Tanzania is one of the world's poorest economies in terms of per capita income; however, Tanzania averaged 7% GDP growth per year between 2000 and 2008 on strong gold production and tourism. The economy depends heavily on agriculture, which accounts for more than one-quarter of GDP, provides 85% of exports, and employs about 80% of the work force. The World Bank, the IMF, and bilateral donors have provided funds to rehabilitate Tanzania's aging economic infrastructure, including rail and port infrastructure that are important trade links for inland countries. Recent banking reforms have helped increase private-sector growth and investment, and the government has increased spending on agriculture to 7% of its budget. Continued donor assistance and solid macroeconomic policies supported a positive growth rate, despite the world recession. In 2008, Tanzania received the world's largest Millennium Challenge Compact grant, worth $698 million. Dar es Salaam used fiscal stimulus and loosened monetary policy to ease the impact of the global recession. GDP growth in 2009-11 was a respectable 6% per year due to high gold prices and increased production. The GDP-official exchange rate is $23.2 billion in 2011. 36% of the total population is below poverty line.
INDICATORS OF GDP
2011
2010
2009
GDP (purchasing power parity)
$63.44 billion
$59.77 billion
$56.1 billion
GDP - real growth rate
6.10%
6.40%
6.70%
GDP - per capita (PPP)
$1,500
$1,400
$1,400
NOTE: Data are in 2011 US dollars
GDP - composition by sector
Labour force - by occupation
Unemployment
MONETARY POLICY
Inflation rate (consumer prices)
11.1% (2011 est.)
7.2% (2010 est.)
Central bank discount rate
8.25% (2010 est.)
3.7% (2009 est.)
Commercial bank prime lending rate
18.1% (2011 est.)
14.55% (2010 est.)
Stock of domestic credit
$5.077 billion (2011 est.)
$4.647 billion (2010 est.)
The inflation rate has increased from 2010 to 2011 that has given increase to commercial bank prime lending rate. The stock of domestic credit has been increased by $1 billion.
Budgetary Indicators 2011
COMPONENT
RATE/PERCENT
YEAR
Investment (gross fixed)
26.1% of GDP
2011
Budget:
1. Revenue
$4.603 billion
2011
2. Expenditures
$6.125 billion
Taxes & other revenues
21.3% of GDP
2011
Budget surplus(+) or deficit(-)
(-6.2)% of GDP
2011
Public debt
36.9% of GDP
2011
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
Industries
Agricultural processing (sugar, beer, cigarettes, sisal twine); mining (diamonds, gold, and iron), salt, soda ash; cement, oil refining, shoes, apparel, wood products, fertilizer
ITEM
CONSUMPTION
Electricity
4.281 billion kWh
Oil
38,000 bbl./day
Agriculture sector
GDP Contribution
The Tanzanian economy depends heavily on agriculture. It contributes around 25 % of overall GDP. Around 85% of the exports belong to Agriculture only and 80% of work force is engaged in this sector. However climate condition and topography limits the cultivation to around 4% of the land.
Cash crops including coffee (the largest amount of exports), tea, cotton, cashews, sisal, cloves, and pyrethrum, account for the vast majority of export earnings. Over the past few years earnings from the cash crops and goods have increased, but the problem is majority of the products never reach to the market. Poor pricing and unreliable cash flows are the reason for the frustration among the farmers.
Overview of the land and work force
Smallholder farmers in Tanzania are the dominant leaders in the sector. They support average farm sizes of between 0.9 hectares and 3.0 hectares and cultivate 5.1 million hectares annually, of which 85% is food crops.
Today, women labour force dominates over the male labour force. However as a result of poor technology and unreliable weather conditions, land is becoming the limiting factor. The Government has prioritized several tasks in a continued effort to strengthen the sector including the pursuit of macroeconomic policies in order to stimulate investment in agriculture by small holders and large-scale commercial farmers.
The creation of an enabling environment and the provision of proactive support to private operators, farmers organizations, NGOs and CBOs who supply inputs and credit to small farmers thus ensuring a strong regulatory mechanism; the concentration of budgetary allocations in agriculture research and extension; the provision of special support to investments in agricultural processing.
According to the country's national website, the agriculture sector has been largely influenced by past and current macro-economic reforms, which have helped to open up the sector to private investment in production and processing as well as input importation and distribution.
The potential for attaining sustainable irrigation development exists in the availability of the country's natural water resources via its network of rivers and lakes as well as the availability of1 million hectares of irrigable land at 1.0 million, only 150,000 of which are cultivated under irrigation.
