Rwanda and Tanzania have signed an agreement that will allow the former to route its petroleum imports through Dar es Salaam port.
The move would enable landlocked Rwanda to counter the escalating fuel shortage caused by the events in Kenya.
Kenya recently went into turmoil following the disputed December 27 presidential elections that were won controversially by Mr. Kibaki.This brought about serious disruptions in the fuel supply to Uganda, Rwanda and Eastern Democratic Republic of Congo.
The deal was sealed after three days meeting between Rwanda’s minister for industry, trade, investments, tourism and cooperatives, Protaris Mitali and his Tanzanian counterpart, Basil Mramba in Dar es Salaam last week.
A source that has seen the copy said that, both countries made the committement to ease the transportation of petroleum products through Dar es sallam, including relaxation of transit charges.
Speaking at the signing ceremony in Dar es Salaam, Mramba was quoted by the media as saying that his country has accepted to provide Rwanda with a route for petroleum products.” The port authority will also ensure that goods to Kigali are not delayed”, Mitali who led a seven man Rwandan delegation to the talks said.
He noted that the Kenyan crisis had created a window for the two sister countries to fully use Dar es salaam port as a permanent alternative link to the sea.
“Tanzania will facilitate change of destination for petroleum products when ever necessary”, reads part of the memorandum of understanding signed by both parties.
Seeking to address the current fuel shortages in the short term, Tanzania is said to have agreed on the re-exportation of duty paid petroleum products on credit arrangement.
This system, both states argued, can be used for further or subsequent imports by oil export companies in lieu of tax refund.
Rwanda’s petroleum imports are to be cleared at the kurasini oil jetty in Dar es salaam.
“We have reached a landmark agreement not only on easy importation of petroleum products through Tanzanian, but also on numerous issues that would enhance trade between us”, the Rwandan minister said.
A Rwandan official who declined to be named said that Tanzania informed Kigali officials of the availability of a 100,000-ton petroleum storage facility at an oil and gas refinery at Dar es Salaam port. They immediately offered Rwanda storage facilities of about 45000 tons of petroleum reserves. Rwanda however, was not keen to have its reserves outside the country.
FUEL RATIONING;
With the post election violence in Kenya not abating, Rwanda recently introduced fuel rationing to deal with the fuel shortage.
The country’s fuel reserves according to some officials from the Department of petroleum in the ministry of trade, are running low.
However, with the signing of this agreement, there seems to be hope that Rwanda can survive the crisis.
The port of Dar es salaam has rail and road links to about six landlocked countries of Uganda, Rwanda, Zambia, Malawi and Burundi.