Tanzania's GDP from the manufacturing sector

Tanzania's GDP from the manufacturing sector over recent years and forecasts for the near future

1. Current and Recent Performance:

• Q3 2023: Tanzania's GDP from Manufacturing reached a record high of 3,258,719.89 TZS million.
• Q4 2023: The GDP from Manufacturing slightly decreased to 3,209,649.95 TZS million. This decline could be due to various factors, such as seasonal changes, external economic pressures, or shifts in domestic production levels.

2. Historical Performance:

• 2005-2023 Average: Over the past 18 years, the average GDP from Manufacturing in Tanzania was 1,716,435.69 TZS million. This indicates significant growth in the manufacturing sector, as the latest figures are almost double this long-term average.
• All-Time High and Low:
  • The all-time high of 3,258,719.89 TZS million was recorded in Q3 2023.
  • The all-time low of 373,896.38 TZS million was observed in Q1 2005, which reflects how much the sector has grown since then.

3. Forecasts:

• End of Current Quarter (2024): TICGL macro models and analysts expect the GDP from Manufacturing to increase to 3,454,243.00 TZS million. This suggests a positive outlook, likely driven by factors such as increased industrial activity, investment in manufacturing infrastructure, and favorable economic policies.
• 2025 Forecast: The GDP from Manufacturing is projected to continue its upward trend, reaching approximately 3,613,167.00 TZS million.
• 2026 Forecast: The sector is expected to grow further to 3,833,570.00 TZS million. This projection reflects confidence in the ongoing development of Tanzania's manufacturing capabilities and its potential contribution to overall economic growth.

4. Contextual Analysis:

• The steady growth in Tanzania's manufacturing GDP highlights the sector's role in the country's economic diversification efforts. The manufacturing sector's expansion is likely supported by government policies aimed at industrialization, increased foreign and domestic investment, and efforts to boost exports.
• The slight dip in Q4 2023 may be a normal fluctuation, but the overall trend points to robust growth, supported by economic reforms and development initiatives.

5. Source and Reliability:

• The data is sourced from the National Bureau of Statistics (NBS) - Tanzania, which is the official body for national statistics, ensuring the reliability of the historical data.
• The projections come from TICGL macro models and reflect expert analysis based on current economic trends, providing a credible outlook for the sector.

Tanzania's GDP from Manufacturing offers several insights into the country's economic development, particularly in terms of its industrialization efforts and broader economic policies

The growth in Tanzania's GDP from Manufacturing signifies progress towards industrialization and economic transformation, which are critical elements of Tanzania's development strategy. As the country moves towards its Vision 2025, the manufacturing sector is playing a vital role in job creation, income growth, economic diversification, and investment attraction, all of which contribute to the broader goal of achieving sustainable economic development. However, continued focus on addressing infrastructural challenges, enhancing productivity, and integrating into regional and global trade networks will be necessary for further success.

1. Industrialization as a Key Driver of Growth:

• The consistent increase in manufacturing GDP, from an all-time low of 373,896.38 TZS million in 2005 to 3,258,719.89 TZS million in 2023, highlights Tanzania's progress in industrializing its economy. This is in line with the country's development goals, such as the Tanzania Development Vision 2025, which emphasizes the need to transform from an agriculture-based to an industry-based economy.
• The growth trajectory of the manufacturing sector indicates that Tanzania is steadily moving towards these industrialization targets. This is vital for reducing reliance on raw material exports and promoting value-added products.

2. Positive Economic Outlook and Stability:

• The projected increase in manufacturing GDP to 3,454,243.00 TZS million by the end of 2024 and further growth in 2025 and 2026 suggests a positive outlook for Tanzania's economy. It demonstrates economic stability and expansion, particularly in the industrial sector, which can help create jobs, reduce poverty, and drive overall economic growth.
• Economic diversification is evident, as the government has successfully moved away from overdependence on traditional sectors such as agriculture and mining. The growth of manufacturing provides a buffer against fluctuations in global commodity prices, enhancing economic resilience.

3. Impact on Employment and Incomes:

• The expansion of the manufacturing sector likely leads to increased job creation, especially in urban areas where industries are located. More jobs in manufacturing can help absorb the growing labor force, including youth, which is critical for addressing unemployment.
• Higher production in manufacturing also translates into better wages and incomes, leading to improved living standards for many Tanzanians, thus contributing to poverty reduction efforts.

4. Attracting Investment and Technological Advancements:

• The growth of the manufacturing sector may attract both domestic and foreign direct investment (FDI). Investors tend to be drawn to countries with a strong industrial base due to the opportunities for producing goods at scale and exporting them to regional and international markets.
• Increased investments often come with the transfer of technology and knowledge, which can further modernize Tanzania’s industrial capacities, making the sector more competitive globally.

5. Infrastructure Development:

• The rising GDP in manufacturing is likely supported by improvements in infrastructure, including transport, energy, and industrial zones. This development supports better logistics, lowers production costs, and enhances productivity.
• Port infrastructure development, such as the expansion of the Dar es Salaam Port, is essential to Tanzania’s manufacturing growth, allowing for the efficient export of goods and import of industrial inputs.

