Tanzania targets $400m export losses through innovation

DAR ES SALAAM: TANZANIA has launched a new innovation programme aimed at cutting annual losses of up to US$400 million caused by the export of raw materials with little or no processing.

The initiative, known as Grand Challenges Tanzania (GC-TZ), seeks to turn scientific research into practical solutions that can create jobs, strengthen local industries, and add value to Tanzanian products before they reach international markets.

Information made available to this Journalist from the Tanzania Commission for Science and Technology (COSTECH) indicates that the country loses between US$300 million and US$400 million every year by exporting raw commodities and importing finished products at much higher prices.

The innitiative was launched in Dodoma as the country steps up efforts to achieve its Vision 2050 goal of building a US$1 trillion economy. Innovation, industrialisation, and value addition are expected to play a central role in that transformation.

Launching the initiative, Deputy Minister for Education, Science and Technology Wanu Hafidhi Ameir said Tanzania needs homegrown solutions to address development challenges and drive economic growth.

She said the programme comes at a crucial time as the country begins implementing Vision 2050.

Despite progress in many sectors, she noted that major challenges remain, especially in healthcare, where rising cases of cancer, diabetes, kidney disease, and heart conditions continue to put pressure on the health system.

Ms. Ameir said GC-TZ will support the development of affordable technologies for disease diagnosis, vaccine production, pharmaceutical manufacturing, medical equipment, and disease surveillance.

The programme will focus on four priority areas such as health, food security and nutrition, climate resilience and environmental conservation, and emerging digital technologies.

It is also expected to boost farm productivity, reduce post harvest losses, improve food security, and expand access to clean energy solutions.

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“Achieving the aspirations of Vision 2050 requires deliberate investment in research and innovation that responds directly to the challenges facing our people,” Ms. Ameir said.

She called on government institutions, researchers, private companies, civil society organisations, and development partners to support the initiative.

At its core, GC-TZ aims to bridge the gap between research and real-world impact. The goal is to ensure scientific discoveries lead to products, services, and technologies that improve lives and support economic growth.

COSTECH Director General Dr Amos Nungu said countries achieve the greatest innovation gains when research, funding, and national priorities are aligned.

He said Tanzania has already built a strong foundation for science, technology, and innovation through sustained investment in research and skills development.

More than Sh129 billion has been mobilised through the National Fund for the Advancement of Science and Technology to support research, innovation, scientific infrastructure, and capacity building. Of that amount, over Sh85 billion came from the government.

“Tanzania has highly capable researchers and innovators. What is needed now is a stronger link between research and the development outcomes people expect to see,” Dr Nungu said.

Professor Ladislaus Mnyone said the country’s ambition to become a high income economy will depend on its ability to turn knowledge into productivity, industrial growth, and competitive businesses.

He said Tanzania can no longer rely on exporting raw materials while importing costly finished products.

According to Prof Mnyone, important groundwork has already been laid through the National Science, Technology and Innovation Master Plan and the establishment of research desks in all 90 district councils.

He said GC-TZ will help identify promising local innovations, support their development, and expand their use across communities and industries.

The programme has also won support from the research community.

Ifakara Health Institute Executive Director Honorati Masanja said stronger private sector participation will be essential in turning research findings into marketable products and services.

The launch also marked the opening of the programme’s first funding window, which will support innovations aimed at improving health and nutrition outcomes for mothers, newborns, and children.

Officials say the funding call will test the programme’s ability to identify and scale high impact local innovations.

Beyond the launch itself, GC-TZ reflects a broader shift in Tanzania’s development strategy. The country is seeking to move away from a dependence on raw commodity exports and build an economy powered by knowledge, technology, and innovation.

Analysts say the initiative could help transform scientific research into a driver of economic growth, strengthen industrial competitiveness, and reduce dependence on imported technologies.

For Tanzania, the challenge is no longer generating knowledge. It is turning that knowledge into businesses, industries, and exports that create wealth at home rather than abroad.