Area of agricultural land
Agricultural land (% of land area)
Agricultural land (% of land area) in Tanzania was 40.08 as of 2009. Its highest value over the past 48 years was 40.08 in 2009, while its lowest value was 29.35 in 1961.
Agricultural land (sq. km)
The value for Agricultural land (sq. km) in Tanzania was 355,000 as of 2009.over the past 48 years this indicator reached a maximum value of 355,000 in 2009 and a minimum value of 260,000 in 1961.
Division of labour by gender
Women carry the major responsibility for both subsistence agriculture, especially food crop production, and domestic work. Time use studies consistently show that women spend more hours per day than men in both productive and reproductive activities. Traditionally, women are responsible for almost all livestock activities of dairy husbandry (feeding, milking, milkprocessing, marketing, etc.). in addition, a 1992 labour force survey in Zanzibar showed that women comprise 74% of the labour force in agro-enterprises. In Zanzibar, women also predominate in on-shore fisheries, while men perform almost all the work in off-shore fisheries except for some cleaning and processing.
IRRIGATION
Water Resources Available:
Tanzania has sufficient water resources to meet most of its present needs and they include surface and underground sources. About 7 percent of the land surface is covered by 3 lakes (all of them fresh water) which border the country apart from other inland lakes. The three lakes include Lake Victoria (second largest fresh water lake in the world), Lake Tanganyika (second deepest lake in the world) and Lake Nyasa. Inland Lakes include Rukwa, Eyasi and Manyara. There are also big rivers flowing to the lakes. Underground water is also another important source of water for both urban and rural settlement areas.
There is a great variation of water availability between different parts of the country. The variation is explained by differences in topography, rainfall pattern and climate. About one third of Tanzania receives less than 800mm of rainfall per annum and they are considered as arid or semi-arid. Also Tanzania experiences a long dry season normally extending from June to October which has an effect of low river flows and drying of water reserves.
Agricultural Development
Agriculture is the foundation of the Tanzanian economy. It accounts for about half of the national income, three quarters of merchandise exports and is source of food and provides employment opportunities to about 80 percent of Tanzanians. It has linkages with the non-farm sector through forward linkages to agro-processing, consumption and export; provides raw materials to industries and a market for manufactured goods.
Agriculture in Tanzania is dominated by smallholder farmers (peasants) cultivating an average farm sizes of between 0.9 hecters and 3.0 hecters each. About 70 per cent of Tanzania's crop area is cultivated by hand hoe, 20 percent by ox plough and 10 percent by tractor. It is rain fed agriculture. Food crop production dominates the agriculture economy. Women constitute the main part of agricultural labour force. The major constraint facing the agriculture sector is the falling labour and land productivity due to application of poor technology, dependence on unreliable and irregular weather conditions. Both crops and livestock are adversely affected by periodical droughts.
Irrigation holds the key to stabilizing agricultural production in Tanzania to improve food security, increase farmers' productivity and incomes, and also to produce higher valued crops such as vegetables and even flowers.
Urban Agriculture:
Urban agriculture has flourished as a household - level initiative to cope with economic hardships encountered as a result of raising cost of living. Urban agriculture that consists of raising and growing of vegetable and food crops is found in Tanzanian towns and cities where the ready market for Agricultural products are found. Producers of vegetables, milk, broilers' meat and eggs sell to private households and to school, hotels, hospitals, bars, cafeterias and restaurants.
Agriculture Performance:
Agricultural GDP has grown at 3.3 percent per year since 1985, the main food crops at 3.5 percent and export crops at 5.4 percent per year. Considering that the overall GDP growth target for halving abject poverty by 2010 is in the range of 6-7 percent, this performance falls short of the needed growth.
The macro economic reforms have and continue to have had significant impact on the Agriculture sector. The economic reforms have lead to the opening up of the sector to private investment in production and processing, input importation and distribution and agricultural marketing. Most of production and processing and marketing functions have been assigned to the private sector. The Government has retained regulatory and public Support functions or facilitation role.
Farmers are free to sell their crops to cooperatives or private traders. Due to competition, normal producer prices for food & export crops have increased as such farmers can now sell their produce much faster. Farmers are no longer confined to a single source for their essential inputs for crops and livestock.
The Government recognizes the pivotal role of the agricultural sector both in terms of economic growth and poverty reduction. Also the strong influence of factors outside the sector such as infrastructure, rural financial services, land ownership and good governance is recognised.
