By Business Insider Reporter
Tanzania has emerged as one of the biggest beneficiaries of East Africa’s unexpected export surge to the United States, despite broad tariffs introduced in April. Fresh data from the United Nations Economic Commission for Africa (UNECA) shows that Dar es Salaam’s economy is capitalizing on buoyant global commodity markets, particularly gold, alongside robust intra-African trade growth.
With gold prices soaring by more than 60 percent between January 2024 and July this year, Tanzania’s mining sector has cemented its position as a key export driver.
Gold now anchors the country’s trade profile, reflecting a wider regional trend where minerals account for more than half of total exports.
UNECA’s report highlights that Tanzania, together with neighboring Uganda, tapped into rising global demand to expand its earnings from mineral exports. This has bolstered the resilience of the country’s economy at a time when manufacturing’s share of exports across East Africa has slipped to just 17.5 percent.
Agriculture adds to export momentum
Beyond minerals, agriculture remains central to Tanzania’s export portfolio. Coffee and tea prices nearly doubled over the past 18 months, boosting earnings for farmers and cooperatives.
While Uganda and Kenya led in coffee and tea volumes, Tanzania’s diversified agricultural exports – including cashew nuts, horticulture and fisheries – also contributed to steady growth.
East Africa defies US tariffs
UNECA figures show that, regionally, the Democratic Republic of Congo recorded the sharpest rise in exports to the US, adding over US$1 billion between April and July compared to the same period in 2024.
Ethiopia and Kenya also posted strong gains, rising 95 percent and 22 percent, respectively.
Although the US tariffs applied to Ethiopia and Kenya were around 10 percent, East African exporters still found openings in the American market, largely due to trade-diversion effects and persistent US demand for commodities.
For Tanzania, the indirect benefit has been higher commodity prices globally, cushioning its exporters.
Regional integration gains ground
The UNECA data also underscores the growing weight of intra-African trade, with East African Community (EAC) trade topping US$11 billion in 2024 – a 22 percent jump from the previous year.
Intra-African exports grew 8.5 percent, compared with just 0.4 percent growth to markets outside the continent.
For Tanzania, the AfCFTA presents a unique opportunity to deepen value chains in sectors such as textiles, cement, chemicals and pharmaceuticals, and to reduce the country’s overreliance on raw commodities.
Preparing for a post-AGOA world
Even as Tanzania and its neighbors enjoy the export surge, the region faces uncertainty over the African Growth and Opportunity Act (AGOA), the US trade deal set to expire in 2025.
UNECA has called on East African governments, including Tanzania’s, to prepare for a post-AGOA era by diversifying markets, investing in manufacturing, and strengthening regional supply chains.
“Tanzania’s current performance reflects the strength of commodities,” UNECA’s report noted. “But sustaining resilience will require industrial revival and greater integration into African value chains.”
Outlook
For Tanzania, the export windfall offers short-term relief and confidence in the resilience of its economy.
Yet, the heavy tilt toward gold and other commodities highlights the urgent need to invest in manufacturing and value addition. Analysts warn that unless Tanzania moves beyond primary exports, its fortunes will remain tied to global price cycles – leaving the country vulnerable when the boom fades.
