TANZANIA has been exporting goods valued at $2.6bn to other African countries, while importing goods totalling $5.1bn annually, the East African Business Council (EABC) said here over the weekend.

Zephania Shaidi, the EABC business development manager, made this observation at the climax of a training session for small and medium-sized enterprises (SMEs) to enhance their understanding of the African Continental Free Trade Area (AfCFTA). 

The event brought together over 50 company officials from diverse industries, notably manufacturing, agro-processing, creative arts, transport and a number of government officials.

International Trade Centre data indicates that the country’s total imports of goods from other parts of the continent stood at $1.5bn by 2023 figures, indicating a favourable balance of trade. 

Tanzanian businesses need to look beyond local markets and seize continental trade opportunities under the AfCFTA, he said, while Raphael Maganga, the Tanzania Private Sector Foundation (TPSF) chief executive officer pointed out the potential level of AfCFTA opportunities.

With a combined GDP of some $3.4trn, the continental pact links 1.3bn people of rapidly growing consumption and other needs, he said, with Clement Kamendu, the Tanzania Shippers Council (TSC) chairman,  emphasized the need for countries to work together to reduce transport and logistics costs, for Africa to remain competitive.

It was due to such barriers that intra-African trade accounts for only 16 percent of Africa's total trade volume, compared to 57 percent in Asia and 68 percent in Europe, he stated.

A range of experts assert that Africa’s participation in global value chains is low and primarily driven by primary –produce and extractive industries, thus needing to advance up the value chain.

The continent needs value addition, industrialization, improved infrastructure and the actualization of an integrated market under the AfCFTA agenda, the regional council underlines.

EABC in collaboration with the ‘Team Europe’ technical assistance facility to support AfCFTA links and continental economic integration with the European Union, brought together the business operatives for training o for SMEs in Tanzania, to improve their understanding of the trading protocol, he stated.

The maiden training covered key initiatives under the agreement, including the guided trade initiative, the AfCFTA adjustment fund and value chain integration, with the EABC explaining that this initiative aims to equip SMEs with the necessary tools to access the extensive continental market.

Ultimately, this effort seeks to strengthen SMEs' capacity, positioning them for greater success in a competitive regional marketplace, it emphasised, underlining its commitment to enhance the capacity of the regional private sector to trade under the AfCFTA protocol.

Through the EU technical assistance facility, it will roll out similar workshops in the member stated, it said in a statement, affirming that training will help SMEs to export products across the continent.

It is important to empower businesses with the tools and knowledge needed to access the market and compete with their counterparts, it said, noting that the AfCFTA protocol stresses key value chains to drive intra-African trade and industrial growth.

These include agriculture and agro-processing, pharmaceuticals, automotive, transport and logistics, along with textiles and style clothing, as by focusing on these sectors, the protocol envisages to create jobs, boost regional trade and strengthen Africa’s global competitiveness.

The African Export-Import Bank (Afreximbank) and the AfCFTA Secretariat have already established the AfCFTA Adjustment Fund, with operations of the fund domiciled in Rwanda, it said. 

The fund is intended to support countries and private entities through financing, technical assistance and grants for mitigation or compensation funding in transiting to the AfCFTA trading framework.

SMEs officials participating in the training engaged in discussions on value chain analysis to improve their products and services with the goal of discovering gaps in what they do for uplifting it.

They also sought out opportunities to enhance operational efficiency, resource utilization, financial performance, profitability, product quality and sustainable competitive advantage in light of the AfCFTA protocol, the statement added.