Tanzania’s regional exports surge due to opportunities presented by AfCFTA.
Tanzania has seen a notable shift in its trade dynamics, with regional exports reaching $2.6 billion annually, while total imports stand at $5.1 billion, according to the East African Business Council (EABC). International Trade Centre data indicates that the country’s total imports of goods from other parts of the continent stood at $1.5bn by 2023 figures, indicating a favourable balance of trade.
This emerging trend was highlighted during a recent event aimed at enhancing the understanding of the African Continental Free Trade Area (AfCFTA) among small and medium-sized enterprises (SMEs).
AfCFTA Broadens the Market
Zephania Shaidi, EABC’s business development manager, presented this data at the conclusion of a training session for over 50 industry leaders from sectors such as manufacturing, agro-processing, creative arts, and transport. The event emphasized the importance of AfCFTA in broadening the market reach for Tanzanian businesses.
According to the International Trade Centre, Tanzania’s imports from other African nations totaled $1.5 billion by 2023, resulting in a favorable balance of trade. Shaidi urged Tanzanian enterprises to leverage the opportunities under AfCFTA, while Raphael Maganga, CEO of the Tanzania Private Sector Foundation (TPSF), underscored the pact’s potential to unlock continental trade opportunities.
With a combined GDP of $3.4 trillion and a consumer base of 1.3 billion people, AfCFTA represents a significant opportunity for African nations to enhance their global competitiveness. However, Clement Kamendu, Chairman of the Tanzania Shippers Council (TSC), pointed out the need to reduce transport and logistics costs to make intra-African trade more competitive. Currently, intra-African trade accounts for only 16% of the continent’s total trade volume, compared to 57% in Asia and 68% in Europe.
Participation in Global Value Chains Remains Limited
A consensus among experts suggests that Africa’s participation in global value chains remains limited, mainly driven by primary production and extractive industries. The continent needs to focus on value addition, industrialization, and improved infrastructure, which AfCFTA is designed to address.
In collaboration with the EU’s ‘Team Europe’ technical assistance facility, the EABC organized this training to equip SMEs with knowledge on key AfCFTA initiatives, including the guided trade initiative, the AfCFTA adjustment fund, and value chain integration. The goal is to strengthen the capacity of SMEs, enabling them to compete in the expansive continental market.
The training sessions are part of a broader initiative to help Tanzanian SMEs improve their operational efficiency, financial performance, product quality, and sustainability in line with AfCFTA protocols. Focus areas include agriculture, pharmaceuticals, automotive, transport, logistics, textiles, and fashion. These sectors are critical for driving intra-African trade, creating jobs, and enhancing the continent’s global competitiveness.
This ongoing effort will play a pivotal role in empowering Tanzanian businesses to expand their presence across the continent, ultimately boosting regional trade and economic growth.
For more regional trade news, like this story of Tanzania’s regional exports surging, visit our dedicated archives.