EAC common market to benefit cross border traders

EUGENIA MADHIDHA (Msasanuri)

ABDUL is a cross-border-trader who every month makes a trip to Kenya where he sells various items. This Yombo, Kilakala resident is earning a living through trading and has been doing this for a long time now for his family to survive.

However, the man has been facing so many challenges hindering his business from prospering. He complained that the tax charged for his goods at the border is just too much such that sometimes he is forced to bribe whoever will be in charge for that day for him to pay less.

Besides this man, many traders have been complaining of similar problems expressing that sometimes they are forced to leave their goods at the border after failing to pay for the expenses. Innocent traders who are not interested in bribing just pay for the expenses but after selling their goods they find themselves frowning all the way to the bank because they would be having very little profits.

The traders also complained that sometimes there are a lot of road blocks and long queues at the border. This inconveniences them as they will delay them in their business since time in business is money. “Most of the time we loose our customers because they are snatched by those who would have come before us”, said one of the traders

As many traders were living in such misery, light is beginning to shine as the EAC moves into a common market next year, improving the performances of the Customs Union.

Prime Minister Mizengo Pinda was quoted by the media saying that bureaucracy at border posts; unnecessary length customs procedures, police road blocks and other factors were causing high costs of doing business in his speech at EAC high level Regional Forum on Customs Reforms and implementation of a fully fledged Customs Union in Arusha recently.

The PM added that there will be free movement of goods enabled by the Customs Union and also free movement of persons, labour, services and capital.

This came as sweet music to many traders whose businesses have been crippled by the hustles and who had lost hope as they can now get back on their feet.

As if it to promote the Customs Union, the Ministry of East Africa Cooperation organized a trip for twenty Tanzanian traders to other EAC member countries in November this year.

According to a statement issued to the press, the trade mission aims to mobilize investments to Tanzania as well as cementing existing business relations. Traders are going to learn various production and trading techniques.

Other cross-border traders are expecting to benefit a lot from their colleagues going for the trip. “We expect those traders to also come and empower us with the knowledge they will be having”, said Abdul adding that a candles looses nothing by lighting another candle.

In September last year thirty local traders were involved in a trip to Rwanda, Kenya, Uganda and Burundi which was made a success by the Tanzania Private Sector foundation (TPSF) in collaboration with the Ministry of East Africa Cooperation.

Statistics released in the statement indicated that Tanzania increased its exports to Kenya from $93.3m in 2005 to $232.2m in 2008. In 2006 Tanzania’s exports to Kenya were $103.7m and $123.4m in 2007

“Clearly as the EAC moves into the next higher level of integration, with the planned on-set of the common market, the deeper liberalization of Tanzanian capital account would give a much needed filling to the free movement of capital in the region,” said the EAC Secretary General Juma Mwapachu as he was commenting on the PM’s plan to review Tanzania’s capital account conditions which at present impedes the broad participation of Tanzanians in the region capital market.

However, if these are implemented properly and all promises fulfilled, traders are going to benefit a lot and operate their businesses without any hick-ups, hence making their life easier.