Federation of East Africa Freight Forwarders Associations (FEAFFA)

Uganda Freight Forwarders Association (UFFA) once again witnessed a peaceful transition in its leadership.  This was through an election held during the association’s Annual General Meeting (AGM) that was held on the 12th April 2012 at Serena Hotel, Kampala. According to a communiqué to all her partners, the new executive committee includes;

Chairperson                                       Ms. Merian Sebunya
Vice Chairperson                              Mr. Dan Nabaasa
General Secretary                           Ms. Jenniffer Mwijukye
Treasurer                                            Mr. Paul Higiro

Executive Members
Mr. Mwebembezi Charles
Mr. Kiddedde Hussein
Mr. Ambrose Turyahabwe

FEAFFA wishes the new team the best as they take on the responsibility of leading the industry to the next step.

A new syllabus for regional training program for clearing agents, the East Africa Customs and Freight Forwarding Practicing Certificate (EACFFPC), has been adopted by the Federation of East African Freight Forwarders Associations (FEAFFA) and the East Africa Revenue Authorities. This was after a week-long review process at the Kampala Sheraton Hotel that involved technical experts from the national associations affiliated to FEAFFA, the East Africa Revenue Authorities and the Directorate of Customs at the EAC.

“With more than 40% of the business costs accruing to transport and logistics, there is increasing appreciation of the importance of the sector in international trade. We realised that our training programme was no longer sufficiently meeting the needs of an increasingly complex international maritime trade and more importantly the custom requirements of the 21st Century. It was therefore important that we undertake a thorough review of the curriculum. I am pleased that this program will raise the professional standard within the industry with a view to improve business practices and promote compliance” said the Federation’s Regional Executive Officer Mr. John Mathenge.

Speaking during the unveiling ceremony, the Commissioner General - Uganda Revenue Authority Allen Kagina pledged the commitment of URA in working closely with FEAFFA to ensure effective delivery of the training program.

“I also commit to persuading other Commissioner Generals of the Revenue Authorities within the region to work close with FEAFFA in the training program through providing an atmosphere for effective utilization of the knowledge and skills acquired from the training program and ensure the EAC becomes an investment destination. The training program is evidence of a working relationship between clearing and forwarding agents and revenue authorities” said Kagina.

She acknowledged the partnership with FEAFFA as a practical demonstration of the regional economic integration process as an example of operations beyond borders.

“The freight logistics industry in East Africa has been largely characterised by poor business practices due to a generally inadequate skills pool and limited use of modern technologies. Our aim is to reduce the time and cost involved in movement of goods across the East African corridors by raising the professional standards of clearing and forwarding agents since they are ones mandated to clear cargo by the EAC Customs Management Act” said Silas Kanamugire the Director, Trade Facilitation/Transport at TradeMark East Africa.

Speaking at the same function, the FEAFFA President – Mr John Bosco Rusagara emphasized the need for further support to FEAFFA and the national associations to train trainers, issue Certificates of Competence (for those exempted to undergo training) and carry out training activities in the future. He emphasized the industry’s continued commitment towards professional operations through supplementary initiatives like the regional Code of Conduct. He called upon the operators and the trade facilitation agencies especially customs for their continued support towards the programs of the federation if they are to bear the desired fruits.

The syllabus  was developed as part of the curriculum review process supported by TradeMark East Africa as part of the broad support towards expanding the delivery capacity of the training facilities within the five EAC member states to hasten the attainment of the desired critical mass of 4500 trained customs agents in the region. TradeMark East Africa is supporting the programme from 2012 to 2014. EACFFPC training in most of the EAC countries is being done at the revenue authorities training institutes. The new syllabus is expected to be deployed in the next intake starting July 2012.

The Curriculum Implementation Committee, Chairpersons of National Associations and the Commissioners of Customs of the East Africa Revenue Authorities attended the function.

