USAID COMPETE Best Practices in Expediting Trade and Transport

REDUCING BARRIERS TO TRADE IN ECA REGION

The views of the presenter may not Data compiled by USAID COMPETE from various studies completed in 2009

Best Practices in Expediting trade and transport Borderless 2013 Accra Ghana Thursday February 21

David Adolwa Regional Transit Advisor USAID COMPETE Program

PRESENTATION OUTLINE

INTRODUCTION BACKGROUND MALABA EXAMPLE

WHAT NEEDS TO BE DONE WHAT IS BEING DONE USAID COMPETES INTERVENTIONS

COMPETE FACT SHEET

Northern Corridor

Central Corridor

http://www.eastafricancorridors.org/home

http://www.eastafricancorridors.org/home

Dar Corridor

2 3.5 4 4.5 5

6 7

8

11

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2

4

6

8

10

12

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Kilom

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Cost per Kilometer

COST PER KILOMITER

The high cost of transport is the most significant barrier to trade and investment in East and Central Africa. Africa remains the most fragmented continent and is composed of micro economies excluding Nigeria, South Africa and Egypt. Africa is home to the majority of landlocked countries and least-developed countries. Intra-African trade is very low. At an average of 10 to 20 %, the level of trade among African countries compares unfavourably with other regions of the world. Intra-trade among the EU-27 is around 70 per cent, 52 per cent for East Asia, 50 per cent for North America and 26 per cent for South America. A major constraint to regional and international trade is the high transaction costs for trade across borders in East Africa due to deficiencies in soft and hard infrastructure. The problem is even more severe for the landlocked East African Countries that include Rwanda, Burundi, DRC and South Sudan.

Port Procedures 49%

Border Post Controls

13%

Vehicle Breakdown

9%

Insecurity 9%

Others 7%

Personal 5%

Weigh Bridges 3%

Customs Checks 2%

Police Road Blocks 2%

Escorts 1%

Source: USAID COMPETE

Local issues58%

Bilateral issues25%

Regional issues17%

WHERE ARE THE ISSUES?

LETS GO TO AN EAST

AFRICAN BORDER

MALABA

UGANDA

KENYA

2009 • 650 Trucks per day

• Frequent power outage

• Single lane bridge

• Corruption

• Insecurity

• Turf wars

• Incompetence

• Multiple inspections up to

12 separate inspections

• Delay up to 3 days

2012 • 1,000 Trucks per day

• Frequent power outage

• Single lane bridge

• Greater transparency

• Improved security

• Collaboration amongst

agencies

• Joint inspections

• Border open 24/7

• 3 hours border crossing

time

REDUCING BORDER PAIN

• Ports handling capacity

• Roads infrastructure

• Rail/pipelines

• Border Posts infrastructure

EXPAND AND IMPROVE HARD INFRASTRUCTURE

• Automate clearance processes

• Reduce Human/Human intervention

• Reduce Paper work

• Collect Data

DEPLOY ICT SOLUTIONS

• Change Culture

• Defuse Tensions

• Promote Best Practice

• Eliminate border/HQ disconnect

OPTIMIZE SOFT INFRASTRUCTURE

• Roads

• Weigh Bridges

• Cranes

• ICD

• One Stop Border Posts

• Customs Clearance Systems

• Single window systems

• Revenue Authority Digital Data Exchange

• Single Window Operations Systems

• Joint Border Committee • Lean Operations • Joint Inspections • Resource Sharing • Joint Resource Mobilization • Private Sector Participation • Best Practices • Training

JICA, WORLD BANK, TMEA , AFDB

USAID COMPETE FOCUS

Multi-sectrol collaboration of key Government agencies as well as Private Sector involved in the clearance of cargo for the purpose of:

• Define of critical operational challenges at the borders

• Enhancing inter agency collaboration at border post

• Promoting the sharing of available resources at the border

• Creating a trade facilitation mind set

• Defusing tension and conflict between public and private sector

• Eliminating the disconnect with HQ

• Rationalizing control and regulation at the border

The Joint Border Committee

Government Agencies Private Sector

Local Government Development Partners

OUT BOUND

CUSTOMS CONTROL AREA

IN BOUND


INBOUND


OUT BOUND


ONE STOP BORDER POST


ONE STOP BORDER POST


WITH SUPPORT OF

TMEA/ JICA/ AFDB

AND WORLD BANK

COMPETES JOURNEY THROUGH ECA

Over 201,000 km Travelled

Over 1,900 persons mobilized

Over 75 Government Agencies involved

3 Corridors covered

16 border posts visited and Joint Border Committees established at each border post

R A D D E x REVENUE AUTHORITY DIGITAL

DATA EXCHANGE

Cargo Truck

Customs Data

KEY TO SYMBOLS

International

Sea Port

Inland Border

Post

Destination or

Origin of Cargo

• Bench marked to WCO standards and simplified across all the five EAC countries.

HARMONIZED CUSTOMS PROCEDURES

• which aims at enhancing cargo clearance through operational space that Post Audit provides.

POST CLEARANCE AUDIT MANUAL

• Enables businesses to understand the Customs Valuation procedures and processes. It adds to the efficiency of clearing processes through avoidance of valuation related disputes.

CUSTOMS VALUATION MANUAL

REGIONAL CUSTOMS PROCEDURES

ONE STOP CENTER – DAR PORT

THANK YOU VERY MUCH FOR YOUR ATTENTION

123 Gardenia Road off Magnolia Road, Gigiri

P. O Box 1555 – 00606

Nairobi, Kenya

T: +254-719-032-000

F: +254-719-032-271

E: [email protected]

www.competeafrica.org

THE COMPETITIVENESS & TRADE EXPANSION PROGRAM

USAID COMPETE Best Practices in Expediting Trade and Transport

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