Following the success of trade facilitation interventions in East Africa, TradeMark East Africa, (TMEA) has obtained funding for a second phase (2018- 2023) with a budget of about $380 million for infrastructure development, trade facilitation and private sector growth.
According to official figures significant efficiency gains have been achieved at the ports and borders, and by revenue authorities as well as agencies and firms involved in trade logistics between 2010 and 2017.
Mombasa Port has seen a 52% reduction in import time and 59% reduction in export time. Similarly, the Dar es Salaam port has reported 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 (modernisation of customs and revenue authorities1); and private sector engagement, according to the East Africa Trade Development Forum (TDF).
Kenya, East Africa’s largest economy, moved 12 places up to position 80 from 92 in the previous year in the World Bank’s Ease of Doing Business 2018 report.
South Africa is ranked 82nd. There are, however, a number of challenges for TMEA and the region’s governments to tackle. Ethiopia dropped from 159 in the ranking in 2017 to 161, despite strong economic growth.
Reforms included removing the requirement to open a bank account for company registration and eliminating minimum capital requirement.
It also strengthened its customs authority to speed up cross-border trade. Tanzania increased land and property registration fees, while making it easier to obtain construction permits. Its ranking dropped five places from 132 to 137.
Burundi, which increased the cost of business registration and Uganda, which introduced only one reform, dropped seven places each to rank 164 and 122 respectively.
War-torn South Sudan and Somalia are at the bottom of the ranking, at 187 and 190 out of 190 respectively.
Quote: 50% The decrease in time taken to cross borders
