By The Moneypedia correspondent
Tanzania President Samia Suluhu Hassan and her counterpart Kenyan William Ruto have agreed to bring down all trade barriers that hinder the smooth flow of trade and people between the two countries.
Samia and Ruto have ordered cabinet secretaries from both countries in ensuring that trade barriers are waived.
The order came at this time when Tanzania exported goods to Kenya worth $ 118.6 million only in the first quarter of this year 2022. During the period Kenya's exports to Tanzania were valued at $139.4 million.
“In 2021 Kenya’s exports to Tanzania hit $ 409.7 million in 2021 from $.294.9 million in 2020 while Kenya’s imports from Tanzania stood at $. 489.8 million in 2021 and $.258.3 million in 2020,” according to the East African Business Council (EABC), an apex body of private sector associations in the region.
In her briefing after the talks, President Samia said that Tanzanian and Kenyan experts have identified 68 trade barriers, of which 54 barriers were removed and the remaining will be addressed by cabinet secretaries.
“We have directed cabinet secretaries to deal with the remaining 14 trade barriers so as to ensure that there’s a free will to trade between our two countries," Tanzania's president said.
She further said that there is a need to unlock trade between the two countries with the aim of averting poverty and spurring economic growth as well as improving diplomatic ties.
On his part, President Ruto said that his country will improve the trade volume with Tanzania so as to foster strong diplomatic ties between the two East African Nations.
“Our nations will be working to double trade from the current TSh 90 billion so as ensure the trade and investors benefit from the relations,” Dr. Ruto said.
He noted: “Our Trade Cabinet Secretaries from our two nations with other officials will be having a meeting to remove fourteen trade barriers that have hindered trade operations between our countries.”
Areas of interests
Tanzania is a strategic partner of Kenya in many areas including business and trade, security (military), education, food and agriculture as well as in the energy sector.
Tanzania and Kenya on Diplomatic Ties
The first high commissions of Kenya in Tanzania and vice versa were opened after the independence of Kenya.
However, after the breakup of the EAC in 1977, both countries severed diplomatic ties. The breakup of the first EAC which was founded in 1967 was brought about by ideological differences between Tanzania and Kenya.
As it was during the cold war African countries were making decisions on whether to become socialist or capitalist. Kenya's leader Kenyatta was intent on making sure that Kenya wouldn't become socialist and Kenya stuck to capitalism. Tanzania on the other hand championed Ujamaa, a major African socialist policy.
Tanzania and Kenya resumed diplomatic ties in 1983. Today both countries enjoy healthy relations. Both countries are inhabited by the world's largest Swahili-speaking populations, Swahili is the official and national language in both countries.
Kenya and Tanzania share a lot of cultural similarities.
High-level visits
Presidents of Tanzania and Kenya have on multiple occasions made state visits to each other's countries.
Trade and economy
Tanzania’s increased exports to Kenya have forced the Tanzania Revenue Authority (TRA) to post its officials to Mombasa and Nairobi to facilitate the pre-arrival clearance of goods.
Kenya is also mulling the deployment of officials from its taxman, Kenya Revenue Authority (KRA) to the Horohoro-Lungalunga border to facilitate the pre-arrival clearance of exports.
Meanwhile, Kenyan firms have operations in Tanzania. Some of these are Kenya Airways, Kenya Commercial Bank (Tanzania), Equity Bank (Tanzania) etc.
Kenya has a high commission in Dar es Salaam. Tanzania has a high commission in Nairobi and a consulate general in Mombasa.
