Home » Rwanda-Tanzania Trade Continues to Drop, Now Down Over 40%

Rwanda-Tanzania Trade Continues to Drop, Now Down Over 40%

by KT Press Staff Writer

This is the Rusumo border, Rwanda-Tanzania link

KIGALI – Rwanda’s imports from Tanzania have plummeted by over 40 percent year-on-year, according to the latest official trade data, cementing a strategic shift away from its southern neighbor in favor of Kenyan trade routes and direct imports from Asia.

The recently released Formal External Trade Report for September 2025 by the National Institute of Statistics of Rwanda (NISR) shows that the value of goods imported from Tanzania fell to US$52.91 million, a sharp decline from the US$92.64 million recorded in September 2024. This represents a dramatic 42.9% decrease, accelerating a trend first identified over a year ago.

This decline confirms a major realignment in Rwanda’s trade policy. As reported by KT Press in December 2024, Rwanda had already begun a surprising shift, with Kenya overtaking Tanzania as the country’s second-largest source of imports. The latest data shows this preference has solidified.

READ MORE – RWANDA NOW PREFERS TO IMPORT FROM KENYA, NOT TANZANIA 

The drop has caused Tanzania to slip to third place among Rwanda’s import sources, now trailing behind both China and India. Tanzania’s share of Rwanda’s total import market has shrunk from 16.0% a year ago to just 10.8%.

The shift signals a reduced flow of key commodities that have traditionally moved north through the Central Corridor.

While a detailed country-level breakdown is not provided, Tanzania has historically been a primary source for essential goods like petroleum products, cereals (including rice and maize), and raw construction materials such as cement, sand, and gravel.

The shift, initially driven by strengthened Rwanda-Kenya ties and efforts to reduce trade barriers, appears to be a lasting one.

While the Northern Corridor through Kenya has gained prominence, the data also reveals that Rwanda is increasingly sourcing goods directly from international markets.

As imports from Tanzania fell, purchases from India surged by 73.2% to US$56.49 million, and imports from China grew by 15.8% to US$113.65 million.

The declining trade with Tanzania is further complicated by persistent trade tensions. The December 2024 report highlighted that Tanzania had imposed Non-Tariff Barriers (NTBs) on Rwandan dairy exports, disrupting a historically vital trade relationship. These factors have collectively made the Tanzanian route less attractive for Rwandan traders.

This isn’t a temporary blip but a structural change in Rwanda’s trade logistics. The combination of diplomatic warmth with Kenya, friction with Tanzania, and the pursuit of cost-effective sourcing from Asia has led to a fundamental rerouting of the country’s supply chains for critical items like fuel and construction materials.

The Central Corridor, which links Rwanda to the port of Dar es Salaam, has traditionally been a vital artery for these bulk commodities. The sustained decline in imports through this route signals a significant recalibration of regional economic partnerships, with long-term implications for the East African Community’s trade landscape.

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1 comment

Projestus November 9, 2025 - 9:16 am

One would always doubt why the sense of East Africa common market is totally failing to grip 🤔. Our changing political will indicates The EAC is at a threat of loosing social-economic identity, hence the decline.

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