Tanzania

Profile

The United Republic of Tanzania is a sovereign state in central East Africa bordered by Kenya and Uganda to the north, Rwanda, Burundi and the Democratic Republic of the Congo to the west, and Zambia, Malawi and Mozambique to the south. The country's eastern borders lie on the Indian Ocean.

The United Republic of Tanzania is a unitary republic composed of 26 mikoa (regions). Since 1996, the official capital of Tanzania has been Dodoma, where parliament and some government offices are located. Between independence and 1996 the major coastal city of Dar es Salaam had been the country's political capital. Today Dar es Salaam remains the principal commercial city of Tanzania and the de-facto seat of most government institutions. It is the major seaport for the country and its landlocked neighbours.

Tanzania is in the bottom ten percent of the world's economies in terms of per capita income. The economy depends heavily on agriculture, which accounts for more than 40% 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The World Bank, the IMF, and bilateral donors have provided funds to rehabilitate Tanzania's out-of-date economic infrastructure and to alleviate poverty. Long-term growth through 2005 featured a pickup in industrial production and a substantial increase in output of minerals led by gold. Recent banking reforms have helped increase private-sector growth and investment. Continued donor assistance and solid macroeconomic policies supported real GDP growth of 7.1% in 2008.

Geography and Climate

At 945,087 km², Tanzania is the world's 31st-largest country. It is comparable in size to Nigeria.
Tanzania is mountainous in the northeast, where Mount Kilimanjaro, Africa's highest peak, is situated. To the north and west are the Great Lakes of Lake Victoria (Africa's largest lake) and Lake Tanganyika (Africa's deepest lake, known for its unique species of fish). Central Tanzania comprises a large plateau, with plains and arable land. The eastern shore is hot and humid, with the island of Zanzibar lying just offshore.

Tanzania contains many large and ecologically significant wildlife parks, including the famous Ngorongoro Crater, Serengeti National Park in the north, and Selous Game Reserve and Mikumi National Park in the south.

The government of Tanzania through its department of tourism has embarked on a campaign to promote the Kalambo water falls in southwest Tanzania's region of Rukwa as one of Tanzania's many tourist destinations. The Kalambo Falls are the second highest in Africa and are located near the southern tip of Lake Tanganyika.

Tanzania has a tropical type of climate. In the highlands, temperatures range between 10°C and 20°C during cold and hot seasons respectively. The rest of the country has temperatures rarely falling lower than 20°C. The hottest period extends between November and February (25°C - 31°C) while the coldest period occurs between May and August (15°C - 20°C).

Two rainfall regimes exist over Tanzania. One is unimodal (December - April) and the other is bimodal (October -December and March - May). The former is experienced in southern, south-west, central and western parts of the country, and the latter is found to the north and northern coast.

Economics

The economy is mostly based on agriculture, which accounts for more than half of the GDP, provides 85% (approximately) of exports, and employs approximately 80% of the workforce. Topography and climatic conditions, however, limit cultivated crops to only 4% of the land area.

The nation has many resources including gold and natural gas. Extraction of natural gas began this decade. Gas is drawn into the commercial capital, Dar Es Salaam and exported to various markets overseas. Lack of overall development however has hampered the extraction of these various resources, and even up to the present there has been effort to develop the natural resource sector but no major quantifiable results.

Industry is mainly limited to processing agricultural products and light consumer goods. Tanzania has vast amounts of natural resources including gold, diamonds, coal, iron ore, uranium, nickel, chrome, tin, platinum, coltan, niobium and other minerals. It is the third-largest producer of gold in Africa after South Africa and Ghana. Tanzania is also known for the Tanzanite gemstones.

Tanzania has dozens of beautiful national parks like the world famous Serengeti and the Ngorongoro Conservation Area, that generate income with a large tourism sector that plays a vital part in the economy.

Growth from 1991 to 1999 featured a pickup in industrial production and a substantial increase in output of minerals, led by gold. Commercial production of natural gas from the Songo Songo island in the Indian Ocean off the Rufiji Delta commenced 2004, with natural gas being pumped in a pipeline to the commercial capital Dar es Salaam, with the bulk of it being converted to electricity by the public utility and private operators. A new gas field is being brought on stream in Mnazi Bay.

Recent public sector and banking reforms, and revamped and new legislative frameworks have all helped increase private-sector growth and investment. Short-term economic progress also depends on curbing corruption and cutting back on unnecessary public spending.

Prolonged drought during the early years of the 21st century has severely reduced electricity generation capacity (some 60% of Tanzania's electricity supplies are generated by hydro-electric schemes). During 2006, Tanzania suffered a crippling series of "load-shedding" or power rationing events caused by a shortfall of generated power, largely because of insufficient hydro-electric generation. Plans to increase gas- and coal-fueled generation capacity are likely to take some years to implement, and growth is forecast to be increased to seven per cent per year, and perhaps eight or more.

There are 3 major airlines in Tanzania, the Air Tanzania Corporation, Precision Air which provide local and regional flights. There are also several charter aeroplane firms. There are two railway companies: TAZARA and Tanzania Railways Corporation.

Tanzania is part of the East African Community and a potential member of the planned East African Federation

The Stock Market

The Dar es Salaam Stock Exchange is a stock exchange located in Dar es Salaam, the largest city in Tanzania. It was incorporated in September 1996 and trading started in April 1998; it is a member of the African Stock Exchanges Association. There are currently 11 listed companies. Trading occurs for less than one hour per week.

Doing Business in Tanzania

Tanzania is ranked 131 out of 183 economies in the World Bank’s Ease of Doing Business Survey

Ease of...	Doing Business 2010 rank	Doing Business 2009 rank	Change in rank
Doing Business	131	126	-5
Starting a Business	120	111	-9
Dealing with Construction Permits	178	175	-3
Employing Workers	131	133	2
Registering Property	145	145	0
Getting Credit	87	84	-3
Protecting Investors	93	88	-5
Paying Taxes	119	113	-6
Trading Across Borders	108	105	-3
Enforcing Contracts	31	31	0
Closing a Business	113	113	0

Politics and Government

Tanzania's president and National Assembly members are elected concurrently by direct popular vote for five-year terms. The president appoints a prime minister who serves as the government's leader in the National Assembly. The president selects his cabinet from among National Assembly members. The Constitution also empowers him to nominate ten non-elected members of Parliament, who also are eligible to become cabinet members. Elections for president and all National Assembly seats were held in December 2005. Tanzania is a one party dominant state with the Chama Cha Mapinduzi in power. Opposition parties are widely considered to have no real chance of gaining power, however, the country remains peaceful despite this assertion.
At present, the ruling Chama Cha Mapinduzi holds about 93% of the seats in the Assembly.