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Country Guide > Africa > Tanzania | |
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Business Profile Economy Agriculture employs around 80 per cent of the working population. Cash crops, including cotton, coffee, tea, sisal, tobacco and cashew nuts, are the country's main export earners, although depressed prices have kept Tanzanian revenues at a static level despite increases in production. There is an expanding mineral sector: diamonds are mined commercially, as are other gemstones and gold. Coal, phosphates, gypsum, tin and other ores are also extracted. Reserves of uranium, nickel, silver and natural gas have been located. The Government granted oil and gas exploration in the mid-1990s, and some small projects are under way, such as natural gas from the Rufiji delta. The industrial sector is small and concentrated in agricultural processing and light consumer goods: sugar processing, brewing, textiles and the manufacture of cigarettes are the most important. The government had pinned much of its hopes on development of its service industries, especially transport and tourism. Tanzania's relatively poor road network is the subject of a major programme of maintenance and construction, mainly financed by the EU. Tourism, which according to 2002 figures was worth about $1 billion to the Tanzanian economy, has suffered a serious downturn as a result of international terrorism. The government had privatised several key industries, including the national airline and the main chain of hotels, in anticipation of a growing tourist market (Tanzania received 500,000 visitors in 2002). Both, along with a number of flagship industries, were bought by South African interests which are establishing a strong presence in Tanzania. Of 400 companies earmarked for sale under the original 1995 plan, over 80 per cent have been disposed of (although some have since failed in private hands). Liberalisation of trade and the financial sector were also implemented as part of an IMF-supported structural adjustment programme. On the whole, the economy has performed fairly well since the mid-1990s. GDP growth in 2002 was over 6 per cent. Tanzania is a recipient of foreign aid from both bilateral and multilateral donors, and some efforts have been made to tackle its large foreign debt. In 2000 the country benefited to the tune of $2 billion from the Heavily Indebted Poor Countries initiative. Total external debt is now just under $7 billion. Tanzania is a member of the African Development Bank, the Southern African Development Community and the East African Community (EAC). Another attempt (the previous one failed in 1977) is being made to establish an East African Customs Union along with Kenya and Uganda. Its principal trading partners are the UK, Japan, Germany, India, Kenya and Congo (Brazzaville). Business Normal courtesies should be shown when visiting local businesspeople. Almost all executives speak English. Office hours: Mon-Fri 0800-1200 and 1400-1630, Sat 0800-1230. Government office hours: Mon-Fri 0730-1530. Commercial Information The following organisation can offer advice: Tanzania Chamber of Commerce, Industry and Agriculture, PO Box 9713, Dar es Salaam (tel: (22) 211 9436 or 212 1421; fax: (22) 211 9437; e-mail: tccia.hq@cats-net.com or tccia.info@cats-net.com; website: www.tccia.co.tz). Conferences/Conventions For information concerning conferences and conventions, contact the Arusha International Conference Centre (AICC), PO Box 3081, Arusha (tel: (27) 250 2593/5 or 250 8008; fax: (27) 250 6630; e-mail: md@aicc.co.tz; website: www.aicc.co.tz). |