The International Trade Centre (ITC)-a development agency fully dedicated to supporting the internationalization of SMEs-estimates tea exports to rise to USD 38 million in 2020 despite the Covid-19 pandemic.
In its recent study titled “Tanzania’s Trade in Times of Covid-19: an Analysis for the Avocado, Coffee, Spices and Tea Sector” the TIC indicates that after dropping in 2018 and 2019, tea exports are expected to rise to USD 54 million in 2024.
Tanzania Tea Exports Before Covid-19
Tanzania’s yearly exports of tea averaged USD 41.1 million in the period 2014-2018.
Tanzania’s tea exports are geographically diversified. Africa is the main destination with 30% of tea exports with Kenya (16%) and South Africa (10%) being the most important regional markets.
Other key markets are the United Kingdom (20%), Pakistan (18%), and the Russian Federation (12%). The EU only accounts for 8% of exports.
Tanzania Tea Exports During Covid-19
World tea exports remained relatively stable as compared to 2019 with the largest drop of 22% in April.
Tanzania’s tea exports evolved less favorably, declining by 22% in March compared to the previous year and by 63% and 51% in April and May, respectively.
However, tea exports are expected to rise to USD 38 million in 2020 – higher than ever before.
Tanzania Coffee Exports After Covid-19
Regardless of the Covid-19 pandemic, Tanzania’s coffee exports are predicted to rise continuously over the coming years and reach almost USD 54 million in 2024.
The difference to predictions without COVID-19 is –2% or USD 808,000. While the absolute value of future exports may be slightly overestimated (as the relatively low value for 2019 was not used due to data availability and quality), the conclusion is that the losses caused by the pandemic are relatively low.