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Rwanda’s $567mn trade with Tanzania hit by post-election chaos

Truck with goods across border. Photo by Taslim Khan @ Unsplash
  • Violence disrupts $567mn annual Rwandan imports through Tanzania
  • Kigali faces costly re-routing as trucks, goods destroyed at port

 

KIGALI, RWANDA – Rwanda’s vital import supply chain has been paralysed after post-election violence erupted in neighbouring Tanzania, leaving goods worth millions of dollars stranded at the Port of Dar es Salaam.

Rwandan importers have halted cargo movements and ordered truck drivers to park at the port following reports that several Rwandan trucks and their cargo were destroyed amid unrest sweeping across Tanzania.

The clashes followed a disputed general election marred by allegations of widespread vote rigging and the arrest of opposition leaders seen as credible contenders. The Tanzanian government responded with an internet shutdown and closure of petrol stations, causing fuel shortages and delaying the transport of petroleum products.

Economic impact on Rwanda and the region

Tanzania is a crucial trade partner for Rwanda, serving as its second-largest import source within the region. In 2022, Rwanda’s imports from Tanzania were valued at more than $567 million, dominated by petroleum products, cement, construction materials, and agricultural goods such as cereals and rice.

More than 80% of Rwanda’s cargo imports historically passed through the Port of Dar es Salaam via the Central Corridor, supported by joint infrastructure projects such as the Rusumo One-Stop Border Post. Kigali has long preferred the Dar route to Mombasa, Kenya, for its shorter distance — but the current unrest has forced businesses to consider expensive re-routing through Uganda.

Economist Teddy Kaberuka warned that the crisis threatens not only Rwanda’s economy but the broader East African region.

“Post-election violence in Tanzania affecting cross-border trade for Rwanda actually goes beyond Rwanda,” Kaberuka said. “It affects the entire East African region because Tanzania trades with Kenya, Uganda, Burundi, Rwanda and the DRC – so instability there will disrupt a lot of things.”

Trade and human mobility at risk

Kaberuka said the unrest could also restrict the movement of people and reduce the supply of agricultural produce.

“It will affect transport of people going to or from Tanzania and commodities, since Tanzania is one of the biggest exporters of agricultural produce – like onions and fresh fruits – to the region,” he added. “The violence will definitely affect the supply of such produce.”

With Dar es Salaam paralysed, Rwandan traders now face rising costs and logistical hurdles as they weigh whether to risk the troubled Tanzanian route or divert cargo through Kenya’s Mombasa port – a longer, pricier alternative.

The turmoil underscores how quickly political instability in one East African nation can ripple across borders, threatening trade flows in one of Africa’s fastest-growing economic blocs.

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