1. GTZ Workshop Magaliesburg, South Africa, May 24, 2006
Support of Regional Business Organisations in East Africa (SRBO-EA) - a GTZ Project
Non-Tariff Barriers Monitoring Mechanism – A Regional Level Action Programme for BIC Reform
GTZ Workshop Magaliesburg, South Africa, May 24, 2006

2. Overview SRBO-Project Overview & Achievements
Non Tariff Barriers Monitoring Mechanism Process
BCI Survey Main Findings
Monitoring & Complaint Mechanism Approach
Operational Aspects
Lessons Learnt

3. SRBO-GTZ project Objectives
Institutional strengthening of EABC
internal: administration, planning,
management
external: Positioning & PR set up
Awareness building:
influence public perception on regional integration
Issue management: establish think tank and core lobby functions

4. SRBO-EA Achievements
EABC: until 2003 a one-man show with 19 fee-paying members, 20,000 US$ income p.a.
now 55 members (20 associations and 35 corporations); income 90,000.- US$ p.a.
Communication: Website, newsletters, Information dissemination to 2000 executives (leave us your business card to be included in our database)
Sensitization Roadshows on Customs Union (1500 business people)
Regular national/regional events/2 major conferences
Top Level Lobbying (meetings with Heads of State)
Munich Trade & Investment conference (75 participants from EA)
Non-Tariff Barriers Monitoring Mechanism (NTB MM)

5. Approaches to Policy dialogue at EABC
Big themes (research/working groups, lobbying, evaluation)
CU, NTB‘s, Competitiveness Alliances
Individual member issues
Regulatory process at EAC
ad hoc fire fighting & damage control
Media, EAC secretariat, national governments

6. Non Tariff Barriers Monitoring Objectives
Evidence on non-tariff barriers in day-to-day cross border trade
Perceptions on business climate in East Africa on a continuous basis
Create powerful PR instrument for benefit of EABC
Engage corporations, the public sector and the media into a continuous dialogue on business conditions in East Africa.

7. NTBs in trade – „Compensation measures”
EABC has opened public debate on NTB’s in trans-border trade in a critical moment:
(Customs Union started in 2001)
NTBs as “Nationalistic Compensation measures”
customs, immigration, administrative procedures and regulations, licenses, weighbridges, police roadblocks
All other factors affecting the business climate in general such as infrastructure

8. NTB MM Process

9. BCI Coverage (1) Coverage
584 companies operating in the East Africa Region of which 195 from Kenya, 140 from Tanzania and 249 from Uganda
62 government ministries, departments and agencies (“private sector is part of the problem”)
Overall response rate
78% (business response being 77% and government 82%)
Position of respondents
84% at the levels of senior and top management.

10. BCI Coverage (2)
Sectoral Distribution of Businesses:

11. BCI Main Findings Part I (Example No. 1)

12. Main Findings Part I (Example No 2) Time for Registration & Licencing
Procedure
Country
1 to 5 days
6 to 10 days
11 to 30 days
over 30 days
over 2 weeks
Home country
Kenya
67%
14%
13% 7%
19%
Tanzania
76%
12% 5%
17%
Uganda
50%
25%
15%
10%
Other countries
80% 6%
90% 3% 2% 4%
79% 8%
11%

13. Main Findings Part II (Example 1) Perceptions on Business Climate The Improvement Index EAC Comparison

14. NTB Monitoring mechanism (MM)
EABC has been asked to establish an effective mechanism for the elimination of NTBs in East Africa (with respect to those identified in the BCI study and others that will come up in the future)
Two elements
Agreement on NTBs as outcome of BCI and their elimination based on benchmarks
to establish an effective mechanism for channeling of company complaints, monitoring and elimination of NTB’s

15. NTB MM Approach Consolidate baseline data
Buy-in from national level agencies:
National Plans (problem, impact, responsible, approach, benchmarks, bottlenecks, solutions)
Action planning with governments at national level (TOR, Structures, Set up, Financing)
EAC proposal adopted
Implementation started
BCI Survey No. 2 in 2006 to check on progress

16. ACKNOWLEDGED LIST OF KEY NTBS
Customs and administrative documentation procedures
Immigration procedures
Cumbersome inspection requirements
Police road blocks
Varying trade regulations among the three EAC countries
Varying, cumbersome and costly transiting procedures in the three EAC countries
Duplicated functions of agencies involved in verifying quality, quantity and dutiable value of imports and export cargo
Business registration and licensing

17. INSTITUTIONAL SET-UP FOR REPORTING AND GIVING FEEDBACK ON PROGRESS OF NTBS ELIMINATION
Businesses
Business association of chamber of commerce
Line ministry or agency responsible for taking action on an NTB
National Monitoring Committee
EAC Secretariat
EAC Sectoral Committee on Trade, Industry and Investment
EABC
EAC Council of Ministers
EAC Trade Remedies Committee
NTBs reporting flow
NTBs feedback flow
The EAC Co-ordination Committee

18. YARDSTICKS TO MEASURE IMPACT OF NTBS
Official payments
Non-official payments
Other expenses (e.g. staff costs, storage costs, etc)
Quantify lost business opportunities
Value of product waste (eg perishable goods)
Cost of time lost in understanding and complying with un-transparent procedures

19. Lessons Regional integration: competition is key
International Benchmarking is basis
Need Credible Survey as basis (high coverage, be specific on problems, limit agenda)
NTBs: Private Sector is part of the problem
Public & Private sector as partners
NTB MM is powerful PR instrument for benefit of business associations
Overall Business climate monitoring is an attractive addition to NTB MM
NTB MM has helped to stimulate policy dialogue

20. Thank you for your attention!
Busso von Alvensleben
ICON GmbH
Advisor, East African Business Council
Support of Regional Business Organisations
in East Africa (SRBO-EA) - a GTZ Project