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World Bank Document R e p o r t N o. T.A.7 CIRCULATING COPY CO/9 F/.P IC TJ_F-L-- TO BE RETURNED TO ARCHIVES DIVISION Public Disclosure Authorized This report is not to be published nor may it be quoted as representing the Bank's views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Public Disclosure Authorized THE ECONOMY OF TANGANYIKA (Preliminary Memorandum for the IBRD Survey Mission) Public Disclosure Authorized May 14, 1958 Public Disclosure Authorized Prepared By: Walter A. Chudson J.P. Hayes CONTENTS Page Basic Statistics Maps and Charts Chapter I - General Description of Tanganyika............... 1 Geography, Climate and Natural Resources............ 1 The Pepe........................ ... 4 Government ............................**0.0.00600009 6 Chapter II - The Economy - Structure and Growth ............. 10 Historical ................ C.. 60 .. .. .09 10 National Product and Its Composition................ 12 Capital FormationO.. ...0... ... ... ............. 0014 External Trade and Payments ......................... 15 Agriculturec .......... 20 Transport... ... ...... .. ... 30 Mining ..... 32 Manufacturing ....... 34 Monetary and Financial Institutions...... ............ 35a Chapter III - Development Plans and Their Financing....,.... 36 The Territorial Budget.... .......................... 36 The Capital Budget................................. 38 Official Development Plans .......................... 39 Ten-Year Development Plan, 1940-65.................. 40 Appendix I - Capital Requirements Program, 1955-65 Bibliography Statistical Tables BASIC STATISTICS Area Land area (excluding major lakes) 341,150 sq. miles Population Total (1957 census) 8,785,600 African 8,662,700 European 20 ,500 Indian and Pakistani 71,700 Arab 19,100 Other 11,600 Average annual rate of growth, 1948-1957 1.6% Average new permanent European immigration, 2,700 per annum 1955-1957 African employees (1957) 430,000 As percentage of adult population 9% Geographical Product (monetary economy) 1957 f92.3 million Shares of sectors in total product (per cent) Agriculture 49 Livestock 11 Mining 3.5 Manufacturing 3.5 Average annual growth of real product, 1954 to 1957 - 2.0% Gross fixed capital expenditure (monetary economy) £22.2 million External Trade, average 1956 & 1957. Exports (f,o.b.) f 45.7 million of which: to Kenya and Uganda 22.1 million Imports (c.i.f.) £ 44.6 million of which: from Kenya and Uganda £7.0 million Leading exports: Quantity Value Per cent of total Sisal 183,700 tons l10.2 million 24.1 Coffee 19,800 tons f 8.2 million 19.4 Cotton 27,600 tons f 7.0 million 16.7 Diamonds 365,400 carats 13.17million 7.2 67*4 Destination of exports, 1956: Sterling area 55% Western Europe (non-sterling) 30% United States and Canada 9% Other countries 7% Unit value of exports (1950 = 100) 1948 74 1952 136 1957 92 Public Finance (1958/59 budget estimate of The Central Government, fiscal year ending 30 June) Total Current Revenue2/ £19.8 million of which: Taxes on income £6.1 million Taxes on expenditure (including import duties) M10.0 million Total Current Expenditure £21.0 million Expenditure on Development Plan (capital budget) f 6.0 million Capital budget: sources of funds Loans and territorial sources f4.5 million U.K. and other foreign grants fl.5 million Functional division of combined current and capital budgets Total £27.0 million of which: Economic services £8.5 million Social services £8.1 million Admi-nistration, law and order £6.5 million General expenditure £3.9 million Public debt (30 April,-1958) f16.3 million I/ Includes some small U.K. grants for current purposes. Money and Banking 1957 Currency in circulation fl9.0 million Demand deposits of commercial banks £13.8 million Tanganyika savings banks Number of depositors 99,600 Credit balances f 2.4 million Prices Cost of living (excluding rent) - Dar es Salaam, Dec. 1958 (1950 = 100) 143 Retail price index of African consumers goods - Dar es Salaam, Dec. 1958 (1951 = 100) 125 TAALUSVOLUD4 AND PRIC3 Or 111ORT1 MM0 ILB ffgAJYX to Iestleationq Outsid East Arica Indices: Asza 1955 - 57 100 ." 0 .~~~~~~~~~~,. 0 l2e - X 70 > / 60 > jS 50 F0 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 p-10 I. g TMI I_~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~I ! io 0 a ., .~~~ . :~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~s X '' '''. .. '... w £ - 1 - CHAPTER I. GENERAL DESCRIPTION OF TANGANYIKA GEOGRAPHY, CLIMATE AND NATURAL RESOURCES 1. Tanganyika lies just south of the Equator between the Great Lakes (Lakes Victoria, Tanganyika and Nyasa) and the Indian Ocean. With a land area of 341,800 square miles, it is the largest of the three units compris- ing British East Africa, the other two being Kenya and Uganda. Stretching about 725 miles from north to south and 660 miles from east to west, it covers an area equivalent to pre-war Germany, France and Belgium, or roughly the same as Nigeria. It takes two days and two nights to travel by train from Dar es Salaam to Mwanza on Lake Victoria or to Kigoma on Lake Tanganyika. The size of the area, together with the fact that the portions suitable for agricultural and possibly mineral development are scattered and remote from the coast, means that communications inevitably play a major part in the development of the territory. 