Government creates strategy to expand regional markets, boost exports

Dar es Salaam. Tanzania is sharpening an export-led growth strategy that places agriculture, value addition and industrial parks at the centre of its ambition to dominate regional markets, the Minister for Industry and Trade, Ms Judith Kapinga has revealed.

This, she said, will be done while deliberately using industry and trade to secure jobs for millions of young people.

Speaking to journalists yesterday, Ms Kapinga, said the country’s long-term development blueprint, Dira 2050, prioritises deeper participation in regional and international markets as a pathway to sustainable growth.

“Trade data shows that the total value of exports of goods and services increased by more than 9.8 percent to about $14.72 billion in 2024 compared to the previous year,” she said.

Following reforms to the National Trade Policy in 2023, exports rose by over 14 percent to approximately $16.89 billion in 2025, reflecting a decisive shift towards export-led growth.

At the heart of this push is agriculture, still the backbone of Tanzania’s economy, now being repositioned as a modern, market-driven sector linked to processing industries.

Ms Kapinga said the policy refresh deliberately emphasised industrial and processed agricultural products to capture more value before goods reach foreign markets.

The results are already visible in manufactured exports serving the region. Tanzania’s domestic cement production reached about 10.9 million tonnes in 2024 against local demand of 8.5 million tonnes, creating a surplus of 2.4 million tonnes for export.

Key destinations include Rwanda, Malawi, Mozambique, Burundi, Uganda, the Democratic Republic of Congo (DRC) and Zambia.

Similarly, flat glass factories producing materials used in construction-have an annual capacity of 189,000 tonnes, with around 60 percent of current output exported to markets such as Madagascar, Burundi, Zambia, Rwanda, DRC and South Africa.

“These examples show that we have built industries that now satisfy the domestic market, and the next step is to push aggressively into export markets,” Ms Kapinga said.

Industrialisation is reinforcing this trajectory. In 2024, the industrial sector’s contribution to GDP rose to 7.3 percent from 7.0 percent a year earlier, while sector growth accelerated to 4.8 percent.

The value of manufactured goods climbed by 5.6 percent to Sh26.44 trillion in 2023. Trade has followed a similar path, with its GDP share increasing to 8.6 percent in 2024, driven by improvements in the business environment and expanded market access. A cornerstone of Tanzania’s regional strategy is the African Continental Free Trade Area (AfCFTA).

Exports to African markets surged by 40 percent to $3.94 billion in 2024, supported by sales of coffee, tobacco, grains, spices, sisal fibre and glass. New markets have opened in Nigeria, Morocco, Senegal, Ethiopia, Ghana, Algeria, Djibouti and Guinea. “This is a major opportunity for Tanzanians, especially young people, to engage in export businesses- from agricultural products and value addition,” she said.

She noted that a national AfCFTA implementation strategy has already been launched.

Beyond Africa, Tanzania’s exports to the European Union rose by 7.6 percent to $686.3 million in 2024, buoyed by avocados, cocoa, coffee, tobacco and minerals.

Asian markets remain significant, with exports worth $2.84 billion in 2024, led by cashew nuts, pulses, avocados, cotton, groundnuts and goat meat.

To sustain this expansion, the government is finalising a national export strategy that will be inclusive by design.

“We want young people to be among the primary beneficiaries of improved access to quality markets, and we will ensure this strategy is inclusive,” Ms Kapinga said.

Economist Mr Godius Kahwa said Tanzania’s advantage lies in scale and geography.

“With fertile land, a growing agro-processing base and access to multiple regional blocs, Tanzania is well positioned to supply food and manufactured inputs to neighbouring countries facing deficits,” he said.

“Industrial parks linked to agriculture can anchor youth employment if logistics and standards are well managed.”

Trade analyst Ms Ruth Mlaki told The Citizen that predictability matters. “Policy consistency, digital trade facilitation and regional diplomacy are critical. Tanzania’s recent export figures show that reforms are beginning to pay off, especially under AfCFTA,” she said.

Meanwhile, Tanzania is positioning online trade as a central pillar in tackling youth unemployment and accelerating growth as it finalises a National E-commerce Strategy.

Ms Kapinga said the government is establishing a robust framework to guide online trade, deliberately integrating youth participation. By 2024, Tanzania had registered 1,820 companies whose core activity is e-commerce, many of them youth-led.