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Economic overview of Tanzania
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Economic overview of Tanzania


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  • 2. FAST FACTS ABOUT TANZANIA  The name Tanzania is a portmanteau of Tanganyika, the mainland, and Zanzibar, the nearby archipelago in the Indian Ocean.  It has a surface area of 947,300sq. kms. & a population of approximately40.4 million.  Agriculture remains the mainstray of Tanzania’s economy,accounting for one-quarter of GDP & approx. 80 percent of employment.
  • 3. TANZANIA IS PERFORMING WELL IN…  Economic performance in Tanzania has been solid in recent years with high levels of growth,increasing level of exports &financial deepening in terms of growth.  Tanzania’s tourism industry has been a source of dynamism over the past decade,growing from 7.5 percent of GDP in 2001 to 16 percent in 2010.  FDI flows to Tanzania are greater than to other East African community countries.  International debt reduction initiatives have allowed Tanzania to dramatically reduce its external debt,from 77 percent of GNP.
  • 4. YET MAJOR DEVELOPMENT CHALLENGES ARE………..  Tanzania has the highest rate of extreme poverty in the world.  Low labor and land productivity constrains the ability of agriculture.  Access to finance remains low.  Restrictions to doing business in the country are still pervasive.  Access to electricity in Tanzania is extremely low.
  • 5. Birth rate 31.81 births/1,000 population (2011 est.) Death rate -0.29 migrant(s)/1,000 population (2011 est.) Urbanization urban population: 26% of total population (2010) Sex ratio total population: 0.98 male(s)/female (2011 est.) infant mortality rate total: 65.74 deaths/1,000 live births
  • 6. ENVIRONMENT AND NATURAL RESOURCES • The natural environment is diverse. It includes -agriculture -fishery -forestry sectors -minerals
  • 7. CONTD………….. • A range of challenges require attention. -Deforestation is taking at a high rate. -Lack of clean water . -Overgrazing has led to soil degradation and desertification. • Biodiversity is threatened by overfishing and illegal hunting. • Government measures are being taken to sustain the environment and natural resources.
  • 8. ECONOMY OF TANZANIA  Intensification of reforms since 1990s has led to increased inflows both FDI and foreign aid.  Growing faster than sub saharian economies and fastest growing non oil economies.  A 16.2 billion economy  GDP has recorded high growth in recent years.  Agriculture remains the mainstay of the economy.  with 29% share to GDP, Industry 24% and services 47%.  Droughts occur in Tanzania with regularity reducing agricultural output  Although the agricultural sector is growing, labour and crop productivity is still low.  This is due to global food crisis. 0 1 2 3 4 5 6 7 8 Sub - Saharan Africa Tanzania
  • 9.  Manufacturing sector is small but growing.  Manufacturing represents 8% of GDP, low compared to sub – Saharan African average of 14.  It is growing steadily since 2000.  Lack of technology expertise and labour force are constraints, making it to contribute only 3% of GDP  The size of informal sector is substantial.  Informal Economic activity is equivalent to 60% of GDP as of 2002-03.  This is due to dearth of formal sector and opportunity it avails to incubate new business ideas into viable enterprises.  Improved domestic revenue collection has been supporting fiscal policy.  Domestic Revenue saw a upward trend since 2000s.  Rose from 16% in 2007-08 to 18% in 2008-09.  But deficit before grants increased from 5.5% of GDP in 2000 to 12.5% of GDP in 2008.  Inflation has intensified.  Inflation pressures have intensified in 2008 - CPI inflation was 13.5% y-o-y as on Dec 2008.
  • 10. ECONOMIC INDICATORS  GDP - $23.71 Billion at current prices(2011)  GDP PERCAPITA - $1500  LABPOUR FORCE – 21.23M  REVENUE - $4.60B, EXPENDITURE - $6.12B  INFLATION 12.7%  INDUSTRAIL PRODUCTION GROWTH – 7%  EXPORTS - $5.43B, IMPORTS – $8.63B  CURRENCY – TANZANIAN SHILLING = 0.0006USD
  • 11. TANZANIA - WITH THE WORLD  Tanzania is member of several regional economic blocks  EAC – East African Community  Southern African Development Community  African Union 0 5 10 15 20 25 30 china India Netherlands Germany UAE Japan UK SA Malawi %oftotalexports 0 2 4 6 8 10 12 14 %oftotalimports
  • 12. Foreign Direct Investments have grown in recent years. $474.5 million in 2006, which is 3.3% of GDP. Annual ODI inflows of 13.8% of GNI reflects the stable political environment. 0 100 200 300 400 500 600 Tanzania Uganda Kenya Rwanda $million FDI inflows to Tanzania 2004 2005 2006
  • 13. Government And Business Environment •Reforms are being Implemented but business environment in Tanzania is still poor. Tanzania Investment Act & Business Environment Strengthening Tanzania(BEST) has created to better the business environment •Privatization efforts have been partially successful Opening the Economy to more Foreign Investments; Encourage Lending to Pvt sector
  • 14. • Small and Medium Enterprises contribute significantly to the economy but face numerous constraints A series of reforms have been taken up to support the small and medium enterprises, 161% of GNI per capita is decreased to 92% to set up a new business • Infrastructure is underfunded, in a poor state and a major constraint to growth Electricity is a major Issue in Tanzania as only 10% of the nation is having an access to electricity No focus on transportation, leading to lengthy supply chains
  • 15. • Financial sector has undergone deep reforms but access to funds remain low Lending has been encouraged to the private sector Microfinance institutions are trying to fill in the gap • The banking sector remained relatively unharmed amid the global financial crisis Liquidity is adequate; credit to private sector has continued to grow; Banks continue to lend each other at 5% rate • The fight against corruption in both private and public sector, continues A Public Procurement Act has been taken up to curb the corruption problems Transparency International Reports say that the corruption condition tend to remain same in Tanzania
  • 16. Trade relationship with India India is the second largest destination for Tanzanian export after China, which represents 9% of total value of exports. Exports include :  cashew nuts,  Pulses  ores and metal scrap  Gemstones  cloves & other spices  tanning/dyeing, co loring materials Imports include :  mineral fuels, oils  Pharmaceuticals  motor vehicles  electrical machinery/ Equipment  yarn, apparel & clothing  articles of iron & steel  plastic products  rubber items including tyres  cotton fabrics
  • 17.  The Major companies in Tanzania are Bank of Baroda, Bank of India, Tata International Limited, Life Insurance Corporation of India, Reliance Industries Limited, Bharti Airtel, and others.  Government of India had extended a Line of Credit of US$ 40 million for financing Tanzanian agriculture sector.  Two Indian funded projects were set up : A Centre of Excellence in ICT by C- DAC; and the Pan African e-Network Project by TCIL. The Centre is named “India-Tanzania Centre for Excellence in Information and Communication Technology” [ITCoEICT.  A number of Indian companies like ONGC, Larsen & Toubro Limited, NMDC were involved in various government and non-government projects in Tanzania
  • 18. THANK YOU