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Home Eastern Africa

Kenya and Uganda Collaborate on Suam Border Trade Boost

by SAT Reporter
August 16, 2023
in Eastern Africa
0
Kenya and Uganda Collaborate on Suam Border Trade Boost

Kenya and Uganda have joined forces to establish a new Customs post at the Suam border crossing. This collaborative effort, supported by the African Finance Development Bank and orchestrated by the China State Engineering Construction Corporation, is poised to reshape the landscape of trade in the East African region.

The Suam border post, representing a substantial investment, will serve as a focal point for immigration, Customs, security, and sanitary inspections, streamlining the movement and clearance of goods between the two nations. The move is expected to significantly improve the efficiency of transporting and clearing goods, fostering an environment that is conducive to trade growth and expansion.

A crucial facet of this multifaceted project includes the upgrading of the Suam-Bukwo-Kapchorwa road, a key artery that is set to modernize the Suam crossing while providing a much-needed boost to the local economy. As congestion often plagues the primary Busia and Malaba border facilities, the implementation of this new trade infrastructure is expected to alleviate these challenges by providing an additional avenue for businessmen from both nations.

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Kenyan and Ugandan traders who have long relied on the shared border crossings at Malaba and Busia will soon find an alternative route for transporting their goods, as the Suam one-stop border post transforms into a comprehensive trade hub. The governments of both nations are jointly spearheading this ambitious initiative, with the African Finance Development Bank and the China State Engineering Construction Corporation playing pivotal roles.

“The wider project, encompassing the Kapchorwa-Suam-Kitale trade route, has been allocated a budget of Ksh5 billion ($35 million). The overarching goal is to expedite the transport and clearance of goods, thereby fostering an environment that stimulates cross-border business,” stated Kenya’s Interior and National Coordination Principal Secretary, Raymond Omollo.

According to the Kenyan government, the Suam border crossing point, with a cost of Ksh100 million ($700,000), will amalgamate immigration, Customs, security, and sanitary inspections within a single framework. The ongoing upgrade of the Suam post and the Kitale-Suam road, undertaken by independent entities, is scheduled for completion in the imminent month.

This endeavor, funded and endorsed by the African Finance Development Bank, not only reinforces the bilateral cooperation between Kenya and Uganda but is also projected to extend its positive impact across the East African region, including South Sudan and Djibouti. “The establishment of the Suam Customs post is poised to augment cross-border business, stimulate interconnectivity, and create new avenues for trade in the broader region,” affirmed Omollo.

In an effort to decongest the primary international border facilities at Busia and Malaba, Kenya and Uganda have announced plans to enhance the Lwakhakha one-stop border station in Bungoma. The convergence of these strategic initiatives is poised to amplify interconnectivity and market opportunities, with bolstered personnel at the Customs points to ensure seamless trade facilitation.

The modernization of the Suam crossing, encapsulated by the upgrading of the Suam-Bukwo-Kapchorwa road, is emblematic of the Ugandan government’s commitment to fostering economic growth within the region. Sudi Mwatela, chair of the Kenya Long Distance Truck Drivers and Allied Workers’ Union, applauded the road project for its potential to alleviate congestion at the frequently congested border crossings of Busia and Malaba.

Mwatela, however, expressed concern about the steep and risky nature of the Uganda-side road and urged authorities to implement stringent safety measures. “Ensuring the safety of travelers on this road is paramount, as it stands to benefit not only the local economy but also the lives of those who traverse it,” cautioned Mwatela.

Raymond Omollo emphasized that beyond its trade-focused objectives, the project would also contribute to bolstering domestic security and serve as a catalyst for increased business activities. “This cross-border initiative is not only pivotal in accelerating business clearances but also encourages local investors to explore new horizons in cross-border trade,” stated Omollo.

In summation, the establishment of the Suam Customs post and the simultaneous upgrade of the Suam-Bukwo-Kapchorwa road herald a new era of cross-border trade facilitation between Kenya and Uganda. This collaborative endeavor, supported by major financial institutions and driven by mutual cooperation, is set to redefine trade dynamics in the East African region and create a pathway towards sustained economic growth and prosperity.

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