Tanzania’s meat export industry has seen a remarkable rise, with exports increasing by 41.1% to reach US$86.31 million in the last financial year. This growth is highlighted in a new 2023 State of Economy report, which details that the country exported 14,701.2 metric tonnes of meat last year, a significant rise from the 10,416.0 metric tonnes valued at US$42.5 million exported in the preceding year.
The increase in meat exports is due to the improved business and investment environment within Tanzania, alongside strengthened meat markets in South Asian countries, Arab nations, Kenya, and Comoros.
The demand from these regions has been pivotal in driving the export growth, showcasing Tanzania’s expanding footprint in the global meat market.
Arab countries constitute a significant portion of the foreign markets contributing to this rise in exports. The improved trade relations and market expansion in these regions have bolstered Tanzania’s meat export industry, ensuring a steady and lucrative market for its products.
This growth reflects the country’s strategic efforts to enhance its export capabilities and market reach.
In stark contrast, Tanzania’s leather export sector experienced a decline last year. The country exported only 4,933 metric tonnes of leather, a sharp decrease from the 7,472 metric tonnes exported in 2022.
This downturn is further reflected in the export values, which dropped to approximately US$2.33 million (sh6.11 billion) from US$3.83 million (sh10.05 billion) in the previous year, marking a 39.2% decrease.
The report highlights that this decline was primarily due to traders halting leather exports to Nigeria, which accounts for over 90% of Tanzania’s leather exports.
The suspension was influenced by the general elections in Nigeria, causing a significant disruption in trade. Other export destinations for Tanzanian leather include Nigeria, Ghana, Togo, and Pakistan, but the dependence on Nigeria’s market has made the sector vulnerable to political and economic fluctuations.
In conclusion, Tanzania’s export economy is a tale of two sectors, with meat exports thriving and leather exports facing significant challenges. The impressive growth in meat exports reflects the country’s successful efforts in market expansion and business improvement. However, the decline in leather exports highlights the importance of market diversification and the potential risks of over-reliance on a single market. Moving forward, Tanzania’s ability to balance both sectors will be crucial for sustainable economic growth.
