Border Delays in EAC Bloc Sorted

The East African Community (EAC) in partnership with the United States Agency for International Cooperation (Usaid), Thursday launched a software platform for customs and transit data exchange, management and reporting.

The Revenue Authorities Digital Data Exchange (RADDEx 2.0) allows for real time-transmission of customs document to authorised public and private sector users at key border posts and cities across the EAC partner states.

A statement issued here jointly by EAC and Usaid said the improved software system would reduce time and cost of transiting borders, an anomaly which has frustrated efficient movement of people and goods in the region.

“RADDEx 2.0 saves businesses and governments’ time and money by shortening cargo processing times and reducing the number of officials needed to process cargo”, the statement added.

Some of the largest non-tariff barriers to trade and cost to businesses in East Africa are delays at border crossings. Trucks waiting for goods to be cleared on both sides of a border can result in significant costs to the shipper.

Difficulties at the border include inefficient paperwork processes, lack of advance notification of goods, fraudulent declarations and lack of efficient information exchange between regional revenue authorities.

The Usaid EA-funded Corridor Diagnostic Study (CDS) estimated the cost of border delays for 40-foot container trucks.Based on that estimate and the number of trucks that pass through the Malaba border post between Kenya and Uganda, RADDEx could save businesses that use the Malaba border approximately $50 million each year.

In his remarks at the launch, the EAC director of Customs Kenneth Bagamuhunda stated: “RADDEx 2.0 offers a secure information bridge that allows authorised users to access crucial customs declaration information that speeds the transit of goods across the borders”.

He said the system would be owned, operated and maintained by revenue authorities of East Africa. It has been developed by EAC and the national revenue authorities.