Tanzania’s exports to other African countries have reached $2.6 billion annually, surpassing the $1.5 billion in imports from the continent, according to the East African Business Council (EABC). This reflects a positive trade balance as Tanzania taps into regional trade opportunities under the African Continental Free Trade Area (AfCFTA).
Zephania Shaidi, EABC’s business development manager, highlighted the potential for Tanzanian businesses at a training session aimed at enhancing small and medium-sized enterprises’ (SMEs) understanding of the AfCFTA. Over 50 company representatives from manufacturing, agro-processing, and transport sectors, along with government officials, attended.
The AfCFTA links 1.3 billion consumers with a combined GDP of $3.4 trillion. Raphael Maganga, CEO of the Tanzania Private Sector Foundation (TPSF), stressed the importance of Tanzanian businesses expanding beyond local markets to seize these opportunities.
Clement Kamendu, chairman of the Tanzania Shippers Council (TSC), noted that high transport and logistics costs hinder intra-African trade, which accounts for only 16% of Africa’s total trade volume, compared to 57% in Asia and 68% in Europe. Reducing these costs is crucial for Africa’s competitiveness.
The event was part of a collaboration between the EABC and the EU’s ‘Team Europe’ initiative, providing technical assistance to support AfCFTA’s economic integration. The training introduced key AfCFTA initiatives like the Guided Trade Initiative and the AfCFTA Adjustment Fund, aimed at helping SMEs access continental markets.
Participants discussed value chain improvements and ways to enhance efficiency and product quality. The AfCFTA Adjustment Fund, established by the African Export-Import Bank and the AfCFTA Secretariat, operates in Rwanda, providing financing and technical assistance for the transition to the AfCFTA framework.
The AfCFTA aims to boost regional trade, create jobs, and strengthen Africa’s global competitiveness, with a focus on sectors like agriculture, pharmaceuticals, automotive, textiles, and transport. The EABC will continue rolling out similar training across the region to equip businesses for success under the AfCFTA.
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