As a least-developed country (LDC), Tanzania is a beneficiary of the EU's "Everything but Arms" (EBA) arrangement. The World Bank classifies Tanzania as a lower middle-income economy with a per-capita income of $1,224 in 2023. Total EU imports from Tanzania amounted to a record €976 million in 2023, and preferential imports to €283 million - also exceeding the values of previous years.
The EBA arrangement covers all LDCs as classified by the United Nations. This arrangement enables duty-free and quota-free access for all products originating in LDCs except for arms and ammunition. Unlike beneficiaries of the Standard GSP and GSP+, LDCs are not excluded from the scheme if they benefit from other preferential arrangements or agreements with the EU.
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With average annual growth rates of above 5%, Tanzania can look back on substantial economic growth in the decade to 2019. Post-covid, Tanzania’s economy has been resilient, with the growth rate returning to 5.1% in 2023.
Tanzania's largest export by far is gold, with other precious stones and metals and petroleum oils also being important. A range of agricultural products, including tobacco, sesame seeds, coffee, peas, and beans, are also large exports commodities.
China, the UAE, and India are the most important trading partners (and suppliers) for Tanzania, accounting for a share in total trade of about 44% in 2023. The most important export markets for Tanzanian products are India, South Africa and the UAE.
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.
With an annual production of about 50 tonnes, Tanzania is one of the leading producers of gold in Africa. Gold also is the main export earner for the country (in 2023, about 42% of total export value), leaving it vulnerable to fluctuations in world gold prices.
Total trade with the EU amounted to €2.1 billion in 2023. With a share of 9%, the EU was the fourth most important trading partner for Tanzania, and also the fourth most important export market.
Share of Tanzania's exports to the EU that were eligible for EBA preferences in 2023.
Tanzania's preference utilisation rate in 2023.
Share of zero-duty imports from Tanzania. Most imports are duty-free under normal EU tariffs.
About 30% of the EU's imports from Tanzania are eligible for EBA preferences; most other imports - including mineral products, coffee and diamonds - are duty-free under the EU's normal tariffs. Preference-eligible imports decreased steadily from 2015 to 2021 but since then strongly increased again, reaching almost €300 million in that year. Tanzania takes good advantage of the preferential access to the EU market. The preference utilisation rate has been 95% and more since 2015. All major product groups have utilisation rates above 90%,
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.
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.
Access all info about EU-Tanzania relations on the International Partnerships website.