Tanzania responds to allegations of blocking Rwandan milk exports

TANZANIA – Tanzania has responded to allegations from Rwanda regarding the blocking of its milk exports, despite the two countries having signed a memorandum in January to foster smoother trade relations.

The Tanzanian government addressed the claims, with Deputy Minister for Industry and Trade, Mr. Exhaud Kigahe, emphasizing that any trade grievances within the East African Community (EAC) should be resolved through the region’s established mechanisms.

In an interview, Mr. Kigahe pointed out that the dispute falls under the EAC Customs Union Protocol, which requires that any trade-related complaints be submitted according to the procedures outlined in the protocol.

“The issue should be addressed through the EAC’s existing trade frameworks,” he said.

The controversy over Tanzania’s restrictions on Rwandan milk exports was brought to light during a roundtable discussion organized by the East African Business Council (EABC) last month in Rwanda.

The meeting, attended by private sector representatives and EAC Secretary-General Veronica Nduva, highlighted the growing list of non-tariff barriers (NTBs) that are reportedly hindering regional trade.

Participants at the roundtable voiced their concerns about the increasing levies imposed by Tanzanian authorities, which they argue go against the EAC’s customs union and common market principles.

Abdoul Ndarubogoye, president of the Long Distance Truckers Association, discussed the challenges faced by Rwandan milk exporters to Tanzania.

He noted that the high levies—often more expensive than the milk itself—are making it difficult for Rwandan businesses to maintain exports.

The milk export process is also complicated by multiple charges from different Tanzanian agencies, including the Tanzania Bureau of Standards, the Tanzania Medicines and Medical Devices Authority, and the Tanzania Dairy Board.

In addition, the government of Tanzania recently raised the fee for importing milk. Under new regulations published on August 31, 2018, the fee for importing one kilogram of milk has increased from Sh150 (US$0.055) to Sh2,000 (US$0.73), a 1,233 percent rise.

This increase has significantly impacted Rwanda’s ability to export its dairy products to Tanzania, especially to the northern regions where Rwandan milk is in high demand.

Tanzania’s milk production has grown in recent years, increasing from 3.4 billion liters in 2021/22 to 3.6 billion liters in 2022/23, but the country’s milk production still falls short of the national demand of 12 billion liters.

As a result, Tanzania continues to rely on imports, including milk from Rwanda, which produced one billion metric tons of milk in 2023.

Dennis Karera, vice-chairperson of the EABC, expressed concern that these new non-tariff barriers are negatively affecting intra-EAC trade.

He called for greater efforts to strengthen trade and investment ties among EAC partner states, urging the region to focus on removing such obstacles.

However, Mr. Kigahe responded by reiterating that any trade complaints should be formally addressed through ministerial meetings under the trade docket, rather than in public forums.

The issues surrounding Tanzania and Rwanda’s dairy trade are not isolated. Uganda and Kenya have also experienced tensions regarding the blockage of milk exports, particularly the case of Brookside milk, which Kenya has reportedly denied entry into its market.

Despite Uganda’s increasing milk production, the Kenya Dairy Board (KDB) has been accused of selectively denying permits for certain Ugandan milk brands, including Brookside.

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