Rwan­daTan­za­nia trade growth cre­at­ing stronger bi­lat­eral ties

The African - - MARKETS -

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.

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