HiPipo Money

Nicholas Kalungi.

The Uganda COVID-19 Taskforce has suggested several stringent measures to address the issue of cross-border Cargo Trucks Drivers importing the feared coronavirus in to Uganda.

This comes in the aftermath of some 22 Cargo Trucks Drivers testing positive of COVID-19 in the last two weeks, ending 26^th April. These include 11 new cases recorded on Thursday 23th April. On that alarming day, 6 Tanzanian truck drivers who arrived via Mutukula Border post and 5 Kenyan truck drivers who arrived via Malaba (3) and via Busia (2) tested positive of this dreaded disease.  Plus 4 newer cases were reported on Sunday, 26^th April – all of Cargo drivers that entered Uganda through Mutukula.

By Sunday 26^th April -23:00pm, Uganda had a total of 79 confirmed COVID-19 cases; including 46 recoveries and 33 active cases.

The tough measures that have been brought forward to address the cross border trucks drivers’ issue include but not limited to; mandatory tests of truck drivers at the cost of the freight forwarders ( trucks owners), each truck having a crew of two ( driver and 1 assistant) on-board, designating a maximum of three refreshment stops for trucks while on Ugandan soil, prohibiting drivers from interacting with the public and Uganda Revenue Authority (URA) acquiring 5000 new Regional Electronic Cargo Tracking (RECTs) Seals to be embedded on to all trucks that enter Uganda for easy automatic locating and monitoring.

All these are very good, pragmatic, and achievable. They will supplement the other measures already in place in winning the COVID-19 war. Nonetheless, there is one strange, call it offbeat recommendation.

This odd proposal is for freight forwarders to adopt mandatory RELAY DRIVING for their trucks by end of May, 2020. Just like it is in athletics, relay driving in this case would mean, a truck coming from Mombasa having the same driving crew until Malaba, but as soon as they reach Malaba One Stop Border Post, this crew will pass on the truck to another set of drivers, who will also handover the truck to another crew for the case of transit cargo whose final destination is outside Uganda. At every exchange, the COVID-19 taskforce recommends thorough decontamination of each truck.

Allow me debunk this relay driving suggestion.

First and foremost, about 70 per cent of Cargo Trucks that enter Uganda are in transit whose final destinations are Rwanda, Burundi, Dr Congo, Central Africa Republic and South Sudan, etc. If you are to implement Relay Driving, all trucks in transit will need a minimum of 6 crew members altogether. That is to say, two from Mombasa to Malaba, two from Malaba to Elegu and another two from Elegu to inland South Sudan; in case that is the final destination. For freight forwarders to undertake this, they must deploy resident drivers in every country they operate in. Uganda’s main inland port – Malaba border post alone clears about 1200 incoming cargo consignments and about 800 outgoing trucks per day. You can do the rest of the math on the costs that will be involved, with Malaba as one example.

Secondly, less than 20 per cent of the cargo trucks that arrive in Uganda are driven by Ugandans. A big majority of these cargo trucks’ drivers are Kenyans and Tanzanians. As a country, our professional truck drivers’ manpower is very limited. These trucks are also largely owned by Kenyan and Tanzania companies. For the record, the biggest freight forwarders company in Uganda owns about 200 trucks and the second biggest has less than 100 trucks.

Thirdly, because we have very few professional and experienced truck drivers, it will be ‘attempted murder’ to the side of the trucks and other road users if these trucks are handed over to drivers with limited competence and experience. Such an act will be the mother of more road accidents, and damage beyond repair to these trucks’ operating/engine systems. Depending on the manufacturer’s technology mastery; a system of a normal trailer has several differences with that of a straight box, car transporter, jumbo, flatbed, tanker or lowboy. The differences become even more complex and vary from one cargo truck maker to another. Indeed Sinotruks are different from MAN, Renault and Mercedes-Benz.

Lastly, as observed by Kenya Transporters Association, “both the security and safety of the cargo will be compromised by the multiple drivers that will be involved in a single haulage if Relay Driving is implemented. Truckers will also face hurdles in tracing driver’s responsibilities on trucks misuse, damages and theft of fuel and parts.”

The long and short of this is that Uganda lacks sufficient professional and experienced drivers to implement this relay driving suggestion. Plus relay driving if adopted will leave truckers compromised with hefty costs, insurance, and safety challenges in addition to several trucks being damaged beyond repair.

Meanwhile, with effect from today 27th April, Rwanda Revenue Authority has taken up Relay Driving, declaring that all cargo and conveyors shall be offloaded and transshipped at customs points of entry – border posts. This is very unfortunate.

Just like USA President, Donald Trump has repeatedly said; “the cure can’t be worse than the problem itself. Be careful, be safe and use common sense!”

The writer is a communications and financial inclusion expert.

nicholaskalungi@gmail.com

Our Reporter.

As part of government efforts to combat the spread of the dreaded COVID19 disease, all truck drivers driving into Uganda via the different border points are required to present themselves to the Ministry of Health officials for testing.

