Tanzania – Market Opportunity Overview

Tanzania, located in East Africa, is geographically diverse with features ranging from the highest peak in Africa, Mount Kilimanjaro, to vast savannas and the extensive coastline along the Indian Ocean. Geopolitically, it is one of the most stable countries in the region, maintaining peaceful relations with its neighbours and playing a significant role in regional organisations like the East African Community (EAC) and the Southern African Development Community (SADC).

Over the past year, the UK-Tanzania trade and investment relationship has seen notable progress and successes. Total trade in goods and services between the two nations reached £461 million by the end of Q1 2024, with UK exports to Tanzania increasing slightly to £284 million. This period also marked a significant focus on sustainable development and mutual growth, with the UK supporting Tanzania in areas such as climate change, economic stability, and inclusive growth. Despite a slight decrease in overall trade, the partnership remains strong, underpinned by long-term commitments and strategic investments aimed at fostering economic resilience and development.

Tanzania offers a range of exciting opportunities to UK organisations in sectors including energy, infrastructure, agriculture, mining and skills development, as well as opportunities in the Blue Economy in Zanzibar. To help us explore some of these opportunities, we are delighted to welcome a stellar panel including the new UK High Commissioner to Tanzania alongside her counterpart in the UK, as well as speakers from the Tanzania Investment Centre and UK Department for Business and Trade.

With around 70% of Tanzania’s population engaged in farming, the agricultural sector is crucial for the country’s development. In the 2023/24 budget year, the agricultural sector contributed 16.1% to the national income. The 2024/25 budget aims to boost this contribution to 20%. Looking forward to 2050, Tanzania’s government has prioritised increasing production and productivity, creating jobs and enhancing the participation of youth and women, improving food and nutrition security, strengthening market access, agriculture financing, crop exports, and fostering corporate development.

Tanzania’s government is prioritising the sustainable development of its mining sector, aiming to increase its contribution to the national GDP to 10% by 2025. This ambitious goal is part of the broader Tanzania Development Vision 2025, which seeks to harness the country’s rich mineral resources responsibly. Key initiatives include attracting new investments, fostering public-private partnerships, and empowering small-scale miners. Additionally, the government is focusing on value addition and the development of critical minerals like graphite, lithium, and nickel, which are essential for modern technologies. These efforts are designed to ensure that the mining sector not only boosts economic growth but also promotes environmental sustainability and social inclusivity.

There is a range of opportunities across other sectors of the economy too – notably, education and skills development; healthcare; tourism. In education, UK firms have been instrumental in enhancing vocational training and higher education, contributing to the development of a skilled workforce. The healthcare sector has also seen significant British investment, with companies providing advanced medical equipment and expertise to improve healthcare services. Tourism, a vital part of Tanzania’s economy, has benefited from British partnerships that focus on sustainable tourism practices and infrastructure development. These collaborations have not only bolstered Tanzania’s economic growth but also strengthened the bilateral relationship between the two nations.