A dispute has emerged between Rwanda and Tanzania over trade in dairy products, with Kigali accusing Dodoma of blocking its milk exports in spite of a memorandum signed in January.

The matter came up at a roundtable of the East African Business Council CEOs with the East African Community (EAC) Secretary-General last week in Rwanda, in which the private sector pointed out number of barriers to trade.

They told Secretary-General Veronica Nduva that Tanzania keeps on introducing new non-tariff barriers (NTBs) through the numerous agencies demanding levies contrary to the EAC’s Customs Union and the Common Market requirements.

“The most important one we discussed during that roundtable meeting is on the issue of segregation especially used as a weapon on unfair competition.,” said Abdoul Ndarubogoye, president of the Long Distance Truckers Association.

“Our neighbours put a heavy levy (on milk exports) that you cannot pay. They ask you to pay a levy that is more expensive than the milk itself.”

This comes as Uganda and Kenya continue to wrangle over the blockage of Brookside Uganda milk by Nairobi.

Traders said that milk exported to Tanzania attracts numerous charges collected by different institutions, including Tanzania Bureau of Standards, Tanzania Foods and Drugs Authority and Tanzania Dairy Board.

Under Tanzania’s Animal Diseases and Animal Products Movement Control Regulations published on August 31, 2018 (Government Notice No. 476) to import a kilogramme of milk in Tanzania, Dodoma requires one to pay Tsh2,000 ($0.73), up from Tsh150 ($0.055). This 1,233 percent increase makes it difficult for Rwanda to market milk or its products to its southern neighbour.

“A lot of Rwandan milk is exported to the northern part of Tanzania, but there are too many NTBs,” Mr Ndarubogoye complained.

According to government data Tanzania’s milk production increased from 3.4 billion litres in fiscal 2021/22 to 3.6 billion in the 2022/23—a five percent increment. But the demand is 12 billion litres, necessitating importation.

Rwanda produced one billion metric tonnes of milk in 2023.

Dennis Karera, vice-chairperson of the EABC, said the new NTBs impacted intra-EAC trade and called for strengthening of trade and investment among EAC partner states.

The Kenya Dairy Board (KDB) has been accused of being selective approval of the necessary documents required to move products into the Kenyan market.

While Ugandan milk brands such as Lato and Dairy Top easily finding their way across the border, KDB has been accused of denying permits for Brookside brands. Bilateral talks are yet to resolve the matter.

Rwandan transporters also cited corruption on the East African roads.

“The way the road toll is levied is not uniform. There are unfair charges on the road toll of the trailer and its head,” Mr Ndarubogoye said. “Rwandan trucks are charged arbitrary levies, including requiring certificates on either the truck or the contents, especially those that use the Mombasa-Taita Taveta route, and the Central Corridor.”

Ms Nduva urged the private sector to promote the EAC as a unified trade bloc.

Other discussions focused on the liberalisation of air transport services, transport and logistics, manufacturing, tourism, and the movement of services and service providers.

Others were digital economy, upgrading transport networks, energy, road-user charges, discriminatory levies and charges, stays of applications, work permits, the One Tourist Visa, and the East African Payments System.