Tanzania’s horticulture industry set for growth as UK scraps tariffs

TANZANIA – The United Kingdom has recently taken significant steps to strengthen economic ties with Tanzania, focusing on the growth of the nation’s horticulture sector.

In April 2024, the UK Government eliminated the global tariff on cut flowers, reducing the rate from 8 percent to zero.

This policy, effective from April 11, 2024, to June 30, 2026, includes cut flowers from East Africa, particularly benefiting Tanzania. This move is expected to greatly impact Tanzania’s flower industry, which employs many women and youth.

Under the Developing Countries Trading Scheme (DCTS), Tanzania can now export up to 99 percent of its horticultural products to the UK market duty-free.

This initiative highlights the UK’s commitment to enhancing trade with East Africa and improving Tanzania’s position in the competitive UK flower market.

“The elimination of tariffs and duty-free access will significantly boost Tanzania’s horticulture exports, providing more opportunities for our farmers,” said a spokesperson from Tanzania’s Ministry of Agriculture.

Tanzania’s horticulture exports have grown steadily, reaching USD 87 million over the past five years. In 2023 alone, Tanzania exported 1,100 tons of flowers worth USD 62.31 million. This growth reflects the sector’s potential and the positive impact of favorable trade policies.

Meanwhile, in neighboring Kenya, the Ministry of Agriculture and the Agriculture and Food Authority (AFA) have introduced a new levy on the import and export of food crops, set to take effect on July 1, 2024. This development has drawn mixed reactions from various stakeholders in the agricultural sector.

The AFA announced the levy in a notice published on May 28, 2024. It will apply to cereals, legumes, pulses, roots, and tubers. “Pursuant to the provisions of these regulations, the Authority through the Food Crops Directorate hereby notifies all food crops importers and exporters that starting July 1, 2024, the imposition of levies will commence,” the notice stated.

The Kenyan government argues that this levy is necessary to support local businesses and farmers. Officials believe that strong domestic industries are vital for economic self-sufficiency.

The new levy is seen as a step toward leveling the playing field for both small and large-scale farmers in Kenya.

“By implementing this levy, we aim to protect and promote our local farmers,” said a representative from Kenya’s Ministry of Agriculture.

While some view the levy as a necessary measure to support local agriculture, others worry about its potential impact on trade and prices.

The true effect of this policy will unfold in the coming months, as the agricultural sector adjusts to the new regulations.

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