AfCFTA
Tanzania has ratified the African Continental Free Trade Area (AfCFTA), granting access to a continental market of 1.39 billion people and reinforcing its role as a key entry point for trade and investment in Africa.
The AfCFTA complements Tanzania's existing memberships in the East African Community (EAC), with a combined market of 304 million consumers, and the Southern African Development Community (SADC), covering 366 million people.
Together, these frameworks position Tanzania as a strategic gateway connecting eight neighbouring countries, six of which are landlocked, to global trade corridors anchored by the Port of Dar es Salaam and the Standard Gauge Railway (SGR).
AfCFTA Market Access and Strategic Position
By ratifying the AfCFTA, Tanzania has secured access to a continental market of 1.39 billion people, the largest single trading bloc on the continent.
This access is layered on top of EAC membership (304 million consumers) and SADC membership (366 million consumers), giving Tanzanian exporters preferential entry to overlapping regional and continental markets.
Tanzania's geographic position serves eight neighbours, including Kenya, Uganda, Rwanda, Burundi, the Democratic Republic of Congo, Zambia, Malawi, and Mozambique, six of which are landlocked.
This combination of regional and continental trade memberships reinforces Tanzania's role as a key entry point for trade and investment in Africa.
Tanzania Export Performance under AfCFTA, 2024
Tanzania's export sector showed strong growth in 2024 across key regional and international trade blocs.
Export values reached USD 3,946.76 million under the AfCFTA, the highest of any bloc reported.
Within SADC, exports reached USD 2,968 million in 2024.
Around 44% of Tanzania's exports, comprising minerals, tourism, coffee, cashew nuts, cotton, sisal, tobacco, tea, and cloves, are destined for Switzerland, India, South Africa, China, and Kenya.
Over 73% of Tanzania's trade is concentrated among ten countries: China, Switzerland, India, South Africa, the UAE, Kenya, the DRC, the United States, Comoros, and Vietnam[1].
Complementary Trade Frameworks
Tanzania has been a World Trade Organization (WTO) member since 1995, providing a multilateral baseline that complements its AfCFTA commitments.
The country enjoys duty-free access to the United States through AGOA, and to the European Union under the Everything But Arms (EBA) program.
Bilateral trade agreements with China, India, and Russia further widen the export envelope available to firms manufacturing in Tanzania.
China and India together supply approximately 39% of Tanzania's imports, primarily machinery, technologies, and manufactured goods, reinforcing the case for domestic value addition under AfCFTA preferences.
Infrastructure Supporting AfCFTA Trade Flows
To support its continental trade role, Tanzania is investing heavily in large-scale infrastructure, most notably the Standard Gauge Railway (SGR).
The SGR is designed to connect the Port of Dar es Salaam with the interior and onward to Rwanda, Burundi, DRC, and Uganda.
The first phase from Dar es Salaam to Dodoma is already operational, with subsequent phases under construction.
Once completed, this network will strengthen Tanzania's position as a regional trade and transport hub by providing a faster, lower-cost alternative to road freight.
The East African Crude Oil Pipeline (EACOP), which will transport crude oil from Uganda's Lake Albert region to Tanzania's Tanga Port, further establishes the country as a critical link in the regional energy supply chain.
Policy Framework and Implementation
Trade Policy Coordination
The Ministry of Industry and Trade (MIT) is mandated to coordinate and manage the implementation of the AfCFTA, expand markets for Tanzanian goods and services, and address Non-Tariff Barriers that hinder the movement of goods.
The 2023 Trade Policy was developed to correct shortcomings of earlier policy, including insufficient adaptation to emerging opportunities like AfCFTA and e-commerce, fragmented institutional coordination, and the absence of a robust implementation and monitoring framework.
Strategic priorities include developing marketing infrastructure, simplifying trade facilitation to reduce costs and time, enhancing e-commerce infrastructure, improving access to trade finance, and strengthening the private sector's role in trade development.
FYDP IV and Regional Integration
FYDP IV advances regional and global economic integration to strengthen Tanzania's trade competitiveness within the EAC, SADC, and AfCFTA landscapes.
The Plan commits to at least 70% implementation of AfCFTA, EAC, and SADC regional trade protocols by 2030.
Supporting measures include AI-powered e-commerce gateways and a blockchain-based single-window customs system to eliminate cross-border friction, alongside port modernization to handle 20 million TEUs annually and a target of entering the Top 50 of the global Logistics Performance Index.
National Branding and Trade Facilitation
The Government is pursuing a national branding strategy, including the Tanzania Honey Brand Mark and a general Made in Tanzania mark for international markets.
In the digital space, the national Trade Portal is being updated with export procedures for specific crops, and the Biashara App has been launched to provide real-time price information from major markets to support informed trading decisions.
Investment Opportunities under AfCFTA
AfCFTA preferential access to 1.39 billion consumers opens significant opportunities in manufactured exports, building on the rise in manufactured export value from USD 83.5 million in 2003 to USD 1,419.2 million in 2022.
Agro-processing for regional markets, including edible oil production to reduce reliance on imported cooking oils and cashew nut value addition, can leverage AfCFTA tariff preferences to serve continental demand.
The automotive industry is well positioned to strengthen its role within Africa's emerging value chain as regional markets integrate through AfCFTA, with opportunities in assembly capacity, body-building facilities, and clean mobility technologies including CNG and electric vehicles.
Pharmaceutical manufacturing is a strategic AfCFTA-aligned opportunity, with a national strategy targeting an increase in local pharmaceutical production from the current 10% to 65% by 2030[2].
Logistics, port services, and cross-border e-commerce platforms aligned with the FYDP IV 70% protocol implementation target by 2030 offer further investment angles, supported by the SGR and EACOP corridors that anchor Tanzania as a continental trade hub.
Last Update: May 2026
References
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