ONOMO Hotel Dar es Salaam

Tanzania’s GDP Grew by +5.3% in Q3 2023, Financial and Insurance Services Up by +18%

TANZANIA GDP GROWTH Q3 2016-2023

Tanzania’s National Bureau of Statistics (NBS) reveals that in the third quarter of 2023 (July-September), the country’s Gross Domestic Product (GDP) in an absolute term at current prices increased to TZS 45.8 trillion.

In Q3 2022, Tanzania’s GDP reached TZS 40.1 trillion.

Further, the third quarter real QGDP 2023 (at 2015 constant prices) increased to TZS 35.7 trillion from TZS 33.9 trillion achieved in the corresponding period in 2022, equivalent to 5.3% growth.

TanzaniaInvest Whatsapp Channel

GDP Growth in East Africa in Q3 2023

Among the East African Community countries (EAC), Rwanda is the only country that has released, to date, reports on economic performance for the third quarter of 2023.

During the period, Rwanda’s economy grew by 7.5% compared to the 10.0% recorded in the similar quarter in 2022.

Meanwhile, Tanzania’s economy recorded a growth rate of 5.3% compared to 5.2% recorded in the corresponding period in 2022.

Contribution to Growth

The share of broad economic activities to GDP in the third quarter of 2023, shows that tertiary activities accounted for the largest share of 42.5% followed by primary activities (32.7%) and secondary activities (24.8% ). Note that shares to GDP were compiled before tax adjustments.

Tanzania GDP by Economic Activity, Q3 2023

From 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%).

The economic activities that contributed significantly to the growth include agriculture with 14.2%, followed by Financial and Insurance (13.0%), Mining and Quarrying (10.4%), Transport and Storage (9.1%), Construction (7.6%), and Manufacturing (7.3%).

TANZANIA GDP BY ECONOMIC ACTIVITY IN Q3 2022

Financial and Insurance services recorded the highest growth of 18.7%, followed by Information and Communication (11.3%); Mining and Quarrying (10.2%); Electricity (9.7%), Other Services which include Arts & Entertainment and Activities of Household as an Employer (9.0%); and Accommodation and Food Services (7.4%).

Tanzania Sectoral Performance Q3 2023

Agriculture, Forestry, and Fishing

Crops

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.

The activity grew by 3.8% in the third quarter of 2023 compared to 2.7& recorded in the corresponding quarter of 2022. The growth was attributed to an increase in crop production which is the outcome of using improved technology and inputs including extension services.

Crops that significantly contributed to the growth of crop sub-activity in the third quarter 2023 were maize, paddy, cassava, banana, and sorghum/millet.

During the reference period, maize production increased by 10.8% from 712 thousand tons in the third quarter of 2022 to 789 thousand tons in the third quarter of 2023, paddy harvested increased by 6.2% from 339 thousand tons in the third quarter of 2022 to 360 thousand tons in the third quarter of 2023, cassava increased by 3.9% from 304 thousand tons in the third quarter of 2022 to 316 thousand tons in the third quarter of 2023.

Furthermore, bananas increased by 15.1% from 146 thousand tons in the third quarter of 2022 to 168 thousand tons in the third quarter of 2023 and sorghum/millet increased by 15.8% from 19 thousand tons in the third quarter of 2022 to 22 thousand tons in the third quarter of 2023.

Livestock

The activity covers livestock rearing activities, improved and indigenous cattle; goats; sheep; donkeys and horses; guinea pigs and rabbits; indigenous and commercial chicken; and other poultry.

Livestock activity grew by 5.1% which is similar to the growth rate observed in the corresponding period in 2022.

The demand for livestock-based products, increase in per capita income, urbanization, taste preference as well as increased awareness of food nutrition attributed to the growth.

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 growth rate of 3.8% in the third quarter of 2023 compared to 3.0% registered in the similar quarter in 2022.

The government intervention to ensure the sustainable harvest of forest products is attributed to the growth.

Fishing

The fishing activity covers the harvest of fishery resources from marine or freshwater environments, to capture fish, crustaceans, and other marine products.

The activity recorded a growth rate of 1.4% in the third quarter of 2023 compared to 6.7% in the corresponding quarter in 2022.

The growth was attributed to the slight increase in fish catch 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.

