Thursday, March 14, 2024

Liberty Spark conducts study to foster cross-boarder trade formalization

 Daily News reporter

DAR ES SALAAM: Dar es Salaam: A local think tank, Liberty Spark, is conducting a

study to promote and formalize cross-border trade for small-scale traders. The “Ujirani Mwema Project” aims to foster reforms to enhance the smooth exchange of goods and encourage traders to formalize their businesses.

Evans Exaud, Executive Director of Liberty Spark, said the study will recommend changes to address tax and non-tax trade barriers, ultimately promoting import and export.

“Cross-border trade impacts everyone,” he emphasized. He added that issues like tax and non-tax trade barriers will be given a distinct look, advising the government on what needs to be done to promote import and export. “Cross-border trade affects us all, and hence, where trade costs are higher, it affects us all.”

For his part, Liberty Spark’s research leader, Prof. Samuel Wangwe, said the survey will aim to generate data which will be analyzed to establish existing gaps and how they can be filled to smooth cross-border trade growth. He mentioned that the recommendations will, among other things, advise on how small-scale traders can best formalize their daily activities and contribute to national income rather than simply being regarded as smugglers who use informal routes to earn their fortunes.

“We will also study and come up with recommendations on how we can adopt business legal frameworks and regulatory reforms which will support cross-border trade formalization,” he highlighted. He added that apart from agriculture, mining, and manufacturing, transportation was a cross-cutting sector as it plays a linking role from country to country.

Tanzania shares its border with eight different countries while also being a member of various regional trade blocs like the East African Community (EAC) and the Southern African Development Community (SADC).

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