Permit demands ‘hurting integration’

Arusha. Tanzania has once again come under fire for visa and work permit restrictions imposed on nationals of other East African Community (EAC) partner states.

“The exorbitant work permit and visa fees hinder the free movement of people and labour within the EAC, yet some partner states might have a shortage of skilled manpower to run the investments,” the regional Manufacturers’ Forum was told in Kampala recently.

The manufacturers said they were surprised Tanzania still insisted on visa requirement for EAC nationals entering its territory as well as demanding the Yellow Fever vaccination certificate.

They said a national of any of the other EAC states -- Uganda, Kenya, Burundi and Rwanda -- coming to Tanzania for business purposes has to pay $100 (Sh162,000) a fee that other partners do not demand.

As for the Yellow Fever vaccination certificate, Tanzanians without it pay $20 (Sh32,400) whereas all others classified as non-Tanzanians and not EAC nationals and hence must pay $70 (Sh133,400).

Tanzania has repeatedly defended mandatory Yellow Fever vaccination for people arriving into the country, including returning nationals, saying it did so within the binding requirements of the World Health Organisation (WHO).

However, the authorities at the Kilimanjaro International Airport (KIA) have often been embroiled in conflict with the employees of the EAC and affiliated institutions working in Arusha over the vaccination.

On the work permits, Tanzania has maintained that it was still conducting internal consultations with other EAC states on issues of cross border labour migration.

Kenya, the strongest economy in the region, also came under fire at the meeting dubbed the EAC Secretary General’s Forum for denying Ugandan transporters to carry cargo within its territory.

“Kenya denies Ugandan transporters the right to carry cargo and merchandise in Kenya. This isn’t in the spirit of goods and products within the EAC and Kenya,” the manufacturers noted in a statement, urging Kenya to open up to allow other regional transporter and conveyers.

At the forum, the Uganda Manufacturers’ Association presented some of the key policy issues affecting its members requiring urgent redress at the regional level, among them is the Tax Remission for Exports Office (Treo).

The manufacturers claim Kenya through Treo encourages local manufacturers to export their products. This is achieved by remitting duty and VAT on raw materials used in the production of goods for export.

They argued that the remission on duties and VAT makes Kenyan manufacturers to have a high competitive edge compared to the other EAC states.

The other issue is the Railway Development Levy of 1.5 per cent for all imports through Kenya introduced by the government there in the 2013/2014 National Budget for the development of the Kenyan railway network, but is being paid by all states and importers using the Mombasa Port or transiting through Kenya.

Speaking at the forum, the EAC Secretary General, Dr Richard Sezibera, urged the business community to popularise the local products.