Arusha. The value of goods Tanzania exports to other African countries has reached $2.65 billion, nearly double the value of imports the country receives from the continent.
According to the Arusha-based East African Business Council (EABC), data from the International Trade Centre indicates that Tanzania imported goods worth $1.5 billion from other African countries in 2023, reflecting a favourable trade balance for the nation.
In light of this, EABC’s membership and business development manager, Mr Zephania Shaidi, urged Tanzanian businesses to explore opportunities beyond local markets.
He encouraged enterprises to take advantage of the African Continental Free Trade Area (AfCFTA) to access wider markets.
Mr Shaidi made the remarks during the conclusion of a special training programme aimed at enhancing the capacity of small and medium-sized enterprises (SMEs) to navigate the AfCFTA framework.
The event brought together more than 50 representatives from industries including manufacturing, agro-processing, creative industries, transport, and government sectors.
“The continent’s participation in global value chains is low and primarily driven by commodities. To advance up the value chain, Africa needs value addition, industrialization, improved infrastructure, and the actualization of an integrated market under the AfCFTA agenda,” he said.
The Executive director of the Tanzania Private Sector Foundation (TPSF), Mr Raphael Maganga, noted that the AfCFTA links 1.3 billion people across Africa with a combined GDP of approximately $3.4 trillion, providing a significant opportunity for trade and economic growth.
“While this presents an opportunity for corporate and SME traders to export products across the continent, it is important to empower businesses with the tools and knowledge needed to access the market and compete with their counterparts,” he said.
The chairperson of the Tanzania Shippers Council (TSC), Mr Clement Kamendu, emphasised the importance of collaboration among African nations to reduce transport and logistics costs.
He highlighted that such barriers limit intra-African trade, which currently accounts for only 16 percent of the continent’s total trade volume, compared to 57 percent in Asia and 68 percent in Europe.
Economic experts argue that Africa’s participation in global value chains is minimal and largely commodity-driven.
To advance, the continent needs to focus on value addition, industrialisation, improved infrastructure, and full implementation of the AfCFTA agenda to create an integrated market.
The EABC, in partnership with the European Union Technical Assistance Facility (EU-TAF), has trained more than 50 Tanzanian SMEs on the AfCFTA framework.
The training covered key initiatives such as the Guided Trade Initiative (GTI), the AfCFTA Adjustment Fund, and value chain integration.
The programme aims to equip SMEs with the tools needed to access a market of 1.3 billion consumers, strengthening their competitiveness in the regional market.
The EABC is committed to building the capacity of East African businesses to trade effectively under the AfCFTA and plans to conduct similar workshops across the region.
A statement from the EABC stressed the importance of empowering businesses with the knowledge and tools needed to compete effectively in the AfCFTA market.
The initiative prioritises value chains in agriculture, pharmaceuticals, automotive, transport and logistics, and textiles and apparel, aiming to drive industrial growth, create jobs, and boost Africa’s global competitiveness.
The AfCFTA Adjustment Fund, established by the African Export-Import Bank (Afreximbank) and the AfCFTA Secretariat, will provide financial support, technical assistance, grants, and compensation to countries and private entities during their transition to the new trading regime. The fund’s operations are based in Rwanda.
Participants in the SME programme also engaged in value chain analysis, aiming to identify gaps and opportunities for improving products, services, and operational efficiency.
The goal is to enhance financial performance, product quality, and sustainability, ensuring a competitive edge within the AfCFTA framework.
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Air Tanzania Banned From EU Airspace Due to Safety Concerns
Several airports have since locked Air Tanzania, dealing a severe blow to the Tanzanian national carrier that must now work overtime to regain its certification or go the wet lease way
The European Commission has announced the inclusion of Air Tanzania on the EU Air Safety List, effectively banning the airline from operating in European airspace.
The decision, made public on December 16, 2024, is based on safety concerns identified by the European Union Aviation Safety Agency (EASA), which also led to the denial of Air Tanzania’s application for a Third Country Operator (TCO) authorisation.
The Commission did not go into the specifics of the safety infringement but industry experts suggest it is possible that the airline could have flown its Airbus A220 well past its scheduled major checks, thus violating the airworthiness directives.
“The decision to include Air Tanzania in the EU Air Safety List underscores our unwavering commitment to ensuring the highest safety standards for passengers in Europe and worldwide,” said Apostolos Tzitzikostas, EU Commissioner for Sustainable Transport and Tourism.
“We strongly urge Air Tanzania to take swift and decisive action to address these safety issues. I have offered the Commission’s assistance to the Tanzanian authorities in enhancing Air Tanzania’s safety performance and achieving full compliance with international aviation standards.”
Air Tanzania has a mixed fleet of modern aircraft types including Boeing 787s, 737 Max jets, and Airbus A220s.
It has been flying the B787 Dreamliner to European destinations like Frankfurt in Germany and Athens in Greece and was looking to add London to its growing list with the A220.
But the ban not only scuppers the London dream but also has seen immediate ripple effect, with several airports – including regional like Kigali and continental – locking out Air Tanzania.
Tanzania operates KLM alongside the national carrier.
The European Commission said Air Tanzania may be permitted to exercise traffic rights by using wet-leased aircraft of an air carrier which is not subject to an operating ban, provided that the relevant safety standards are complied with.
A wet lease is where an airline pays to use an aircraft with a crew, fuel, and insurance all provided by the leasing company at a fee.
Two more to the list
The EU Air Safety List, maintained to ensure passenger safety, is updated periodically based on recommendations from the EU Air Safety Committee.
The latest revision, which followed a meeting of aviation safety experts in Brussels from November 19 to 21, 2024, now includes 129 airlines.
Of these, 100 are certified in 15 states where aviation oversight is deemed insufficient, and 29 are individual airlines with significant safety deficiencies.
Alongside Air Tanzania, other banned carriers include Air Zimbabwe (Zimbabwe), Avior Airlines (Venezuela), and Iran Aseman Airlines (Iran).
Commenting on the broader implications of the list, Tzitzikostas stated, “Our priority remains the safety of every traveler who relies on air transport. We urge all affected airlines to take these bans seriously and work collaboratively with international bodies to resolve the identified issues.”
In a positive development, Pakistan International Airlines (PIA) has been cleared to resume operations in the EU following a four-year suspension. The ban, which began in 2020, was lifted after substantial improvements in safety performance and oversight by PIA and the Pakistan Civil Aviation Authority (PCAA).
“Since the TCO Authorisation was suspended, PIA and PCAA have made remarkable progress in enhancing safety standards,” noted Tzitzikostas. “This demonstrates that safety issues can be resolved through determination and cooperation.”
Another Pakistani airline, Airblue Limited, has also received EASA’s TCO authorisation.
Decisions to include or exclude airlines from the EU Air Safety List are based on rigorous evaluations of international safety standards, particularly those established by the International Civil Aviation Organization (ICAO).
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The process involves thorough review and consultation among EU Member State aviation safety experts, with oversight from the European Commission and support from EASA.
“Where an airline currently on the list believes it complies with the required safety standards, it can request a reassessment,” explained Tzitzikostas. “Our goal is not to penalize but to ensure safety compliance globally.”
Airlines listed on the EU Air Safety List face significant challenges to their international operations, as the bans highlight shortcomings in safety oversight by their home regulatory authorities.
For Air Tanzania, this inclusion signals an urgent need for reform within Tanzania’s aviation sector to address these deficiencies and align with global standards.
The path forward will require immediate and sustained efforts to rectify safety concerns and regain access to one of the world’s most critical aviation markets.
Source: allafrica.com
