Bribery by regulators in E Africa increases cost of business - survey

Tanzania is ranked worst in EA with Uganda coming at third position.

Kampala

Regulators in East Africa demand the highest amount of bribes from transporters and drivers along transport corridors, a survey conducted by Transparency International Kenya and Trade Mark East Africa has revealed.

The survey titled “Bribery as a non-tariff barrier to trade; a case study of East African trade corridors”, ranked Tanzania as the worst affected standing at about Shs32.6 million ($12, 640) followed by Kenya at about Shs17.3 million ($6, 715) annually.

Uganda is ranked third at about Shs9.5 million ($3, 672), Rwanda comes fourth at about Shs1.7 million ($679) while Burundi had the lowest at Shs755,002 ($293). The bribes solicited by authorities increase the cost of doing business along East Africa trade corridors, the findings indicate.

The survey conducted in collaboration with Transparency International chapters in Burundi, Rwanda, Uganda and the Transparency forum of Tanzania indicates that bribery costs in Tanzania consisted about 18.6 per cent of the value of transported goods across the country.

Mr Richard Sindiga, director of economic affairs in the EAC Ministry, said: “By reducing or eliminating tariffs and working to minimise non-tariff barriers across the East African region, the governments in partner states can ease the flow of people and goods across borders.”

He said this will create larger markets, enable economies of scale, and promote local, regional, and global trade, which will in turn foster a dynamic environment for economic growth across the region.

The executive director Transparency International, Kenya, Mr Samuel Kimeu said: “Corruption serves as an unnecessary cost of doing business and as an additional burden to the consumer. Left unchecked, the vice will make this region uncompetitive,” he said. He added the full benefits of integration will not be achieved unless decisive efforts are put in place to confront corruption in the trade and transport sectors.

The study was commissioned by TradeMark East Africa (TMEA) with a view to enhance advocacy for the elimination of Non-Tariff Barriers.

fkulabako@ug.nationmedia.com