Tanzania and Africa deserve extra focus within the UK’s commerce technique

The UK’s new commerce technique, printed this month, set out a imaginative and prescient for securing the nation’s place in a aggressive international economic system. It spoke of “seizing new alternatives,” “increasing partnerships,” and “diversifying commerce,” but solely talked about Africa in passing. As a Tanzanian who deeply values my nation’s historic relationship with the UK, this felt like a missed alternative.

As a result of the truth is that this: Africa is residence to 13 of the 20 fastest-growing economies on the planet. My very own nation, Tanzania, is amongst them. But UK commerce with Africa has declined from 16% in 1990 to simply 2% at the moment. The UK is now not amongst Africa’s prime three buying and selling companions, neither is it a prime three buying and selling companion of any African nation. China and India at the moment are Africa’s largest buying and selling companions. This represents a marked shift, and UK-African pursuits have suffered.

However it’s not solely the UK Authorities that’s lacking out, so too are British buyers. UK international direct funding in Tanzania has lately turned detrimental, indicating a web withdrawal of capital. Tanzania isn’t alone, with each African nation dealing with a decline in UK FDI during the last decade. And the place the UK does make investments, it’s overly concentrated. South Africa alone receives 85% of all UK FDI into the continent.

But Tanzania’s economic system is increasing quickly. We’re on monitor to develop quicker within the first six months of 2025 than the G7 economies will by the tip of 2026. And the Tanzanian Shilling is among the many finest performing currencies on the planet this 12 months.

If British buyers wish to safe long-term returns, diversify provide chains, and entry to high-quality but low-cost “Made in Africa” items, then Tanzania and Africa as an entire needs to be firmly again on the radar.

There are encouraging indicators of a deepening dedication. Commerce offers have been signed post-Brexit, and this 12 months’s UK Tanzania Mutual Prosperity settlement went additional. Manufacturing Africa, a bunch supported by UKAid and delivered in collaboration with McKinsey, is selling UK manufacturing funding in six African international locations, one in all which is Tanzania, with a specific deal with mining. That is complimented by the UK-Tanzania Inexperienced Development Facility, a four-year initiative unlocking the export of Tanzania’s excessive worth crops to international markets, strengthening Tanzania’s funding ecosystem, and leveraging local weather finance.

Tanzanian alternatives for UK buyers

As a proud member of the Commonwealth, our folks, tradition, and economic system have lengthy been intertwined with Britain’s. The chance now’s to carry that relationship into the twenty first century by way of commerce, know-how, and mutual funding. Below President Samia’s management, Tanzania is pursuing one of the vital formidable and well-structured industrialisation methods in Africa. The federal government has invested closely in enabling infrastructure – vitality, rail, roads, ports, and digital connectivity – whereas streamlining regulation to draw personal funding.

Initiatives just like the Julius Nyerere Hydropower Plant, the brand new Kigongo-Busisi Bridge throughout Lake Victoria, and the nationwide rollout of the Customary Gauge Railway will create a extremely linked nation with considerable clear vitality, able to export regionally. Particular financial zones (SEZs), such because the Sino-Tan Industrial Park in Kibaha, are already attracting producers, with 71 memoranda of understanding (MoUs) having already been signed, and is anticipated to draw $3bn of capital. Tanzania additionally has a youthful inhabitants in vocational coaching, with devoted youth employment initiatives making ready a talented workforce.

We’ve acquired worldwide recognition our efforts. In accordance with the 2023 World Funding Report by UN Commerce and Growth Tanzania ranks among the many prime 10 most tasty funding locations in Africa.

There’s additionally no have to depend on religion alone. The proof of personal sector innovation and success tales on the continent are already effectively established.

Ubongo, a Dar es Salaam-based edutainment firm, reaches over 32 million households throughout Africa with high-quality instructional content material. It has secured backing from main international establishments such because the Gates Basis and USAID, proving that Tanzanian mental property can scale continent-wide.

The identical is true throughout sectors. BimaAFYA offers reasonably priced mobile-based medical health insurance to Tanzania’s casual sector. Simusolar brings solar-powered agri-tech instruments to rural farmers and fishers. And on the capital facet, Sahara Ventures is nurturing a pipeline of high-growth startups by way of Sahara Sparks, the biggest tech entrepreneurship occasion in East Africa.

Even established sectors are evolving. Tanzanian Breweries, majority-owned by AB InBev, stays one of the vital profitable listed corporations on the Dar es Salaam Inventory Alternate and a strong instance of how international capital can thrive in Tanzania’s shopper items market.

Constructing blocks in place

Collectively, these corporations and industries inform a narrative: there may be cash to be made in Tanzania and in Africa, and British capital has each purpose to take part. China and India actually are.

This isn’t only a Tanzanian view. Throughout the continent, there’s a rising name for a extra strategic and mutually helpful relationship with the UK. African international locations are working collectively to suggest a joint UK-Africa technique, aligned with the African Union’s Agenda 2063. This would come with a biannual UK-Africa summit, deeper coverage collaboration on shared priorities, and focused programme assist for inclusive progress. It’s an open invitation to construct a extra balanced partnership, together with commerce. 

For these looking for alternative in a world that more and more values resilience, diversification, and inclusive progress, Tanzania is prepared. The constructing blocks are in place to make this occur, and important progress has been made. We should construct on these for each of our proud nations to prosper.