Tanzania

Tanzania benefits from the EU's "Everything but Arms" (EBA) scheme for least developed countries. According to the World Bank classification, Tanzania is considered a lower-middle income economy with a per-capita income of $ 1.200 (2022). Most recently, preferential imports from Tanzania amounted to €786,5 million in 2022, a significant increase compared to the previous year.

What is the EBA?

The “Everything but Arms”(EBA) scheme is a permanent arrangement covering Least Developed Countries (LDC’s) as classified by the United Nations. This arrangement enables duty-free and quota-free access for all products (7200 products in total) originating in LDC’s except for arms and ammunition. Different from the Standard GSP and GSP+, LDC’s are not excluded from the scheme if they benefit from other preferential arrangements.

Tanzania flag

At a glance: EBA beneficiaries' preferential imports to the EU

group

65,50 M

Population

account_balance
Presidential Republic

Government

trending_up

4.60%

GDP Growth

equalizer

4%

Inflation

money

$ 75,73 B

GDP

36 ^

Freedomhouse index

4 -

ITUC Global Rights Index

34.2 v

Environmental Performance Index

Facts about Tanzania's economy

Economic Growth

With average annual growth rates of 6-7%, Tanzania can look back on substantial economic growth in the last decade. Tanzania’s economy has been resilient, growing by 5.2% in 2023 compared to 4.6% in 2022.

Export Products

Tanzania's main export articles are gold, precious stones and metals, tobacco, sesame seeds, coffee, peas, and beans, as well as different medium and light oils.

Trade Partners

China, UAE, and India are the most important trading partners for Tanzania, accounting for a share of about 44%. The most important export markets for Tanzanian products are India and UAE.

Economic Structure

Tanzania benefits from its wealth in natural resources. The country possesses considerable mineral deposits with gold being the most important one. Other minerals include coal, diamonds, and tin. The agricultural sector still provides the livelihood for the majority of the population. The most important cash crops are coffee and cotton as well as cashews, tobacco, and sisal. These commodities build the foundation for Tanzania's industrial sector which focusses on food processing, textiles, brewing, and cigarette production. The services sector remained the main driving force behind Tanzania’s overall economic growth, expanding by 7.3%, supported by buoyant economic activities in financial and insurance, transport and storage, and trade and repair subsectors.

Gold Production

With an annual production of about 50 tonnes, Tanzania is one of the leading producers of gold in Africa. Gold also accounts for the majority of Tanzania’s export earnings, leaving it vulnerable to fluctuations in world gold prices.

Trade with the EU

Total trade with the EU summed up to €2,094 million in 2022. With a share of 7%, the EU is the fifth most important trading partner for Tanzania.

Tanzania and the EU (2022)

Imports from Tanzania by product section

Imports from Tanzania over time (in € m)

TANZANIA AND THE EU’s GSP

Economic Impact

33%

About one third of Tanzania's exports to the EU market are eligible for EBA preferences.

95.50%

With a preference utilisation rate of 95.5%, Tanzania makes considerable use of EBA preferences.

Preference utilisation and export diversification

Tanzania's imports to the EU

Preference Utilisation vs. total eligible imports

Tanzania takes good advantage of the preferential access to the EU market. The preference utilisation rate increased substantially in the post-reform period. Tobacco accounts for the largest share of EU imports from Tanzania, followed by coffee by non-industrial diamonds. However, these two products are almost entirely traded using zero most-favoured-nation duties.

The largest product sections under EBA

More than one third overall EU imports from Tanzania are eligible for preferences granted by the EBA. The three main product sections – tobacco, fish, plants and fruits and vegetables – make use of EBA preference for more than 80% of eligible imports.

SUSTAINABLE DEVELOPMENT

The preferential access to the EU market granted by the EBA scheme is not bound to the ratification of international conventions. Tanzania has ratified 14 out 15 core international convention on the protection of human rights and labour standards. In addition, Tanzania has ratified 8 conventions on the protection of the environment and 4 good governance conventions.

Core international conventions on human rights and labour standards

Ratified

  • Convention on the Prevention and Punishment of the Crime of Genocide (1948)
  • International Convention on the Elimination of All Forms of Racial Discrimination (1969)
  • International Covenant on Civil and Political Rights (1976)
  • International Covenant on Economic Social and Cultural Rights (1976)
  • Convention on the Elimination of All Forms of Discrimination Against Women (1981)
  • Convention on the Rights of the Child (1990)
  • Convention concerning Forced or Compulsory Labour, No 29 (1930)
  • Convention concerning Freedom of Association and Protection of the Right to Organise, No 87 (1948)
  • Convention concerning the Application of the Principles of the Right to Organise and to Bargain Collectively, No 98 (1949)
  • Convention concerning Equal Remuneration of Men and Women Workers for Work of Equal Value, No 100 (1951)
  • Convention concerning the Abolition of Forced Labour, No 105 (1957)
  • Convention concerning Discrimination in Respect of Employment and Occupation, No 111 (1958)
  • Convention concerning Minimum Age for Admission to Employment, No 138 (1973)
  • Convention concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour, No 182 (1999)

Not Ratified

  • Convention Against Torture and other Cruel, Inhuman or Degrading Treatment or Punishment (1987)

Additional Conventions

  • Convention on International Trade in Endangered Species of Wild Fauna and Flora (1973)
  • Montreal Protocol on Substances that Deplete the Ozone Layer (1987)
  • Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal (1989)
  • Convention on Biological Diversity (1992)
  • The United Nations Framework Convention on Climate Change (1992)
  • Cartagena Protocol on Biosafety (2000)
  • Stockholm Convention on persistent Organic Pollutants (2001)
  • Kyoto Protocol to the United Nations Framework Convention on Climate Change (1998)
  • United Nations Single Convention on Narcotic Drugs (1961)
  • United Nations Convention on Psychotropic Substances (1971)
  • United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988)
  • United Nations Convention against Corruption (2004)

EU-Tanzania Bilateral Development Assistance

DG INTPA

Access all info about EU-Tanzania relations on the International Partnerships website: https://international-partnerships.ec.europa.eu/countries/tanzania_en

Opportunities in Tanzania

  • Regional trade hub with its important port in Dar es Salaam and good connections to Uganda, Rwanda, Burundi and Zambia
  • High political stability and the third largest economy in East Africa
  • One of the largest domestic markets in Sub-Saharan Africa with a population of about 60 million

Contact points