Tanzania, Kenya remove 50 trade barriers in four years

Dar es Salaam. Tanzania and Kenya have made significant strides in improving their business relations following the elimination of 50 trade barriers.

The reduction from 65 to 15 trade barriers has been done under the leadership of President Samia Suluhu Hassan, said Deputy Minister for Industry and Trade, Mr Exaud Kigahe.

Speaking during the 61st anniversary of Kenya’s independence, known as ‘Jamhuri Day,’ held in Dar es Salaam, Mr Kigahe said the business cooperation has brought substantial success to both sides.

“When we talk about the relationship between Tanzania and Kenya, it’s more than just politics; it’s about business and the economy. We used to have more than 65 barriers, but now, we have reduced them to just 15,” he said.

Mr Kigahe added that Tanzania is the leading supplier of raw materials to Kenya in Africa, underscoring the importance of economic collaboration between the two nations.

“Tanzania exports more raw materials and food to Kenya than any other African country. This shows not only economic unity but also how we support each other. We want our trade to continue improving, benefiting both Tanzania and Kenya,” said Mr Kigahe.

Furthermore, Mr Kigahe mentioned that there are ongoing plans to further open up the borders so that Tanzanians and Kenyans can trade freely and also collaborate in sectors such as education and employment.

He also stressed the importance of strengthening the East African Community (EAC) by adopting a single currency and using Swahili as the main language for business and communication.

“We propose having a single currency to strengthen our economy as a community, rather than each country selling products individually. Swahili will be a crucial tool to unite our people and achieve our economic goals,” Kigahe said.

Mr Kigahe said that if Tanzania and Kenya continue to improve their relationship, it would serve as a model of solidarity for other EAC countries.

He encouraged businesses from both countries to collaborate further to drive economic development for the benefit of both nations.

“Businesses in Tanzania and Kenya should learn from each other and cooperate. This partnership will help us make even greater economic strides and strengthen our relationship,” he said.

For his part, Kenya’s ambassador to Tanzania, Isaac Njenga, said the Tanzanian government has shown true solidarity.

“We are investing here, doing business and producing goods in collaboration with Tanzanians. This is something to be proud of and reflects our long-standing friendship both before and after independence,” he said.

According to him, the relationship between Tanzania and Kenya continues to serve as a model for other African countries.

A December 2023 report from the Bank of Tanzania (BoT) shows that Tanzania imported goods worth Sh1.06 trillion from Kenya in the 2022/2023 financial year, while exports to Kenya totalled Sh724.32 billion in the same perioud under review.

However, the report shows that in the previous year, Tanzania exported 10 percent more goods to Kenya than it imported, reflecting the ongoing shift in the trade dynamics between the two nations.

“The reduction of trade barriers between Tanzania and Kenya is a positive step in strengthening economic unity,” he noted.

He added the collaboration demonstrates how the two countries can benefit from clear and effectively implemented trade policies. “With these achievements, it is expected that Tanzania and Kenya will continue to be a model in Africa for fostering bilateral trade and investment,” he added.