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Rejoin Comesa, business lobby urges government
2007-12-24 09:47:28
By Lusekelo Philemon
The Tanzania Private Sector Foundation (TPSF) has challenged the government to change its position and rejoin the Common Market for Eastern and Southern Africa (Comesa) to enable the country\'s business community explore and expand their business horizons in the region.
``Up to now no concrete measures have been taken to enable Tanzania to trade with Comesa countries like Burundi, Comoro, DRC, Malawi, Rwanda and Zambia, which are very potential in terms of business and trade,`` said TPSF chairperson Esther Mkwizu at a business dinner held in Dar es Salaam over the weekend.
The dinner was organized by TPSF in collaboration with the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA) and the Confederation of Tanzania Industries (CTI).
According to Mkwizu, lack of any trade arrangement with these countries has made it difficult for Tanzanian exporters and manufacturers to compete in the Comesa economic bloc and has led to the loss of export revenue estimated at USD 60 million per year.
``Similarly, the country has failed to maximise trade facilitation programmes which exist in Comesa. These include Comesa Yellow Card, Comesa Carrier Licence, Comesa Transit and Automated System for Customs Data Management (Asycuda) and Comesa Single Goods Customs Declaration Documents,`` she said.
She explained that studies carried out on the impact of Tanzania`s withdraw from Comesa have shown that the country was losing a lot.
``We`ve already submitted reports to the government and we hope the government will work on them with a view to seeing the justifications for Tanzania to rejoin Comesa and therefore maximise benefits and opportunities which exist under this common market,`` she stressed.
Commenting on the role of the private sector in the country’s development, Mkwizu said that TPSF will continue to support government efforts of meeting the nation`s Development Vision 2025, MDGs and the National Strategy for Growth and Poverty Reduction (Mkukuta).
She however pointed out some of the private sector challenges as inadequate electricity supply, which has negatively affected smooth production of goods and provision of services.
Increase in fuel price as a result of oil price hike in the world market, and the high increase in excise duty announced in the 2007/2008 government budget, lack of infrastructure and increase in the importation of counterfeit goods were other main problem which adversely affected business this year.
Afwilile Mwakijungu, TPSF’s economic consultant, said Tanzania`s business community enjoyed the fruits of Comesa for 15 years only-from 1986-2000.
``At that time, Tanzania’s business community enjoyed a reduction in import duties up to 80 per cent and transport facilitation instruments, removal of non-tariff barriers and harmonisation of various customs administration documents, laws and procedures through the PTA/Comesa programme of Asycuda and Eurotrace,`` he said.
Currently, Comesa is made up of 21 member states including Angola, Burundi, Comoros, D.R.Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan Swaziland, Uganda, Zambia and Zimbabwe.
According to Mwakijungu, Tanzania`s exports to Comesa had increased from USD 80.33 million in 2001 to USD 198.32 million in 2006, while imports increased from USD 142 million in 2001 to USD 245.30 million in 2006.
He explained that the increase in Tanzania`s trade with Comesa countries has been achieved at a higher cost to the business community than if Tanzania was a member of the regional bloc.
He however said the cost of multiple membership as at December 2005, in the form of annual contribution to the EAC was USD 3 million, SADC was USD 1.2 million and Comesa was only USD 0.6 million.
``The treasury annual contribution to the EAC, SADC and Comesa secretariat budget is not an issue, given the huge benefits from membership and the current sound financial position of the government,`` he insisted.
``Overlapping customs unions in ESA is no longer an issue as Tanzania is already a member of EAC customs.
It can join the Comesa as well as the SADC, FTA and contribute to the harmonisation of programmes in Comesa and SADC,`` he said.
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