VIPUL BHARADWAJ SIDDHANT
NITESH SHAW AKANSHA
A GROUP PRESENTATION ON TANZANIA-
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.
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.
YET MAJOR DEVELOPMENT CHALLENGES
Tanzania has the highest rate of extreme poverty in the
Low labor and land productivity constrains the ability of
Access to finance remains low.
Restrictions to doing business in the country are still
Access to electricity in Tanzania is extremely low.
31.81 births/1,000 population (2011 est.)
-0.29 migrant(s)/1,000 population (2011 est.)
urban population: 26% of total population (2010)
total population: 0.98 male(s)/female (2011 est.)
infant mortality rate
total: 65.74 deaths/1,000 live births
ENVIRONMENT AND NATURAL
• The natural environment is diverse.
• A range of challenges require attention.
-Deforestation is taking at a high rate.
-Lack of clean water .
-Overgrazing has led to soil degradation and
• Biodiversity is threatened by overfishing and
• Government measures are being taken to sustain
the environment and natural resources.
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
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
Although the agricultural sector
is growing, labour and crop
productivity is still low.
This is due to global food crisis. 0
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
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.
GDP - $23.71 Billion at current prices(2011)
GDP PERCAPITA - $1500
LABPOUR FORCE – 21.23M
REVENUE - $4.60B, EXPENDITURE - $6.12B
INDUSTRAIL PRODUCTION GROWTH – 7%
EXPORTS - $5.43B, IMPORTS – $8.63B
CURRENCY – TANZANIAN SHILLING = 0.0006USD
TANZANIA - WITH THE WORLD
Tanzania is member of several regional economic blocks
EAC – East African Community
Southern African Development Community
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.
Tanzania Uganda Kenya Rwanda
FDI inflows to Tanzania
Government And Business
•Reforms are being Implemented but
business environment in Tanzania is
Tanzania Investment Act & Business Environment
Strengthening Tanzania(BEST) has created to better the
•Privatization efforts have been
Opening the Economy to more Foreign Investments;
Encourage Lending to Pvt sector
• Small and Medium Enterprises contribute
significantly to the economy but face
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
• 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
• 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
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 :
ores and metal
cloves & other
Imports include :
mineral fuels, oils
yarn, apparel & clothing
articles of iron & steel
rubber items including
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
A number of Indian companies like ONGC, Larsen & Toubro Limited, NMDC
were involved in various government and non-government projects in