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#TDF2018: Full Speech of Hon Amelia Kyambadde at the 2018 East African Trade Development Forum.

Derrick Kasasa.

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;

  1. 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%.

  1. 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.

  1. 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.

  1. 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;

  1. 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)
  2. Share the lessons learnt during the implementation of TMEA Strategy One
  3. Discuss TMEA Strategy 2 for the next 6 years (2018-2024)
  4. 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.

Hon. Amelia Kyambadde (MP)

Minister of Trade, Industry and Cooperatives.

Efficient border crossing to boost trade between Kenya and Uganda.

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.

Colour and Pomp as Museveni, Uhuru commission Busia One Stop Border Post.

Derrick Kasasa.

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.

Hon Amelia Kyambadde to host East African Trade Development Forum.

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Derrick Kasasa.

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.

 

Museveni and Kenyatta to launch Busia One Stop Border Post this Saturday

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Derrick Kasasa.

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.”

 

 

MTN reduces data prices by ‘over 100 per cent’.

Derrick Kasasa.

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.