Tanzania and Rwanda committed to strengthening bilateral trade during the visit of the Rwandan President Paul Kagame to Tanzania on July 1st 2016.

Tanzania’s President Magufuli explained that the Tanzania Port Authority (TPA) will open an office in Kigali in Rwanda as an effort to promote and increase trade with Tanzania.

On its side, the establishment of the Rwanda Inland Container Depot (ICD) will facilitate the handling and storage of Rwanda’s cargo, of which 70% passes through the Dar es Salaam port.

During the visit, President Magufuli stressed the importance of railways for the economies of Tanzania and Rwanda.

For this, Tanzania has allocated TZS1tn in its 2016–2017 budget for the construction of the Standard Gauge Railway (SGR) to connect the port of Dar es Salaam to Rwanda and Burundi.

The SGR is expected to further increase the cargo volume handled at the Dar es Salaam port. The railway is expected to handle minimum 8.5m t and maximum 24m t of traffic volume per year by 2029.

Tanzania Rwanda Trade

Tanzania is Rwanda’s top export destination. In 2014 Rwanda’s export to Tanzania amounted to USD181m, representing almost 28% of the total value of Rwanda’s export.

Tanzania accounts for over 4% or USD80m of the total value of Rwanda’s imports.

The main exports of Rwanda to Tanzania are: niobium, tantalum, vanadium and zirconium Ore (33%), tin ores (28%), refined petroleum (16%), and tungsten ore (9.5%).

In July 2016, the countries committed to strengthening bilateral trade during the visit of the Rwandan President Paul Kagame to Tanzania.

Tanzania’s President Magufuli explained that the Tanzania Port Authority (TPA) will open an office in Kigali in Rwanda as an effort to promote and increase trade with Tanzania.

Earlier in 2016, Rwanda chose Tanzania over Kenya for the construction of a rail link to the Indian Ocean.

The Tanzanian option will link Kigali to Dar es Salaam for an estimated cost of around USD900m versus USD1bn for the Kenyan option, according to the Rwanda Ministry of East African Community Affairs.