Priority actions include:
The pursuit of macroeconomic policies that will motivate investment in agriculture by small holders and large scale commercial farmers
Creation of an enabling environment and provide proactive support to private operators, farmers organizations, NGOs and CBOs supplying inputs and credit to small farmers and ensuring a strong regulatory mechanism
Concentration of budgetary allocations in agriculture research and extension
Provision of special support to investments in agricultural processing particularly in fruits and vegetables and accord top priority to implementation of new land Act
Potentials in the Agricultural Sector:
Tanzania is well endowed with a variety of farming systems with climatic variations and agro-ecological conditions of which crops can be grown. The major staples include:
maize
sorghum
millet
rice
wheat
pulses (mainly beans)
cassava
potatoes
bananas and plantains
12. Support Services and Information:
Research:
i) Research remains a core function of the government.
The Government encourages more private sector involvement independently or jointly in research planning and funding.
In order to increase investments in research on a sustainable basis the government encourages the active participation by commodity/crop agencies in research funding and planning; from cooperative societies, unions and commodity boards.
Appropriate mechanisms will be established to collect and administer such funds.
Private sector will be encouraged to participate in funding research and where necessary to own and manage research in particular enterprises.
Government funding will be directed mainly to food crop, livestock, resource management and engineering research.
The government will encourage the private sector as well as the Non-Governmental Organizations (NGOs) where feasible, to participate in research particularly in the areas of testing of drugs, development of special technologies and seed processing.
ii) Training:
Agricultural training will not remain a monopoly of the government but private sector will be encouraged to carry out specialized training.
iii) Extension Service:
Extension services delivery will not be a monopoly of the government. Private sector participation for collaborative efforts will be promoted and where necessary private sector will be allowed to own and manage extension services for specific enterprises such as beef, dairy, poultry, small ruminants, horticulture, tobacco and other subsectors which call for special attention. In areas where private sector offer extension services by providing funding, planning, monitoring and evaluation, the government will play a coordinating role.
iv) Seeds:
Private sector is allowed to produce, distribute and market seeds. Production of breeder seed is done at research institutes, foundation seed production on five foundation seed farms now under the Department of Research and Development, and certified production by contract growers vested in Arusha, Morogoro, Iringa regions. Tanzania Seed Company (TANSEED) is involved in both foundation seed farms and certified seed production. The Tanzania Official Seed Certification Agency (TOSCA) is responsible for quality control from the foundation seed farm stage up to the sale of certified seed to the farmers. The Main Seeds produced are hybrid and composite maize, sorghum, beans, wheat and sunflower.
Land
Tanzania has a surface area of 94.3 million ha. of which 22 million ha. (23%) is allocated to reserves (largest share of land resources allocated by any country in Sub -Saharan Africa), which includes National Parks (4.2 million ha.), Game Reserves (7.7 million ha.), and Forest Reserves (10.1 million ha.). The gross area cultivated/planted annually is about 5.1 million ha., which is only about 5 per cent of surface area of Tanzania. The other arable land, but not cultivated, is 10 million ha. much of it is used as pasture.
Industrial overview of manufacturing units of Tanzania:
In the end of the 20th century, manufacturing activities in Tanzania have exemplified a steady growth, registering average annual growth of over 4 percent. Nevertheless, manufacturing activities in Tanzania, are relatively small and at an infancy stage. Its contribution to GDP has averaged 8% over the last decade, with most activities concentrated on manufacture of simple consumer goods - food, beverages, tobacco, textiles and furniture and wood allied products. Most of the present industries were established in the light of import substitution strategy, whereas production focused in substituting previously imported goods in view of saving the country's meagre foreign exchange.
The government decision to liberalise trade and investment policies, effected since 1986, witnessed a number of firms even those believed to be as strong, clumping down as they could hardly withstand competition from imported manufactures. A number of measures were taken in view of revamping competitiveness of the local industries and enhancing their penetration into export markets.
The government starting in the early 1990s launched a deliberate programme to restructure and privatise publicly owned enterprises. Out of this programme some sheds of hope are now emerging. The overall utilisation of installed industrial capacities is improving, rising from an average of 20% in 1990 to around 50% at the turn of the 21st Century. Some of the recently privatised industries have undergone intensive rehabilitations - improving their capital structure, production technologies and management and marketing system as well as retrenched workers to match with production levels and improved quality and lower costs of production.
