Rwanda and Burundi are threatening to retaliate against "unfair" charges imposed on their transporters by Kenya and Tanzania on the two regional transport corridors.
Uganda, too, has complained about road user fees for trucks headed to the Dar es Salaam and Mombasa ports.
The Dar es Salaam and Mombasa ports serve landlocked Uganda, Burundi, Rwanda and South Sudan and the Democratic Republic of Congo.
While Rwanda and Burundi charge a flat rate for road user fees, Kenya, Tanzania and Uganda apply the distance+weight principle, which Kigali and Gitega term discriminatory.
Rwanda charges $270 from Rusumo border to Kigali, which is equivalent to $80.83 per 100km, while Tanzania charges $10 per 100km. Rwanda charges Ugandan vehicles a flat rate of $152, against the agreed principle of distance-x-weight for transit vehicles.
Uganda is upholding the principle of distance-x-weight as directed by the 18th Sectoral Council on Transport, Communications and Meteorology (TCM).
Burundi charges traders from Tanzania flat rate road user charges of $152 from Kobero to Bujumbura, which is equivalent to $65.5 per 100km.
This is contrary to directives of the 18th Sectoral Council on TCM for partner states to adopt the Comesa rate of $10 per 100km.
Rwanda and Burundi say the ministers’ directive to calculate charges based on weight and distance favours Kenya and Tanzania, as the two have large land mass and therefore trucks pay more when applying the Comesa rules.
The matter is currently before the Council of Ministers whose meeting on November 26-27 was unable to resolve the issue.
“It favours big states and discriminates against smaller ones. In view of the above, Rwanda, being a small state and landlocked as well, cannot accept being punished based on its size,” said Dr Jimmy Gasore, Rwanda’s Infrastructure minister.
“Road user charges calculated based on axle load and distance should only apply to cargo trucks which originate from non-EAC partner states. EAC partner states should enjoy equal benefits of regional integration by removing anything identified as barriers.”
He said high transportation costs, including levies, fees, and charges, result in higher final prices, impacting businesses, trade, and end consumers, particularly in landlocked countries.
“There is therefore a need for the EAC to agree on fair and fact-based road user charges, not only focusing on micro-level factors like axle load/weight and distance but also considering other factors that favour all of us as a region,” Dr Gasore said.
The mandatory levy caters for the costs incurred in repairs and maintenance of the roads, but Rwanda wants the EAC to conduct a study to determine the “fair” fees.
“There is a need to do a study to determine the impact of the road user charges on the EAC economies,” the Rwandan minister said.
“We expected the Council to come up with a solution. Unfortunately, nothing has changed. We are still losing money,” said Ndarubogoye Abdul, president of the Rwanda Transporters Association and the CEO of TransAfrica Ltd.
Burundi supports the idea of a study but is also seeking bilateral talks with Dodoma, which by end of November 2024 were yet to take place.
“The bilateral meeting between Burundi and Tanzania as directed by the TCM has not yet been convened by the Secretariat. We are still consulting on the matter,” said Nibigira Ezechiel, Burundi’s Minister for East African Community Affairs, Youth, Culture and Sports.
Ugandan trucks using the Central Corridor pay $500, Kenya $200, Rwanda $150 and Uganda $100 per truck for goods in transit.
Kenya charges Ksh48,000 on transit vehicles carrying forest and timber products from Uganda to destinations outside the EAC.
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