Rwanda-DRC Border trade feels pinch from political stand-off

Spare a thought for the informal traders in this region. The terminology is also somewhat humorous, if not ‘offensive’ to an overly liberal mind – democratic South Africans in particular.

Trade along the Rwanda-DRC border is still going strong, although with some difficulty, despite the ongoing political tensions between the two neighbors.The Rwanda Focus visited Gisenyi, from where it has been reported that several Rwandan civilians who have attempted to cross into DRC for business have allegedly been arrested and tortured.

“You can’t go in there but if you insist, then be ready to die or to be tortured by the authorities in Congo,” said Safina Mukankusi, a cross-border trader. According to locals here, anyone with links to Rwanda in form of passport, looks or language is a target for the Congolese authorities. The irony is Gisenyi is full of Congolese civilians loaded with all sorts of merchandise bought from Rwandan markets which they then carry to the DRC.

It’s also here that massive petty smuggling takes place. “There are so many ‘fat’ women around here,” said a Rwandan customs official, explaining they are stuffed with several garments in which they then hide commodities such as alcohol and sell them on the Rwandan side at a profit. “Some make more than 20 trips per da,y often smuggling a single commodity per journey… but these are poor people who are looking for a meal from their petty deals,” the official revealed. From the proceeds from smuggled goods, the Congolese then buy food and all sorts of stuff which they take back home to sell.

With the current instability however, there’s a new development. “Many Congo-men are coming to sleep here at night and go back home during day for fear of attacks,” said Fidel, a resident of Gisenyi. He says most of them sleep on the streets while others have rented some cheap houses in which they spend the night, often in groups.

Looking at the people here, it’s quite hard to imagine that their country is home to some of the world’s most valuable minerals such as gold and diamonds. Bribes and other corrupt dealings are the quickest ways to get a service done according to Rwandan traders. “Once they know you have money, they will detain you until you part with some of it, it’s mostly those that don’t have anything who are tortured,” explained Laurent Makubu, who claims he has been detained but bribed the Congolese police with $15 to secure his freedom.

While the Congolese who cross to Rwanda report no harassment, it remains a mystery why their Rwandan counterparts are the target of mistreatment on the other side. As a result, most Rwandan traders say they have resorted to using Congolese middlemen to get goods from the DRC side but at a much higher cost as the middlemen charge for their service. Source: Rwanda Focus (Kigali)

Car importers slam KRA transit vehicles rule

Is the time for a regional transit bond nigh? Given prevailing draconian measures to ensure security and surety, the message is clear that customs brokers, freight forwarders or clearing agents need to demonstrate financial security over and beyond what they are accustomed to. Question – is the transit business lucrative for agents? Why not refuse the business – its just not worth the risk.

A requirement by the Kenya Revenue Authority demanding that all imported transit vehicles above 2000cc be cleared against cash bonds or bank guarantees has been opposed by clearing agents in Mombasa. The agents, under their umbrella Kenya International Freight and Warehousing Association, have threatened not to pay taxes if the regulations are not withdrawn by the tax collector. The agents said that the stringent measures by KRA may stifle trade in the region and may also see the port of Mombasa losing some foreign importers to the port of Dar es Salaam in Tanzania. “We as clearing agents cannot pay the bonds for the importers”.

On August 31, KRA directed all clearing agents that with effect from September 1, all transit vehicles exceeding 2000cc would be cleared against a cash bond or bank guarantees paid by the agents. The forwarders also said that Uganda, Rwanda and DR Congo business class was considering ditching Kenya as an import avenue for Dar es Salaam port. Source: The Star (Nairobi)

EAC authorities share cargo data online

East African tax authorities have launched an online system to share customs cargo information in the region. The system, RADDEx 2.0 (Revenue Authorities Digital Data Exchange), will enable the tax authorities to instantly know what is in transit in the region. Uganda Revenue Authority says RADDEx 2.0 is web-based, has more “functionality and better performance” and will be used by clearing agents. If cargo destined to Uganda poses any risk, notifications  will be sent via e-mail so that authorities can plan action prior to arrival of the cargo. All data on cargo will be sent to a central server at the East African Community headquarters in Arusha, Tanzania. Any East Africa partner state that needs data about expected cargo will interrogate the system, which will automatically provide feedback. The system was developed by IT and customs expert staff from Uganda, Kenya, Tanzania, Rwanda and Burundi and sponsored by USAID/COMPETE (Competitiveness and Trade Expansion Programme). Source: The New Vision, Uganda