Tanzania’s $3 Billion African Trade Boom and the Push for Global Expansion

Tanzania’s trade with Africa has more than tripled in less than two decades, climbing from $0.9 billion in 2004 to $3 billion in 2020. According to Afrobarometer’s latest survey, Tanzanians increasingly recognize the role of trade in their country’s economic transformation, but they also see the limits of relying too heavily on regional markets.

The numbers behind the boom

Africa now accounts for 40% of Tanzania’s exports, while the rest, 60%, flows to destinations such as India, the UAE, Switzerland, China, and the European Union. This regional export base is anchored by manufactured goods, agricultural produce, and fuel products that find ready demand in East and Southern Africa.

Between 2004 and 2020, exports to Africa grew at an average of 6.8% per year, outpacing Tanzania’s overall GDP growth of about 6%. The main drivers:

Agriculture: Processed foods, grains, and horticulture are supplied to EAC and SADC neighbours.
Manufacturing: Cement, textiles, and plastics are exported primarily to Burundi, Rwanda, and the DRC.
Energy: Cross-border fuel trade, particularly to landlocked states like Uganda and Zambia.

This growth has helped cushion Tanzania against external shocks, particularly when global commodity prices fluctuate.

Comparing the neighbours

While Tanzania’s African trade is impressive, it lags behind Kenya in certain respects.

Kenya exported about $6.4 billion globally in 2020, with a strong emphasis on manufactured exports (tea, coffee, cement, textiles). Roughly 40% went to Africa.
Uganda, smaller in scale, exported about $4.5 billion in 2020, heavily concentrated in agricultural produce but increasingly diversified into regional energy trade.

Tanzania’s $3 billion regional export performance puts it ahead of Rwanda and Burundi, but still behind Kenya and Uganda in terms of market reach and integration. Where Tanzania does stand out, however, is its strategic logistics advantage; ports at Dar es Salaam, Tanga, and Mtwara serve as vital arteries for regional economies. This makes Tanzania a gateway, even when its export volumes lag.

Public expectations rising

Afrobarometer data shows that 59% of Tanzanians want their government to promote external trade, rather than focus on protecting domestic industries. This reflects public recognition that exports are critical for job creation and growth. However, 65% of citizens also favour global trade over an Africa-only focus, showing that while the $3 billion African trade boom is important, it is not enough to meet aspirations.

Policy opportunities

Tanzania can scale its regional trade boom into a platform for global competitiveness if it acts decisively:

Logistics upgrade: Complete the Standard Gauge Railway to connect Dar es Salaam to Kigali, Bujumbura, and eventually eastern DRC, cutting transport costs by up to 40%.
Customs digitisation: Harmonise EAC border systems to reduce clearance times, currently averaging 2–5 days, down to less than 24 hours.
Industrial targeting: Build agro-processing and light manufacturing zones near border towns (Mwanza, Kigoma, Tunduma) to anchor export-driven employment.
Trade diplomacy: Push for faster implementation of the African Continental Free Trade Area (AfCFTA), while also negotiating bilateral deals with high-demand markets like India and China.

The bigger picture

The regional trade boom shows that Tanzania can build competitive industries when geography, policy, and demand align. But Africa is still a limited market compared to Asia and Europe. For Tanzania to move from a $85 billion economy in 2025 to the projected $180 billion by 2030, it must leverage regional trade as a springboard, not a ceiling.

The strategic question now is not whether Tanzania should trade with Africa; it must, but whether it can use its $3 billion regional footprint to pivot into global supply chains. The public has already answered: Tanzanians want more.