Tanzania is seeking to deepen its economic relationship with Germany by encouraging companies to invest in local production, add value to resources and use the country as a base for serving markets across Africa.
The message was delivered by Industry and Trade Minister Judith Salvio Kapinga at the Invest. East Africa! German Business and Investment Forum in Dar es Salaam on September 16, where around 30 German companies and institutions met Tanzanian government and business representatives.
Kapinga said Tanzania should increasingly be viewed not only as a market for imported products, but as a production platform capable of supporting regional supply chains and exports.
The proposed model combines German capital, technology and industrial expertise with Tanzania’s natural resources, workforce, infrastructure and access to regional markets.
Tanzania and Germany already have established commercial ties, with bilateral merchandise trade increasing from approximately US$223.7 million in 2018 to US$358.7 million in 2025. Tanzania’s exports to Germany also increased from about US$34.7 million to US$56.7 million during the same period.
The government is now seeking to expand the relationship into manufacturing, agro-processing, industrial equipment, pharmaceuticals, medical technology, chemicals, construction materials, logistics, renewable energy, digitalisation, skills development and mineral processing.
At the centre of the strategy is greater domestic value addition. Tanzania wants more processing and manufacturing to take place locally rather than exporting raw materials and importing finished products.
For German companies, the approach offers an opportunity to establish production in Tanzania while accessing consumers across East Africa and other African markets.
Tanzania’s membership of the East African Community and SADC, together with its participation in the African Continental Free Trade Area, provides access to regional and continental markets. The country also has preferential access to the European Union under the Everything But Arms arrangement, subject to applicable requirements.
Logistics is another area highlighted by the investment pitch. Tanzania’s Indian Ocean coastline and transport connections into East and Central Africa create potential demand for warehousing, cold-chain facilities, freight forwarding, logistics technology and integrated supply-chain services.
The government is also seeking investment in mineral processing and beneficiation as it looks to move beyond the extraction of resources towards greater industrial development. German engineering companies, equipment manufacturers, technology providers and environmental-service firms could participate in these areas.
Tourism, renewable energy, digitalisation and carbon markets are also part of the broader investment opportunity being presented to German businesses.
Skills and technology transfer form another important component of the proposed partnership. Kapinga highlighted opportunities for cooperation in vocational training, apprenticeships, industrial research, technology transfer, entrepreneurship and innovation.
Deputy Minister for Foreign Affairs and East African Cooperation James Ole Millya also encouraged German companies to explore partnerships and joint ventures with Tanzanian businesses and the wider East African Community.
The regional market opportunity was reinforced by East African Community figures showing that intra-EAC trade increased from US$9.17 billion in 2019 to US$19.54 billion in 2025. Total EAC trade also rose from US$79.57 billion to US$156.57 billion over the same period.
Hessen State Minister for Federal, European and International Affairs Manfred Pentz said cooperation between East Africa and Germany could combine the region’s markets and talent with German industrial expertise, research and capital.
For Tanzania, the investment strategy is therefore centred on moving from a commodity and consumer market model towards production, processing and regional exports.
The government’s pitch to German businesses is increasingly focused on building factories, developing local suppliers, transferring technology and training workers in Tanzania, while using the country’s regional connections to reach a wider African customer base.