Contributing an estimated 47.6% of GDP in 2017, the services sector plays a significant role in the growth and development of the Tanzania economy, followed by industry and agriculture, contributing about 28.6% and 23.4% of GDP respectively. Trade in goods and services also plays an important role in Tanzania’s economic growth – contributing 41.33% to GDP in 2017. Much of Tanzania’s export earnings are from commodities such as coffee, cashew nuts, manufacturers, gold and cotton, and its major imports include machinery and transport equipment, industrial raw materials, crude oil and consumer goods.
The country continues to recover from a setback which started in 2016, with construction, mining, transport and communication as key drivers. Besides, the government embarked on a fiscal consolidation strategy aimed at public expenditure efficiency to support economic growth. Growth is expected to remain robust at 7% over the next three years. Inflation is also expected to stabilise at 4% over the next 3years.
Despite the uncertainty in the business environment (due to changes in policies, regulations and tax administration) combined with weak private-sector credit growth, which discourages investment and the slow implementation of infrastructure projects, Tanzania provides a reasonably growing domestic market with a population of 50.045 million in 2017 that is expected to grow to 52.067 million in 2019, a GDP of US$51.725 billion in 2017, which is expected to increase to about US$61.660billion in 2019 and a GDP per capita income of US$1,033.57 in 2017, projected to rise to US$1,184.24 in 2019.
The country also holds opportunities for export diversification to neighbouring East African Community (EAC) countries, Africa, COMESA, the UK and the US market under the Africa Growth Opportunity Act (AGOA).
The country’s volume of imports of goods and services is expected to increase from about -3.97% in 2017 to approximately 12.10% in 2019, and the amount of exports of goods and services is expected to grow from about -1.47% in 2017 up to around 8.61 in 2019, indicating an expansion in trade.
There is potential for investment in construction, tourism, hotel and catering, and infrastructure development.