Tanzania's private sector unlocks trade for sustainable growth in East Africa

Tanzania’s private sector has been a key player in unlocking trade potential and driving sustainable economic growth not only within the country but across the entire East African region. Through strategic partnerships, regulatory reforms, and initiatives like the African Continental Free Trade Area (AfCFTA), the private sector is collaborating closely with the government to facilitate trade and investment. David Tarimo, Chairman of the CEO Roundtable, highlighted some of the primary challenges faced by businesses in Tanzania when it comes to integrating into regional and global trade networks. One of the main obstacles is the existence of non-tariff barriers despite the reduction in tariff barriers within the East African community. These barriers often result in delays at border posts, hindering efficient trade for domestic producers. Tarimo also emphasized the importance of infrastructure in moving products to markets and noted significant investments in infrastructure such as roads, railways, and ports which are set to enhance the efficiency of trade. Moreover, the role of public-private partnerships in driving infrastructure investment was discussed, with recent amendments to the PPP legislation paving the way for increased private sector involvement in projects. The implementation of the African Continental Free Trade Agreement has already shown an uptick in trade with new destinations and is expected to deepen integration within existing trade blocks like SADC and EAC. The agreement is seen as a significant driver for trade expansion going forward. Tanzania’s private sector has shown positive growth with increasing interest in future opportunities, particularly in agriculture and manufacturing sectors driven by infrastructure investments like the standard gauge railway. The country's tourism sector is recovering, mining revenues are strong due to favorable gold prices, and there are several large-scale projects in the pipeline such as LNG developments that are set to further boost economic growth. Tanzania's strategic location as a transit route in the region has also contributed to the growth of logistics and trade services, supported by improvements in infrastructure and ports. Overall, the state of the private sector in Tanzania is optimistic with a buoyant mood for future prospects driven by various growth opportunities and favorable economic conditions.