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Author(s): Heriel E. Nguvava, Arnold Ulomi.

Volume/Issue: Volume 7 , Issue 1 (2024)

Abstract:

This study examined the effect of the Single Custom Territory (SCT) on trade facilitation between Tanzania and Kenya, focusing on the roles of legal frameworks, inter-agency cooperation, and technological integration as independent variables. The study used a quantitative approach through multiple linear regression methods to determine the extent to which SCT’s constituent factors have influenced trade facilitation in the region. Both primary and secondary data were collected and analyzed. The findings suggest that 72.1% of variation in trade facilitation can be explained and attributed by the predictor variables. The legal framework plays a pivotal role in ensuring successful trade facilitation within the SCT context. Harmonization of trade policies and tariffs among the partner states (Tanzania and Kenya) emerged as a critical enabler for seamless cross-border trade. It was further revealed that enhanced inter-agency cooperation and collaborative border management committees contribute significantly to efficient trade processes. The integration of advanced technology, including ICT systems and electronic platforms is a key driver to efficiency in trade facilitation through massive reduction of operational costs and minimization of transit time. The study recommends, Partner states to actively collaborate in harmonizing trade policies, tariffs, and regulations across borders through consistent efforts in enacting and enforcing legislation that promotes transparent and efficient trade processes. Thus reducing ambiguity and fostering a conducive environment for cross-border trade. Partner state governments should facilitate formation of joint border management committees, cross-functional teams, and the implementation of regular training programs to promote collaboration and reduce redundant processes, thereby creating a streamlined trade ecosystem. Member states to embrace and expand technological integration that enable real-time data sharing, efficient information exchange, and provision of online services.

Keywords:

Single custom territory, Trade facilitation.

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