Tanzania

Economics, Political, and Trade Overview

Source: Feb 10, 2022 Economist Intelligence Unit

Tanzania - In Short.

Overview of Tanzania

Tanzania contains some of Africa’s most iconic national parks and famous archeological sites, and its diverse cultural heritage reflects the multiple ethnolinguistic groups that live in the country. Its long history of integration into trade networks spanning the Indian Ocean and the African interior led to the development of Swahili as a common language in much of east Africa and the introduction of Islam into the region. A number of independent coastal and island trading posts in what is now Tanzania came under Portuguese control after 1498 when they began to take control of much of the coast and Indian Ocean trade. By 1700, the Sultanate of Oman had become the dominant power in the region after ousting the Portuguese who were also facing a series of local uprisings. During the following hundred years, Zanzibar – an archipelago off the coast of Tanzania – became a hub of Indian Ocean trade, with Arab and Indian traders establishing and consolidating trade routes with communities in mainland Tanzania that contributed to the expansion of the slave trade. Zanzibar briefly become the capital of the Sultanate of Oman before it split into separate Omani and Zanzibar Sultanates in 1856. Beginning in the mid-1800s, European explorers, traders, and Christian missionaries became more active in the region. The Germans eventually established control over mainland Tanzania – which they called Tanganyika – and the British established control over Zanzibar. Tanganyika later came under British administration after the German defeat in World War I. Tanganyika gained independence from Great Britain in 1961, and Zanzibar followed in 1963 as a constitutional monarchy. In Tanganyika, Julius NYERERE, a charismatic and idealistic socialist, established a one-party political system that centralized power and encouraged national self-reliance and rural development. In 1964, a popular uprising overthrew the Sultan in Zanzibar and either killed or expelled many of the Arabs and Indians who had dominated the isles for more than 200 years. Later that year, Tanganyika and Zanzibar combined to form the United Republic of Tanzania, but Zanzibar retained considerable autonomy. Their two ruling parties combined to form the Chama Cha Mapinduzi (CCM) party in 1977. NYERERE handed over power to Ali Hassan MWINYI in 1985 and remained CCM chair until 1990. Tanzania held its first multi-party elections in 1995, but CCM candidates have continued to dominate politics. Political opposition in Zanzibar has led to four contentious elections since 1995, in which the ruling party claimed victory despite international observers’ claims of voting irregularities. In 2001, 35 people in Zanzibar died when soldiers fired on protestors following the 2000 election. John MAGUFULI won the 2015 presidential election and the CCM won a two-thirds majority in Parliament. He was reelected in 2020 and the CCM increased its majority in an election that was also critiqued by observers. MAGUFULI died in March 2021 while in office and was constitutionally succeeded by his vice president, Samia Suluhu HASSAN.
Value
Country Full Name
Tanzania
Country Code
TZA
Region
Sub-Saharan Africa
Income Group
Lower middle income
Currency Unit
GDP
62409709111
Population
59734213
Land Area
885800
Net National Income Per Capita
930.7425043
GDP per Capita (PPP)
2779.91029

2020 GDP Growth Rate (Current USD)

2020 GDP Per Capita (Current USD)

2020 Urbanization Rate (%)

2020 Total Fertility Rate (Birth Per Woman)

Doing Business Score (100= Most Friendly)

Tanzania - Economic

Economy of Tanzania

Tanzania has achieved high growth rates based on its vast natural resource wealth and tourism with GDP growth in 2009-17 averaging 6%-7% per year. Dar es Salaam used fiscal stimulus measures and easier monetary policies to lessen the impact of the global recession and in general, benefited from low oil prices. Tanzania has largely completed its transition to a market economy, though the government retains a presence in sectors such as telecommunications, banking, energy, and mining.The economy depends on agriculture, which accounts for slightly less than one-quarter of GDP and employs about 65% of the work force, although gold production in recent years has increased to about 35% of exports. All land in Tanzania is owned by the government, which can lease land for up to 99 years. Proposed reforms to allow for land ownership, particularly foreign land ownership, remain unpopular.The financial sector in Tanzania has expanded in recent years and foreign-owned banks account for about 48% of the banking industry’s total assets. Competition among foreign commercial banks has resulted in significant improvements in the efficiency and quality of financial services, though interest rates are still relatively high, reflecting high fraud risk. Banking reforms have helped increase private-sector growth and investment.The World Bank, the IMF, and bilateral donors have provided funds to rehabilitate Tanzania’s aging infrastructure, including rail and port, which provide important trade links for inland countries. In 2013, Tanzania completed the world’s largest Millennium Challenge Compact (MCC) grant, worth $698 million, but in late 2015, the MCC Board of Directors deferred a decision to renew Tanzania’s eligibility because of irregularities in voting in Zanzibar and concerns over the government’s use of a controversial cybercrime bill.The new government elected in 2015 has developed an ambitious development agenda focused on creating a better business environment through improved infrastructure, access to financing, and education progress, but implementing budgets remains challenging for the government. Recent policy moves by President MAGUFULI are aimed at protecting domestic industry and have caused concern among foreign investors.

Unemployment Rate

Inflation Rate

Tanzania - GDP Composition

GDP Composiiton & Value Added of Tanzania

Last Updated: Jan, 2021, Updated For 2020.

Tanzania - GDP, Value Added

Demographics of Tanzania

the largest and most populous East African country; population distribution is extremely uneven, but greater population clusters occur in the northern half of country and along the east coast as shown in this population distribution map
Geographic Location

Eastern Africa, bordering the Indian Ocean, between Kenya and Mozambique

Races

mainland - African 99% (of which 95% are Bantu consisting of more than 130 tribes), other 1% (consisting of Asian, European, and Arab); Zanzibar - Arab, African, mixed Arab and African

Languages

Kiswahili or Swahili (official), Kiunguja (name for Swahili in Zanzibar), English (official, primary language of commerce, administration, and higher education), Arabic (widely spoken in Zanzibar), many local languages; note - Kiswahili (Swahili) is the mother tongue of the Bantu people living in Zanzibar and nearby coastal Tanzania; although Kiswahili is Bantu in structure and origin, its vocabulary draws on a variety of sources including Arabic and English; it has become the lingua franca of central and eastern Africa; the first language of most people is one of the local languagesmajor-language

Religion

Christian 63.1%, Muslim 34.1%, folk religion 1.1%, Buddhist <1%, Hindu <1%, Jewish <1%, other <1%, unspecified 1.6% (2020 est.)note: Zanzibar is almost entirely Muslim

Dependency & Expectancy of Tanzania

Last Updated: Jan, 2021

Dependency Ratio

Expectancy

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Tanzania - Social Media Briefing

Tanzania - Social Media & Social Commerce

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Politics & Policies of Tanzania

2021 Policies Overview

Updated Coming in March 2021 after our team finish summarizing countries policy.

International Organizations

ACP, AfDB, AU, C, CD, EAC, EADB, EITI, FAO, G-77, IAEA, IBRD, ICAO, ICC (NGOs), ICCt, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC (NGOs), MIGA, MONUSCO, NAM, OPCW, SADC, UN, UNAMID, UNCTAD, UNESCO, UNHCR, UNIDO, UNIFIL, UNISFA, UNMISS, UNWTO, UPU, WCO, WFTU (NGOs), WHO, WIPO, WMO, WTO

Import of Tanzania

Export of Tanzania

Import Destination

Export Destination