.jpg) Dar es Salaam, thefinancial centre of Tanzania | |
| Currency | Tanzanian shilling (TSh) |
|---|---|
| 1 July – 30 June | |
Trade organisations | AU,AfCFTA (signed),EAC,SADC,WTO |
Country group |
|
| Statistics | |
| Population |  72,995,550 (2025)[3] |
| GDP | |
| GDP rank | |
GDP growth | |
GDP per capita | |
GDP per capita rank | |
GDP by sector |
|
| 3.9% (2020 est.)[6] | |
| 12% (2014)[7] | |
Population belowpoverty line | |
| 40.5medium (2017)[10] | |
Labour force | |
Labour force by occupation | Agriculture: 50%[15]: page 56 |
| Unemployment | 2.2% (2017)[16] |
Main industries | agricultural processing (sugar, beer, cigarettes, sisal twine); mining (diamonds, gold, and iron), salt, soda ash; cement, oil refining, shoes, apparel, wood products, fertilizer[5] |
| External | |
| Exports | $5.6685 billion (105th; October 2015)[17] |
Export goods | gold, tobacco, cashews, sesame seeds, refined petroleum |
Main export partners |  India 27% United Arab Emirates 11% South Africa 9% Kenya 5% Rwanda 5% (2022)[18] |
| Imports |  $10.441 billion (FOB; October 2015)[17] |
Import goods | refined petroleum, palm oil, packaged medicines, cars, wheat |
Main import partners |  China 30%India 18%United Arab Emirates 11% Democratic Republic of the Congo 5% Saudi Arabia 2% (2022)[18] |
FDI stock | $12.715 billion (2013)[19] |
| –4.002 billion (October 2015)[17] | |
Grossexternal debt | $15.4 billion (October 2015)[17] |
| Public finances | |
 37% of GDP (2017 est.)[5] | |
| $4,383.6 million (4.5months of imports; 2013)[17] | |
| –1.8% (of GDP) (2017 est.)[5] | |
| Revenues | $12.88 billion (2022 est.) |
| Expenses | $14.91 billion (2022 est.) |
| Economic aid | $490 million (recipient; 2014)[20] |
| B+ (Fitch; 2024)[21] | |
All values, unless otherwise stated, are inUS dollars. | |
Theeconomy of Tanzania is a lower-middle income economy[22][23] that is centered around manufacturing, tourism, agriculture, and financial services.[24]Tanzania's economy has been transitioning from aplanned economy to amarket economy since 1985. Although the total GDP has increased since these reforms began, GDP per capita dropped sharply at first, and only exceeded the pre-transition figure in around 2007.[25]
The value of Tanzania's GDP at current prices reached USD 174.7 billion in 2022.[26] Tanzania has the 2nd largest economy inEast Africa afterKenya, and the 7th largest inSub-Saharan Africa.[27]
It has sustained relatively high economic growth compared to global trends, as is characteristic of African nations. According toWorld Bank data, the last 5 years have seen the slowest growth since 2000. The medium-term outlook is so far positive, with growth projected at 8 percent in 2020/21, which is supported by large infrastructure spending.[28][29]
TheWorld Bank (WB) expects the economic growth of Tanzania to slow to 2.5% in 2020[30] due to theCOVID-19 pandemic which has affected the labor market, the production capacity, and productivity. Tourism has halted, and exports of manufacturing and agricultural goods slumped.
On 7 September 2021, theIMF approved US$567.25 million in emergency financial assistance to support Tanzania’s efforts in responding to theCOVID-19 pandemic[31] by addressing the urgent health, humanitarian, and economic costs.
