News Categories: Tanzania News

DRC and Tanzania agreement to co-operate in railway services

DAR ES SALAAM Tanzania (Xinhua) -- The Tanzania-Zambia Railway Authority (TAZARA) and the National Railways Company of Democratic Republic of Congo (SNCC) have agreed to aggressively market their services to increase the volume of freight between the port of Dar es Salaam in Tanzania and the DR Congo, a TAZARA senior official has said. A statement issued by TAZARA Head of Public Relations Conrad Simuchile in Tanzania’s commercial capital Dar es Salaam said both TAZARA and SNCC had posted substantive improvements in their performances. "Transit time between Lubumbashi in DR Congo and Dar es Salaam has been scaled down from over 40 days to less than 10 days in the recent past," said the statement. It added that TAZARA alone was moving cargo between Dar es Salaam and New Kapiri-Mposhi in Zambia in five days on average. "With transit times reduced to such low levels, the incidences of theft of cargo have also been eliminated," said the statement. It said these improvements have come as a result of changes of leadership in both railways as well as measures taken by the shareholding governments to stabilize and boost railway operations by injecting funds and equipment. Both TAZARA and SNCC expressed regret that despite the abundant volumes of cargo being moved along the Dar es Salaam Transport Corridor covering DR Congo, Tanzania and Zambia, the railways’ share of less than 2 percent was unacceptably too low. The two railways pledged to pool their efforts together in allocating wagons and to address the...

Why Tanzania is not about to eclipse Kenya

Kenyans are being treated to a season of gloom and doom because Kenya is supposedly about to be eclipsed as the region’s dominant economy by Tanzania. Kenyans have “authoritatively” been informed by expert economic analysts that Tanzania is the new king of East Africa, and Kenya has lost out big time. What is behind this invitation to Kenyans to beat themselves? The first is the decision by Uganda to “abandon” its deal with Kenya to build a joint pipeline to the Port of Lamu in favour of one with Tanzania. The second is the decision by Rwanda to “abandon” Kenya’s Standard Gauge Railway (SGR) in favour of the one proposed by Tanzania. Never mind that not even one kilometer of track or pipeline has been laid, or even one dollar of the necessary finance been mobilized for both projects. The truth is that when you compare Tanzania’s economy to Kenya, it’s almost laughable that anybody can actually state that it can supplant Kenya’s dominance in this region. This is just self-serving analysis meant to push a given political narrative. What are the facts about these two economies? Tanzania’s 2016 budget of $ 13.5 billion (Sh1.35 trillion) pales beside Kenya’s budget of $ 22.6 billion (Sh 2.26 trillion), almost double in size. Further, the size of Tanzania’s economy, measured through its Gross Domestic Product (GDP), at $ 48 billion, is almost 25 per cent smaller than Kenya’s at $ 61 billion. These gaps have only grown in the last decade, and...

East Africa: EAC, Europe Have a Lot in Common

On June 17, Germany and Poland celebrate the 25th anniversary of the German-Polish Treaty on Good Neighbourly and Friendly Relations. In the past, relations between the Polish and German nations were often difficult and marred by conflict. The worst episode started with the invasion of Poland by Nazi Germany in 1939, with loss of life and destruction that continued until 1945. The process of reconciliation between Germany and Poland began as early as 1965, with a letter of reconciliation by Polish Catholic bishops to their German counterparts. This was the beginning of a long process. Crucial for its success was Germany's willingness to acknowledge the crimes committed against the Polish people and the unequivocal acceptance of responsibility for the suffering caused during the Second World War. Today, Germany and Poland are friends and partners in the European Union. The example of German-Polish relations is relevant for the East African region because it demonstrates that enmity and rivalry can be overcome and replaced by a mutually beneficial relationship grounded in shared values, characterised by equality and respect for one another, and strengthened by economic cooperation and cultural exchange. There are three outstanding benefits that regional integration can bring about: First, it is an important building block in deterring violent conflicts between nations. There has not been a war between members of the European Union since it was created. Instead, the focus has been on creating a single market based on economic freedom and effective common political institutions to deal with issues...

