Tanzania’s National Bureau of Statistics (NBS) reveals that in the third quarter of 2022 (July-September), the country’s Gross Domestic Product (GDP) reached TZS 42.9 trillion at current prices.
In Q3 2021, Tanzania’s GDP reached TZS 38.4 trillion.
Further, the value of GDP at 2015 constant prices also increased to TZS. 33.9 Trillion in the third quarter of 2022 from TZS 32.2 Trillion in Q3 2021 equivalent to a growth rate of 5.2%, versus 5.5% recorded in the corresponding period in 2021.
GDP Growth in East Africa in Q3 2022
The East African Community countries that have already reported economic performance in the third quarter of 2022 show that Rwanda’s economy grew by 10.0% compared to 10.1% recorded in the third quarter of 2021.
Kenya’s economy expanded by 4.7% compared to 9.3% in 2021. Uganda’s economy increased by 7.5%, from 2.7% in 2021.
Contribution to Growth
The economic activities that most significantly contributed to the GDP growth in Q3 2022 include Transport and storage (14.2%); Agriculture (12.4%), Mining and quarrying (9.8%), Construction (8.3%), Financial and Insurance Services (8.3%), and Manufacturing (7.9%).
Tanzania’s GDP by Economic Activity, Q3 2022
During the period of July to September 2022, tertiary activities accounted for the largest share of the GDP (41.2%), followed by primary activities (32.9%), and secondary activities (25.9%).
Information and Communication recorded the highest growth at 13.7%; followed by Accommodation and Food services (13.2%), Financial and Insurance Services (12.0%), Mining and Quarrying (9.8%); and Electricity supply (9.7%).
Sectoral Performance Q3 2022
Agriculture, Forestry, and Fishing
Major crops covered include maize, paddy, sorghum/millet, other cereals, cassava, round potatoes, sweet potatoes, other roots and tubers, beans and other pulses, dried oil seeds, other vegetables, bananas, other fruits, cashew nuts, coffee, cotton, tea, tobacco and other food and cash crops.
Crop production grew at a slower rate of 2.7% in the third quarter of 2022 compared to 6.8% in the corresponding quarter of 2021.
The slow growth was due to unfavorable rainfall received in areas of production during the period of July to September 2022.
The crops that contributed most to the growth include cassava which grew by 17.0% from 254 thousand tons in the third quarter of 2021 to 297 thousand tons in the same quarter of 2022, banana which increased by 8.5% from 135 thousand tons to 146 thousand tons, sweet potatoes which increased by 4.6% from 108 thousand tons to 113 thousand tons, and beans & pulses which increased by 1.3% from 81 thousand tons to 82 thousand tons.
The activity covers activities of rearing improved and indigenous cattle; goats; sheep; donkeys and horses; guinea pigs and rabbits; indigenous and commercial chicken; and other poultry.
During the period of July to September 2022, livestock activities grew by 5.1%, up from 5.0% recorded in the corresponding period in 2021.
The demand for livestock-based products is attributed to the growth in line with a significant increase in per capita income, urbanization, taste, and preference as well as increased awareness of food nutrition.
Forestry and Logging
The activity covers the production of timber, charcoal, fuel wood and logs, twigs, faggots (bundles of branches), and non-wood forest products.
Forestry activity recorded a slower growth rate of 3.0% in the third quarter of 2022 compared to 6.6% registered in the corresponding quarter in 2021.
The slower growth rate was due to a decrease in the production of forestry products in line with the government intervention to ensure the sustainable harvest of forest products.
The fishing activity covers the harvest of fishery resources from marine or freshwater environments, with the goal of capturing fish, crustaceans, and other marine products.
The activity recorded a growth rate of 0.9% in the third quarter of 2022, up from a negative growth of 2.2% recorded in the similar quarter in 2021.
The growth was attributed to an increase in the fish caught during the period under review.
Mining and Quarrying
Mining and quarrying include activities of extraction of minerals occurring naturally as solids (coal and ores), liquids (petroleum), or gases (natural gas). Extraction can be from underground, on the surface mining, or through well operation.
It also includes supplementary activities aimed at preparing the crude materials for marketing, for example, crushing and grinding; cleaning, drying, sorting, concentrating ores, liquefaction of natural gas, and agglomeration of solid fuels. The units located nearby often accomplish the operations.
Mining and quarrying activity is divided into four industries, which are:
1) Mining of coal, lignite, and extraction of peat;
2) Crude petroleum and natural gas;
3) Mining of metal ores; and
4) Other mining and quarrying.
