China trade rise as imports outpace export growth

TANZANIA: TANZANIA’S trade with China expanded last year, but rising imports continued to outpace export growth, widening the overall trade gap.

According to the 2026/27 budget speech delivered by Industry and Trade Minister Judith Kapinga, exports to China rose by 15.7 per cent to 512.6 million US dollars from 442.96 million US dollars a year earlier.

The trade, Ms Kapiga told the House, was supported by preferential market access under which Tanzania benefits from a 98 per cent tariff exemption on goods entering the Chinese market. Key export products included minerals and concentrates, fish fillets, sesame seeds, tobacco, cotton, coffee and sesame oil.

Despite the improvement in export performance, the trade relationship remained heavily import-driven. Imports from China increased by 18.1 per cent to 5.64 billion US dollars last year, up from 4.78 billion US dollars the previous year, reinforcing China’s position as one of Tanzania’s largest trading partners.

The import basket continued to reflect Tanzania’s reliance on industrial and manufactured goods. Major imports included machinery and equipment, agricultural tools, iron and steel products, galvanised roofing sheets, transformers, vehicles and construction-related pipes.

Two- and three-wheeled motorcycles also featured prominently, underscoring demand for affordable transport solutions in urban and rural markets.

ALSO READ: Historic China-Tanzania ties inspire modern cultural, economic cooperation

The widening gap highlights the structural imbalance in Tanzania’s trade with China, where exports remain largely concentrated in primary commodities while imports consist of higher-value manufactured and industrial inputs.

While the growth in exports signals improving access and competitiveness in selected agricultural and mineral products, it has not yet matched the pace of import demand driven by infrastructure development and industrial expansion.

China’s dominance in supplying capital goods and industrial inputs continues to support Tanzania’s construction and manufacturing sectors, even as policymakers seek to increase local production capacity and diversify export earnings.

The latest figures underscore both the opportunities and challenges in Tanzania– China trade relations: Expanding market access is lifting exports, but strong demand for industrial goods is accelerating import growth at a faster rate, keeping the trade balance firmly tilted toward Beijing.