Tanzania has performed impressively in making reforms to suit restriction-free capital transaction under the freedom of movement of capital as agreed in the East African Community (EAC) Common Market Protocol.
The 2016 EAC’s scorecard on common market indicates that the country has made six out of 11 legal and regulatory reforms the partner states have undergone between 2014 and 2016 in the free capital transaction.
The report, which was disseminated to stakeholders in Dar es Salaam yesterday looked at issues of security, credit, direct investment and personal capital as critical areas under the free capital transaction.Presenting the report, the World Bank Consultant, Ms Agatha Nderitu, said Uganda made three reforms and Kenya had the remaining two reforms.
She, however, explained that the 2016 scorecard focused on 20 operations that the partner states had agreed to open for the implementation of the free movement of capital in the region.
Some of the operations, apart from free capital transaction, are free movement of services in professional services including engineering, accounting and legal. Others are transport (roads and air) and movement of goods with a focus on Non-Tariff Barriers.
“Generally, none of the EAC partner state is fully compliant to the areas we have looked at regarding the Common Market Protocol,” she said, noting that out of 20 operations, only three of them have restrictions removed.
The three areas which all member states have commonly removed the restrictions are external borrowing by residents, repatriation of proceeds from the sale of assets and foreign sale of shares or other securities by residents.
Senior Monitoring and Evaluation Officer in the EAC’s secretariat, Mr Julius Birungi, said the integration was all about people and commended the participation of stakeholders across different sectors in the meeting.
He noted that the scorecard would help the partner states to look at where they have not done well and how to improve. Vice-President of the Textile and Garment Manufacturers of Tanzania, Mr Sylvester Kazi, said the private sector seriously headed the decision by the EAC’s Heads of State to ban the second hand clothes and they are up to improve the textile products.
He, however, urged the member states to get rid of the bureaucracy, which impedes business growth in the region, citing the difficulties in business registrations.