RELATED:  Tanzania's GDP for 2023 Might be Above Projected 5%, Central Bank Indicates

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 grew at 10.2% in the third quarter of 2023 compared to 9.6% recorded during the similar quarter in 2022. The growth was mainly due to an increase in the production of some minerals such as coal, natural gas, and silver.

Tanzania Minerals Production Q3 2019–2023

Tanzania Minerals Production Q3 2019–2023

Manufacturing

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 experienced an expansion of 4.2% in the third quarter of 2023 compared to 4.4% observed in the similar quarter in 2022. The growth rate was attributed to an 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.

From July to September 2023, total electricity distributed increased to 2,175 million kWh from 1,983 kWh million distributed in the corresponding quarter in 2022.

The activity recorded a growth rate of 9.7% in the third quarter of 2023 which is similar to the growth rate observed in the corresponding quarter in 2022.

Water Supply and Sewerage

The activity includes collecting and purifying water for water supply purposes, desalting seawater to produce water as the principal product of interest, and collecting 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 the period, the quantity of water produced increased to 99.1 million cubic meters from 97.3 million cubic meters recorded in the similar quarter in 2022.

The activity grew at 1.8% in the third quarter of 2023 compared to 0.1% recorded in the corresponding quarter in 2022. Continuous improvement of water production infrastructure, increased capacity, and production to match water demand in urban areas attributed to the growth.

Construction

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 growth rate of 2.5% in the third quarter of 2023 compared to 5.6% in the corresponding quarter in 2022. The growth was attributed to an increase in local production of construction materials including 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 expanded by 3.0% in the third quarter of 2023 compared to a growth rate of 2.2% recorded in the corresponding period in 2022. The growth was due to an increase in traded goods including manufactured and imported goods

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 5.9% in the third quarter of 2023 compared to 7.3% achieved in the corresponding quarter in 2022. The growth was attributed to an increase in the tonnage of cargo and the number of 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 7.4% in the third quarter of 2023 compared to 13.2% observed in the similar period in 2022. The growth was attributed to a significant increase in number of tourist arrivals.

During the quarter under review, the number of tourist arrivals increased by 17.8% to 540,667 in 2023 from 459,016 recorded in the similar quarter in 2022.

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 experienced an expansion of 11.3% in the third quarter of 2023 compared to 10.8% in the similar period in 2022.

RELATED:  UN Forecasts Tanzania's GDP Growth at 5.9% in 2024, East Africa Fastest-Growing Region in The Continent

The growth rate was attributed to an increase in the number of voice traffic per minute; the number of short messages services traffic (SMS); the average number of mobile money subscribers; and the expansion of broadcasting and internet services in the country.

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 overall financial and insurance activities increased by 18.7% in the third quarter of 2023 compared to 8.7% recorded in the similar quarter in 2022.

The growth was attributed to an increase in the level of deposits by 24.8% from TZS 27.7 trillion in the third quarter of 2022 to TZS 34.6 trillion in the similar period in 2023; an increase of 22.3% in the level of lending from TZS 25.4 trillion in the third quarter 2022 to TZS 31.1 trillion in the similar period in 2023.

Additionally, an increase in the growth rate of insurance services by 14.0% in the third quarter of 2023 from 4.0% in the corresponding quarter in 2022.

Real Estate

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 increased by 4.2% in the third quarter of 2023, compared to 4.4% observed in the corresponding quarter in 2022.

The growth was attributed to an increase in 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 4.1% in the third quarter of 2023 compared to 6.8% recorded in the similar period in 2022.

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 increased to 5.6% in the third quarter of 2023 from 3.6% recorded in 2022. The performance of travel agents and tour operators’ activities attributed to the growth of the activity.

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’s growth expanded to 5.1% in the third quarter of 2023 compared to 6.6% recorded in the corresponding period in 2022.

An increase in government salaries and other spending in maintaining peace and order as well as the provision of social services attributed to the growth.

Education

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 5.1% in the third quarter of 2023 compared to 6.5% recorded in the corresponding quarter in 2022.

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 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 4.6% in the third quarter of 2023 compared to a growth rate of 7.1% in the similar quarter in 2022.

The growth was attributed to continued improvement in the provision of better health services.

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 increased to 9.0% in the third quarter of 2023 which is similar to the growth rate recorded in the corresponding quarter in 2022.

An increase in tourist arrivals, urban population and personal service activities attributed to the growth of the activity.

Related Posts