Africa-Press – Tanzania. THE East African Community (EAC) partner states have been called upon to honour an agreement that seeks to promote crossborder trade.
The EAC member states entered into the agreement, through which the 6-member bloc aims to establish and utilise formal systems that attract between the states.
Implementation of the agreement will spur intra-regional trade and make the bloc one of the strongest in the continent financially.
Tanzania, Kenya, Uganda, Rwanda, Burundi and South Sudan could exchange with each other raw materials depending on everyone’s strength in their respective area.
Tanzania Private Sector Foundation (TPSF) Director of Members Services, Mr Zachy Mbenna noted that there are Tanzanians who export goods and offer services in other EAC states and get challenges as they face several restrictions that stall trade activities.
Speaking with cross-border traders, transporters and customs officials at the Tanzania – Kenya border of Taveta at the Tanzania side – Rombo District – over the weekend, Mr Mbenna said the restrictions lead to some businesspersons to opt for unofficial ‘panya’ routes.
That in turn leads to, among other things, non-compliance with tax laws, rules and directives. Mr Mbenna noted that the restrictions are imposed by customs officers and others who work on borders presumably after receiving orders from national authorities.
“We as private sector call upon East African countries to go back to the drawing board and see that all agreements are put into effect practically as soon as possible so as to work together and have in place official and conducive systems that will attract businesspersons to conduct more business in the bloc,” said Mr Mbenna.
He urged oversee business tables in EAC to conduct regular meetings so as to discuss challenges in restrictions that businesspersons face on different EAC country borders.
“We want to improve business doing settings by ensuring a conducive environment in the border areas so as to increase the private sector participation in contributing in improving the country’s economy as well as that of individuals,” said Mr Mbenna.
TPSF is Tanzania’s focal point for the East African Business Council (EABC).
Its members are business associations, corporate companies, multinationals, SMES and startups organised under different sector boards and working groups reflective of the various sectors of the economy.
It provides a platform for the private sector to engage in Public-Private Dialogue (PPD) at the local, national and international levels.
The Foundation opens potential markets for its members through business forums and participation in local and international trade fairs, as well as offering programs to build the capacity of members to become competitive.
It is a key partner to the government and other stakeholders in the formulation and implementation of policies and strategies geared towards spurring economic growth, wealth creation and national development.
A Business Officer with the Ministry of Industries and Trade, Ms Aneth Simwela called upon all institutions and departments meant to offer services at all borders to work diligently and efficiently so as to reduce and ultimately eliminate trade barriers and ensure due tax is paid by all traders.
“If civil servants will still be part of barriers to traders means that the businesspersons will not use the proper border posts; will use ‘panya routes’ hence reduce trade volumes and income to the respective country. We will have no proper data on cross-border trade. Let us strive and try not to be part of the problem,” said Ms Simwela.
Earlier on, some traders at Tarakea Border, said there are still challenges in implementation of the agreement that Tanzania has signed, pledging simplified ways of doing crossborder trade.
They were of the view that some countries are still rigid in execution.