Davies outlines agricultural benefits from new EU trade deal

uth Africa is “satisfied” that the recently signed Economic Partnership Agreement with the European Union (EU) will lead to improved market access for some additional South African agricultural products, Trade and Industry Minister Dr Rob Davies said at the weekend, reporting that Cabinet had, therefore, “transmitted” the deal to Parliament for ratification. The EU remains South Africa's main trading partner with total trade of R536-billion in 2015. In addition, a significant portion of South Africa's R216-billion in exports to the bloc last year were value-added products. It is our preference that if you wish to share this article with others you should please use the following link: Speaking in Cape Town a week after six Southern African Development Community (SADC) members  – Botswana, Namibia, Mozambique, Lesotho, South Africa and Swaziland – signed the so-called EU-SADC EPA trade deal in Botswana, Davies highlighted particular improvements in the areas of fisheries and agriculture. Under the current Trade Development and Cooperation Agreement, which came into force in 2000, South Africa receives preferential access to the 500-million consumer, 28-country EU on 65% of its agricultural products. Under the EPA, however, there would be increased access for South African seafood, wine, canned fruit, sugar and ethanol. The current yearly tariff-free quota of 50-million litres of South African wine would be increased to 110-million litres, while 150 000 t/y of South African sugar and 80 000 t/y of ethanol could also be exported to the EU tariff free. There had also been improvements in market access...

The benefits of regional integration

On June 17, Germany and Poland celebrate the 25th anniversary of the German-Polish Treaty on good neighbourly and friendly relations. The close partnership that characterises the relations between our countries is not self-evident. During more than 1,000 years of neighbourship, relations between Poland and Germany were often difficult and marred by conflict. The worst episode in the history of the two countries started with the invasion of Poland by Nazi Germany in 1939. This resulted in millions of people being killed, the destruction of Warsaw and other major cities. As a consequence, a dramatic shifting of borders occurred with more millions of people forced to emigrate and abandon their homelands. Despite the division of the European continent after 1945 and the Cold War, the process of reconciliation between Germany and Poland began as early as 1965 with a Letter of Reconciliation by Polish Catholic bishops to their German counterparts. Crucial for its success was the German willingness to acknowledge the crimes committed against the Polish people and the unequivocal acceptance of responsibility for the suffering caused during the Second World War. Today Germany and Poland are friends and partners in the European Union which Poland joined in 2004. Both countries benefit from the level of integration the European Union, of which both are members, has brought about. The example of German-Polish relations is relevant for the East African region because it demonstrates that enmity and rivalry can be overcome and replaced by a mutually beneficial relationship grounded in a set...

NTBs on reduction plan to promote EA trade

Head of Government Communication Unit in the Ministry of Foreign Affairs, East African, Regional and International Co-operation Ms Mindi Kasiga told journalists in Dar es Salaam yesterday that the move will ensure smooth businesses among traders of the partner states. “We call upon traders and citizens to communicate with my ministry in case they encounter any non tariff barrier in their businesses within the regional bloc”, Ms Kasiga said. She said traders can lodge their complaints related to NTBs through short text messages by sending the word ‘NTB’ to 15593 or through www.tradebarriers.org. Ms Kasiga further noted that for track drivers travelling within the regional bloc can communicate directly to the Police Force through mobile number 0713631780. She, however, reminded traders to observe the required procedures for cross border trade within the EAC market to avoid inconveniences such as loss of goods. “Tanzanian businessmen can conduct trade within the EAC bloc without paying customs duty if they have fulfilled all the requirements approved by the partner states,” she observed. Ms Kasiga further outlined steps to be observed by small scale traders while conducting business in EAC market among them securing Simplified Certificate of Origin (SCO) which is provided for free at the customs border offices. SCO allows customs officials in the destination country not to charge import duty on consignment with the value not exceeding USD 2000. “The simplified certificate of origin is meant for small-scale traders whose goods do not exceed 2,000 US Dollars and they are not required...

Intra-EAC trade falls to $5.63 billion from $5.8 billion

The share of intra-EAC trade to the total trade declined to 10.1 per cent from 11.1 per cent between 2013 and 2014. Kenya, Uganda and Tanzania continue to dominate intra-East African Community trade even though its value fell from $5.8 billion to $5.63 billion in the same period. Kenya’s total exports to Uganda over the 2011-2015 period stood at $3.28 billion, followed by Tanzania ($1.98 billion), Rwanda ($734.93 million) and Burundi ($303.83 million). Exports to South Sudan, which was admitted to the EAC in March this year stood at $71 million. Intra-EAC trade is mainly dominated by agricultural commodities such as coffee, tea, tobacco, cotton, rice, maize, and wheat flour and manufactured goods such as, cement, petroleum products, textiles, sugar, beer and salt. Uganda remains a key market for Kenya’s exports, according to Kenya’s Economic Survey (2016). Similarly Kenya imported the most goods from Uganda at Ksh81.57 billion ($815 million) in the same period, followed by Tanzania ($748.64 million) and Rwanda ($36.45 million). But major imports came from South Africa, totalling $3.19 billion. Latest data from the Kenya National Bureau of Statistics (KNBS) shows that Kenya’s combined exports to Uganda, Tanzania and Rwanda  dropped from $69.9 million   in January to $1.56 million in February, before rising to $88.8 million n March. Last year, a study by Kenya’s Ministry of East Africa Community revealed that  the volume of Kenya’s exports to the EAC had fallen sharply largely due to unfair competition from Chinese traders and the country’s unfavourable taxation regime. Unfavourable taxation measures such as...

