Tanzania is seeking to use its historic relations with the Democratic Republic of Congo to advance the economic partnership, following DRC President Joseph Kabila’s state visit, which was marked by the signing of a series of trade pacts between the two countries as trade volumes reached Tsh393.6 billion ($177 million) last year.

President Kabila’s three-day visit concluded with the assurance that eastern DRC, 50 per cent of whose transit cargo goes through the Dar es Salaam port, would continue using the port even with the introduction of VAT on transit goods.

Transit trade accounts for as much as 50 per cent of exports and 32 per cent of imports, making the Dar es Salaam port the second most important gateway for regional trade in East Africa after Mombasa, according to the World Bank.

The two governments signed a memorandum of understanding to conduct joint oil exploration on Lake Tanganyika after years of disagreements over the demarcations of the lake put on hold activities at two blocks.

READ: Tanzania, Congo to hold joint search for oil and gas

The two leaders agreed that Tanzania would fast-track the construction of the standard gauge railway to Kigoma to link DRC with the Dar es Salaam port. The plan will go hand in hand with modernisation of the Kigoma and Kasanga Ports on the Tanzanian side to link with Kalemie, Kalundu and Moba ports on the DRC side.

Oil link

DRC will also join Uganda to use the $4 billion oil pipeline from Kabale in Uganda to Tanga to transport crude oil from western Lake Albert, where the DRC government says it has discovered oil.

READ: Dar and Kinshasa begin talks on oil pipeline project

Tanzania said it would allocate dedicated inland container terminals at Ruvu, Coast Region and Dodoma for cargo destined to DRC.

Currently, 25 per cent of exports through Dar port come from the DRC.

President Kabila said the increased copper production — at 1.2 million tonnes— meant that the DRC would provide more business to the Dar es Salaam port. He further said he would like to see the direct flight from Dar es Salaam to Lubumbashi reintroduced.

President Kabila said the two countries had cemented their trade, security and economic ties, adding that it was the first time since he became president that he had visited Tanzania to discuss trade.

“All my previous visits to Tanzania have focused on security,” President Kabila said.

President Magufuli said that DRC transit cargo through the port of Dar es Salaam was growing at the rate of 10.6 per cent and trade volume between the two countries has increased from Tsh23 billion in 2009 to Tsh396 billion in 2015.

“The One Stop Centre that President Kabila has inaugurated will cement trade relations between Tanzania and DRC. We request President Kabila to help us woo DRC business people so they could use the Dar es Salaam port for their transit business,” said President Magufuli.