CBAM Impact on Tanzania: Steel, Cement, and East Africa's Industrial Corridor

Tanzania is a growing exporter of steel and cement to the EU, anchored by the TAZARA industrial corridor and Dar es Salaam port. This guide explains Tanzania's CBAM exposure, its mixed hydro-gas grid, and the compliance pathway for Tanzanian exporters.

Published April 2026·Last updated April 2026·carbonborderadjustment.co.za

Tanzania and CBAM: The TAZARA Corridor Meets Carbon Compliance

Tanzania is East Africa's second-largest economy and a growing industrial exporter. Its CBAM exposure is concentrated in steel and cement — sectors anchored by the Dar es Salaam industrial corridor and the TAZARA (Tanzania-Zambia Railway Authority) freight network that connects landlocked Zambia and Zimbabwe to the Indian Ocean.

Tanzania's CBAM-Exposed Industries

Steel: Tanzania's steel sector is centred in Dar es Salaam, with electric arc furnace (EAF) producers including Tanga Cement Steel, Devki Tanzania (a subsidiary of Kenya's Devki Group), and Bora Steel. These facilities use scrap steel and electricity, making them significantly less carbon-intensive than coal-fired blast furnace steel. Tanzanian steel is exported to EU markets primarily as wire rod (CN code 7213) and reinforcing bar (CN code 7214). Cement: Tanzania is a significant cement producer, with Tanzania Portland Cement (Heidelberg Materials subsidiary), Mbeya Cement, and Tanga Cement operating large kilns. Cement clinker (CN code 2523) is within CBAM scope. Tanzania's cement sector uses a mix of coal, petroleum coke, and waste fuels.

The Grid Carbon Advantage

Tanzania's national grid runs at approximately 320 gCO₂/kWh — significantly lower than South Africa's coal-heavy 750 gCO₂/kWh. The electricity mix includes hydropower from the Rufiji River basin (the Julius Nyerere Hydropower Project, 2,115 MW, came online in 2024), natural gas, and growing renewable capacity. For EAF steel producers, this translates into actual embedded emissions well below the EU default emission factor.

The Julius Nyerere Hydropower Project

The completion of the Julius Nyerere Hydropower Project (JNHPP) on the Rufiji River in 2024 significantly reduced Tanzania's grid carbon intensity. With 2,115 MW of hydropower capacity, the JNHPP has shifted Tanzania's electricity mix toward cleaner sources — a direct benefit for CBAM-exposed industries. Tanzanian EAF steel producers who can demonstrate they use grid electricity (rather than diesel generators) will benefit from this lower carbon intensity in their CBAM calculations.

Compliance Pathway for Tanzanian Exporters

▸Identify all CBAM-scope goods in your EU export portfolio
▸Calculate actual embedded emissions using the EU CBAM methodology
▸Engage an accredited third-party verifier
▸Appoint an Authorised CBAM Declarant registered in the EU CBAM Registry
▸Register at the Digital Product Passport Registry
▸Submit your first CBAM declaration by 31 May 2027 The completion of the JNHPP is a structural carbon advantage for Tanzania's industrial sector. Exporters who document and verify their actual emissions will pay significantly less than the EU default CBAM cost.

Frequently Asked Questions

Which Tanzanian exports are subject to CBAM?

Tanzania's primary CBAM-covered exports are steel products (CN codes 7213–7217, 7304–7306) from Dar es Salaam-based electric arc furnace producers, and cement clinker (CN code 2523) from Tanzania Portland Cement and Mbeya Cement. Tanzania also exports small volumes of aluminium semi-fabricated products through the Dar es Salaam free trade zone.

What is Tanzania's grid carbon intensity?

Tanzania's national grid has a carbon intensity of approximately 320 gCO₂/kWh. The electricity mix includes hydropower from the Rufiji River basin (approximately 40%), natural gas (approximately 45%), and other renewables (approximately 15%). This is significantly lower than South Africa's coal-heavy grid, giving Tanzanian EAF steel producers a structural CBAM advantage.

Does Tanzania have a carbon tax or ETS?

Tanzania does not have a national carbon tax or emissions trading system as of 2026. Tanzania's Climate Change Act 2022 provides a framework for carbon pricing, but no qualifying mechanism has been implemented. Tanzanian exporters cannot claim a carbon price credit against their CBAM liability, but their relatively low-carbon grid means actual CBAM costs are below EU defaults.

What is Tanzania's estimated CBAM liability for steel?

Using EU default emission factors, Tanzania's steel exports face a CBAM cost of approximately EUR 130/tonne (1.985 tCO₂/t × EUR 65.42/tCO₂). However, Tanzanian EAF producers using the national grid have actual embedded emissions significantly below this default. Verified actual emissions could reduce CBAM costs by 30–50%.

What should Tanzanian exporters do to prepare for CBAM?

Tanzanian exporters should: (1) identify CBAM-scope goods in their EU export portfolio; (2) calculate actual embedded emissions; (3) appoint an EU Authorised CBAM Declarant; (4) register at the Digital Product Passport Registry; and (5) submit their first CBAM declaration by 31 May 2027.

Gate 3 — Complete Registration

✓ Gate 1 KYC · ✓ Gate 2 CBAM · Gate 3 DPP →

Digital Product Passport Registry

Complete all three compliance gates — Gate 1 KYC identity verification, Gate 2 CBAM financial authorisation, and Gate 3 Digital Product Passport registration — in one place at the DPP Registry.

Start Three Gates Registration →