Contract signed to launch a new digital trade corridor between the UK and Kenya

TradeMark East Africa (TMEA) and the Institute of Export and International Trade (IOE & IT) have signed a Memorandum of Understanding that provides a framework for collaboration in the implementation of a digital trade corridor between the UK and Kenya.

The initiative, the UK-Kenya Trade Logistics Information Pipeline (TLIP), aims to eliminate the paperwork and introduce much better visibility of the supply chains between Kenya and the UK. It will cut costs for Kenyan companies producing goods such as green vegetables and cut flowers for export to the UK and lower prices for UK consumers, importers and retailers. The UK exporter will also benefit from better access to one of the fastest growing markets in Africa.

TLIP is the first digital trade corridor between the UK and a developing country since the UK left the European Union. In fact, TLIP is very much based on the Economic Partnership Agreement (EPA) signed between the UK and Kenya at the end of last year.

IOE & IT General Director Marco Forgione said:

“We are proud to be a partner in the TLIP project. We believe it can bring significant benefits not only to merchants in the relevant supply chains but also to the UK to secure its position as a global leader in digital commerce. Provisions to improve digital delivery are an increasingly important part of trade agreements – and initiatives like these will make them successful. “

TMEA CEO Frank Matsaert said:

“TMEA is excited to expand our in-house digital solution and extend TLIP to the UK, creating a transparent, efficient and cost-effective way to manage trade information to support and increase trade efficiency between the two countries. TLIP is also expected to support intra-AfCFTA trade, support growing intra-continent trade and global trade. “

At its core, TLIP has three engines:

  • A “digital engine”, based on distributed ledger technology (DLT), will support trade transactions, manage cross-border data flows and ensure the traceability and tracking of goods.
  • An “information machine” will provide a consolidated single point of contact for market and regulatory information needed by suppliers, buyers and other intermediaries.
  • A ‘Policy of Governance Engine’ will support the development of complementary framework conditions such as the innovation of trading instruments, procedures and processes as well as the development of digital standards within the supply chains.

Trade between the UK and Kenya has been growing in both directions for over two decades. We believe TLIP has the potential to further accelerate this growth by:

  • Reduction of administrative procedures and time for import and export by at least 30%
  • Reduction of order lead times by up to 40%
  • Reduction of compliance costs by 20%
  • Reduced duplication, resulting in a reduction in steps in the trading process by up to 50%

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