Tanzania

COUNTRY BRIEF

Tanzania

Country Context

Tanzania’s economy grew at an annual average GDP growth rate of 7 per cent from 2002 to 2014. The economy is largely driven by communications, transport,financial intermediation, construction, agriculture and manufacturing. The recent discovery of natural gas is also likely to have a major impact on Tanzania’s economy over the next 10 -15 years. The Government of Tanzania (GoT) has set out its economic reform agenda in the Big Results Now (BRN) strategy, which sets out a time-bound roadmap of key issues to address in each sector, with performance indicators. The port of Dar es Salaam is arguably Tanzania’s most important infrastructure asset. Future growth of the economy depends on the port’s ability to improve, to become more effcient and to be able to handle more trade. Despite the remarkable progress and economic opportunities, the country is still economically dependent on agriculture, which employs most people and especially women. Continued progress is thus rely on deliberate efforts to tap into natural resources, increase tourism revenue and exploit potential for exporting value-added agricultural products.

Strategy 2 Total Programme Budget Summary

  • Outcome 1 -reducing barriers to trade

    69%

    OUTCOME 1

    Reducing Barriers to Trade

  • OUTCOME 2 - Enhancing Private Sector Markets for Trade

    19%

    OUTCOME 2

    Enhancing Private Sector Markets for Trade

  • INDIRECT COST

    12%

    INDIRECT COST

Total Budget US $123 Million

TMEA in Tanzania

The TMEA Tanzania programme is aligned to support the government’s “Big Results Now” strategy while fulfilling its mission to generate prosperity through trade. The programme consists of a portfolio of 22 projects worth $ 93M in Stategy 1, from 2010 to end 2017.

Table: Highlights of key projects and impact in Tanzania – 2011 to 2017

THEMATIC AREA DETAILS EXPECTED RESULTS BY 2017 RESULTS TO DATE
Increased Physical Access to Markets Modernise Dar es

Salaam Port

Reduce time to import goods through Dar Port •  Contributed to reduction in the average dwell time at Dar es Salaam port for imports from 11.3 days in 2013 to 7 days in 2015. Translates to US$ 641M savings per annum

•  Ship turnaround time reduced from 4 days in 2012 to 2 days in 2015.

•  Container dwell time has declined from over 10 days in 2014 to 7 days in 2015.

Set up One Stop Border

Posts (OSBPs)

Reduce time to cross borders by 30% in 4 OSBPs in Holili, Mutukula, Kabanga and Tunduma •  Holili OSBP completed and launched in Feb 2016. Achieved 24% reduction in border transit time

•  Mutukula, Kabanga OSBPs expected to be completed and handed over by June 2016

•  Tunduma OSBP expected to be completed and handed over in 2017

Enhanced Trade

Environment

Improved efficiency of trade along the Central Corridor 15% Reduction in average time to import/export a container from Dar to Burundi or Rwanda Simplification of customs clearance procedures, transit and border infrastructure formalities, and removal of NTBs and other trade barriers. This resulted in an overall reduction in turn-round time for trucks on the Central Corridor from 18 to 13 days (excluding dwell time at the Port).
Improved Business

Competitiveness

Give the private sector and civil society a voice No. of issues raised and successfully advocated on by private sector and civil society membership organisations •  Rice policy scoping study developed in 2015 by Tanzania Private Sector Foundation (TPSF)

•  Tanzania Charter on East Africa Civil Society Organisation Forum (EACSOF) developed in 2014 by Foundation for Civil Society (FCS)

•  3 policy briefs and 2 position papers developed by Tanzania Association of Non-Governmental Organisations (TANGO)

Eliminate NTBs No. of NTBs eliminated •  181 NTBs reported in the SMS system and electronic certificates of origin developed and rolled out to traders & truckers

•  1,000 women traders trained on trading rules and regulations across borders.

Continuity and Innovation in TMEA Strategy 2:

The programme will continue to support the increase in trade and thus contribute to sustainable and inclusive prosperity in Tanzania. There will be continued investment to increase the efficiency and productivity of the Dar es Salaam Port, Central Corridor and border posts and developing agriculture related economic growth along the Dar/ SAGCOT* corridor to Zambia. Also the programme will improve standards, leveraging ICT for trade, support advocacy for trade policy, and removing NTBs.

TMEA will focus on inclusiveness by ensuring that women, the poor and small businesses are increasingly involved in the local, regional and international trade. Cross-border trade interventions will focus on increasing access to information and simplifying trade information and procedures that enable small cross-border business to get started.

