The East Africa Community (EAC) was established with the aim of widening and deepening cooperation among the EAC Partner States and other regional economic communities in, among others, political, economic and social fields for their mutual benefit.
One of the ways of reaping the economic and social benefits was through the establishment of One Stop Border Posts (OSBPs) as a trade facilitation tool applied at the borders, which promotes a coordinated and integrated approach to facilitate trade, the movement of people and improvement in security.
A One Stop Border Post (OSBP) is NOT simply a building where papers are processed at the border points of a country.
- Increased physical access to market- facilitated faster movement of goods, persons and services. Time is saved and so is cost of doing business.
- Enhance trade environment: Reduced of border trade formalities of processing documents.
- Improved business competiveness and this has an economic impact.
A study was conducted to establish the economic impact of OSBPs to the EAC. The study found a positive impact of OSBPs on revenue and trade facilitation. On the revenue frontier, the revenue trend line clearly indicates the revenue collected before and after establishment of OSBPs. Additionally, the study indicates the positive impact of OSBPs on trade facilitation through improvement of border crossing speed and efficiency thus a reduction on trade barriers and increase in trade volumes.
The research findings saw an an increase in cross-border security which has led to reduction in revenue leakages as well as better resource utilization through improved cross border cooperation and sharing of resources and intelligence. In light of these findings, the study recommends implementation of OSBPs to the other border points geared towards trade facilitation and revenue increase.