Great Lakes region targets lower cross-border trade costs

DAR ES SALAAM: BUSINESSES across the Great Lakes Region could benefit from lower transport costs, simpler border procedures and improved market access under a new three-year partnership aimed at removing barriers to cross-border trade.

The Forum of Parliaments of the International Conference on the Great Lakes Region (FP-ICGLR) and the Central Corridor Transit Transport Facilitation Agency (CCTTFA) signed a Memorandum of Understanding (MoU) in Dar es Salaam recently to strengthen regional integration, harmonise legislation and improve transport connectivity.

FP-ICGLR Secretary General Ambassador, Dr Deo Mwapinga, said high transport costs, cumbersome border procedures and differences in national laws continued to constrain regional economic potential.

He said these challenges affected farmers seeking markets, businesses expanding across borders and consumers facing higher prices for essential goods.

“The value of regional integration must therefore be measured by the daily lives of our citizens, in easier trade, more reliable services, greater economic opportunity and stronger connections between communities,” he said.

The partnership seeks to connect parliamentary cooperation with practical transport and trade facilitation measures, helping translate regional commitments into national policies and legislation.

For businesses moving goods across several countries, inconsistent customs requirements, transit procedures and regulations can increase costs, delay deliveries and create uncertainty.

Harmonising these systems could make cross-border trade more predictable and enable companies to reach wider markets. Under the MoU, the institutions will promote parliamentary dialogue on corridor development, transport connectivity and trade facilitation.

They will also support harmonisation of legislation governing transit, customs and crossborder trade.

The agreement further provides for cooperation on infrastructure financing, transparent Public-Private Partnerships (PPPs) and parliamentary oversight of corridor-related projects.

Dr Mwapinga said parliamentary engagement was essential to ensuring infrastructure development was backed by sound legislation, responsible financing and effective oversight.

Central Corridor Transit Transport Facilitation Agency Executive Secretary, Advocate Okandju Flory, said the agreement established a framework for coordinated action on corridor development, regional connectivity and trade facilitation.

He said the collaboration would strengthen political support for corridor priorities, improve legal and policy alignment and equip parliamentarians to scrutinise infrastructure projects and recommend evidence-based reforms.

The institutions will also conduct joint research, training, workshops, seminars, study visits and policy exchanges. Information sharing will cover corridor performance, trade flows and non-tariff barriers that hinder the movement of goods between countries.

The agreement also recognises the importance of ensuring that regional trade benefits women, young people, small-scale traders and communities along transport routes.

Dr Mwapinga said women engaged in cross-border trade contributed significantly to household incomes and regional economies.

Their experiences, he added, should inform reforms aimed at making trade safer, simpler and more accessible.

For small-scale traders, costly transport and complicated procedures can limit access to customers and wider markets. However, the extent of the benefits will depend on how effectively the institutions implement their commitments.

ALSO READ: TanTrade to boost exports through agreements

The institutions plan to advance their agenda through regional engagements, including a Women’s Parliamentary Conference scheduled for Dar es Salaam early next month and a PPP symposium planned for Luanda, Angola, on November 23.

The MoU also supports the African Continental Free Trade Area, the African Union’s Agenda 2063 and the Sustainable Development Goals, which promote economic cooperation and inclusive development.

The Central Corridor connects Burundi, the Democratic Republic of the Congo, Rwanda, Tanzania, Uganda and Zambia. According to Dr Mwapinga, all Central Corridor member states except Malawi are also members of the FP-ICGLR, providing a basis for closer cooperation between parliamentary representatives and corridor authorities. To support implementation, Mr Flory said each institution would appoint focal points within 30 days of the MoU entering into force.

They would prepare an initial joint work plan within 90 days, outlining activities, expected outputs, timelines and responsibilities.

A Joint Steering Committee will review progress at least once a year. The agreement does not create automatic financial obligations for either institution; activities requiring funding will be covered by separate written agreements.

For businesses, the ultimate test will be whether the partnership reduces border delays, improves regulatory consistency and lowers the cost of moving goods across national boundaries.

Beyond improving the movement of goods, closer coordination could help businesses plan deliveries more reliably, reduce expenses associated with border delays and improve the competitiveness of regional products.

Small and medium-sized enterprises, which often have limited resources to absorb additional transport and compliance costs, stand to benefit if the planned reforms simplify procedures and improve access to neighbouring markets.

However, harmonising legislation and strengthening parliamentary oversight will require sustained cooperation among national governments, transport agencies and border authorities.

Differences in implementation, inadequate infrastructure and persistent nontariff barriers could continue to undermine progress.