During the visit, the two presidents opened the Rusumo one-stop border post. One-stop border post means immigration and customs officials at the two countries’ border work under the same roof.
The border post will ease travel and business operations and since both countries are member of the East African Community, they fall under single-customs territory.
And since Rwanda, a land-locked country nearest sea port is in Tanzania—Dar es Salaam Port, it needs a smooth link for its exports and imports.
Rwanda’s President Paul Kagame said that the visit by his Tanzanian counterpart to Rwanda signifies a new relationship between the two neighbouring states.
Indeed. The good relationship is poised to open up more trade and business opportunities between the two countries—one is on possibility of Rwandese to increase their usage of Dar Port, and two for growth of both formal and informal cross-border business.
In the recent past, Dar port managed to retake in and outbound Rwandese cargo from its traditional rivalry, Mombasa Port. Statistics from Tanzania Port Authority (TPA) show that Dar port share of Rwandese cargo traffic stood at 74 per cent compared to 26 per cent of Mombasa Port.
And cargo volume from Rwanda via Dar Port in the first two months of this year increased by 5.1 per cent to 5,995 TEUs. In the two months only Rwanda and Malawi TEUs increased as the rest decreased.
Figures from trade institution suggested that Tanzania can increase exports to Rwanda from 5.5 per cent to 15 per cent and ease transactions between companies trading in the two countries.
This potential and beyond is reachable as reports are suggesting that the two sides are organising a business forum in May to chart way forward on inter-regional trade.
The meeting is scheduled to be held in Kigali. A statement released in Kigali last Thursday revealed that Rwanda and Tanzanian High Commission in Kigali, will on May 16 hold “Tanzania-Rwanda Trade Forum” to discuss how the two countries can boost trade among their people.
It was reported from Kigali that Rwanda will use the joint trade forum to kick-start a campaign to become Tanzania’s top trade partner in five years, according to the organisers.
Other agendas of the forum are to strengthen bilateral ties between Rwanda and Tanzania as well as formalise trade relations between Dar and Kigali.
The talks to bring together both big and small companies from the two countries will provide a platform to explore how the governments can create a conducive environment for both Rwandan and Tanzanian companies to thrive.
Tanzania signed a memorandum of understanding (MoU) with Rwanda in 2008 to boost trade and attract investments in the two countries but trade relations have suffered with the political setbacks.
The May talks seem to be going to bridge the trade gap between Dar and Kigali as Tanzania lags behind Kenya and Uganda as Kigali’s top traders.
Rwanda’s Private Sector Federation (RPSF) and Tanzania Private Sector Foundation (TPSF) are expected to bring forth the MoU for enhanced rules of trade engagements.
On top of that, President Magufuli visit to Rwanda last week signified a journey of moving the EAC – a six-nation bloc to which both countries subscribe – forward.
“Since when you were elected, your presence has been refreshing; your words and deeds reflect our vision,” President Kagame told President Magufuli, known for his tough stance against corruption and wasteful government spending.
Source: Daily News

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark Africa.