President Samia’s visit to Oman set a benchmark for a better business environment for Tanzanian producers and services providers. Her trip to Oman makes her second trip to the Middle East this year, saying her government is setting a feasible environment for investors to enter the local market and Tanzanians to benefit from investment and trade investment from those countries.
President Samia’s visit to Oman has strengthened historical ties with the Middle East nation. This would leverage Tanzania’s products to penetrate Oman’s market and reduce the widening gap of trade deficit between the two countries.
Data on trade between Tanzania and Oman in 2021 indicate that Omanis had exported goods worth Tsh 244 billion to Tanzania. Tanzania had shipped to Oman goods worth Tsh 58b billion, many products being fresh foods, meat, assorted agricultural produce and meat.
With the abundance of land, water, arable land and other natural resource, Tanzania can export more that, not only to Oman but across the world. As for the case, let us understand what market is more lucrative in Oman now that Tanzanians can run after?
Oman needs a lot of food annually. According to the Oman Agrofood website, Oman’s food consumption is at 4.6% until 2023. In 2020, Oman’s food imports valued at $4.8 billion.
According to UN’s Food and Agriculture Organization (FAO), Oman’s demand for food has grown from $2.1 billion in 2010 to $4.8 billion in 2020, and the demand is going up yearly.
Tanzania can provide in abundance what Oman needs, i.e. seasonal fruits, daily products, poultry and meat. However, 57.5% of Oman’s poultry demand is met through imports. Oman is only able to meet 36% of its domestic poultry market.
Oman consumes 120,000 tonnes of refined sugar per annum. Imports 100% of it. Tanzania plans to start exporting sugar by 2025, according to President Samia. Hence, Oman can be Tanzania’s primary market.
Moreover, Oman’s Vison 2040 charter opens opportunities for the Tanzanian private sector to invest in the industry, agriculture, fisheries, mining and tourism, in addition to possible sectors like health, education, renewable energy and information technology.