Value addition set to boost export earnings

DAR ES SALAAM: THE growing shift from raw agricultural exports to processed and value-added products could significantly increase foreign exchange earnings and create more jobs, according to the Tanzania Trade Development Authority (TanTrade).

TanTrade Director General, Ephraim Mafuru said crops such as avocados, rice and maize were still being exported with limited processing, allowing other countries to capture more value through processing and related employment.

“The aim is that when value is added, we directly earn foreign exchange and the jobs remain in Tanzania,” he said in an interview recently.

Mr Mafuru said the opportunity extended beyond avocados to other crops that could be processed into higher-value products for domestic and international markets.

He also urged Tanzanians to support locally manufactured goods, saying stronger domestic demand would help industries expand, create jobs and increase production.

“Where something can be manufactured in Tanzania and used in the country, as TanTrade we insist that we should continue using it,” he said.

On international markets, Mr Mafuru said Tanzania was strengthening trade relations with South Africa, Kenya, China, the United States, India and Middle Eastern countries.

He identified South Africa as an important market for Tanzanian products, including gold, ceramics and flat glass.

“Tanzania exported goods worth about 2.9 billion US dollars (7.68tri/-) to South Africa last year, while imports from the country were below 1 billion US dollars (2.7tri/-),” he said.

ALSO READ: Strong global demand boosts export earnings

Mr Mafuru said sustaining export growth would require continued improvements in product quality and standards to build long-term relationships with international buyers.

He said India offered opportunities for Tanzanian fruits and vegetables, while Middle Eastern markets had strong demand for food products.

However, inadequate storage and transport infrastructure, particularly cold-chain facilities, could limit Tanzania’s ability to exploit these markets.

“TanTrade has a responsibility to promote investment in infrastructure that will enable these vegetables and fruits to be transported and reach Middle Eastern markets,” he said.

The authority also connects producers and traders with markets while helping businesses access market information and meet required standards.

Mr Mafuru said smallscale producers of tomatoes, onions and other commodities needed stronger links to markets where they could secure better prices.

He further urged regulators to help businesses meet standards rather than relying excessively on penalties and fines.