Factors Affecting Seaweed Exportation in Tanzania

Seaweeds are among of the marine macroalgae which are also known as green (Chlorophyta. For the women of Zanzibar's coastal communities, this is a vital economic maricultural activity. Now more than ever, seaweed farming is seen as a promising new industry with the potential to improve the economic standing of coastal communities. A number of changes in Zanzibar's trade policy have been made to boost the seaweed export industry. Yet, both domestic output and global exports of seaweed have been steadily falling for several years. Zanzibar's efforts to boost human development and raise living standards due to the decline of seaweed exports are in jeopardy. Using time series data collected between 1985 and 2021 and evaluated using the vector error correction technique, this research examines the determinants affecting seaweed exports. According to the time series analysis, both long-term and short-term seaweed exports were positively impacted by GDP and FDI at the 1% significance level, whereas long-term seaweed exports showed a weak significant negative influence from inflation at the 5% significance level. The government of Tanzania and other stakeholders are urged to increase the country's gross domestic product (GDP) by rapidly industrializing and bettering agriculture, attracting more foreign direct investments, and providing excellent service to international clients. In addition, the country's inflation rate should be stabilized through the implementation of monetary and fiscal policies to reduce inflation, which would also increase seaweed exports.