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Ethiopia, Djibouti, S. Sudan and Sudan to Form New Trade Corridor

Djibouti, Ethiopia, S. Sudan and Sudan reached on consensus to establish a logistics authority called the Djibouti Corridor Authority (DCA) and a one Stop Border Post development project to expedite the transit of goods and passengers.

The authority, which is expected to begin operation by the end of the year, targets at advancing economic activity in the region.

The formation of the sub-regional body extends route for the transportation of goods by land and sea among these countries.

The Common Market for Eastern and Southern Africa (COMESA) devised the regulation that will administer the DCA. The document says that countries should grant each other the right of transit to facilitate the movement of goods throughout the region.

“The Djibouti Corridor is available to imports and exports from corridor member states as an efficient economic addition to other trade routes, probably the most cost effective,” the draft document explained.

Customs offices found on either side of a given border are also compelled to revised customs transit procedures and implementation of collective customs control.

According to experts comment, Ethiopia and South Sudan, the two landlocked countries in the corridor, are availed with access to the two ports in Sudan and Djibouti.

Similar to DCA, Northern Corridor Transit and Transport Coordination Authority (NCTTCA) was founded in 1985 in Eastern Africa by Burundi, Democratic Republic of Congo, Kenya, Rwanda and Uganda.

NCTTCA links landlocked countries of Uganda, Rwanda, and Burundi with Kenya’s maritime port of Mombasa.

Source: Capital

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