Tanzania is unable to fully access the vast US market under the African Growth Opportunity Act (AGOA), a meeting of Tanzanian business people was told in Dar es Salaam early this week.

Exporters from Tanzania to the US complained of high freight charges on bulky and heavy items like honey and sisal products.

Lack of loans to facilitate efficient movement of goods is not readily available from financial institutions which demand collateral, the meeting was told.

The US requires strict observation of sanitary regulations on goods exported into their country. Packaging requirement demands a high quality status, and needs information in line with the ones described on US catalogues.

Also, the meeting was told that the US needs product labeling which demands a description of the history of the product, conditions as described in international standards.

The meeting was told that Tanzania has products that the US does not have but the problem is a guaranteed market.

It was proposed that Tanzania needs should establish ample Export Processing Zones where production can take place for have goods, which can compete internationally.

Cashew nuts, sisal, mangoes and other types of farm produce have a high demand in the US and the European Union. What is required is the Government to take deliberate moves of facilitating the exporters with the support they need: loans for the procurement of machines and raw materials.

Analysing what is required beforehand is important from the Tanzanian side.

Tanzania was advised to share experiences from International Trade Forum where it can gain knowledge to plan businesses and influence the Government to give support to private businesses.

Last year a delegation of the Tanzanian business people toured the US.

The criteria were whether their businesses produce sufficient quantities for export, if the products were of the quality required for the highly competitive American market and whether the products are unique to the US markets.

Others included the length of time that the business has been producing and if exports to the US will be of great benefit to the largest number of Tanzanians.

Except for one person, it was the first time for the delegates to visit the US. They have established business relationships with partners in Ohio, Indiana and Michigan.

They look forward to work with US businesses to take the benefit of the AGOA, which offers tangible incentives for both Tanzanian and US businesses to increase trade in both directions.

Members of the Tanzanian delegation are also interested in assisting American businesses to introduce their products and establish business contacts in Dodoma, Tanga and Dar es Salaam.

Participants from Tanzania included Damien Ruhinda, chairman and managing director of D.D. Ruhinda and Company and Joyce Mbwette, managing director of Mothers' Empowerment Group.

Others were Sima Mandi, a financial analyst and local representative of the Great Lakes Consortium in Tanzania since 2001; and Angelina Mbaga, managing director of Maua Arusha.

The American Embassy's cultural attach, David Colvin, chaired the meeting.

Latest AGOA Trade Data on AGOA.info

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