Uganda and Tanzania have finally agreed to remove all non-tariff barriers to spur bilateral trade, Chimp Corps report.

According to bilateral trade figures of the year 2021, Tanzania’s exports to Uganda hit the $1bn mark from about $200m in 2018.

Uganda’s exports to Tanzania in the same year reduced to $122m.

Uganda’s trade volumes were affected by the non-tariff barriers imposed by Tanzania including restrictions on exports such as sugar, milk and movement on Ugandan trucks.

For example, Ugandan trucks entering Tanzania are charged road user fees of up to $500 from Mutukula border to Dar es Salaam.

Yet, Tanzania charges a flat road user fee of $152 for trucks from other countries entering Dar es Salaam in the region.

During today’s Joint Permanent Commission (JPC) held at Kampala Sheraton Hotel in Kampala, Tanzania said the matter should be fast tracked with the process of harmonization of road user fees in EAC secretariat.

Uganda says earlier decisions to have a flat rate for its trucks should be considered by Tanzania.

Speaking at the JPC, Uganda’s Foreign Affairs Minister Jeje Odongo, said he was “delighted to learn that both delegations have heeded to the call by our two Heads of State to work together to eliminate all Non-Tariff Barriers to facilitate trade between our two countries. Trade is an important element for our mutual growth and prosperity.”

He added: “It’s also good that the two sides have agreed to appoint focal points for all MDAs in the two countries who will coordinate and follow up on issues to ensure quick and full implementation on what has been agreed.”

Implementation 

The JPC is aimed at following up on the progress of the implementation of previous bilateral decisions on joint projects.

Tanzania has achieved considerable progress on the Standard Gauge Railway (SGR) from Morogoro to reach Mwanza.

Tanzania today reported that construction of the SGR lines from Dar es Salaam to Morogoro is 94.78% complete and Morogoro-Makutupora which is about 77% complete and Isaka-Mwanza is 4%.

Construction of the railway from Makutupora to Tabora and Tabora to Isaka is under procurement, according to Tanzanian officials.

Minister Jeje Odongo said “it will be good for Uganda if Bukasa port is completed as this will enhance connectivity and will reduce our transportation costs, increase the attractiveness of Uganda as a business hub which will go a long way in improving the lives of our people.”

Pipeline

Goods imported via Dar es Salaam Port will move by railway line to Mwanza from where they will be loaded on a water vessel on Lake victoria up to Bukasa port in Kampala.

On the East African Crude Oil Pipeline (EACOP) Project, Odongo said the MoU on the provision of security for the pipeline was signed by the Ministers of Defense of Uganda and Tanzania in 2020.

“This project is envisioned to bring in immense opportunities for both countries such as Foreign Direct Investment, Employment; skilled, semi-skilled and casual laborers; business for suppliers and service providers as well as infrastructure development in terms of service roads along the pipeline,” said Odongo.

Tanzania’s Foreign Affairs Minister Liberata Mulamula appreciated Uganda’s High Commissioner to Tanzania Amb Richard Kabonero and his counterpart Aziz Mlima for spearheading the implementation of bilateral projects such as the East Africa Crude Oil Pipeline, securing routes for Uganda Airlines, construction of the electricity inter connectivity lines and One area network which Tanzania has now joined.

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