The United Republic of Tanzania is a nation in central East Africa bordered by Kenya, Uganda, Rwanda, Burundi, Democratic Republic of Congo, Zambia, Malawi and Mozambique. This geographic placement of Tanzania is an advantage and provides the export industries with a vast market opportunity as all these countries are import based. Tanzania also has three major ports located in Dar-es-Salaam, Tanga, and Mtwara along with a new modern port being built in Bagamoyo, 60km from Dar-es-Salaam.

Tanzania is known for it’s peace and stability and this has provided the country with a steady growth over the years. Tanzania has been growing with an average rate of 7%, mainly being dependent on agriculture and export of raw materials. Tanzania has now opened a new window for growth, the Export Processing Zone, having the vision of expanding the industry sector by offering the best solutions for the investors as stated by President Kikwette, “Investment contributes to the growth of the economy …there is no development without investors… We are continuing to improve the investment environment because we are keen to improve the industrial sector in the country.”

Tanzania has 8 universities, providing a sizable pool of skilled and trainable manpower. Dar es Salaam’ Institute of technology and the Vocational Education Training Authority (VETA) centres are among the major providers of skilled labour force.

“Tanzania wins US export rights”. Tanzania has been approved by the United States of America under the African Growth and Opportunity Act (AGOA) scheme to export clothing duty-free. Under AGOA, countries can export unlimited amounts of apparel to the US without duties or quotas as long as they are produced locally.

Tanzania holds a unique position in that it is a member of both South African Development Community (SADC) and the East African Community (EAC) . Because of this, Tanzania will bring a common market size of over 300 million people within the next five to six years plus the already available market to the US.

Tanzania has a special agreement with the European Union (EU), through Everything But Arms (EBA). Negotiations with the EU on Economic Partnership Agreement (EPA) are underway. Also, apparel made in Tanzania enter the Canadian market quota free and duty free. Tanzania also enjoys bilateral trade agreements with various other countries including China, Japan and South Korea.

With 80% of Tanzania’s population dependent in agriculture as their main economic activity, the sector remains the largest contributor in our economy. Our country is endowed with vast tracts of arable land and plentiful water sources for irrigation. Together with fruits and vegetables; major cash crops include coffee, cotton, sisal, tobacco and cashew nuts while maize, rice, pulses and wheat are the major food crops. Our government is keen in promoting agriculture and agro-processing. It has recently launched an initiative known as “Kilimo – Kwanza” (Agriculture First). This translates into a huge investment opportunity in the agro-processing sector. Investment in processing of fruits, vegetables, seed oil, honey and cashew nuts are highly encouraged.

Tanzania is Africa’s fifth-largest lint-cotton producer, after Egypt, Nigeria, Burkina Faso and Benin. As many as 500,000 Tanzanian farmers cultivate over 485,000 hectares (1.2 million acres) of cotton in the country’s northern, coastal and western regions. In the last four years the country produced an average of 84,000 tons of conventional cotton lint a year. In any typical growing season more than 80% of this crop is exported – meaning that there are still significant opportunities for purchasing Tanzania grown cotton and transforming it into yarns and fabrics in Tanzania. The country is also one of Africa’s largest producers of organic lint – and the area under conventional production is continuing to expand. There are also significant opportunities to make garments in Tanzania for export free customs duties and quotas into the US and the EU. These can be made with fabrics and garment trims sourced anywhere in the world.

Tanzania’s mineral policy aims to attract, protect and facilitate the private sector in mineral exploration, mining and marketing. Gold, Diamond, Nickel and precious stones are the major mining products. Tanzania has an abundance of colored gemstones such as ruby, sapphire, emerald and is the only source of tanzanite. The government’s ban on exportation of raw and uncut gemstones is meant to set the stage for the growth of a lapidary industry in the country. This is a lucrative opportunity for companies to invest in mineral processing under EPZA.