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.
Related Blogs and Resources
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
Published on May 31, 2017
A city based transporter predicts an increase of cargo traffic volume at the Dar es Salaam port thanks to improved efficiency and upgrading of infrastructure that has raised its competitive edge.
Mr Aly Dewji, the Director of Simba Logistics said in Dar es Salaam yesterday that transporters were seen to have renewed trust after the port improved efficiency in cargo handling and upgrading of infrastructure as part of modernisation of the port under support of development partners. The port should also expect more cargo traffic volume from projected trade rebound from a slowdown due to commodity price slump.
“We expect a boom in logistics business this year after a slight slump last year," he said at a brief ceremony to receive ten Mercedes Benz trucks which it imported from the United Kingdom through an asset financing it acquired from NIC Bank Tanzania Limited. Read more. Source | Daily News
Published on May 31, 2017
The requirement that one needs to have a passport in order to move outside the country is barring Tanzanian small-scale traders from accessing a wider market under the East African Community (EAC), The Citizen has learnt.
As a result, they are largely confined to Tanzania’s boundaries even as they are legally allowed to sell their products – under domestic terms – to Kenya, Uganda, Rwanda, Burundi and South Sudan under the EAC Common Market arrangement.
Speaking in Dar es Salaam yesterday, the chairman for an association that brings together operators of small businesses and petty traders – popularly known as Vibindo Society – Mr Gaston Kikuwi said as small-scale traders and business owners, they usually find it difficult to go through the bureaucracy of getting required passports. Read more. Source | The Citizen
Published on May 16, 2017
At least 1,000 participants will take part in the innovation week to support innovators with opportunities to find new solutions on health, education and water and sanitation challenges.
The innovation week 2017 that begins today has been organised by Tanzania Commission for Science and Technology (COSTECH) in partnership with the Human Development Innovation Fund (HDIF), a UK Aid Investment in Innovation in Tanzania that was launched in Dar es Salaam at the weekend.
Human Investment Team Leader in Tanzania for the Department for International Development (DFID), Ms Jane Miller said the initiative supports local innovators to come up with solutions of the society problems. Read more. Source | Daily News
Published on April 19, 2017
Two Tanzanian entrepreneurs: Hadiya and Mzuzi. Hadiya built a successful micro-business taking advantage of mobile money services, including money transfers and savings products that are low cost and safe, as well as short term micro-loans.
Mzuzi, owner of a small 10-person enterprise, is facing a financial crisis despite huge personal drive and inventiveness, because of his inability to access credit to expand his business.
The stories of these two entrepreneurs embody the experiences of real-life Tanzanians seeking to extend opportunities for themselves and their families. Read more. Source | The Citizen