Contents -- Map of Tanzania -- Fast Facts about Tanzania -- People and Poverty -- Tanzania has a young, fast-growing population -- Income poverty is persistently high -- Primary school enrollment has increased substantially in recent years -- Level of education has a strong impact on earnings potential -- Improvements in health and nutrition indicators have been patchy -- HIV prevalence declined between 2003 and 2005, but remains higher than the Sub-Saharan African average -- Women in Tanzania contribute heavily to the economy, but are at a disadvantage according to social indicators -- The mainland and Zanzibar development programs are more than halfway through their implementation periods -- Tanzania is unlikely to meet all of the Millennium Development Goals (MDGs) by 2015 -- Economy -- GDP has recorded high growth in recent years -- Agriculture remains the mainstay of the economy -- Although the agricultural sector is growing, labor and crop productivity are still low -- The manufacturing sector is small, but growing -- The mining and natural resources industry is expanding, but is not yet contributing substantially to long-term economic development -- Tourism is a priority sector that is likely to lead to growth in other sectors -- The size of the informal sector is substantial -- Improved domestic revenue collection has been supporting fiscal policy -- Inflation has intensified -- The external position remains sound -- Monetary policy must tread a careful path -- Numerous challenges to the economy remain -- Environment and Natural Resources -- The natural environment is diverse -- A range of challenges require attention -- Deforestation is occurring faster than the average for Sub-Saharan African countries -- Clean water is at a premium -- Overgrazing has contributed to soil degradation and desertification.

Biodiversity is threatened by overfishing and illegal hunting -- The impact of climate change is likely to be significant -- The government is taking steps to improve environmental oversight, but significant positive outcomes are yet to be seen -- Governance and Business Environment -- Though reforms are being implemented, the business environment in Tanzania remains poor -- Privatization efforts have been partially successful -- Small and medium enterprises contribute significantly to the economy, but face numerous constraints -- Infrastructure is underfunded, in very poor condition, and a major constraint to growth -- Usage and affordability of information and communication technology in Tanzania varies compared to Sub-Saharan Africa as a whole -- The financial sector has undergone deep reforms, but access to finance remains low -- The banking sector remains relatively unscathed amid the global financial crisis -- The fight against corruption continues -- Tanzania has undertaken administrative reforms -- Global Links -- Tanzania is a member of several regional economic blocs -- The EU, China, India, Kenya, and South Africa are Tanzania's largest trade partners -- Immigrants far outpace emigrants -- Foreign direct investment has grown in recent years -- Remittance inflows remain very low compared to other Sub-Saharan African countries -- Tanzania remains a significant recipient of international aid -- By several measures, external debt has dropped in recent years -- Tanzania and the World Bank Group -- World Bank portfolio -- International Finance Corporation portfolio -- Multilateral Investment Guarantee Agency portfolio -- Notes -- References -- Data Appendix -- Boxes -- Box 1 Tanzania's political history -- Box 2 The glaciers of Mount Kilimanjaro -- Figures -- Figure 1 Tanzania has a population age structure similar to that of Sub-Saharan Africa.

Figure 2 Tanzania's GNI per capita is substantially lower than the Sub-Saharan African average -- Figure 3 HIV prevalence in Tanzania was similar to that of neighboring Kenya and Uganda as of 2005 -- Figure 4 Tanzania's GDP growth is outperforming that of Sub-Saharan Africa, a trend that is expected to continue over the next two years -- Figure 5 International tourism revenue is increasing steadily -- Figure 6 Tanzania has avoided the wide swings in inflation that several of its regional comparators have experienced -- Figure 7 Electricity consumption in Tanzania is extremely low -- Figure 8 Energy accounts for more than half of companies' costs in Tanzania, and power outages are more common than in comparator countries -- Figure 9 Financial sector depth in Tanzania has increased in recent years -- Figure 10 China and India are the most common destinations of Tanzania's exports, while China is the largest source of imports -- Figure 11 FDI inflows to Tanzania are greater than to other East African Community countries -- Figure 12 FDI inflows are far smaller than official development assistance, while remittance inflows remain minute -- Figure 13 External debt as a percentage of exports has dropped significantly in recent years -- Tables -- Table 1 Tanzania's health indicators are generally better than those of Sub-Saharan Africa and worse than those of low-income countries -- Table 2 Tanzania's progress toward the Millennium Development Goals is mixed -- Table 3 Value added per agricultural worker in Tanzania remains lower than the Sub-Saharan African average -- Table 4 The mining, construction, communications, and financial sectors grew fastest in 2005-07 -- Table 5 Environmental indicators in Tanzania versus Sub-Saharan Africa and low-income countries -- Table 6 Top 10 users of biomass products and waste (percentage of total energy use).

Table 7 Tanzania made improvements trading across borders in 2008, but backtracked in most other areas -- Table 8 Tanzania outperforms Sub-Saharan Africa on 26 of 41 business environment indicators -- Table 9 Transparency International rates Tanzania better than several comparator countries -- Table 10 Immigrants to Tanzania totaled more than four times the number of emigrants as of 2005 -- Table 11 New projects in Tanzania supported by the IDA, fiscal 2008-mid-fiscal 2009 -- Table 12 New projects in Tanzania supported by the IFC, fi scal 2008-mid-fiscal 2009.