Gold exports drive rapid growth in Tanzania–South Africa trade

By The Respondents Reporter

Tanzania has recorded a strong expansion in bilateral trade with South Africa over the past five years, driven largely by a sharp rise in gold exports that has lifted total trade value to about TZS 5.7 trillion, official data show.

Figures from the Tanzania Trade Development Authority (TanTrade) indicate that between 2020 and 2024, Tanzania’s exports to South Africa almost doubled, increasing from USD 1.145 billion to USD 2.293 billion, with the trade balance consistently favouring Tanzania.

Gold has emerged as the backbone of this growth. Exports of the precious metal to South Africa rose from USD 1.075 billion in 2023 to USD 2.226 billion in 2024, marking one of the fastest single-market expansions for Tanzania’s gold exports in recent years. 

The performance highlights gold’s growing role as a key foreign exchange earner and a stabiliser of the country’s trade balance.

Alongside minerals, Tanzania has continued to broaden its export base. Agricultural products such as tobacco, coffee, tea, cashew nuts and avocados have gained market share, while light manufactured goods, including cotton garments, ceramic tiles, paving materials, oilcake and other agricultural residues, have also contributed to the export growth.

Imports from South Africa remain diverse, with Tanzania sourcing vehicles, iron and steel products, electrical machinery, plastics, medical equipment, chemicals, beverages and paper products

Analysts say this export-led but diversified trade structure reflects Tanzania’s improving competitiveness within the Southern African Development Community (SADC) market.

Trade experts view the trend as more than a minerals story. South Africa is increasingly serving as a strategic entry point for Tanzanian goods into Southern Africa, supported by improved logistics, stronger institutional cooperation and closer trade diplomacy.

Air connectivity has played a supporting role. The resumption of Air Tanzania Company Limited (ATCL) flights has enhanced business travel and cargo movement, carrying 26,268 passengers and transporting about 202,707 tonnes of cargo between November 2024 and December 2025

The development has helped ease trade bottlenecks, supported exports of perishables and boosted tourism and investment-related travel.

Progress in standards harmonisation has also improved market access. A memorandum of understanding between the Zanzibar Bureau of Standards and the South African Bureau of Standards is aimed at reducing technical barriers to trade, improving export compliance and positioning Zanzibar as a competitive regional production and tourism hub.

Economists say sustained earnings from gold exports now offer Tanzania an opportunity to accelerate local value addition, particularly through refining, jewellery production and downstream manufacturing. 

The revenues could also support the development of industrial parks, special economic zones and export-oriented small and medium-sized enterprises.

In agriculture, stakeholders are calling for stronger export corridors for priority crops such as avocados, cashew nuts, coffee and tea, supported by cold-chain logistics and expanded air cargo services. 

At the same time, there are renewed calls to deepen SADC trade diplomacy by fast-tracking pending agreements with South Africa, Botswana and Lesotho, while aligning them with AfCFTA and SADC protocols.

With a widening trade surplus and improving regional connectivity, Tanzania is steadily positioning itself as a regional logistics and export hub, linking ports, airlines, special economic zones and standards institutions into a more integrated export ecosystem.

The emerging picture, analysts say, is of a country translating mineral wealth into broader regional economic influence, with gold opening the door and other sectors now expected to follow.

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