UK Government minister launches new trade initiative to pull millions of Africans out of poverty

02 February 2011

An initiative to boost trade and help millions of people across Africa to pull themselves out of poverty was launched today by UK Development Minister Stephen O'Brien.

Trade Mark East Africa (TMEA) will work across East Africa to fund new businesses, develop essential infrastructure to speed up transport links, and standardise regulation across the region.

Stephen O'Brien launched TMEA in Nairobi, alongside the President of Burundi, Hon. Pierre Nkurunzinza, and Kenya's Prime Minister, Hon. Raila Odinga.

Stephen O'Brien said:

"Trade is vital for international development. It is the catalyst for growth. It creates wealth, which, ultimately, is the most effective way to pull people out of poverty.

"I'm delighted to be here to launch Trade Mark East Africa. This innovative programme will boost trade in the region by making practical improvements, such as upgrading ports and roads, and making border crossings quicker".

TMEA will:

• Reduce transport costs by 15%. Currently drivers are hampered by long and slow border crossings and wait days to cross borders. New projects will develop better roads and 'One stop border posts', between Uganda, Tanzania, Rwanda and Burundi. These new posts will use efficient computer systems which will reduce transit times by 50%, and make trading across the region faster and easier;
• Link up tax regulations and systems, where ports and border posts across the region will be more effective at collecting customs and excise duties;
• Enable access to finance through the private sector for two key transport corridors that link Rwanda, Uganda and Burundi to Dar es Salaam and Mombasa;
• Work more effectively with East African institutions, national governments, business and civil society organisations in each country to improve the business framework across the region; and
• 60% reduction in non-tariff barriers (fees, border taxes and complex regulations) to make it easier and cheaper to do business between countries.

TMEA pilot projects have already been successful in the region. In Burundi, the Office Burundais de Recettes (OBR), who collect tax on behalf of the government, have already piloted a TMEA project. Since it began in 2009, the OBR has been turned around and in 2010 tax revenue has increased by over 25%.

Through TMEA motivated and skilled staff were recruited to focus on collecting tax and reforming the country's confusing tax laws, which have now have been brought in line with other East African countries.

OBR has targets to double domestic tax revenue from 230m to 460m Burundian Francs by 2015, which will give the government more money to build roads, schools and hospitals, improving the lives of ordinary Burundians.

While in Kenya, Stephen O'Brien will visit other UK government programmes aimed at tackling poverty, including a low cost private sector school in the Kiberia Slum where slum children pay affordable school fees for a higher quality education which improves their future employment prospects.