Tanzania: Rwanda-Tanzania Cross-Border Trade On the Rise

Every Thursday in Ndego Sector, Kayonza District, the shores of Kibare Lake buzz with activity. Ships unload tonnes of goods from Tanzania, while others load goods bound for Tanzania from Rwanda.

Kibare Lake holds regional importance as the Akagera River flows through it.

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After unloading, men and women transport sacks of commodities such as rice, maize, sorghum, beans, cassava, bananas, taro, yams, and chicken to Kibare Market. They also load other goods onto boats for Tanzania.

Tanzanian traders primarily buy construction materials such as iron sheets, cement, and nails, as well as goods like soap, jerry cans, cooking oil, hoes, clothes, furniture, and beer from Kibare Market.

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The booming small-scale cross-border trade in this area results from the recently constructed market and maritime transport system on Kibare Lake, benefiting residents of both Rwanda and Tanzania.

An estimated 80% of Rwanda's cross-border trade is small-scale, unrecorded, and informal, highlighting its economic potential.

Kibare Market was constructed a few meters from the lake to rehabilitate areas encroached by vendors, which previously led to pollution. The market was built at a cost of Rwf180 million.

Between 17 and 25 boats dock daily, each transporting around 30 tonnes of commodities, according to Ndego Sector officials.

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Trucks and other vehicles transport goods from the market to Kigali and other parts of the country. Elisa Harindintwari, a resident of the Ndego Sector, said, "Traders from Kigali, Kayonza, and other areas, as well as those from Tanzania, flock to purchase goods. Tanzanians sell their goods in Rwanda and buy what they need from Rwanda."

Joseph Murwanashyaka, who transports goods by bicycle, said, "I earn at least Rwf5,000 from transporting commodities to and from Kibare Market."

Lake Kibare, covering 336 hectares, is also home to Nile Tilapia, African Catfish, and Haplochromis fish species. "People come from various areas to Kibare Market for fish harvested from the lake," said Jean Bosco Tuyisenge, another resident of the area.

Need for Border Post and Port Construction

The business center also offers accommodation, shops, restaurants, and bars for traders who spend the night.

"Accommodation facilities were constructed due to demand. More lodges are needed as cross-border trade booms," said Tunda Mariko, a Tanzanian trader.

Traders and district officials are calling for a port on the lake and a border post for customs and immigration due to the increasing trade.

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Kayonza District was recently added to the list of secondary cities.

"The market started as a small selling point but is expanding. Tanzanian traders spend eight hours on boats to reach Rwanda and spend the night here. More hospitality infrastructure and standard border posts are needed. We are also planning to rehabilitate the road to the area and improve electricity and clean water supply," Hope Munganyinka, Vice Mayor in Charge of Social Affairs in Kayonza District said.

Rwandan and Tanzanian traders record Rwf80 million per day on the shores of Kibare Lake, according to area officials. The lake, previously drying up, has been restored by the Rwanda Environment Management Authority (REMA).

Developing a port on Kibare Lake could significantly boost maritime transport in Rwanda and its neighboring countries. The construction of four cargo and passenger ports on Lake Kivu is also expected to enhance maritime transport, particularly with DR Congo.

In 2018, the government launched a Rwf22 billion project to develop trade, maritime transport, and tourism along Lake Kivu. The ports will be built in Rubavu (Nyamyumba), Rusizi (Bugiki), Karongi (at the Karongi cross-border market), and Rutsiro (Nkora region).

Rwanda also plans to implement the Akagera River Water Navigability Project, linking it to Lake Victoria. This waterway would reduce freight costs, making Rwandan goods more competitive.

The vessels will depart from Kagitumba, a proposed port facility in Eastern Rwanda, before sailing to Lake Victoria ports. Kagitumba was chosen due to its flat terrain and accessibility via a major road connecting to Kigali.

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