Trade Performance of Agricultural Commodities of Tanzania

Abstract

Agriculture in Tanzania is the foundation of the economy as it supports employment, food production and export. In terms of agricultural trade, Tanzania has seen growth in both imports and exports, hence, emerging world demand for agricultural commodities offers a great opportunity. Tanzanian agricultural exports have increased in diverse; however, the contribution of agricultural export in the total export of the country has declined. The present study explored the trade performance and export competitiveness of Tanzania's major agricultural exports (cash crops) from 1996–1997 to 2016–17. Exports of agricultural commodities increased over the last decade although its share in total national exports declined. The CGR of agricultural export was 11.32 per cent, whereas that of agricultural imports was 15.64 per cent. Tanzania's imports decreased in terms of percentage share in total national imports from 14.47 per cent in 1997–98 to 6.29 per cent in 2016–17, whereas, agricultural exports declined in recent years. Tanzania's agricultural export faced problems in regulations of importing countries requirements, SPS measures and other standards, as well as cost competitiveness problem due to high transportation cost and marketing margins.