EABC Urges Regional Track and Trace System to Combat Illicit Trade and Boost Revenue

 

EABC Calls for Adoption of Regional Track and Trace System to Streamline Cross-Border Trade, Combat Illicit Trade, Improve Health, and Boost Government Revenue Collection

Officiating the Regional Workshop on Track and Trace Systems within the East African Community (EAC) framework, organized by the East African Business Council (EABC), Chief Guest  Exaud S. Kigahe, Deputy Minister for Industries and Trade, United Republic of Tanzania, highlighted the significant economic losses due to illicit trade, which accounts for approximately 3.3 percent of global trade according to a World Customs Organization (WCO) report.

Kigahe praised EABC and EAC for addressing illicit trade through discussions on Track and Trace (T&T) systems. He emphasized the importance of adopting a common regional and interoperable T&T solution to facilitate cross-border data sharing and cooperation, enhancing efforts to combat illicit trade within the EAC.

John Bosco Kalisa, during his remarks, noted the implementation of digital tax stamps and electronic cargo tracking systems in the EAC. He stressed that these technologies primarily focus on authentication and tax verification rather than comprehensive tracking and tracing. 

Kalisa urged the adoption of a regional T&T system to streamline trade, combat illicit activities, improve health outcomes, and boost government revenue collection. He also called for reduced costs of Digital Tax Stamps (DTS) across EAC states, highlighting the need for a regional system review.

Stellah Nyambeki Onyancha, Deputy Registrar at the East African Community Competition Authority, underscored the challenges posed by illicit trade, anti-competitive practices, and consumer violations. She advocated for collective efforts from governments, businesses, and consumers to address these issues and promote fair competition within the EAC.

Eng. Ahmad Abdeldayem Aljawawdeh, during the panel discussion on “Benefits of Digitization: Win-Win for All,” shared that Jordan experienced a 30% reduction in illicit trading and a 50% increase in production following the adoption of a T&T system. Cobus de Hart from Oxford Economics Africa emphasized that a regional T&T system would enable resource pooling, technical asset sharing, cost minimization, and improved law enforcement intelligence.

The workshop, attended by over 85 government officials, private sector stakeholders, international experts, and industry leaders, facilitated the exchange of insights and best practices. The participants aimed to develop proposals and a roadmap towards a digital regional track and trace system, a crucial tool for enhanced revenue collection and the fight against illicit trade.