INFORMAL, OPEN-ENDED INFORMATION
MEETING ON TACB
INCORPORATION OF TRADE FACILITATION
TACB INTO DEVELOPMENT PLANS AND
COORDINATION WITH DONORS
TANZANIA CASE STUDY
1
INTRODUCTION (1)
TF is important because it has potential to reduce
the costs of trade globally and therefore enhance
competitiveness of exports and imports.
The fundamental objective of TF negotiations for
the developing and LDCs is to enhance TA and
support for capacity building, as provided for in the
TF negotiating modalities.
The identification of needs and priorities is very
necessary to proceed in parallel with substantive
negotiations.
Tanzania's Needs and Priorities programme was
2
conducted in 2007.
INTRODUCTION (2)
The NA was preceded by an advance meetings between:
Officials from the WTO, USAID, and the Geneva
Delegate;
Senior officials from key Tanzanian Ministries,
Departments and the private sector that include Ministry
of Industry, Trade and Marketing, Min. of Agriculture;
Customs; Tanzania Bureau of Standards; Tanzania Ports
Authority, Surface and Maritime Transport Regulatory
Authority; National Business Council and Tanzania
Freight and Forwarders Association.
OBJECTIVE
To gain political will and sensitization on the importance
and objective of TF negotiations and needs assessment for
Tanzania.
3
PRESENTATION
About 40 participants from both the private and
public sectors attended the programme.
About 55 proposed measures were considered.
Participants reviewed the results of the NA and
determined the conclusion of the results.
Conclusions were presented to the final reporting
session of the high level officials that were met prior
to the assessment programme.
Discussion and feedback on findings of the
assessment was finally made.
4
OVERALL RESULTS AND OUTCOMES
Measures complied with - 16 (29%)
Partially compliant 25 (45%)
Not complied with
12 (22%)
Measures not applicable to TZ - 2 (4%)
NOTE
 55 Measures were examined out of more that 100
5
Some of the Priorities Identified in TZ: (1)
Improving coordination, information sharing and awareness
among stakeholders;
Automating the processes;
Improving infrastructure for information and
communication including power supply;
Improving and modernizing transport infrastructure in
railways, roads and ports;
Capacity building:- risk management systems, destination
inspection; accreditation procedures; and equipment (e.g.
scanners, and IT hardware);
Developing risk management infrastructure (electronic
sealing/tags and electronic cargo tracking system);
6
Putting in place policy and legal framework;
Development Plans
 National Development Vision 2025
 Goals are targeted through PRSP programmes
 The 1st was a three year rolling plan that focused
mainly on the service sectors including: health,
education, water and transport sectors;
 The 2nd cycle of the PRSP ie. The National Strategy
Growth and Poverty Reduction (NSGPR) populaly
known as MKUKUTA (5 yrs) which captures issues o
growth which were not in PRS 1

Emphasis on Public/Private partnership in addressing national
needs;
 The DTIS approach is to incorporate trade
development issues into MKUKUTA and mobilize
bridging finance form donors
7
TANZANIA DTIS (1)
 DTIS was undertaken in 2004, validated in 2005 and
approved by the Government in 2007;
 2006 Tanzania organised a DTIS Prioritization Workshop
that recommended actions in certain priority sectors;
 DTIS is a comprehensive document that consists of two
volumes:



The 1st volume analysing economy-wide constraints.
The 2nd one analysing the sub-sector specific constraints
It includes 127 recommended actions, basically everything that
falls under the three basic WTO/OECD categories:



Trade policy and regulations
Trade development and
Infrastructure (transportation in the case of Tanzania)
8
TANZANIA DTIS (2)
A situation analysis of the critical factors that influence
Tanzania’s integration into the global economy and requisite
measures for better performance is presented in 1st volume
of the DTIS Report.
Factors identified under this volume are essentially internal
factors related to macro-economic variables that include
policy measures in the following areas:
 Macro economic environment and competitiveness;
 Trade policy instruments;
 Institutions for trade policy and export development; and
 Customs, Trade Facilitation and Transportation;
 In addition, the macro economic variables include three external
factors which remain largely outside the national domain although
governments can influence them through trade negotiations. These
factors are:
 Market access;
 Trade preferences; and
 Quality standards.
9
Customs, TF and Transportation
The DTIS observed that there is:
 Excessive delay in processing imports, exports and transit cargo;
 The delay is caused by excessive documentation, duplicative and repeated
checking.
 Areas that need improvement include customs and import regulations, transit
and tax payer customs relations.
Furthermore, it is noted that inadequate transport
infrastructure is a constraint to Tanzania’s export
competitiveness and commercialisation of agriculture.
The study identifies four areas for intervention, namely: Upgrading transport infrastructure particularly railways and feeder roads;
 Human resource development in logistics, clearing and forwarding;
 Strengthening public-private sector partnership in transportation, trade
facilitation, transit and border crossings;
 Formulating and implementing a transport sector reform programme including
review of the legal and regulatory framework and procedures that impede trade.