The Federation of East African Freight Forwarders Associations (FEAFFA) has welcomed the idea of the new corridor in the region.  According John Bosco Rusagara the President of the Federation, The project offers an opportunity for the region to expand its market beyond the traditional East Africa by bringing Ethiopia and Southern Sudan closer. He added that the freight logistics service providers were already providing services in this region although with enormous challenges mainly due to infrastructure. Mr. Rusagara added that the freight logistics industry needed this development yesterday. The President further said that the Federation welcomed the development and commended the governments of Kenya, Southern Sudan and Ethiopia for supporting the project. “It is our hope that the corridor will be a model economic corridor not only for the region but for the world as a whole” concluded Mr Rusagara.

Tanzania and Uganda have set aside over 13,000ha of land for the construction of a railway line to link Tanga port and Kampala via Musoma port, according to Tanzania’s minister for Transport, Omari Nundu.

Mr. Nundu said that the chunk of land set aside by the two countries aims at integrating their economies as well as that of the region. The minister stated that the joint investment project is estimated to cost over $3 billion and would include construction of a standard gauge 880km railway line from the Mwambani port (Tanga) to Musoma port and Port Bell in Uganda. The project feasibility studies are on course and will be ready this April.

The railway line is expected to handle cargo from Uganda and South Sudan via Tanga and Musoma ports.

“It will make it possible to move cargo from Tanga to Uganda via Musoma by rail and reduce the pressure on our roads as well as elongate the life span of our road network,” he added. Mr Nundu assured that the seaports and airports will be linked with rail services as a way of improving transport.

Customs agencies could soon be forced to compensate traders for losses arising from slow clearance of goods in an effort to open up trade within the East African Community.

EAC officials said an agreement had been reached on a legally binding framework to eliminate non-tariff barriers (NTBs) while imposing sanctions on offenders.

“The draft legal framework will be ready by the second quarter of this year, guided by a study that we have launched to identify the type of NTBs that will attract sanctions,” Richard Sezibera, the EAC Secretary- General, said in Nairobi on Thursday.

In Kenya, the Ports Authority, Kenya Revenue Authority, Kenya Police, and Kenya Bureau of Standards – which are directly involved in clearing goods for cross-border trade - top the list of regulators that face sanctions for expensive delays in shipments.

The legal instrument would give the EAC Secretariat teeth to force member states to honour agreements reached at regional level. At the moment, the five countries rely on the good will of member states to implement regional deals.

Among the disputes that EAC Secretariat has handled lately, Kenya has reported Uganda for banning its beef and imposing stringent certification procedures for milk. Uganda on the other hand has reported Kenya for imposing levies on its tea destined for auction at Mombasa.

Alongside Burundi and Rwanda, Uganda has also accused Kenya of forcing transit trucks registered within the region to apply for permits to carry Kenyan products. The three landlocked countries have also accused Kenya and Tanzania of corruption in erecting several police roadblocks and along the Northern and Central Corridors, weighbridges and border gates.

“There is a general feeling that not all NTBs should attract legal sanctions”, Dr Sezibera said yesterday at a forum organised by TradeMark East Africa and attended by traders, government officials from across the region and a delegation from Denmark.

The private sector blames legal voids for slowing integration within the 133 million population market.

“There must be some way of forcing states to move beyond policy declarations since NTBs in the region are well known but never addressed,” said Carole Kariuki, CEO of Kenya Private Sector Alliance. Traders have proposed that only the NTBs that result from malice should attract sanctions from the Secretariat, with owners being forced to compensate traders. “If I compare how efficiently ports are run in Singapore (where I worked before) with the way it is done in Mombasa, I see an obvious skill deficit – not malice,” said Yaw Nsarkoh, managing director of Unilever East & Southern Africa.

He said a legal framework would result in a clear dispute resolution mechanism where traders automatically know where to seek redress.

Congestion at the Port of Mombasa topped the list of concerns that forced members of the East Africa Business Council - under pressure from landlocked countries – to pay a courtesy call on President Kibaki two weeks ago.

Danish minister for Development Cooperation Christian Bach said clear dispute resolution mechanisms would see trade thrive in the region.

Source: Business daily

The region could save billions of dollars in annual road maintenance and transport fees, following approval of a Bill by ministers from East African Community partner states.

The Vehicle Load Control Bill will harmonize load limits for commercial vehicles plying EAC roads to 56 tonnes.

