Socio demographics Analysis
The total population of Tanzania is estimated at 38.4 million (UN, 2005). Dar es Salaam is the commercial capital city while Dodoma is the official capital city. It has a surface area of 945,087 sq km (364,900 sq miles).
Life expectancy is 46 years (men), 46 years (women) (UN). GNI per capita is US $340 (World Bank, 2006)
Customers & Stakeholders Analysis
Economic Analysis
GDP growth in Tanzania reached 6.7 per cent in 2004. Tanzania's impressive growth in 2004 was supported by rising agricultural production associated with good weather conditions. The inflation rate remained below 4.5 per cent at end- June 2005 as lower food prices compensated for higher fuel costs.
The country's export performance continues to improve and, combined with ongoing debt relief initiatives, Tanzania's external debt is sustainable, at least over the medium term. The country also recorded a considerable increase in its gross official reserves, which amounted to the equivalent of about 8 months of imports in 2004, up from an average of 6.7 months of imports between 1999 and 2003.
The 2005 elections were conducted mostly peacefully despite some difficulties in Zanzibar and, more particularly, the island of Pemba, and the incumbent party presidential candidate Jakaya Kikwete was elected.
Despite this political stability and macroeconomic progress, the business environment remains quite poor and higher growth has yet to translate into significantly improved living standards and a reduction in poverty.
Following the second review of implementation of Tanzania's Poverty Reduction Strategy (PRS) in 2004, the government established a five year National Strategy for Growth and Reduction of Poverty (NSGRP) in 2005. The NSGRP improves upon the PRS through adoption of an outcome-based approach focusing on three clusters:
a) growth and reduction of poverty;
b) improvement of quality of life and social well-being; and
c) good governance and accountability in the public sector.
Policy design and government initiatives are expected to be organized with respect to their contribution to the achievement of these and other related objectives. In addition to the NSGRP, the government of Tanzania also drew up the "Tanzania Mini-Tiger Plan 2020" as a vehicle to achieve the objectives of the Tanzania Development Vision 2025.
The authorities anticipate a GDP growth target of 8-10 per cent in the medium term. Given the strong agricultural growth in 2004, the share of agriculture in GDP increased from 45 per cent in 2003 to 46.2 per cent in 2004. The share of industry in GDP also increased slightly from 16.6 per cent in 2003 to 16.7 per cent in 2004, largely due to very strong growth in mining.
The relatively weaker growth in the service sector implied that the share of services in GDP decreased from 38.4 per cent in 2003 to 37.1 per cent in 2004. The industrial sector's rapid growth is mainly due to strong performances in manufacturing, construction and especially mining and quarrying.
Mining and quarrying output grew at about 20 per cent in real terms in 2004. Hence, even though its share in GDP remains small, it contributed 0.5 per cent to Tanzania's growth in 2004. As in previous years, real growth in construction remained at around 10 per cent, while manufacturing grew at about 5 per cent.
The growth of the electricity and water sub-sectors also held steady at around 5 per cent. Manufacturing and construction each contributed 0.6 per cent to Tanzania's growth in 2004.
In the services sector, the trade, hotels and restaurants sub-sector continued to exhibit fastest growth in 2004 at about 8 per cent, followed by transportation and communications at about 6 per cent despite the rise in fuel prices. Financial, business, and government services were the weakest growing services sub-sectors, with growth of about 4 per cent each in 2004. Given the 11.7 per cent share of trade, hotels and restaurants in GDP, this sub-sector contributed 0.9 to Tanzania's growth.
The overall fiscal deficit before grants is estimated at 11.2 per cent of GDP, below the 12.5 per cent of GDP projected, thanks to improved domestic revenue collection and expenditure restraint.
Environmental Analysis
Tanzania is a tropical country which has four main climatic zones:
1. the hot, humid coastal plains;
2. the hot, arid zone of the central plateau;
3. high, moist lake regions; and
4. temperate highlands.
The climate is governed by two monsoons. The north east monsoon from December to March brings the year's hottest temperatures and when the winds shift to the south from March to May, they bring heavy intermittent rains. The south west monsoon extends from June to September bringing relatively cool, dry weather.
A smaller wet season occurs in November and December. Rainfall varies from an annual average of 1,250mm in the wettest 3 percent of the land area, the south eastern slopes of the great volcanoes, to below 600mm in the central area of the country.
Political Analysis
Technical Analysis
Industry Analysis
A road network connects Tanzania with Kenya, Zambia, Uganda, Burundi and Rwanda. The country is covered by an extensive comprehensive road network consisting of 85,000 kilometres of classified roads, of which 10,300 kilometres are trunk routes.
The formation of the Tanzania Roads Agency (TANROADS) has improved road maintenance. It also acts as an executing agency to the Ministry of Works for road development projects. The Island of Zanzibar has 619 kilometres of roads, 442 kilometres of which is tarred, while Pemba has 363 kilometres, with 130 kilometres being paved.
Tanzania, which comprises of the mainland, and the Islands of Zanzibar and Pemba covers an area of 945,200 sq. km.
Tanzania is an agricultural country with 40 million hectares of arable land. It is also full of rich natural resources including minerals, flora and fauna; Agriculture is the major economic activity and contributes about 47.5 percent of GDP. Other contributors include manufacturing (8.6 percent), internal trade (16.6 percent), transport and communication (5.5 percent), mining and quarrying (17 percent).
Although Tanzania has recently received funds from the ADF and IDA to finance the implementation of the Short-Term Action Plan (STAP) for infrastructure development, Tanzania's underdeveloped transport network remains a key structural weakness.
Nearly 80 per cent of the population still live in rural areas and are engaged in agricultural activities but rural areas are not adequately served by the transport system.
The country's transport system is not only essential for integrating domestic markets, it also serves to handle transit traffic for Tanzania's landlocked neighbours including Burundi, Malawi, Rwanda, Uganda and Zambia.
The country's road network is estimated to be 85 000 km long and includes trunk, regional, district, feeder and urban roads. Urban, district and feeder roads, which are estimated to extend over 56 108 km, are managed by the Urban and Rural Local Government Authorities (LGA), while regional and trunk roads, which comprise an estimated 28 892 km are managed by TANROADS.
Other road networks are managed by the Tanzania Association of National Parks (TANAPA) and private companies which own large agricultural estates. Road safety remains a major problem due to the poor maintenance of vehicles, overloading, poor driving and variable enforcement of axle-load limits.
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