The manufacturing sector is of significant importance in the Tanzania's economy. Up to 1999, the sector employed about 140,000 people or about 48% of total monthly wage earners, making it the largest urban employer. It remains to be the most reliable source of government revenue in terms of import sales, corporate and income taxes. It accounts for over half of government annual revenue collection. Though manufacturing export has been in a declining trend, yet it earns the country a fifth of total foreign exchange earnings to become a third important sector coming after agriculture and tourism. Moreover, it is the industrial sector that provides reliable field to practice invention, innovation and nurturing modern technologies for production and service provision.
Manufacturing Industrial Firms in Tanzania:
Food, Beverage and Tobacco
Dairy products, canning and persevering of fruits and vegetables, canning fish and similar foods, manufacture of animal and vegetable oils, grain milling baking, sugar and confectionery as well as prepared animal feeds.
Textiles, Clothing, Leather and Footwear
Spinning, weaving, finishing of textiles; the manufacture of made-up textile goods; knitting, manufacture of carpets, rugs, cordage, rope and twines.
Wood and Wooden Products, excluding Furniture Activities
Sawmills, planning and other wood mills manufacturing goods.
Paper and Paper Products
Pulp, paper, paperboard, fibreboards, light packaging, heavy packaging, stationery and other paper products.
Chemicals, Petroleum, Rubber and Plastics
Basic industrial chemicals, fertilizers, pesticides, plastic materials and products, medicinal and pharmaceuticals, soap, detergents, perfumes and other cosmetics, paints and other chemical products.
Non-metallic Mineral Products
Pottery, china and earthenware, glass and glassware products, bricks, tiles, cement, concrete, gypsum and plaster products.
Basic Metal Products
Slabs, bars, sheets, plates, strips, tubes, pipes and rods
Fabricated Metals, Machinery and Equipment
Cutlery, hand tools and general hardware, furniture and fixtures, doors, metal staircases and window frames.
IMPORT-EXPORT OF TANZANIA:
Exports - partners
China 15.6%, India 11%, Japan 6.1%, UAE 5%, Germany 4% (2009)
Imports - partners
China 17.3%, India 15.4%, South Africa 7.9%, Kenya 7%, UAE 4.8%, Japan 4.2% (2009)
FINANCIAL COMPONENTS
2011
2010
Current Account Balance
(-$1.978) billion
(-$2.071) billion
Debt-External
$9.114 billion
$8.259 billion
Export
$5.659 billion
$4.297 billion
Import
$8.65 billion
$7.125 billion
Exchange Rate
1$ =1,571.1TZS
1$ = 1,409.3 TZS
The World Trade Organization's (WTO) estimates revealed that Tanzania's trade, exports and imports represented 61.4% of the GDP during 2006-2008. In 2008, Tanzania's merchandise exports amounted to more than $3 billion, while merchandise imports amounted to over $7 billion. In 2008, commercial service exports amounted to over $1.9 billion, while commercial service imports stood at over $1.6 billion. Tanzania's exports to the European Union (EU) dropped by €56.47 million in 2008 due to falling demand for commodities in the EU member nations. In 2007, total exports to the EU were worth €382.76 million, but dropped to €326.29 million in 2008. On the other hand, imports from the EU increased by €74 million in 2008 to widen the trade gap between Tanzania and the EU by €478.246 million, up from a deficit of €347.769 million in 2007.
Tanzania, a member of the East African Community (EAC), mainly exports agricultural products to Europe. Tanzania's major imports include machinery and technical equipment from Europe. The signing of Economic Partnership Agreements (EPA) would enable Tanzania and rest of the EAC to export more to the EU markets by addressing the regions' supply constraints.
Tanzania Trade: Exports
Tanzania's primary export commodities include gold, coffee, cashew nuts, manufactured products and cotton. The country's exports in 2009 were worth $2.744 billion, up from $2.413 billion in 2008. The following chart shows Tanzania's distribution of its export partners. All data are in percentages.
Tanzania Trade: Imports
Tanzania's primary import commodities include consumer goods, machinery and transportation equipment, industrial raw materials, and crude oil. The country's imports were worth $5.545 billion in 2009, down from $7.08 billion in 2008. The following chart shows Tanzania's distribution of its import partners. All data are in percentages.
Tanzania imports were worth 879 Million USD in June of 2012. Historically, from 2006 until 2012, Tanzania Imports averaged 689.1 Million USD reaching an all time high of 1323.0 Million USD in August of 2011 and a record low of 331.0 Million USD in March of 2006. Tanzania imports mostly transport equipment, machinery, constructions materials, oil, fertilizers, industrial raw materials and consumer goods. Main imports partners are: China, India, South Africa, Kenya and United Arab Emirates. This page includes a chart with historical data for Tanzania Imports.
