Tanzania

January 2005

  
Tanzania ponders COMESA membership, (Ippmedia, 2005-01-21):-Tanzania is contemplating a comeback to the Common Market for Eastern and Southern Africa (COMESA) amid accusations it made a blunder in pulling out of the regional economic grouping. Industry and Trade Minister Dr Juma Ngasongwa said in Dar es Salaam yesterday consultations at the government level had begun and would take three to four months before a final decision was made. “We’re in consultation within the government. We’re discussing on whether to return to COMESA or not,” he said. Tanzania quit COMESA in 2001 on grounds that it was a member of too many regional organisations. However, there had been an outcry from the business community that the pull-out was unwise. Debates on whether or not Tanzania’s withdrawal had helped her economy have been on since 2001, with the business community standing on the opposing side. Besides, they have conducted studies to determine the impact. According to the studies, conducted by the Confederation of Tanzania Industries (CTI) and the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA), the withdrawal had harmed the business sector. Among the victims of the COMESA withdrawal are metal products manufacturer Aluminium Africa (Alaf Ltd) and Kioo Ltd, a glass manufacturer. The latter was exporting bottles to Uganda Breweries when the country withdrew from Comesa, according to media reports. But the government had all along maintained its position that the decision was carefully thought and was beneficial to the economy. In an interview with London’s Financial Times newspaper shortly after the pull-out, President Benjamin Mkapa said that COMESA had been abandoned because it was unnecessary. “We have a propensity for starting and joining all kinds of organisations,” he had said. “The result was that we were spending more time in conferences than implementing the decisions.” Tanzania is a member of Southern Africa Development Community (SADC) which includes South Africa, the most powerful economic muscle in the southern Africa. It is also a member of the revived East African Community with Kenya and Uganda. Under the EAC framework the three countries adopted Customs Union protocol this month to allow free movement of goods on border areas.  
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