TradeMark East Africa (TMEA) has signed an agreement that will see the launch of a system that aims to eliminate paperwork and introduce a digital process that increases visibility of the supply chains between the UK and Kenya.
The system has deployed blockchain technology to link supply chains and enable fast logistic clearance and easier trading.
The UK-Kenya Trade Logistics and Information Pipeline (TLIP) digital trade corridor is expected to see increased bilateral trade that would benefit the entire East African Community (EAC).
Speaking about the system, the Cabinet Secretary for Trade in Kenya, Adan Mohamed, said:
“We look forward to seeing the better future of this partnership grow our trade balances. What is even more significant is the role it is going to play to support small and medium-sized enterprises.”
– Cabinet Secretary, Trade, Kenya
According to TMEA CEO, Frank Matsaert, the digital trade corridor will create ‘a more transparent, efficient, and cost-effective way of managing and supporting trade information, not just for the EAC, but also within the AfCFTA growing trade within the continent while also supporting global trade.’
Trade betwen the UK and Kenya has been growing for more than 2 decades. According to TMEA, the TLIP digital corridor system is expeted to further accelerate this growth by:
Reducing administrative procedures and time to import and export by atleast 30%
Reducing order turnaround times by up to 40%
Reducing compliance costs by 20%
Reduce duplication of steps in the trading proces by as much as 50%
TLIP promises to cut costs for Kenyan firms producing goods like green vegetables and cut flowers for export to the UK, reducing prices for UK consumers, importers and retailers.
UK exporters will also be able to benefit from better access to one of Africa’s fastest growing markets.
TLIP is the first digital trade corridor to be established between the UK and a developing country since the UK’s exit from the European Union in 2020.
About TradeMark East Africa (TMEA)
TradeMark East Africa is an aid-for-trade organisation funded by dev agencies of Belgium, Canada, Denmark, EU, Finland, France, Ireland, Netherlands, Norway, UK and USA.