Tanzania’s export growth boosted by SADC region leadership.

By The Respondent Reporter

Tanzania has made remarkable strides in expanding its export sector, a testament to the government's concerted efforts to enhance production and improve the overall business environment. 

Minister for Industry and Trade, Dr. Selemani Jafo, emphasized this achievement during his presentation of the 2025/26 budget estimates in Parliament on May 14, 2025. 

According to Dr. Jafo, the country's export volume has witnessed a substantial rise over the past four years, contributing to a positive trade balance and affirming Tanzania’s growing role in global commerce.

At the heart of this expansion is Tanzania's robust performance in the Southern African Development Community (SADC) bloc. 

Exports to SADC countries surged dramatically from 1,303.4 million USD in 2021 to 2,968 million USD in 2024 an impressive 127.7% increase.

This growth underscores the strengthening of economic ties within the region and positions Tanzania as a key player in the Southern African trade network.

The East African Community (EAC), while contributing to Tanzania's export growth, saw more modest progress. Exports to the EAC increased slightly, from 1,161.2 million USD in 2021 to 1,163.8 million USD in 2024. 

While this increase reflects the solid foundation of trade relationships in the region, the numbers suggest that greater potential exists for deeper integration and expansion within East Africa.

On a broader scale, Tanzania’s involvement in the African Continental Free Trade Area (AfCFTA) has also yielded significant results.

By March 2025, Tanzania had exported 21 products to 18 African countries, including high-demand goods such as sisal, rice, coffee, and glassware. Countries like Morocco, Nigeria, Ghana, Algeria, and Djibouti emerged as key markets. 

Overall, Tanzania’s exports to African countries grew by 61.2%, from 2,447.63 million USD in 2021 to 3,946.76 million USD in 2024.

This rise illustrates not only the growing intra-Africa trade but also Tanzania’s strategic positioning within the continent’s economic landscape.

Tanzania’s export success isn’t limited to Africa. The United States, under the African Growth and Opportunity Act (AGOA), saw a substantial 158.3% increase in Tanzanian exports, rising from 33.06 million USD in 2021 to 85.4 million USD in 2023.

Similarly, exports to the European Union grew by 38.5%, reaching 1,234.3 million USD in 2024, up from 891.5 million USD in 2021. These developments highlight Tanzania’s increasing integration into global trade systems, facilitated by preferential trade agreements and growing demand for its agricultural and industrial products.

However, not all of Tanzania's export markets have shown the same positive trajectory. Exports to certain Asian markets experienced a 2.9% decline in 2024, a trend Dr. Jafo attributed to heightened competition from other nations vying for market share. Despite this challenge, Tanzania remains optimistic, buoyed by the global demand for key exports such as coffee, tobacco, avocados, leather, and minerals.

A significant obstacle for Tanzania’s export sector in recent years has been non-tariff barriers (NTBs), which hinder smooth trade flows. 

Dr. Jafo reported that the government had successfully resolved 50 out of 64 identified NTBs over the past four years, streamlining trade processes and fostering closer economic cooperation with neighboring countries, particularly within the EAC and SADC regions.

In conclusion, Tanzania’s export growth in recent years showcases a blend of strong regional integration, strategic trade agreements, and the country’s competitive advantages in key sectors.

The SADC bloc stands out as a primary driver of this growth, with exports to the region nearly doubling, while Tanzania also benefits from an expanding footprint in both African and global markets. 

However, as global competition intensifies, maintaining this momentum will require continued investments in infrastructure, trade facilitation, and market diversification. 

With sustained government efforts and strategic partnerships, Tanzania’s export sector is set to play an increasingly pivotal role in the country’s economic development in the years ahead.

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