The TTIS Strategy takes a logic approach on the efforts of transforming the Tanzania Trade Sector as an engine for economic growth by strengthening the ownership, coordination and integration of the trade agenda. The Strategy eventually aims at transforming Tanzania into a competitive and export led economy that is responsive to domestic comparative advantage as well as regional trade and international opportunities. The approach also brings together the Government, Development Partners and the Private Sector in the whole process of design and implementation of the trade development interventions.Today, 15th May 2009 the three above parties, i.e. the Government, Development Partners and Representatives of the Private Sector have signed a Memorandum of Understanding manifesting the endorsement of this new Strategy, i.e. Tanzania Trade Integration Strategy, 2009-2013. The TTIS has two main purposes:-1. It serves to provide a single framework for strengthening government ownership of the trade agenda and of current and planned trade related technical assistance interventions in Tanzania.
The notion of a single framework for trade sector development and trade related technical assistance conforms with the Paris Declaration (2005) on Aid Coordination and with the Memorandum of Understanding on JAST between the Government of Tanzania and its Development Partners.
2. It serves to provide a mapping of all current development needs and priorities within Tanzania Trade Sector and as a tool to ensure a coordination response from Development Partners in their current and planned development assistance interventions within the sector.The TTIS is based on a prioritization and updating of the Action Matrix formulated in the Tanzania’s Diagnostic Trade Integration Study (Nov. 2005) and updated in 2007. TTIS outline two main components that include:• Focus on enhancing Tanzania’s capacity to manage trade policy, trade strategy and Aid for Trade processes. In this regard it focuses on strengthening the capacity of the Government of Tanzania to harmonise its sector policies with trade sector development policies and strategies so as to consolidate trade development as a main drive of MKUKUTA and MKUZA. This component also focuses on strengthening the capacity of the private sector to participate more effectively in trade policy and strategy formulation. Finally it focuses on strengthening Tanzania’s capacity to negotiate more effectively in regional and international fora.
• Focus on expanding competitive export supply of goods and services in Tanzania. At the core, is developing the capacity of support institutions assisting producers meet international competitiveness standards including Sanitary and Phytosanitary Standards, Other Technical Standards, Intellectual Property Rights and Protections. This component further seeks to provide direct support to producers and producer associations in priority export sectors again with stress on standards. This component finally focuses on increasing competitiveness by lowering the cost of trade facilitation and increasing export-oriented investment through investment facilitation.“In Tanzania, the trade sector is the second by importance as it contributes 16% of GDP. However, performance has been dismal over the past decade. Our foreign trade is marked with growing negative trade balances, major goods of exports have remained dominated by agricultural commodities with low value addition. There is an urgent need to diversify both product and export markets. It is important to note, however, that future prospects for the growth of competitive exports like horticulture, cut flowers, live animals, gemstones is constrained by Tanzania’s exporters inability to meet stringent international quality standards.This strategy will contribute to transform Tanzania into a competitive and export led economy that is responsive to domestic comparative advantage as well as regional and international trade opportunities” – says the Hon. Dr. Mary Nagu, MP, Minister for Industry, Trade & Marketing. The Hon. Minister also expresses her hope that through this strategy, Tanzania will be able to fully diversify its exports and export markets and to grow the volume and value of its exports faster, given the country’s huge endowment in natural resources and geographical location. She asked for full support of Development Partners.“Sweden, being entrusted as Trade Donor Facilitation, strongly supports the TTIS and is positive to the efforts of the Government to start the implementation of activities. The TTIS is exactly what the global Integrated Framework (IF) initiative that we are co-financing has envisioned. I congratulate Tanzania for its evident efforts to make trade a main driver for economic growth and poverty reduction” - says The Swedish Ambassador to Tanzania H.E. Staffan Herrström.Implementation of TTIS will be supported through various Trade Related Technical Assistance from different development partners. In addition, the Government is preparing a Trade Sector Development Programme to be launched later this year and to be financed through a multi-donor basket Fund.
Communicated today Friday 15th May 2009 by the Ministry of Industry, Trade & Marketing , and the Swedish Embassy in Tanzania.