BILATERAL trade agreements reached in the country have enhanced exports in the recent years, despite worrying decline in traditional goods’ trade. The assertion was made on Thursday by Trade and Industries Deputy Minister, Eng Stella Manyanya, while launching a Trade Research and Capacity Building programme jointly being implemented by REPOA and International Institute for Social Studies of Erasmus University (ISS) in the country. “We have a number of bilateral arrangements, which collectively provide Tanzania with benefits from duty free, quota free arrangement or a waiver to minor customs’ charges imposed by industrialised countries,” she said. The Deputy Minister further said: “Their dividends are all abundant and seen with the value of our exports increasing in recent years, and recording annual growth of 11.9 percent to 9,534.4 million US dollar in the year ending November 2019.” She further noted that despite the developments, there has been a worrying decline in the value of traditional goods, mainly agricultural ones, which provide livelihoods for many nationals. “Our traditional exports fell by 21.4 percent to 740.3 million US dollar in 2019, despite improvements in our coffee, cotton and sisal agro-industries,” said Eng Manyanya. The Deputy Minister said evidence-based research would strengthen the capacity of policy makers, exporters and trade associations to review trade and related economic policies, which promote trade competitions and diversifications in the market. She said that the government would continue putting in place an enabling environment for research organisations to carry out independent surveys in line with their profession, regulations and...

THE journey to an East African Community (EAC) political confederation is taking shape as experts are now engaged in consultations in Burundi. The constitutional experts are holding national stakeholders consultations as they go forth in preparations to draft the EAC Political Confederation Constitution that is expected to get completed by 2022. The EAC Secretariat says the consultations that started on Tuesday in Bujumbura, Gitega, Ngozi and Makamba were launched on Wednesday by President Pierre Nkurunziza and are being conducted under the leadership of Dr Benjamin Odoki, the Ugandan retired Chief Justice. The exercise goes on until January 20th. “The objective of the consultations is to obtain stakeholders’ views on their interests and other key issues that will better inform the drafting of a model political confederation and subsequently a confederation constitution in line with the principle of a people-centred Community,” said Ambassador Liberat Mfumukeko, the EAC Secretary General. The national stakeholders’ consultations are also expected to enhance awareness on the ongoing constitutional making process for transforming the EAC into a political confederation, as well as prepare the public in general to give their inputs into the draft constitution once it will be drafted. “National Stakeholders’ consultations will ensure participation of EAC citizens in the integration process and particularly the political federation pillar,” said Ambassador Mfumukeko. The drafting of the EAC political confederation constitution is being undertaken by a team of constitutional experts nominated by the EAC partner states. The 18-member team is chaired by Justice Odoki. It will be passed...

Deputy Minister for Trade and Industries, Eng Stella Manyanya gave the remarks here yesterday when launching the trade research and capacity building programme jointly implemented by REPOA and International Institute for Social Studies of Erasmus University (ISS). “We have a number of bilateral arrangements, which collectively provide Tanzania with benefits from duty free, quota free arrangement or a waiver to minor customs charges imposed by industrial countries” said the deputy minister Adding “Their dividends are all to abundant to see, with the value of our exports increasing in recent years, recording annual growth of 11.9 per cent to 9,534.4 million US dollar in the year ending November 2019” However, she said, despite such developments, there has been a worrying decline in the value of traditional goods, mainly agriculture-based which provide for the livelihoods of large proportions of the population. “Our traditional exports fell by 21.4 per cent to 740.3 million US dollar in 2019, despite improvements in our coffee, cotton and sisal agro-industries” said Eng Manyanya Thus, he said, evidence-based research as the one that aimed at strengthen the capacity of policy makers, exporters and trade associations to review trade and related economic policies to promote trade competitiveness and diversification for widen trade opportunities are vital. She said the government will continue to put in place enabling environment for research organisations to carry out independent, inline with professional ethics, regulations and national laws. Eng Manyanya commended European Union among other development partners for their continued support for only in capacity...

