Accelerating regional integration & intra-EAC trade

Tanzania is making significant strides in regional trade and logistics, positioning itself as a key player in the East African market. The country's strategic location and infrastructure developments, such as enhanced port facilities and the Standard Gauge Railway, are attracting investors and deepening trade investments. CNBC Africa's Flora Limukii had the opportunity to speak with Tanzania's Investment, Industry, and Trade Minister, Ashatu Kijaji, during the Africa CEO Forum in Kigali, shedding light on the country's thriving economy and its role in intra-EAC trade. One of the key areas of focus for Tanzania is logistics improvement, particularly the enhancement of its port facilities and the development of the Standard Gauge Railway. Minister Kijaji emphasized the importance of attracting investors to the railway corridor to maximize the benefits of this vital infrastructure. By encouraging investment in logistics, Tanzania aims to support regional trade and provide a gateway for landlocked countries in the region. The automotive industry is also flourishing in Tanzania, with nearly 13 automotive factories operating in the country. Minister Kijaji highlighted the country's conducive location and the potential for further investments in automotive manufacturing. Additionally, Tanzania is looking to capitalize on its agricultural sector, with a significant portion of its population engaged in agriculture. The focus is now shifting towards agri-business and agri-processing industries, with the government actively seeking investors to establish industrial parks and support small and medium industries. In the realm of regional integration, Minister Kijaji acknowledged the need for standardized business practices across Africa to facilitate the creation of a one African market. She underscored the importance of harmonized certificates for products produced within Africa as a strategic move towards seamless trade. Addressing the high logistics costs within the continent, Tanzania is actively working on reducing the cost of doing business and easing the movement of goods within East Africa. Small and medium enterprises (SMEs) play a crucial role in Tanzania's economy, with the private sector serving as an engine for economic growth. Minister Kijaji highlighted the government's efforts to support SMEs by providing them with business knowledge and facilitating access to competitive financing. Through partnerships with organizations like the International Finance Corporation (IFC), Tanzanian SMEs are gaining international recognition and securing significant financing contracts, enabling them to expand their businesses globally. As Tanzania seeks to lessen its dependence on external borrowing, the focus is shifting towards strengthening the financial sector and promoting domestic financing opportunities. The government is collaborating with financial institutions to lower interest rates and encourage local financing to support small and medium enterprises. By empowering the financial sector, Tanzania aims to bolster its economy and create a conducive environment for business growth and innovation. With a commitment to enhancing regional integration and promoting intra-EAC trade, Tanzania is solidifying its position as a pivotal player in the East African market. Through strategic investments in key sectors and a focus on supporting SMEs, the country is poised for sustainable economic growth and increased participation in the global market.