This archive report was first published on 16 September 2019.
On September 5-6, 2019, Presidents John Magufuli of Tanzania and Yoweri Museveni of Uganda attended the inaugural Uganda-Tanzania Business Forum in Dar es Salaam, marking a significant step towards strengthening their bilateral trade.
The two-day forum led to the signing of three memoranda of understanding (MoUs) in the agriculture, immigration, and correctional services sectors. These agreements aim to remove non-tariff barriers, streamline immigration processes, and offer tax incentives to boost trade between the two countries.
According to Tanzanian authorities, the trade between the two countries has been on the decline, with last year's trade standing at $338 billion, compared to nearly $116.7 billion this year. The Uganda Private Sector Foundation has called on Tanzania to remove all trade barriers and resolve not to introduce new ones as per the Common Market protocol.
Some of the challenges affecting bilateral trade include Tanzania's entry denial of sugar imports from Uganda, high road user fees, mandatory business visas of $500, and refusal of Ugandan Custom officers from working at the port of Dar es Salaam. The private sector has also called on both governments to expedite infrastructure development from the port of Dar es Salaam to Lake Victoria and northwards to South Sudan, to reduce the cost of doing business along the Central Corridor.
President Magufuli decried the fact that only 22 Ugandan companies were registered in Tanzania compared with over 400 from Kenya. He also cited bureaucracy and non-tariff barriers as the main impediments to business and trade. President Museveni emphasized the importance of trade, stating, 'those putting up barriers don't understand the importance of trade.'
