Value addition initiative targets four products

By Guardian Correspondent , The Guardian
Published at 10:37 AM Apr 30 2024
Safari Fungo, national coordinator at Market Access Upgrade Programme (MARKUP)
Photo: Courtesy of MARKUP
Safari Fungo, national coordinator at Market Access Upgrade Programme (MARKUP)

TANZANIA Trade Development Authority (TANTRADE) and the International Trade Centre (ITC) have commenced the process of adding value to goods produced in the country through improvement of international business information systems.

The value addition initiative starts with four products namely coffee, avocado, spices and hides and skins.

Safari Fungo, national coordinator at Market Access Upgrade Programme (MARKUP) sponsored by the European Union, said the four-year project implemented in two phases intends to collaborate with the government to open up the country to international trade through product value addition.

“For example, many hides and skin products are sold as raw materials abroad without adding value, which means we export jobs and taxes outside the country instead of retaining them here to help with the growth of the economy,” he said.

He said the project targets to help the government to maximize the capacity to add value to the products to enable traders access the East African market, the Africa Continental Free Trade Area, the EU and other markets around the globe.

He said the project is expected to strengthen the capacity of institutions and entrepreneurs to export goods and most importantly access accurate market information which enables them to identify the measures they are supposed to take.

Fungo said through their collaboration with TANTRADE, they aim to improve the Tanzania trade portal to showcase the steps businesspeople are supposed to take before they export goods.

“For example, coffee products need to undergo 44 steps before they get exported outside the county and every step has to be paid for by the trader. We have now reduced them to 30 steps after a committee of experts advised we remove some steps to help businesspeople,” he said.

He said the aim is to create a conducive environment to conduct trade for traders and reduce red tapes, harmonise systems and ensure traders are not subjected to multiple registrations.

Fungo said some products have continued to remain behind in the international market like hides and skin which is being sold as raw materials.

Magdalena Shirima, coordinator of international trade information system at TANTRADE, said they have started to cooperate with stakeholders from the authority and the ministry of trade and industries in Tanzania Mainland and Zanzibar authorities to explore how the system can ease information access, permits and international trade licenses.