Tanzania’s Cross-Border Trade with Neighbouring Countries Goes Up

(3 Minutes Read)

The improvement in cross-border trade could be attributed to several factors, including strong diplomatic relations between Tanzania and its neighbors, which have paved the way for trade agreements like the recent maize trade pact with Zambia

Cross-border trade between Tanzania and its neighboring countries has seen significant growth, with the trade surplus expanding by 24.8 percent to reach Sh1.3 trillion for the quarter ending September 2024, according to the latest report from the Bank of Tanzania (BoT).

All regions reported a trade surplus, except for the northern zone. The most notable increase in trade was observed in the Lake Zone, which saw a rise in exports of unrefined gold, rough diamonds, fish and fish products, cosmetics, tiles, and food items.

The Ministry of Industry and Trade attributed the boost to the government’s commitment to attracting investment, creating a favorable business climate, and removing several non-tariff barriers (NTBs) between Tanzania and its trading partners, particularly Zambia.

The Consolidated Zonal Economic Performance Report for the year ending September 2024 also highlighted strong growth in the southeastern and southern highlands zones, driven by higher exports of manufactured goods, including cement, maize flour, and juice.

In contrast, the northern zone experienced a widening trade deficit, which surged to Sh495.7 billion from Sh93.4 billion during the same period in 2023. This was primarily due to increased imports of ethylene polymers, tractors, vehicles, medicaments, and other goods.

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Dr.Lutengano Mwinuka, an economics lecturer at the University of Dodoma (Udom), noted that the improvement in cross-border trade could be attributed to several factors, including strong diplomatic relations between Tanzania and its neighbours, which have paved the way for trade agreements like the recent maize trade pact with Zambia.