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Tanzania, Uganda strike deal on sugar export

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PML 05 MAR 2020

Ugandan officials led by Trade minister Amelia Kyambade and  Tanzania government officials in a group photo after touring several sugar factories in Uganda recently (PHOTO/Courtesy).

KAMPALA – The Tanzania government has said it is ready to allow Ugandan sugar imports on condition that it will only be a government-to-government arrangement.

Speaking after a two-day tour of Ugandan sugar factories on Wednesday, Mr Japheth Hasunga, the Tanzanian Minister of Agriculture, said the trading partnership will not be for private dealers.

“We are satisfied with the current rate of Uganda’s sugar production and we shall start with 30,000 metric tonnes, but that will depend on the prices, we don’t know how much the factories will charge and then we shall place another order. We shall start business as soon as possible,” Mr Hasunga said.

This comes after Tanzania locked out Ugandan sugar imports for more than a year.

The visit of the Tanzania officials came following a meeting between Presidents Yoweri Museveni and John Magufuli.

Mr Hasunga resuming trading between the two countries is in line with promoting the spirit of the East African integration. He added there will be no change in Import Duty because all the goods being produced in East Africa have a rule of origin.

Ms Amelia Kyambadde, the Uganda Minister of Trade, said the trade deal is the best for Ugandan sugar.

“The purpose of this visit by Tanzania’s Agriculture minister is to establish whether we can do business together as two countries since Uganda has been declared a sugar surplus country. This in a way is to verify whether we have the capacity to sell to them,” she said.

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