Ethiopia’s tax authority wants cargo trucks fitted with tracking devices

The ERCA will spend an estimated US$2.5 million to install electronic cargo tracking systems on around 10,000 trucks to fight pilfering of cargo on transit.

The US-based HI-G-TEK Company developed the tracking device, which has since installed the system in six stations located in Addis Abeba, Modjo, Adama, Mille, Galafi, Awash and ports in Djibouti and is at the moment awaiting local IT firms to install the tracking devices onto the trucks.

Each truck will need around US $1,125.58 to have the devices installed, says the Authority. Not only cargo transit trucks will be fitted with the devices but even fuel tankers and lorries of different carrying capacities are required to comply.

According to ERCA, containers and bulk cargo trucks will be fitted with new seals and locks and compact readers and GPRS devices to help to read seals and locks and to identify locations of cargo.

The move by the ERCA to fit track devices on all cargo transit trucks is a commendable one and even the truck owners prop it.

The ERCA requires around US $ 280,100 capital investments from the local IT companies as guarantee, pay for an insurance bond worth around US $ 113,000, and have a five-year contract with major IT suppliers.

This was even worse earlier on, as the local IT companies were required to have around US $ 1120000 as capital investment, a requirement they highly criticized and lodged complaints including to the prime minister’s office.

At the moment, a few firms have expressed interest in contracting to import and supply the tracking devices although aggravated with the authority’s requirements. The firms include GCS Tracking plc, Global Tracking Plc, Rasmi Industrial solution plc and FC tracking.

The Ministry of Transport (MoT) is negotiating with the authority to connect its fleet management system with the ERCA’s interface, which might make fleet management simpler.