Significant measures have been taken toliberalize theTanzanianeconomy along market lines and encourage both foreign and domestic privateinvestment. Beginning in 1986, theGovernment of Tanzania embarked on an adjustment program to dismantle thesocialist (Ujamaa) economic controls and encourage more active participation of theprivate sector in the economy. The program included a comprehensive package of policies which reduced thebudget deficit and improved monetary control, substantially depreciated the overvaluedexchange rate, liberalized the trade regime, removed most price controls, eased restrictions on the marketing of food crops, freedinterest rates, and initiated a restructuring of the financial sector. Tanzania acceptedausterity measures required by theInternational Monetary Fund (IMF) andWorld Bank-imposed structural adjustment policies.[32]: 114
Current GDP per capita of Tanzania grew more than 40 percent between 1998 and 2007.[33] In May 2009, the IMF approved an Exogenous Shock Facility for Tanzania to help the country cope with theglobal economic crisis[34] Tanzania is also engaged in a Policy Support Instrument (PSI) with the IMF, which commenced in February 2007 after Tanzania completed its second three-yearPoverty Reduction and Growth Facility (PRGF), the first having been completed in August 2003. The PRGF was the successor program to theEnhanced Structural Adjustment Facility, which Tanzania also participated in from 1996 to 1999. The IMF's PSI program provides policy support and signaling to participating low-income countries and is intended for countries that have usually achieved a reasonable growth performance, low underlying inflation, an adequate level of official international reserves, and have begun to establish external and net domestic debt sustainability.
Tanzania also embarked on a major restructuring of state-owned enterprises. The program has so far divested 335 out of some 425 parastatal entities. Overall, real economic growth has averaged about 4 percent a year, much better than the previous 20 years, but not enough to improve the lives of average Tanzanians. Also, the economy remains overwhelminglydonor-dependent. Moreover, Tanzania has an externaldebt of $7.9 billion. The servicing of this debt absorbs about 40 percent of total government expenditures. Tanzania has qualified for debt relief under the enhancedHeavily Indebted Poor Countries (HIPC) initiative. Debts worth over $6 billion were canceled following implementation of the Paris Club 7 Agreement.
This is a chart of trend of gross domestic product of Tanzania at market prices estimated by the International Monetary Fund with figures in millions ofshillings.[35][36][needs update]
| Year | Gross Domestic Product | US Dollar Exchange |
|---|---|---|
| 1980 | 45,749 | 8/21 |
| 1985 | 115,006 | 17/87 |
| 1990 | 830,693 | 195/04 |
| 1995 | 3,020,501 | 536/40 |
| 2000 | 7,267,133 | 800/43 |
| 2005 | 13,713,477 | 1,127/10 |
| 2010 | – | 1,515/10 |
As of 2025, the meanurban wage in Tanzania was estimated to beTZS 494,812 ($189), whereas the meanrural wage was estimated at TZS 367,034 ($140); both of these were a small increase from respectively TZS 425,608 and 317,779 in 2020.[37][38] In July 2025, theminimum wage for publicofficials was raised from TZS 370,000 to TZS 500,000.[39]
Tanzania has a substantial degree ofinequality. According to theWID, the top 1% of Tanzanians gained 17.90% of the total income in 2023, whereas the bottom 50% gained 14.10%.[40] The most recentGini coefficient (for the year 2018) is 40.5.[41]
The economy saw a GDPgrowth of 5.5% in 2024. Except for a low point of 2% in 2020, the growth varied between 4.5% and 7.7% for every year since 1999.[42]
The following table shows the main economic indicators in 1980–2023. Inflation below 5% is in green.[43]
| Year | GDP (in billion US$ PPP) | GDP per capita (in US$ PPP) | GDP (in billion US$ nominal) | GDP growth (real) | Inflation rate (in Percent) | Government debt (in % of GDP) |
|---|---|---|---|---|---|---|
| 1980 | 21.9 | 1,475 | 11.1 | 3.3% |  30.2% | n/a |
