Tanzania has made significant progress in its trade competitiveness, now ranking as the fourth most attractive country for trade in Africa, according to the latest Standard Bank Africa Trade Barometer (SB ATB) released on Thursday. This advancement, up from eighth place, highlights the country’s growing role in African trade, underpinned by substantial infrastructure investments and enhanced access to financial services.
The SB ATB, which evaluates trade conditions across ten African nations, points to Tanzania’s strong business environment and improved cross-border trade as key factors behind its leap in the rankings. ‘As Africa moves towards greater integration under the African Continental Free Trade Area (AfCFTA), the Standard Bank Africa Trade Barometer offers critical insights into the opportunities and challenges faced by African businesses and stakeholders in facilitating trade,’ said Philip Myburgh, group head of trade at Standard Bank Business and Commercial Banking.
While Tanzania celebrated its ascent, the report also revealed a concerning decline in Ghana’s trade competitiveness, which dropped from third to seventh position. Ghana’s economic landscape has become increasingly volatile, with a deteriorating macroeconomic environment undermining business confidence. The report highlighted that many Ghanaian businesses, particularly small and medium-sized enterprises (SMEs), are struggling with access to foreign currency, particularly US dollars, essential for imports.
The SB ATB assesses various factors influencing Africa’s trade potential, including trade openness, macroeconomic stability, infrastructure, governance, and access to finance. The report aims to bridge information gaps in African trade data, offering businesses, governments, and investors vital insights to drive sustainable growth.
In addition to Tanzania’s rise, Mozambique saw an improvement from fourth to third place, while Nigeria and Zambia also advanced. Meanwhile, Uganda and Kenya experienced slight declines, with Uganda slipping from seventh to ninth and Kenya from fifth to sixth. South Africa and Namibia retained their top positions, while Angola remained at the bottom of the index.
Despite an overall positive outlook, the report warns of ongoing challenges across the region, including high inflation rates projected to reach 9.9% in 2024, driven by currency depreciation and climate-related events like droughts and floods. These factors will require African economies to adopt prudent economic management and diversification strategies to build resilience.
‘The Standard Bank Africa Trade Barometer serves not only as a scoreboard of trade competitiveness but also as a strategic tool for businesses aiming to navigate the complex trade environment in Africa,’ Myburgh added, emphasising the need for reliable trade data to inform decision-making in this dynamic landscape.
