655.
On the policy level, although Tanzania unveiled a good National Trade Policy in 2003, adequate measures were not
put in place to support traders or implement targeted policies that would take advantage of available opportunities.
In addition, traders and business people did not engage aggressively enough in regional trade, partly because
of a lack of market information. With regard to production, some business enterprises lack confidence in the
quality of their products. Equally important is the lack of commercial farming and food processing which limits
adherence to quality and standards required for participating in external trade. Most smallholders produce for
their own consumption and the little surplus left is sold on the domestic market. Further, the lack of processing
facilities means exporting unprocessed agricultural products that have serious limitations, including low valueadded, poor quality control, and perishability because of poor storage facilities.
656.
The CRM learnt that Tanzania prepared a draft EAC Common Market Implementation Strategy 2011-2015 but
this is yet to be finalised. The document outlines the opportunities and challenges, identifies the roles of various
institutions, sets out strategic intervention areas where actions are required, and provides recommendations for
policy, planning and resource allocation. The CRM observed that adoption and implementation of this strategy
will go a long way in helping Tanzania prepare adequately for full participation in the Common Market.
657.
The CRM noted that there is an underlying uneasiness regarding the participation and representation of Zanzibar
in the EAC. The Zanzibar government has expressed wishes to be directly represented in the organs of the EAC.
658.
The CRM welcomed the fact that Tanzania’s 5-year Development Plan (2011/2012 - 2015/2016) set a number
of targets, including increasing Tanzania’s world market share, from the current 0.022 per cent to 0.1 per cent
by 2015/16; market share in the EAC from the current 28 per cent to 40 per cent by 2015/16; market share in
SADC from the current 5 per cent to 10 per cent by 2015/16; contribution of trade to GDP from the present 16 per
cent to 20 per cent by 2015/16; establishing trade and marketing information systems; renewing and enforcing
the related legal framework.
659.
In order to achieve the above trade-related targets, the Plan prioritises the removal of a number of crucial
constraints to accelerated economic growth and development in Tanzania. These include the lack of a reliable
and adequate supply of electricity; poor infrastructure quality, especially for the transport network and, in
particular rural feeder roads, railways and sea ports; inadequate supply of skilled labor; limited access to secure
land rights; limited domestic value added to primary products; and a lack of access to finance, especially for
SMEs and in the agriculture sector.
660.
The Plan puts considerable emphasis on trade and notes that increasing benefits to Tanzania from participation
in regional and global trade depends on the country’s ability to increase its production capacity; to increase
product competitiveness (in terms of the cost of production and quality of products); to have accessible markets;
to facilitate producers’ access to market information; and to have an efficient financial service infrastructure
to facilitate payments and settlements. These conditions are addressed throughout the Plan, which aims at
promoting the country’s productive capacity and leveraging the geographical location to enhance competitiveness.
The CRM confirmed that trade issues identified in the Plan are indeed critical and are being vigorously pursued
to ensure that Tanzania benefits from trading arrangements.
661.
A major observation of the CRM during the consultations is that the general public lack a proper awareness
of integration matters, including the potential benefits. An appropriate communication policy and strategy was
adopted at the level of the EAC but this is yet to be fully implemented in Tanzania. Efforts are also underway
to develop a national communication strategy to fill the information gap. It was observed that EAC integration
matters are under the purview of the Ministry of East African Cooperation while SADC matters are handled by the
Ministry of Foreign Affairs and International Cooperation. This poses the challenge of effective coordination and
alignment of integration matters. Bringing the two portfolios under a single ministry will improve coordination
and create synergy.
662.
The CRM took note of the outcome of the Tripartite Summit of Heads of State and Government of EAC, SADC and
COMESA held in Kampala, Uganda in 2008. They provided guidance on advancing cooperation and coordination
of programmes under the Tripartite arrangement. The Tripartite Summit agreed on the following key areas of
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