· Uganda’s trade war with Kenya and diplomatic tiff with Rwanda has proven to be beneficial for Tanzania. Uganda and Kenya have been clashing with each other on certain trade issues for almost two years.
· After the collapse of bilateral dialogue last month, the issues got escalated and Uganda announced an impending ban on Kenyan agricultural products.
Uganda’s trade war with Kenya and diplomatic tiff with Rwanda has proven to be beneficial for Tanzania. Uganda and Kenya have been clashing with each other on certain trade issues for almost two years. After the collapse of bilateral dialogue last month, the issues got escalated and Uganda announced an impending ban on Kenyan agricultural products. The Uganda-Rwanda dispute that led to the closure of the Katuna/Gatuna one-stop border post in February 2019, is still unresolved.
Tanzanian President Samia Suluhu has been trying to turn the situation to the advantage of Tanzania. Tanzania under President Samia has eliminated some of the tariff and non-tariff barriers that have reduced the cost of doing business and transformed Tanzania into a lucrative business partner. President Samia also visited the EAC member states except for South Sudan and offered development and trade deals.
On December 9, Kenyan President Uhuru Kenyatta was the chief guest at Tanzania’s 60th Independence anniversary celebrations. On the side-lines of the visit, both the leaders held bilateral talks to improve trade between the two nations. During the meetings with President Kenyatta, President Samia announced that a Joint Commission for Co-operation (JCC) will examine and eliminate non-tariff barriers between the two nations. Prior to that, she had held talks with Uganda’s Yoweri Museveni, to enhance business ties. All these efforts have started getting reflected on Tanzania’s exports.
According to the latest data from the Rwanda Institute of Statistics, Tanzanian exports to Rwanda in the third quarter of 2021, grew to 66.37 percent of the total $228.41 million from the EAC, from the 61.18 percent recorded in the third quarter of 2020. At the same time, Kenya’s exports to Rwanda shrank 33.44 percent to $76.39 million in the third quarter of this year, from 38.82 percent registered in the same period in 2020.
