Kenya and Tanzania Eye Unified Commercial System to Fuel Economic Growth
DAR ES SALAAM, Tanzania – In a significant move to bolster regional economic integration, Rostam Azizi, Chairman of Taifa Group and a prominent Tanzanian investor, has called for the establishment of a unified commercial system between Kenya and Tanzania. This initiative aims to accelerate investment, mobilize capital, and unlock existing trade opportunities between the two East African nations.
Azizi made the call during the Tanzania–Kenya Business Forum held on May 4th in Dar es Salaam, an event held alongside a state visit by Kenyan President William Ruto. He urged business communities in both countries to prioritize economic integration to foster trade and attract substantial investments.
“We should now emphasize public-private partnerships (PPP) to build a unified commercial system that will pave the way for attracting large-scale investments between Kenya and Tanzania,” Azizi stated.
Private Sector’s Crucial Role
Azizi highlighted the pivotal role of the private sector in driving economic growth, emphasizing its ability to mobilize capital, create new market opportunities, and strengthen manufacturing capabilities. He stressed the need for deeper and more deliberate economic integration between the two countries.
“Let us harmonize the private sectors of our two countries through joint projects, and unlock potential opportunities for mutual benefit and expand access to global markets,” he added.
A Market of 240 Million – Untapped Potential
Looking ahead, Azizi pointed to the immense potential of a combined market of 240 million people, largely young and dynamic, with significant consumption power and long-term growth potential. Projections estimate Tanzania’s economy will reach a trillion-dollar valuation by 2050, while Kenya is expected to reach approximately $800 billion.
“These projections are not automatic. They are dependent on how we choose to work,” he cautioned.
Taifa Gas: A Model for Regional Collaboration
Azizi also highlighted Taifa Group’s contributions to regional infrastructure, announcing the upcoming opening of a large gas terminal in Mombasa. This terminal, set to be the largest on the African continent from Cape to Cairo, exemplifies the potential for cross-border collaboration. The group also operates terminals in Dar es Salaam and Zanzibar, serving multiple countries including Somalia, South Sudan, Uganda, Rwanda, Burundi, Zambia, Congo, Malawi, and Mozambique.
Renewed Economic Ties and $500 Million in Agreements
The forum and President Ruto’s state visit signaled a renewed commitment to strengthening economic ties between Kenya and Tanzania. Agreements worth approximately $500 million are expected to emerge from the Tanzania–Kenya Business Forum 2026, focusing on key sectors like energy, transport, ICT, and agriculture. Over 200 business-to-business meetings were scheduled to facilitate private sector collaboration.
Strong Trade Relationship – Challenges and Opportunities
Kenya and Tanzania share a robust trade relationship, with Kenya being one of Tanzania’s largest trading partners. Trade between the two countries has grown steadily, reaching billions of dollars annually, driven by infrastructure improvements and the implementation of one-stop border posts.
While challenges such as trade disputes and regulatory differences persist, ongoing dialogue within the East African Community (EAC) framework aims to address these issues and strengthen economic cooperation.
Recent Trade Figures
In 2024, Kenya’s exports to Tanzania reached Sh67.20 billion, while imports stood at Sh58.72 billion, resulting in a trade surplus of Sh8.48 billion. Bilateral trade has already surpassed $1 billion, solidifying the strategic importance of Kenya and Tanzania as key drivers of East Africa’s economic landscape.
Taifa Group’s Support for Economic Integration
Taifa Group served as the main sponsor of the Tanzania and Kenya business forum, providing a platform for business leaders to discuss the role of the private sector in fostering trade and economic integration.
