Amman, Oct. 28 (Petra) -- Tanzania's fertilizer imports, valued at approximately $457 million in 2023, present significant opportunities for Jordanian manufacturers to expand exports of phosphate-based, compound and specialty fertilizers, according to a market entry study.
The study, prepared by Jordan Exports in cooperation with the Ministry of Industry, Trade and Supply, found that Tanzania relies on imports for more than 90 percent of its fertilizer requirements, creating potential demand for Jordanian products.
Tanzania imported approximately 789,800 tonnes of fertilizers in 2023, an increase of 26 percent compared with 2022, while domestic production reached just 46,100 tonnes.
The study identified diammonium phosphate (DAP) and compound fertilizers as particularly promising export categories, with Tanzanian imports reaching 130,700 tonnes and 113,900 tonnes, respectively, in 2023.
Despite recording $50.5 million in global DAP exports that year, Jordan did not export the product to Tanzania, indicating an opportunity to establish a presence in the market.
Jordan's global exports of compound fertilizers totaled $30.3 million, while its products accounted for approximately 3 percent of Tanzania's import volume in that category.
The study also identified potential opportunities in specialty and water-soluble fertilizers, including monoammonium phosphate, nitrogen-phosphorus blends and potassium nitrate, alongside industrial chemicals, potash compounds, bromine, phosphoric acid and pesticides.
Demand for fertilizers in Tanzania has continued to increase, with national requirements rising from approximately 698,300 tonnes in the 2021/2022 agricultural season to 848,900 tonnes in 2023/2024.
Apparent fertilizer consumption more than doubled between 2021 and 2023, supported by the country's national fertilizer subsidy program, according to the study.
The findings indicated that fertilizers classified under Chapter 31 of the Harmonized System enter Tanzania at a zero-percent customs duty under the East African Community's Common External Tariff.
However, exporters were advised to verify the tax treatment, additional fees and customs classification applicable to each product before shipment.
To enter the market, the study recommended working with an importer licensed by the Tanzania Fertilizer Regulatory Authority and establishing contact with three to five potential distributors.
It also advised exporters to calculate prices based on the total landed cost at the Port of Dar es Salaam rather than relying solely on quotations from the Port of Aqaba, allowing for a more accurate assessment of competitiveness.
The study recommended initially targeting private-sector customers through trial sales, using advance payments or letters of credit for early transactions, and conducting local testing and field trials before expanding shipments.
It noted that product registration procedures could take between six and 18 months, making early preparation essential for exporters seeking to enter the Tanzanian market.
In industrial chemicals, the study highlighted opportunities for insecticides, which Tanzania imported at a value of approximately $24.9 million in 2023, compared with Jordan's global exports of $43.1 million.
Access to this market, however, would require compliance with local product registration, classification and labeling requirements.
The study emphasized that successful entry into Tanzania depends on aligning export plans with agricultural seasons, meeting technical and regulatory requirements, and establishing partnerships with local distributors.
Earlier this month, Jordan Exports and the Ministry of Industry, Trade and Supply released market entry studies covering five promising destinations: Indonesia, Tanzania, Uzbekistan, Kenya and Malaysia.
The studies identified a combined addressable market of approximately $2.5 billion, offering opportunities for Jordanian manufacturers to diversify export destinations and expand their presence in international markets.
The findings noted that Jordanian industries already export to highly competitive global markets, providing a foundation for pursuing additional opportunities in emerging destinations.
//Petra// RZ
