Tanzania’s Cross-Border Trade Surges: Exports Climb, Challenges Persist at Border Crossings
Tanzania’s international trade landscape is experiencing significant growth, with exports showing a robust 13.96 percent increase from 2020/21 to 2023/24. The total export value has risen from Sh9.25 trillion to Sh10.54 trillion, demonstrating the country’s expanding economic potential.
However, the trade sector faces critical challenges, particularly at border crossings like Tunduma, where transportation bottlenecks are impeding trade efficiency. Trucks can experience delays ranging from seven to ten days, with cargo transportation occurring in staged phases that further slow the logistics process.
Strategic solutions are emerging to address these challenges. The government is exploring multiple approaches, including potential railway infrastructure rehabilitation. A $1 billion project is underway to revive the Tazara Railway, which could potentially transport five million tonnes of cargo annually and significantly reduce border congestion.
Experts recommend diversifying export strategies, highlighting agriculture and livestock as promising sectors. Potential growth areas include vegetable and fruit exports to international markets, along with developing meat and leather processing industries to maximize value.
The transport ministry acknowledges ongoing improvements and is collaborating with neighboring countries to streamline border procedures. Proposed solutions include restoring train services and optimizing scanner utilization to expedite cross-border trade.
Energy experts also suggest transitioning to natural gas as a strategic move to reduce petroleum import costs and create local economic opportunities. This approach could potentially lower operational expenses while supporting broader economic growth objectives.
As Tanzania continues to navigate its trade expansion, strategic investments in infrastructure, diversification of export sectors, and innovative logistics solutions will be crucial in maintaining and accelerating economic momentum.
