Tanzania’s 51-million population consists of mostly young people aged between 0-14 years old and middle-aged people from 25-54 years old. This nation’s latest Gini Index recorded in 2007 was 37.6 with ‘0’ representing perfect income distribution and ‘100’ standing for total inequality. Tanzania’s lowest earning 10% share only 2.8% of the national income while the highest earning 10% enjoy almost 30% of it.
31.6% of Tanzania’s total population are living in urban areas, with the country having a 5.36% annual rate of urbanization. DAR ES SALAAM, Tanzania’s capital city, and Mwanza are Tanzania’s most populated cities.
What do people import into Tanzania?
- Consumer goods
- Machinery and transportation equipment
- Industrial raw material
- Crude oil
Which are Tanzania’s favourite import partners? (percentage of total imports)
- China (27.6%)
- India (24.5%)
Which are Tanzania’s top shipping ports?
All sea trades are monitored through Tanzania’s seaports and lake ports, which are managed and operated by the Tanzania Ports Authority located in Dar es, Salaam. Dar es Salaam also happens to be the country’s principal port, accounting for 95% of the total sea trade, and with other main ports being the Tanga and Mtwara ports. Tanzania also has three small seaports, namely Kilwa, Lindi, and Mafia, and eleven lake ports distributed throughout Lake Victoria, Lake Tanganyika, and Lake Nyasa.
Which are Tanzania’s top cargo airports?
The Tanzania Airports Authority operates all airports except the Kilimanjaro International, which is owned by the Kilimanjaro Airport Development Company. The main airport of the country, however, is the Julius Nyerere International Airport, which handled a total of 21.2 million tons of cargo in 2014.
What are Tanzania’s top import regulations?
Imports from these seaports and airports have certain rates of the tariff, as exacted upon by the East African Community Customs Union. Raw materials, capital goods, agricultural imports, and certain medicines and medical equipment are at 0%, intermediate goods, and other essential industrial imports are at 10%, and finished goods are at 25%.
Certain commodities are considered as free-import goods, and these include (for over 16 year-olds) 200 cigarettes, 50 cigars, 250 grams of tobacco, 1 imperial pint of spirits, foreign currency, and any noncommercial amount of gifts and other items for personal use. On the other hand, local currency (the Tanzanian shilling) and products such as narcotics, pornography, and such other counterfeit items are prohibited.
Other items that are allowed to be imported but have certain restrictions and requirements such as health certificates, permission from the embassy and bonds include live animals, plants, foodstuff, seeds, weaponry, ammunition, medication, video equipment, radios, tape recorders, and musical instruments.
What are Tanzania’s import tax, duties, and tariffs?
Import duties in Tanzania are calculated based on the CIF value which means the sum of the value of imported goods plus the cost of shipping and insurance. Added to duty, there is also Sales tax and Excise duty.
Tanzania abides by the duty and tariff systems East African Community Common External Tariff. Customs duty is on an average rated at 25%. The standard VAT rate when importing to Tanzania is 18% of the CIF value, duty, and other taxes. Excise is charged on alcoholic beverages and tobacco.
A steady growth in Tanzania’s disposable income shows a trend towards citizens shifting towards purchasing beyond their basic necessities. This has enabled rapid growth in the retail sector with shopping malls sprouting rampantly in the urban areas. But while the country moves into the next phase of its economic revolution, open markets and corner shops are still a common feature.
Today, Tanzania has the 9th largest economy in Sub-Saharan Africa. Based on market research, with the country’s significantly reduced inflation rate during the previous years and its steadily increasing GDP, many different businesses from countries around the world are starting to recognize Tanzania’s growing business potential. In this dynamic business environment, it’s important to identify the correct distribution channels for a product to reach its target consumer apart from knowing other local nuances.
Tanzania’s business appeal also depends on its air transport system, political stability, free market economy, and strategic location.