Africa-Press – Tanzania. THE East African Business Council (EABC) has said the bilateral engagements are instrumental in addressing constraints that impede the smooth intra East African Community (EAC) trade.
This can be facilitated through the implementation of joint policies and regulations, exploit individual competitive edge and eliminate non-trade barriers by the partner states.
Speaking during the visits of the Rwandan High Commissioner to Tanzania to the EABC over the weekend, the EABC Chief Executive Officer Mr John Bosco Kalisa said also that the inadequate infrastructure and Non-Tariff Barriers (NTBs) were some of the challenges hindering the growth of intra-EAC trade.
The Tanzania Investment Centre (TIC) said recently that the government efforts to create enabling investment climate by establishing new infrastructures, removing red tapes and improving the regulatory environments have started to yield positive results due to increased investment flow.
For example in just three months from April to June this year, the number of new projects registered was 84, which is equivalent to a 68 per cent increase compared to the 50 recorded in a similar period last year.
The government quest to continue creating a good investment climate aims at fostering productive private investment which is the engine for growth and poverty reduction.
Recently, Prime Minister Kassim Majaliwa stressed that the government will continue to improve and establish new major infrastructures to further attract investments and steer economic growth.
More emphasis put by the government on the improvement of infrastructure is a key factor in the facilitation of investment and business flow.
So far, the government has invested heavily in various infrastructure projects including roads, energy, railway, purchase of new planes and building several structures to strengthen investment.
Mr Kalisa appreciated Rwandan President, Paul Kagame, for providing business stimulus packages for SMEs &manufacturing sectors and vaccination of over 1 million people geared to speed economic rebound and growth.
“Rwandan High Commissioner visits, signals government’s deep commitment to steer economic diplomacy in partnership with the East Africa private sector to improve the business environment and competitiveness of the EAC bloc,” he said.
Mr Kalisa stated that under Dr Mathuki, EAC Secretary General, EABC successfully launched the EAC-EABC Technical Working Group set to resolve trade hurdles.
Other regional business priorities presented to Rwandan High Commissioner include Open Skies, Hotline at the border to report NTBs, Trade facilitation at the border and ports, African Continental Free Trade Area, Economic recovery and Stimulus package for business amid the COVID-19 pandemic.
In his remarks, Rwandan High Commissioner to Tanzania, Charles Karamba commended the EABC for being an ambitious institution set to unlock trade barriers in the EAC region. According to Organisation for Economic Co-operation and Development (OECD), in 2019 Tanzania exports to Rwanda hit 247 million US dollars while imports stood at 5 million US dollars.
The exports of Rwanda to Tanzania have increased at an annual growth rate of 20.8 per cent from 65,400 US dollars in 1996 to 5 million US dollars in 2019. He noted that current challenges to trade have been compounded by the Covid-19 pandemic hence the need for improved partnership with the private sector to build back better our economies.
