Tanzania: Gold, horticultural exports remain resilient amid COVID-19 crisis

Tanzania's exports of gold, manufactured goods, and horticultural products have shown resilience and growth in the face of the COVID-19 crisis, according to the Bank of Tanzania (BoT). The value of these exports increased during the year ending July 2021, despite the pandemic disrupting economic activities across the world. Uhuru Ombeni, Senior Investment Analyst at Tanzania Securities, shared insights on the factors contributing to this unexpected growth in a recent interview with CNBC Africa. Ombeni explained that Tanzania took a unique approach to managing the pandemic in 2020, which allowed businesses to continue operating and exports to thrive. The country's proactive stance in dealing with COVID-19 closures and restrictions played a significant role in maintaining export levels. The stability of prices and increased demand for gold globally contributed to a boost in gold exports from Tanzania. During uncertain times, individuals sought to store wealth in assets like gold, driving up the demand for the precious metal. Tanzania's local production and mining operations further supported the increase in gold exports. Additionally, the country's manufacturing sector saw growth in exports as it filled gaps left by other countries facing production challenges during the pandemic. Ombeni highlighted the increase in exports of manufactured goods and horticultural products as key drivers of Tanzania's export resilience. The country's proactive response to the pandemic and stable local demand helped sustain export levels, particularly in non-traditional products like horticultural goods. However, traditional exports such as tea and coffee experienced a decline as global demand shifted towards essential goods for survival. Ombeni emphasized that foreign markets for traditional goods were impacted by the pandemic, leading to a decrease in export volumes for these products. Despite challenges in traditional exports, Tanzania's horticultural sector showed promise with a 36% increase in exports, particularly in products like flowers. The country's strategic positioning and resources have enabled Tanzania to tap into the global demand for horticultural products, showcasing potential for continued growth in this sector. Ombeni discussed the competitive landscape in the cement industry, highlighting the rivalry between local cement producer Tanga Cement (TPCC) and West African competitor Dangote Cement. While Dangote Cement targets a niche market segment, TPCC enjoys a broader market share, particularly in government projects. The competition between the two companies primarily centers on pricing strategies and the nature of clients they serve. Overall, Tanzania's export resilience in the face of the pandemic reflects its proactive stance and strategic positioning in key sectors like gold mining and horticulture. The country's ability to adapt to changing global demand dynamics and maintain stable export levels underscores its resilience and potential for future growth.