems have improved customs efficiency and transparency.
Speaking during the ceremony to commemorate the International Customs Day at the EAC headquarters in Arusha, SG Nduva disclosed that the community actively works to eliminate Non-Tariff Barriers (NTBs) and bureaucratic procedures and restrictive trade policies.
“Non-tariff barriers’ Monitoring Mechanism helps report and resolve trade challenges.”
The EAC Secretary General, urged EAC Partner States Customs authorities to embrace state-of-the-art tools including artificial intelligence (AI) to streamline customs procedures across the region, adding the adoption of AI would also go a long way in combating illicit trade within the region.
At the same time called upon the customs authorities to demystify customs procedures and explain them in simpler terms to stakeholders and members of the public, adding that integration in East Africa was essentially about the people at the grassroots.
“Their responsibilities now encompass raising public awareness and building capacity to promote a deeper understanding of trade regulations and fostering greater cooperation among stakeholders,” said Nduva.
The EAC’s total trade with the rest of the world rose to USD 80.6 billion in 2023, up from USD 78.7 billion in 2022.
Foreign Direct Investment (FDI) grew from USD 3.7 billion in 2013 to USD 12.9 billion in 2021, reflecting increased confidence in the region’s trade systems.”
The Secretary General said that EAC has adopted a Common External Tariff (CET) which has helped regulate imports from outside the EAC, protecting local industries.
Speaking at the ceremony, the President of the Federation of East African Freight Forwarders Associations, Charles Rubaale Mwebembezi, said that the private sector would continue to audit customs systems to ensure that they become better.
Mwebembesa said that his association would also vouch for simplification of customs procedures, reducing delays, eradicating corruption and promoting private-public private approaches to resolving issues in customs.
On his part, Alban Odhiambo, the Senior Advisor for Trade and Infrastructure at the Tony Blair Institute, called for a mindset change even as the continent adopts new technologies.
Odhiambo observed that there has been a challenge at the borders whereby problems including congestion of trucks and delays continue at border posts even in instances where new technologies have been put in place.
“The introduction of regional electronic cargo tracking systems (RECTS) and single customs territory (SCT) has reduced smuggling and increased tax revenues. Digital systems have improved customs efficiency and transparency.”