tanzania

Question 1

strengths

Answer 1

• lots of natural resources
• stable political environment
• good agriculture (exports coffee, tobacco)
• good tourism (zanzibar, mount kilimanjaro)
• infrastructure ($1.2 billion investment - dar es salaam to mwanza, rwanda, uganda + burundi) - new trade route for argicultural mining commodities
• not landlocked (access to indian ocean) - port of DAR (handles 90% of country cargo)
• financing of smes = 72/141

Question 2

weakness

Answer 2

• dependent on agriculture + raw materials (vulnerable to climate change/ price fluctuations) - account for 28% of gdp (2021)
• high poverty levels - 26 mill in extreme poverty (2022)
• infrastructure gap (lack of human capital to supervise projects
• 32.8% of population have access to electricity
• ranked 127/141 for domestic credit to private sector
• financing of smes
• skills gap % Unemployment ( young people lack technical skills for high paying jobs = causes unemployment and underemployment)

Question 3

exports

Answer 3

Gold ($5.05bn)
Refined Petroleum ($393m)
Dried Legumes ($352m)

Question 4

countries - export

Answer 4

India ($1.74bn)
UAE ($1.62bn)
Uganda ($1.35bn)

Question 5

imports

Answer 5

Refined Petroleum ($3.19bn)
Whear ($466m)
Tractors ($409m)

Question 6

countries - imports

Answer 6

China ($5.59bn)
India ($2.32bn)
UAE ($1.52bn)

Question 7

economic growth

Answer 7

5.9% is the annual growth rate

Question 8

inflation

Answer 8

3.1%

Question 9

current account

Answer 9

-3.7% of GDP

Question 10

budget deficit

Answer 10

46.9% of GDP (2023)

Question 11

unemployment

Answer 11

8.9% (December 2022)

Question 12

exemplar

Answer 12

IR = impac infrastructure investment, a crucial factor in the country’s economic growth —> improved infrastructure can boost exports of key commodities such as gold, coffee, and tobacco. Low IR = encourage borrowing + easier for govt to finance these large-scale projects = enhance trade efficiency + increase exports (improving current account)

EV- high IR = borrowing costs high = hard to finance infrastructure projects = economic growth (currently 5.9% annually). Tanzania already faces challenges in infrastructure development due to a lack of skilled labor and limited access to electricity (32.8% of the population). = High IR = discourage investment in infrastructure, widening the existing development gap. low IR supports investment, it may also lead to higher national debt (currently 46.9% of GDP) if borrowing is not managed effectively.

Question 13

interest rate

Answer 13

6%