Monday, July 9, 2012

NTBs a cause of inflation in the country, says a report

NON Tariff Barriers (NTBs) along upcountry roads has been described to be the major hindrance to trade, an aspect that contributes to some extent higher inflation rates on consumable goods in the country, the report has said.  According to the published report titled ‘Business Climate Index Survey’ (BCI) by the East African Business Council (EABC), Tanzania has numerous NTBs which are stationed all along the main roads than any other country within East Africa region. The report highlights together with other things, various impediments including bureaucracy. The report which was unveiled by the Deputy Permanent Secretary in the Ministry of East African Cooperation Uledi .A. Mussa last week in Dar es Salaam is quoted as saying that, “the presence of NTBs has contributed to a certain extent the high inflation rates in the country” The report further indicates that, transporters are inconvenienced by the presence of roadblocks for police checks and weighbridges following numerous tariffs which are imposed to transporters at various check points all along the way to their final destination. “This is an aspect which disturbs transport industry and the stakeholders in general”, the report concludes. The report notes that, main roads have many barriers which have been inconveniencing transporters and their goods to reach to their final destination points on time. This is an aspect which causes delays and hence rips high inflation rates on various consumable goods as businessmen tend to increase their products to compensate for the losses incurred. Speaking in an exclusive interview in Dar es Salaam last week, the PS has commended the government’s move for presenting a relative good budget for 2012/13 fiscal year giving the priority on railway infrastructure which according to him will put the country into an economic recovery path.


How risk is it for this man who is seated precariously on top of an electric pole and seem to be communicating with a mobile phone?

He said the strengthening of the Central Railway line is crucial as it provides easy transportation of industrial goods especially bulk cargo and other consumable products in the country, and in view of this he has urged business people to use it so as to avoid roadblocks along the main roads. “The railway system is a very good idea as it would help a lot, and if you talk of roads for transport, TANROADS would continue to be boastful for they are the dominator and are after money to preserve their roads” he remarked. In addition to that, the deputy permanent secretary has called on the transporters in the country to use other means of reliable transport such as railways in order to ferry their appropriate goods in order to avoid inconveniences and the numerous tariffs imposed on the roads. However, he has praised the government for its move to revive the operations of the central railway line which he said if put to work effectively the network will help reduce transportation woes currently facing the transport sector in the country. He said adding that, the deterioration of railway network system has caused difficulties to conduct business activities along the central corridor. The EABC is the apex body of business associations of the private sector and corporate entities from the five East African countries which was established in 1997 with a view to foster the interest of the private sector in the integration process of the East African community. The council enjoins four manufacturers’ associations, fiver chambers of commerce, three employer’s associations, two women associations, two banker’s associations and confederation of informal sector associations of East Africa. Given that the secretariat is based in Arusha, EABC’s structure includes National Focal Points (NFPs) who are all currently the national private sector apex bodies

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