EAST AFRICA TRADE MUST NOT DISREGARD AfCFTA NEEDS
The six-member states that form the East African Community (EAC) have been challenged to undertake the right reforms intended to bolster and boost intraregional trade within the socioeconomic integration bloc.
This was said by the EAC secretary general, Dr Peter Mathuki, when addressing participants at a meeting of principal government officials and business community kingpins in the region on Wednesday.
This was at a recent forum in Arusha, which was jointly organised by the East African Business Council in partnership with the Federation of German Industries (BDI).
Noting that “there had been some encouraging outcomes regarding intraregional trade during the past few weeks,” Dr Mathuki nonetheless stressed that “more needs to be done so as to reach the desired levels” of intraregional trade among the EAC nations of Tanzania, Kenya, Uganda, Rwanda, Burundi and South Sudan.
The “encouraging outcomes” which Dr Mathuki had in mind include – but are not limited to – the removal of dozens of non-tariff barriers (NTBs) to, and an increase in, intraregional trade.
But, more still needs to be done, with the objective of boosting intraregional trade from the current 15 percent to 50 percent by year-2025.
This can be done partly by, for instance, revisiting the Common External Tariff system, further elimination of Non-Tariff Barriers and the liberalisation of trade in services, as well as functionally tapping new markets.
The ‘new markets’ in mind here include those of prospective EAC members like the Democratic Republic of Congo and Somalia, as well as those in the AfCFTA bloc.
But, without an iota of prejudice, it should be said in all honesty that we in the EAC must be extremely careful in ensuring that there is no clashing of the EAC and AfCFTA systems and/or objectives.
While regional integration is good, continental integration is even better… But, both must be contextually aligned and supportive of each-other for functional sustainability.
YES, MODERNISE PROCUREMENT
As wide part of efforts to improve public procurement, the East Africa Community member states of Kenya, Uganda, Tanzania, Rwanda and Burundi have already laid the groundwork for high-tech buying by government departments. In addition to improving efficiency and transparency in tendering, e-procurement saves time and cuts administrative costs.
We urge the government review existing legislation to support e-commerce and e-procurement. We have no choice as the whole world is quickly moving into online-based processes. Tanzania cannot afford to remain behind.
Many of the local businesses are heavily investing in information and communication technology (ICT) to increase efficiency and cut transaction costs. The arrival of fibre optic cables also presents an opportunity to tap into the full potential of the Internet.
The government should ensure that e-commerce laws are solid enough to combat rising cybercrime that is one of the big risks from e-commerce.
