Tanzania Faces Export Crisis: Massive Phytosanitary Certificate Fee Hike Threatens Agricultural Sector
Arusha, Tanzania – The nation’s agricultural export industry is confronting a significant challenge as the Tanzania Plant Health and Pesticides Authority (TPHPA) implements a dramatic fee increase for phytosanitary certificates, potentially jeopardizing the country’s international market competitiveness.
Effective January 2025, the cost of obtaining phytosanitary certificates has skyrocketed by over 460 percent, escalating from Sh58,347 to Sh331,320 per container consignment. The new fee structure includes a Sh201,320 inspection fee and a Sh130,000 export certification fee for consignments exceeding 1,000 kilograms.
TPHPA leadership argues the increase is necessary to support improved services and maintain international standards. The authority has invested in advanced laboratory equipment, including five High-Performance Liquid Chromatography machines, enabling weekly testing of up to 2,000 crop samples.
However, exporters express grave concerns about the financial impact. One horticultural exporter reported cost increases from Sh1.4 million to Sh7.3 million for 29 shipments, potentially rendering many export operations financially unsustainable.
The fee hike could significantly impact key export sectors, including:
– Horticulture: $569.3 million
– Tobacco: $517.1 million
– Cashew nuts: $422.8 million
– Oil seeds: $307.4 million
– Coffee: $295.5 million
– Cereals: $273.4 million
Comparative regional fees highlight Tanzania’s competitive disadvantage. Neighboring countries maintain substantially lower certificate costs:
– Rwanda: 200 Rwandan Francs
– Uganda: 5,000 Uganda Shillings
– Kenya: 600 Kenya Shillings
Industry experts warn that these increased costs could undermine Tanzania’s market position and contradict national efforts to expand international agricultural market access.
As tensions rise, exporters are calling for an immediate policy review to protect the sector’s economic viability and preserve Tanzania’s agricultural export potential.