Rwanda reaps from EAC Integration

Integration News EAC integration permeates into people’s businesses and cultural bonding

The labouring engine of the heavy commercial truck slows down as it nears the borderline of Gatuna, Rwanda’s border post with Uganda, but continues to exude a dull explosive sound. It joins other trucks in the queue. It is joined by others. The pungent smoke they all produce twirls indolently into and consumed in the verdant wooden hills and the tea growing valleys that surround Gatuna border post. As the trucks’ chugging continues, parked, their drivers go to the Immigration and Rwanda Revenue Authority offices to have some of their papers processed and stamped; in about 45 minutes they will continue with their journey. This Gatuna Border Post now operates 24/7; Rusumo for 16 hours; and Nemba, 18 hours. The reduction of red-tape and the harrowing paperwork at border posts are some of the many benefits that have come to symbolize and be embraced as a result of Rwanda joining the East African Community (EAC) seven years ago. Marking the EAC Week Therefore, as Rwanda marked the 5th EAC Week, 17th-21st November, under the theme; “EAC Regional Integration: Benefits & Opportunities,” it is important to reflect on whether the principles of EAC of promoting a peoplecentered and market-driven cooperation are translating into reality and what Rwandans and other people living and working in Rwanda have to say about the integration process. People from different EAC countries, professions and occupations have come to embrace and even advocate for deeper integration after experiencing the different benefits and spotting opportunities in the EAC-traders, transporters, professionals, investors and a plethora of other categories; albeit at different levels. The activities during the week involved interaction with the media and the public, breakfast meeting with the business community, public lecture at Universities, field visits to assess implementation of EAC projects and programmes. We do experience the changes Yusuf Oadara, a Ugandan truck driver plying the MombasaMalaba-Gatuna-Kigali route, says their occupation has been made a lot easier with the removal of certain requirements. “First of all, unlike before, the Gatuna border post is open 24 hours. The cargodwelling time at the border has drastically reduced as long as one has the necessary documents. My client employs clearing agents who process the transaction documents long before the truck leaves the country where goods have been obtained. At the border, the only requirements are the documents of origin which eases work. I used to transport goods outside the East African region, but when I got to learn of the changes, I started doing most of my work within the EAC territory,” enthuses Oadara before he adds; “Integration has been lifted from politicians’ boardrooms and media platforms and lowered into our businesses and interactions.” Such changes have permeated through to other border posts in almost equal measure but in more ways as Ezekiel Runne Mbafu, a cargo transporter for twenty years testifies.

“I use the Rusumo border post more frequently. Eight years ago, the goods would be offloaded on either side of the border for verification. Our clients had to incur costs of loading and offloading, and then hustle with clearance from one border point and shudder in anticipation of doing the same on crossing to the other side of the border. Sometimes it could take a week to be cleared from all the border points,” recalls Ezekiel before he fast forwards into the present. “Today I spend less than an hour at Rusumo border post. Gone are the days where trucks would queue for several days awaiting clearance.”

Mbafu says the establishment of the One Stop Border Post (OSBP) has partly provided this seamless flow of goods from one country to another. “When a truck is leaving Rwanda, it is cleared on the Uganda side of the border at the OSBP, just as the trucks entering Rwanda are cleared on the OSBP of Rwanda. There is no duplication

Integration News

of time and resources, small scale traders are encouraged, smuggling is curtailed, and tax payment is made even easier.” Construction works of OSBPs at Kagitumba and Rusumo are on-going and will ease movement of goods and persons once completed. The establishment of the single customs territory has also come with its benefits. Shinu K.S, Business Development Executive at Computer Point attests. “The Cost Insurance and Freight (CIF) value is now computed at the East African first port of entry such as Mombasa and Dar-es-salaam, but previously, it was paid at Rwandan borders such as Gatuna. Besides, all goods originating from the EAC member states are exempted from some customs duties.

We can now access a larger market from any country within the region. As dealers in computers and accessories, we have clients from Burundi and elsewhere who understand that they can access or apply for our services through our country offices. Faster more efficient services

Other than the refined movement of goods, the associatated financial transactions across the region have also been made easier. Kenya Commercial Bank (KCB), for example, according to the Managing Director, Maurice Toroitich, has opened shop in all the five EAC partner states. Traders with accounts in KCB do not have to move with huge sums of money to purchase goods and pay for services from any of the EAC countries. “Branches and ATMs in all the 5 countries are linked on a real time basis, our versatile mobile payment and internet banking infrastructure also operates not just regionally but globally. The Bank’s shares, while primarily listed on the Nairobi Stock Exchange are also listed on all the EAC Stock Exchanges thus affording all East Africans a chance to own a piece of the bank by trading in the Stock Exchange that is nearest to them.

