Uganda and Tanzania have agreed to eliminate all outstanding non-tariff barriers in an effort to rebalance a trade relationship currently weighed down by a Shs9 trillion ($2.4 billion) gap.
The decision emerged from the fifth session of the Joint Permanent Commission where both countries agreed to move beyond diplomatic discussions and focus on the technical removal of bottlenecks affecting the flow of key commodities.
The urgency follows 2025 trade data showing Tanzania exported goods worth Shs10 trillion ($2.7 billion) to Uganda while importing only Shs1.1 trillion ($300 million) in return. Negotiators are now working to resolve disputes surrounding import charges on products such as sugar, milk, steel and electric poles.
Beyond commodity trade, the commission is also seeking to harmonize the use of national identity cards to ease the cross-border movement of labor between the two countries.
The meeting also reviewed progress on several bilateral and regional projects, including the East African Crude Oil Pipeline (EACOP) and various energy exchange initiatives. A joint communiqué dated March 13, 2026, signed by Uganda’s Minister of State for Foreign Affairs John Mulimba and Tanzania’s Foreign Minister Mahmoud Thabit Kombo, reaffirmed both countries’ commitment to building more integrated economies.
Mulimba described the session as a shift from political commitments to concrete economic action.
“The time for action is now,” Mulimba said, adding that citizens expect tangible outcomes from the cooperation between the two nations.
He noted that while achievements in defense cooperation and regional integration remain important, the immediate priority lies in ensuring smoother and more efficient trade.
Kombo said the discussions reflected a wide-ranging agenda covering diplomacy, immigration, health and education.
Energy infrastructure continues to dominate the bilateral agenda. Vincent Waiswa Bagiire, the permanent secretary at Uganda’s Ministry of Foreign Affairs, described the Shs18.7 trillion ($5 billion) EACOP project as a cornerstone of the partnership, noting that construction is now 79 percent complete. Technical teams have been tasked with resolving remaining border demarcation issues to meet the July technical start-up and October 2026 export targets.
The partnership is also expanding into new infrastructure corridors, including plans for a natural gas pipeline from Tanzania to Uganda and a refined petroleum products pipeline connecting Uganda to the port of Tanga.
Ambassador Richard Kabonero, Uganda’s head of regional cooperation, urged delegates to concentrate on removing practical barriers that hinder trade. Uganda’s High Commissioner to Tanzania, Fred Mwesigye, also stressed that continued engagement through such commissions remains essential to narrowing the trade deficit.
Connectivity across Lake Victoria has also received a boost with the commissioning of the MV New Mwanza, Africa’s largest freshwater vessel, which is expected to cut transit times and reduce transport costs across the lake.
The commission further highlighted infrastructure milestones such as the 24-hour operationalization of the Mutukula One Stop Border Post, the harmonization of road user charges at Shs37,000 ($10) per 100 kilometers, and the commissioning of the 14-megawatt Kikagati–Murongo Hydropower Project.
Uganda and Tanzania also formalized a framework for the Isaka–Lusahunga–Murongo Standard Gauge Railway and agreed to establish a joint secretariat responsible for overseeing pipeline security. Uganda will host the sixth session of the commission in 2028.
