Tanzania: Economy

Economy - overview

Tanzania is one of the poorest countries in the world. The economy depends heavily on agriculture, which accounts for about half 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 The World Bank, the International Monetary Fund, and bilateral donors have provided funds to rehabilitate Tanzania's out-of-date economic infrastructure and to alleviate poverty. Growth in 1991-2002 featured a pickup in industrial production and a substantial increase in output of minerals, led by gold. Oil and gas exploration and development played an important role in this growth. Recent banking reforms have helped increase private sector growth and investment. Continued donor assistance and solid macroeconomic policies supported real GDP growth of more than 5.2% in 2004.

GDP

purchasing power parity - $21.58 billion (2003 est.)

GDP - real growth rate

5.2% (2003 est.)

GDP - per capita

purchasing power parity - $600 (2003 est.)

GDP - composition by sector

agriculture: 44.7%
industry: 16%
services: 39.4% (2001 est.)

Population below poverty line

36% (2002 est.)

Household income or consumption by percentage share

lowest 10%: 2.8%
highest 10%: 30.1% (1993)

Distribution of family income - Gini index

38.2 (1993)

Inflation rate (consumer prices)

4.6% (2003 est.)

Labor force

13.495 million

Labor force - by occupation

agriculture 80%, industry and services 20% (2002 est.)

Unemployment rate

NA% (2001 est.)

Budget

revenues: $1.2 billion
expenditures: $2 billion, including capital expenditures of $NA (FY02/03 est.)

Industries

agricultural processing (sugar, beer, cigarettes, sisal twine), diamond and gold mining, oil refining, shoes, cement, textiles, wood products, fertilizer, salt

Industrial production growth rate

8.4% (1999 est.)

Electricity - production

2.906 billion kWh (2001)

Electricity - production by source

fossil fuel: 18.9%
hydro: 81.1%
other: 0% (2001)
nuclear: 0%

Electricity - consumption

2.752 billion kWh (2001)

Electricity - exports

0 kWh (2001)

Electricity - imports

50 million kWh (2001)

Oil - production

0 bbl/day (2001 est.)

Oil - consumption

17,000 bbl/day (2001 est.)

Oil - exports

NA

Oil - imports

NA

Oil - proved reserves

0 bbl (1 January 2002)

Natural gas - proved reserves

11.33 billion cu m (1 January 2002)

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

$978 million f.o.b. (2003 est.)

Exports - commodities

gold, coffee, cashew nuts, manufactures, cotton

Exports - partners

UK 17.1%, France 16.2%, Japan 10.1%, India 6.7%, Netherlands 5.7% (2002)

Imports

$1.674 billion f.o.b. (2003 est.)

Imports - commodities

consumer goods, machinery and transportation equipment, industrial raw materials, crude oil

Imports - partners

South Africa 10.8%, Japan 7.9%, India 6.1%, UAE 5.5%, Kenya 5.4%, UK 5.4%, US 5.2%, China 4.5%, Australia 4.1%, Bahrain 4% (2002)

Debt - external

$6.8 billion (2002 est.)

Economic aid - recipient

$1.2 billion (2001)

Currency

Tanzanian shilling (TZS)

Currency code

TZS

Exchange rates

Tanzanian shillings per US dollar - NA (2003), 966.58 (2002), 876.41 (2001), 800.41 (2000), 744.76 (1999)

Fiscal year

1 July - 30 June