This archive report was first published on 16 July 2019.
Uganda's sugar and edible oil exports to Tanzania have been stuck in limbo for over six months, despite a ministerial agreement to allow free movement of these products between the two countries.
The issue is set to be discussed at a Tanzania-Uganda business forum to be launched in Dar es Salaam by Presidents Yoweri Museveni and John Pombe Magufuli on September 4.
Uganda, which is trying to increase its exports to the East African Community, is looking to create a mutually beneficial relationship with Tanzania.
Currently, Uganda exports over $60 million worth of goods to Tanzania, making it one of the smaller export destinations for Ugandan goods.
Uganda's High Commissioner to Tanzania, Richard Kaboneero, hopes that this state of affairs will change once the two countries realize that working together is mutually beneficial for trade and investment.
Mr. Kaboneero said that he is looking to foster this mutually beneficial relationship through the business forum, which will be preceded by a joint permanent commission between Uganda and Tanzania.
The 25% tariff that Tanzania continues to charge on sugar and edible oil from Uganda is among the issues up for discussion at the September meeting.
For much of last year, sugar and edible oil extracted from sunflower had been stopped from entering the Tanzanian market, over allegations that these products were imported into Uganda, repackaged, and then re-exported to markets in the EAC.
A visit by Tanzanian officials to Ugandan factories producing sugar and edible oils found that Kampala was not importing and then re-exporting these products to its East African neighbors.
A bilateral meeting between Ministers of Trade Amelia Kyambadde of Uganda and Joseph Kakunda of Tanzania was then held during which they agreed to remove tariff and non-tariff barriers on edible oil and sugar.
The ministers then signed a deal to issue import permits for sugar and edible oil, but it has yet to be implemented.
Ugandan officials who participated in the negotiations suggest they are helpless, as they do not know what else to do to get Tanzania to fulfill its promises.
However, Mr. Kaboneero said he has a solution, working with his counterpart from Tanzania to create a private sector-led business forum that will focus on investment and sustainable development.
Leaders from Uganda and Tanzania will resolve issues like the ones facing sugar and edible oil business in the EAC during the meeting.
They will also discuss how Tanzania benefits from a partnership with Uganda, including the use of the Central Corridor, which is expected to reduce costs for Ugandans.
According to Tanzania's High Commissioner to Uganda, Aziz Ponary Mlima, his country expects that soon, Kampala's use of the Central Corridor will increase as a result of this partnership.
He said that Tanzania has already reduced the number of roadblocks in its territory from 21 to three, which should translate into lesser time spent on moving cargo.
However, clearing and forwarding agents that The EastAfrican spoke to said they still prefer using the Northern Corridor route.
