Uganda-Tanzania trade volume has reached P3.8 trillion

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Tanzania has been aggressively pushing to increase trade volumes with Uganda for almost a decade.

Tanzanian officials maintained direct contact with leaders of the Ugandan business community, and the government (Tanzania) insisted on a 10% share of Uganda’s trade with Kenya.

These efforts are starting to bear fruit, with trade volume estimated at $1 billion ($3.8 trillion) in 2022.

According to Private Sector Foundation Uganda (PSFU) Vice-Chairperson Sarah Kagingo, trade through the Central Corridor has resulted in improvements in agriculture, mining, energy and trade, among others.

John Mulimba, Minister of State for Foreign Affairs with responsibility for regional affairs, attended the Business Forum on Thursday. (Photos courtesy of)

She made this revelation today, May 23, 2024, during the 2024 Uganda-Tanzania Business Forum at the Johari Rotana Hotel in Dar es Salaam, Tanzania.

“Strong cultural and trade links between Uganda and Tanzania reached USD 1 billion in 2022,” she stressed, noting that key sectors such as agriculture, minerals and manufactured goods create economic opportunities for many Ugandans and Tanzanians.

Kagingo expressed gratitude to both governments for their support in integrating and developing markets, which benefits companies of all sizes.

She highlighted Uganda’s efforts to leverage the African Continental Free Trade Area (AfCFTA), which aims to work closely with Tanzanian counterparts to scale up trade.

AfCFTA is part of the flagship initiative of the African Union’s Agenda 2063, established to create an integrated continental market for goods and services and support the movement of capital and individuals.

Raphael Maganga, CEO of the Private Sector Foundation of Tanzania.

Full implementation of the agreement is expected to transform markets and economies across the region and increase production in the services, manufacturing and natural resources sectors.

Mr. Raphael Maganga, CEO of the Private Sector Foundation of Tanzania, emphasized that Uganda🇺🇬 and Tanzania🇹🇿 achieved a trade turnover of approximately $400 million last year, and Tanzania exported goods worth $192 million.

He highlighted the significant reforms carried out by the government in Tanzania, which have created one of the most favorable business conditions in the region. “The incentives and public-private partnership reforms offered by the Tanzania Investment Center signal Tanzania’s readiness to invest,” he said.

Maganga also touched on issues hindering trade, such as non-tariff barriers, which are estimated to cost $16 billion in the EAC, high trade costs, and the need for improvements such as the Multi-Polar One-Stop Border Control and the Dar es Salaam port.

The forum focuses on key sectors including mining, energy, trade and logistics.
economy into industrial powers with improved living standards.

Uganda High Commissioner to Tanzania and PSFU’s Sarah Kagingo at the Forum.

The biggest attractions of the exhibition at the Forum include the Kayoola Solars bus. The “Kayoola” bus, loosely translated as “mass bus”, is powered by solar energy, making it environmentally friendly.

Events on the first day included a keynote speech by Tanzanian Prime Minister Kassim Majaliwa.

John Mulimba, Minister of State for Foreign Affairs with responsibility for regional affairs,
urged participants to engage intentionally in discussions, network with partners and explore potential areas of mutually beneficial collaboration.

Tanzanian Prime Minister Kassim Majaliwa pictured in the exhibition hall moments before delivering the keynote speech on the first day.

“I encourage all participants to actively engage in discussions, connect with other partners and explore potential areas of cooperation that will benefit both Uganda and Tanzania. Let us use this opportunity to support deeper economic integration, promote trade and investment, and create an enabling business climate that will lead our countries towards shared prosperity and success,” he said, addressing delegates at the opening.

Mugimba also urged the Government of Tanzania through Prime Minister Majaliwa to consider purchasing the fleet for the Dar es Salaam Bus Rapid Transit System project from Kiira Motors Corporation.

Why Forum

The Uganda High Commission in Dar es Salaam is hosting the 2nd Uganda-Tanzania Business Forum aimed at strengthening economic ties between the two countries, following the success of the 2019 edition focusing on “Promoting bilateral trade and investment for economic and sustainable growth development”.