THE UNITED REPUBLIC OF TANZANIA THE ECONOMIC SURVEY 2017 Produced by: Ministry of Finance and Planning DODOMA-TANZANIA July, 2018 Table of Contents ABBREVIATIONS AND ACRONYMS ......................................... xiii- xvii CHAPTER 1 ................................................................................................. 1 THE DOMESTIC ECONOMY .................................................................... 1 GDP Growth ............................................................................................. 1 Price Trends .............................................................................................. 7 Capital Formation ................................................................................... 35 CHAPTER 2 ............................................................................................... 37 MONEY AND FINANCIAL INSTITUTIONS ......................................... 37 Money Supply ......................................................................................... 37 The Trend of Credit to Central Government and Private Sector ............ 37 Banking Services .................................................................................... 38 Capital Markets and Securities Development ......................................... 37 Social Security Regulatory Authority (SSRA) ....................................... 39 National Social Security Fund (NSSF) ................................................... 40 GEPF Retirement Benefits Fund ............................................................ 41 LAPF Pension Fund ................................................................................ 42 PSPF Pension Fund ................................................................................. 42 PPF Pension Fund ................................................................................... 44 Workers Compesation Fund (WCF) ....................................................... 45 National Health Insurance Fund (NHIF) ................................................ 44 Tanzania Insurance Regulatory Authority (TIRA) ................................. 47 Trend of Mortgage Market in Tanzania .................................................. 48 Tanzania Agricultural Development Bank ............................................. 49 Tanzania Postal Bank .............................................................................. 49 SELF Microfinance Fund ....................................................................... 51 CHAPTER 3 ............................................................................................... 57 GOVERNMENT FINANCE ...................................................................... 57 Introduction ............................................................................................. 57 Domestic Revenue .................................................................................. 57 Grants and Concessional Loans .............................................................. 58 Domestic Borrowing ............................................................................... 59 Non-Concessional Borrowing ................................................................. 59 Expenditure ............................................................................................. 59 Government Debt Stock .......................................................................... 61 External Debt .......................................................................................... 62 Domestic Debt ................................................................................... 62-62 Debt Sustainability Analysis ................................................................... 63 CHAPTER 4 ............................................................................................... 69 EXTERNAL SECTOR ............................................................................... 69 Overall Balance of Payments .................................................................. 69 Foreign Reserves ..................................................................................... 69 Balance on Services ................................................................................ 69 Balance on Investment Receipts ............................................................. 71 Balance of Current Transfers .................................................................. 71 Current Account Balance ........................................................................ 71 The Value of Tanzania Shilling .............................................................. 71 CHAPTER 5 ............................................................................................... 72 THE STATE OF THE WORLD ECONOMY AND INTERNATIONAL ECONOMIC CO- OPERATION .............................................................................................. 72 World Economic Growth ........................................................................ 72 Inflation Trends ....................................................................................... 75 World Trade ....................................................................................... 75-75 The East African Community (EAC) ..................................................... 77 South African Development Community (SADC) ................................. 78 Africa Union (AU) .................................................................................. 79 CHAPTER 6 ............................................................................................... 80 HUMAN RESOURCES ............................................................................. 80 Population ............................................................................................... 80 Regional Population Distribution ........................................................... 80 Labour Force and Employment ......................................................... 81-81 CHAPTER 7 ............................................................................................... 87 PRIVATE SECTOR DEVELOPMENT ..................................................... 87 Investment in the Country ....................................................................... 87 Sectoral Distribution of Projects ............................................................. 87 Regional Distribution of Projects............................................................ 88 The Improvement of Business Environment .......................................... 88 Economic Empowerment ................................................................... 89-89 CHAPTER 8 ............................................................................................... 92 CROSS CUTTING ISSUES ....................................................................... 92 AIDS ....................................................................................................... 92 Environment ............................................................................................ 92 Gender ..................................................................................................... 93 Civil Security .......................................................................................... 94 National Identification Authority ............................................................ 95 Registration, Insolvency and Trusteeship Agency.................................. 95 CHAPTER 9 ............................................................................................... 97 STATE OF POVERTY AND HUMAN DEVELOPMENT ...................... 97 Introduction ............................................................................................. 97 Multidimensional Poverty Index............................................................. 97 Human Development .............................................................................. 98 CHAPTER 10 ........................................................................................... 103 TANZANIA MERCANTILE EXCHANGE ............................................ 103 Introduction ........................................................................................... 103 Operating the Mercantile Exchange ...................................................... 103 Electronic Mercantile Exchange System .............................................. 104 Warehouse Receipt System................................................................... 104 Settlement Bank System ....................................................................... 106 Commodity Contract Specification....................................................... 106 Challenges ............................................................................................. 107 CHAPTER 11 ........................................................................................... 110 AGRICULTURE ................................................................................ 1110 Food Crops Production ..................................................................... 110 Cash Crops Production ..................................................................... 110 Production of Oil Seeds .................................................................... 111 Horticultural Production ................................................................... 111 Investment in Agricultural Economic Activities .............................. 112 Price Trend and Crop Marketing