10
Private Sector Involvement
 DTIS development has included the private sectors
participation
Private Sector Development Strategy(PSDS)
formulated to provide a comprehensive and holistic
framework for transformation: Strategy includes:
Review and consideration of measures relating to the
investment climate including the macro-economic
framework and legal and regulatory reforms;
 The IF process contributed to the initiation of the Business
Environment Strengthening in Tanzania(BEST) Programme in
2003
Development of adequate hard and soft infrastructure
including finance and ICT capabilities and capacities.

11
ACTION MATRIX AND DEVELOPMENT OF
BUDGETED WORK PLANS
 The essence of DTIS approach is the translation of the
recommendations given in each section of the report
into an Action Matrix that will become the basis of
budgeted action plans for implementation.
 The activities in the Action Plan Matrix constitute
potential work-plans and projects to address the
mitigating constraints identified in the diagnosis
including those related to TF.
 Some of these activities can be implemented through
policy realignment and rationalization. However,
most of the recommendations require considerable
outlay of financial and technical resources that will
have to be raised from either the Government’s
budget and/or development partner support.
12
 In principle, policy measures require minimal financial
resources as their implementation largely depends on
commitment to good economic governance. However,
intervention instruments such as institutional capacity
building, infrastructure development, research and
extension services; training and skills acquisition
require substantial technical and financial resources.
 Agreement on priorities and sequencing of
implementation in TZ is already done.
 NIU established under EIF to proceed to coordinate
the process of designing programmes and projects to
facilitate actual implementation.
13
DTIS Implementation through Tanzania
Trade Integration Strategy, 2009-2013
Framework Programme (TTIS)
 An implementation strategy based on the DTIS was
developed and in March 2008 it was endorsed by the
GoT, DPs and the Private Sector.
 A mapping of all ongoing and planned trade-related
projects and programmes and a so called gap
analysis (basically an update of the DTIS).
14
Purpose of TTIS

To provide a single framework for strengthening ownership of trade
development by Tanzania, including basic principles for making
export trade a main driver of growth and for improving
effectiveness and coordination of trade-related support.
 The rationale for this attempt should be understood in the context
of the objectives of IF and the fact that Tanzania receives a
multitude of trade-related support, be it bilaterally, multilaterally,
through national or regional/global interventions. MITM is
seeking endorsement of this notion of a single framework from
all concerned DPs and the private sector and it is planned to be
effected through signing of a Memorandum of Understanding
(MoU).
 To provide an overview of current development needs within trade
and current and planned interventions. Moreover to outline possible
areas of interventions that are not addressed or insufficiently
addressed, foremost regarding capacity development of important
trade support institutions. This outline is presently further developed
and refined into a Programme Document and envisioned to be
financed through a multi-donor basket arrangement.
15
TTIS Coordination and Governance
 National Steering Committee for TTIS was inaugurated in May 2008;
 Trade Policy Analysts (basically TTIS focal points) have been
appointed in relevant Ministries, Departments and Agencies (MDAs)
and familiarisation workshops held;
 A TTIS Coordination Arrangement has been established in MITM and
appropriate HR and technical resources are in progress to be
established;
 The signing of MoU (between GoT, DPs and the private sector) took
place on 15th May, 2009 at MITM as a recognition and importance of
TTIS as single framework for trade-related activities in Tanzania.
 Sectoral Trade Policy Analysts and representatives of implementing
organisations will, as applicable and with facilitation by the
Coordination office, form sub - Technical Committees.
 Consequently, a committee of SPS has been appointed
 Other Committees such as TF
16
The planned multi-donor basket funded programme
(TTIS Basket Fund)
MITM together with DPs and the private sector and
associations are now developing a separate Programme
Document for the interventions which are planned to be
financed by a multi-donor basket.
The target group of this multi-donor funded capacity
building programme will in large be MITM and other
concerned MDAs.
The TTIS addresses capacity gaps that have been identified,
possibly financed through a multi-donor basket.
It is from this notion that project proposal (concept),
including TF based on the current TF negotiations could
be submitted in the format provided, to MITM.
17
Conclusion
 Needs and priorities identified under the TF should be seen
in the broader context of planning, ie. under the DTIS;
Preparation of national budgets has to incorporate budgets
for TF measures (whether locally or externally funded).
Costs analysis has to be done under the technical commitees
to facilitate budgeting of the same.
Framework for donors to give TF funds should not be
divorced from the national one, eg TTIS in Tz in order to
create ownership;
Donor partners should come forth to support the projects
under TF in order for Members to indicate their TF
Implementation Plans.
18
THANK YOU
Mr. Lucas N. Saronga,
Minister Plenipotentiary,
Tanzania Mission,
Geneva.
Tel: +41 22 909 10 81
Fax: +41 22 732 82 55
Mob: +41 78 91 84 209
E-mail: [email protected]
19