USD 4.4Mn East Africa Electronic Cargo Tracking System Unveiled to Monitor Transit Cargo

Revenue Authorities in Kenya, Uganda and Rwanda have officially unveiled a Regional Electronic Cargo Tracking System (RECTs) enabling them to jointly track movement of goods from the port of Mombasa to Kampala and Kigali.

The system will reduce the cost of doing business by reducing transit time, enhancing cargo safety and helping traders to better predict arrival of goods.  The service will be free as Revenue Authorities will meet all operational costs.

Speaking at the unveiling of the system at Uganda Revenue Authority offices at Nakawa, Kampala,URA Commissioner General Doris Akol said, “The partnership with Kenya and Rwanda helps us monitor goods from end to end, easing cargo handling, improving revenue collection and reducing diversion of un-taxed goods into the market. It will lead to improved fair trade as goods that have not been taxed will not be diverted to distort the market. This will benefit our traders and assure potential investors of level playing field in our region”.

The United Kingdom Department for International Development (DFID) has supported the project by giving USD4.4million grant through TradeMark East Africa.

“DFID is proud to be partnering with Government of Uganda, and with key partners including TMEA, to reduce Uganda’s barriers to trade with the rest of the world.  Increasing Uganda’s trade with its neighbors is vital for generating growth and promoting jobs and income, which we know is the surest way to reduce poverty. The launch of the Regional Electronic Cargo tracking System marks an important milestone towards our shared goal of reducing by a third the time to import and export goods from Uganda”

RECTs comprises satellites, central command centres in each of the revenue authorities in Nairobi, Kampala and Kigali, smart gates and rapid response units.

The system will enable transporters to reduce their transit costs and increase the productivity of their fleet. Kenya, Uganda and Rwanda will seal loopholes that lead to revenue loss because of diversion of un-taxed goods into the market.

Frank Matsaert, TMEA CEO said, “Transit trade is an important element of any economy and we are glad to be the catalyst of this partnership.  RECTs is one of the many innovations that TradeMark is supporting and which is geared towards easing and improving local and international trade in East Africa. RECTs efficiency will ingrain fair terms of trade by creating a level playing field for both importers and local industries as it helps in eliminating diversion of cargo. Surely, with this strong partnership between the private sector, the revenue authorities and TMEA it is possible that we can reduce transit time from Mombasa to Kampala down to 2days”

TMEA Uganda Country Director Moses Sabiiti said, “The RECTS is building on the excellent results delivered by the first phase of the Electronic Cargo Tracking System in Uganda, which reduced transit days from an average of 6 days (December 2013) to 1.5days for truckers moving from Busia to Elegu (the border with South Sudan.”

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