Negotiations between Tanzania’s Finance Minister, Dr. William Mgimwa and his Rwandese counterpart, Claver Gatete have finally yielded fruit after the duo came to a consensus on how much to charge cargo trucks entering either of the countries.
A few days ago Rwanda decided to increase road toll fees on Tanzanian trucks to strike a balance in competition, since the Tanzanian authorities have been charging more than what Rwanda does.
Rwanda move on the increase toll levied on Tanzanian registered trucks entering Rwanda, from the previous charge of $152 to the new $500 tag, as it is in the case of Rwandan trucks entering in Tanzania.
traders in Kigali reacted to the issue saying that Tanzania was introducing new trade barriers and this would affect the use trade corridor between the two count immediately doubted the Ministers statements saying that instead.
This time around, Dr. Mgimwa told media that the government had lowered the rate to $152 from the previous $500 per truck. “We finally realized that if we stuck to our guns, Tanzania was likely to suffer because our colleagues have fewer vehicles entering our country compared to our trucks headed for Rwanda.” he explained.
The Rwanda Revenue Authority (RRA) commissioner general, Mr Ben Kagarama, said that the new development, of which he was informed of, has resulted to Rwanda having to cancel the new rates that came into effect on September 1.
As a land locked country, Rwanda purely depends on Tanzania’s border for trade links. There are 8 weighbridges between Dar and Rusumo border, which operates for 16 hours compared to Malaba/Busia and Katuna that work 24 hours. About 60 to 70% of exports and imports to Rwanda are transported through the central corridor route which is about 500 km shorter as compared to the Mombasa-Kampala route.