| 1981 | 23.0 | 1,500 | 12.0 | 0.5% | 25.7% | n/a |
| 1982 | 24.5 | 1,539 | 12.6 | 0.6% | 28.9% | n/a |
| 1983 | 25.7 | 1,565 | 13.3 | 2.4% | 27.1% | n/a |
| 1984 | 27.7 | 1,601 | 13.7 | 3.4% | 36.1% | n/a |
| 1985 | 29.8 | 1,660 | 14.5 | 4.6% | 33.3% | n/a |
| 1986 | 31.2 | 1,726 | 15.0 | 6.6% | 32.4% | n/a |
| 1987 | 33.7 | 1,772 | 15.9 | 5.9% | 29.9% | n/a |
| 1988 | 35.3 | 1,840 | 16.5 | 4.4% | 31.2% | n/a |
| 1989 | 37.9 | 1,916 | 17.5 | 3.8% | 25.8% | n/a |
| 1990 | 39.3 | 2,003 | 18.4 | 7.0% | 36.4% | n/a |
| 1991 | 42.3 | 2,126 | 19.9 | 2.1% | 25.2% | n/a |
| 1992 | 44.3 | 2,229 | 22.4 | 0.6% | 20.7% | n/a |
| 1993 | 47.3 | 2,423 | 23.5 | 1.2% | 26.1% | n/a |
| 1994 | 49.9 | 2,694 | 24.0 | 1.6% | 37.9% | n/a |
| 1995 | 52.8 | 2,972 | 25.5 | 3.6% | 26.8% | n/a |
| 1996 | 56.3 | 3,144 | 27.7 | 4.5% | 21.0% | n/a |
| 1997 | 60.5 | 3,345 | 29.2 | 3.5% | 16.1% | n/a |
| 1998 | 64.1 | 3,550 | 31.2 | 3.7% | 12.8% | n/a |
| 1999 | 67.4 | 3,732 | 33.5 | 4.8% | 7.9% | n/a |
| 2000 | 70.2 | 3,978 | 36.9 | 4.9% | 6.0% | n/a |
| 2001 | 75.5 | 4,269 | 39.6 | 6.0% | 5.1% | 50.2% |
| 2002 | 83.2 | 4,438 | 43.5 | 6.9% | 4.6% | 47.0% |
| 2003 | 91.3 | 4,641 | 46.3 | 6.4% | 4.4% | 44.3% |
| 2004 | 100.4 | 5,001 | 50.3 | 7.2% | 4.1% | 44.6% |
| 2005 | 110.3 | 5,307 | 55.6 | 6.5% | 4.4% | 46.8% |
| 2006 | 121.9 | 5,672 | 59.9 | 4.7% | 7.3% | 32.8% |
| 2007 | 132.5 | 6,041 | 63.3 | 8.5% | 7.0% | 21.6% |
| 2008 | 142.5 | 6,401 | 68.0 | 5.6% | 10.3% | 21.5% |
| 2009 | 155.1 | 6,902 | 73.7 | 5.4% | 12.1% | 24.4% |
| 2010 | 173.5 | 7,452 | 78.5 | 6.4% | 7.2% | 27.3% |
| 2011 | 186.9 | 7,745 | 84.9 | 7.9% | 12.7% | 27.8% |
| 2012 | 201.0 | 8,010 | 92.0 | 5.1% | 16.0% | 29.2% |
| 2013 | 215.0 | 8,590 | 98.1 | 7.2% | 7.9% | 30.9% |
| 2014 | 237.3 | 8,983 | 106.5 | 7.0% | 6.1% | 33.8% |
| 2015 | 265.7 | 9,505 | 115.0 | 6.2% | 5.6% | 39.2% |
| 2016 | 292.5 | 10,000 | 124.0 | 6.9% | 5.2% | 39.8% |
| 2017 | 315.0 | 10,599 | 133.0 | 6.8% | 5.3% | 40.7% |
| 2018 | 340.4 | 11,095 | 142.5 | 7.0% | 3.5% | 40.5% |
| 2019 | 365.9 | 11,550 | 152.9 | 7.0% | 3.4% | 39.1% |
| 2020 | 390.0 | 11,900 | 160.0 | 4.8% | 3.3% | 39.8% |
| 2021 | 415.1 | 12,305 | 167.5 | 4.9% | 3.7% | 42.1% |
| 2022 | 440.2 | 12,675 | 174.7 | 4.7% | 4.4% | 42.3% |
| 2023 | 465.9 | 12,995 | 180.9 | 5.2% | 4.0% | 42.6% |
The Tanzanian economy is heavily based on agriculture, which accounts for 28.7 percent of gross domestic product,[15]: page 37 provides 85 percent of exports,[44] and accounts for half of the employed workforce;[15]: page 56 The agricultural sector grew 4.3 percent in 2012, less than half of theMillennium Development Goal target of 10.8 percent.[45] 16.4 percent of the land isarable,[46] with 2.4 percent of the land planted withpermanent crops.[47]
This strong dependence on agriculture, makes Tanzania's economy highly vulnerable to weather shocks and fluctuating commodity prices. 76% of Tanzania's population subsist thanks to agriculture and, due to the lack of knowledge and infrastructure to develop and implement some kind of agricultural technology, any droughts, floods, or temperature shocks can severely damage the living standards of those people and create huge increases in unemployment, hunger, and malnutrition rates, as well as, in really severe case, mortality rates due to starvation.[48]
Tanzania produced in 2018:
In addition to smaller productions of other agricultural products, liketobacco (107 thousand tons, 8th largest producer in the world),coffee (55 thousand tons),tea (36 thousand tons) andsisal (33 thousand tons).[49]
Industries are a major and growing component of the Tanzanian economy, contributing 22.2 percent of GDP in 2013.[15]: page 37 This component includes mining and quarrying, manufacturing, electricity and natural gas, water supply, and construction.[15]: page 37
Mining contributed 3.3 percent of GDP in 2013.[15]: page 33 The vast majority of the country's mineral export revenue comes from gold, accounting for 89 percent of the value of those exports in 2013.[15]: page 71 It also exports sizable quantities of gemstones, includingdiamonds andtanzanite.[50]: page 1250 All of Tanzania'scoal production, which totalled 106,000 short tons in 2012, is used domestically.[51]
