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Improving Customs Transit Systems

In the Islamic Countries

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4.3

Desk-based research of three OIC Member States

4.3.1

CTR in the Republic of Uganda

Uganda is landlocked county (16 LLC countries in Africa, among 5 LLC OIC MS - Burkina Faso,

Chad, Mali, and, Niger) is highly dependent for import and export of goods by the port of

Mombasa in Kenya and port of Dar Es Salam in Tanzania. Uganda is facing heavy trade and

transport costs and is taking all measures in order to avoid high costs and facilitate international

trade and transportation.

The Northern Corridor, anchored by the port of Mombasa in Kenya, and the Central Corridor,

anchored by the port of Dar es Salaam in Tanzania, are the main routes for national, regional,

and international trade of the five East African Community (EAC) countries—Burundi, Kenya,

Rwanda, Tanzania, and Uganda.

In December 198, Uganda joined the Common Market for Eastern and Southern Africa

(COMESA) with the objective to assist in the achievement of trade promotion include

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:

Trade liberalization and Customs co-operation, including the introduction of a unified

computerized Customs network across the region;

Improving the administration of transport and communications to ease the movement

of goods services and people between the countries;

Creating an enabling environment and legal framework which will encourage the

growth of the private sector, the establishment of a secure investment environment, and

the adoption of common sets of standards;

The harmonization of macro-economic and monetary policies throughout the region.

Due to the inadequate transportation infrastructure and inefficiency of the authorities, the

Northern and Central Corridors is characterized by long transit times and high transit cost. The

costs per km are more than 50% higher than costs in Europe and comparing with other

landlocked countries; transport costs can be as high as 75% of the export value.

In 1985, the countries of Burundi, Democratic Republic of Congo, Kenya, Rwanda, and Uganda

signed the Northern Corridor Transit and Transport Agreement (NCTTA) and its associated

protocols to implement the Northern Corridor. The Northern Corridor is a multimodal trade

route linking the landlocked countries with the Kenyan seaport of Mombasa and the port of Dar

es Salaam. South Sudan acceded to the Agreement in 2012. Implementation of the Agreement

was vested in the Northern Corridor Transit and Transport Coordination Authority which is

based in Mombasa, Kenya.

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