Non-tariff barriers a burden, minister admit | KINGAZI BLOG

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Monday, February 29, 2016

Non-tariff barriers a burden, minister admit


Minister for Foreign Affairs, Regional East African and International Cooperation, Dr Augustine Mahiga

 The government has conceded that the existence of non-tariff barriers (NTBs) is costing the country dearly on the economic front.
 
According to the Minister for Foreign Affairs, Regional East African and International Cooperation, Dr Augustine Mahiga (pictured), NTBs have also not helped Tanzania’s image if frequent complaints from neighbouring countries on the cost of doing business in the country are anything to go by.
 
Speaking at the launch of the One Stop Border Post (OSBP) at Holili and Taveta on the Tanzania-Kenya border, Dr Mahiga said the multiplicity of checkpoints and other obstacles were serious issues that ought to have been resolved long ago.
 
“I must admit that Tanzania had become an obstacle in getting certain goods and services to other neighbouring countries. For instance, the port of Dar es Salaam was one of the biggest NTBs,” Mahiga said.
 
Flanked by East African Community secretary general Richard Sezibera, the minister described the Dar es Salaam port - which serves as an entry and exit point for imports and exports from countries like Rwanda, Burundi, DRC and Zimbabwe - as being overstretched.
 
This, he said, had compelled the current (Tanzanian) government to address issues of corruption and inefficiency that had become the order of the day at the port. 
 
“Our aim is to reform and revamp the Dar es Salaam port so that it regains its lost glory,” said Mahiga.
 
He assured Kenya’s Cabinet Secretary (Minister) for EAC Affairs, Commerce and Tourism, Phyllis Kandie, that the government of Dr John Magufuli was determined to do away with bureaucracy and other obstacles hampering the EAC’s progress.
 
“A country cannot develop on its own as it takes two to tango,” Mahiga quipped.
 
According to official research, low skills and little use of modern technologies are affecting the management of cargo flows in East Africa, a problem which accounts for over 40 per cent of business costs in the region.
 
Financed by Trade Mark East Africa (TMEA), the $12 million state-of-the-art OSBP facility is expected to reduce the time spent in a cross-border trade transaction by combining all activities at a single location, with simplified exit and entry procedures and joint processing.
 
The concept of the facility is to reduce unnecessary traffic snarl-ups at the border point and ease the way of doing business in the region. According to Kandie, the OSBP is expected to also help in achieving the desired goal of regional political integration.
 
“Integrated border management is crucial, it is also imperative we involve business partners in implementing the OSBPs in the region,” she added.
 
TMEA one-stop border post director Theo Lyimo said the aim of such centres is to reduce transit costs incurred in cross-border movement, which is done by combining the activities of countries that share borders.
 
“The time taken by vehicles at border posts will be reduced by 30 per cent and trade effectiveness in the East African Community will be enhanced,” he said.
 
According to TMEA, the posts are expected to improve the performance of the northern and central corridors, saving $1.9 billion in annual transport costs.
 
East Africa is among regions in the world that have inordinately high transport costs, rendering it unable to trade competitively in international markets.
 
For instance, many hours are taken to travel to and from the hinterland to land-locked countries. Poor infrastructure and delays in crossing borders are also frustrating importers and exporters.
SOURCE: THE GUARDIAN

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