East Africa as single tourist destination

Famous for mountain gorilla and spectacular mountain scenery, Rwanda is set to host the annual Africa Travel Association (ATA) Congress to be taking place in Rwanda’s sprawling city of Kigali November this year. Bearing a theme of “Destination Africa: The Future of African Tourism”, the the ATA’s 41st Congress will be held in Kigali from November 14 to 17, bringing delegates from Africa, United States, Europe and other parts of the world. To be taking place in East Africa for three consecutive years, the ATA 41st Congress is set to focus the East African region as the single tourist destination in Africa and best for combined African safari. ATA 39th Congress was held in Kampala, Uganda in November 2014 and the ATA 40th Congress held in the Kenyan capital Nairobi in November last year. It will be the first time for Rwanda to host the ATA Congress and where the delegates will get a unique chance to observe Rwanda’s hospitality with a visit to a selected tourist hotspot in this fast growing African safari destination. Kenya is the first African and the East African state to host the first ATA Congress in 1976 just a year after the association was launched in New York the previous year, 1975, by a group of travel and airline executives. Other ATA Congress events which took place in the Kenyan capital of Nairobi were the ATA's 10th Annual Congress in 1985, ATA's 20th Annual Congress in 1995, ATA's 30th Annual Congress in 2005 and...

EAC competition authority to start operations in July

The East African Community Competition Authority (EACCA) will be operational from July with a mandate to curb unfair trade practices in the region and protect consumers from substandard goods. The authority will restrict trade practices and transactions that unduly limit fair competition. “The EACCA will commence operations in the 2016/2017 financial year and will act as a one-stop-centre in the enforcement of its provisions,” said Tanzania’s Deputy Minister for Foreign Affairs and East African Co-operation Susan Kolimba. Dr Kolimba said the Council of Ministers has appointed commissioners and a secretariat who are working on the modalities of EACCA operations. The East African Legislative Assembly approved $587,565 for the authority. In 2015, the EAC Council of Ministers adopted the East African Community Competition (Amendment) Bill, which provided for the establishment of the EACCA. The authority has jurisdiction in all the five partner states, while South Sudan will be covered at a later stage, as it is not fully integrated into the EAC. The EAC Competition Act, 2006, among other things, seeks to allow consumers to take class action against goods or services providers. It also seeks to seal loopholes that enable trade associations and firms operating across the region to engage in exclusive agreements, or form cartels, forcing consumers to pay higher prices for goods and services. Trade specialists say that while some EAC partner states have enacted national competition acts, these laws have proved inadequate to deal with cross-border and multi-jurisdictional competition cases. National competition laws and regulations are limited to political boundaries because they do...

Intra-EAC trade falls to $5.63 billion

Kenya, Uganda and Tanzania continue to dominate intra-East African Community trade even though its value fell from $5.8 billion in 2013 to $5.63 billion in 2014. The share of intra-EAC trade to the total trade declined to 10.1 per cent from 11.1 per cent in the same period. Intra-EAC trade is mainly dominated by agricultural commodities such as coffee, tea, tobacco, cotton, rice, maize, and wheat flour and manufactured goods such as, cement, petroleum products, textiles, sugar, beer and salt. Uganda remains a key market for Kenya’s exports, according to Kenya’s Economic Survey (2016). Kenya’s total exports to Uganda over the 2011-2015 period stood at $3.28 billion, followed by Tanzania ($1.98 billion), Rwanda ($734.93 million) and Burundi ($303.83 million). Exports to South Sudan, which was admitted to the EAC in March this year stood at $71 million. Similarly Kenya imported the most goods from Uganda at Ksh81.57 billion ($815 million) in the same period, followed by Tanzania ($748.64 million) and Rwanda ($36.45 million). But major imports came from South Africa, totalling $3.19 billion. Latest data from the Kenya National Bureau of Statistics (KNBS) shows that Kenya’s combined exports to Uganda, Tanzania and Rwanda  dropped from $69.9 million   in January to $1.56 million in February, before rising to $88.8 million n March. Last year, a study by Kenya’s Ministry of East Africa Community revealed that  the volume of Kenya’s exports to the EAC had fallen sharply largely due to unfair competition from Chinese traders and the country’s unfavourable taxation regime. Unfavourable taxation measures such...