Tanzania

Tanzania, known for its natural wonders, from Mt. Kilimanjaro to the Serengeti, borders the Indian Ocean between Kenya and Mozambique. Its land mass, including the islands of Mafia, Pemba, and Zanzibar, totals 550,557 sq. mi., which makes it the largest east African nation. It also borders war-torn Burundi, Democratic Republic of Congo, and Rwanda, and still hosts over 500,000 of their refugees. It is a diverse country, with over 120 ethnic tribes, and nearly equal representation on the mainland of those practicing Christianity, Islam, and indigenous beliefs.

Tanzania achieved independence from Britain in the early 1960s. Dar es Salaam is the capital and the largest city, and a major seaport for the Tanzania mainland and its landlocked neighbors, although Dodoma, located in the center of Tanzania, has been designated the legislative capital. Kiswahili is the official national language, while English is the official language of commerce, administration, and higher education. The currency, the Tanzanian shilling, had an exchange rate of 1,255 TZS to one U.S. dollar in 2007.

Tanzania has tremendous potential for robust economic growth because of its stability in an unstable region, 885 miles of coastline, and a wealth of resources, including hydropower, tin, phosphates, iron ore, coal, [Page 1539]diamonds, gemstones, gold, natural gas, nickel, and wildlife. Its 2006 real Gross Domestic Product (GDP) of $11.98 billion grew at a rate of 6.2 percent, compared to 5.5 percent for Africa and 5.4 percent for the rest of the world. The inflation rate of 7.3 percent (2006) also compared favorably to Africa's 9.5 percent. Although only 4 percent of the land is suitable for farming, the economy depends heavily on agriculture, which accounts for 45 percent of GDP, provides 85 percent of exports, and employs 80 percent of the workforce. Agricultural products include coffee, sisal, tea, cotton, pyrethrum, cashew nuts, tobacco, cloves, corn, wheat, grains, cassava, fruits, vegetables, and livestock.

Tanzanian men hoe rice paddies on a Tanzania Social Action Fund (TASAF)-funded irrigation project in the Mtwango District. The economy of Tanzania relies heavily on agriculture, which makes up 45 percent of its GDP.

Accounting for less than 10 percent of GDP, Tanzania's industrial sector is one of the smallest in Africa and is hindered by poor infrastructure in water and electricity supply systems. The main industrial activities (90 percent) are dominated by small and medium-sized enterprises specializing in food processing, including dairy products, meat packing, preserving fruits and vegetables, textile and apparel production, leather tanning, and plastics. A few larger factories (10 percent) manufacture cement, rolled steel, corrugated iron, aluminum sheets, cigarettes, beer and bottling beverages, fruit juices, and mineral water. In general, Tanzania's manufacturing sector targets primarily the domestic market with limited exports of manufactured goods.

The largest service industry is tourism because of the country's concentration of wild animals and spectacular and diverse landscape, including the islands with their beaches, and the highlands, which include Mt. Kilimanjaro, Africa's highest mountain. Tanzania features famous national parks, game reserves, and the Olduvai Gorge, where the Leakeys discovered footprints estimated to be over 3 million years old.

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