EABC-GIZ CONSULTATIVE MEETING IN TANZANIA OUTLINES REFORMS TO UNLOCK SERVICES TRADE IN THE EAC
Dar es Salaam, Tanzania – 28th February 2025: The East African Business Council (EABC), in collaboration with the East African Community (EAC) Secretariat and GIZ, convened a high-level consultative meeting for Tanzania’s service sector on the development of the Regional Services Policy Advocacy Agenda.
In his opening remarks, Dr. Samwel Nyantahe, Goodwill Ambassador of the EABC, emphasized the importance of structured dialogue and cohesive advocacy in advancing the services sector within the EAC region. “Over the past three decades, the services sector has been instrumental in driving global economic transformation, and the EAC region is no exception.”
The services sector contributes between 40% and 55% of the EAC region’s GDP. However, despite the commitments made under the EAC Common Market Protocol (CMP) and the African Continental Free Trade Area (AfCFTA), businesses continue to face regulatory inconsistencies, restrictions on free movement, and investment limitations that hinder full trade liberalization. Dr. Nyantahe stressed the importance of bringing together stakeholders from various service sectors to identify challenges, explore opportunities, and develop actionable solutions that will drive services trade integration in the region.
Mr. Lamech Wesonga, Economic Policy Advisor on AfCFTA for EAC-GIZ, highlighted the need for an institutionalized dialogue mechanism for services trade at the regional level. He reiterated GIZ’s commitment to partnering with the EAC Secretariat, governments of EAC Partner States, and EABC to advance this agenda.
Representing the EAC Secretariat, Ms. Annette Kenganzi, Senior Export Promotion Officer, noted that at the regional level, EAC Partner States had committed to eliminating restrictions in seven key subsectors under the Common Market Protocol—Business, Communication, Transport, Distribution, Education, Tourism & Travel, and Financial Services—by 31st December 2015. However, more than a decade later, these restrictions remain, even as the region prepares to commit to an additional five subsectors under the protocol.
“The ongoing institutionalized mechanism is timely, as service sector actors can provide critical input into discussions on removing existing restrictions and upcoming negotiations for commitments in the remaining five subsectors—Health & Social Services, Recreational, Cultural & Sporting Services, Energy Services, and Construction & Related Services,” she added.
According to the EABC Barometer on Trade in Services, Tanzania has made 46 commitments under the CMP’s Schedule of Commitments on Progressive Liberalization of Services. However, challenges persist, including fragmented regulatory frameworks, a lack of mutual recognition agreements (MRAs) for professionals, and limited cross-border market access.
Discussions at the meeting focused on key barriers affecting services trade in the EAC, including:
- Regulatory & Policy Inconsistencies: Varying licensing and accreditation requirements, slow implementation of EAC Common Market Protocol commitments, and a lack of harmonized sectoral policies.
- Restrictions on Free Movement of Services & Professionals: Delayed implementation of MRAs, work permit challenges, and differing qualification standards across EAC Partner States.
- Limited Market Access & Investment Restrictions: Foreign equity caps, taxation disparities, and restricted participation in public procurement markets.
- Weak Data & Evidence Base: Inadequate trade statistics, inconsistent data collection, and a lack of sector-specific insights for informed policy-making.
- Sector-Specific Barriers: Challenges in ICT & digital trade, financial services, transport & logistics, tourism, and healthcare, among others.
- Weak Institutional Mechanisms for Advocacy: Limited structured dialogue between the public and private sectors, fragmented engagement, and insufficient resource mobilization for advocacy efforts.
The dialogue convened key service sector stakeholders, including representatives from business services (professional services), communication & ICT services, tourism, transport, distribution, and environmental services.
(EABC 2nd Edition Barometer on Trade in Services). Read the full report here:
