Tanzania Country Profile

The United Republic of Tanzania is one of East Africa’s largest and most resource-rich countries. Strategically located along the Indian Ocean and sharing borders with eight countries, including Kenya, Uganda, Rwanda, Burundi, Zambia, and the Democratic Republic of Congo, Tanzania acts as a key transit hub for landlocked nations in the region. Known for its political stability, natural resources, and expanding infrastructure, Tanzania is a growing trade and investment destination.

  • Capital: Dodoma (administrative), Dar es Salaam (economic)

  • Population: ~67 million (2024 est.)

  • Official Languages: Swahili and English

  • Currency: Tanzanian Shilling (TZS)

  • Time Zone: GMT+3

  • Major Cities: Dar es Salaam, Dodoma, Mwanza, Arusha, Mbeya, Tanga

Economic Landscape

Tanzania has experienced consistent economic growth over the past two decades, with an average GDP growth rate between 5% and 7%. Its economy is diversified and largely driven by agriculture, mining, construction, tourism, and trade. Government reforms and infrastructure investments have improved the country’s macroeconomic stability and competitiveness.

Key Economic Sectors:

  1. Agriculture
    Agriculture employs about 65% of the labor force and contributes over 25% of GDP. Key crops include maize, rice, coffee, tea, cashew nuts, cotton, tobacco, and horticultural produce. Tanzania is also a leading producer of cloves and sisal.

  2. Mining and Natural Resources
    Tanzania is rich in natural resources, including gold, diamonds, tanzanite (unique to Tanzania), coal, and natural gas. Gold is the top export product. The mining sector contributes significantly to foreign exchange earnings and government revenue.

  3. Tourism
    With globally renowned attractions such as Mount Kilimanjaro, Serengeti National Park, Ngorongoro Crater, and Zanzibar beaches, Tanzania is one of Africa’s top tourist destinations. Tourism is a major source of income and job creation.

  4. Manufacturing and Industry
    Tanzania’s industrial sector is growing steadily, focusing on food processing, textiles, cement, chemicals, and construction materials. The government encourages agro-processing and local value addition to reduce import dependency.

  5. Construction and Infrastructure
    Infrastructure spending, especially on transport and energy, has boosted the construction industry. Key projects include roads, railways, power plants, and ports, contributing to improved connectivity and logistics.

  6. Energy
    The country is investing in hydropower (notably the Julius Nyerere Dam), natural gas, and renewable energy. It is also planning to expand its energy grid to underserved regions and neighboring countries.

Trade and Export Profile

Tanzania is an active participant in regional and global trade, exporting a mix of natural resources, agricultural products, and manufactured goods.

Top Export Products:

  • Gold

  • Coffee and tea

  • Cashew nuts

  • Tobacco

  • Cotton

  • Hides and skins

  • Cloves and spices

  • Fish and seafood

  • Horticultural products

Top Import Products:

  • Petroleum products

  • Machinery and electrical equipment

  • Vehicles and spare parts

  • Pharmaceuticals

  • Plastics and packaging materials

  • Wheat, rice, sugar

Major Trade Partners:

  • Exports: India, South Africa, Kenya, UAE, Switzerland, China

  • Imports: China, India, UAE, Kenya, Japan

Tanzania is a member of the East African Community (EAC), the Southern African Development Community (SADC), and the African Continental Free Trade Area (AfCFTA), which enhances its access to African and international markets.

Logistics and Infrastructure

Tanzania’s geographic location makes it a vital logistics gateway for East and Southern Africa, serving several landlocked countries.

Ports:

  • Port of Dar es Salaam
    The largest and busiest port in Tanzania, handling more than 90% of the country’s cargo. It is a vital export and import hub for Zambia, Malawi, Rwanda, Burundi, and the DRC.

  • Port of Mtwara
    Serves southern Tanzania and gas development areas. It is expanding to handle minerals and agriculture exports.

  • Port of Tanga
    Important for northern trade routes and regional agricultural exports.

Railways:

  • Tanzania Railways Corporation (TRC) is upgrading key routes, including the Standard Gauge Railway (SGR)from Dar es Salaam to Morogoro, Dodoma, and eventually to Rwanda and Burundi.

  • The TAZARA Railway links Dar es Salaam with Zambia and southern Africa.

Road Network:

Tanzania has over 90,000 km of road networks, with major corridors under continuous improvement. The Central Corridor links Dar es Salaam to the Great Lakes Region.

Airports:

  • Julius Nyerere International Airport (JNIA) – Dar es Salaam

  • Kilimanjaro International Airport (KIA) – gateway to tourism regions

  • Abeid Amani Karume International Airport – Zanzibar

Business Environment

Tanzania offers political stability, a peaceful society, and ongoing efforts to improve its business climate. The government is implementing reforms in tax administration, electronic licensing, and infrastructure investment.

Key Features:

  • English widely used in commerce and law

  • Investor protection and legal guarantees for foreign investors

  • Member of ICSID and MIGA for investment dispute protection

  • Active promotion of PPPs in energy, infrastructure, and manufacturing

Investment Incentives:

The Tanzania Investment Centre (TIC) facilitates investment and provides incentives such as:

  • Customs duty exemptions for capital goods

  • Tax holidays for priority sectors

  • Access to land in designated industrial parks and economic zones

  • Fast-track permits for strategic investors

  • Repatriation of profits and capital

Trade with Africa

Tanzania is a regional trade anchor, especially for East and Central Africa. It exports agricultural goods, manufactured products, and fuel to:

  • Rwanda

  • Burundi

  • Uganda

  • Zambia

  • Democratic Republic of Congo

  • Malawi

It imports foodstuffs, machinery, consumer goods, and fuel through its ports and border crossings. Trade corridors like Dar–Kigali and Dar–Lusaka are vital to regional supply chains.

Investment Opportunities

  1. Agro-processing – Value addition in cashew, coffee, sunflower, cotton, and fruits

  2. Mining and mineral services – Equipment leasing, refining, and local partnerships

  3. Tourism and hospitality – Hotels, lodges, tour operations in underdeveloped parks

  4. Logistics and warehousing – Inland container depots and regional freight hubs

  5. Renewable energy – Off-grid solar, wind farms, and rural electrification

  6. Fisheries and aquaculture – Lake Victoria and Indian Ocean coastal investments

  7. Textiles and leather – Export potential with regional and international demand

Challenges and Risks

While Tanzania holds significant potential, it also presents some challenges:

  • Regulatory and policy shifts can affect investor confidence

  • Infrastructure gaps in rural areas

  • Bureaucratic delays in licensing and permits

  • Access to finance for SMEs

  • Customs delays at some border points

However, the government has demonstrated commitment to improving governance, transparency, and economic diversification.

Business Culture Tips

  • Swahili is widely spoken, but English is the main language for business

  • Hierarchical structures are common in government and large firms

  • Building trust and long-term relationships is essential

  • Meetings begin with greetings and small talk

  • Decisions may take time — patience and persistence are rewarded

Tanzania is an emerging regional trade and investment hub in East Africa. With its expanding infrastructure, stable political environment, growing population, and access to regional markets, it presents significant opportunities across agriculture, mining, logistics, and services.

As East Africa becomes more integrated through AfCFTA, Tanzania’s position will grow stronger, particularly through its ports and railways that connect landlocked neighbors to global trade routes.

WeTradeAfrica invites exporters, importers, investors, and service providers to explore Tanzania’s vibrant marketplace and collaborate with trusted partners across the country.