Tanzania told to open up trade bottlenecks

Monday, 27 May 2013 07:02 Kenan Kalagho, kampala, UGANDA

DAR ES SALAAM, TANZANIA - Tanzania has been told to open up for more trade and reduce the obstacles to domestic investment which are among the things holding back faster economic growth.
World Bank Country Director, Philippe Dongier said last week, if the country could look at the potential to increase trade with other regions around the globe, this could lead to more economic growth.
“We need to open more gates to the port from other countries to make sure that goods flourish both inside and outside the country,” Dongier said. He said this would benefit both small and larger businesses alike.
He was speaking in Dar es Salaam during the launch of the Third Tanzania Economic update.

Philippe Dongier, World Bank’s Country Director for Tanzania

According to the update authored by Jacques Morisset, the Lead Economist with the World Bank, Tanzania lost $2.6 billion in 2012 due to failure to revamp Dar es Salaam port.
The report shows that Dar port stands to lose business to other countries when these ports and railways become operational.
However, with its strategic location, Dar port remains a gateway for 90% of Tanzania’s trade clearing $15 billion of merchandise annually while at the same time providing vital access to other land locked countries. 
Emmanuel Mallya, the Chairman and CEO of the E.B Maritime Group said revamping of  Dar port needs to go hand in hand with construction of both a road and railway network.
“Revamping Dar port without improving the railway and road network in the country won’t do any good to the country’s economy. Goods need to move from the port to their destination,” Mallya said.
Mallya said Dar port handles cargo for a number of landlocked countries including Malawi, Zambia, and Burundi, Rwanda, Uganda and Eastern Democratic Republic Congo and improving the port alone without considering the mode of transporting these goods to its destination will be meaningless.
Dr Eva Sinare, who until recently was a member of the joint Finance Commission, a constitution body created to address Tanzania Union finance issues, and also a former board member of Capital Market and Securities authority said small and medium enterprises the most affected by the lack of infrastructure.
Dr. Sinare said it is important for the port to be connected to the points of production that would encourage small and medium enterprises to invest more in their businesses because they will be assured of transport.
She said it is important to encourage small and big investments in the country by making sure that policymakers go back to those who provide such services to consult them on their needs.