Capitalise on UK scheme, Tanzania businesses urged
What you need to know:
- In 2022 Tanzania’s exports to the UK were valued at Sh44 billion, while imports were only Sh3.08 trillion. In 2023, the value of exports rose slightly to Sh46 billion, while imports from the UK soared Sh4.24 trillion.
Dar es Salaam. Tanzanian exporters have been challenged to grab opportunities presented by the United Kingdom’s Developing Countries Trading Scheme (DCTS) so that the country can reduce its substantial trade deficit with the European nation.
Established in 2023, the DCTS is a trading scheme that aims to boost the UK’s trade with developing countries through offering duty-free access to the UK market.
Speaking virtually on Thursday during a seminar with traders in Dar es Salaam, Trade and Industry minister Ashatu Kijaji said the current level of trade between Tanzania and the UK is a one-sided relationship that favours the latter.
“For instance, in 2022 Tanzania’s exports to the UK were valued at Sh44 billion, while imports were only Sh3.08 trillion. In 2023, the value of exports rose slightly to Sh46 billion, while imports from the UK soared Sh4.24 trillion.
“This means that our sales are increasing at a much slower pace than our purchases. Concerted efforts are therefore needed to ensure that we increase exports to the UK through various channels, including DCTS,” Dr Kijaji said.
The DCTS applies to 65 countries and is considered to be more generous than the previous Generalised Scheme of Preferences (GSP).
The scheme also enables UK businesses to access thousands of products from around the globe at lower prices, thus reducing costs for UK consumers.
The UK’s High Commissioner to Tanzania, Mr David Concar, said Tanzania has products the UK needs to buy and it is time trade between the two countries was enhanced.
“It is also good that government stakeholders, the private sector and businesspeople have shown readiness to make changes,” he said.
In addition to reducing trade barriers, the DCTS is expected play a pivotal role in expanding the presence of Tanzanian products in the UK and bolstering the country’s export portfolio.
Earlier, Dr Kijaji said by facilitating the exchange of market information, the DCTS will empower Tanzanian businesses with crucial insights into consumer preferences, market trends and demand dynamics in the UK.
“The DCTS is poised to create a conducive environment for collaboration between Tanzanian and UK companies and organisations,” she said, adding that collaborative efforts are expected to drive knowledge exchange and economic development while strengthening bilateral ties.
DCTS policy advisor Sabiha Ahmed said between 2020 and 2022, Tanzania exported goods worth an average of €24m annually to the UK, making the country Africa’s tenth biggest exporter to the UK.
“Over 99 percent of this is eligible for duty-free access to the UK as top sectors for DCTS exports include vegetable products, machinery and textiles,” she said.
Tanzania Tourist Board (TTB) director general Ephraim Mafuru said the DCTS presents a unique opportunity to not only facilitate trade, but also leverage its potential to promote Tanzania’s tourism products.
“By leveraging the preferential trade agreements and reduced tariffs provided by the scheme, DCTS can enhance the competitiveness and attractiveness of Tanzania’s tourism offerings on the global stage,” he added.
Environmental health practitioner (London Local Authorities Consultancy) Petronila Mlowe said it is time Tanzanian traders, especially those dealing in food and nutrition products, familiarised themselves with the relevant laws and standards, both before and during the production process.
