RwandaTanzania trade growth creating stronger bilateral ties
The recent commitment by the governments of Rwanda and Tanzania will dramatically improve trade especially along the Central Corridor.
The Central Corridor is key to Rwanda as it covers a shorter distance to the sea port of Dar es Salaam compared to Mombasa port on the Northern Corridor.
The local private sector has for the past many years complained about the numerous non-tariff barriers (NTB) along the Central Corridor, saying this was affecting their businesses and competitiveness.
The route has hitherto been characterised by many NTBs, forcing Rwandan businesses to opt for the Mombasa route.
The central corridor has been characterised by un-harmonised trade policies, numerous checkpoints along the route, congestion at Dar es Salaam port, and theft, among others.
However, as the two governments move to foster trade relations, experts are optimistic the move could turn around trade between the two countries. Experts say the development opens doors for trade partnerships and accelerated investments between the two countries.
Francois Kanimba, the Minister for Trade and Industry, said that improving business and bilateral ties between Rwanda and Tanzania will increase trade flow, boosting Rwanda’s exports to Tanzania.