Soko Mkononi is an innovative project aimed at making EAC market work for people. Soko Mkononi aims to increase knowledge and skills on market access and investment opportunities for SME’s in Tanzania and Uganda. According to ITC, Uganda average exports (2013-2015) to Tanzania is approx. USD.2.3Billion with an annual growth rate of -6% per annum (2011-2015) while Tanzania average exports (2013-2015) to Uganda is approx. USD.61Million. With an annual growth rate of 15% per annum (2011-2015). Shinyekwa and Otieno (2013) notes that there is compelling evidence that Uganda’s foreign trade flows are slowly getting integrated into the EAC region and regional integration is helping to increase intra-regional trade as reduction of internal tariffs, reduction of non-tariff barriers and adoption of a common external tariff is paying off.
On the other hand, Tanzania exports to EU are declining with the increase in exports to Africa, particularly in EAC and SADC regions. It however experiences adverse trade balance on its trade with EAC and
SADC, which is principally explained by Tanzania trade with the major trading partners in EAC (Kenya) and SADC (South Africa). Tanzania Trade with other regional members is low but improving.
This calls for more efforts to enhance trade between Tanzania and Uganda. The general objective of this note is to examine Uganda – Tanzania Trade and investment potential by examining imports and exports values of products traded between Tanzania and Uganda in recent period.