President Suluhu Hassan embarks on 2-day state visit to Rwanda

Tanzania's President Samia Suluhu Hassan recently embarked on a two-day state visit to Rwanda, with the aim of enhancing the already strong ties between the two neighboring countries. The visit, the first official state visit since President Suluhu Hassan assumed office a few months ago, is part of her efforts to bolster political relationships and economic diplomacy with neighboring nations. During an interview on CNBC Africa, Salum Awadh, CEO of SSC Capital, shed light on what to expect from this significant visit. One of the key objectives of President Suluhu Hassan's visit to Rwanda is to strengthen political ties, a crucial aspect of the diplomatic relationship between the two countries. Additionally, there is a focus on enhancing economic cooperation through the signing of new deals and agreements that will benefit both nations. Trade and investment between Tanzania and Rwanda have been on an upward trajectory in recent years. Rwanda relies heavily on the Port of Dar es Salaam for its imports and exports, with the volume of cargo handled at the port increasing significantly over the past few years. In 2020 alone, Rwanda imported around 1.2 million metric tons of goods through the port, marking a substantial boost for Rwanda's economy. Moreover, bilateral trade between Tanzania and Rwanda has been flourishing, with Tanzania exporting goods worth over $240 million to Rwanda in 2019. While Rwanda still faces a trade deficit with Tanzania, the relationship between the two countries remains strong, with room for further growth and collaboration. The historical ties between Rwanda and Tanzania date back to previous administrations, with efforts made to streamline relations and improve cooperation. President Suluhu Hassan's visit builds on the foundations laid by past leaders, with a focus on initiatives like the construction of the Standard Gauge Railway (SGR) linking the two countries. The SGR project, agreed upon in 2018, continues to be a priority for both nations. With an estimated investment of $2.3 billion, the project aims to facilitate smoother transport of goods between Tanzania and Rwanda, opening up new markets and boosting trade opportunities. The private sector in both Tanzania and Rwanda stands to benefit greatly from enhanced trade relations and the completion of projects like the SGR. Foreign businesses investing in Tanzania have highlighted some regulatory challenges, but the prospect of improved infrastructure and connectivity bodes well for the business community. President Suluhu Hassan's proactive approach to strengthening regional ties within the East African Community (EAC) signals untapped potential for economic growth and collaboration. By leveraging existing agreements and focusing on economic diplomacy, Tanzania and Rwanda can harness the vast opportunities within the EAC and beyond. As President Suluhu Hassan continues to engage with regional partners and forge new relationships, the visit to Rwanda serves as a stepping stone towards deeper cooperation and shared prosperity. The commitment to building strong political and economic alliances is poised to yield mutual benefits for both countries and pave the way for a more interconnected and prosperous East Africa.