Traders asked to use technology to prevent theft of goods

The Minister of Trade Industry and Cooperatives Amelia Kyambadde has called on the business community to embrace the use of technology while doing business to reduce costs.

Kyambadde made the call on Friday at the launch of the Regional Electronic Cargo Trucking System (RECTS) that will track goods in transit across the three East African countries.

The electronic cargo tracking system was first introduced by Uganda Revenue Authority in 2013 with support from development agencies through Trademark East Africa, after its success, it was piloted in the three revenue officers of Kenya and Rwanda, hence the launch as a success project.

 

She said most traders still prefer shortcuts to clearing goods which makes it difficult to track or help them recover in case goods disappear along the way.

"Some Ugandans still think of dealing with someone informally to clear their goods faster, it's time now for us to embrace technology to help us do business in a clear manner," said Kyambadde.

She however asked the implementers to sensitize the users on how technologies like the RECTS work, benefits to business, costs or no costs for the innovation to be fully embraced by the targeted audience.

 

The project was funded by the United Kingdom's Department for International Development (DFID) through the TradeMark East Africa (TMEA) to the tune of US$4.4 million (about sh15.752 billion).

 

According to Kyambadde the system will enhance the monitoring of transit goods along the northern corridor to, reduce costs and time, ease sharing of information and improved coordination of revenue systems in the three countries.

 

About the system

 

RECT has satellites, central command centers in each of the revenue authorities in Nairobi, Kampala and Kigali. An electronic seal is attached on transit cargo vehicles and communicates with the command centers giving real time updates such as vehicle location, speed, and if the container is tampered with or not. Importers, transporters, and the revenue authorities can see this information.

 

It also has rapid response units stationed along sections of the Northern Corridor identified as notorious diversion of goods. These respond to alerts, received from the command centres, about suspicious behaviour like diversion from designated route, unusually long stop over, or attempt to open a container, which they investigate and resolve on the spot.

 

The Executive Director Trademark East Africa, Frank Matseart said they are supporting Uganda to improve business environment and improve competiveness of firms so as to create jobs that will have real impact on Ugandans and East Africa.

 

This is being done by supporting initiatives like the one stop border posts, single customs territory, Ascuda world, improving customs process at URA among others.

 

The result of all these trade facilitation systems is the real transformation where goods can be cleared in less than two days compared to 6 to 7 days a few years ago, and this will drive business to regional and international markets," said Matseart.

 

Paul Mullard a senior economic adviser of DFID in Uganda, one of the funders of the project through TMEA said increasing Uganda's trade with its neighbors is vital for generating growth and promoting jobs and income, which will reduce poverty levels in the country.

 

" 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," Mullard added.

 

URA Commissioner General Doris Akol said the partnership between Kenya and Rwanda will help to monitor goods, easing cargo handling, improving revenue collection and reducing diversion of un-taxed goods into the market.

 

"This will benefit our traders and assure potential investors of level playing field in our region. We further estimate cost savings per truck per day of about USD400 to USD600" said Akol.

 

The launch was attended by ministers Amelia Kyambadde for trade and Evelyne Anite of Investment and privatization, who symbolically flagged off trucks loaded with coffee and cotton to Belgium and Kigali that will be tracked using the system.