“With a harmonized legal regime to govern vehicle loads in the region, businesses and governments in the EAC stand to register an estimated one billion dollars in annual savings,” said EAC Deputy Secretary General, Dr Enos Bukuku.

The proposed law will also decriminalize overloading while digitizing weighbridge processes. This will reduce issues of corruption and cut time spent transporting goods long-distance.

There are several bottlenecks involved in movement of cargo with the region with some reports estimating that over 19 hours is spent crossing the border and weighbridges for a truck moving from Mombasa to Kampala. These regulative bottlenecks make it very expensive to do business in the region.

Drivers caught overloading will be required to pay the fees instantly and electronically. Credit cards, debit cards and bank guaranteed cheques will be favoured over cash.

Fees collected through the new system will be channelled to roads agencies.

Currently, fees collected from overloading vehicles in Kenya and Uganda end up in the general budget, even as roads agencies struggle to raise funds for maintenance.

Freight forwarders within East Africa have launched a code of conduct that will help regulate the industry and enhance professionalism, compliance and reduce corruption at border points. The freighters, under the Federation of East African Freight Forwarders Associations (FEAFFA) unveiled a simplified code of conduct aimed at entrenching integrity among clearing and forwarding professionals in the region. The simplified version is a comical presentation of the detailed code of conduct that was launched in Nairobi in July 2011 by the then Minister for East Africa Cooperation of the Republic of Kenya Prof Helen Sambili. The simplified version is available in three key languages including English, Swahili and French for easy consumption of the industry players.

“An important part of this code of conduct is to raise awareness within the freight forwarding industry, the public sector and the general public of the need for professional behaviour while at work,” John Mathenge, Regional Executive Officer, FEAFFA said during the launch held at Malaba border post in Uganda. “This will help the industry eliminate corruption as those found engaging in it will be deregistered.” EAC member countries are seeking to professionalize the freight and logistics industry considering that 50 per cent of the cost component of most goods is made up of transport costs within the region.

“The EAC Common Market protocol that allows free movement of goods and persons in the region, necessitates a strict code of conduct in the freight industry to reduce incidences of corruption,” he said. The FEAFFA code of conduct highlights the ethical standards expected of all operators in the region.

“Our code of conduct will help promote trusted partnership with Government agencies and other stakeholders,” Jennifer Mwijikye, a representative of the Uganda Freight Forwarders Association (UFFA) said during the launch held at Port Spring Villa at Malaba in Uganda.

She said its strict enforcement will help the industry shed its image, which in the past has been maligned by Government agencies as promoting corruption.

Aimed at helping the body of freighters into becoming a self-sustaining regional business association, the development of code of conduct was funded by the USAID to the tune of Sh22 million through its Competitiveness and Trade Expansion (COMPETE) Program.

Under this program, FEAFFA has already trained over 1,500 freight and logistics clearing and forwarding agents who have earned the East Africa Customs Freight Forwarding Practicing Certificate (EACFFPC). The target is train 5,000 agents by 2013.

There are about 3,000 freight and logistics forms in the East Africa Community (EAC) with thousands of employees. But they have been singled out by various players are unprofessional and corrupt tendencies, a perception FEAFFA is out to correct.

The border event was supported by USAID COMPETE and graced by among others representatives of the Commissioners of Customs of Uganda Revenue Authority Mr. Geoffrey Balamaga and Kenya Revenue Authority Mr. John Kihara, a representative of USAID Mr. Nzuki Mwania. Uganda Freight Forwarders Association (UFFA) and Kenya International Freight and Warehousing Association (KIFWA) organized the function.

"The Federation of East African Freight Forwarders Associations (FEAFFA) welcomes the idea of the new corridor in the region. This is an opportunity for the region to expand its market beyond the traditional East Africa by bringing Ethiopia and Southern Sudan closer. As freight logistics service providers, we are already providing services in this region although with enormous challenges mainly due to infrastructure. The freight logistics industry needed this development yesterday". The President further said that the Federation therefore welcomes the development and commends the governments of Kenya, Southern Sudan and Ethiopia for supporting the project. It is our hope that the corridor will be a model economic corridor not only for the region but for the world as a whole.

President of FEAFFA,

John Bosco Rusagara