Tanzania can unlock $5.5 billion in unrealized export potential through strategic efforts and collaboration between the government and private sector, according to the International Trade Centre.
Tanzania has the potential to significantly boost its exports by tapping into an estimated USD 5.5 billion in unrealized export opportunities. This potential spans various markets, including South Asia, the Middle East, the European Union, and more. To achieve this, strategic efforts and enhanced collaboration between the government and the private sector are crucial.
Current Export Landscape
According to the International Trade Centre (ITC), Tanzania’s export value reached USD 11.9 billion in 2022. The country’s agricultural products, mineral resources, and manufactured goods are in high demand globally. Despite this, challenges such as insufficient infrastructure and a lack of information for the private sector have hindered Tanzania from fully capitalizing on these opportunities.
Strategic Government Initiatives
The Tanzanian government has recognized these challenges and is taking steps to address them. Ambassador John Ulanga, the Director of International Trade and Economic Diplomacy at the Ministry of Foreign Affairs and East African Cooperation, highlighted the government’s efforts in promoting exports through various initiatives. He stated, “The government has done a lot, for example, in the tourism and transport sector. It has made great efforts to promote Tanzania’s attractions through the Royal Tour Film, but even after that, it has continued to promote through various programs.”
Additionally, the National Export Strategy (NES) for 2023/2024-2032/2033 aims to create an enabling environment for exports, targeting an increase in export value to USD 23 billion by 2027. This strategy prioritizes sectors such as agriculture, minerals, and manufacturing, focusing on market diversification and enhancing product quality.
Collaboration Between Government and Private Sector
A key aspect of unlocking Tanzania’s export potential lies in the collaboration between the government and the private sector. Ms. Santina Benson, CEO Roundtable of Tanzania (CEOrt) Executive Director, emphasized this point: “We discussed how both the private sector and the government can develop strategies to unlock the potential in economic diplomacy because several good initiatives are already underway, but there is more we can do.”
This collaborative approach involves addressing regulatory barriers, improving infrastructure, and ensuring that local industries can produce goods that meet international standards. The government’s role is to implement policies that facilitate business operations, while the private sector drives economic growth by seeking new market opportunities.
Addressing Industry Challenges
In a recent interview with The Citizen, Confederation of Tanzania Industries (CTI) Director of Policy and Advocacy, Mr. Akida Mnyenyelwa, noted that local industries face challenges such as competition and production costs. He stated, “We are grateful that the government has started to reduce production costs by improving road infrastructure and increasing electricity availability. However, industries must also invest in modern technologies because you cannot compete internationally while relying on outdated technologies.”
To overcome these challenges, it is essential for industries to adopt modern technologies that enhance production efficiency and reduce costs. This will enable Tanzanian products to be more competitive in the global market.
By addressing infrastructural and informational barriers, fostering government-private sector collaboration, and investing in modern technologies, Tanzania can unlock its vast export potential. These efforts will not only boost the country’s economy but also strengthen its position in the global market.
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