Other minerals exploited in Tanzania include;
Modern gold mining in Tanzania started in theGermancolonial period, beginning with gold discoveries nearLake Victoria in 1894. The first gold mine in what was thenTanganyika, theSekenke Gold Mine, began operation in 1909, and gold mining in Tanzania experienced a boom between 1930 andWorld War II. By 1967, gold production in the country had dropped to insignificance but was revived in the mid-1970s, when the gold price rose once more. In the late 1990s, foreign mining companies started investing in the exploration and development of gold deposits in Tanzania, leading to the opening of a number of new mines, like theGolden Pride mine, which opened in 1999 as the first modern gold mine in the country, or theBuzwagi mine, which opened in 2009.[52][53]
Nickel reserves amounting to 290,000 tonnes were discovered in October 2012 by Ngwena Company Limited, a subsidiary of the Australian mining companyIMX Resources. An initial investment of aroundUSD $38 million has been made since exploration began in 2006, and nickel should start being mined at the end of 2015.[54]
Chinese firms have been showing major interest in Tanzania's mineral deposits; an announcement was made in late 2011 of a plan by theSichuan Hongda Group, to invest aboutUS$3 billion to develop theMchuchuma coal andLiganga iron ore projects in the south of the country.[55] It was also announced in August 2012 thatChina National Gold Corp are in talks to purchase mining assets in Tanzania fromAfrican Barrick Gold, in a deal that could be worth more than £2 billion stg.[55]
In November 2012, the Tanzanian government announced investigations into allegations that mining investors in the country were harassing and on some occasions, killing residents around mining sites.[56]
The government-ownedTanzania Electric Supply Company Limited (TANESCO) dominates the electric supply industry in Tanzania.[57] The country generated 6.013 billionkilowatt hours (kWh) of electricity in 2013, a 4.2 percent increase over the 5.771 billion kWh generated in 2012.[58]: page 4 Generation increased by 63 percent between 2005 and 2012;[59][60] however, only 15 percent of Tanzanians had access to electric power in 2011.[61] Almost 18 percent of the electricity generated in 2012 was lost because of theft and transmission and distribution problems.[59] The electrical supply varies, particularly when droughts disrupt hydropower electric generation; rolling blackouts are implemented as necessary.[50]: page 1251 [57] The unreliability of the electrical supply has hindered the development of Tanzanian industry.[50]: page 1251 In 2013, 49.7 percent of Tanzania's electricity generation came from natural gas, 28.9 percent from hydroelectric sources, 20.4 percent from thermal sources, and 1.0 percent from outside the country.[58]: page 5 The government is building a 532 kilometres (331 mi) gas pipeline fromMnazi Bay to Dar es Salaam, with a scheduled completion in 2015.[62] This pipeline is expected to allow the country to double its electricity generation capacity to 3,000 megawatts by 2016.[63] The government's goal is to increase capacity to at least 10,000 megawatts by 2025.[64]
According toPFC Energy, 25 to 30 trillion cubic feet of recoverable natural gas resources have been discovered in Tanzania since 2010.[51] The value of natural gas actually produced in 2013 was US$52.2 million, a 42.7 percent increase over 2012.[15]: page 73
Commercial production of gas from the Songo Songo Island field in the Indian Ocean commenced in 2004, thirty years after it was discovered there.[65][66] Over 35 billion cubic feet of gas was produced from this field in 2013,[15]: page 72 with proven, probable, and possible reserves totalling 1.1 trillion cubic feet.[66] The gas is transported by pipeline to Dar es Salaam.[65] As of 27 August 2014, TANESCO owed the operator of this field, Orca Exploration Group Inc., US$50.4 million, down from US$63.8 million two months earlier.[67]
