East Africa produces 370,000 tonnes of hides and skins each year, then imports $566 million worth of footwear and leather goods made elsewhere. It grows 119,000 tonnes of cotton lint but buys $3.24 billion in textiles and clothing from abroad. The pattern repeats in edible oils: $3.1 billion in imports against $1.2 billion in exports, with local production meeting only 37 per cent of regional consumption. These are not trade deficits—they are the cost of failing to capture value between the farm gate and the shop shelf.

What Happened

Manufacturers and policymakers gathered in Dar es Salaam last week for a meeting organised by the East African Business Council (EABC) and the African Development Bank (AfDB), according to AllAfrica. The discussion exposed a structural problem: East Africa has the raw materials but not the industrial capacity to turn them into finished goods. Exports of hides and semi-processed leather totalled just $46 million in 2025, while imports of footwear, footwear parts and leather goods reached approximately $566 million. In textiles, only 37 per cent of annual cotton lint production is spun locally; imports of textiles, clothing and second-hand garments cost $3.24 billion in 2025, more than three times the value of exports at about $970 million. Edible oil imports came to roughly $3.1 billion, against exports of $1.2 billion. A study presented by Onesmos Shuma of Excellon Group found that 79 per cent of surveyed firms operated below 75 per cent of production capacity, AllAfrica reports. Two-thirds had delayed investment, and 78 per cent reported technology gaps. Leather and footwear firms were worst affected: 86 per cent operated below three-quarters capacity and 79 per cent had postponed or cancelled investment. In textiles and apparel, 74 per cent were below that threshold and 61 per cent had delayed investment; among edible-oil firms, the figures were 75 per cent and 59 per cent respectively.

Meanwhile, at the Norman E. Borlaug International Dialogue in Des Moines, Iowa, Tanzania's Finance Minister Dr Nchemba said Africa should stop crying over cooking oil shortages.

We need only about five countries to feed the whole of Africa

he told participants on Friday, according to AllAfrica. He urged African nations to maximise domestic agricultural potential rather than remain vulnerable to global supply-chain disruptions exposed during the Covid-19 pandemic and recent conflicts. Citing Food and Agriculture Organisation estimates, Dr Nchemba said transforming agrifood systems in low- and middle-income countries would require at least $4 trillion by 2030.

Why It Matters

The gap between what East Africa produces and what it processes represents billions of dollars in foregone manufacturing jobs, tax revenue and export earnings. When hides leave the region as raw or semi-processed goods, the tanning, cutting, stitching and branding—the stages that add the most value—happen elsewhere. The same logic applies to cotton that is grown but not spun, and oilseeds that are exported rather than refined. Frank Dafa, executive director of the Confederation of Tanzania Industries, argued that agriculture, livestock production and manufacturing need closer links, supported by investment in technology, skills and infrastructure, AllAfrica reports. But inconsistent regional trade rules complicate the calculation. Research presented by Margaret Chemengich of Charmy Investments found that 25 of 39 temporary tariff exemptions affecting the three industries had been renewed in every budget since the 2022/23 financial year. Duties on refined sunflower oil varied from about 26 per cent in Tanzania to 60 per cent in Uganda, distorting competition and influencing where goods are processed.

Follow the Value

  • Raw hides to finished shoes: East Africa exported $46 million in hides and semi-processed leather but imported $566 million in footwear and leather goods in 2025. The tanning, manufacturing and retail mark-ups accrue to factories and brands outside the region.
  • Cotton lint to garments: With only 37 per cent of the region's 119,000 tonnes of cotton lint spun locally, imports of textiles, clothing and second-hand garments reached $3.24 billion—more than triple the region's exports of about $970 million.
  • Oilseeds to cooking oil: Local edible oil production meets just 37 per cent of regional consumption. Imports cost approximately $3.1 billion in 2025, against exports of $1.2 billion, leaving most of the refining, bottling and distribution profits elsewhere.
  • Underutilised capacity: Three-quarters of surveyed firms operate below 75 per cent capacity, according to the Excellon Group study. Leather and footwear firms are hardest hit, with 86 per cent running below that threshold and 79 per cent having postponed investment.
  • Inconsistent tariffs: Refined sunflower oil duties range from roughly 26 per cent in Tanzania to 60 per cent in Uganda, according to research by Charmy Investments. Such variations influence where processing occurs and can make importing cheaper than manufacturing locally.

The Questions That Need Answering

  1. Which five countries does Tanzania believe can meet Africa's edible oil demand, and what production volumes and investment are required? Dr Nchemba offered no detail on capacity, timelines or whether Tanzania expects to be among them.
  2. Why have 25 of 39 temporary tariff exemptions been renewed in every budget since 2022/23? Repeated renewals suggest they are permanent in practice—so why not subject them to proper cost-benefit analysis and either formalise or scrap them?
  3. Who benefits when East African governments renew duty exemptions on finished imports that compete with local manufacturers? Consumers may pay less in the short term, but do the exemptions undermine the industrial base needed to create jobs and capture value long term?
  4. How much of the $4 trillion FAO estimate for agrifood transformation would need to reach East Africa, and how much is likely to arrive? Dr Nchemba cited the figure but offered no indication of the region's share or realistic financing sources.
  5. What prevents the 76 per cent of firms that believe they could source more inputs regionally from actually doing so? If three-quarters of manufacturers see the opportunity but do not act, the barriers—whether logistical, financial or regulatory—need identifying and removing.

The Brew Brief View

East Africa's industrial underdevelopment is not an accident of geography or a shortage of raw materials—it is a policy choice, repeated across budgets and borders. When governments renew tariff exemptions year after year without review, protect finished imports more enthusiastically than they support domestic manufacturers, and allow tariff rates to vary wildly within a supposed common market, they send a clear signal: it is easier to import than to build. The result is $566 million spent on shoes made from hides the region already produces, $3.24 billion on textiles made from cotton it already grows, and $3.1 billion on cooking oil pressed from oilseeds it could process at home. The margin on every imported pair of shoes, every imported bottle of oil, is captured elsewhere.

Tanzania's claim that five African countries can meet the continent's edible oil demand is bold—but only if those countries actually invest in crushing capacity, refining infrastructure and reliable supply chains rather than continuing to export raw seeds and import refined oil. Dr Nchemba is right that the $4 trillion needed to transform agrifood systems will not come from public budgets alone. But private capital will not flow to factories operating at 75 per cent capacity or less, competing against imports favoured by inconsistent tariff policy, in a regional market fractured by national protectionism. If East Africa wants to capture the value between the farm and the consumer, it must decide whether the EAC is a serious industrial project or merely a venue for ministerial meetings. The raw materials are there. The question is whether the political will to process them locally is.