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Tanzania Country Profile Report

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Tanzania Country Profile Report i | P a g e TABLE OF CONTENTS TABLE OF CONTENTS ........................................................................................................ i LIST OF TABLES ................................................................................................................. v LIST OF FIGURES .............................................................................................................. vi COUNTRY FACT SHEET ................................................................................................... vii LIST OF ACRONYMS ....................................................................................................... viii EXECUTIVE SUMMARY ...................................................................................................... x 1. INTRODUCTION AND BACKGROUND ........................................................................ 1 1.1. Introduction ..................................................................................................................................... 1 1.2. Background ..................................................................................................................................... 1 1.3. Objectives of the Report ............................................................................................................ 2 1.4. Methodology ................................................................................................................................... 2 1.5. Structure of the Report ............................................................................................................... 2 2. OVERVIEW OF TANZANIA........................................................................................... 4 2.1. Geography ....................................................................................................................................... 4 2.1.1. Land and location .................................................................................................................................... 4 2.1.2. Language and ethnic groups ............................................................................................................... 5 2.1.3. Relief and drainage ................................................................................................................................. 5 2.1.3.1. Mainland ..................................................................................................................................................... 5 2.2. Historical context .......................................................................................................................... 6 2.2.1. Constitutional setting .............................................................................................................................. 6 2.2.2. Social Context ........................................................................................................................................... 6 2.2.3. Political Context ....................................................................................................................................... 6 3. ECONOMIC OUTLOOK ................................................................................................ 7 3.1. Introduction ..................................................................................................................................... 7 3.2. Economic Structure and Indicators ...................................................................................... 7 3.2.1 Gross Domestic Product ....................................................................................................................... 7 3.2.2 Gross Domestic Product per capita ................................................................................................... 8 3.2.3 Comparison of GDP between Tanzania, Sub-Saharan Africa and South Africa ................ 8 3.2.4 Gross Domestic Product contribution by Sector ............................................................................ 9 3.3. Credit Rating ................................................................................................................................. 11 3.4. Monetary Policy ........................................................................................................................... 11 3.4.1. Inflation Rate ........................................................................................................................................... 11 3.4.2. Exchange Rate ....................................................................................................................................... 12 3.5. Trade Environment ..................................................................................................................... 13 3.5.1. Tanzania’s main exports destinations ............................................................................................. 13 3.5.2. Tanzania’s top export products ......................................................................................................... 13 3.5.3. Tanzania’s main imports origins ....................................................................................................... 14 3.5.4. Tanzania’s top import products ......................................................................................................... 14 3.5.5. Tanzania’s intra-EAC trade ................................................................................................................ 15 3.5.5.1. Tanzania's intra regional trade .......................................................................................................... 15 3.5.5.2. Intra-regional exports............................................................................................................................ 15 3.5.5.3. Tanzania Intra-regional imports ........................................................................................................ 16 3.5.5.4. Intra-regional trade balance ............................................................................................................... 16 3.5.6. Intra-East African Community Trade ............................................................................................... 17 3.5.6.1. Intra-EAC Merchandise Trade ........................................................................................................... 17 3.5.6.2. Total EAC Trade Trends ..................................................................................................................... 18 i | P a g e 3.5.7. Tanzania Trade with South Africa .................................................................................................... 19 3.5.7.1. Tanzania’s exports to South Africa .................................................................................................. 19 3.5.7.2. Tanzania’s imports from South Africa ............................................................................................. 21 3.5.7.3. Tanzania’s trade balance with South Africa .................................................................................. 21 3.5.7.4. South Africa’s trade performance with SADC member states ................................................ 22 3.6. Business Environment ............................................................................................................. 24 3.6.1. Economic Freedom Index ................................................................................................................... 24 3.6.2. Ease of Doing Business ...................................................................................................................... 25 3.6.2.1. Ease of doing business in Tanzania ................................................................................................ 26 3.6.2.2. Ease of doing business in the EAC region .................................................................................... 27 3.6.3. Global Competitiveness Index ........................................................................................................... 28 3.6.4. Corruption Perceptions Index ............................................................................................................ 29 3.7. Regional Integration Index ...................................................................................................... 30 3.7.1. Overview of Tanzania’s regional integration scores ................................................................... 30 3.7.1.1. Trade integration .................................................................................................................................... 30 3.7.1.2. Regional infrastructure ......................................................................................................................... 32 3.7.1.3. Productive integration........................................................................................................................... 32 3.7.1.4. Free movement of people ................................................................................................................... 32 3.7.1.5. Financial and macroeconomic integration ..................................................................................... 33 3.7.2. Regional Integration Index overall in countries by Regional Economic Community ........ 33 3.7.2.1. East African Community (EAC) ........................................................................................................
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