Tanzania Govt still in talks on free trade area

Dar es Salaam. The government says it is still holding talks and internal consultations before ratifying the African Continental Free Trade Area (AfCFTA) agreement, which came into force in May.

Tanzania is among countries that have yet to ratify the agreement that is aimed at creating a free trade area with more than 1.2 billion people and a combined GDP of $3 trillion.

Trade and Industry minister Innocent Bashungwa told The Citizen yesterday that Tanzania was willing to ratify the deal, adding that it was just a matter of time. However, he declined to state when exactly the country will ratify the agreement.

He said Tanzania has been participating in various AfCFTA dialogues, including an ongoing meeting in Niger, where Vice President Samia Suluhu Hassan is attending.

“The government is playing an active role in the (AfCFTA) process, and our intention is to see how best our comparative advantages can benefit us and the rest of the continent,” Mr Bashungwa said.

With its ports and plenty of arable land, Tanzania is positioned to become a major production hub for African markets, he added.

Mr Bashungwa said the government was also undertaking major regulatory reforms in industry and trade to improve the general business climate.

AfCFTA envisages the removal of tariffs on up to 90 per cent of 200 items traded within the continent.

At least 50 of the African Union’s 55 member states have so far signed the agreement to establish the free trade area.

While AfCFTA promises to unlock Africa’s economic potential, the agreement still faces an uphill battle on implementation.

The United Nations Conference on Trade and Development (Unctad) estimates in a recent report that AfCFTA will increase intra-African trade by 33 per cent and generate $16.1 billion in additional revenue.

Mr Bashungwa said the government would continue to promote export processing zones and special economic zones to enable the country increase the production of goods for both the export and domestic markets.

Other reforms include review of industry and trade policies and changing regulations with a view to boosting investor confidence.

Major infrastructure projects, including construction of the standard gauge railway, are also expected promote production.

“As part of the global economy, Tanzania needs to reassure investors that the country is and will remain friendly to them,” he said.

In another development, Mr Bashungwa said the government would continue to promote the Dar es Salaam International Trade Fair (DITF) as a meeting place of business communities from both inside and outside the country instead of an event where people simply buy and sell goods.

He added that Tanzanians should view the DITF as an opportunity to seek investors and business partners.

“Our core vision is to continue making DITF a business-to-business (B2B) meeting place where Tanzanians meet investors and producers from outside the country.”