Impact of Informal Cross-Border Trade to the Economy: The Case Study of Tanzania

The aim of this study is to review the existence evidence of Informal Cross-Border Trade’s (ICBT) impact to the Tanzania economy and suggest strategic policy recommendations to Government, Regional Economic Communities, and Development Partners on the best approach in addressing the issue of ICBT in Tanzania with its four-selected border region and neighboring countries within East African Community (EAC). The objective has been attained by identifying factors contributing to the existence & rise of ICBT and by doing analysis on the general characteristics of ICBT and its trend in selected border regions where the issue of ICBT is crucial. Finally, this article suggests policy measures that aim at reducing increase number of trade barriers, i.e., Non-Tariffs Barriers (NTBs) hence increase the growth of formal trade sector and widen more trade opportunities in the region and at the global market.