Tanzania: An Overview

The country, with a population of 48.6 million (2016), is the largest in East Africa and its new middle-class is growing rapidly. GDP per capita has increased by 13 percent since 2012. Source: Focus Economics

A strong and improved external sector and investment in infrastructure is expected to underpin growth, albeit softening from 2016 levels given a fall in commodity prices, with GDP growth forecast at 6.3 percent in 2017 and rising to 6.6 percent in 2018. Ruling party, CCM leader, John Magufuli has a strong and stable grip on power, with ambitious plans to improve public sector efficiency and boost living standards, supporting robust medium-term economic prospects

Tanzania faces the Indian Ocean; it is the natural trading gateway for the five landlocked countries surrounding it, which are: The Democratic Republic of Congo (DRC), Rwanda, Burundi, Uganda and Zambia. The country is further blessed with vast natural riches: minerals in the form of gold, diamonds, copper, coal; more recently large discoveries of natural gas along its shores and it enjoys vast tracts of beautiful natural scenery including game reserves and sandy beaches.

Democratic principles are firmly ingrained in the country; since its independence in 1961, the country has never suffered a civil war and its political leaders have come to power through an electoral process. Free-market principles are also firmly ingrained and successive Governments have continued to open up and liberalize Tanzania’s economy. As a result, Tanzania has enjoyed over five consecutive years of 7 percent real GDP growth and is a member what the World Bank has dubbed the “7 percent Club”, a group of countries forecast to achieve 7 percent or more real GDP growth for next decade.

Investments in Tanzania are guaranteed against nationalization and expropriation through various agreements of protection and promotion of investments such as the Multilateral Investment Guarantee Agency (MIGA), of which Tanzania is a member.

Tanzania also offers access to major markets of the world, such as America and Europe, through special bilateral trade and investment agreements and arrangements, for instance, the Africa Growth Opportunity Act (AGOA) of which Tanzania is a signatory. Source: Investor guide to Tanzania 2014-15.

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