Tanzania makes U-turn on Uganda sugar

Tanzania will resume buying sugar from Uganda, signalling a relaxation of one of the trade disputes that has lasted close to three years.

President Samia Suluhu, during day one of her two-day state visit to Uganda, agreed with her host President Yoweri Museveni that Kampala would also supply her country with anti-retroviral (ARVs) drugs.

According to a joint communiqué released after the Presidents’ meeting on Tuesday evening, Uganda will supply 10,000 tonnes of sugar to fill a production gap in Tanzania.

Disputes

Tanzania banned sugar from Uganda in 2019, saying the imports originated from third-party countries.

Uganda has, over the years, blamed Tanzania for instituting several non-tariff barriers that have thwarted seamless trade between the two countries. These include restrictions on sugar, milk and movement on Ugandan trucks.

The two heads of State have also directed their relevant ministers to meet often to resolve the trade disputes to allow the smooth flow of trade between the two countries. The leaders said the implementation of resolutions should be done within a month.

Also Read: Uganda now to export excess sugar to Tanzania

Transporters will also benefit from President Suluhu’s visit as the two leaders agreed to cut charges trucks pay from $500 to $10 per 100km from the Mutukula border to Dar es Salaam effective July 1. This will cost truckers about $150, similar to what trucks from other countries pay.