Factors Impeding the Realization of Optimal Gains From Regional Economic Communities: a Case Study of Tanzania in the East African Community

Abstract

The 21st Century has seen the birth and growth of numerous economic strategies that countries around the globe have benefited. In Africa, one of the most prominent strategies has been the creation of Regional Economic Communities (RECs). The communities serve various purposes including economic development, technological advancement, political cohesion and cultural integration. The East African Community (EAC) is one of the numerous RECs within Africa. The EAC consists of six member states; Rwanda, Tanzania, Uganda, Kenya, Burundi and South Sudan. Formation of the organization has led to invaluable benefits for the member countries including expansion of markets, creation of job opportunities and enhancement of political bonds between states among others. However, despite the creation of equal opportunities for growth for member states, some states continue to record faster growth rates than others. Although Tanzania has enjoyed substantial political stability and multiple opportunities for economic growth, it continues to lag behind smaller counterparts such as Rwanda and Kenya. This research sought to unearth factors impeding the realization of optimal gains from RECs, using Tanzania as the case study. The research relied on data from both primary and secondary sources to support the thesis. Findings from the data indicated that the evaluation was inclusive of actual and perceived opportunities within the EAC. The conclusion was that some of the major impeding factors for Tanzania’s ability to maximize on opportunities within the EAC included, restrictive policies, historical factors and inadequate use of national resources. The recommendations made included the complete adoption of the free movement of labor protocol, implementing clear strategies and policies and investing in the existing transport and technological infrastructure as well as promoting cohesion with other counties within the region