Magufuli and Kabila agree on game-changing bi-lateral trade deals

President Joseph Kabila of the Democratic Republic of Congo (DRC) this week concluded his three-day state visit to Tanzania where he signed series of trade related pacts with his host President John Magufuli of Tanzania.

The agreements, which would no-doubt, change the economic fortunes of the Central Corridor neighbours, are expected to bring a win-win situation among them.

President Kabila had visited Tanzania previously in many occasions but it is in this visit, on invitation of President John Pombe Magufuli, where analysts believe will be critical for economic partnership between Tanzania and the second biggest country in Africa.

Cross-border trade between the two nations has soared from 23 billion Shillings in 2009 to 394 billion Shillings in 2016.

According to the Central Corridor Transit Transport Facilitation Agency (CCTTFA) Observatory report for 2015, DRC imported 1,194,543 tons of cargo through the Dar es Salaam Port, which represents about 10% of all imports passing through the Port.

Other imports included 62% local (Tanzania), Rwanda 7%, Burundi 3%, Uganda 1% and other non Central Corridor members 17%. Members of Central Corridor include Tanzania, Uganda, DRC, Rwanda and Burundi.

In 2015 about 25% of exports passing through Dar Port come from DRC. About 65% of exports are from Tanzania. Exports from Rwanda, Burundi and Uganda represent about 1.6% while exports from other non central corridor members are at 9.4%.

During their bi-lateral discussions the two Heads of States agreed on the following issues:

1. Tanzania has offered an extension of grace period for imports from DRC passing through the Dar es Salaam Port from 14 to 30days;

2. Tanzania will allocate dedicated Inland Container Terminals (ICDs) at Ruvu, Coast Region and Dodoma for cargo destined to DRC in an efforts to fast track cargo clearance;

3. Tanzania has pledged to fast-track the construction of the Standard Gauge Railway (SGR) to Kigoma to link with DRC through Lake Tanganyika Ports.

4. Tanzania has promised to modernize the Kigoma and Kasanga Ports on Tanzanian side to link with Kalemie, Kalundu and Moba Ports on DRC side;

5. Tanzania has reduced weighbridges for transit Trucks (including those from DRC) from 8 to 3 where by all trucks carrying transit cargo can now only weigh at   Vigwaza, Manyoni and Nyakahura;

6. Tanzania will also make sure some cargo are transported through Tazara Railways in order to fast track transportation of the DRC cargo;

7. DRC has agreed to use the Dar es Salaam Port for most of its sea borne international trade (import and export);

8. The two countries agreed to fast-track introduction of direct flights from Tanzania to DRC cities and vice-versa in an effort to easy air transport huddles in the region;

9. Tanzania and DRC have signed a Memorandum of Understanding for joint exploration of oil on Lake Tanganyika to share experiences;

10.         DRC have agreed to use the Tanga Port for exportation of its oil through the Hoima-Tanga pipeline, which will also be used by Uganda. According to President Kabila DRC will also start production of oil from Lake Albert in the near future;

11.         During their discussions President Kabila expressed his desire for DRC to Join the East African Community (EAC). President Magufuli, who is the Chairperson of the EAC, welcomed his counterpart and advised him to officially write a letter to him so that admission process to can begin;