Kampala
  18/12/07
 
TANZANIA WOULD BE BETTER OFF BY REJOINING COMESA SAYS A REPORT

By Leo Odera Omolo

A special report just released suggested that the common market of Eastern and Southern Africa is a better export market for Tanzanian goods.

This is because Tanzanian exporters have been losing export earnings totaling USD 60 million a year arising directly to comesa.

The study on the importance of Tanzania’s membership of comesa was commissioned by the Tanzania Private Sector Foundation of Tanzania Industries and the Tanzania Chamber of Commerce, Industry and Agriculture.

The report lists reasons why Tanzania needs to be a member of COMESA, the Southern Africa Development Community (SADC) and the East African Community (EAC).

The paper describes the cost of non-membership of COMESA in terms of its impact on the morale of exporters decline in the opportunities from the Comesa institutions and also lists Tanzania’s benefits from Comesa institutions and programmes such as the PTA Bank, the Africa Trade Insurance Company and the COMESA Yellow Card.

The report says that Tanzania membership of comesa will enhance its political stature in East and Southern Africa region and facilitate rationalization and harmonization of COMESA, EAC and SADC.

Regional integration is recognized as an important vehicle for trade, industrial expansion and growth and comesa is one such vehicle for achieving this aim.

Comesa and SADC originated from the defunct organization of African Unity’s (OAU) objective of bringing about Africa’s economic and political liberation.

However, they differ in orientation and operations though in certain cases they complement each other.

The Tanzania business community believes strongly that the data to prove the case for Tanzania’s membership to comesa has been provided. The importance of markets such as Sudan, Egypt, Ethiopia, Djibouti, Libya, Comoros, Eritrea and Somalia has been shown through trade flows in the region.

This proves that the comesa free trade and customs union is much larger than that of SADC and has more political issues and weight in AU in spite of the economic might of South Africa.

On the other hand, SADC is a better source of imports for Tanzania than comesa. It is also a better source of investment in mineral exploitation in Tanzania and other investments.

But Kenya is the biggest investor in Tanzania manufacturing sector, with an investment of USD 800 million. Only USD 18 million worth of Tanzania exports to South Africa are agricultural.

Kenya is also a better market for Tanzania’s agricultural fisheries and manufactured goods that South Africa.

Ends

leooderaomolo@yahoo.com