The governments of Rwanda and Tanzania agreed to cooperate and strengthen business ties in areas of agriculture, trade and logistics, as well as information and communication technologies, following the visit of Tanzania’s Minister of Foreign Affairs and East African Cooperation January Makamba to Rwanda. “Now is the time to get to work. The two countries should form joint permanent committees to draw an implementation plan,” Ildephonse Musafiri, the Minister of Agriculture and Animal Husbandry told The New Times. According to the Minister, there already exists a memorandum of understanding (MoU) on agriculture between the two countries that has been on paper awaiting implementation for some time now. “This MoU is very detailed. We have an opportunity to conduct agriculture research to improve things like seed multiplication and exploring rice varieties that can benefit Rwanda,” he noted. What is required, he added, is to fast-track the implementation plan with immediate efforts being focused on knowledge-sharing in value addition in the dairy sector. “They [Tanzania] have vast land, but their livestock is not developed. We can tap into this and facilitate our companies to do business,” Musafiri said, adding that they are yet to fully identify areas in which Rwanda can have competitive advantage. There is no question about the two countries being strategic business partners. Tanzania is a big country with a seaport that connects landlocked countries including Rwanda. As such, the majority of imports destined to Rwanda are processed through the port. To be precise, Rwanda is the third largest user of Dar Es Salaam port – Tanzania’s seaport – with more than 80 per cent of the country’s cargo passing through the port. “Tanzania is Rwanda’s second largest trading partner. The potential to be first exists. We are going to work on it,” Makamba said on his final leg of his official tour during which he met President Paul Kagame and Rwanda’s ministers of Foreign Affairs, ICT, Trade, and Agriculture. Rwanda being Tanzania’s second largest trading partner means that there are more opportunities to foster business collaboration. From agriculture, tourism, and information and communication, to fast-moving consumer goods, the two countries have a chance to collaborate. The two countries have been conducting business with each other for a long time. Established players like Bakhresa Grain Milling – operating in Rwanda for over 15 years – and planned investments by METL Group showcase the growing appetite for more cross-border business ventures. The New Times understands that METL Group, a food and packaging conglomerate owned by Tanzanian billionaire industrialist Mohammed Dewji, acquired land in Rwanda where it plans to construct a food processing factory. This potential can be harnessed, at least the private sector sees it that way. Philbert Inkindi, Chief Commercial Officer at Dubai Ports World Rwanda, is convinced that there is room to enhance efficiency in how business operations are conducted across the border. Whether that means fast-tracking paperwork at the border, or putting in place efficient ways to reduce how much it takes to clear cargo at the border post, all this makes a difference. Tanzania can play a role in this whole equation. Already, the allocation of pieces of land at Isaka and Kwale dry ports in Tanzania is a positive move for transport and logistic businesses. Inkindi believes Isaka dry port is such an ideal infrastructure that could serve Rwanda in a meaningful way. The development could help bring down the cost of transport, and prevent unnecessary costs logistic companies spend when the port of Dar Es Salaam is congested. “It currently costs about $3,800 to transport one cargo from Dar Es Salaam to Kigali. The same-sized cargo could cost $2,000 if one had to transport it from Isaka port directly to Kigali,” Inkindi said. Rwanda and Tanzania also agreed to build a new border post along the countries’ borders in the Eastern Province of Rwanda. Such a piece of infrastructure would increase efficiency in customs operation. The opportunities are undoubtedly immense.
