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Tanzania Tanzania

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Tanzania

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EconomicPoliticalStructural

Tanzania – Quick View
ECR score36.36 (Mar 2011)
ECR rank112 (Mar 2011)
Economic
GDP 2010USD 21.69 billion
GNI per capita PPP 2010USD 1,344
FDI inflow 2009USD 414.54 million
Inflation 20104.96%
Central Bank Assets 2008USD 4.55 billion
Unemployment rate 20064.3%
Government deficit 2009USD 1.87 billion
Tax revenue 2009USD 3.01 billion
Political
Government typeParliamentary Democracy
Recent political crisisNA
Economic freedom score108th
Freedom of information score41st
Corruption perception index 2010116th
Structural
Crude Birth rate 200941(per ‘000 population)
Population BalanceUnder 14 – 44.7%
Population BalanceMen over 60 – 4.4%
Population BalanceWomen over 60 – 5.3%
Life expectancy years56.9 years
Under-5 Mortality rate 2008104 (per '000)
Literacy rate 201073.2%
Internet access1.6%

[Top] Economic Overview

Tanzania has an open economy, with a rapidly-developing private sector. It has grown substantially in the past decade. Agriculture is the main occupation of the nation accounting for almost 27% of the GDP and employing 80% of the population.

(Source: Heritage.org)

Gross domestic product (GDP)

Tanzania’s GDP has experienced a steady increase from 2005 to 2010. In 2010, GDP is estimated to reach TZS 31,625.96 billion.

Tanzania GDP

 

e = estimated

(Sources: imf.org 

GDP growth rate

GDP growth rate in 2005 was registered at 4.9%. The rate increased till 2007 reaching 6.3%, when it declined to 5.4% by 2008.

Tanzania GDP growth rate

(Sources: National Statistics)

Gross national income (GNI) at Purchasing Power Parity (PPP)

Tanzania’s GNI fluctuated from 1990 to 2000. However, from 2000 to 2010 it was on a steady rise. In 2010, GNI was recorded at USD 1,344 million. 

 

Tanzania GNI at PPP

(Source: undp.org)

Inflation

Tanzania’s inflation rate has recorded an overall rise from 2005 to 2008. In 2008, inflation was 13.47%, however it fell marginally to 12.23% in 2009. Furthermore for 2010, the rate is estimated ti fall drastically to 4.96%.

Tanzania Inflation Rate

e = estimate

(Sources: imf.org)

Tax rate

Tanzania has a progressive income tax system on an individual's income.

(Source: Tax Rates)

Personal income tax

Income Range (TZS)

Tax Rate (%)

0 - 135,000

Nil

135,000 - 360,000

14%

360,000 - 540,000

20% + TZS 31,500

540,000 - 720,000

25% + TZS 67,500

Over 720,000

  30% + TZS 112,500

(Source: Tax Rates)

Corporate income tax in the country is 30% and VAT rate is levied at 18%.

The country also levies other taxes on individuals such as: capital acquisition tax, stamp duty, property tax, net worth tax and social security.

(Source: Tax Rates)

Foreign direct investment (FDI)

From 2005 to 2007, Tanzania witnessed rising FDI inflows from USD 494.05 million to USD 646.97 million. After 2007, investments declined, reaching USD 414.54 million by 2009. 

 

Tanzania FDI

(Source: Worldbank.org)

Central bank assets

The Bank of Tanzania is the regulatory authority of the country’s banking sector. From 2004 to 2008, the bank’s total assets showed a steady rise from TZS 3,527.57 billion to TZS 5,555.55 billion.

 

Tanzania Bank Sector Assets

(Source: Central Bank)

[Top] Financial Indicators & Government Financial

Consumer price index (CPI)

CPI in Tanzania has registered an annual increase from 120.9 in 2005 to 153 in 2010.

Tanzania Consumer Price Index

Base year = 2001               

(Sources: National Statistics)

Interest rates

Deposit Type

2005 (Dec.) (%)

2006 (Dec.) (%)

2007 (Mar.) (%)

Savings Deposit

2.6

2.6

2.6

Time deposit

5.3

7.2

7.7

(Source: Central Bank)

The interest rate on savings deposits was recorded at 2.6% in 2007. While the rate on time deposits for the same year was 7.7%.

Money supply

From 2008 to 2009, money supply shows a moderate increase.

Tanzania Money Supply

(Source: Central Bank)

Official exchange rate

Tanzania’s exchange rate has experienced an overall rise from 2004 to 2008 against the USD. In 2009, the exchange value of TZS/USD was 1,354.