MINERALS
Mineral Resources Endowments
Tanzania has a great potential particularly for gold, base metals, diamonds, ferrous minerals and a wide variety of gemstones, some of, which are unique such as tanzanite's. Coal, uranium, and various industrial minerals such as soda, kaolin, tin, gypsum, phosphate and dimension stones are available at attractive economic rates. The following are minerals that have attracted most interest in the recent years:
Gold found in greenstone belts located in the east and southern of Lake Victoria, and rock formation in southern and south-western of the country;
Base metals found in a belt running from Kagera through Kigoma to Mbeya, Ruvuma and Mtwara regions, and,
Gemstones, which are found in eastern and western belts running from Kenya border in the northern part to Mozambique in the south and Mbeya and Rukwa regions.
Gold and diamonds has always been the mainstay of the country's mineral production. Brief explanation is provided below for easy reference.
Diamonds:
Tanzania has been a significant diamond producer for several decades, with the bulk of production coming from the Williamson Diamonds Mine at Mwadui where commercial production began in 1925. Over 300 kimberlites are known in Tanzania of which, 20% are diamondiferous. Some 600 dipolar magnetic anomalies with similar geophysical characteristics to known kimberlite pipes have been recorded during recent geophysical surveys. Also of relevance are the psuedo-kimberlites or para-kimberlites along the young craters where diamonds have been discovered.
Alluvial diamonds have been recorded but a large deposit of economic exploitation has not yet been found. Locating shallow buried superficial deposits using airborne infrared surveys may prove useful.
Gold:
Gold offers one of the best areas for investment. The current perceived opportunities range from former mines in the Archaean Greenstone belts around Lake Victoria, Proterozoic rocks and conceptual grass root plays in Karoo and younger rocks.
Gold exploration has grown rapidly during the 1990's using modern technology and refined models. Investigation has mainly been focused on the greenstone belts around Lake Victoria with particular attention on the shear hosted gold mineralization associated with banded iron formations (BIF), tufts and volcano-sedimentary exhalative.
Several "world class" gold deposits have already been discovered in the Lake Victoria Goldfields and are at different stages of development. These deposits have reached various stages of development.
Gold targets have also been revealed in the Proterozoic rocks in the Southwest of Tanzania. In this case, gold is associated with BIF, and in gneisses and granites in shear zones.
OTHERMINERALS
MINERALS
PARTICULARS
Base Metals and Platinum Group Minerals (PGM)
Both the Archaean and the Protozoic rocks are prospective for base metals and PGM. Sutton Resources is evaluating the resources where diamond drilling has outlined contained resources of 500,000 t nickel, 75,000 t copper and 45,000 t cobalt, so far.
Ferrous Metals
Numerous iron ore bodies have been identified in the Proterozoic rocks. Shallow drilling established a resource of 45 million tons grading 52 percent Fe. The Titanium resources are also known in beach sands along the coast.
Tin-Tungsten
Tin and Tungsten have been produced from both lode, alluvial and eluvial deposits from the KaragweTinfields in the extreme Northwest of Tanzania. Mineralization is associated with the Late Proterozoic Karagwe-Ankolean System.
Gemstones
Tanzania is endowed with various species of colored gemstones including the beautiful Tanzanite (blue zoisite) occurring in the Proterozoic metamorphic rocks of the Usagaran and Ubendian Systems. Tanzanite is mined at Mererani from weathered rock. Other gemstones mined in the country include ruby, rhodolite, sapphire, emerald, amethyst, chrysoprase, peridot and tormaline.
Carbonates
Well over 20 carbonates associated with Mesozoic-Cainozoic volcanics have been identified in the country which could prove to be useful source of rare earth elements, niobium and phosphates.
Coal
Coal resources similar in quality to the Gondwana coals of southern Africa occur in the Ruhuhu and Songwe-Kiwira basins in the Southwest Tanzania. A total of about 1 .5 billion tones in reserves have so far been identified.
Industrial Minerals
Limestone and dolomite-good resources of high purity occur in the white marble deposit of the Morogoro Region. Varieties of clays - bentonite, kaolin and fullers earth. Graphite occurs in high-grade gneisses mainly ion the Usagaran system. northern Tanzania, for a 40 year operation at a mining rate of 15,000 tons per year of high grade flake graphite of 97-98% purity. Phosphate deposits have been exploited at Minjingu in Arusha Region at around 48,000 tons per year in order to support fertilizer manufacturing.
