Tanzania and Rwanda have taken bold steps toward deepening their economic partnership, with a new wave of bilateral agreements aimed at enhancing transport, trade, and regional integration. The deals, finalized during the 16th Joint Permanent Commission (JPC) meeting held in Kigali, underscore the increasing importance of intra-African cooperation in driving growth and competitiveness for businesses across the continent.

Strategic Transport Commitments to Unlock Trade Potential

Key among the agreements is a renewed commitment to bolstering air connectivity and fast-tracking the development of the Standard Gauge Railway (SGR) between the two countries. These infrastructure projects are poised to significantly reduce transportation costs and delays, offering African businesses, particularly in landlocked Rwanda, greater access to regional and global markets.

With over 70% of Rwanda’s international trade currently passing through Tanzania’s Dar es Salaam port, the establishment of a Tanzanian liaison office in Kigali is expected to streamline port services and logistics for Rwandan importers and exporters. This will not only reduce bureaucratic red tape but also foster smoother cross-border transactions, a critical factor for supply chain efficiency and trade facilitation.

The aviation sector is also seeing renewed energy. RwandAir’s daily flights between the two countries and the anticipated resumption of Air Tanzania’s passenger and cargo services to Kigali promise to expand air freight capacity. This move is particularly significant for businesses in agriculture, manufacturing, and e-commerce that rely on quick and reliable shipping channels.

Boosting Regional Integration Through Infrastructure

The proposed Standard Gauge Railway linking Rwanda to Tanzania via the Dar es Salaam port could be a game-changer for East African trade. The railway is under feasibility review, with route planning and technical assessments already underway at ministerial levels in Tanzania.

For African enterprises, particularly those involved in cross-border trade, logistics, and bulk transport, the SGR could lower operational costs, improve delivery timelines, and increase competitiveness. The improved infrastructure is likely to stimulate industrial growth and attract regional investments, especially in special economic zones and inland logistics hubs.

Kiswahili Promotion as a Catalyst for Business and Cultural Integration

The agreements also emphasize linguistic and cultural diplomacy, with Tanzania pledging to support Rwanda in expanding Kiswahili education by providing books and trained teachers. As Kiswahili continues to grow now spoken by over 200 million people across the continent, according to UNESCO its adoption is increasingly seen as a unifying tool for business, communication, and policy harmonization in East and Central Africa.

With Rwanda recognizing Kiswahili as one of its official languages, businesses operating in the region are better positioned to tap into a shared linguistic market, making marketing, customer engagement, and workforce mobility more seamless.

Implications for African Businesses

The outcomes of the 16th JPC have far-reaching implications for businesses not only in Rwanda and Tanzania but also across the African continent. The agreements represent a model of bilateral cooperation that supports the objectives of the African Continental Free Trade Area (AfCFTA), particularly in reducing non-tariff barriers, improving infrastructure, and facilitating trade and mobility.

Key sectors poised to benefit include:

• Logistics and Supply Chain Management

• Tourism and Aviation

• Agriculture and Agri-processing

• ICT and Digital Trade

• Manufacturing and Export-Oriented Industries

The commitment to expand cooperation in energy, health, security, and investment also creates an enabling environment for public-private partnerships (PPPs) and foreign direct investment (FDI), reinforcing the region’s role as a hub for sustainable growth and development.

As African nations continue to leverage regional partnerships, initiatives like the Rwanda-Tanzania JPC will be critical in building a more integrated, resilient, and prosperous African business landscape.