Competitiveness and Performance of Tanzania Exports in East Africa Community

Abstract

The study analyze Tanzania’s export competitiveness and performance in the East Africa Community (EAC) by identifying the most competitive export products in a regional trade agreement. The scope of the study is limited to the period 2005-2011.In measuring the competitiveness of Tanzania in EAC trading agreement, the trade competitiveness index is used. UN Comtrade database at the 1 digit and 2 digit levels products using the Standard International Trade Classification (SITC) Revision 3 has been used to obtain aggregated exports data. The findings on 1 digit level products shows that, the country has greater competitiveness on manufactured products and commodities which recorded 60.7 percent and 50.5 per cent respectively. On 2 digits products Tanzania has competitiveness on fish/shellfish and animal feed which recorded 77.6 percent 58.9 percent respectively. The study recommends the incentives framework to be revised; reducing the current high costs of doing business; more skills oriented-training is necessary to improve productivity; Government should assist firms to acquire appropriate technology; strengthening institutions framework and empower institutions; Integrate industrial and trade policies; strong partnership between public sector &