Tanzania registers massive improvement in implementing common market protocol

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Tanzania is among EAC countries that have not imposed restrictions on inward direct investment, according to East African Common Market Scorecard 2016: Tracking EAC Compliance in the movement of Capital, Services, and Goods.

While no EAC partner state-imposed restrictions on repatriation of proceeds from asset sales within the region, Burundi is the only country that continues to maintain restrictions on inward direct investment, according to a scorecard released on Wednesday evening in Tanzania’s northern safari capital of Arusha.

The Scorecard which tracks the EAC member states’ progress in fulfilling their commitments to liberalization under the Common Market Protocol, adds that, on personal capital operations, all EAC partner states, except Tanzania, require that all amounts above 10,000 dollars should be declared on exit or entry. However, they do not restrict the operation.

“Tanzania places a 10,000 dollars limit for residents traveling abroad with foreign currency, including to other EAC partner states,” says the scorecard which also examines selected commitments made by partner states, outlining progress in removing legislative and regulatory restrictions to the protocol and recommends reform measures.

According to the scorecard, which is a co-publication of The World Bank, International Finance Corporation, and the East African Community Secretariat, Tanzania also provides that funds due from assurance policies taken outside the country may only be transferred into or from Tanzania if servicing of such policies is done using externally generated funds.

Assessing the freedom of movement of services, the scorecard says while Kenya undertook the most reforms by eliminating three non-conforming measures in professional services but adding one in telecommunications, Tanzania and Rwanda each eliminated one, both in professional services.

The neighboring country of Uganda also had one reform, removing a non-conforming measure in distribution services.

“The amendment of the relevant provisions on trade in services under the Common Market Protocol and the review of the schedules of commitment on services should be finalized as a matter of urgency…this will not only deepen integration of services in the EAC, but it will also greatly boost and attract investment within and into the EAC region,” recommended the scorecard.

Gauging the freedom of movement of goods in the region, the scorecard noted that Burundi, Rwanda, and Kenya scored 90 points. Enditem

Source: Xinhua/NewsGhana.com.gh

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