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:
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.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.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.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.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.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
Agro-processing – Value addition in cashew, coffee, sunflower, cotton, and fruits
Mining and mineral services – Equipment leasing, refining, and local partnerships
Tourism and hospitality – Hotels, lodges, tour operations in underdeveloped parks
Logistics and warehousing – Inland container depots and regional freight hubs
Renewable energy – Off-grid solar, wind farms, and rural electrification
Fisheries and aquaculture – Lake Victoria and Indian Ocean coastal investments
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.