THE ECONOMIC SURVEY 2009 -press new - Tanzania Embassy

1 THE UNITED REPUBLIC OF Tanzania . _____. THE ECONOMIC SURVEY 2009 . Produced by: The Ministry of Finance and ECONOMIC Affairs DAR ES SALAAM Tanzania . June, 2010. Printed by KIUTA Dar es Salaam - Tanzania Table of Contents LIST OF TABLES .. i ABBREVIATIONS AND vii IMPORTANT ECONOMIC EVENTS IN 2009 .. x CHAPTER 1 .. 1 THE DOMESTIC ECONOMY .. 1 ECONOMIC Growth .. 1 Price Trend .. 5 Capital Formation .. 7 CHAPTER 2 .. 38 Trend in World Trade .. 39 The State of Africa Economy .. 40 International ECONOMIC Co-operation .. 42 East African Community (EAC) .. 42 African Union (AU) .. 43 Joint Permanent Commission (JPC) .. 44 Southern Africa Development Cooperation (SADC) .. 44 Africa Peer Review Mechanism (APRM) .. 45 CHAPTER 3 .. 46 EXTERNAL SECTOR .. 46 Introduction .. 46 Merchandise Exports.

2 46 Traditional Exports .. 46 Non-Traditional Exports .. 48 TRADE IN SERVICE .. 52 Service Receipts .. 52 IMPORTS .. 52 Capital Goods .. 52 Intermediate Goods .. 53 Consumer Goods .. 53 SERVICES PAYMENTS .. 53 TRENDS IN SELECTED REGIONAL AND BILATERAL TRADE .. 54 BALANCE OF 58 Balance of Merchandise Trade .. 58 Balance on Services .. 59 Balance on Investment Receipts .. 59 Balance on Current Transfers .. 59 Balance on Current Accounts .. 59 Balance on Capital 60 Balance on Investment Payments .. 60 Overall Balance of Payments .. 60 Foreign Currency Reserves .. 60 Exchange Rate .. 60 CHAPTER 4 .. 76 GOVERNMENT FINANCE .. 76 Domestic Revenue .. 76 Grants and Loans .. 77 78 Implementation status of the Rescue 78 Sectoral Allocation of Government Budget .. 80 Public Debt.

3 80 External Debt .. 80 Domestic Debt .. 81 CHAPTER 5 .. 86 MONEY AND FINANCIAL INSTITUTIONS .. 86 Money Supply and Domestic Credit .. 86 Commercial Banks' Credit to Various ECONOMIC Sectors .. 86 Deposits in Commercial Banks .. 87 Trends in Interest Rates .. 87 Parastatal Pension Fund (PPF) .. 88 National Social Security Fund (NSSF).. 88 Public Service Pension Fund (PSPF) .. 89 Government Employees Provident Fund (GEPF) .. 90 Dar es Salaam Stock Exchange (DSE) .. 91 Tanzania Postal Bank (TPB) .. 92 CHAPTER 6 .. 100 HUMAN RESOURCES .. 100 Population and Development .. 100 Labour Force and Employment .. 101 Unemployment .. 102 CHAPTER 7 .. 105 PRIVATE SECTOR DEVELOPMENT .. 105 Investment in the Country .. 105 Foreign Direct Investment .. 106 Improvements of Business 107 ECONOMIC EMPOWERMENT.

4 107 Mwananchi Empowerment Fund .. 107 Access to Credit .. 108 CHAPTER 8 .. 110 CROSS CUTTING 110 110 Environment .. 110 Good Governance .. 112 Gender .. 112 iii Public Safety .. 113 CHAPTER 9 .. 114 REVIEW OF THE IMPLEMENTATION OF NATIONAL STRATEGY. FOR GROWTH AND REDUCTION OF POVERTY .. 114 Introduction .. 114 Growth and Reduction of Income Poverty .. 114 Quality of Life and Social Well-being .. 115 Governance and Accountability .. 115 CHAPTER 10 .. 118 AGRICULTURE AND COOPERATIVES .. 118 Food crops .. 118 Cash 118 Production of Oilseeds .. 119 Investment in Agriculture .. 120 Irrigation Farming .. 120 Extension Services and Training .. 121 Research Activities .. 121 Agriculture Input Trust 122 LIVESTOCK .. 122 Livestock Production and its Products .. 122 COOPERATIVES AND MARKETING.

5 124 124 Source: Ministry of Agriculture and Cooperatives.. 125 The trend of crop prices .. 125 CHAPTER 11 .. 135 NATURAL RESOURCES AND TOURISM .. 135 Growth 135 Forestry and beekeeping .. 135 Wildlife .. 137 Fishing .. 138 139 Archives and Antiquities .. 142 CHAPTER 12 .. 156 MINING .. 156 Growth 156 Mineral 156 Mining and Mineral Sales .. 156 Diamond .. 156 Gold .. 156 Gemstones .. 157 157 The Value of Mineral Exports .. 157 CHAPTER 13 .. 160 iv MANUFACTURING AND INTERNAL TRADE .. 160 Growth .. 160 Small Enterprises .. 160 Production Costs .. 160 Internal trade .. 161 Dar es Salaam International Trade Fair (DITF) .. 161 CHAPTER 14 .. 170 CONSTRUCTION AND LAND DEVELOPMENT .. 170 Construction .. 170 Road Network .. 170 Roads and Bridges Maintenance .. 171 Control of Cargo Weight on the Roads.