 Tanzania Exchange Rate


(Source: National Statistics)

Government finances

Fiscal balance

From 2005 to 2009, Tanzania’s fiscal balance has witnessed a continual deficit. In 2009 the balance was registered at a deficit of TZS 2,518.8 billion.

Tanzania Fiscal Balance

 

(Source: National Statistics)

Total revenue

Tanzanian government’s total revenue has increased steadily from TZS 1,773.70 billion in 2005 to TZS 4,293.10 billion in 2009.

Tanzania Total Revenue

(Source: National Statistics, page: 105)

Tax Revenue
A steady rise in tax revenue is witnessed from 2005 to 2009. As of 2009, revenue collected through tax amounted to TZS 4,043.70 billion.
Tanzania Tax Revenue

(Source: National Statistics)

Total grants

Tanzania Grants

(Source: National Statistics)

Current account balance

Tanzania’s current account balance has remained negative in 2008 and 2009. In 2009, the current account deficit was USD 2,548.10 million.

Tanzania Current Account Balance

 (Sources: Central Bank)

Balance of payments

Tanzania’s balance of payments has registered steadily rising deficits from 2005 to 2008. The deficit amounted to TZS 5,644 billion in 2008.

 

Tanzania Balance of Payments

(Sources: National Statistics)

[Top] Labour Force and Employment Overview

The Ministry of Labour, Youth and Sports Development governs Tanzania’s social development and labour welfare. It promotes safe work conditions, youth development and social welfare. The ministry provides placement services in public and private sectors, and offers other services such as, advisory services, information services, cross-border placements and quality assurance services.

 (Sources: Government of Tanzania) 

Minimum wage

In 2010, Tanzania’s minimum wage was recorded at TZS 250,000 per month.

(Sources: All Africa)

Unemployment rate

In 2010, Tanzania’s targeted unemployment rate was 6.9%.

(Source: ilo.org)

Level of unionisation

The national representative of all Tanzanian workers is the Organisation of Tanzania Trade Unions.             

Strikes are not permitted in the public sector. Collective bargaining is forbidden in civil service. Collective agreements in other sectors are submitted to Industrial Courts.

Zanzibar imposes more restrictions on trade union rights than the rest of the country.

(Source: National Trade Union Organisation, ituc-csi.org) 

[Top] Political Stability

Tanzania’s government is a parliamentary democracy following a multi-party system.

The government regulates and controls all state authority in the country. It has three branches, namely, the executive, the judiciary and the legislature. 

As of 2011, Mr. Jakaya Mrisho Kikwete is the President of the United Republic of Tanzania and Dr. Ali Mohamed Shein is the President of Zanzibar. Additonally, Hon. Mizengo Kayanza Peter Pinda is the Prime Minister of the United Republic of Tanzania.

(Source: Government of Tanzania)

 Regulatory environment

Tanzania Economic Freedom Indices

(Source: Heritage.org)

Tanzania stands 108th on the 2011 Economic Freedom Index, with a score of 57. The country is ranked 15th amongst the 46 countries of the Sub-Saharan Africa region.

(Source: Heritage.org)

Freedom of information

In 2010, Tanzania was ranked 41st on the Press Freedom Index. The index contains countries with scores ranging from zero, implying most freedom, to about 105. Tanzania scores 13.00 points on this index, indicating moderate regulations on the media.

(Source: rsf.org)

Corruption

The Corruption Perceptions Index (CPI) is a survey that measures the perceived level of corruption across countries worldwide. Tanzania is ranked 116th out of 178 countries in the 2010 index, indicating that it is perceived as moderately corrupt.

(Sources: Transparency.org)

Judicial system

Tanzania’s judicial system is based on common law. The system consists of High Courts, Court of Appeal, Judicial Service Commission, Primary Courts and Magistrate Courts.

Judicial Service Commission is comprised of the Principal Judge of the High Court, the Justice Court of appeal, two members appointed by the President and the Justice court of Appeal of Tanzania.

The national laws are reviewed by the Tanzania Law Reform Commission.

(Source: Government of Tanzania)

[Top] Demographic Overview

Population

Tanzania Population

(Source: Worldbank, undp) 

Tanzania’s population shows a marginal annual increase from 2005 to 2008. 26.4% of Tanzania’s population is classified as urban.

(Source: undp) 

In 2009, the population below 14 years of age constituted 44.7%.

(Source: un.org)

The country’s gender ratio was recorded at 101.9 (men per 100 women) in 2010.

(Source: undp,) 

In 2010, the average life expectancy in Tanzania was 56.9 years and median age was about 17.5 years.