The government of Tanzania has inked a deal to link its Standard Gauge Railway (SGR) to Burundi and the Democratic Republic of Congo. The agreement which was signed between Transport ministers of the three countries Isack Kamwelwe (Tanzania), Jean Bosco (Burundi) and Roger Biasu (DRC), gives Burundi and DRC direct access to the Dar es Salaam Port, greatly boosting Tanzania’s Central Transport Corridor. Tanzania transport minister Mr. Isack Kamwelwe affirmed that the deal is in line with the completion of a preliminary feasibility study of detail design plans which was successfully done by the consultancy company Gulf Engineering Ltd. Standard Gauge Railway (SGR) The rail line will start from Uvinza district in Kigoma region in north western Tanzania to Gitega, via Msongati region, in Burundi, covering a stretch of 240km. It will then be extended to the eastern regions of DRC according to the agreement. Tender for the project will be issued out this year. Upon completion, Tanzania’s SGR line will be 1,457 km stretch from Dar es Salaam to the shores of Lake Victoria. DRC’s President Felix Tshisekedi commended the deal and said that the extension of the SGR line to Rubavu from Kigali would open trade opportunities for the landlocked DRC which depends largely on the ports of Dar es Salaam and Mombasa to access the sea. Tanzania will become the third country in East Africa to start enjoying modern railway services after Kenya and Ethiopia. Kenya, was the first in the region to start constructing an SGR line,...

Le bénéfice de 6 milliards de Franc CFA du Port Autonome de Dakar annoncé sur 2018 s’inscrit en trompe-l’oeil tant il est loin des performances de 2010 quand la plateforme dégageait 23 milliards de Franc CFA. Autant dire que, sous le magistère de Aboubacar Sédikh Bèye, le PAD, doté de bonnes intentions et d’un plan stratégique 2019-2023 axé sur le désencombrement, semble certes revenir au dessus de la ligne de flottaison. Mais l’on est loin de l’âge d’or des années 2000-2010 pour cette vieille plateforme datant de 1867 et évoluant désormais à bonne distance derrière Lomé, Lagos, Tema, et Abidjan. Assurant actuellement 65% du trafic à destination du Mali, Dakar doit surveiller de près la concurrence (Abidjan) qui convoite cette manne. Le trafic du Mali qui représente 17 à 18% du volume du trafic du PAD pâtit de l’arrêt de la ligne ferroviaire entre Dakar et Bamako. “Il y a cinq ans, 75% de ce trafic partait par le train. Aujourd’hui, c’est 0%”, déplorait le Directeur du PAD, en juin 2018, lors du lancement de son plan stratégique. Le trafic vers le Mali passe désormais par la route, ce qui occasionne des coûts d’entretien routiers évalués à 55 milliards de Franc CFA par an selon le ministère sénégalais des Infrastructures. L’avantage comparatif du port de Dakar dépend aussi des infrastructures portuaires. Les travaux d’extension du «Môle 3» devront permettre de rattraper le retard accumulé. Cette plateforme datant de 1939 a entamé sa cure de jouvence en juillet 2019 grâce à...

““Our Mission is to promote, assist and enhance economic and business development for all our members at both National and County level so as to stimulate wealth at all levels of governments right from the communities they represent,” she reckons. The two-day program was initiated by the High Commissioner of Uganda to Kenya Phoebe Otaala ,under the theme “Unlocking business women’s potential in the region”. The delegation further paid a courtesy call on Uganda President Yoweri Museveni to sought his guidance and intervention on various challenges facing businesses along the Kenya Uganda border. WIB acknowledges that the existing structures such as border offices and market stalls are often dilapidated, whilst toilets, lighting, and fencing are typically absent. In addition, high customs duties, complex clearance procedures, cumbersome documentary requirements (often featuring centralized permit and licensing systems), along with unpredictable trade policies all contribute to raising trade costs. “We shall strive to blend all women professionals in the Women in Business to find the synergy required to empower and create an expanded economic atmosphere and market for all-inclusive business development,” Muthoni says. The business lobby group has voiced its support or contents of the Building Bridges Initiative Report. Through its President Muthoni, the group supports the recommendations to allow the youth to least have a seven year tax holiday as an initiative to help them in business entrepreneurship. She stated the tax holiday would encourage both women and youth to engage in business. Muthoni further termed the tax holiday proposal as crucial...

