President Samia Suluhu Hassan has stressed the need for the East African Community (EAC) to develop the private sector.
She has also called for equity in budget contributions by the partner states in the wake of different levels of economic strength.
"I firmly believe that for a country's economy to grow, the private sector plays a critical role", she said in Dar es Salaam on Saturday.
She told an EAC delegation led by secretary general Peter Mathuki that the region should capitalize on each partner state's competitive advantage to spur industrialization.
She disclosed that Tanzania has prioritized economic empowerment on the youth in order to tame unemployment.
"The region needs a strategic approach in tackling youth unemployment through vocational training and access to capital", she said.
On the EAC institutional framework, the head of state stressed the need for a comprehensive review of the EAC Treaty to reflect the current times.
The Treaty establishing the Community was crafted over 20 years ago when the regional bloc had only three members; Tanzania, Uganda and Kenya.
Ever since three more states have joined the Union; Burundi, Rwanda and South Sudan with the Democratic Republic of Congo (DRC) eyeing membership.
President Hassan also called for the review of other legal instruments of the EAC which might have been overtaken by new developments.
She specifically cited the annual budget contributions by the member countries to the EAC kitty, saying it needs a thorough review.
She argued that such contributions should be made in tandem with a partner state's economic strength unlike now.
Each of the six partner states is obliged to remit funds to finance the operations of the EAC on an equal basis.
For the past five years, the figure has been between $7million to $9million, almost a half of the EAC annual expenditure.
For the coming 2021/2022 financial year, it was proposed each country should contribute $7.8million to the kitty.
During the 2021/2022 fiscal year, the Community is estimated to spend $90million, of which $53.1million or 58 percent will be raised by the partner states.
Another $37.4million or 42 percent will be sourced from an array of development partners supporting the EAC.
"To ensure all members were able to meet their statutory obligations, there is a need to review a contribution mechanism", she said.
In his remarks, Dr. Mathuki said dialogue with the private sector was important "in order to enable us to address various barriers to trade".
He added that to better facilitate regional trade there was a need for the establishment of the EAC Disputes Settlement Mechanism.
EAC deputy secretary general (Planning and Infrastructure) Steven Mlote briefed the President on various regional infrastructure projects being implemented in Tanzania.
These include the 400 km road from Tanzania to Kenya running from Bagamoyo-Tanga/LungaLunga- Malidi, including a 523 meter Pangani Bridge.
The other is the 305 km road from Tanzania to Burundi running from Nyakanazi – Kasulu – Manyovu (260 km) in Tanzania and Rumonge – Rutunga – Bujumbura (45 km) in Burundi.
A 166km road linking Tanzania and Rwanda from Lusahunga – Rusumo (91 km) in Tanzania to Kayonza – Kigali (75 km) in Rwanda is another project.
Another is the 253 km road from Tanzania to Uganda from Masaka-Mutukula-Kyaka (120 km) in Tanzania to Bugene-Kasulo-Kumunazi (133 km) in Uganda.
BY GRACE MACHA IN ARUSHA
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