Project profile — Improving Border Management to Reduce Trade Costs in East Africa



Overview 

CA-3-A035577001
$12,000,000
TradeMark East Africa
2013-12-23 - 2019-09-30
Closed
Global Affairs Canada
WGM Africa

Country / region 

• South of Sahara, regional (100.00%)

Sector 

• Trade policy and administrative management:
Trade policy and administrative management (33110) (30.00%)
Trade facilitation (33120) (70.00%)

Policy marker 

• Gender equality (significant objective)
• Environmental sustainability (cross-cutting) (principal objective)
• Participatory development and good governance (not targeted)
• Trade development (principal objective)
• Biodiversity (not targeted)
• Climate change mitigation (not targeted)
• Climate Change Adaptation (not targeted)
• Urban issues (not targeted)
• Desertification (not targeted)
• Children's issues (not targeted)
• Youth Issues (not targeted)
• Disability (not targeted)
• Indigenous Issues (not targeted)
• ICT as a tool for development (significant objective)

Description 

This project aims to contribute to sustainable economic growth by reducing trade costs in East Africa. The project seeks to reduce trade costs by speeding up and modernizing border and customs management systems within the East African Community (EAC). The project provides expertise, training and funding to help the EAC member states and the EAC Secretariat speed up, integrate, streamline, and improve the gender sensitivity of their border management systems. The project also works to streamline customs clearance and revenue-sharing procedures within and between countries. Some project activities include: (1) equipping and setting up 14 one-stop border posts (whereby traders only need to stop at one border stop that is jointly managed by both border countries, using a single set of shared procedures) to help streamline joint customs clearance procedures; (2) using information technology and web-based procedures to fight corruption by reducing interaction between border officials and traders and by ensuring transparency in how customs duties are determined; and (3) supporting the EAC Customs Directorate to negotiate and establish a legal framework to share customs revenue regionally, allowing customs revenue to be collected at the first port of entry and transferred to the ultimate destination country.

Expected results 

The expected outcomes for this project include: (1) integrated border management processes used at selected border posts, in tandem with targeted gender activities; and (2) one-stop border policy and procedures agreed.

Results achieved 

Results achieved up to the end of the project (December 2019) include: (1) an average reduction of 70% in border crossing times at select EAC borders; (2) an 80% reduction in documentary requirements for the release of exports/imports; (3) a reduction in turnaround times from 21 days to 4 days along the Northern Corridor (Mombasa to Kigali), and 25 days to 5 days along the Central Corridor (Dar es Salaam to Bujumbura); (4) a reduction in cargo clearance times from 2 days to 8 hours for fuel, and 3 days to 12 hours for other products; (5) a 47% increase in traffic volume thus increasing government revenues at select borders; and (6) inter-state cooperation was strengthened between multiple government agencies and private sector players operating at the 14 border posts. Gender equality oriented results include: (1) institutionalization of structured dialogue between women traders and border officials through the Joint Border Committees (JBCs); (2) launch of cross-border charters which define the rights and responsibilities of all traders and border officials and provide accountability mechanisms towards improving the trading environment, especially for women; and (3) provision of space for information centers and warehouses, which meet the specific needs of women traders.

Budget and spending 


Original budget $0
Planned disbursement $0
Transactions
Transaction Date Type Value
03-12-2019 Disbursement $600,000
Country percentages by sector
Type of finance Aid grant excluding debt reorganisation
Collaboration type Bilateral
Type of aid Project-type interventions
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