- It has been backed to revolutionise the region’s trading landscape by streamlining reporting, monitoring and resolution of impediments traders face.
- This is by seamlessly blending SMS, e-mail, and phone reporting methods, offering economic operators a one-stop solution for effective reporting.
Image: HANDOUT
The East African Community in conjunction with TradeMark Africa has unveiled an innovative app geared towards eliminating non-tariff barriers among member states.
It has been backed to revolutionise the region’s trading landscape by streamlining reporting, monitoring and resolution of impediments traders face as they conduct business across borders.
This is by seamlessly blending SMS, e-mail, and phone reporting methods, offering economic operators a one-stop solution for effectively reporting non-tariff barriers to trade.
By streamlining the NTB reporting process, EAC says the app will aid traders and producers in tackling obstacles that impede their trade efficiency and competitiveness.
“Additionally, it will ensure transparency and quick resolution of issues by engaging technical and policy-level mechanisms, such as National Focal Points, National Monitoring Committees (NMCs) and the Regional Monitoring Committee (RMC).”
A 2023 EAC Regional Meeting Committee (RMC) report estimates the direct costs of NTB’s at $16.7 million (Sh2.6 billion) and total trade impact at $94.9 million (Sh14.7 billion), decreasing trade by an average of 58 per cent.
However, since 2017, EAC says it has resolved 89.5 per cent of the reported NTBs, translating to a relatively steady decrease in reported NTBs.
“In recent years, from 2021 to 2023, the number of reported NTBs complaints has remained stable, ranging between eight and 11 cases annually, with a significant improvement in the resolution of NTBs reported to an average of 88.3 days,” the report reads.
“Between June 2022 and June 2023, a total of 16 NTBs complaints were reported within EAC. Out of these, nine have been resolved while seven complaints remained in progress."
It adds that a significant number of them were addressed and resolved (56.25%) within the given timeframe.
However, a notable portion of complaints, specifically (43.75%) were still in progress by the end of June 2023.
The report on the impact of NTBs is concurred by the recent report on regional commerce by the East African Business Council (EABC), which shows the economies are losing millions on the back of stiff trading policies, including the slow implementation of agreed taxation rules.
It accuses policymakers of not putting their words into action, agreeing on significant policies but delaying implementation.
“This has seen East African Community member states frequently flout the Common Market Protocol and undermine the regional integration agenda through the imposition of non-tariff barriers to trade and repeated requests for preferential tax treatment and exemptions,” the report reads.
“The value of trade among the EAC member states fell by more than 33 per cent ($1.8 billion) to $3.6 billion in 2022, from $5.4 billion in 2021 mainly impacted by trade in cereals, which fell to $285.5 million from $607.2 million, and trade in mineral fuels, which fell to $175.1 million from $618.2 million in the period under review.”
Nevertheless, the report notes that trade in sorghum and rice declined, but intra-export trade in maize increased by about 63 per cent to $187.1 million from $114.6 million.
Speaking during the app launch, EAC deputy secretary general in charge of customs, trade and monetary affairs Annette Ssemuwemba, said the app marks a pivotal moment in creating a smooth trading environment across the region.
“We are dedicated to eradicating the barriers that impede economic growth and integration. This innovative solution serves as a powerful tool to empower traders, producers and economic operators offering them a unified platform to promptly address and resolve NTBs,” Ssemuwemba said.
She added that the removal of NTBs holds paramount significance in fostering a more efficient and equitable trade environment, saying they are often in the form of procedural complexities, or administrative hurdles, hindering the smooth flow of goods and services.
“Empowering the private sector to report NTBs encountered and enabling them to track the progress of the NTB through the app is key to enhancing the business environment in the region, we hope that this will be the turning point in effectively identifying and swiftly resolving NTBs in the region.”