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)

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Tanzania: Regional profiles of cashew nut production and processing investment opportunities

Tanzania: Regional profiles of cashew nut production and processing investment opportunities

Cashew nuts are grown in the Southern parts of Tanzania, on the opposite side of the border of the cashew-growing region of Mozambique. Cashew nuts originate from Brazil; Portuguese traders brought the seeds to Africa in the 16th century. The trees soon found their way to Mtwara region; an Indian Ocean port on trade routes once plied by David Livingstone. Tanzania is now the World’s 3rd largest producer of cashews and maybe the world’s...

Author Tanzania Investment Center
Organisation USAID
Publish Date 06 May 2019
View details D Size: 1 MB
Brochure - AGOA performance and country profile of Tanzania

Brochure - AGOA performance and country profile of Tanzania

An overview of Tanzania's participation and utilisation of AGOA preferences since 2000, including relevant trade data and sector-focus.  Double-sided A4 brochure. For printing purposes, set 'fit to page' on your printer.

Author Eckart Naumann
Organisation Trade Law Centre (tralac)
Publish Date 21 December 2018
View details D Size: 5 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
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

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Tanzanian home textiles firms gain insights on US market

Tanzanian home textiles firms gain insights on US market

Tanzanian textile companies received a boost to their efforts to export products to the U.S. after attending a half-day workshop hosted by the USAID Hub. Fifteen Tanzanian design enterprises learned about U.S. market opportunities on January 15 in Dar es Salaam from Margaret Bishop, an expert in textile and apparel production and quality management. Ms. Bishop provided the...

24 January, 2019
Hello, America! USAID, direct flights to increase AGOA exports to US

Hello, America! USAID, direct flights to increase AGOA exports to US

The US Agency for International Development (USAID) Hub will from November 2018 to March 2019 provide direct support in the audit and Worldwide Responsible Accredited Production (WRAP) certification process. Already, USAID is helping companies in the East African region become more export competitive. WRAP is a minimum standard for social compliance where US textile and...

19 October, 2018
Opinion: Banning second-hand imports doesn't solve East Africa's clothes problem

Opinion: Banning second-hand imports doesn't solve East Africa's clothes problem

Banning the import of second-hand clothes is not the answer to reviving East Africa's textile industry. But the deal to phase out the imports also hands another political score to the US, writes DW's Isaac Mugabi. The move to not ban the sale of second-hand clothing was a relief to petty traders. In 2015, Kenya, Rwanda, Uganda, and Tanzania agreed on a three-year plan...

05 March, 2018
'US threats force EAC to back down on secondhand clothes ban' - Article

'US threats force EAC to back down on secondhand clothes ban' - Article

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24 February, 2018
EAC heads of state to meet over health, infrastructure and AGOA

EAC heads of state to meet over health, infrastructure and AGOA

East African Community Heads of State are expected to convene in Uganda’s capital Kampala next week to discuss a number of regional matters, including infrastructure and health sector growth. Olivier Nduhungirehe, the State Minister in the Ministry of Foreign Affairs, Cooperation and East African Community, confirmed to The New Times on the agenda includes a two-day...

19 February, 2018
Three African nations may face AGOA sanctions if Mitumba banned

Three African nations may face AGOA sanctions if Mitumba banned

Rwanda, Tanzania and Uganda will face US trade penalties, including losing eligibility for duty-free clothing exports to the US market under the African Growth and Opportunity Act (AGOA), if they decide to stop import of used clothes from the United States, according to the US State Department. The three countries have time till next week to take the...

19 February, 2018