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Hub and Tanzania's private sector apex body hold Common Market implementation event

Published on November 23, 2016

On November 22, the Hub and the Tanzania Private Sector Federation (TPSF) jointly held an event in Dar es Salaam, Tanzania to appraise private and public sector practitioners on the country's progress toward implementation of the East African Community (EAC) Common Market Protocol. The protocol seeks to establish a single market where there is free movement of goods, services, labor and capital across member states, thus expanding economic opportunities in the region.

The update was based on ongoing legal research and analysis carried out by the Hub in each of the EAC Partner States on new and existing legal provisions and their impact on the implementation of the protocol. Based on this research, the Hub partners with private sector associations, such as TPSF, to seek reform of the measures that are inconsistent with the protocol.

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Here are some highlights from the update:

Capital:

  • Participation in IPOs and related arrangements have been relaxed for citizens and residents through opening up of Tanzania's capital account, but can still only be done using externally generated funds.
  • Tanzania has introduced the Public Procurement (Amendment) Act 2016 which restricts participation by EAC firms in public procurement.

Services:

  • Tanzania has zero rated services supplied by foreign suppliers, in line with the spirit of the Double Taxation Agreement between EAC Partner States.
  • Tanzania mandates local content requirements for public procurement.

Goods:

  • Tanzania has removed a barrier to Kenyan imports - the mandatory railway development levy of 1.5%.
  • Tanzania's Food and Drug Authority (TFDA) remains a key source of complaints for EAC Partner States, as it routinely requires importers to register, re-label and retest already certified goods.
  • Tanzania also has a set of complaints, including the fact that its rice is currently being charged an illegal 45% external tariff fee by Rwanda.

Find the full presentation here and event report here.