Tanzania Economy

ECONOMY

GDP: US$ 23.2bn (2011 CIA est.)

GDP per capita (PPP): US$ 1,500 (2011 CIA est.)

GDP Real Growth Rate: 6.1% (2011 CIA est.), 6.1% (2012 IMF proj.)

GDP – composition by sector: agriculture: 27.8% industry: 24.2% services: 48% (2011 CIA est.)

Inflation: 11.1% (2011 CIA est.)

Major economic sectors: agriculture, financial and business services, trade and tourism, manufacturing.

Agriculture products: coffe, sisal, tea, cotton, pyrethrum, cashew nuts, tobacco, cloves, corn, wheat, cassava (tapioca), bananas, fruits, vegentables: cattle, sheep, goats.

Industries: agricultural processing (sugar, beer, cigarettes, sisal twine); diamond, gold, and iron mining, salt, soda ash; cement, oil refining, shoes, apparel, wood products, fertilizer.

Export commodities: gold, coffee, cashew nuts, manufactures, cotton.

Export partners: China 15.6%, India 11%, Japan 6.1%, UAE 5%, Germany 4% (2010).

Import commodities: consumer goods, machinery and transportation equipment, industrial raw materials, crude oil.

Import partners: China 17.3%, India 15.4%, South Africa 7.9%, Kenya 7%, UAE 4.8%, Japan 4.2% (2010).

External debt: $9.114 billion (31 December 2011 CIA est.)

Currency: Tanzanian Shilling (TZS)

Exchange rate: Tanzanian shillings (TZS) per US dollar – 1,590 (7 Feb 2012)

FDI
Foreign direct investment, net inflows (BoP, current US$) 2000-05: 463,400,864 467,200,000 429,800,000 526,800,000 469,900,000 473,400,000
Investor Protection Index: 4.7/10

BUSINESS

Corporate income tax: 30%
Value added tax (VAT): 20%
Corruption Perceptions Index (CPI): 2.9/10

ECONOMY (extended)
Tanzania’s economy relies heavily on agriculture, which accounts for nearly half of the GDP and employs 80% of the workforce.

Tourism is growing in importance and ranks as the second highest foreign exchange earner after agriculture.
Mineral production (gold, diamonds, tanzanite) has grown significantly in the last decade.

It represents Tanzania’s biggest source of economic growth, provides over 3% of the GDP and accounts for half of Tanzania’s exports.

Accounting for less than 10% of GDP, Tanzania’s industrial sector is one of the smallest in Africa.

Despite enthusiastic privatisation during the 1990s and annual GDP growth of between 5 and 7%, the Tanzanian economy remains weak.

Mkapa’s Government (1996-2005) saw through a vigorous programme of economic reform, in line with IMF guidelines.
President Kikwete has pledged to continue these policies.

Tough measures have included tight control of public spending, privatisation of parastatals, reform of the Investment Code, the taxation system and land ownership, steps to improve revenue collection, expenditure control and civil service retrenchment.

Corruption is still endemic; Kikwete has said that addressing this will be one of his major priorities.