Service industry
EDUCATION
The United Republic of Tanzania realizes that quality education is the pillar of national development, for it is through education that the nation obtains skilled manpower to serve in various sector in the nation's economy. It is through quality education Tanzania will be able to create a strong and competitive economy which can effectively cope with the challenges of development and which can also easily and confidently adapt to the changing market and technological conditions in the region and global economy.
The structure of the Formal Education and Training System in Tanzania constitutes 2 years of pre-primary education, 7 years of primary education, 4 years of Junior Secondary (ordinary Level), 2 years of Senior Secondary (Advanced Level) and up to 3 or more years of Tertiary Education. Specifically, the education system has three levels, namely: Basic, Secondary and Tertiary Levels.
Basic or first level education includes pre-primary, primary and non-formal adult education. Secondary or second level education has Ordinary and Advanced level of secondary schooling while Tertiary or third level includes programmes and courses offered by non-higher and higher education institutions
Two ministries manage and co-ordinate the Education Sector, namely Ministry of Education and Culture and Higher Education. However, the Ministry of Regional Administration and Local Government also manages Basic Education. At Tertiary level, planning and service delivery are vested with the institutions themselves through their Governing Councils. Nevertheless, co-ordination and quality control is the responsibility of the Higher Education Accreditation Council (HEAC). At primary and secondary levels quality assurance remains to be the responsibility of School heads, Ward Education Office and School Inspector.
Medium of Instruction
The main feature of Tanzania's education system is the bilingual policy, which requires children to learn both Kiswahili and English. English is essential, as it is the language which links Tanzania and the rest of the world through technology, commerce and also administration. The learning of the Kiswahili enables Tanzania's students to keep in touch with their cultural values and heritage. English is taught as compulsory subject in the primary education whereas at post primary education is the medium of instruction. With regard the Kiswahili, it is the medium of instruction at primary education while at tertiary education is taught as compulsory subject at secondary education and as option at tertiary education.
Role of the Public and Private Sector
The government role is now changing from that of a key player to that of a facilitator in the provision of education. This new role of the government provides a more conducive environment for the private sector to increase its investment in education. Private investment in education will establish a more learning environment that will allow imparting both knowledge and technology to the youth for a more active participation in the agricultural sector and the economy as a whole.
As any other sector of the social development, education sector has been affected by poor resource allocation to the sector, being public or private. The situation has been observed by donor community and acted friendly to support the sector. Donor community in terms of funds, technical assistance and carrying out researches has supported various programmes and projects.
TRANSPORT
The Tanzania transport sector plays a crucial role in the growth of the Tanzanian economy; it facilitates domestic and international trade, contributes to national integration, and provides access to jobs, health, education and other essential facilities.
The effectiveness, appropriateness and adequacy of the Tanzania transport system all contribute a great deal to the successful implementation of socioeconomic activities, the lowering of domestic production costs through timely delivery, the enhancement of the economies of scale in the production process and the creation of economic opportunities.
The economic opportunities in Tanzania include the ease of market access, the strengthening of competition, the promotion of trade and export, the contribution of tourism and foreign investment to government revenue and the generation of a large number of employment opportunities.
In the past five years, the transport sector in Tanzania has helped to integrate market- strengthening competition, increased access to farming techniques, promoted trade, tourism, and foreign investment, and has also contributed to the government revenue.
The growth and performance of the Tanzania transport sector have continued to improve both because of government efforts and because of private sector investment in road rehabilitation, the expansion of telecommunications services, the modernization of port services, and the improvement in marine, railway and air transport services.
Transport sector has an effective role in contributing to social and economic development of Tanzania. The sector performance has continued to grow due to both government efforts and private sector investment in road rehabilitation, expansion of telecommunications services, modernization of port services, and improvement in marine, railway and air transport services.
Railway transport
Two railway systems operate in Tanzania. The Tanzania Railway Corporation (TRC) has two lines; the central line that runs from Dar es Salaam to Tabora with two branches; one to Kigoma in the west along lake Tanganyika, hence providing freight cargo transportation to the west of the country as well as the land-locked countries of Burundi, Rwanda and eastern part of Peoples Democratic Republic of Congo. The second branch runs from Tabora to Mwanza port on Lake Victoria, also providing transportation services to north and north-western part of the country including landlocked Uganda. The other line runs from Ruvu northward to Korogwe and then branches to Tanga port on the Indian ocean, another branch north-west to Moshi and connecting to Kenya railway system.
