TRALAC - Trade Law Centre

Country Info: Tanzania

Economic Background

Tanzania is one of the world's poorest economies in terms of per capita income, however, it has achieved high overall growth rates based on gold production and tourism. Tanzania has largely completed its transition to a liberalized market economy, though the government retains a presence in sectors such as telecommunications, banking, energy, and mining. The economy depends 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. The financial sector in Tanzania has expanded in recent years and foreign-owned banks account for about 48% of the banking industry's total assets.

Competition among foreign commercial banks has resulted in significant improvements in the efficiency and quality of financial services, though interest rates are still relatively high, reflecting high fraud risk. All land in Tanzania is owned by the government, which can lease land for up to 99 years. Proposed reforms to allow for land ownership, particularly foreign land ownership, remain unpopular.

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, and in December 2012 the Millennium Challenge Corporation selected Tanzania for a second Compact. Dar es Salaam used fiscal stimulus and loosened monetary policy to ease the impact of the global recession. GDP growth in 2009-12 was a respectable 6% per year due to high gold prices and increased production. (Source: World Factbook, 2013)

Downloads

Tanzania - National AGOA Strategy

Tanzania - National AGOA Strategy

This strategy has identified four sectors that can be developed rapidly for the purpose of increasing Tanzanian participation in AGOA market access opportunities. First, the garments and textiles sector where harvesting low-hanging fruits in the garments subsector can generate the resources for subsequent investment in the textiles segment of the value chain. Second, the agro-processing sector, which includes horticultural products, spices and...

Author Development Alternatives Incorporated, DAI
Organisation East African Trade and Investment Hub
Publish Date 10 May 2016
View details D Size: 1 MB
The phase-out of second-hand clothing imports: what impact for Tanzania?

The phase-out of second-hand clothing imports: what impact for Tanzania?

The East African Community has begun phasing-out imports of second-hand clothing to promote the development of the domestic garment sector. Using trade data and information obtained from the exporters, this study produces the first estimate of disaggregated imports of second-hand clothing in Tanzania. The net import of used clothing is estimated at over 540 million pieces per year, compared to a domestic production of new clothing of 20...

Author Linda Calabrese
Organisation Overseas Development Institute
Publish Date 23 October 2017
View details D Size: 1 MB

Related News

Lobbyist says US likely to punish East Africa over mitumba ban

Lobbyist says US likely to punish East Africa over mitumba ban

Donald Trump administration trade officials are likely to rule that three East African countries are violating eligibility terms for the US preferential trade programme for Africa, a lobbyist for Kenya warned on Friday. “The stars are aligned” for such a ruling before the end of the year, said Washington based attorney Paul Ryberg, an expert on the Africa Growth and...

26 August, 2017
US says Africa must allow import of used clothing

US says Africa must allow import of used clothing

The U.S. has advised  African countries against banning importation of used clothing, for them to continue benefiting from Africa Growth Opportunity Act (AGOA) Scheme which came into being May, 2000. AGOA is a U.S. Trade Act aimed at significantly enhancing market access to the U.S. for qualifying Sub-Saharan African countries. Acting Assistant U.S. Trade...

04 August, 2017
Trade experts fault US over AGOA review

Trade experts fault US over AGOA review

The US government has been faulted by trade and economic experts for the out-of-cycle review of the American Growth and Opportunities Act (AGOA) which could see Rwanda and East African countries barred from duty-free access to the US market. The review which began on July 13, is a response to a move by Rwanda and fellow East African Community countries to phase out and...

24 July, 2017
US exports of worn clothing to AGOA countries: a selection of DATA

US exports of worn clothing to AGOA countries: a selection of DATA

The decision by some countries, notably in East Africa, to consider a ban on the importation of worn clothing has elicited strong responses. A portion of imports of such worn clothing originates in the United States. This has led the Office of the United States Trade Representative (USTR), in consultation with the Trade Policy Staff Committee (TPSC), recently...

19 July, 2017
AGOA at risk in East African war over used clothes

AGOA at risk in East African war over used clothes

Among optimists, the proposal by East African Community (EAC) member states to ban the importation of used clothes by 2019 is great because it could spark the growth of a local textile industry in the bloc. But pessimists say the move will complicate the region’s trade arrangements with leading partners including the U.S. which is also a large exporter of used clothes to...

18 July, 2017
EAC officials oppose US bid to review AGOA trade deal over used-clothing ban

EAC officials oppose US bid to review AGOA trade deal over used-clothing ban

Senior officials from Rwanda, Tanzania and Uganda argued in Washington on Thursday that their collective phase-out of used clothing (mitumba) imports should not result in any loss of benefits from a US preferential trade programme. The representatives of the three East African Community (EAC) countries spoke in opposition to an effort by a US business association to...

14 July, 2017