EAC Ministers Agree On Enhancing Business Environment

The Ministers responsible for Trade, Industry, Finance, and Investment in the East African Community (EAC) Member States have collectively agreed to continue improving the business environment within the Community, with a focus on removing non-tax barriers, facilitating cross-border cargo clearance, and enhancing trade facilitation infrastructure including One-Stop Border Posts (OSBPs).

They have also agreed on various customs duty rate proposals to be used in the financial year 2024/25 that will stimulate economic growth in member countries.

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This commitment was reached today on May 31, 2024, at the 44th Sectoral Council on Trade, Industry, Finance, and Investment (SCTIFI) meeting of the East African Community held at the Community’s Headquarters in Arusha.

Speaking about this commitment, Finance Minister Dr. Mwigulu Nchemba stated that this step was taken in compliance with directives issued by the Heads of State of the East African Community, instructing Executives and Leaders under them to improve the business environment and eliminate trade barriers within the Community.

Dr.  Nchemba,further mentioned areas of improvement agreed upon during the meeting, including agreements on road toll rates for Member States from US$16 to $10.

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Another area is the agreement on the implementation of the Single Customs Territory strategy, particularly for Tanzania and Kenya, where Tanzania has already begun its implementation.

The Republic of Kenya has pledged to start clearing Tanzanian goods under the single customs territory system immediately and by July 2024, and to bring its customs officials to facilitate inspections before the cargo starts moving to prevent delays at the border. This step will help alleviate congestion, inconvenience, and revenue loss for both the Government and goods transporters between Tanzania and Kenya.

“Tanzania has been facing a problem of truck congestion at our borders including Namanga, Sirari, Holili, and Hororo. This has been caused by the absence of KRA officials on the Tanzanian side who would help process cargo clearance documents at the border before the respective vehicle arrives at the border unlike it is now. The implementation of this commitment will help solve this long-standing problem that has been bothering us for a long time,” said Nchemba.

Dr. Mwigulu Nchemba,also led his counterparts in launching a new Electronic Customs system aimed at increasing efficiency in trade by creating an environment of transparency, accountability, and ultimately increasing revenue for the Member States of the Community.

The Ministerial meeting was preceded by an Experts level meeting held from May 27 to 29, 2024, and a Permanent Secretaries level meeting held on May 30, 2024.

Tanzania’s delegation at the meeting included Finance Minister Dr. Mwigulu Nchemba who also led Tanzania’s delegation, Shariff Ali Shariff, Minister of State in the Office of the President responsible for Labor, Economy, and Investment – Zanzibar, Deputy Minister of Foreign Affairs and East African Cooperation responsible for East African Affairs Stephen Byabato, and Deputy Minister of Industry and Trade Exaud S. Kigahe.