Uganda has signed a Memorandum of Understanding with Mozambique that will allow citizens of both countries to travel between the two states without requiring visas.
The MOU was signed during the second session of the Joint Permanent Commission meeting held in Kampala between the two African countries.
This means diplomatic, service or official and ordinary passports holders from the two countries will not require visas to enter each other's borders.
Speaking on Thursday, the State Minister for Foreign Affairs, John Mulimba said the development will propel travel and trade between the two countries.
"Trade is all about movement of goods and people. If you restrict movement of people, then the goods wont reach the destination. Therefore, the removal of the visa requirement is a stimulant . This move will also ensure transfer of expertise between the two countries and that will spur economic transformation," Mulimba said.
He applauded Mozambique for initiating the move for visa exemption.
The development means Mozambique joins Botswana, South Sudan, Malaysia, Angola, Kenya, Malawi , Rwanda and Comoros among others as African countries whose citizens are exempted from paying for visas while traveling to Uganda.
A visa to Uganda costs $50 .
A number of African countries have been advocating for exemption of visas for fellow African countries as a way of stimulating trade amongst themselves.