Dar-Seoul trade gap narrows as exports surge

DAR ES SALAAM: TANZANIA’s exports to South Korea have more than quadrupled over the past five years, creating new opportunities for local producers even as trade remains heavily tilted in favour of the Asian economy.

Exports rose from 10 million US dollars in 2021 to 42 million US dollars last year, according to the latest report by the Tanzania Trade Development Authority (TanTrade), released this month.

Imports from South Korea increased more modestly, rising from 137 million US dollars to 160 million US dollars during the same period, although they reached a high of 360 million US dollars in 2024.

TANZANIA’s exports to South Korea have more than quadrupled over the past five years, signalling growing opportunities for local producers and exporters despite a persistent trade imbalance in favour of the Asian economy.

According to the latest report by the Tanzania Trade Development Authority (TanTrade), released this month, Tanzania’s exports to South Korea surged from 10 million US dollars in 2021 to 42 million US dollars in 2025, reflecting stronger market penetration and rising demand for Tanzanian products.

Imports from South Korea also increased during the period, albeit at a slower pace, climbing from 137 million US dollars in 2021 to 160 million US dollars last year.

However, import volumes peaked at 360 million US dollars in 2024, underscoring the scale of trade flows from the industrialised Asian nation.

While the trade relationship remains heavily weighted towards South Korean exports, the sharp growth in Tanzania’s outbound shipments highlights expanding prospects for local businesses seeking to tap into one of Asia’s most advanced and dynamic markets.

The shift helped narrow Tanzania’s trade deficit with South Korea to 118 million US dollars in last year from 332 million US dollars a year earlier.

“These figures point to growing demand for Tanzanian products in Korea while also underscoring significant room for further export growth,” TanTrade Director General, Dr Latifa Khamis said.

Total bilateral trade stood at 202 million US dollars last year, with Tanzanian exports accounting for about 21 per cent of the total, up from 6.8 per cent in 2021.

Tobacco remained Tanzania’s largest export to the Korean market. Earnings climbed to 34.5 million US dollars in last year from 16.2 million US dollars a year earlier, more than double.

Sesame seed exports recorded the strongest growth, increasing to 51.6 million US dollars from 7.1 million US dollars in 2024, while gold exports rose sharply to 11.8 million US dollars from 482,000 US dollars.

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Coffee exports were broadly unchanged at about 2.6 million US dollars. Other products shipped to South Korea included cut flowers, seaweed, spices, fish and fish products, as well as selected manufactured goods.

South Korea’s exports to Tanzania were dominated by electrical transformers, motor vehicles, flat-rolled iron and steel products, therapeutic blood products, and used clothing and household textiles.

Despite the recent gains, TanTrade said Tanzania has yet to fully exploit opportunities in the Korean market.

The agency identified tobacco, gold, coffee, sesame seeds, cashew nuts and cocoa beans as products with strong potential for increased exports.

To deepen commercial ties, TanTrade is encouraging Tanzanian businesses to participate in trade promotion events such as the Seoul Coffee Expo while seeking greater Korean participation in the 50th Dar es Salaam International Trade Fair (DITF).

The agency also advocates joint ventures aimed at upgrading processing industries, particularly in coffee, fish and sesame value chains.

Dr Khamis said closer industrial cooperation and the adoption of Korean technologies, including modern irrigation systems, could help Tanzania raise productivity, expand exports and secure a larger share of the Korean market.