Impact of informal cross border trade to the economy : the case study of Tanzania

Abstract

The major aim of this study is to find out strategic policy recommendations for Governments, Regional Economic Communities, and Development Partners I.e. Trademark East Africa (TMEA) on how best to address the issue of Informal Cross Border Trade (ICBT) in Tanzania borderland with its neighboring countries in East Africa Community (EAC). To achieve this objective the study has been done through making analysis to identify the factors contributing to the existence & rise of ICBT between Tanzania and its neighboring countries as well by assessing the impact of ICBT towards Tanzania’s economy. Apparently on a timeline since launch of EAC common market protocol in 2010 which allow free movement of people, free movement of goods to accelerate economic growth and development within the regional. The study conducted using In-depth and Semi – structured interview methods, examining available secondary data as well. Four selected regions were selected where the issue of ICBT is crucial. From the findings, finally, this research suggests policy measures that have potential to encourage traders switch from ICBT to formal trade. Measures which will reduces trade barriers i.e. Non –Tariffs Barriers (NTBs), hence increase growth of formal trade sector and widen more trade opportunities in regional and global markets