TANZANIA ECONOMIC REPORT

United Republic of Tanzania has main capital in Dodoma, which is the middle state in Tanzania. The currency used in Tanzania is called Tanzanian shillings, and the main language is Kiswahili, and English. The population of Tanzania is 37,849,133 within 945,087 km² which can be approximated as the size of Texas State in US. The GDP per capita is 723 in terms of PPP of US$, and a labor force of 24.06 million ranking it 27th highest labor force in the world.

The economy in Tanzania depends highly on agriculture which in other words they call it “kilimo uti wa mgongo” the Swahili phrase for “Agriculture is the backbone of the economy”. In Tanzania agriculture counts more than 25% of the GPD, provides 85% of exports, and employs 80% of the work force. The government has also increased its spending to 7% of its budget to agriculture. Despite the fact that Tanzania is located just south below the equatorial 0⁰ latitude below Kenya where the heat of the sun is to the extreme, but the best arable land around the Kilimanjaro mountain is best for coffee and sisal. The topography and climate condition however, limit cultivated crops to only 4% of the plantation areas.

It is obvious that Tanzanian major exports will be based on agriculture which is tobacco, coffee, cotton, cashewnuts, tea, and cloves. Other exports include gold, diamond, Tanzanite, (the only mineral mined in Tanzania and not found anywhere else in the world), and manufacture goods. In 2011 there was a total of $7 billion external income on export. Tanzanian main export partners are China 14.2%,  India 9.1%, Japan 7.7%, United Arab Emirates 5.7%, Netherlands 5.5%, Germany 5.1%, and Pakistan 3.1% data from 2011. In this partnership one would see an influence on payment due to technological degrade in Tanzania, most of these partner countries have a huge influence in Tanzanian industries, which deprive the amount of money earned within the exporting sector.

Tanzania is one of the fastest growing economies in Africa such that GDP growth in 2009 to 2011 was a suitable 6% per year due to high gold prices and increased production. It is a promising economy among other African countries, and being ranked number 43 in the world fact book. The industry sector is counting 22.6% of the country GDP.  The industry has mainly establish itself on agricultural processing such as sugar, beer, cigarettes, sisal twine; mining diamonds, gold, and iron, salt, soda ash; cement, oil refining, shoes, apparel, wood products, fertilizer. The industrial growth rate in 2012 is 7%

The exchange rate in Tanzania is 1571.1 T-shilling to a dollar from 2011. During 2011 also Tanzania experienced a shock on the supply side from higher global price of fuel and regional draught. GDP growth of the first half 2011/2012 was unchanged from 2010/2011 of 6.5%.

Thus, Tanzania as any other blessed country with tremendous natural resources could have been doing better in its GDP, if there were no double standards. “We both knew that the U.S. Treasury and state departments, in collaboration with the World Bank and the International Monetary Fund purport to help Third World countries pull out of recession however, they actually accomplish the reverse.” One might wonder how is that even possible, if countries in Africa, East Asia, and South America receiving all those aid, and funds from these big UN organizations which meant to revive them from poverty; instead  those massive loans invested into heavily capitalized infrastructure projects, combined with privatization, do alleviate poverty. But, while those loans and projects appeared good on paper, showing that these countries receiving them enjoyed economic growth, the part that was not disclosed was that paying off the interest meant diverting funds from education, health care, and other social services. Sad news is the heavy debts drove more and more people of these third world countries into poverty and widening the gap between rich and poor.

Great news is the government has woke up to educate its citizens especially women and orphans who most of the time live in high dependency due to illiteracy. The literacy percentage has been curving up since 2002 and even government has been accepting donations, sponsors or scholarship for the best performing students to go study abroad. As of 2012, Tanzania has a great percentage of students studying in India medicine, Malaysia and in UK.

Countries with high population growth rate tend to be poor. It is a great relieve to find out that Tanzania has been working hard to the declining of its population growth rate since 2000 and it is only working out to help reduce the economic burden through decline in birth rate from 40.17% in 2000 to 31.81% in 2012. Tanzania average annual percent change in the population, resulting from a surplus (or deficit) of births over deaths and the balance of migrants entering and leaving a country  has been mainly affected by the neighbor countries such as Congo, Rwanda and Burundi immigrants who seek refuge.

Therefore, I would like to conclude by saying that Tanzania has higher chances and I am very positive it will be among the highly developed countries 50 years to come. This country is on the escalator of developing, and is doing this through decreasing it’s population growth rate such that since  year 2000 which was 2.56% to 2% in 2011 and  now being 1.96% in 2012. It is also improving in terms of the Real GDP growth rate from 5.2% year 2000 to 6.7% in 2012. The government has emphasized education and we can see improvement in the literacy level. The biggest obstacle in Tanzania is luck of energy and the government has decided to invest on coal and gas which have been found with in the country to ensure availability of electricity and help improve the country in the sector of the industrialization. Tanzania also has much to be proud of due to its great geographical location which attracts a lot of tourists to the Kilimanjaro mountain, the safaris like to Serengeti creator, we have the lake Victoria, Tanganyika and Nyasa, but most importantly we are the country of that has the Zanzibar Island which is just opposite to Madagascar. The Minister of Tourism has stepped higher standard to all these natural resources and making sure all the revenue to the tourism goes straight to the government and not being used illegally by local leaders through corruptions or other means.

TANZANIA REPORT

POPULATION SIZE	37,849,133	within 945,087 km2
GDP	$ 723	measured in terms of purchasing power parity during 2011
GDP per capita size	$1500	“  “
Population growth rate per year	Year 2012=1.96%	Year 2011=2%	Year 2000=2.56%
Real GDP growth rate	2011= 6.7%	2010= 6.5%	2000= 5.2%
Rate of investment of  GDP	2011 = 26.1%	2008=22.6%	2004=16.2%
Rate of saving (in percentage of GDP)	2012= 16.55%	2007 = 12.79%	2004 =16.16%
Government deficit (in percentage GDP)	2011/2012 = 34%
Government (Public) Debt Ratio	2011= 36.1%	2008=23.6%
Exports	2011=5.43%	2008=2.48%	1999=0.83%
Imports	2011= 8.65%	2008=6.26%	1999= 1.44%
Manufacturing / industrial	2010 = 7%	2008= 9.1%	1999= 8.4%
Rate of Inflation	2011= 12.7%	2008=10.3%	1999= 8.8%
Literacy rate	2003= 78.2%	2002=69.4	2003= 78.2%
GDP spent on education	2010=6.8%
Dependency ratio ( the young age 15-24 unemployed)	By 2005 =8.8% And never change
Age dependencies ration (the old)	2010 = 6.01% maximum	1960 = 4.58% minimum