The much anticipated African Free Trade Zone – the world’s largest trade zone – is set to launch in July this year. It will be a major development for the continent where most countries mainly trade with nations outside Africa. Only 15% of trade is done between African countries compared to 70% of trade among European nations and 25% in the South East Asian region. The Continental Free Trade Area will comprise of 53 African countries with a population of 1.2 billion people and an estimated gross domestic product of $2.5 trillion. Eritrea is the only African country that has not signed the African Continental Free Trade Area treaty. Some of the challenges that are likely to hinder the single market project are: Poor road and rail networks linking African nations Underdeveloped industries High dependence on custom revenue Inefficient border posts Additionally, there are concerns that the more developed nations will gain from the single market at the expense of the less developed nations. Countries like South Africa and Egypt, with their advanced industrial base, will benefit by selling their goods to less developed markets in the region. For the Single Market trade agreement to succeed, African countries need to improve their infrastructure, create new revenue streams away from customs income, eliminate protectionist laws, and improve efficiency at points of entry. Source: The Kenyan Wall Street

Developing countries’ merchandise imports increased by 12 per cent in 2018, says the latest World Statistical Review 2019, which looks into the most recent trends for trade in goods and services. Merchandise imports totalled $7.97 trillion in 2018, according to the report. Developing economies’ imports grew at a faster rate than those of developed economies and the world, with Africa showing double digit growth in 2018. In the 2019 African Economic Outlook, published by the African Development Bank, East Africa remains the fastest growing region in Africa and one of the fastest in the world. Five of the Africa’s 10 fastest growing economies that are reshaping the continental order are in the eastern region and Tanzania—which is bordered by seven countries: DR Congo, Burundi, Kenya, Uganda, Malawi, Mozambique, and Rwanda—is one of them. As a dual member of the Southern African Development Community (SADC) and the East African Community (EAC) that is currently mulling the process towards ratifying the African Continental Free Trade Area (AfCFTA), Tanzania offers easy business and trade connectivity to other locations worldwide. Indeed, the country’s biggest port, the Port of Dar es Salaam, provides a critical transit point for cargo from various neighbouring landlocked countries. In a bid to drive foreign investment, the government is offering tax incentives by way of generous capital deduction provisions for qualifying sectors e.g., manufacturing, agriculture, mining, and petroleum. Taking the above into account, this new article series starts with a primer on insights into the Tanzanian tax system pertaining to...

The government of Tanzania has announced to have secured US $272m loan from African Development Bank (AfDB) to construct an international airport in its capital city Dodoma. The project is part of programme to expand the East African nation’s infrastructure. It will be built in Msalato, 12 km from Dodoma. It will include a passenger terminal, runway and related infrastructure. The new airport project which will take approximately four years for construction, will have a capacity to handle 1 million passengers annually and will have a runway of just over 2km in length. Project funding The funding package comprises a US $198.6m loan from the AfDB, US $23.52m from the African Development Fund, and US $50m in co-financing from China’s Africa Growing Together Fund, which the AfDB manages. Located in the centre of the East African country, Dodoma has been the official capital since 1973, but ministries resisted relocating from the busy port metropolis of Dar es Salaam until recently. Only in October last year did President John Magufuli officially move his office to the city of about 410,000 people. “An expanded air transport network in Dodoma, together with the ongoing high-speed railway construction on the central corridor, are necessary infrastructure investments to help unlock and disperse spatial development in the countryside.This will strengthen the city’s potential as a strategic growth pole in keeping with Tanzania’ national development aspirations of fostering shared growth for all the regions,” said Amadou Oumarou, the AfDB’s infrastructure and urban development department director. Source: Construction Review Online

Africa made history this year as the agreement establishing the African Continental Free Trade Area (AfCFTA) officially entered into force. As trading under the AfCFTA starts on July 1, 2020, with a market of over a billion people and income of about $3 trillion, the big question is whether the new free trade area will lead to one big African market. Already, the AfCFTA has energised the continent by positioning regional integration front and centre. By requiring member states to remove tariffs from 90 per cent of goods, the agreement is expected to boost trade among African countries from its low level of 16 per cent. The Economic Commission for Africa estimates likely trade effects of over 50 per cent. Yet, lowering tariffs further will not be the magic bullet. Overcoming non-tariff barriers is key. Here are factors to facilitate one big African market. Regional Economic Communities (RECs): Africa’s regions have many RECs with overlapping memberships, including the Common Market for Eastern and Southern Africa and the East African Community. These RECs are at different stages of integration. The AfCFTA aimed to consolidate them into one entity. That did not happen. AfCFTA’s Article 19(2) states that “members of a regional economic community that have attained higher levels of regional integration than under the AfCFTA, shall maintain such higher levels among themselves”. This provision mandates trade liberalisation to follow different paths, not one single market. The signatories recognise the problem of many overlapping RECs. At their July summit meeting, they asked...