The East African Business Council recently held a meeting in Kigali where concerns were raised about Tanzania’s introduction of levies that were making the sale of milk from Rwanda unprofitable. This move by Tanzania went against the principles of the East African Community (EAC) Common Market, causing frustration among Rwandan traders who claimed that Tanzania was charging $1 for each litre of milk, thus discouraging imports.
The issue of high charges on milk exports to Tanzania was further exacerbated by additional levies imposed by various institutions such as the Tanzania Bureau of Standards, Tanzania Foods and Drugs Authority, and the Tanzania Dairy Board. Under Tanzania’s Animal Diseases and Animal Products Movement Control Regulations, the cost of importing milk from outside the country increased significantly, with a 1,233 percent hike from Tsh150 to Tsh2,000 per litre.
Abdoul Ndarubogoye, a member of the EABC Rwanda chapter, highlighted the challenges faced by Rwandan milk exporters in accessing the Tanzanian market due to numerous Non-Tariff Barriers (NTBs). While Tanzania denied creating barriers to trade, the issue of protectionism in the dairy sector was not unique to Tanzania alone but a widespread problem within the EAC.
The trade disputes extended beyond Rwanda and Tanzania, with instances of Uganda facing challenges in exporting milk to Kenya. Despite efforts by Presidents Paul Kagame, Yoweri Museveni, and William Ruto to resolve trade disputes in the dairy sector, issues persisted due to non-implementation of directives and lack of political will.
The EAC Secretary-General, Veronicah Nduva, acknowledged the need for more frequent political engagements to address trade barriers and ensure the effective implementation of regional directives. The dairy sector in the EAC played a significant role in intra-regional trade, with Tanzania leading in milk production and exports followed by Kenya.
Challenges in enforcing rules of origin for milk powder led to trade disputes between Kenya and Uganda, affecting the free circulation of dairy products within the region. Despite efforts to resolve these issues, trade rivalry among EAC member states continued, with regulatory agencies facing criticism for delays in granting permits for milk imports.
The EAC Secretariat supported engagements among partner states to assess production capacity and confirm the origin of products, aiming to facilitate smoother trade relations within the region. Uganda’s concerns about access to the Kenyan market for agricultural products further highlighted the need for enhanced cooperation and compliance with regional trade protocols.
While efforts were being made to address trade disputes and promote intra-regional trade in dairy products, challenges persisted due to slow implementation of directives and regulatory hurdles. The focus on seeking alternative markets outside East Africa underscored the need for sustained efforts to enhance trade relations and remove barriers hindering the growth of the dairy sector in the region.
