Tanzania unfolds in the heart of East Africa, covering a total area of 947.300 square kilometers. It is a territory that impresses not only with its landscapes but also with its population, boasting 66,6 million people , which translates to a moderate density of about 70 inhabitants per square kilometer. With Dodoma as its administrative center and the Tanzanian shilling as its official currency, this country presents a complex mosaic of challenges and opportunities.
Looking at its current economic situation, we find that it ranks 84th globally in terms of Gross Domestic Product. However, the daily reality is harsher, as GDP per capita is around €1.091 , placing its citizens 170th in the global ranking. This means that, essentially, the vast majority of people live on the bare minimum, facing a rather precarious standard of living compared to the rest of the world.
Financial Situation and Business Climate
On a macroeconomic level, the country carries a considerable financial burden. By 2023, its public debt had reached €34.637 billion (approximately $37.463 billion), representing 47,8% of its GDP . At a more individual level, each inhabitant carries a per capita debt of approximately €520. On the other hand, inflation appears to be under control, with the annual CPI growth rate projected at 4% by June 2026.
For anyone considering starting a business there, the outlook is rather challenging. Tanzania ranks 141st in the Doing Business ranking, indicating that conducting business can be a headache due to bureaucracy and a lack of support. Adding to this is the perception of corruption in the public sector, where the country scored 40 points, placing it 87th out of 180 nations evaluated.
The Economic Engine: Agriculture and Natural Resources
The foundation of the entire production system is undoubtedly agriculture. Although only 4% of the land is suitable for cultivation, this sector employs 90% of the workforce and generates 85% of exports. Regarding food, crops such as corn, cassava, rice, sorghum, millet, wheat, bananas, and sweet potatoes predominate. Furthermore, it is worth noting that the islands of Zanzibar and Pemba are the world's leading suppliers of cloves.
On a commercial level, the country exports coffee, tobacco, tea, cotton, sisal, cashews , pepper, and honey. But it's not all agriculture; Tanzania's subsoil is a veritable gold mine, literally. The country is very rich in diamonds and gold , in addition to possessing deposits of salt, lead, iron, coal, mica, tin, tungsten, magnesite, phosphates, and kaolin. We mustn't forget that the Rufiji Delta holds significant natural gas reserves that could be a game-changer for the economy.
The industry has historically focused on processing raw materials such as coconut fiber, jute, kapok, grain, and coffee. However, since the 70s, efforts have been made to diversify activities, establishing cement plants and vehicle assembly facilities . Regarding energy, the country is heavily invested in renewables, with 91% of its electricity coming from hydroelectric plants, the Pangani River being the most significant source.
Social Challenges, Education and Health
The social situation is, sadly, quite dire. The Human Development Index (HDI) places Tanzanians among the people with the lowest quality of life on the planet. A heartbreaking example is that more than a million children under the age of 17 are orphaned due to HIV/AIDS, and there is a vast number of children living on the streets without any protection or access to education.
In the educational sphere, although primary education is compulsory and free until the age of 15, the reality is that there is a shortage of classrooms and teachers . While primary school enrollment is high (around 80%), the leap to higher education is a chasm: only 15% of boys and 12% of girls manage to reach university. Furthermore, those with disabilities suffer terrible discrimination due to cultural prejudices.
Public health is also at risk. Only 60% of the population has access to safe drinking water, and it is estimated that 70% of hospital-acquired illnesses are directly related to a lack of sanitation and clean water. Added to this is the problem of human capital; the HCI index warns that health risks and inadequate education severely hinder the productivity of future generations.
Labor Rights and Child Labor
The labor market is another critical issue. Because education is not always readily available, many children begin working at a very young age. Although child labor is prohibited by law, there is no legal minimum working age, which allows 24% of children under 15 to work as domestic helpers, tending livestock, or in agriculture under their parents' supervision.
Trade union rights remain a challenge. Although it is legal to form unions, police officers and essential service workers are prohibited from doing so. Unfair dismissals for union activity have been reported , and while forced labor is illegal, there are cases of people being forced to work for free to avoid retaliation from their employers. For all these reasons, the ITUC has categorized Tanzania as a country with systematic violations of labor rights.
Tanzania is a country of profound contrasts, where immense wealth in natural resources and enormous agricultural potential clash head-on with extreme poverty, an insufficient education system, and serious deficiencies in health infrastructure and basic human rights.