4.11 Trade and Commerce

A. Overall Contribution to Economy

The term trade generally encompasses activities that relate to the transit of goods. Formal trade accounts for 13% of the total GDP and accounts for 25% of the active formal labour force. However, informal trade is one of the largest contributors to the informal sector of the economy and suggests that trade is far more significant, both in economic and environmental terms. Trade may be either domestic or international in nature. The Investment Promotion Policy targets activities relating to transit trade, which are the transit of goods to neighbouring countries, and to the re-export of goods which have value added in Tanzania.