Arusha, Tanzania – Tanzania’s exports to other African countries reached $2.65 billion in 2023, nearly double the value of imports from the continent, which amounted to $1.5 billion. According to the East African Business Council (EABC), this data from the International Trade Centre highlights a favorable trade balance for Tanzania.
EABC’s membership and business development manager, Zephania Shaidi, encouraged Tanzanian businesses to look beyond local markets and explore opportunities within the African Continental Free Trade Area (AfCFTA). Shaidi made the comments during a special training session aimed at enhancing the capacity of small and medium-sized enterprises (SMEs) to navigate the AfCFTA framework. The training session, which brought together over 50 participants from industries such as manufacturing, agro-processing, transport, and government sectors, emphasized the need for value addition, industrialization, and better infrastructure to advance Africa’s role in global value chains.
Raphael Maganga, Executive Director of the Tanzania Private Sector Foundation (TPSF), pointed out that the AfCFTA, connecting 1.3 billion people with a combined GDP of $3.4 trillion, presents a significant opportunity for trade and economic growth. He emphasized the importance of empowering businesses with the necessary tools and knowledge to access and compete in these expanded markets.
Clement Kamendu, Chairperson of the Tanzania Shippers Council (TSC), stressed the need for enhanced collaboration among African nations to lower transport and logistics costs, which currently limit intra-African trade. While intra-Africa trade accounts for only 16% of the continent’s total trade volume, compared to 57% in Asia and 68% in Europe, Kamendu noted that reducing these barriers could help boost trade.
The EABC, in partnership with the European Union Technical Assistance Facility (EU-TAF), has trained over 50 Tanzanian SMEs on the AfCFTA framework. The training covered key initiatives such as the Guided Trade Initiative (GTI), the AfCFTA Adjustment Fund, and value chain integration. These initiatives aim to equip businesses with the necessary tools to access the AfCFTA market and enhance their competitiveness within the region.
The AfCFTA Adjustment Fund, created by the African Export-Import Bank (Afreximbank) and the AfCFTA Secretariat, offers financial support, technical assistance, and grants to help countries and businesses transition to the new trading regime. The fund is based in Rwanda.
The initiative also focuses on priority sectors such as agriculture, pharmaceuticals, automotive, transport and logistics, and textiles and apparel, aiming to drive industrial growth, create jobs, and enhance Africa’s global competitiveness.
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