Economic Environment Tanzania is one of the poorest countries in the world.

Tanzania is among the bottom 10% of the world economies in terms of per capita income. The country is mainly dependent on agricultural productivity and this sector contributes to about 2/3 of the total GDP. The main Natural resource found here are Hydroelectric potential, coal, Diamonds, nickel, iron, wildlife, gemstones, gold, natural gas, product, fisheries. The estimate is that areal GDP growth rate will be around 7.3% in 2012. Some Economic Indicators INDICATORS GDP (purchasing power parity): GDP (official exchange rate): GDP - real growth rate: GDP - per capita: GDP - composition by sector: 2011 est. $63.44 billion $23.2 billion 6.1% $1,500 agriculture: 27.8% industry: 24.2% services: 48% Labor force: Labor force - by occupation: Population below poverty line: Taxes and other revenues: 24.06 million agriculture: 80% 36% (2002 est.) 21.3% of GDP crude oil, potential, forest

Doing Business 2011 ranked Tanzania 128th out of 183 economies. The overall score has declined by 3 points this year, due to lower improvements for five indicators.

Out of 33 sectors covered by the Investing across Sectors indicators, 26 are fully open to foreign equity ownership in Tanzania it also includes manufacturing and primary industries. The country also imposes foreign equity ownership restrictions on a number of

service sectors. For example, Foreign capital participation in the telecommunications sector is limited to a maximum of 65%. The media industry is subject to limits on foreign ownership as well While the Broadcasting Services Act allows a maximum of 49% foreign ownership of Tanzanian TV stations. Moreover foreign capital participation in local nationwide newspapers is prohibited There is also limitation in insurance industry

It takes 14 procedures and 38 days to establish a foreign-owned limited liability company in Tanzania.

Table showing percentage FDI investment in Tanzania MINING, MINING, OIL AND GAS AGRICULTURE AND FORESTRY LIGHT MANUFACTURING TELECOMMUNICATIONS ELECTRICITY 100 100 100 65 100

BANKING INSURANCE TRANSPORTATION MEDIA SECTOR GROUP 1 TOURISM,RETAIL) SECTOR GROUP 2

100 66 100 24.5 (CONSTR., 100

(HEALTH 100

CARE, WASTE MGT.)

The Major economic sectors: of Tanzania are agriculture, trade and tourism, financial and business services, mining and manufacturing.

Various Agriculture products: are bananas, fruits, vegetables, tea, cotton, pyrethrum, cashew nuts, tobacco, cloves, corn, wheat, cassava (tapioca), cattle, sheep, goats. Industries: sector shoes, apparel, wood products, fertilizer, diamond, gold, and iron mining, salt, soda ash; cement, oil refining.. Major export commodities are gold, coffee, cashew nuts, manufactures, cotton. Tanzanians major export partners are China 15.6%, India 11%, Japan 6.1%, UAE 5%, Germany 4%. Major Import partners are China 17.3%, India 15.4%, South Africa 7.9%, Kenya 7%, UAE 4.8%, Japan 4.2%. Currency: Tanzanian Shilling (TZS) Exchange rate: Tanzanian shillings (TZS) per US dollar - 1,590 as on 7 Feb 2012 BUSINESS TAXES Corporate income tax: 30%

Value added tax (VAT): 20%

Some facts Ease of... Doing Business (Overall Ranking) Starting a Business Dealing with Construction Permits Registering Property Getting Credit Protecting Investors Paying Taxes Trading Across Borders Enforcing Contracts Resolving Insolvency 158 98 97 129 92 155 96 93 123 115 -3 -2 -4 -6 23 176 177 1 DB 2012 rank 127 123 DB 2011 rank 125 122 Change in rank -2 -1

36

33

-3

122

120

-2

http://www.tzonline.org/pdf/nationalinvestmentpromotionpolicy.pdf http://www.tanzaniainvest.com/tanzania-economy/profiles/tanzania-economy http://rru.worldbank.org/BESnapshots/Tanzania/default.aspx http://www.theodora.com/wfbcurrent/tanzania/tanzania_economy.html