Trade Performance Review 2007, Tanzania

Abstract

Over the past 5 or so years trade performance in Tanzania reflects change in the structure of trade. Export diversification toward non-traditional exports is dominated by minerals while other non-traditional agricultural exports, particularly horticultural products and fish exports are also rising. The trade policy reforms have occasioned an investment climate that attract domestic private and foreign investors; however, more efforts and resources including aid should be devoted to the development of the capacity of the private sector to grow, understand and seize opportunities in the international market place. Imports have also risen in recent years largely to cater for the capital and intermediate inputs of the expanding sectors of mining and tourism and government spending on physical infrastructure. To the extent that the import bill supports the growth (investment) capacity there is expected to be future streams of income as population benefits from employment, provided nonetheless the recurrent costs of maintaining and servicing the physical stock just put in place are well internalised and accommodated by an efficient revenue effort strategy on the part of government.