European Union Trade Capacity Building Programme
TradeCom II – ACP
Strengthening Capacity of Exporters to Sustainably Enhance Export Competitiveness and Diversification
Wednesday, 15 January 2020, Dodoma, Tanzania: REPOA in partnership with the European Union are pleased to launch the project on Strengthening Capacity of Exporters to Sustainably Enhance Export Competitiveness and Diversification.
This project is funded by the European Union and aims at strengthening the capacity of policy makers, exporters, and trade associations to assess and review trade and related economic policies to promote trade competitiveness and diversification for widening trading opportunities within Tanzania, the East African Community (EAC) including with the European Union.
The initiative will enhance the formulation and implementation of sustainable trade policies, including strategic measures to harness the opportunities arising from effective implementation of regional and international trade agreements.
Tanzania is making good progress to develop its infrastructure such as roads, harbours, and energy. However, real constraints on trade expansion and diversification remain at institutional level and within the regulatory framework. Challenges include the need for continuous understanding and knowledge of these constraints and their economic impact. This is important in order to design appropriate measures to effectively address these constraints and improve coordination and dialogue with key stakeholders.
Low level of trade competitiveness is also due to a cumbersome taxation system, as well as an escalating tariff structure that creates a large dispersion in protection levels, and high tariffs. While the nominal tariff rate may be relatively modest in most cases, the effective rate may be much higher. For example, the rate of export duty on raw hides and skins is 80 percent or US$0.25 per kilogram which is larger than other EAC countries.
Under the grant agreement, REPOA will implement three components:
The project will also extend support to Value Chain Development activities (through Technical Assistance -TA) in five sub-sectors: Horticulture, Rice, Leather, Seaweed (for Zanzibar) and Logistics.