A newer natural gas field in Mnazi Bay in 2013 produced about one-seventh of the amount produced near Songo Songo Island[15]: page 73 but has proven, probable, and possible reserves of 2.2 trillion cubic feet.[66] Virtually all of that gas is being used for electricity generation inMtwara.[65]
TheIndian Ocean, off the coast ofMozambique andTanzania, is proving to be a rich hunting ground fornatural gas exploration. According toUS Geological Survey estimates, the combined gas reserves of Mozambique and Tanzania could be as high as 250 trillion cubic feet. In Mozambique alone, proven gas reserves have increased dramatically from a mere 4.6 trillion cubic feet in 2013 to 98.8 trillion cubic feet as of mid-2015. Given continued offshore discoveries and the size of discoveries to date, continued growth in proven gas reserves is likely to continue into the foreseeable future.[68][69]
In 2014, Tanzania's natural gas production was 19 billion cubic feet (Bcf), a 30% decline from five years prior, but increased in mid-2015 following the commencement of operations at the Mnazi Bay Concession and a new pipeline toDar es Salaam. Significant gas discoveries, including 16 to 17 trillion cubic feet (Tcf) by the BG Group and partners, and 22 Tcf byStatoil withExxonMobil, have positioned Tanzania to potentially become an LNG exporter. However, development plans, including an LNG plant agreed upon in 2014 with international companies and theTanzania Petroleum Development Corporation (TPDC), have not advanced to sanctioning.[70]
New exploration on more frontier blocks, however, will likely be slowed as oil and gas prices fall[71] and companies apply increasing caution to investing in frontier markets with nascent industries, poor infrastructure and long lead times.[72]
The exploration and development of natural gas in Tanzania have boosted its economic framework. In 2024, the Ntorya gas field received a 25-year development license, a major step in harnessing Tanzania'snatural gas. Managed by ARA Petroleum Tanzania Limited (APT), this field is expected to begin producing substantial gas quantities for domestic use within a year. Initial production is projected at 40 million cubic feet per day, with potential expansion to 140 million cubic feet per day in future years.[73]
Tanzania's history of political stability has encouraged foreign direct investment. The government has committed itself to improve the investment climate including redrawing tax codes, floating the exchange rate, licensing foreign banks, and creating an investment promotion centre to cutred tape. Its economy is currently being managed according to theTanzania Mini-Tiger Plan. Tanzania hasmineralresources and a largely untappedtourism sector, which might make it a viable market for foreign investment.
The stockmarket capitalisation of listed companies in Tanzania was valued at $588 million in 2005 by theWorld Bank.[74]
Zanzibar's economy is based primarily on the production ofcloves (90% grown on the island ofPemba), the principal foreign exchange earner. Exports have suffered from the downturn in the clove market.
The Government of Zanzibar has been more aggressive than its mainland counterpart in instituting economic reforms and has legalized foreign exchange bureaus on the islands. This has loosened up the economy and dramatically increased the availability of consumer commodities. Furthermore, with external funding, the government plans to make the port of Zanzibar a freeport. Rehabilitation of current port facilities and plans to extend these facilities will be the precursor to the free port. The island's manufacturing sector is limited mainly toimport substitution industries, such ascigarettes,shoes, and process agricultural products. In 1992, the government designated two export-producing zones and encouraged the development of offshore financial services. Zanzibar still imports much of itsstaple requirements,petroleum products, and manufactured articles.
Government ministries, agencies and sites