Intermediate Impact

  • economic growth
    Economic growth

    $ 1.2B net added to total trade

    (2.4% increase above trend)

  • Exports from EAC to the rest of the world
    Exports from EAC to the rest of the world

    $ 0.4B net added to exports

    (4.3% increase above trend)

  • Intra EAC exports (US$ billion)
    Intra EAC exports (US$ billion)

    $ 0.4B net added to exports

    (4.3% increase above trend)

Investors

partners

Table: Highlights of TMEA Tanzania Programmes 2017-2023

THEMATIC AREA PROGRAMME COMPONENT DETAILS EXPECTED RESULTS BY 2023
OUTCOME 1: REDUCING BARRIERS TO TRADE Improved efficiency and capacity of transport and logistics networks Dar Port Programme Increased handling capacity of the Port; Increased efficiency at the Port; Improved access to Port via local roads; Improved capacity for programmes management
Kigoma Port/ Lake Tanganyika Border Crossings Increased handling capacity of the Port; Increased operational efficiency in lake and navigation safety services; Reduced environmental degradation
Improvement of border crossings and one One Stop Inspection Stations (OSIS) on Dar corridor Border agencies improve the efficiency of cross border processing; Reduced transit time along central and Dar corridor
Improved standards and NTBs Quality Standards Tanzania Bureau of Standards (TBS) improves the efficiency and effectiveness in regulating and enforcing standards; Improved trading standards for agricultural goods
Hazard Analysis Critical Control Point (HACCP) and Sanitary and Phytol-Sanitary (SPS) Increase in the total number of products standards technically harmonised.
Elimination of NTBs Increased efficiency in implementation of national and regional NTBS mechanism
Improved and more transparent trade processes and systems Tanzania Single Window Increased efficiency in processing and administration of trade documents for targeted trade regulatory agencies; Improved compliance to trade regulations by the trade fraternity; Improved transparency and predictability in the clearance and handling of goods
Single Window Information for Trade (SWIFT) / ICT for trade Improved efficiency in the application and issuance of trade permits and licenses by targeted government trade agencies; Improved compliance to trade regulations at specified sector level by the trade fraternity
Dar and Central Corridor Transport Observatory Project Increased efficiency and effectiveness of corridor performance monitoring
Trade Business Intelligence Solutions Enhanced access to quality trade data
Regional Electronic Cargo Tracking Systems Cargo Tracking Systems enhanced and interconnected to support SCT
Improved regulatory environment for trade Trade Policy and WTO Bali TF Agreement Compliance to WTO TF measures by Tanzania is enhanced; Enhanced trade policy environment
Implementing the Common Market Protocol/regional integration agenda Improved capacity to coordinate the implementation of EAC Commitments
OUTCOME 2: ENHANCING PRIVATE SECTOR MARKETS FOR TRADE Better private sector-led advocacy for trade Public-Private Dialogue (PPD) dialogue frameworks Enhanced evidence- based PSO/CSO advocacy
Increased efficiency in private sector logistic service Development of Transport Logistics in CB areas- Cross-Border Market at Tunduma/ Kigoma Increased Local trade in the Tunduma/Kigoma regions
Logistics Hub in the SAGCOT Corridor Increased market access along the SAGCOT corridor
Increased export capacity of East African businesses Export Growth for Export-ready Businesses Export revenue at firm level on TMEA-supported interventions; Level of value addition at the SME level; Access to new markets of TMEA-supported SMEs
Greater inclusion of women and small businesses in trade Capacity Building for Women Traders and producers Increased number of women exporters and cross border traders trading formally through the selected borders

Results in Tanzania

Increased physical access to markets

  • 5-i
    24%

    Percentage reduction in border clearance time at Holili OSBP

    Percentage reduction in border clearance time achieved in 2015 at the Holili one stop border post (OSBP) in Tanzania.
  • 5-i
    67%

    Percentage reduction in border clearance time at Mutukula OSBP

    Percentage reduction in border clearance time achieved at Mutukula OSBP in 2016.
  • 5-i
    58%

    Percentage completion of works at Kabanga OSBP

    Percentage completion of works at Kabanga one stop border post (OSBP) in Tanzania. Expected to reduce time and cost in crossing borders.

Enhanced trade environment

  • 5-i

    Electronic Certificate of Origin operational

    650 certificates of origin issued electronically by TCCIA.

Improved business competitiveness

  • 5-i
    1,649 cross border women traders and entrepreneurs trained on the EAC Trading rules and regulations/procedures as well as on standards

News from Tanzania