Tanzania: Businesses Welcome Rwanda-Tanzania Ports Agreement

Rwandan importers and freight forwarders have welcomed the formalisation of a bilateral agreement between Rwanda and Tanzania, signed on Saturday, July 26, to operationalise the Tanzania Ports Authority (TPA) liaison office in Kigali.

The Kigali office is expected to significantly enhance trade efficiency by facilitating cargo clearance locally, reducing reliance on physical processing at Tanzanian ports, particularly the Port of Dar es Salaam.

The initiative is seen as a strategic move to cut logistics costs, minimise delays, and improve the overall ease of doing business between the two countries.

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According to the Ministry of Foreign Affairs and International Cooperation, the agreement revives a previous deal that had expired.

Foreign Affairs Minister Olivier Nduhungirehe said the agreement "will streamline logistics, reduce bottlenecks and enhance trade efficiency" between the two countries.

What importers, freight forwarders say

Speaking to The New Times about the significance of the agreement, Gaspard Muhawenimana, a pharmacist at Medisell Rwanda Ltd, a pharmaceutical importing company, said the arrangement will simplify the importation process by eliminating the challenges associated with traveling to the ports.

"Often, based on agreements with our suppliers, products are shipped directly, and we are required to handle clearance from the port. However, delays are common, with goods sometimes stuck for over a month, which drives up overall costs," he explained, citing issues such as long queues and bureaucratic procedures.

"Having an office here in Kigali will help reduce such delays," he added.

He also highlighted that establishing a liaison office in Kigali could help protect traders from fraudulent intermediaries.

"We sometimes rely on shipping companies to manage the process on our behalf, but not all of them operate professionally. The new liaison office provides a trusted local contact to verify information before we move forward," he noted.

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Herman Uwizeyimana, General Manager of Fisher Global Ltd, which exports between 15 and 20 containers of chili annually, said the opening of the port's liaison office in Kigali will help address several persistent challenges, including dealing with unreliable agents.

"We once worked with agents who failed to provide accurate information. As a result, our chili shipment was stuck at the port for over a month. What had been first-grade quality was downgraded to second grade, and we lost $20,000 in the process," he recalled.

He added that the Kigali office will simplify processes such as updating import documentation, submitting claims, and tracking cargo status more efficiently.

David Rwigema, Chairman of the Rwanda Freight Forwarders Association, echoed this view, noting that the liaison office will improve communication and reduce delays in port clearance, often caused by traders not receiving timely updates.

"When the deadline for clearing passes, penalties start piling up. But with a nearby office, you can explain your situation and potentially have the fines reduced. That's not always possible if you have to travel all the way to the port," he said.

John Bosco Kalisa, Vice Chair of the Rwanda Council of Small and Medium-sized Enterprises (SMEs), also welcomed the development, saying the Kigali office enables remote and efficient resolution of port-related challenges.

"Trade between Rwanda and Tanzania has grown steadily over the last five years, and this development can only accelerate that momentum," he noted.

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