John Bosco Kalisa, the CEO of the East African Business Council (EABC), is calling for "a green channel for East African products” at the border to boost intra-regional trade and the competitiveness of the region.
A green channel means that goods produced in the region should be accorded priority clearance over those imported outside the region, Kalisa told The New Times on Saturday, February 12.
"So, it means faster clearance for regionally produced goods. It is something new and we want it to be implemented at all EAC borders to boost made in East Africa,” he said.
Intra-East African Community (EAC) trade dropped by 5.5 per cent, to $5.9 billion in 2020 due to the Covid-19 pandemic, officials revealed on September 29, 2021, during a webinar focused on regional trade and investment recovery amidst the pandemic. It was noted that intra-EAC trade figures stood at $6.3 billion in 2019, an improvement from $6.1 billion in 2018 – indication that the gains made in 2019 were wiped out in 2020.
The regional business body also wants the bloc’s Covid-19 Pass quickly adopted.
Partner States were, on January 7, called upon to fast-track the adoption of EAC Pass, a harmonized system to facilitate cross-border movement, in a bid to end persistent border traffic snarl-ups disrupting intra-regional trade. It is the only digital Covid-19 certificate mobile app accepted by the EAC.
During an EABC trade facilitation forum held at the Taveta/Holili One-Stop Border Post (OSBP), on Friday, the Principal Secretary in the Ministry of EAC and Regional Development of Kenya, Kevit Desai, said the Partner States will soon adopt the EAC Covid-19 Pass to ease the movement of East Africans amid the pandemic. The Taveta/Holili One-Stop Border Post is on the Kenya-Tanzania border.
Dr. Desai called for collective efforts towards trade facilitation and value addition to boost manufacturing. He urged East African businesses people to boldly tap into the markets of the DR Congo and the African Continental Free Trade Area (AfCFTA).
The leaders of women cross-border traders noted that un-harmonized measures on Covid-19 increase the cost of business operations. They cited the $10 antigen test on the Tanzania side while on the Kenya side it is free of charge. Women cross-border traders also noted that the EAC Simplified Trade Regime is not implemented as envisioned.
At the forum, Kalisa said: "Taveta/Holili One-Stop Border Post cleared 33,000 cargo trucks in 2021, a 73% increase from 19,000 in 2020.”
The increase in the volume of trade, he said, underscores the importance of eliminating Non-Tariff Barriers for the quick recovery and resilience of EAC economies.
According to an EABC statement, levies on transit and EAC originating goods (East African products) by the counties in Kenya and re-testing of products by Bureaus of Standards are among other hurdles raised by the business leaders during the forum.
Women cross-border traders recommended for more sensitization campaigns on the EAC Simplified Trade Regime, customs procedures and formation of clusters as well as consolidation of products to be deployed in order to ease trade.
Dr. Desai urged for regular holding of the joint border management committees, strengthening partnerships to set up the Jumuiya Market at Taita/Taveta and explained that the Ministry’s Business Reforms Unit will work closely with the EABC and Chambers of Commerce to analyze counties’ regulatory compliance.
Kalisa said that Holili/Taveta OSBP links the northern and central corridor and has high potential to transform into a leading trade hub on the continent.
The forum also recommended cross-border traders be permitted to cross and do business up to 10 kilometers on both sides of the border.
The EABC Trade Facilitation Forum was attended by more than 60 delegates including officials from trade facilitation agencies, importers, exporters, transporters and freight forwarders, Eastern African Sub-Regional Support Initiative for the Advancement of Women (EASSI) and women cross-border traders.