Tanzania Economy - 2022

GEOGRAPHICAL NAMES 

Economic overview

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.

Real GDP (purchasing power parity)

$152.79 billion (2020 est.)

$149.79 billion (2019 est.)

$141.59 billion (2018 est.)

note: data are in 2017 dollars

Real GDP growth rate

6.98% (2019 est.)

6.95% (2018 est.)

6.78% (2017 est.)

Real GDP per capita

$2,600 (2020 est.)

$2,700 (2019 est.)

$2,600 (2018 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$60.633 billion (2019 est.)

Inflation rate (consumer prices)

3.4% (2019 est.)

3.5% (2018 est.)

5.3% (2017 est.)

Credit ratings

Moody's rating: B2 (2020)

note: The year refers to the year in which the current credit rating was first obtained.

GDP - composition, by sector of origin

agriculture: 23.4% (2017 est.)

industry: 28.6% (2017 est.)

services: 47.6% (2017 est.)

GDP - composition, by end use

household consumption: 62.4% (2017 est.)

government consumption: 12.5% (2017 est.)

investment in fixed capital: 36.1% (2017 est.)

investment in inventories: -8.7% (2017 est.)

exports of goods and services: 18.1% (2017 est.)

imports of goods and services: -20.5% (2017 est.)

Agricultural products

cassava, maize, sweet potatoes, sugar cane, rice, bananas, vegetables, milk, beans, sunflower seed

Industries

agricultural processing (sugar, beer, cigarettes, sisal twine); mining (diamonds, gold, and iron), salt, soda ash; cement, oil refining, shoes, apparel, wood products, fertilizer

Industrial production growth rate

12% (2017 est.)

Labor force

24.89 million (2017 est.)

Labor force - by occupation

agriculture: 66.9%

industry: 6.4%

services: 26.6% (2014 est.)

Unemployment rate

10.3% (2014 est.)

Youth unemployment rate (ages 15-24)

total: 3.9%

male: 2.9%

female: 4.9% (2020 est.)

Population below poverty line

26.4% (2017 est.)

Gini Index coefficient - distribution of family income

40.5 (2017 est.)

34.6 (2000)

Household income or consumption by percentage share

lowest 10%: 2.8%

highest 10%: 29.6% (2007)

Budget

revenues: 7.873 billion (2017 est.)

expenditures: 8.818 billion (2017 est.)

Budget surplus (+) or deficit (-)

-1.8% (of GDP) (2017 est.)

Public debt

37% of GDP (2017 est.)

38% of GDP (2016 est.)

Taxes and other revenues

15.2% (of GDP) (2017 est.)

Fiscal year

1 July - 30 June

Current account balance

-$1.313 billion (2019 est.)

-$1.898 billion (2018 est.)

Exports

$9.66 billion (2019 est.) note: data are in current year dollars

$8.46 billion (2018 est.) note: data are in current year dollars

Exports - partners

India 20%, United Arab Emirates 13%, China 8%, Switzerland 7%, Rwanda 6%, Kenya 5%, Vietnam 5% (2019)

Exports - commodities

gold, tobacco, cashews, sesame seeds, refined petroleum (2019)

Imports

$10.36 billion (2019 est.) note: data are in current year dollars

$10.2 billion (2018 est.) note: data are in current year dollars

Imports - partners

China 34%, India 15%, United Arab Emirates 12% (2019)

Imports - commodities

refined petroleum, palm oil, packaged medicines, cars, wheat (2019)

Reserves of foreign exchange and gold

$5.301 billion (31 December 2017 est.)

$4.067 billion (31 December 2016 est.)

note: excludes gold

Debt - external

$22.054 billion (2019 est.)

$20.569 billion (2018 est.)

Exchange rates

Tanzanian shillings (TZS) per US dollar -

2,319 (2020 est.)

2,300 (2019 est.)

2,299.155 (2018 est.)

1,989.7 (2014 est.)

1,654 (2013 est.)

NOTE: The information regarding Tanzania on this page is re-published from the 2022 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Tanzania 2022 information contained here. All suggestions for corrections of any errors about Tanzania 2022 should be addressed to the CIA or the source cited on each page.