REMOVAL OF NON-TARIFF BARRIERS ON EAST AFRICA MAIN TRANSPORT CORRIDORS REDUCES TIME TO TRADE

EAC Elimination of NTB Act cited as landmark milestone supporting the progressive elimination of NTBs within the EAC. NTB Act a first in Africa

April 21st, 2016, Nairobi: A recently conducted independent evaluation of the Non-Tariff Barrier (NTB) to trade programs in East Africa indicate that removal of key NTB’s have contributed to a 14 per cent reduction in time taken to import goods from each East African country. Further, it has contributed to a 20 per cent reduction in time taken to export goods from each EAC country (from 33 days to 26 days).

The report is based on NTB programmes valued at US$ 7.89 million and supported by TradeMark East Africa. NTBs present a serious challenge to trade with an EAC wide cost estimate of NTBs (2010) being approximately US$490 million.

A closer examination of the report indicates that the reduction of time has led to reduction in cost of transport. NTB reduction have contributed to the reduction in cost of transporting a 40 foot container from Mombasa to Kigali, from US$6,500 in 2011 to US$4,800. Evaluators estimate this generated a saving (at constant volumes) of approximately US$7 million on the Mombasa-Kigali route alone. Similarly, Inland transportation times from Dar es Salaam to Kigali have dropped considerably, now to 3.5 days.