The commodity trading landscape in Rwanda is seemingly poised for change as Kenya now ranks as the country’s second-largest imports source after China.
This is according to Rwanda’s October 2024 Formal External Trade in Goods report that was published by the National Institute of Statistics of Rwanda (NISR).
It states that Kenya obtained $121.45 million worth of imports in October 2024, which was 241.55% greater than the amount traded in September 2024.
The country’s largest source of imports is China. It’s imports in October totaled $142.08 million which is a 34.95% increase compared to last year.
Kenya has now overtaken Tanzania to become Rwanda’s preferred trading ally in Eastern Africa. Tanzania was previously regarded as Rwanda’s primary trading partner due to the geographical proximity and the role that the Dar es Salaam port plays.
Imports from Tanzania to Rwanda subsided by 39.04% to $57.38 million. The rapid increase in preference of Kenya over neighboring Tanzania is influenced by multiple factors.
Of importance, Kenya strengthened its bilateral trading ties through enhanced cooperation and reduced trade barriers. This has made Kenya more appealing. Reportedly, regional tensions seemingly have diminished Rwanda’s reliance on Tanzania as transit route.
MultiChoice talent factory Eastern Africa academy graduates class of 2024
The Rwandan government continues to actively push for diversified trade route to reduce the over-dependence on a single partner. This opens favor to the Northern Corridor through Kenya for imports.
Furthermore, Tanzania imposed Non-Tariff Barriers (NTBs) on Rwandan dairy products which could have increased the relationship strain between the two trade partners. It is alleged that Tanzania has restricted the importation of Rwandan milk citing compliance with local regulatory and quality standards.
These measures have barred Rwandan dairy products from access in Tanzania, despite Rwanda adhering to standards set by the East African Community (EAC).