Tanzania Economy : An Introduction
The economic infrastructure of
Tanzania hasn't been able to come out of its colonial days, and finds its place amongst the most inadequate economies in the world. It was formed by the union of Tanganyika and Zanzibar in 1964 soon after the independence from British colonial rule, and had its first democratic elections only in 1995.
The mining industry especially gold mining has gradually undergone a long term growth leading to a rise in the earning of foreign revenues riding the increased production of minerals.
Sectoral Overview of the Tanzania Economy
The industrial sector of the
Tanzania Economy mainly comprises of the industries related with the agricultural processing including sugar, beer, and cigarettes in addition to mining of diamond, gold, and iron besides salt and soda ash. The industrial production growth rate of
Tanzania which is close to a 9 percent is ranked 33th in the world.
Agriculture provides employment for nearly 4/5th of the total working population of the
Tanzania Economy besides accounting for nearly half of the total GDP of the economy. Coffee, tobacco, sisal, tea, cotton, fruits and vegetables are the major agricultural products. The cultivation of livestock including cattle, sheep and goats is also done.
Market Performance : Tanzania Economy
Firm macroeconomic policies adopted by the
Tanzania Economy together with donations from external agencies have led to a rise in the real GDP growth which is presently about 6 percent, mainly reflected in the substantial growth of the private-sector growth as well as foreign investments.
The inflation rate based upon consumer prices was calculated to be around 6 percent, which is not much for a poor country like
Tanzania.
Export and Import of the Tanzania Economy
Gold, coffee, cashew nuts and cotton are the main items that are exported by the
Tanzania Economy and are the major contributors towards the roundabout $2 Billions amassed by the nation through exports. China, Canada, India, Netherlands, Japan, and Germany are the main trading partners of
Tanzania in relation to exports.
Tanzania mainly imports things like consumer goods, machinery and transportation equipments, industrial raw materials and crude oil from South Africa, China, Kenya, India and UAE. The gross imports of the
Tanzania Economy increased by a significant 33 percent from around $2.4 Billions to about $3.2 Billions in the fiscal just ended.
Tanzania Economy : Balance of Payments
The external debt of the
Tanzania Economy almost halved from around $8.2 Billions to $4.6 Billions during the last fiscal.
The current account balance of
Tanzania Economy is however going through a large deficit which increased by nearly 63 percent to around $906 Millions from a comparatively lesser deficit of nearly $560 Millions.
The reserves of foreign exchange and gold of
Tanzania amounting close to $2.4 Billions is a distant 94th in the world.
International Relations of the Tanzania Economy
Tanzania shelters the maximum number of expatriates from other African nations, mainly from Burundi and Democratic Republic of Congo in spite of the trials to reinstate these numerous refugees to their own countries, on part of the international community.
The international boundary with Malawi near Lake Nyasa and also that near the Songwe River is a major dispute concerning the
Tanzania Economy
For more information on
Tanzania Economy one may log on to indexmundi.com, mbendi.co.za .