Tanzania exports more value of goods to Africa than what the country imports from the continent

Tanzania seems to have an upper hand when it comes to trading with other countries on the African Continent.

Dar has been exporting goods valued at USD 2.65 Billion to other parts of Africa according to the Ausha-based, East African Business Council.

Quoting figures from the International Trade Centre (ITC), the EABC explains that Tanzania’s total imports of goods from other parts of the continent stands at USD 1.5 billion, as per 2023 data, indicating a favourable balance of trade.

Now, in reflection to that, East African Business Council’s Membership and Business Development Manager Zephania Shaidi, encouraged Tanzanian businesses to look beyond local markets and seize continental trade opportunities under the African Continental Free Trade Area.

Shaidi was speaking during the climax of the special training for small and medium-sized enterprises (SMEs) to help them enhance their understanding of the African Continental Free Trade Area (AfCFTA). 

The event brought together over 50 private sector representatives from diverse industries, including manufacturing, agro-processing, SMEs, creative industries, transport, and government officials.

The Chief Executive Officer of the Tanzania Private Sector Foundation (TPSF), Raphael Maganga, points out that with a combined GDP of an estimated USD 3.4 trillion, the African Continental Free Trade Area pact links 1.3 billion people living in different parts of the continent.

On his part the chairperson of the Tanzania Shippers Council (TSC), Clement William Kamendu, emphasized the need for countries to work together to reduce transport and logistics costs and ensure Africa remains competitive.

Kamendu noted that it was due to such barriers, that intra-African trade accounts for only 16 percent of Africa’s total trade volume, compared to 57 percent in Asia and 68 percent in Europe.

Economic experts point out that Africa’s participation in global value chains is low and primarily driven by commodities therefore to advance up the value chain, the continent needs value addition, industrialization, improved infrastructure, and the actualization of an integrated market under the African Continental Free Trade Area (AfCFTA) agenda.

The East African Business Council (EABC), in collaboration with the Team Europe Technical Assistance Facility to Support the AfCFTA and Continental Economic Integration (EU-TAF), has trained more than 50 small and medium-sized enterprises (SMEs) in Tanzania, to enhance their understanding of the African Continental Free Trade Area (AfCFTA).

The maiden training covered key initiatives under the agreement, including the Guided Trade Initiative (GTI), the AfCFTA Adjustment Fund, and value chain integration.

According to the EABC, this initiative aims to equip SMEs with the necessary tools to access the extensive continental market of 1.3 billion consumers. Ultimately, this effort seeks to strengthen SMEs’ capacity, positioning them for greater success in a competitive regional marketplace.

The East African Business Council is reportedly committed to enhancing the capacity of the EAC private sector to trade under the AfCFTA and, through the European Union Technical Assistance Facility, will roll out similar workshops across other countries.

A statement from the council reveals that while this presents an opportunity for corporates and SME traders to export products across the continent, it is important to empower businesses with the tools and knowledge needed to access the market and compete with their counterparts.

It was stated that the AfCFTA prioritizes key value chains to drive intra-African trade and industrial growth.

These include agriculture and agri-processing, pharmaceuticals, automotive, transport and logistics, and textiles and apparel. By focusing on these sectors, the AfCFTA aims to create jobs, boost regional trade, and strengthen Africa’s global competitiveness.

The African Export-Import Bank (Afreximbank) and the AfCFTA Secretariat have already established the AfCFTA Adjustment Fund, with operations of the Fund domiciled in Rwanda. 

The Fund is expected to support countries and private entities through financing, technical assistance, grants, and mitigation and compensation funding during their transition to the AfCFTA trading regime.

The SMEs engaged in discussions on value chain analysis to improve their products and services with the goal of discovering gaps and opportunities to enhance operational efficiency, resource utilization, financial performance, profitability, product quality, and sustainable competitive advantage in light of the AfCFTA.