Uganda, Tanzania trade deficit reduces by Shs22b

Uganda and Tanzania reduced the trade deficit in 2023 by about $6m (about Shs22.6b), with exports closing at an estimated $186m (about Shs703b) up from $135m (about Shs510b), and imports at $192m (Shs725b).

The revelation yesterday by Ugandan diplomats in Kampala comes on the backdrop of the two countries fast-tracking development of key multi-billion dollar infrastructure projects to further cement bilateral relations and economic integration.

The infrastructure includes the $4b (Shs15 trillion) East African Crude Oil Pipeline (EACOP) from Hoima in mid-western Uganda to the Indian Ocean Tanga port, a reverse liquefied natural gas (LNG) pipeline from the south-eastern Mtwara region to Uganda, and the 130km Tabora/249km Isaka-Mwanza electric Standard Gauge Railway (SGR) line. The line winds at the Lake Victoria Mwanza port to facilitate cargo haulage to Uganda via Port Bell in Luzira.

The Tanzanian High Commissioner to Uganda, Maj Gen Paul Kisesa, said yesterday at the launch of the upcoming Uganda-Tanzania Business Forum that his government has constructed a cargo vessel due to start operations across the Mwanza and Bukoba ports and Port Bell.

The forum scheduled for May 23-24 in Dar es Salaam seeks to unite the private sectors of the two countries to work together and explore business opportunities.

Justification

“As we navigate the complexities of the global economy, the objective of this forum remains steadfast to attract investments between Uganda and Tanzania for sustainable and inclusive growth, industrialisation, and job creation,” Uganda’s High Commissioner to Tanzania Col (Rtd) Fred Mwesigye said in the speech read by Ms Laura Kahuga.

{It is, therefore, essential that we work together to create an enabling environment for business growth and innovation,” he added.

Ambassador Mwesigye revealed they have set “sights on even greater achievements” by prioritising and highlighting opportunities in six areas, including agribusiness, manufacturing, tourism and energy/oil and gas.

“The benefits of this business forum are manifold. Not only will it facilitate the exchange of ideas and best practices, but it will also provide a platform for networking and partnership building among key stakeholders,” he noted.

The forum also serves as an opportunity for discussions on trade barriers including non-tariff barriers (NTBs) and incongruent inter-country trade policies.

Ambassador Elly Kamahungye, the director of regional economic cooperation in the Ministry of Foreign Affairs, said the objective is to enhance “win-win bilateral partnerships” while attracting foreign direct investments to both countries.

The Chief Executive Officer of the Private Sector Foundation, Mr Stephen Asiimwe, said with the flourishing bilateral relations, more needs to be done to push for Uganda-Tanzania business joint venture partnerships.

“For a long time, we have done joint ventures with Europeans, Chinese. We need to firm up joint ventures with Tanzanian companies,” Mr Asiimwe said.

The first business forum also convened in Dar es Salaam in 2019. The forum, among others, achieved the development of the 15 megawatts Kikagati-Murongo Hydropower Plant at the Uganda-Tanzania border, Tanzania, slashing transit fees on Uganda-bound cargo trucks from  $500m to $154, and the agreement on Tanzania joining the One Area Network—the East African Community initiative for a harmonised mobile roaming market.

About forum

The 2nd Uganda-Tanzania business forum is expected to attract some 350 delegates from the Uganda and Tanzania business community, government officials and policymakers, analysts, economists, development partners and other professionals to discuss opportunities around five core areas; the extractives industry, finance, commercial agriculture, and tourism.