Browsing: Kenya Tanzania Trade Relations

• Non-tariff trade barriers are restrictions trade blocs impose to further their political and economic goals.
• Kenya and Tanzania are working on resolving non-tariff trade barriers that have stifled business between East Africa’s largest economies.
• Kenya is a crucial partner for Tanzania and is the largest source of African Foreign Direct Investment in Tanzania.

The East African Community

Countries have adopted regional trading blocs as a strategy to increase global competitiveness. The East African Community (EAC) member states are dedicated to enhancing economic efficiency and fostering regional integration through strategic investments using established industries.

EAC aims to position the Community as a single investment area, harmonising trade policies, investment incentives, and product standards.

At the beginning of its operations, EAC ended non-trade barriers (NTB) between member countries intending to liberalise trade. However, this affected the NTB imposed by the members, especially Kenya and Tanzania, who are critical traders in the market.…

• Trade tensions within the EAC bloc have intensified lately, with neighboring countries taking adverse actions against each other.
• In the latest development, Tanzania is blocking passenger flights from Kenya Airways to Dar es Salaam, while Burundi has officially closed its borders with Rwanda.
• Elsewhere, Kenya has been pursuing trade deals with the European Union and the United States, leaving regional economies to play catch-up

Heightened trade and political tensions between the East African member states are threatening to erode the gains of a free market and the dividends of a united bloc for a region expected to achieve the fastest growth across Africa this year.

As East Africa increasingly evolves into a focal point for economic growth and development, underlying trade tensions are testing the region’s unity to the fullest. As nations strive to harness the benefits of globalization, differing economic policies and priorities can often strains trade relations defeating …

Across East Africa’s vibrant economic landscape, Kenya and Tanzania hold a prominent position as both trading partners but also nations engaging in a fierce economic rivalry. Collectively, the two countries collaborate in business, yet never-ending feuds often erupt into disruptions that hurt cross-border trade. Overall, their trade wars slow regional integration while limiting the nations’ ability to exploit the full potential of the East Africa Community (EAC) market.…

Tanzania just stepped into a whole new ground in fighting the novel coronavirus (COVID-19) as president John Magufuli assured Tanzanians on stringent actions in safeguarding the economy, which is restricted by the virus. The head of state was addressing worshipers during a Sunday service in his hometown.

“We have had several viral diseases, including AIDS and Measles. Our economy must come first. It must not sleep. If we allow our economy to sleep, we will not receive salaries, church offerings will cease if we announce a lockdown, Life must go on,” he said

According to President Magufuli, COVID-19 cases have shrunk to low levels, compelling him to reopen universities and the football leagues. In March, the East African nation saw the closure of hotels, schools, universities, and other social gatherings–in response to curb the virus.

Since the first COVID-19 case broke, Tanzania’s air travel, MICE (meetings, incentives, conferencing and exhibitions) …