6 171 Road Board Fund .. 171 Contractors Registration Board .. 171 Engineers Registration Board .. 172 Architects and Quantity Surveyors Registration Board .. 173 The National Building Council .. 173 Tanzania Building Agency .. 173 LAND DEVELOPMENT .. 173 House Development .. 177 CHAPTER 15 .. 179 TRANSPORT AND COMMUNICATION .. 179 Growth .. 179 TRANSPORT .. 179 Urban Commuter Services .. 179 Road Transport .. 180 Usafiri Dar es Salaam (UDA).. 181 Railway Transport .. 181 Tanzania Railways Limited (TRL) .. 181 Railways Holding Corporation (RAHCO) .. 182 Tanzania - Zambia Railway Authority (TAZARA) .. 182 Air Transport .. 182 Water Transport .. 183 Marine Transport .. 184 SINOTASHIP .. 185 Lake 186 The Marine Service Company Limited (MSCL).. 186 COMMUNICATION SERVICES.

7 186 Tanzania Posts Corporation (TPC) .. 186 Tanzania Communication Regulatory Authority (TCRA) .. 188 INFORMATION AND COMMUNICATION TECHNOLOGY (ICT).. 189 The National ICT Infrastructure Backbone .. 189 v Tele-centres .. 189 National Physical Address and Postal Codes .. 190 CHAPTER 16 .. 198 ENERGY .. 198 Growth 198 Electricity .. 198 199 Renewable Energy .. 199 Solar Power .. 199 Geo thermal and Bio Gas .. 199 CHAPTER 17 .. 204 WATER .. 204 Introduction .. 204 Rural Water Supply .. 205 Urban Water Supply .. 205 CHAPTER 18 .. 209 EDUCATION AND TRAINING .. 209 Pre Primary Education .. 209 Primary Education .. 209 Secondary Education .. 210 Teachers' Education .. 210 Adult Education .. 211 Schools and Colleges' Inspection .. 211 Technical Education .. 212 Vocational Training.

8 213 Higher Education .. 213 CHAPTER 19 .. 226 HEALTH .. 226 Introduction .. 226 Health Facilities .. 226 Community Health Education .. 226 Maternal and Child Health .. 226 Food and Nutrition .. 227 Social Welfare Services .. 228 CHAPTER 20 .. 235 COMMUNITY DEVELOPMENT .. 235 Folk Development Colleges .. 235 Community Development Colleges .. 235 Gender and Women Development .. 236 Child Development .. 236 Coordination of Non-Governmental Organisations (NGOs) .. 236 vi LIST OF TABLES. Table A: Basic ECONOMIC Statistics Statistics Tanzania Mainland .. Table 1: Gross Domestic Product by Kind of ECONOMIC Activity, at current prices .. Table 1A: Gross Domestic Product (Monetary & non-Monetary GDPfc) by Kind of ECONOMIC Activity, at current prices .. Table 2: Sectoral Contribution to Overall GDP at factor cost at current prices.

9 Table 2A: Sectoral Contribution to Overall GDP (%) Monetary &. Non-Monetary, at current Table 2B: Gross Domestic Product and Expenditure, at current market prices .. Table 3: Gross Domestic Product (GDPfc) by Kind of ECONOMIC Activity, at constant2001 prices .. Table 3A: Gross Domestic Product (Monetary & non-Monetary). by Kind of ECONOMIC Activity, at constant 1992 prices .. Table 4: Gross Domestic Product (GDPfc) by Kind of ECONOMIC Activity - Percentage Growth Rates, at constant 1992 prices .. Table 4A: Gross Domestic Product (Monetary & non-Monetary GDPfc) by Kind of ECONOMIC Activity - Percentage Growth Rates, at constant 2001 prices .. Table 4B: Sectoral Contribution to Overall GDP (%). at constant 2001 prices .. Table 4C: Sectoral Contribution to Overall GDP (%) - Monetary &.

10 Non-Monetary at constant 2001 prices .. i Table 4D: Gross Domestic Product and Expenditure, at constant 2001. market prices .. Table 5: Capital Formation by Type of Assets, at current prices .. Table 6: Capital Formation by Type of Assets, at constant 2001. prices .. Table 7: Capital Formation by Public and Private Sectors, at current price .. Table 8: Index of Retail Prices of goods consumed by minimum wage earners in Dar es Salaam (2001=100).. Table 9: Index of Retail Prices of goods consumed by minimum wage earners in Dar es Salaam (2001 = 100) .. Table 10: Cost of Living Index of goods and services consumed by middle grade wage earners in Dar es Salaam (2001=100).. Table 11: Cost of Living Index of goods and services consumed by middle grade wage earners in Dar es Salaam (2001=100).