The Red Sea crisis is badly affecting Tanzania’s exports from the agricultural sector, as the country’s shipments are being forced to circumnavigate longer routes, doubling transport time and costs.
The issue of costly detour affecting trade in Africa was among the issues being tabled in Arusha during the 28th Annual Research Workshop (ARW) organized by the non-governmental organisation which conducts research and advocacy on development issues in Tanzania (REPOA).
The Red Sea crisis has led to the disruption of international maritime trade and supply chain with Tanzania especially the country’s shipments of agricultural produce, also suffering badly, from the maritime inconvenience.
“Tanzania’s avocado exports have been suffering from the Red Sea crisis with the sector losing over USD 80 Million and counting,” pointed out the Executive Director of Tanzania Horticulture Association Jacqueline Mkindi.
Selemani Jafo, the Tanzanian Minister of industry and trade who graced the research workshop admitted that the world is currently grappling with a level of conflict and insecurity.
“As we all know that the world is grappling with a level of conflict and insecurity, as well as effects of climate change, unemployment, and global inflation that seems to exceed our will and capabilities: with drought and floods than ever before, and new wars between Russia and Ukraine, and the Middle East crisis,” he said.
“I strongly believe REPOA and its partners have a responsibility to find the best solutions to the existing country, regional, and global challenges,” said Jafo.
The Minister however said Tanzania has over the past 15 years enjoyed sustained GDP growth rate of between 6 and 7 percent which led to the World Bank reclassification of Tanzania from a low income to low-middle income country, with exception for the year 2020 and 2023 when it declined to 4.5 percent and 5.1 percent respectively due to impacts of the Covid Pandemic.
“Tanzania exports have increased from USD 5.7 billion in 2016 to USD 7.6 billion and 2023. The country’s exports to the Southern African Development Community (SADC) region have grown by 50 percent and by 174 percent to EAC, with a combined value of USD 2.8 billion,” the Minister maintained.
For the purpose of reducing cost of doing business, the government has decided to invest on Mega Projects Development includes; roads, airports construction, re-establishment of Airline Company by buying 15 new aeroplanes.
Tanzania is constructing Standard Gauge Railways connecting Dar es Salaam Port to neighbouring land locked countries of Burundi, Rwanda, and DRC by more than USD 12 billion.
The country is also finalizing the construction of the Nyerere hydropower project to generate 2115 MW by USD 3 billion.
Dr Donald Mmari, the REPOA Executive Director said the Research Workshop, taking place in Arusha runs under the collaboration of the Tanzanian Ministry of Industry and Trade, the East African Legislative Assembly (EALA), the East African Community Secretariat (EAC), the CRDB Bank, TradeMark Africa (TMA), Tanzania Horticultural Association (TAHA), and the Southern Agricultural Growth Corridor of Tanzania (SAGCOT).