(Source: undp) 

In 2008, under-5 mortality (per 1000 live births) was registered at 104.

(Source: undp)

In 2009, crude birth rate was registered at 41%.   

(Source: unicef.org)

Human development index (HDI)

The country is ranked 148th on United Nation’s Human Development Index. It falls in the category of Low Human Development. HDI integrates a country’s life expectancy, schooling and income. This signifies the overall social and economic development of a nation.

(Source: undp,)

[Top] Soft Infrastructure

Education

In 2010, Tanzania’s literacy rate was registered at 73.2%.

There are two different educational authorities in Tanzania: mainland and Zanzibar. Tanzania mainland’s compulsory primary education lasts seven years, while Zanzibar’s basic education lasts ten years.  Primary education is taught in the national language of Kiswahili, while secondary education is taught in English.  

The Tanzania Institute of Education (TIE) develops the educational curriculum in Tanzania mainland. While the Ministry of Education and Curriculum Division of Department of Professional Services are the corresponding authorities in Zanzibar. 

Tanzania mainland’s education is funded through public bodies such as the government and the public communities.

(Source: ibe.unesco, undp) 

Health

The Ministry of Health and Social Welfare is the governing body of Tanzania’s health sector. It ensures the availability of affordable healthcare services to its people. It is responsible for provision of health and health related services such as: forensic services, hospital services, food and drug quality services, preventive education, and the supervision of government agencies.

The ministry is comprised of supporting units such as, the Nursing Services Unit, the Health Services Inspectorate Unit, the Primary Health Care Unit and the Accounts Unit.

Basic health services are offered by the government, private practitioners, voluntary organizations, parastatal organizations and religious organizations. Remote regions and villages receive Village Health Service centres, which are assisted by dispensaries.           

(Sources: Ministry of Health)

[Top] Hard Infrastructure

 Roads (2009)

Road Type

Road Length (km.)

Trunk Roads

12,786.2

Regional Roads

20,225.8

Total Roads

33,012.0

(Sources: National Statistics)

In 2009, total road network was measured at 33,012 km. Out of these 12,786.2 km. were trunk roads and 20,255.8 were covered as regional roads.

Tanzania Railways

 

2008

2007

2006

2005

Freight ('000 tons)

429

714

775

1,169

Passengers ('000)

392

524

594

514

(Sources: National Statistics, page: 31)

Tanzania Railways experienced fall in passengers and freight from 2006 to 2008. 

Sea Ports

Tanga Port

 

2008

2007

2006

2005

Ships called

95

242

281

215

Cargo ('000 tons)

178

542

519

289

Passenger ('000)

8.3

7.1

6.6

6.4

(Sources: National Statistics, page: 31)

Passenger traffic is seen to have increased from 2005 to 2007 at Tanga port. Cargo traffic and ships called increased up to 2007 and fell thereafter.

Mtwara Port

 

2008

2007

2006

2005

Ships called

36

99

110

107

Cargo ('000 tons)

82

112

153

61

Passenger ('000)

0

10

9.4

28

(Sources: National Statistics, page: 31)

Passenger and cargo traffic recorded and overall decline from 2005 to 2008 at the Mtwara port.

Airways

Passenger Traffic

 

2008

2007

2006

2005

Air Tanzania and Precision Air Passengers ('000)

737

761

580

602

Other Internal Airlines Passengers ('000)

350

313

431

360

(Sources: National Statistics, page: 31)

Tanzania has 72 airports, with the major ones being, Dar-Es-Salaam, Kilimanjaro, Mtwara and Mwanza.

(Sources: Aircraft World Charter)

Telecommunication

Zantel and TTCL are the fixed-line phone operators functioning in Tanzania. Key mobile operators are Zain, Vodacom, Zantel and Tigo.

Telephone

The country experienced moderate fluctuations in fixed telephone line installations from 154,360 in 2005 to 172,922 in 2009.

Tanzania Fixed Telephone Subscribers

(Sources: ITU)

Mobile Cellular Subscriptions

Tanzania witnessed steady increase in mobile subscriptions from 2005 to 2009. In 2009, total subscriptions were recorded at 17.47 million.

Tanzania Mobile Subscribers

(Sources: ITU)

2009-10 witnessed the installation of international fibre optic submarine cables in the country. The government plans to connect major cities through fibre optic cable networks. The cost of international internet bandwidth however, is expensive.

Approximately 115,000 out of 41,892,895 people, i.e. 1.6% of population used the Internet in 2010. From 2000 to 2010, Internet users grew by 487.8%.

(Sources: Internet World Stats, Internet World Stats)

 

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