Tanzanian President John Magufuli has blamed cross border restrictions for the higher cost of doing business in the region.
Speaking during the launch of Namanga One Stop Border Post at the Tanzania-Kenya border, President Magufuli said that the aim of having the East African Community (EAC) was about easing business across member states.
He said the border post will enable traders do business unrestricted.
President Magufuli also said that since the border post started operations, revenue collections on the Tanzanian side had increased to Tsh4.5 billion ($1.9 million) from Tsh3 billion ($1.3 million).
The ceremony was attended by Kenyan President Uhuru Kenyatta.
"President Kenyatta and I have been friends and we will keep cooperating with each other to ensure our people are empowered and benefit from doing business without facing obstacles," said President Magufuli.
President Kenyatta said that efforts targeting to boost regional economies should not only target large-scale business people, but also small-scale traders.
He also warned customs officials at the border post against engaging in graft, saying it undermined the EAC spirit.