Tanzania is the second largest economy in the East African Community and the twelfth largest in Africa with a Gross Domestic Product (GDP) of $33.23 billion.
According to the African Economic Outlook, Tanzania continues to enjoy strong export growth and diversification from traditional markets and products, but it remains significantly reliant on primary commodity exports. Manufacturing exports have grown significantly over the past decade, and export markets have been diversified. Industry accounts for about 25% of GDP; the most important industrial sub-sectors is manufacturing, with a GDP share of about 10%.
Tanzania is ranked 145th out of 189 economies in the World Bank’s Doing Business 2014. The report notes that the aggregate score decreased by nine points compared to 2013, due to deterioration in all the sub-indicators. Positive reforms implemented in 2014 made it easier to resolve insolvency. Tanzania improved its credit information system through new regulations that provide for the licensing of credit reference bureaus and outlines the functions of the credit reference data bank.
The top three business environment constraints experienced by private sector firms in Tanzania include access to finance, electricity, and tax rates. As reported by the World Bank’s Enterprise Surveys 2013 data, the value of collateral needed for a loan or line of credit (as a percentage of the loan value) amounts to 263.8, compared to 171.0 in the region, and 189.4 in all countries surveyed.
United Nations Conference on Trade and Development STATS.
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Published on July 24, 2017
Tanzania and Kenya have held successful talks that will see the lifting of restrictions on imports from either country.
The Minister of Foreign Affairs and East African Cooperation, Dr Augustine Mahiga, announced the decision in Nairobi yesterday following discussions between President John Magufuli and his Kenyan counterpart, Mr Uhuru Kenyatta.
As a result, Kenya will lift the ban on wheat flour and gas imports from Tanzania, which, in turn, will remove restrictions on milk and cigarettes from Kenya. Read more. Source | The Citizen
Published on July 24, 2017
The International Finance Corporation (IFC) and the Global Agriculture and Food Security Programme (GAFSP) are going to launch smallholder farmer financing programmes with the United Nations World Food Programme (WFP) to improve food security among vulnerable people in Rwanda and Tanzania.
The initiatives with KCB Bank Rwanda and CRDB Bank in Tanzania are part of the Farm to Market Alliance, a multi-stakeholder platform established in 2016, of which IFC and WFP are global members, to create agriculture value chains that secure sizeable local and international demand for produce from smallholder farmers, according to a statement from the two organisations. Read more. Source | New Times
Published on July 19, 2017
Tanzania is set to increase irrigation network towards sustainable industrial agriculture economy, the Minister for Water and Irrigation, Mr Gerson Lwenge, has said.
He said at the just ended Dar es Salaam International Trade Fair (DITF) that irrigated land will be increased to one million hectares in two years from only 460,000 currently out of 29 million hectares suitable for irrigation.
“Irrigation can speed up agriculture productivity because there is a possibility of cultivating twice a year contrary to reliance on rain-fed farming where farmers harvest once a year,” he said. Read more. Source | Daily News
Published on June 28, 2017
In a bid to strengthen businesses within East Africa, the Tanzania Trade Development Authority (Tantrade) has organised a day for businessmen from those countries to meet and discuss business.
The event, first of its kind, will take place during the 41th Dar es Salaam International Trade Fair (DITF) set to commence tomorrow to July 8, this year at Mwl Julius Nyerere grounds.
According to Mr Charles Mwijage, the minister for Industry, Trade and Investment, EAC businessmen will meet on July 6, with a view of discussing business and how to improve their products so that can compete at international markets. Read more. Source | The Citizen
Published on June 22, 2017
Tanzania's Gross Domestic Products (GDP) is tipped to grow by 7.2 per cent to become the world fourth fastest economy in this year. According to World Economic Prospect June report the country economy forecasted to grow at per with India GDP.
The report showed that the fastest growing economy in the world this year is Ethiopian at 8.3 per cent and the fifth globally is Djibouti at 7.0 per cent. The three non-resourceintensive economies, the only from Africa in top five, expected to grow well above the Sub Sahara Africa average growth of 2.6 per cent in this year.
“Growth in SSA is forecast to pick up to 2.6 per cent in 2017, and average 3.4 per cent in 2018-19, slightly above population growth. “Growth in non-resource intensive countries is expected to remain solid, supported by domestic demand,” the report said. Read more. Source | Daily News
Published on June 12, 2017
East African Community (EAC) member states have prioritised development expenditure as countries look to further strengthen the growth agenda of the regional economies.
In the national budget estimates presented yesterday, Tanzania will be spending $14.21 billion and Uganda $8.09 billion in the fiscal year 2016/17. Rwanda plans to spend some Rwf2.09 trillion compared to the Rwf1.95 trillion spent this fiscal year.
Kenya’s budget for the 2017/2018 fiscal year was presented in March to give room for the forthcoming general elections in August. The EAC states presented their 2017/18 budgets under the theme, ‘Industrialisation for job-creation and shared prosperity’. Read more. Source | New Times
Published on June 07, 2017
Agriculture is the backbone of Tanzania’s economy, we are often reminded. Yet, it contributes only 30 per cent to the GDP, while providing jobs to 67 per cent the country’s people of employable age.
With high rate of rural-urban migration, the number of young in our towns is much higher that the available jobs. It is like our young move to towns to escape from farming and livestock keeping. Climate change has resulted in poor rain and soil infertility and our youth notice that little is achievable by engaging in agriculture.
They cannot see themselves leading good life from tilling the land. Negative attitudes towards agriculture can be reversed if more money is pumped into the sector. That is why we applaud the African Development Bank’s Sh209.5 billion support to Tanzania Agricultural Development Bank (TADB). Read more. Source | The Citizen
Published on June 07, 2017
World Bank has forecasted Tanzania as the third fastest growing economy in Africa next year after Ethiopia and Ghana. In a brief report, Global Economic Prospects: Sub-Saharan Africa, the WB predicted Tanzania to grow 7.2 per cent behind Ghana 7.8 per cent and Ethiopia 8.3 per cent.
The Breton Wood institute said the growth in Tanzania and Ethiopia, non-resource intensive countries, would be helped by public investment. “Growth in non-resource intensive countries is anticipated to remain solid, supported by infrastructure investment, resilient services sectors, and the recovery of agricultural production,” WB said in a statement issued on Sunday.
The report brief further said weather-related risks are elevated in East Africa. “Worsening drought conditions will severely affect agricultural production, push food prices higher, and increase food insecurity in the subregion,” the bank said. Read more. Source | Daily News