“From a business standpoint, we are anchored on the key sectors of the economy in East Africa which are predominantly agriculture, building and construction, hospitality, manufacturing, trade and finance, transport and communication, mining and quarrying,” explains Toroitich. “We are seeing more cross border transfers and cross border interactions which facilitates business operators to work anywhere within the East African region. Since we operate a regional service, if you have properties in any of the EA countries, we can use those properties to offer you a loan within any East African country,” says the KCB Managing Director adding that even obtaining work permits is getting better. “I believe people should understand that it is the only way to scrutinize ill-intentioned entrants,” says Toroitich. “KCB group has made direct lending to projects in Rwanda to the tune of over $200m using resources mobilized from outside Rwanda.”

Exploring regional markets Goods manufactured in Rwanda can also easily be exported within the region with no hurdles. Hajela Atul, the General Manager of Viva Products, Matelas Dodoma, originally from Tanzania, located in the Kigali Special Economic Zone, says they transport their merchandise without inconveniences.

“When we were coming to invest in Rwanda, the process of registration, buying land, construction and employing was very smooth. We acquired the investment certificate with ease. Because of unrestricted movement of goods, we are exploring and expanding our market in the EAC region. We enjoy equal security and access to other services like any other person living in Rwanda.” Improved intra-EAC trade Investments from within the EAC region have also substantially increased and improved. As of September 8, 2014, according to RDB records, more than 408 companies from other EAC Partner States had been domestically registered in Rwanda. The increased and improved intraEAC trade has seen Rwanda’s exports to the region increase to $225.3 million in the first half of 2014, up from $218.4 million in the same period in 2013, representing a 3.1 % per cent increase, reports indicate.

Imports from EAC region increased to USD 231.9 million (21.8%) in the first half of 2014 from USD 190.4 million of the first-half of 2013. In the same spirit,

students pursuing education across borders have too reaped benefits of EAC integration. Easy visa acquisition, border crossing Humphery Mutegi, a Kenyan and Assistant Associate Dean of Students, Mount Kenya University, says cross border schooling is now very apparent as a result of the integration. “There are a number of students from Uganda, Burundi, Kenya and Tanzania at the university and of course the Rwandese. Getting a student and work visa are some of the easiest services to access. ”

Much of this integration would still make little sense to the ordinary East African who rarely trades across borders or makes big transactions.

There are a number of residents that have got relatives across borders, and therefore the launch of the passport-free movement of persons across border in the northern corridor has added to the seepage of the benefits. “I have relatives in Uganda; my mother lives in Nansana,Wakiso District, so whenever I feel like visiting her, I do not find any problem traveling. I just use the National Identity Card for crossing the border.

I only use the passport when traveling outside the East African Community,” says Sandra Mutoni, a student of Business Administration, Mount Kenya University. Statistics available indicate that 831,236 Rwandans used ID/ Student cards to travel to Uganda and Kenya between January and

September 2014. Another frequent traveler, Faith Namugenyi, a Ugandan Business woman says she uses her Identity Card to cross the border. “All that is required is a piece of paper where my Visa is placed. With the ID, I am not disturbed at the border even when it’s late in the night.”

Wakibi Geoffrey, a freelance journalist with The New Times says the reduction by telecom companies of regional tariffs and scrapping roaming fees, will encourage the use by travelers of their own home mobile phone numbers when they travel across the region and will spare individuals from having to buy Sim cards for the sake of getting access to cheaper tariffs.

It is however important that Rwanda seizes and puts to employ all the opportunities that present themselves with the integration. Mutoni Anitha, a Mount Kenya University student advises;

“Our education system should be harmonized with the bigger East African Community; universities should aptly adapt the English system.

The transition from French to English has affected the authority with which lectures are delivered. If need be, let us massively recruit lecturers from the EAC into our universities so they can intensively train the next breed of workers in different fields.

“This may be a good stop-gap measure as our lecturers get more eloquent in the delivery of knowledge in the English language”, she advises.

Runne Ezekiel Mbafu

Yusuf Oadara Transporter