2. With the exception of a narrow belt along the 550-mile coast (which is reasonably well equipped with harbors), the country consists largely of a gently undulating plain with an altitude of about 4,000 feet. In the north Mount Kilimanjaro, with a permanent ice cap, rises to over 19,000 feet, and a belt of high land runs southeast from the Usambara mountains in the northeast corner of the country to the Southern Highlands around the tip of Lake Nyasa. 3. Three climatic zones can be distinguished, though very considerable local variations are to be found: (i) The warm and humid coast region. (ii) The hot and dry zone of the central plateau at altitudes up to 5,000 feet. (iii) The semi-temperate regions of high rainfall around the slopes of the mountains Kilimanjaro and Meru and some other highlands elsewhere. In the central plateau, which comprises more than half of the territory, the main climatic feature is the long dry spell from May to October, fol- lowed by a period of low rainfall which is often concentrated into rela- tively few days of heavy showers. Furthermore, the rainfall in this region is markedly irregular from year to year; in much of the area the chances of receiving more than 20 inches of rainfall are poor. Bushland and wooded grassland (savanna) are the predominant types of vegetation. The land so covered is sparsely inhabited, not only because of the lack of water but because much of it is infested by the tsetse fly. On the coast the annual average rainfall is higher, ranging about 45 inches, but here also there is a long dry season; the main rainy season is from March to May but there is a second season from October to December. Around Lake Victoria in the northwest rainfall is well distributed throughout the year but there is a peak during March to May. - 2 - 4. Roughly 30,000 square miles, less than a tenth of the total area, is classified as "agricultural country," consisting of land now cultivated or land formerly cultivated but abandoned under the traditional practice of shifting cultivation with a long periodic fallow. Only an estimated 3% of the land is usbd. for arable and tree crops. About 80% or more is considered to have potentialities only for forestry and range livestock production, subject to effective control of tsetse infestation. Most of the present agricultural cash crop production and population are concen- trated in a few areas of higher rainfall and better soils in the periph- eral areas of Tanganyika (the southern highlands and the northern coffee- sisal areas around Mount Kilimanjaro and Mount Meru and the cotton and coffee areas around Lake Victoria in the west). Regional distribution of the main types of vegetation is shown in Table 1 1/. 5. The country, though appearing well watered on the map, has in fact few permanent rivers of any size, reflecting the fact that the rainy season as a rule extends over less than half the year. Several of the permanent rivers flowing into the Indian Ocean are, however, of actual or potential importance in connection with water development and potential generation of electricity. The most important of these is the Rufiji, with its many tributaries from the south and center of the country. The Rufiji River Basin, covering an area of about 68,500 square miles - 20% of the country - is considered the only large potential area for long-term agricultural, power and irrigation development. 6. The influence of these environmental conditions on agricultural activity has been well summarized in a recent report by the F.A.O. in the following terms 2/: "Tanganyika is a large country .... Yet it has only 8 million inhabitants. There is, therefore, on the face of it plenty of room for people to live. It is not like India, China, Italy or Israel, a country where demographic pressure makes the question of development extremely urgent. Nevertheless, the population is rapidly increasing, and there are certain reasons which make the use of land dif- ficult. Among the first of these is the unreliability of rainfall. About a third of the territory, the centre, is only suitable for pasturage. Reliable rainfall is con- fined mainly to the periphery, to a large area in the South and West, to the district round Lake Victoria in the North, and to a few mountain masses which rise in isolated out- crops from the dry plains at their feet. The remaining extensive areas are marginal. Tables with Arabic numerals are contained in the Appendix. 2/ Report to the United Nations Trustees hip Council aubmitted by the Food and Agriculture Organization concerning land tenure and land use problems in the Trust Territories of Tanganyika and Ruanda-Urundi.
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