Kenya and Ethiopia are working closely to reduce the costs of cross-border trade by removing internal barriers through the development of transport and logistic infrastructure and creating simplified procedures.
State Department for Trade Principal Secretary (PS) Alfred K’Ombudo said that the Moyale One Stop Border Post (OSBP) is key in achieving enhanced cross border trade between the two countries.
“On 16th May, 2023, Kenya and Common Market for Eastern and Southern Africa (COMESA) signed a Sub-delegation Agreement for the Moyale One Stop Border Post upgrade, which is set to run until December 2024,” said K’Ombudo.
The PS explained that significant progress has been made at the border post in infrastructure and ICT, including the equipping of testing facilities, partitioning and equipping of medical laboratories, public amenities, smart gates for customs, and the piloting of the electronic Certificate of Origin system.
“Training sessions have also been organised for our border officials, covering critical areas such as the electronic Single Window system, Non-Tariff Barriers resolution, and sanitary and phytosanitary measures. We have even engaged a local Short-term expert to ensure the successful coordination of this multifaceted project,” said K’Ombudo.
The PS explained that they have involved the local community in the project design and implementation under the auspices of the Cross-Border Management Unit which draws membership from the local administration, small-scale cross border traders and border agencies.
Speaking on Tuesday when he hosted a trade mission to review the implementation status of projects under the COMESA European Development Fund (EDF) Programme in Kenya, K’Ombudo said that they are seeking to increase private sector participation in regional and global value chains, focusing on improving the investment and business climate through the Regional Enterprise Competitiveness and Access to Markets Programme, (RECAMP).
“The impact of the COMESA European Development Fund (EDF 11) Programme on Kenya’s cross-border trade landscape has been remarkable. I am proud to report that despite being the last COMESA Member State to sign the Sub-delegation Agreement, we have exceeded expectations and are nearing completion of the initiatives undertaken in record time,” said K’Ombudo.
The PS highlighted that through the partnerships, Kenya has been a beneficiary of other programmes including the Eastern Africa Platform of Non-State Actors in Fisheries and Aquaculture (EARFISH) project, and the Simplified Trade Regime under the Small-Scale Cross Border Trade Programme.
He said that they expect that these developments will create a seamless cross-border trading experience at the Kenya-Ethiopia border, particularly for small-scale traders.
“Our ultimate goal is to generate more income opportunities for Kenyans, especially our youth and women, in alignment with the Bottom-Up Economic Transformation Agenda,” said the PS.
The PS explained that Kenyan exports to Ethiopia include palm oil, metal and steel products, food products like yeast and other food preparations while Ethiopia exports to Kenya include hides and skins, cosmetic products among others.
EU delegation to Zambia and COMESA-Programme Manager Christine Haziyo reaffirmed the EU’s unwavering commitment to supporting COMESA achieve its ultimate goal of facilitating the free movement of goods, services and people across the region.
Ms Haziyo said that the COMESA Trade Facilitation Programme funded by the European Union to a tune of 53 million Euros is an important step towards a broader and more ambitious goal in the establishment of the African Continental Free Trade Area (AfCFTA).
“We commend the Kenyan government for signing the Sub delegation agreement with COMESA in May 2023 an agreement which focuses on upgrading trade facilitation infrastructure and equipment at the Kenya-Ethiopia border at Moyale,” said Haziyo.
“This equipment worth Sh207 million will ensure safe and smart trading at the border,” said Haziyo.
She said that central to their efforts is the reduction of non-tariff barriers, implementation of the COMESA digital free trade area and the World Trade Organisation trade facilitation agreements and improved coordinated border management.
European Development Bank Programme manager seating at the COMESA Secretariat Ms Mshuka Kamwela explained that in May 2023, COMESA signed a sub-delegation agreement with the Government of Kenya, amounting to 2.34 million Euros to upgrade the Moyale border post.
Ms Kamwela said that over the last decade and a half, the COMESA region has made significant strides in trade facilitation, thanks to modernisation measures implemented at member state levels. These advancements include greater automation, improved system connectivity and interfacing, and the progress in the implementation of National Single Windows.
“Today, we are pleased to hand over equipment valued at 584,262 Euros, representing 45% of the total procurement under the sub delegation project. We trust that this equipment will enhance the capacity of border agencies and relevant government institutions. We also hope that the remaining 55% of the procurement will be fast-tracked to ensure the full realization of this project’s goals,” said Ms Kamwela.
She encouraged the receiving authorities to take great care of the equipment, utilise it effectively, and ensure that capacity-building programmes are in place to train relevant personnel on the proper use and management of some of the specialised equipment saying that this will ensure long-term benefits for border operations and efficient trade facilitation.
By Joseph Ng’ang’a