On the 12th of April, 2020 a truck driver enroute to Southern Sudan went through the same procedure before clearance by immigrations and Uganda Revenue Authority (URA) to proceed with his journey.

24 hours later, the results came back and one of the drivers tested positive. The hunt for the positive immediately kicked off.

The Regional Electronic Cargo Tracking System (RECTS) was used to trace the actual movement of the driver from Malaba OSBP up to Corner Kamdini Customs Check point where he was intercepted.

Implemented by Revenue Authorities, for Uganda – URA, the RECTS project is funded by the Department of International Development (DFID) through TradeMark East Africa.  It is now operational in Kenya, Uganda, Rwanda and DRC.

RECTS utilizes the Global Positioning System (GPS) to trace the movement of trucks from their point of entry in a country right up to the point of exit to curb cargo dumping among many other risks along trade routes.

Following this interception, a team led by Hon. Amelia Kyambadde Uganda’s Trade Minister who is also the Chairperson of the National Covid19 Taskforce, met at the URA headquarters to further discuss how they can take advantage of the Electronic Cargo Tracking System in the fight to combat the spread of Covid19.

Kyambadde was accompanied by Gen. Katumba Wamala the Co-chairperson of the Taskforce who is also the Minister of Works and Transport together with other dignitaries from the Ministry of Internal Affairs and the Ministry Of Health.

The URA Commissioner General, John R Musinguzi took the team on a tour of the Regional Electronic Cargo Tracking System Control Centre and they witnessed how trucks are electronically trailed in real time from the points of entry up to when they exit the country. They also visited the Central Command Targeting Center where they witnessed real time monitoring of activities at the borders.

This monitoring can further provide information to the National Covid19 Taskforce on what is happening at the borders in terms of whether people are practicing and adhering to the medical guidelines issued such as social distancing, washing and sanitizing their hands, who is sneaking into the country and so much more.

The Taskforce together with URA management further discussed how to utilize the tracking system to ensure safety of truck drivers in a bid to combat the spread of Covid19.

“RECTS tracks the driver’s phone and the vehicle. Whereas the system was originally meant to avert the diversion of transit goods into the home market, RECTS has of recent proved that it can be a solution to track drivers in this COVID-19 pandemic. We have received a request from URA for more electronic seals to enable them track more vehicles in transit,” Moses Sabiiti, the TradeMark Country Director for Uganda and South Sudan noted following this development.

TradeMark EA through its CEO, Frank Matsaert a few days ago announced that it will spend USD 20 million on the SAFE TRADE Project aimed at ensuring that Trade continues without endangering lives. This USD 20 million will be shared by the over 11 countries TradeMark EA it operates in, depending on each country’s unique needs.

We have since understood that Uganda’s share of the USD 20 million will be announced before or around the 1st week of May. Part of this allocation will be spent on buying RECTs devices commonly referred to as seals.

Our Reporter.

With the ugly head of Corona Virus already causing havoc both globally and locally, a lot of adjustments are being implemented to ensure that as many people as possible can walk through this dilemma safe and healthy.

From a trade perspective, TradeMark East Africa is engaging East African Countries on formulating a safe cross-border trade policy that will ensure that even as countries prioritize the combating of the COVID19 pandemic, trade continues without endangering the citizenry.

This was revealed by Frank Matsaert – the TradeMark CEO who in an interview with SMART 24 TV noted that he has had very positive engagements with partners and a safe cross-border trade stimulus is on the cards.

“We are putting resources together to formulate the safe trade emergency facility. We are working with EAC governments and private sector; particularly agencies at the border points. This will help our economies keep moving,” Frank Matsaert said, adding;

“Probably next week, I will be announcing this facility officially. We are stepping up our efforts. This is a critical challenge of our time. We have to think not just about the short term but medium term.”

HiPipo has since confirmed that the TRADEMARK EA SAFE TRADE budget is USD 20 million to be shared by about 11 countries it currently operates in.

Further, according to Frank Matsaert, the best way to fight the economic impact of the corona virus pandemic is by supporting business continuity and front-line staff for now, facilitating safe cross-border trade and focusing on Trade policy reforms.

Support business continuity and front-line staff now.

Allow essential industries to continue to work to ensure the free flow of trade- particularly of food and medical-related items.

Protection of front-line and essential services workers to mitigate spread.

Facilitate safe cross-border trade.

Increase internal and external border agency collaboration.

Streamline and simplify regulatory and border procedures to facilitate trade.

Extend border agency working hours to accommodate COVID measures and additional Port health checks to allow for increased trade flows of critical commodities and for logistics providers to more adequately manage cargo movement.

Focus on Trade policy reforms, such as:

Tariff reductions that can contribute to reducing the cost of goods and services.

Reducing tax and administrative burdens on importers and exporters.

Reducing the cost of food and other products heavily consumed by the poor (price controls if necessary).

Developing macro-economic measures to limit the negative economic and social impact of the COVID19 crisis as it unfolds.

Craft economic recovery and resilience strategies to avert future crises.

Ends.