Pan-African Parliament engages Tanzanian Chamber of Commerce on Guided Trade Initiative Progress, Proposes African Summit to Maximise AfCFTA Benefits

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Members of the Pan-African Parliament Parliament Committee on Trade, Customs and Immigration Matters met with representatives from the Tanzanian Chamber of Commerce, Industry and Agriculture in Dodoma, United Republic of Tanzania to gain insights into how Tanzanian businesses are navigating the new trade environment under the African Continental Free Trade Area (AfCFTA) Guided Trade Initiative (GTI).

The engagement covered the successes, challenges, and opportunities created by the GTI. Following the session, the Pan-African Parliament delegation proposed the convening of a summit of African Chambers of Commerce at the seat of the Continental Parliament in Midrand, South Africa, to align strategies, address common challenges, and maximise the advantages offered by the AfCFTA, Pan-African Parliamentarians emphasised the need for a coordinated continental approach to seize these opportunities with the Pan-African Parliament ready to play its role.

The Committee on Trade, Customs, and Immigration Matters is in Tanzania as part of a fact-finding mission to assess the country's progress in implementing the GTI. As one of the eight participating nations in the GTI, Tanzania plays a crucial role in operationalising the AfCFTA, which seeks to boost intra-African trade and drive industrial growth across key sectors.

 Tanzania’s dual membership in both the Southern African Development Community (SADC) and the East African Community (EAC) makes it a compelling case study. The Chamber of Commerce noted that operating under the GTI has necessitated progressive adjustments . Certain sectors, particularly those vulnerable to external competition, continue to be protected to ensure local industries remain competitive while the country gradually integrates into the broader African market.

The Chamber of Commerce expressed readiness to trade under the GTI and the AfCFTA more broadly, noting that the experience has generally been positive. However, logistical challenges and the delayed ratification of the Protocol on the Free Movement of Persons have affected the full realization of trade potential. The Pan-African Parliament was called upon to help engage at government level around the continent to ensure that issues impacting business operations are addressed. Both parties underscored the need for quicker government action on the free movement protocol, as it is critical for boosting trade across borders.

Additionally, the Pan-African Parliament team inquired about the benefits businesses in Tanzania are deriving from the Namanga One Stop Border Post (OSBP), a key crossing point between Tanzania and Kenya. The Chamber noted that the OSBP has facilitated smoother cross-border transactions and trade efficiency but acknowledged that there are still improvements to be made, particularly in addressing infrastructural gaps and bureaucratic delays. The visit to the OSBP is also one of key objectives of the mission undertaken by the Pan-African Parliament Committee.

The meeting underscored the importance of equipping businesses with the tools and knowledge to leverage the opportunities presented by the AfCFTA. By deepening their understanding of trade regulations, small and medium enterprises (SMEs) in Tanzania can enhance their competitiveness, expand into regional markets, and increase export capabilities.

As the free trade area continues to evolve, the AfCFTA has prioritized sectors such as agriculture and agri-processing, pharmaceuticals, automotive, transport and logistics, and textiles and apparel to drive industrial growth and create jobs across the continent. With Tanzania at the forefront of this initiative, the country is well-positioned to lead the way in regional economic integration and enhance Africa’s global competitiveness.

The GTI, launched on 7 October 2022, aims to jumpstart trade under the AfCFTA by linking eight countries, including Tanzania, that have fully approved and published their tariffs under the common market's rules. Products such as ceramic tiles, tea, coffee, processed meat, corn starch, sugar, and dried fruits are already being traded under this initiative, with further expansion expected.

The AfCFTA is Africa’s most ambitious effort yet to create a unified economic space, with the potential to significantly boost intra-African trade and create new opportunities for growth across the continent. By convening a summit of African Chambers of Commerce, the Pan-African Parliament aims to ensure that businesses across the continent are aligned and ready to capitalize on these opportunities.

The Pan-African Parliament delegation, led by Hon. Sen. Prof. Margaret Kamar, includes Hon. Hannaa Benkhair (Morocco), Hon. Mathurin Massckini (Central African Republic), Hon. Wavel Joseph Woodcock (Seychelles), and Hon. Anatropia Lwehikila Theonest (Tanzania).