The activity recorded a growth rate of 9.8% in the third quarter of 2022 compared to a growth rate of 13.1% recorded during the corresponding quarter in 2021.
The growth was mainly due to an increase in the production of gold, diamonds, silver, coal, and natural gas.
Gold production increased to 17,516 kg in the third quarter of 2022 compared to 14,915 kg produced in the third quarter of 2021, diamond production increased to 74,462 carats from 19,418 carats, and coal increased to 774,398 tons from 191,607 tons.
Tanzania Minerals Production Q3 2017–2022
Manufacturing activity involves the physical or chemical transformation of materials, substances, or components into final or semi-processed goods.
The materials include products of agriculture, forestry, fishing, mining and quarrying, as well as products of other manufacturing activities.
The activity expanded to 4.5% in the third quarter of 2022, up from 3.9% in the corresponding quarter in 2021. The growth rate was attributed to a general increase in the production of industrial goods.
Electricity, Gas, Steam and Air Conditioning Supply
The activity covers the provision of electric power and natural gas, through permanent infrastructure (network) of lines, mains, and pipes.
Specifically, the activity involves the generation of electricity mainly from hydro, thermal, and gas sources. It also includes electricity transmission and distribution activities.
The main sources of data are the power generation companies.
During the period of July to September 2022, total electricity generated increased to 2,313 million kWh from 2,093 kWh million generated in the similar quarter in 2021.
The activity recorded a growth rate of 9.7% in the third quarter of 2022 compared to 10.0% in the similar quarter in 2021.
Water Supply and Sewerage
The activity includes the collection and purification of water for water supply purposes, desalting of seawater to produce water as the principal product of interest, and collection of water directly from wells for use by water supply companies or used on their own account in agriculture or households. It also includes water distribution activities.
The indicator for the growth of water supply activity is the quantity of water produced. During Q3 2022, the quantity of water produced increased to 97.3 million cubic meters from 97.5 million cubic meters recorded in the similar quarter in 2021.
The activity experienced a slight growth rate of 0.1% compared to 4.5% registered in the corresponding quarter in 2021. A decrease in water supply from catchment areas caused a slowdown in growth.
This activity includes general construction and specialized construction activities for buildings and civil engineering works. It includes new work, repair, additions and alterations, the erection of prefabricated buildings or structures on the site and construction of a temporary nature.
General construction work deals with the construction of entire dwellings, office buildings, stores and other public and utility buildings, and farm buildings. It also includes the construction of civil engineering works such as motorways, streets, bridges, tunnels, railways, airfields, harbors and water projects, irrigation systems, sewerage systems, industrial facilities, pipelines and electric lines, sports facilities, etc.
The activity recorded a slower growth rate at 2.7% in the third quarter of 2022 compared to 5.8% in the corresponding quarter in 2021. The growth was due to a slight increase in the local production of construction materials like iron and steel which are proxies for construction activities.
Wholesale and Retail Trade; Repair of Motor Vehicles, Motorcycles and Personal and Household Goods
The activity includes wholesale and retail sales (sales without transformation) of any type of goods, as well as rendering services incidental to the sale of merchandise. It also includes the repair of motor vehicles and the installation and repair of personal and household goods. The activity involves the buying and selling of goods.
The activity recorded a growth rate of 3.9% in the third quarter of 2022 compared to a growth rate of 1.9 in the third quarter of 2021. The growth was due to an increase in traded goods specifically agricultural products.
Transport and Storage
This activity includes the provision of passenger or freight transport, whether scheduled or not, by rail, pipeline, road, water, or air and associated activities such as cargo handling, storage, etc. The activity also includes renting of transport equipment with a driver or operator and postal and courier activities.
The activity recorded a growth rate of 9.4% in the third quarter of 2022, up from a negative growth of 0.6% recorded in the corresponding quarter of 2021.
The growth was attributed to increased cargo tonnage and passengers transported by road transport services.
Accommodation and Food Services
This activity includes the provision of short-stay accommodation for visitors and other travelers and the provision of complete meals and drinks fit for immediate consumption. The amount and type of supplementary services provided within this section can vary widely.
Accommodation and food services recorded a growth rate of 13.2% in the third quarter of 2022 compared to 14.3% recorded in the corresponding period in 2021. The growth was attributed to an increase in the number of tourist arrivals.
The number of tourist arrivals increased to 458,783 in the third quarter of 2022 from 249,437 recorded in the similar quarter in 2021 equivalent to an increase of 83.9%.
