Uganda and Tanzania have agreed to remove all remaining trade barriers between them in a bid to address a widening trade imbalance estimated at nearly Shs9 trillion.
The decision was reached during the fifth session of the Joint Permanent Commission held Friday in Dar es Salaam, where officials from both countries committed to shifting from diplomatic discussions to practical solutions aimed at removing bottlenecks affecting the movement of essential goods.
Recent trade figures show a significant disparity between the two neighbours. In 2025, Tanzania exported goods worth about Shs10 trillion to Uganda, while imports from Uganda stood at roughly Shs1.1 trillion.
Negotiators are now working to resolve disputes related to import charges on key commodities including sugar, milk, steel and electric poles.
Beyond trade, the two governments are planning to harmonise the use of national identity cards to enable easier movement of workers across the shared border.
The meeting also reviewed progress on several regional infrastructure and energy projects, notably the East African Crude Oil Pipeline (EACOP). A joint communiqué was signed by Uganda’s Minister of State for Foreign Affairs, John Mulimba, and Tanzania’s Foreign Affairs Minister, Mahmoud Thabit Kombo, reaffirming their commitment to deeper economic cooperation.
Mulimba said the discussions marked a transition from political commitments to tangible economic action.
“The time for action is now,” he said, noting that citizens expect concrete results from bilateral engagements.
While defence cooperation and regional integration remain important, Mulimba stressed that immediate priority should be given to facilitating seamless trade between the two economies.
Kombo said the talks also covered cooperation in health, education and immigration.
Energy cooperation remains central to the partnership. Vincent Waiswa Bagiire, permanent secretary in Uganda’s Ministry of Foreign Affairs, said the Shs18.7 trillion EACOP project is now about 79 percent complete. Technical teams have been directed to resolve outstanding border issues ahead of the planned oil export target of October 2026.
Uganda and Tanzania are also exploring plans for a natural gas pipeline from Tanzania to Uganda, alongside a petroleum products pipeline connecting Uganda to the Tanzanian port of Tanga.
Transport connectivity is also being strengthened. The two countries have formalised a framework for the Isaka–Lusahunga–Murongo Standard Gauge Railway, which is expected to enhance regional cargo movement.
On Lake Victoria, the commissioning of the MV New Mwanza, described as Africa’s largest freshwater vessel, is expected to significantly reduce travel times and transport costs.
Other initiatives highlighted include the introduction of 24-hour operations at the Mutukula border post and the development of the 14-megawatt Kikagati–Murongo hydropower plant.
Uganda will host the next session of the Joint Permanent Commission in 2028.
