Tanzania flag

The Economy of Tanzania

Tanzanian Economy

Tanzania's map

Economy - overview: Tanzania is in the bottom ten percent of the world's economies in terms of per capita income. The economy depends heavily on agriculture, which accounts for more than 40% of GDP, provides 85% of exports, and employs 80% of the work force. Topography and climatic conditions, however, limit cultivated crops to only 4% of the land area. Industry traditionally featured the processing of agricultural products and light consumer goods. The World Bank, the IMF, and bilateral donors have provided funds to rehabilitate Tanzania's out-of-date economic infrastructure and to alleviate poverty. Long-term growth through 2005 featured a pickup in industrial production and a substantial increase in output of minerals led by gold. Recent banking reforms have helped increase private-sector growth and investment. Continued donor assistance and solid macroeconomic policies supported real GDP growth of 7.1% in 2008.

GDP:

GDP - real growth rate: 7.1% (2008 est.) 7.1% (2007 est.) 6.7% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 27% industry: 22.7% services: 50.3% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: 2.9% highest 10%: 26.9% (2000)

Distribution of family income - Gini index: 34.6 (2000)

Inflation rate (consumer prices):

Labor force: 20.38 million (2008 est.)

Labor force - by occupation: agriculture: 80% industry and services: 20% (2002 est.)

Unemployment rate: NA%

Budget: revenues: $4.216 billion expenditures: $4.658 billion (2008 est.)

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

Industrial production growth rate: 10% (2008 est.)

Electricity - production: 2.682 billion kWh (2006 est.)

Electricity - production by source:

Electricity - consumption: 2.225 billion kWh (2006 est.)

Electricity - exports: 0 kWh (2007 est.)

Electricity - imports: 123 million kWh (2006 est.)

Oil - production: 0 bbl/day (2007 est.)

Oil - consumption: 27,270 bbl/day (2006 est.)

Oil - exports: 0 bbl/day (2005)

Oil - imports: 26,760 bbl/day (2005)

Oil - proved reserves: 0 bbl (1 January 2006 est.)

Natural gas - production: 146 million cu m (2006 est.)

Natural gas - consumption: 146 million cu m (2006 est.)

Natural gas - exports: 0 cu m (2007 est.)

Natural gas - imports: 0 cu m (2007 est.)

Natural gas - proved reserves: 6.513 billion cu m (1 January 2008 est.)

Agriculture - products: coffee, sisal, tea, cotton, pyrethrum (insecticide made from chrysanthemums), cashew nuts, tobacco, cloves, corn, wheat, cassava (tapioca), bananas, fruits, vegetables; cattle, sheep, goats

Exports: $2.49 billion f.o.b. (2008 est.)

Exports - commodities: gold, coffee, cashew nuts, manufactures, cotton

Exports - partners: China 10.3%, India 9.7%, Netherlands 6.5%, Germany 6.3%, UAE 4.9% (2007)

Imports: $5.901 billion f.o.b. (2008 est.)

Imports - commodities: consumer goods, machinery and transportation equipment, industrial raw materials, crude oil

Imports - partners: China 12%, Kenya 8%, South Africa 7.7%, India 6.9%, UAE 5.9% (2007)

Debt - external: $5.311 billion (31 December 2008 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: Tanzanian shillings (TZS) per US dollar - 1,178.1 (2008 est.), 1,255 (2007), 1,251.9 (2006), 1,128.93 (2005), 1,089.33 (2004)

Fiscal year: