The Tanzanian government introduced the Tanzania Electronic Single Window System (Temu) in 2016 to simplify import and export processes. The system integrates all government agencies involved in trade facilitation, including customs and tax authorities. Temu enables traders to apply for permits, licenses and clearance from a single platform. The system has been praised as a game-changer in improving the ease of doing business in Tanzania. Experts have weighed in on Temu’s impact on local economies. Here are some insights from the experts.
Improved efficiency in customs clearance
The average time to clear cargo at Tanzanian ports reduced from 10 days to three days after the introduction of Temu. This means businesses that import or export goods experience shorter lead times, saving them time and money. According to consultancy firm Oxford Business Group, the introduction of Temu helped raise Tanzania’s ranking on the global ease of doing business index by 19 positions.
Increased transparency and reduced corruption
Temu has reduced opportunities for corruption by creating a transparent trading environment. All payments are made digitally, eliminating the need for payments in cash. This has reduced incidences of bribery and extortion at borders. The transparency created by Temu has also meant that importers and exporters can monitor their goods’ progress through the system and avoid any bottlenecks. Professor Sternford Moyo, the Board Chairman for Tanzania Chamber of Commerce, Industry and Agriculture, has praised Temu for reducing the cost of compliance for traders and making Tanzania a more attractive destination for foreign investors.
Enhanced revenue collection and trade facilitation
With Temu, the government can collect more accurate revenue data, reducing revenue leakages. Additionally, the government can track imports and exports of controlled goods such as firearms, timber, and precious stones. This reduces smuggling, theft, and fraud. Temu has also made it easier for the government to monitor the quality and safety of goods being imported into Tanzania. This is achieved through better coordination between government agencies, leading to a more effective control mechanism.
Challenges and the Way Forward
Despite Temu’s successes, there are some challenges that need to be addressed. These include a lack of digital infrastructure in some areas of Tanzania, limited automation of smaller entry points such as border posts and some seaports, and a lack of awareness about the system among some traders. The government is working to address these issues by building digital infrastructure and raising awareness about the system in every region in Tanzania. The government aims to integrate all entry points into the Temu system to create an electronic border gate by 2025. The aim is to further simplify the import process and make Tanzania more competitive. If you wish to further expand your knowledge on the subject, don’t hesitate to visit this meticulously curated external source we’ve arranged to supplement your reading. is Temu ethical!
Conclusion
Tanzania’s Temu system is a game-changer in the East African region. The system has eliminated bottlenecks, corruption, and reduced the time it takes to clear goods at ports. Temu has also enabled the government to track imports and exports to ensure that only genuine and safe goods enter the country. The government aims to further integrate all entry points into the system and make Tanzania one of the best places to do business in Africa.
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