PSFU’s Kagingo Rallies Private Sector at Uganda-Tanzania Trade Mission to Deepen Regional Integration

Uganda and Tanzania have recommitted to deepening bilateral trade and investment cooperation through the 2025 Uganda-Tanzania Trade Mission, held at the Four Points by Sheraton in Kampala under the theme: “Shaping Uganda’s Future Entrepreneurs and Business Leaders.”

Delivering remarks at the high-level forum, Ms Sarah Kagingo, Vice Chairperson of the Board of Directors at the Private Sector Foundation Uganda (PSFU), highlighted the growing economic interdependence between the two East African nations and called on businesses to take full advantage of the available opportunities.

“This Trade Mission is a pivotal opportunity to strengthen trade and investment linkages, building on our shared history and recent bilateral engagements,” she said on Tuesday, citing Uganda’s growing imports from Tanzania, which stood at $1.35 billion in 2023—marking a 285% increase from 2022.

Kagingo also spoke of PSFU’s role in promoting regional trade, particularly through B2B matchmaking, policy advocacy, and business development services. She lauded previous achievements from bilateral summits, including reduced road charges, increased sugar supply, and lifted restrictions on Ugandan dairy, eggs, and maize exports to Tanzania.

The trade mission targets key sectors including; agro-processing, steel and construction materials, dairy, pharmaceuticals, and fast-moving consumer goods (FMCG). Uganda’s agriculture sector alone employs 68% of the population and contributes 24% to GDP, while Tanzania’s agro-processing market was valued at $13.5 billion in 2018, presenting enormous opportunities for value-added trade.

On the infrastructure front, Kagingo praised the East African Crude Oil Pipeline (EACOP) as a symbol of regional integration. The $5 billion project—spanning 1,443 kilometers from Hoima, Uganda, to Tanga, Tanzania—is set to unlock 1.7 billion barrels of oil while enabling local content development and enhancing digital connectivity via an integrated fibre-optic cable.

PSFU also emphasized efforts to push for harmonized standards under EAC protocols, potentially reducing non-tariff barriers by 15% and boosting trade volume by 25%, according to Fitch Solutions (2024).

In her closing remarks, Kagingo hailed the governments of Uganda and Tanzania, the respective High Commissions, and President Yoweri Museveni and President Samia Suluhu Hassan for their commitment to promoting a conducive business environment.

State Minister for Trade at the Ministry of Trade Industry and Cooperatives, Hon. Gen Wilson Mbadi

“To the private sector, I urge you to collaborate and take advantage of the many opportunities,” she said.

The event was attended by government officials, business leaders, trade experts, and representatives of the East African Business Council (EABC), setting the tone for a new era of commercial partnership between the two nations.

High Commissioner of Uganda to Tanzania, H.E. Col (Rtd) Fred Mwesigye, welcomed delegates with optimism and revealed a major leap in bilateral trade figures. “In 2024, bilateral trade reached approximately USD 2.23 billion, a sharp increase from USD 1.36 billion in 2023,” he announced. Uganda’s exports to Tanzania stood at USD 185 million, while imports from Tanzania surged to USD 2 billion.

High Commissioner of Uganda to Tanzania, H.E. Col (Rtd) Fred Mwesigye

“These numbers reflect not only the growing interdependence between our economies but also the trade imbalance that needs to be addressed,” he noted. Amb. Mwesigye commended Uganda’s Ministry of Foreign Affairs, Ministry of Trade, and Uganda Revenue Authority (URA) for their unwavering support and vital role in trade facilitation. He called on attendees to “seize the opportunity to drive our trade agenda forward and deepen economic ties between Uganda and Tanzania.”

Representing the Minister of State for Foreign Affairs in charge of Regional Cooperation, the Chief Guest, Hon. Gen. Wilson Mbasu Mbadi, echoed this message. Now serving as State Minister for Trade, Mbadi emphasized the mission’s significance in strengthening bilateral investment. He applauded Uganda’s thriving industrial base and cited ventures such as Liaoshen Industrial Park, Pearl Dairy, and Namanve Industrial Park as beacons for potential partnerships.

“These efforts are crucial in fostering a competitive and integrated regional economy,” Gen. Mbadi affirmed, also pointing to major infrastructural projects like EACOP as key to unlocking trade corridors and enhancing regional value chains.