Tanzania Sets $10 Billion Trade Goal with India

Tanzania has announced plans to expand its bilateral trade with India to over US$10 billion (approximately TZS 26 trillion) by the 2025/2026 fiscal year.

The initiative also aims to increase Indian investments in Tanzania’s pharmaceutical industry—a sector critical to improving the nation’s healthcare system.

This was revealed by Exaud Kigahe, Tanzania’s Deputy Minister for Industry and Trade, during the Tanzania–India Business Forum held in Dar es Salaam.

“Last fiscal year, trade between Tanzania and India stood at US$7 billion. Now we are working to take it beyond $10 billion,” said Kigahe.

Tanzania’s current exports to India include raw agricultural goods such as cashew nuts, coffee, and tea, as well as minerals like gold. On the other hand, India exports industrial products to Tanzania, including vehicles, machinery, ICT equipment, and pharmaceuticals.

But Tanzanian officials say it’s time to move beyond simply exporting raw materials. The government now wants to add value locally through joint ventures, foreign direct investment (FDI), and technology transfers, particularly in manufacturing.

“We are calling on Indian firms to invest in Tanzania—not just as traders but as partners in building industries,” Kigahe stated.

India currently provides around 60% of the medicines and 85% of medical equipment used in Tanzanian health institutions, according to trade officials. Now, Tanzania wants to shift from being a consumer of imported medicines to becoming a producer of pharmaceuticals, with Indian support.

During the forum, several Indian pharmaceutical companies expressed interest in setting up production facilities in Tanzania to manufacture essential drugs such as syrups, capsules, and injectables.

This effort supports Tanzania’s goal to bolster public health infrastructure, reduce import costs, and ensure supply chain resilience in case of future health crises like the COVID-19 pandemic.

India has been a long-term investment partner in Tanzania, with over 700 registered projects worth more than US$4.2 billion since 1997, contributing to job creation in sectors such as real estate, transport, logistics, and healthcare.

Tanzania is also promoting Special Economic Zones (SEZs) in regions such as Bagamoyo, Dodoma, Kigamboni, and Mwanza, offering tax holidays, streamlined registration, and zero import duty for capital goods.

Through the Tanzania Investment Centre (TIC) and Tanzania Export Processing Zones Authority (EPZA), the country is actively creating an investor-friendly environment aligned with the goals of Vision 2025.

The push for increased trade with India also complements Tanzania’s broader ambitions to become an East African logistics and industrial hub. With key ports along the Indian Ocean and improved transport corridors, Tanzania is positioning itself as a gateway for trade to landlocked countries like Zambia, Burundi, Rwanda, and DR Congo.

India’s growing interest in Africa–Asia trade corridors also fits into this narrative, particularly with Tanzania’s strategic geographic position and increasing investment in infrastructure, energy, and digital innovation.

To hit its $10 billion trade target, Tanzania plans to: