Dar, Lusaka to strengthen economic partnership through STR

TANZANIA and Zambia are taking a significant step toward strengthening their economic ties with the signing of the Simplified Trade Regime (STR) agreement.

This landmark deal aims to streamline trade processes, reduce tariffs and facilitate smoother cross-border transactions.

The Ministry of Industry and Trade, Deputy Permanent Secretary, Dr John Simbachawene said by enhancing cooperation in key sectors, the agreement is expected to boost trade volumes and promote economic growth, benefitting businesses and consumers in both countries.

“This agreement we have signed encompasses a wide range of products manufactured in our member states,” said Dr Simbachawene recently during a signing ceremony in Nakonde, Zambia.

The goods including chemicals, cigarettes, furniture, cement, fruits, horticultural products, soap, grains, flour, sugar and pharmaceuticals.

The STR plays are crucial role as regional integration becomes increasingly important, this partnership sets a positive precedent for collaboration in East and Southern Africa.

Additionally, Dr Simbachawene said that both countries have agreed to establish information desks to facilitate better communication and support for traders.

The Tanzania’s goal is to support cross-border traders in overcoming the challenges they encounter in their daily operations. Tanzania’s High Commissioner to Zambia, Lt Gen Mathew Mkingule, said that entrepreneurs will now have the opportunity to market and sell their products in both countries, opening new avenues for growth and collaboration.

“I encourage cross-border traders to take full advantage of this opportunity to market their products, particularly food items, for the benefit of both nations,” said High Commissioner Mkingule.

He said that initially the two countries signed STR in 2017 which included 22 products.

“Although we signed this agreement seven years ago, we faced several challenges in its implementation.

However, many of those issues have now been resolved, allowing us to address new ones,” said Lt Gen Mkingule. He noted that the two countries have established a new agreement that expands the list of products from 22 to 51.

Tanzania exports to Zambia was 98.61million US dollars last year, according to the United Nations COMTRADE database on international trade while imports goods worth 113.06 million US dollars. Zambia’s Ministry of Commerce, Trade and Industry, Permanent Secretary, Ms Lilian Bwalya said that the STR agreement is designed to simplify customs documentation, making it easier for traders to navigate the process.

“These desks will facilitate smoother document clearance and provide comprehensive information about customs procedures, ensuring a more efficient trading experience for businesses on both sides,” said Ms Bwalya. To further support this initiative, dedicated information desks will be established in Tunduma, Tanzania and Nakonde, Zambia.

“This agreement will empower cross-border traders to operate legally through Nakonde and Tunduma, effectively eliminating unofficial trading practices,” said Ms Bwalya.

And is expected to significantly enhance bilateral trade and contribute to economic growth for both countries. She, further said that the two countries will continue to enjoy a strong relationship, emphasising that Tanzania and Zambia conduct business under the Free Trade Area framework of the Southern African Development Community (SADC), of which both are member states.