Trade Effects of Non-Tariff Barriers in Tanzania: A Case of the Dar es Salaam-Namanga Busy Border Trade Post

Abstract

The main objective of this study is to examine and quantify the effects of Non-Tariff Barriers (NTBs) on cargo trade movement in Tanzania, focusing on the Dar es Salaam-Namanga Border Post. Specifically, the study aims to identify the main administrative or technical requirements along this trade route (both old and new), analyze the regularity of these requirements based on respondents’ feedback, and provide recommendations for mitigating NTBs. The study utilized an empirical survey design, collecting mostly qualitative data on border trade performance and perceived non-tariff barriers. The research was guided by economic theory and targeted formal and informal cross-border traders, transport companies, truck drivers, weighbridge attendants, and customs and revenue authorities. Data was collected through desk research, interviews, questionnaires, and stakeholder consultations. The Dar es Salaam-Namanga route was chosen for its importance as the busiest commercial corridor in the East African Community (EAC). The study employed both probability and non-probability sampling techniques, restricted to the Arusha-Namanga roadway. Four data collection methods were used: desk research, interviews, questionnaires, and stakeholder consultations. The data were analyzed using thematic analysis for qualitative information, and an econometric model based on Newton's gravitational equation (a modified gravity model) was used to quantify trade effects. Statistical Package for Social Sciences (SPSS) was employed for stepwise multiple linear regression analysis. The model's predictive power was tested using an F-test, and it was verified to meet assumptions of linearity, homoscedasticity, and multicollinearity. The results revealed that roadblocks, customs clearance, permits, and road infrastructure significantly affected trade performance. Unethical practices at weighbridges, frequent police checks, and customs procedures lead to monetary losses and time delays for cross-border traders. Bribery, police checks, and unloading processes during inspections were identified as factors contributing to the perception of NTBs as costly and time-consuming. On a positive note, improved road conditions have reduced transportation costs by lowering vehicle repair expenses and decreasing travel time. The study concludes that there is a need for regional cooperation within the EAC to eliminate existing NTBs. It recommends streamlining administrative procedures and working hours at border points, and implementing monitoring systems to ensure the effective removal of unnecessary barriers to trade. These measures are essential to improving trade efficiency and promoting the goals of the re-established East African Community.