Trade and investment cooperation between Tanzania and Rwanda has reached approximately 644 billion Tanzanian shillings (US$250 million equivalent), reflecting growing economic integration between the two East African neighbours, President Samia Suluhu Hassan said.
Speaking on Saturday at State House in Dar es Salaam alongside visiting Rwandan President Paul Kagame, Samia said bilateral relations had strengthened significantly, driven by expanding trade flows, investment projects and regional infrastructure cooperation.
The Rwandan leader was in Tanzania for a one-day working visit focused on economic ties and regional integration under the East African Community framework.
Samia said that since 1967, Tanzania’s investment authority has registered 42 Rwandan-funded projects worth about US$325.5 million, creating more than 2,200 jobs for Tanzanians.
She described the figures as evidence of “significant contribution” to Tanzania’s economy, while noting that Tanzanian firms are also increasingly active in Rwanda.
More Read
Among the Tanzanian companies operating in Rwanda are Bakhresa Group, Dodoma Mattresses, Discount Centre and Jambo Plastics, reflecting a two-way flow of business between the countries.
Both leaders stressed the importance of removing remaining trade barriers to fully unlock opportunities under the East African Community (EAC) common market and the African Continental Free Trade Area.
Officials said simplifying customs procedures and improving transport and energy infrastructure would be key to boosting intra-regional trade.
A major area of cooperation discussed during the talks was energy, particularly a power exchange agreement between Tanzania’s national utility TANESCO and Rwanda Energy Group.
The arrangement is intended to facilitate electricity trade between the two countries, supporting industrial growth and improving energy reliability in the region.
Samia also highlighted progress on the Rusumo Hydroelectric Power Project, a regional facility jointly developed by Tanzania, Rwanda and Burundi.
The project is expected to increase electricity supply across the three countries and support broader regional development efforts.
Energy cooperation has become a central pillar of East African integration, with governments seeking to reduce power shortages and lower the cost of electricity for households and industry.
Analysts say improved cross-border power trade could help stabilise supply in landlocked economies like Rwanda, while enabling Tanzania to monetise surplus generation capacity.
Beyond energy, both governments are also focusing on improving transport corridors and logistics networks to facilitate faster movement of goods across borders.
President Samia said the two countries remain committed to deepening cooperation in line with regional and continental integration goals.
She emphasised that economic diplomacy will continue to play a central role in Tanzania’s foreign policy, particularly within neighbouring markets where trade and investment flows are expanding.
President Kagame’s visit, though brief, underscored the strategic importance both governments place on bilateral relations, particularly at a time when African economies are seeking to boost intra-regional trade.
As East Africa continues to integrate economically, officials say partnerships such as the Tanzania-Rwanda corridor will be crucial in driving growth, attracting investment and strengthening energy security across the region.
