By ALLAN ODHIAMBO & JAMES KARIUKI
Posted
Thursday, January 28
2016 at
02:00
KAMPALA. Uganda, Kenya and Rwanda have struck a deal to jointly clear cargo at the Kilindini port and monitor consignments on transit on a single electronic platform.
Kenya Revenue Authority (KRA) commissioner general John Njiraini said the regional cargo tracking system would enable the three countries to seamlessly monitor cargo from Mombasa to Kigali and eventually Juba, curbing revenue leaks.
“This approach will remove the opportunities presently exploited by crooks at the changeover of seals at border points by requiring affixation of only one seal to be disarmed on arrival at destination,” he said.
Mr Njiraini said the countries at the meeting in Mombasa on January 16 agreed to establish joint enforcement teams to police transit cargo operations, besides other actions including the centralisation of transit cargo clearance at Kilindini port.
The tracking system comprises satellites, a central monitoring centre and special electronic seals fitted on cargo containers and trucks, which give the precise location of goods in real time.
The system triggers an alarm whenever there is diversion from the designated route, an unusually long stopover or when someone attempts to open a container. Besides curbing theft of cargo, the system also helps to seal loopholes that cause the country losses in revenue through suspected under-declaration of the value of exports or theft of cargo. “The new system’s key strength is that unlike presently, the three Northern Corridor countries, shall use one system and one platform, with seamless visibility from Mombasa to Kigali and eventually Juba,” Mr Njiraini said.
Trade in East Africa has become increasingly seamless following the adoption of a Single Customs Territory (SCT) system. Under the SCT deal that began in 2014, clearing agents with East African Community have been granted rights to relocate and carry out their duties in any of the partner states as part of a strategy to improve flow of goods and curb dumping.
Kenya, Rwanda and Uganda were the first to take up the SCT arrangement starting April 1, 2014 with Tanzania joining the scheme two months later.
Faster integration of exchanges
Meanwhile, East Africa has agreed to fast-track the unification of the four bourses via an online portal allowing cross-trading in securities.
In a joint statement, the East African Securities Association through the chairman, Mr Pierre Celestone Rwabumbuka, urged member bourses to fast-track integration of the Kenya, Uganda, Tanzania and Rwanda bourses to create sustainable markets that support growth of individual economies.
Nairobi Securities Exchange chief executive Geoffrey Odundo said NSE plans to launch a mobile trading platform of treasury bonds enabling the government to access cheap money locally.
On its part, Rwanda said it was in the final stages of automating its trading infrastructure that will see the bourse connected to a central depository system, the Central Bank of Rwanda and to the Real Time Gross Settlement System.
Uganda said that it had automated its systems with government bonds planned for listing soon and that it had put in place an inter-depository receipts system that enables Kenyans and Ugandans to cross trade.
The heads of the regional bourses were speaking in Rwanda Kigali in two day conference that started on Jan 20.
editorial@ug.nationmedia.com
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