How Tanzania SMEs can crack regional markets under AfCFTA

But they say success will depend not only on business ambition, but also on how well research, policy and enterprise are connected.

This message stood out strongly during the 20th International Conference on African Entrepreneurship and Small Business Development (ICAESB), hosted by the University of Dar es Salaam Business School (UDBS) on Wednesday.

While the conference focused on business, technology and sustainability, it also exposed a deeper issue: many Tanzanian SMEs still struggle to translate knowledge into market advantage.

According to the Ministry of Industry and Trade, SMEs contribute more than 35 percent of Tanzania’s GDP and employ over five million people. Yet only a small fraction of these businesses export or participate meaningfully in regional value chains.

Most remain informal, under-capitalised and disconnected from research institutions that could help them scale.

Speaking at the conference, the Deputy Vice Chancellor for Research at the University of Dar es Salaam, Prof Nelson Boniface, stressed that universities must move beyond academic publishing.

“For the past two decades, ICAESB has served as a critical bridge between research, policy and practice,” he said, adding that research must deliver “real impact” for SMEs if Tanzania is to compete regionally.

One of the biggest opportunities lies in AfCFTA, which offers a market of over 1.3 billion people. However, experts caution that market access alone is not enough.

Tanzanian products must meet quality standards, branding requirements and sustainability expectations in regional markets such as Kenya, Rwanda, South Africa and Nigeria.

Tanzania Ports Authority deputy director general Baraka Mdima challenged entrepreneurs to rethink their business models.

“Digital transformation is now central to growth, competitiveness and regional integration,” he said. Efficient logistics, ports and transport systems, he noted, are critical enablers for cross-border trade, especially for agro-processing and light manufacturing SMEs.

Beyond infrastructure, branding has emerged as a key national priority. Tanzania is in the process of developing a national branding and country-of-origin strategy, including a unified logo aimed at promoting Tanzanian products abroad.

The initiative seeks to replicate successes seen in countries like “Made in Rwanda” and “Proudly South African”, where national branding has helped SMEs gain visibility and trust in external markets.

An official from the Tanzania Trade Development Authority (TanTrade), who spoke on the sidelines of the conference, said a national brand would help SMEs overcome fragmented marketing efforts.

“Many Tanzanian products are competitive, but they lack a common identity. A national logo will help tell a single story about quality, reliability and origin,” the official explained.

Scholars argue that this is where researchers must play a more active role. The UDBS Dean, Prof Omari Mbura, said universities should support SMEs with market research, product development and export readiness. “This conference is not just about ideas; it is about solutions,” he said.

“Research should help businesses adopt technology, respond to climate change and meet regional standards.”

Independent economist Mussa Tabu agrees. He said Tanzanian SMEs often fail not because of poor products, but because of weak market intelligence.

“Researchers can help SMEs understand consumer behaviour in regional markets, pricing strategies and regulatory environments. Without this knowledge, cross-border expansion becomes guesswork,” he noted. Sustainability is another emerging requirement. Regional buyers increasingly demand environmentally responsible production, especially in agriculture, textiles and manufacturing.

Dr Mdima warned that businesses ignoring sustainability risk being locked out of future markets. “Building sustainable enterprises is no longer a choice; it is a necessity,” he said.

Policy analysts also point to government-backed financing and incubation programmes as crucial enablers. Initiatives under the Small Industries Development Organisation (SIDO), the Tanzania Agricultural Development Bank (TADB) and various innovation hubs are slowly improving SME readiness. However, coordination remains weak.

Regional trade specialist Rehema Mushi said closer collaboration is needed. “We need structured partnerships where scholars, entrepreneurs and policymakers work together from idea to export. Conferences like ICAESB should result in pilot projects, not just papers,” she argued.

As Tanzania positions itself as a regional trade hub, the opportunity for entrepreneurs is clear. But winning regional markets will require more than individual effort. It will demand strong research support, smarter branding, digital adoption and policies that turn knowledge into action.