African Tourism and Hospitality Studies | 20 September 2001
The AfCFTA's Influence on Southern Africa’s Regional Supply Chains in Tanzania: A Business Perspective
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Abstract
The African Continental Free Trade Area (AfCFTA) aims to integrate the continent's economy and enhance regional supply chains. This report examines its impact on Southern Africa’s regional supply chains in Tanzania from a business perspective. The study employed a qualitative approach to analyse existing literature and interviews with local businesses operating within Tanzanian supply chains. Data was triangulated from multiple sources including government reports and industry associations. A notable trend observed is the diversification of suppliers in Tanzania’s tourism sector, with an increase in small-scale providers entering global markets as a result of reduced trade barriers under AfCFTA. The AfCFTA has facilitated greater regional integration by lowering tariffs and removing non-tariff barriers, which has encouraged businesses to source from other Southern African countries. This shift is particularly evident in the tourism sector where more diverse local suppliers are now available for international tourists. Businesses should proactively engage with their supply chain partners across the region to capitalize on these opportunities and diversify their sourcing strategies, while government bodies could facilitate such integration by providing better market information and infrastructure support.