UK-funded trade innovation praised for driving regional growth 

 A UK-funded cargo tracking system has been praised in a flagship report for driving growth, keeping cargo and drivers safe, and speeding up trade within East Africa. 

Wednesday 4 December 2024 – A UK-funded cargo tracking system has been praised in a flagship report about digital innovation in trade facilitation. 

The Regional Electronic Cargo Tracking System (RECTS) has been highlighted in the flagship report of TradeMark Africa’s Trade Development Forum 2024. The ‘Trade Facilitation Report’ was unveiled by the former Prime Minister of Ethiopia, His Excellency Hailemariam Desalegn Boshe, in Kigali, Rwanda. 

The RECTS system has been praised for significantly improving security, efficiency and reducing costs, by consolidating and enhancing the monitoring and security of transit cargo on the Northern Corridor from Mombasa through to Bujumbura – benefitting Burundi, Kenya, Rwanda, and Uganda – and is soon to benefit the DRC. 

For example, the tracking system has cut the transit time of cargo trucks from Mombasa to Kampala from 21 days to just 4-5 days, whilst the Uganda Revenue Authority reported that the tracking system has saved over USD 1 million in physical escort costs for more than 20,000 consignments. 

The web-based system works by providing end to-end tracking of goods from Mombasa Port to destinations across East Africa, reinforcing regional integration, and safeguarding revenue collection. By ensuring that goods travel exactly where they are supposed to, RECTS has helped participating countries foster a more transparent, efficient, and competitive market environment. 

The projects have also had impacts on the lives of hardworking Kenyans. RECTS employs rapid response teams along the Northern Corridor to address any tampering or detours in real time, ensuring the security of goods in transit. It has helped ensure driver safety buy deterring the previously common theft of goods when drivers would often be assaulted. 

In Kenya, other digital trade enhancements funded by the UK are benefitting the country and have also been featured in the report. The Integrated Cargo Management System, or ICMS, has reduced clearance time for air freight from an average of 2 days to 2-3 hours as of December 2021, and has enabled the Kenya Revenue Authority to increase customs revenue and other taxes on international trade and transactions collection by 17.9% from 2018 to 2023. 

Alison Thorpe, British High Commissioner to Rwanda, said “The RECTS system is fantastic, and I am not surprised it’s been praised in this prestigious forum. RECTS provides reassurance to businesses that their precious cargo will reach its destination safely – an important point for a landlocked country like Rwanda. In fact, my team often refer to the RECTS system when speaking to prospective investors who wish to import specialized equipment. UK is proud to have helped deliver this exciting innovation in digital trade that is growing Rwanda’s economy by overcoming barriers to the swift and efficient trade that East Africa deserves. This is only made possible through partnerships with the Government of Rwanda and TradeMark Africa – we go far in East Africa when we go together.