weighted score 4.0 · ten dimensions
Sourcing Attractiveness Index · ten dimensions
Tanzania
Labour cost, supply base depth, logistics infrastructure, trade access, and innovation scores for Tanzania as a sourcing destination.
Labour cost competitiveness
8
Very low manufacturing and agricultural wages. Among the cheapest labour markets in East Africa. Significant cost advantage for labour-intensive processing.
Supply base depth
3
Narrow supply base concentrated in agricultural commodities and gold mining. Limited manufacturing ecosystem. Few tier-2 or tier-3 suppliers available domestically.
Logistics & infrastructure
3
Dar es Salaam port congestion is a binding constraint. Road network quality variable outside major corridors. SGR railway improving but not yet fully operational.
Workforce skills
3
Large young population but vocational and technical training capacity limited. English widely spoken, which is an advantage. Engineering and manufacturing skills base is thin.
Scalability
6
Agricultural commodities can scale with investment in processing capacity. Mining output expandable. Manufacturing scalability constrained by infrastructure and supply base limitations.
Ease of doing business
3
Bureaucratic processes remain complex. Regulatory predictability has improved under President Samia Hassan but remains below regional leaders like Kenya and Rwanda.
Trade access & tariffs
2
EU-EAC EPA provides preferential access for eligible goods. EBA (Everything But Arms) status applies. However, rules of origin compliance and certification capacity can be challenging.
Sustainability baseline
3
Limited corporate ESG infrastructure. Artisanal and small-scale mining sectors present environmental and social risks. Climate adaptation frameworks are developing.
Innovation & IP
6
Low domestic R&D investment. Patent activity minimal. Mobile money innovation (M-Pesa) demonstrates fintech capacity but broader innovation ecosystem is nascent.
Quality standards
3
Tanzania Bureau of Standards (TBS) operational but certification and quality management systems are not widely adopted outside export-oriented firms. Third-party audit infrastructure limited.
Labour & Cost Competitiveness
Labour & Cost Competitiveness
- Wage levels
- Tanzania has very low manufacturing wages, with minimum wages in the range of USD 60–80/month depending on sector. Labour cost is among the cheapest in East Africa, making it attractive for labour-intensive processing and light manufacturing.
- Demographic advantage
- Population of approximately 65 million with a median age under 18. The young, growing workforce represents a significant long-term labour pool, though vocational training capacity remains limited relative to demand.
- Key export sectors
- Coffee, cashew nuts, tobacco, and sisal are the primary agricultural exports. Gold mining is a significant contributor to export revenue. These sectors offer sourcing opportunities but require supply chain due diligence.
Infrastructure & Trade Access
Infrastructure & Trade Access
- Port infrastructure
- Dar es Salaam port is the primary gateway but suffers from chronic congestion and limited berth capacity. Expansion projects are underway but current throughput constrains export competitiveness, particularly for time-sensitive goods.
- SGR railway
- The Standard Gauge Railway (SGR) connecting Dar es Salaam to inland regions is improving freight logistics. When fully operational to Mwanza and beyond, it will substantially reduce transport costs for agricultural and mining exports.
- EU-EAC EPA
- Tanzania benefits from the EU-East African Community Economic Partnership Agreement, providing preferential tariff access to EU markets for eligible goods. This is a meaningful advantage over non-EPA competitors for agricultural exports.