RWANDA – Rwanda has accused Tanzania of obstructing its milk exports despite a memorandum signed in January to ease trade barriers. 

The issue was raised during a roundtable meeting last week in Rwanda of the East African Business Council (EABC) CEOs with the East African Community (EAC) Secretary-General.

The private sector expressed concerns over Tanzania’s introduction of new non-tariff barriers (NTBs), which they claim contradict the EAC’s Customs Union and Common Market agreements.

Abdoul Ndarubogoye, president of the Long Distance Truckers Association, highlighted that Tanzania imposes heavy levies on Rwandan milk exports, making it nearly impossible to compete in the market. 

“Our neighbours put a heavy levy (on milk exports) that you cannot pay. They ask you to pay a levy that is more expensive than the milk itself,” Ndarubogoye stated.

The charges imposed by various Tanzanian institutions, such as the Tanzania Bureau of Standards, Tanzania Foods and Drugs Authority, and the Tanzania Dairy Board, have been seen as major obstacles. 

A key regulation published in 2018 raised the import fee for a kilogram of milk in Tanzania from Tsh150 (US$0.055) to Tsh2,000 US($0.73), representing a significant 1,233% increase.

Despite Tanzania’s milk production growing from 3.4 billion liters in 2021/22 to 3.6 billion liters in 2022/23, the country’s demand of 12 billion liters means it still relies on imports.

However, these new barriers have made it challenging for Rwanda, which produced 1 billion metric tons of milk in 2023, to export to Tanzania.

Dennis Karera, vice-chairperson of the EABC, noted that such NTBs hamper intra-EAC trade and called for stronger trade and investment relationships among partner states.

The issue is further complicated by ongoing disputes between Uganda and Kenya over milk exports, with Nairobi blocking Brookside Uganda’s milk, while allowing other brands such as Lato and Dairy Top.

Rwandan transporters have also reported corruption and arbitrary road tolls on East African roads, particularly on the Mombasa-Taita Taveta route and the Central Corridor. 

Ndarubogoye added that Rwandan trucks face inconsistent charges and are often required to provide certificates for both the trucks and their contents.

In response, EAC Secretary-General Veronica Nduva urged the private sector to promote the EAC as a unified trade bloc. 

Other discussions at the meeting covered various sectors, including air transport services, logistics, tourism, and the digital economy, as well as addressing road-user charges, discriminatory levies, and work permits.

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