Home East Africa Cross border business held up despite joint EAC agreement

Cross border business held up despite joint EAC agreement

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· Rwanda bound Containers held up at Kenya Tanzania borders

· Rwanda has urged Kenyan and Tanzania to consider waiver on storage charges and other penalties incurred as result of the covid-19 pandemic mitigation measures

Corona Virus restrictions have led to disputes between Rwanda and its neighbours on movement of Rwanda-bound containers. Several containers have been held up on grounds that Rwanda has delayed to clear the cargo on time. Kenyan and Tanzanian authorities have threatened to slap a heavy fine on the containers that are lying at the Mombasa and Dar-es-Salaam port. Rwanda has urged Kenyan and Tanzania to consider waiver on storage charges and other penalties incurred as result of the covid-19 pandemic mitigation measures. More than 2000 containers are facing demurrage costs, storage charges, warehouse rent and other penalties despite the comprehensive regional covid-19 approach that was agreed on to deal with the challenges of the virus on the cross-border businesses between member states.

An agreement was reached by all member states, through Federation of East African Freight Forwarders Associations (FEAFFA) to remove normal charges levied on cargo handling. Under a Joint EAC Covid-19 taskforce recommendation 6, published in May 2020, EAC governments were to engage key logistics service providers such as ports, shipping lines and warehouses to cushion freight forwarders and the shippers against the negative effects of COVID-19. FEAFFA also had advised Ports Authorities and all container freight stations in the region to increase the free storage period, warehouse operators to waiver all demurrages charges and revenue authorities to waiver the customs warehouse rent.

The issue has plunged the Rwandan importers into deep crisis. A statement issued by Stephen Ruzibiza CEO of Private Sector Federation, Rwanda said that the Rwandan importers risk heavy bank fines since the consignment at the ports were purchased using bank facilitation.

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