1. DOING BUSINESS ALONG THE NOTHERN CORRIDOR : NTBs AND OTHER CHALLENGES
José Maciel Director, Trade Facilitation (Non-Transport) TradeMark East Africa 20th November 2012

2. THE NORTHERN CORRIDOR

3. THE NORTHERN CORRIDOR
Within EAC, the corridor begins at Mombasa port to Bujumbura via Uganda and Rwanda, covering 1,970 kilometres
Outside EAC, connects to South Sudan, Democratic Republic of Congo, and Ethiopia
On average 600 trucks use the corridor daily

4. DOING BUSINESS ALONG THE NORTHERN CORRIDOR: NTBs
1. Behind-the border
Police road-blocks
Kenya: 24 (Business Climate Index Survey, 2011)
Uganda: 21
Burundi: 4
Rwanda: 2
Weigh-bridges (1-3 hours spent on each weighbridge):
Kenya: 12 weighbridges
Uganda: 5
Corruption

5. DOING BUSINESS ALONG THE NORTHERN CORRIDOR: NTBs
2. At the Border
Lack of mutual recognition of standards marks and retesting of goods; additional time to reach the market and costs associated with retesting goods
Multiplicity of regulatory bodies; NSBs, SPS authorities

6. NTBs – Impact Study EAC & COMESA, 2009
On average, NTBs added >5% to landed cost of goods.
On average 20% of annual shipments faced some form of NTBs. For some companies it was 100%.
Average direct additional cost of NTBs per shipment was US$3,500 – excluding bribes!
It was often taking an average of 6 days to clear goods through Customs.
Average cost of border delays (where experienced) was 11% of landed cost
Companies spend approx US$145,000 per month on employees time and accommodation costs due to NTBs and delays.

7. NTBs: TMEA INTERVENTIONS
Legally binding mechanism with possibility of sanctions: draft law with the EAC now
Bilateral negotiations
Survey of NTBs along Northern Corridor (Mombasa-Kigali) for production of a documentary film
Strengthening NMCs
Online monitoring system
Regional harmonization of standards
EACQIS

8. Asanteni Sana!