The second railway system is the Tanzania - Zambia Railway Authority (TAZARA). This is a two country joint railway system. TAZARA links the port of Dar es Salaam with Zambia and handling freight cargo for the countries of Malawi, Zambia, Zimbabwe and Democratic Republic of Congo.
Both the Tanzania Railway Corporation (TRC) and Tanzania-Zambia Railway (TAZARA) are up for privatization.
Marine transport
The Tanzania Harbours Authority (THA) operates ports of Dar es Salaam, Tanga, Mtwara, and minor ports of Kilwa, Lindi and Mafia on the Indian ocean. Dar es Salaam is the main port with capacity of dry break bulk cargo of 3.1 million tonnes of containerized cargo and 6.0 million tonnes of bulk liquid.
There is also lake transport managed by the Marine Division of the Tanzania Railway Corporation (TRC). There are freight cargo and passenger transport services on lake Victoria (linking Tanzania, Kenya, Uganda), lake Tanganyika (linking Tanzania, Burundi, Democratic Republic of Congo and Zambia), and on lake Nyasa (linking Tanzania, Malawi and Mozambique).
Air transport
Tanzania has three international airports in Dar es Salaam, Kilimanjaro and Zanzibar. In addition there are aerodromes and airstrips spread all over the country.
The national airline, Air Tanzania Corporation (ATC) is the major provider of domestic air travel linking all major towns in the country. Private companies have also started operating, and several charter service. ATC has also services to neighbouring countries and the Middle East. There are international airlines operating flights in and out of Tanzania with daily flights to Europe, India, the Middle East and Southern Africa.
Road transport
The geography of Tanzania, its size, diversity and dispersion give roads a special position in integration of the national economy'. In particular roads serve rural areas (where the majority of the people live) more effectively than any other mode of transport.
National networks (under the Ministry of Works) face lack of sufficient fund for rehabilitation and upgrading due to increased traffic (e.g. the proposed Urgent Roads Rehabilitation Programme - URRP) and for routine maintenance, low capacity' of the local construction industry and low participation of the private sector.
However, the Government has rationalised and streamlined the institutional framework for management of the road sector so as to enhance efficiency, effectiveness and accountability. An autonomous executive agency, the Tanzania Roads Agency (TANROADS), responsible for the management of trunk road construction, rehabilitation and maintenance has been established. A National Road Board guides its activities with representation from the private sector/road users and the Government. The Government has also established a Road Fund whose funding is ring-fenced field user charge as the main source of finance for road maintenance. The local authorities under the Ministry of Regional Administration and Local Government are responsible for the district, urban and feeder roads (the local roads network) for opening up existing and potential rural productive areas for agriculture, small-scale mining and rural tourism.
HEALTH
Health Services System (Structure):
The health system and especially the Governments referral system assumes a pyramidal pattern of a referral system recommended by health planners, that is from dispensary to Consultant Hospital (Better Health In Africa, 1993).
The structure of health services at various levels in the country is as follows:
Village Health Service:
This is the lowest level of health care delivery in the country. They essentially provide preventive services which can be offered in homes. Usually each village Health post have two village health workers chosen by the village government amongst the villagers and be given a short training before they start providing services.
Dispensary Services:
This is the second stage of health services. The dispensary cater for between 6,000 to 10,000 people and supervise all the village health posts in its ward.
Health Centre Services:
A health Centre is expected to cater for 50,000 people which is approximately the pop. of one administrative division.
District Hospitals:
The district is a very important level in the provision of health services in the country each district is supposed to have a district hospital. For those districts which donate have Government normally negotiates with religious organizations to designate voluntary hospitals get subventions from the Government to contract terms.
Regional Hospitals:
Every region is supposed to have a hospital. Regional Hospital offer similar services like those agreed at district level, however regional hospitals have specialists in various fields and offer additional services which are not provided at district hospitals.
Referral/Consultant Hospitals:
This is the highest level of hospital services in the country presently there are four referral hospitals namely, the Muhimbili National Hospital which cater the eastern zone; Kilimanjaro Christian Medical Centre (KCMC) which cater for the northern zone, Bugando Hospital which cater for the western zone; and Mbeya Hospital which serves the southern Highlands.
Treatment Abroad:
Other diseases and cases require special treatment whose facilities and equipment are not available in the country. Depending on the foreign exchange position, some patients have to be sent for treatment abroad.
