Kenya and Tanzania are two of the most competitive economies across the East African region.
These two nations are joined together within the East African Community (EAC) by culture, politics and the African way of interacting. In the 21st century, partnerships are essential in forging better development plans. In the same spirit, Kenya and Tanzania's bilateral relations have experienced an exciting journey that features--good and bad times.
These relations hit a high under former President Uhuru Kenyatta and Samia Suluhu Hassan when the two countries cosied up to each other after an uneasy calm with the late President John Pombe Magufuli.
- Kenya and Tanzania have been experiencing a series of trade wars over the past years, marring trading flow
- Over the past year, Kenya-Tanzania bilateral trade hit US$905.5 million from January to November 2021
- Kenya's imports from Tanzania stood at US$501 million and exports at US$403.9 million
Regardless of the latter, learning lessons are the most vital elements that curve solid strategic plans. Over the past year, Kenya-Tanzania bilateral trade hit US$905.5 million from January to November 2021. This is according to the Central Bank of Kenya.
Spreading the relationship across the table, Kenya's imports from Tanzania stood at US$501 million and exports at US$403.9 million on the other side of the aisle. On the other hand, Tanzania, one of Kenya's main trading partners, is engaged in crucial areas such as trade, security, education, agriculture and energy.
However, as a competitive economy, Kenya is eyeing and executing various approaches in important sectors, including agriculture. The nation is now exploring and applying Genetically Modified Organisms (GMOs).
This situation is yet another block that resembles a number of trade conflicts that occurred in the past between the two nations. Product seizures, destruction, permit blocking and crop bans were among the past hindrances to the duo's trade relations.
For two nations with tremendous economic potential, such as Tanzania and Kenya, to be on the verge of extreme trade wars almost every year is devastating to entrepreneurial efforts, particularly for emerging businesses banking on intra-regional business opportunities.
Highlight of trade relations issues
It is important to take a clear view of the past to understand the complexities of the future. In this case, the trade relations issues of the past between Kenya and Tanzania showcase how these nations have much work to do.
In June 2022, Kenya pointed out that its trading partner--Tanzania doubled the cost of export permits by almost 93 per cent, which could spark another set of disputes with the Kenyan government.
This scenario impacted trucks transiting into Kenya with precious and expensive cargo--amid the new requirement demand. Hundreds of trucks were left stranded at the border.
In 2020, Tanzania brought another set of issues, arguing that its trade partner Kenya used zero-rated industrial sugar imports to produce various products. Hence, concerning this, Tanzania imposed a 25 per cent import duty on Kenyan confectionery, including chocolate, chewing gums, sweets, ice cream and juice.
As a result, Kenya retaliated and banned Tanzanian tour vans from accessing the Maasai Mara National Reserve.
Kenya argued this was in reaction to Tanzania tourism authorities stopping Kenyan operators from accessing the Serengeti National Park. As a counter-reaction to the latter, Tanzania went a step further to impose fresh quality verification standards for Kenyan products.
READ: Kenya becomes fifth country to allow GMOs. Will it last?
GMO stance
Kenya is facing some severe food insecurity issues attributed to a devastating drought. The situation forced the nation to allow the open cultivation of genetically modified crops, which was banned for almost a decade.
According to a news organisation--Anadolu Agency- the decision was taken at a Cabinet meeting chaired by new President William Ruto after considering the recommendations put forward by a task force on genetically modified foods and food safety said in a statement on October 03, 2022.
However, the government of Tanzania, via the Agriculture Minister, Hussein Mohamed Bashe, argued that Kenya's GMO move "does not affect us."
Further, the ministry argued it would step up vigilance against the importation or illegal entry of GMO crops from neighbouring countries that allow the use of biotechnology in agriculture.
According to the Ministry, Tanzania does not promote or commercialize genetically modified crop varieties, as the country's Hybrid and Open-Pollinated (OP) varieties are performing well (The Citizen).
"Currently, issues related to biotechnology are being widely researched so that people understand its handling and control as far as data collection and analysis are concerned," he said.
As such, Bashe added, whenever responsible authorities are satisfied with the matter, Tanzania will proceed with GM trials. For now, the country is comfortable with its non-GMO crops.
Tanzania is taking its agricultural endeavours with utmost seriousness. It has transformed its strategies and invested human capital, political attention and financial muscle towards improving local farmers' abilities to suffice food security and exportation demands.
The nation is also venturing into improving its traditional seeds as Tanzania's Agricultural Research Institute (TARI) is researching and producing traditional seeds with a stance pivoted towards developing and conserving them, as highlighted by Bashe.
READ: Tanzania's agriculture ambitions fueling grain exportation in East Africa
Ruto and Samia on bilateral relations
Recently, Kenya and Tanzania presidents, in Tanzania's commercial--Dar es Salaam cemented their bilateral relations.
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On October 10, Tanzania and Kenya again took the liberty to address and commit to eliminating all existing non-tariff barriers (NTBs) within two months to enable smooth cross-border trading.
"We have seen crucial development after addressing some of the NTBs. Both countries have directed their ministers responsible for trade and investment to make sure that we remove the remaining 14 NTBs," President Samia noted.
The trade volume between the two nations has been increasing as well as returns. According to President Ruto, building a solid foundation for trade and economic relations can walk upon is essential.
Ruto is doing nearly the same thing his counterpart did soon after assuming office. He added, "You laid a good foundation after you came into office and worked with my predecessor. I intend to build on this foundation together with you so that we can take our countries to the next level."
Over the past months, Tanzania and Kenya both saw a gruesome fight for natural gas investment in Kenya, featuring two tycoons, Rostam Aziz and Mohamed Jaffer. Hopefully, the recent commitment by the two leaders will sweep the uncertainties away.
On the same note, Kenya and Tanzania have proposed and agreed on a US$1 billion natural gas pipeline stretching from Mtwara to Dar es Salaam, Mombasa and then extending to Nairobi.
READ: AI shows potential in climate-smart agriculture mechanization in Africa
