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Uganda and Tanzania target trade bottlenecks to bridge Sh9 trillion

Uganda and Tanzania target trade bottlenecks to bridge Sh9 trillion gap

Tanzania–Uganda Joint Permanent Commission (JPC) The Agreed Minutes of the 5th Session of the Joint Permanent Commission (JPC) between the United Republic of Tanzania and the Republic of Uganda have been officially signed in Dar es Salaam. The signing marks the successful conclusion of the 5th JPC, reaffirming both countries’ commitment to strengthening bilateral cooperation and advancing shared priorities across key sectors.
 
Dar es Salaam , Tanzania | THE INDEPENDENT | Uganda and Tanzania have agreed to scrap all outstanding trade barriers in a high-stakes effort to repair a lopsided economic relationship defined by a staggering sh9 trillion ($2.4 billion) imbalance.
The mandate was issued Friday at the conclusion of the fifth Joint Permanent Commission, where top officials signalled a pivot away from diplomatic niceties toward the aggressive removal of technical bottlenecks. The urgency comes as 2025 trade data reveals a lopsided landscape: Tanzania exported 10 trillion shillings ($2.7 billion) in goods to Uganda, while receiving just 1.1 trillion shillings ($300 million) in return.
To narrow that gap, negotiators are now moving to resolve long-standing disputes over import charges on essential commodities, including sugar, milk, steel, and electric poles.
John Mulimba, Uganda’s minister of state for foreign affairs, described it as a “transition from political vision to economic execution”. He added that, “The time for action is now.”
The push for a more balanced trade floor is being supported by a massive infrastructure overhaul.
Officials formalized a framework for the Isaka-Lusahunga-Murongo Standard Gauge Railway, a strategic artery designed to slash logistics costs. Estimates suggest transit expenses for heavy freight could drop by nearly 50 per cent, with cargo times cut from days to less than 24 hours.
Energy projects are also being leveraged to tighten the bond. The 18.7 trillion shilling ($5 billion) East African Crude Oil Pipeline is now 79 per cent complete, with technical teams racing to meet an October 2026 export target.
Minister Mahmoud Thabit Kombo, Tanzania’s foreign minister, warned that the success of the summit will not be measured by signatures but by the practical monitoring and execution of these programs.
The two nations also plan to harmonize national identity cards to allow for the free movement of labor, effectively attempting to create a more integrated regional workforce.
Uganda is scheduled to host the next round of high-level talks in 2028.

www.independent.co.ug, https://www.independent.co.ug/uganda-and-tanzania-target-trade-bottlenecks-to-bridge-sh9-trillion-gap/

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