Public Education:
Public Health Education mainly is concerned with identifying prevailing health problems and disseminating to the public methods of preventing and controlling them. This is an integral part of community involvement in Primary Health Care (PHC). It is assumed that, the health of an individual, the family and community at large is dependent upon factors as environment, social cultural traditions and life styles, hence public health education focuses to strengthen and address issues related to agricultural development, child up-bringing, environmental sanitation and development in general. For instance school children are special target group for health education through the school health programme. Public health education is provided by a variety of methods including mass media, continuous development and dissemination of health education materials and through dialogue with communities.
Health Professional Training:
There are several medical training schools for various medical cadres. The aim of the government is to train adequate, - qualified and motivated medical personnel at all levels of the health care system.
COMMUNICATION
Telecommunication facilities in Tanzania are available in most parts of the country and are linked to the rest of the world through Dar es Salaam, the country's commercial capital.
Until 1993, the Tanzania Posts and Telecommunications Corporation (TPTC) not only regulated this sector, but also held a monopoly in the provision of communications in Tanzania.
When the Communications Act was enacted as part of the government's move to liberalize the communication sector in the country, the Tanzania Posts and Telecommunications Corporation was split into three different entities namely the Tanzania Posts Corporation (TPC), the Tanzania Telecommunications Company Limited (TTCL) and the Tanzania Communication Commission (TCC).
Furthermore, in 1997 the National Telecommunications Policy (NTP) was launched.
Since then, the telecommunications sector has become partially liberalized and competition has grown in mobile cellular services, radio paging, and internet services and data communications services.
Today, the Information and Communication Technologies (ICTs) sector in Tanzania has been completely liberalized.
Within such a framework, the Tanzania Telecommunications Company Limited (TTCL) was privatized in 2001.
Since then, the communications sector in the country has played an important role in the social and economic development of Tanzania and it is expected to continue to do so in the future
Communications sector has an effective role in contributing to social and economic development of Tanzania. The sector performance has continued to grow due to both government efforts and private sector investment in road rehabilitation, expansion of telecommunications services, modernization of port services, and improvement in marine, railway and air transport services.
Telecommunications Services
Telecommunication facilities are available in most parts of the country and are linked to the world through Dar es Salaam. Telecommunications services have continued improving due to efforts of the Tanzania Telecommunications Company (TTCL) and participation of private companies, including ZAIN, TIGO, VODACOM and Zantel. Other forms of telecommunications which have also been installed and developed particularly FAX communication which is more in demand than Telex Services.
BANKING
Tanzania embarked on financial liberalization in 1992 in order to sustain its economic growth.
This has been done by mobilizing financial resources, increasing competition in the financial market and enhancing quality and efficiency in credit allocation.
As a result, the sector has been booming, particularly during the last few years.
Since embarking on financial liberalization, the total assets have increased by 60%, from $1.7 billion at the end of 1999 to $2.7 billion at the end of June 2004.
With a total of 27 registered banks and the few non-banking financial institutions, which are not allowed to open current accounts, the market is characterized by a few big players and several small banks.
The securities market in Tanzania also emerged in the 1990s as a result of the government policy of liberalizing the financial sector, which included a study on monetary issues.
Within such framework, the Capital Markets and Securities Authority (CMSA) was established in 1994 under the Capital Markets and Securities Act.
Following the establishment of the CMSA, the Dar es Salaam Stock Exchange (DSE) was incorporated into the Tanzania banking and finance sector.
Currently, the Dar es Salaam Stock Exchange is the only formal trading place for securities in Tanzania, where nine companies are listed.
TOURISM SECTOR
In spite of the unique beauty that is Tanzania has to offer, the tourism sector within the country remains relatively untapped.
Roughly 600,000 visitors per annum enter the country, compared with neighboring Kenya, which receives over a million visitors.
Tanzania is situated on the East African peninsula and boasts sites such as the world renowned Mt. Kilimanjaro, which is the highest point in Africa, as well as three of the largest lakes on the continent.
Formed in 1964 by the union of the republics of Tanganyika and Zanzibar, Tanzania also has a stunning coastline and an abundance of wildlife.
Tanzania has more land that has been devoted to national parks and game reserves than any other wildlife destination in the world.
In addition, the country boasts an extremely rich wildlife as well as game viewing that has widely been regarded as the best in Africa.
Combined, these natural resources within the country help to make Tanzania the true home of the safari, which is the Swahili word for journey.
In the past, despite Tanzania's record of political stability, the unattractive investment climate discouraged foreign investment.
However, this is no longer the case and Tanzania is now an extremely viable and appealing market for investment because of the combination of the Government's determination to create an environment that is conducive to private investment along with Tanzania's natural beauty and the potential of its tourism sector.
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