EAC integration permeates into people’s businesses

and cultural bonding

The laboring 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. After 45 minutes. 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 seven years ago.

Marking the eAC Week

Therefore, as Rwanda marks the East African 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 people-centered and market-driven co-

operation is translating into reality and what Rwandans and other people living in 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 East African Community; traders, transporters, professionals, investors and a plethora of other categories; albeit at different levels.

The activities during the week will involve, 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 Mombasa-Malaba-Gatuna-Kigali route, says their occupation has been made a lot easy with the removal of certain requirements. “First of all, unlike before, the Gatuna border post is open 24hours. The cargo-dwelling 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 even before the truck leaves the country where goods have been obtained. At the border, the only requirements are the documents of origin

but in more ways as Ezekiel RunneMbafu, 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 in shudder 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 with a creasing face 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 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 One Stop Border Post (OSBP), just as the trucks entering Rwanda are cleared on the OSBP of Rwanda. There is no duplication of time and resources, small scale traders are encouraged, smuggling is curtailed, and tax payment is made even easier.”

Construction works of One Stop Border Posts at Kagitumba and Rusumo are ongoing 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 atComputer Point attests.

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 Oadarabefore 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

Yusuf ODara Transporter

Trucks at the Gatuna boarder.

“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

Runne Ezekiel Mbafu

apply for our services through our country offices.The single tourist Visa which is valid in the rest of the EAC countries is another big plus,” explains Shinu.

Faster more efficient services

Other than the refined movement of goods, the associative financial transactions across the region have also been made easier. 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 6 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 facilitate 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.”Also, says Toroitich, “KCB group has made direct lending to projects in Rwanda to the tune of over $200m using resources mobilised from outside Rwanda.”

exploring regional markets

Goods manufactured in Rwanda can also easily be exported within the region with no hurdles. HajelaAtul, the General Manager of Viva Products, Matelas Dodoma, originally from Tanzania, located in the Kigali Special Economic Zone, manufacturing mattresses, says they transport their merchandise without inconveniences they faced heretofore.

“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, according to RDB records, 1,302 Kenyan companies had been domestically registered into Rwanda, directly employing close to 250,000 Rwandans; relieving the government of increasing youth’s unemployment pressure.

The increased and improved intra-EAC trade has seen Rwanda’s exports to the region increased to $225.3 million in the first half of 2014, up from $218.4 million in the same period in 2013, representing a 21.8% per cent increase, reports indicate.Imports from EAC region increased to USD 231.9 millions (21.8%) in the first half of 2014 from USD 190.4 million of the first half of 2013.

In the same spirit, the spirit of a community, students pursuing education across borders have too reaped from the integration.

easy visa acquisition, border crossing

Humphery Mutegi, a Kenyan and Assistant Associate Dean of Students, Mount Kenya University,sayscross border schooling is now very apparent as a result of the integration. “There are a number of students 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 across border states that make coalition of the willing; Rwanda, Kenya and Uganda 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 523,341 Rwandans used ID/Student cards to travel to Uganda and Kenya between Jan and June 2014, while other travelers include; 68,162 Ugandans and 1016 Kenyans that entered into Rwanda using ID/Voter/Student cards between January and April 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 scrap 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, 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. MutoniAnitha, 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.

Maurice Toroitich, Managing Director KCBHumphery Mutegi, Assistant Associate Dean of Students, Mount Kenya University

Hajela Atul, General Manager Viva Products, Matelas Dodoma