Uganda and Tanzania have agreed to scrap all remaining trade barriers to address trade imbalance between the two states.
As of March 2026, Uganda and Tanzania are actively working to eliminate non-tariff barriers to fix shs 9 trillion ($2.4 billion) trade imbalance that heavily favors Tanzania.
Tanzania’s 2025 exports to Uganda (approx. 10 trillion shillings) vastly outweighed Uganda’s exports (1.1 trillion shillings), prompting urgent talks to ease trade in products like sugar, steel, and milk.
The decision was made during the fifth session of the Joint Permanent Commission on Friday in Dar es Salaam. Both countries said they want to move away from diplomatic formalities and focus on the technical removal of bottlenecks affecting essential goods.
The move follows trade figures from 2025 showing a significant gap, with Tanzania exporting 10 trillion shillings worth of goods to Uganda, while receiving only 1.1 trillion shillings in return. Negotiators are now working to resolve disputes over import charges on sugar, milk, steel and electric poles.
Beyond trade, there are plans to harmonise the use of national identity cards to allow workers to move more freely across the border.
The meeting also reviewed major regional projects, including the East African Crude Oil Pipeline (EACOP). A joint communique was signed by Uganda minister of state for foreign affairs John Mulimba and Tanzania foreign minister Mahmoud Thabit Kombo, reaffirming their commitment to closer economic integration.
The time for action is now, Mulimba said, describing the session as a shift from political vision to economic execution. He added that people expect to see real outcomes.
While defense and regional integration remain important, Mulimba noted that these were secondary to the immediate need for seamless commerce. Kombo added that the discussions covered a wide range of areas including health, education and immigration.
Energy remains a priority for both nations. Vincent Waiswa Bagiire, permanent secretary for Uganda’s foreign ministry, said the 18.7 trillion shilling EACOP project is now 79 percent complete. Technical teams have been told to resolve border issues ahead of an export target of October 2026.
The two countries are also planning a natural gas pipeline from Tanzania to Uganda and a petroleum products pipeline to the port of Tanga.
Transport links are also being upgraded. The countries have formalised a framework for the Isaka-Lusahunga-Murongo Standard Gauge Railway. On Lake Victoria, the commissioning of the MV New Mwanza, the largest freshwater vessel in Africa, is expected to cut travel times and costs.
Other projects highlighted include the 24-hour operation of the Mutukula border post and the 14-megawatt Kikagati-Murongo hydropower plant.
Uganda is set to host the next session of the commission in 2028.
