Tanzania regional trade surplus widens by 56 percent

The report indicates that rising regional demand for Tanzanian food products, minerals, and manufactured goods boosted exports, resulting in a higher trade surplus in all zones except for the South Eastern Zone.

In the Lake Zone, improved performance was mainly attributed to a notable increase in exports, particularly of food products, unrefined gold, and rough diamonds.

The strong cross-border demand for these commodities enhanced export earnings and significantly contributed to overall trade growth.

The Northern Zone also displayed notable improvement, primarily due to higher exports of maize, rice, ceramics, and coal, underscoring the increasing importance of both agricultural and industrial products in regional trade.

Similarly, the Southern Highlands Zone recorded a stronger trade surplus, supported by increased exports of food items, especially maize, rice, and maize flour, emphasizing the zone’s vital role as a food supplier for neighboring markets.

However, the South Eastern Zone saw a decline in its trade surplus, largely because of reduced exports of cement, juice, maize flour, wheat flour, and livestock, which outweighed the gains made in other areas. 

Mr James Marandu, an economics lecturer at Mzumbe University, stated to The Citizen that strengthening domestic production and trade facilitation is essential for sustaining regional trade growth.

He emphasized that production should focus on areas of competitive advantage, citing avocados as a prime example of products Tanzania exports in large quantities to Kenya, and called for improved quality in domestic output.

Mr Marandu also pointed out that cross-border trade requires strict adherence to standards and quality requirements, alongside better border infrastructure and efficiency to ease the movement of goods and services.

He emphasized the importance of harmonizing trade procedures within regional blocs such as the East African Community (EAC) and the Southern African Development Community (Sadc), including the adoption of systems like the Single Window Electronic System to reduce duplication and repeated checks at border points.

“In the long run, the government should provide targeted support to small and medium-sized enterprises (SMEs) to enhance their competitiveness. SMEs play a crucial role in earning foreign exchange and thus require policy support to expand exports,” he said.

Commenting on the trend, a member of the East African Legislative Assembly (EALA) from Rwanda, Ms Clement Musangabatware informed The Citizen that key factors contributing to this growth include the ongoing reduction of non-tariff barriers, improved customs efficiency through digital platforms such as the EAC Single Customs Territory, and sustained investment in trade-enabling infrastructure, particularly ports, railways, and one-stop border posts.

She stated that policy consistency under the EAC Common Market Protocol, along with efforts to align standards and facilitate the movement of goods and services, has increased predictability for traders.

“One-stop border posts enhance business by reducing delays, cutting costs, and simplifying procedures through joint inspections and shared facilities, making cross-border trade faster, cheaper, and more reliable,” she explained.

In August, the Permanent Secretary in the ministry of Industry and Trade,Dr Hashili Abdallah, shared with The Citizen that a series of legal and policy reforms have eliminated several levies, helping to attract business activities from neighboring Sadc and EAC countries.

He also highlighted the launch of the revised 2023 trade policy, which updated outdated provisions and simplified doing business with neighboring countries. While past trade disputes had negatively impacted bilateral relations, he noted that significant progress has been made in resolving these issues.

“As you may recall, there were many trade disputes between Tanzania and Kenya, but most have now been resolved. A few issues remain, and we are actively working to address them to ensure trade proceeds without obstacles,” he said.

Dr. Abdallah added that the implementation of the trade blueprint has contributed to easing the business environment, while preparations for a second blueprint are underway.

The ministry continues to roll out strategies to strengthen regional trade, including updating policies to better reflect current economic realities.