CAPITALISE ON CONGO EAC ENTRY TO EXPAND TRADE

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Mwananchi Communications Limited

What you need to know:

The DRC, which now links the Indian and Atlantic oceans in the bloc, will help increase the region’s nominal GDP from $193 billion to $240 billion.

The entry of the Democratic Republic of Congo (DRC) into the East African Community (EAC) was long overdue.
On Tuesday, the vast Central African country with a 90-million-strong population was formally admitted to the EAC, making the bloc one of the largest trading areas on the continent.
The debate on who stands to gain, or lose continues on various platforms. However, it is without doubt that the DRC is a desirable addition, and all EAC members stand to benefit from its admission.
Obviously, not much can change straight away because DRC’s parliament still has to ratify EAC laws and regulations before they come into effect.
The DRC, which now links the Indian and Atlantic oceans in the bloc, will help increase the region’s nominal GDP from $193 billion to $240 billion.
The second largest country on the continent, which borders all EAC member states except Kenya, should attract more investors from Tanzania and other members.
Tanzania and the DRC have been trading partners for many decades, but when the newest entrant becomes a fully-fledged EAC member, trade will no longer be the same.
Needless to say, by joining the bloc, the DRC will have better access to Dar es Salaam and Mombasa ports, and this should serve as a wake-up call to Tanzania because competition is likely to be fierce.
Taxes and levies will also be revised soon, but it will also be an opportunity for Tanzanian traders to increase trade volumes with the western neighbour.
Even so, security concerns are still high in the DRC, especially in the restive eastern part, which may discourage trade and investments.
This calls for functional strategies by the entire bloc to guarantee long-term peace, which, in turn, will boost cross-border trade. There is a huge economic opportunity for Tanzania, but only if our leaders play their cards right.