African economies generally have the highest trade logistics costs in the world and the EAC is not an exception to this trend. In a recent study, estimates for Kenya, Tanzania and Uganda placed the average cost of trade logistics services at the equivalent of a tax of between 25 and 40% on value-added. The key factor for the ability of a country to participate in supply chains is the efficiency of local trade facilitation and logistics services. Improving logistics performance and facilitating trade have been estimated to have positive effects in expanding country trade, increasing trade impacts of lowering remaining border barriers by a factor of two or more. For landlocked countries to increase exports, infrastructure to facilitate rapid entry is required. However, landlocked countries are challenged by a lack of sites for production, low level of skills and high costs of power.
This project aims to enhance competitiveness in the supply chain for importers and exporters (cargo owners) in Uganda by constantly engaging with regional transport policy makers to effectively advocate for a reliable logistics environment and participating in negotiations to reduce the cost of doing business for shippers in this country. The project will develop position papers for advocacy on auxiliary costs affecting Uganda shippers, policy brief on cheaper, alternative transport system, improve compliance by shippers and freight forwarders to port and transit procedures in order to reduce costs of penalties arising from documentation and processing errors by shippers and forwarders and increase visibility of USC.
TMEA is providing a grant to USC to implement the project. The grant provided will cover costs for research, advocacy and capacity building.
Sandra Kirenga, Email: email@example.com
Click here to learn more about One Stop Border Posts Program
Reduced auxiliary costs of importing and exporting goods for Ugandan shippers