Information and Communication
The activity covers publishing activities, motion picture, video and television programming production, sound recording and music publishing, programming and broadcasting activities, e.g., radio and television broadcasting, telecommunications, computer programming, consultancy and related activities and information service activities such as data processing and news agencies.
The activity recorded a growth rate of 13.7% in the third quarter of 2022, up from 8.3% in the corresponding quarter in 2021. An increase in airtime used by mobile phone customers and the expansion of broadcasting and internet services in the country is behind the growth.
Financial and Insurance Service
The activity covers financial service, insurance and reinsurance, voluntary pension funding, and auxiliary to financial service. It also includes the activities of holding assets, such as holding companies, trusts, funds and similar financial entities.
The overall financial and insurance activities increased by 12.0% in the third quarter of 2022, up from 4.8% recorded in the similar quarter in 2021.
The growth rate of financial activities increased by 7.7% in Q3 2022 compared to 5.1% in the similar quarter in 2021.
The growth was attributed to an increase in the level of deposits by 18.0% from TZS 25.0 trillion to TZS 29.5 trillion, an increase of 21.9% in the level of lending from TZS 20.8 trillion to TZS 25.4 trillion, and increase in the growth rate of insurance services by 5.0% compared to 1.5%.
This activity includes selling or buying real estate, renting real estate, and providing other real estate services such as appraising real estate. Activities in this industry may be carried out on own or leased property and may be done on a fee or contract basis.
Also included is the building of structures, combined with maintaining ownership or leasing of such structures.
The activity recorded a growth rate of 4.4% in the third quarter of 2022, compared to 4.6% recorded in the corresponding quarter in 2021. The growth was attributed to increasing demand for accommodation, especially in urban areas.
Professional, Scientific and Technical Activities
This activity includes specialized professional, scientific and technical activities. The
activities require a high degree of training, as well as making specialized knowledge
and skills available to users. The activity includes legal and accounting; activities of
head offices; management consultancy; architectural and engineering; technical
testing and analysis; scientific research and development; advertising and market
research; other professional; scientific and technical as well as veterinary activities.
The activity recorded a growth rate of 6.8% in the third quarter of 2022 compared to 5.8% recorded in the similar period in 2021. The outstanding increase in other professional, legal, and accounting services attributed to the growth.
Administrative and Support Services
The activity includes a variety of services that support general business operations. Administrative and support services involve rental and leasing; employment; travel agency; tour operator; reservation service and related activities; security and investigation; as well as services to buildings and landscape.
The activity recorded a growth of 3.6% in the third quarter of 2022 compared with 6.0% recorded in 2021. The performance of travel agent and tour operators’ activities are attributed to the growth.
Public Administration and Defense; Compulsory Social Security
The activity includes the enactment and judicial interpretation of laws, legislative activities, taxation, national defense, public order and safety, immigration services, foreign affairs and the administration of government programs. This activity also includes compulsory social security activities.
The activity grew by 6.9% in the third quarter of 2022, up from 6.6% in the corresponding period in 2021. An increase in government salaries and other spending in maintaining peace and order as well as the provision of social services are attributed to the growth.
This activity includes education at any level or for any profession, oral or written as well as by radio and television or other means of communication. It includes education by the different institutions in the regular school system at its different levels as well as adult education, literacy programs etc. The activity includes public as well as private education.
The activity recorded a growth rate of 6.5% in the third quarter of 2022 compared to 6.2% recorded in the corresponding quarter in 2021.
An increase in the number of enrolled students in public and private primary and secondary schools coupled with an increase in government spending in the provision of fee-free education services are attributed to the growth.
Human Health and Social Work
The activity includes the provision of health and social services. It includes a wide range of activities, including health care provided by trained medical professionals in hospitals and other facilities, other residential care activities that still involve a degree of health care activities to social work activities without any involvement of health care professionals.
The activity recorded a growth rate of 7.3% in the third quarter of 2022 compared to a growth rate of 7.1% in the similar quarter in 2021.
Other Services Activities
This industry includes the activities of membership organizations, the repair of computers and personal and household goods and a variety of personal service activities not covered elsewhere in the classification. It also includes Art, Entertainment and Recreation and Activities of Households as Employers.
The activity recorded a growth rate of 9.0% in the third quarter of 2022 compared to a growth of 12.1% recorded in the similar quarter in 2021. An increase in tourist arrivals, urban population and personal service activities are attributed to the growth of the activity.