6. Government Policies and Reforms:

• The manufacturing sector's growth reflects effective government policies aimed at enhancing the business environment, such as simplifying regulations for industrial operations, offering incentives for investors, and promoting public-private partnerships (PPPs).
• Tanzania’s focus on improving the ease of doing business through regulatory reforms is likely to continue driving industrial growth, contributing to the long-term sustainability of the economy.

7. Regional and Global Trade Integration:

• Tanzania’s growing manufacturing sector positions it to become a regional manufacturing hub within East Africa. The country's membership in regional trade blocs, such as the East African Community (EAC) and the Southern African Development Community (SADC), provides access to larger markets, boosting demand for Tanzanian manufactured goods.
• The country’s participation in global value chains can be enhanced through continued growth in manufacturing, enabling it to compete in international markets and capitalize on trade agreements.

8. Challenges and Areas for Improvement:

• Despite the positive growth, challenges such as energy reliability, skilled labor shortages, and access to finance for small and medium-sized enterprises (SMEs) in manufacturing need to be addressed. Overcoming these barriers will be crucial for sustaining long-term growth in the sector.
• There is also a need for a balanced growth that includes other sectors like agriculture, ensuring that manufacturing growth is inclusive and beneficial for the wider economy.

Electricity access is a critical factor in Tanzania's economic development

Access to electricity is a critical issue in many African countries, including Tanzania. The lack of reliable electricity has far-reaching implications for economic growth, education, healthcare, and overall quality of life. Focusing on Tanzania, comparing it with other African nations struggling with electricity access.

While Tanzania has made strides in making electricity more affordable through government subsidies, the challenge of extending access to the entire population remains daunting. Continued investment in infrastructure, coupled with targeted policies to increase affordability and reach, will be essential to reduce the number of people living without electricity

1. Population Without Access to Electricity in Tanzania

Tanzania ranks fourth in Africa for the largest population lacking access to electricity:

• Population without electricity: 36 million people
• Total population: Approximately 64 million (as of 2023 estimates)
• Percentage without access: Around 56% of the population

2. Comparative Analysis of Electricity Access in Africa

The top 10 African countries with the largest populations lacking access to electricity, in order, are:

3. Electricity Costs and Government Subsidies in Tanzania

Tanzania's government has implemented subsidies to ensure that electricity remains affordable, despite the high number of people without access.

• Subsidized electricity rate: Sh100 per unit for ordinary users for up to 75 units per month.
• Unsubsidized rate: Sh292 per unit, meaning the subsidy cuts the cost by nearly 66%.
• Regional comparison: Tanzania has the cheapest electricity tariff in East Africa due to these subsidies. Without the subsidy, consumers would pay Sh320 per unit.

4. Challenges in Expanding Electricity Access

Despite having one of the lowest electricity tariffs in East Africa, Tanzania faces significant challenges in expanding electricity access, including:

• High infrastructure costs: Building the necessary infrastructure to reach remote and rural areas is expensive.
• Economic constraints: Many Tanzanians, particularly in rural areas, have low incomes, making it difficult to afford even subsidized electricity.
• Investment shortfalls: Historical underinvestment in the energy sector has left large parts of the country without electricity.

5. Tanzania's Future Plans

Tanzania aims to address its electricity challenges through several initiatives:

• Julius Nyerere Hydro Power Project: Expected to significantly increase electricity production and reduce costs further.
• Diversification: Plans to become a leading manufacturer of electrical equipment, although this is more focused on economic diversification rather than directly improving access to electricity.

6. Global and Regional Implications

The lack of electricity in Tanzania and similar African countries has global implications. It hampers development, limits educational opportunities, affects health services, and restricts economic growth. Globally, over 600 million people in Africa are without access to electricity, with Tanzania contributing significantly to this figure.

Electricity access in Tanzania, significant challenges and implications for the country's economic development

Electricity access is a critical factor in Tanzania's economic development. The current lack of access for a significant portion of the population poses major challenges to industrialization, SME growth, education, healthcare, and overall economic equality. However, addressing these challenges through targeted investments in infrastructure, energy diversification, and policy reforms could unlock substantial economic benefits, driving Tanzania toward sustainable growth and development.

1. Barrier to Industrialization and Economic Growth

• Limited Industrial Expansion: The lack of electricity access for 36 million Tanzanians hampers industrialization efforts. Reliable electricity is essential for operating machinery, manufacturing goods, and supporting industries like mining, agriculture, and processing. Without sufficient electricity, industries cannot operate efficiently, leading to lower productivity and economic output.
• Investment Deterrent: Potential investors may be discouraged by the unreliable power supply, as consistent electricity is a key factor in business operations. The cost of alternative power sources, like generators, increases operational costs, making Tanzania less attractive for foreign and local investments.

2. Impact on Small and Medium Enterprises (SMEs)

• Business Operations: SMEs, which are critical to Tanzania’s economy, particularly in the informal sector, struggle without access to reliable electricity. Limited power availability can restrict operating hours, increase production costs, and reduce competitiveness. This constraint limits their ability to scale, innovate, and contribute meaningfully to economic growth.
• Digital Economy Constraints: As Tanzania moves towards digitalization, the lack of electricity access poses a significant barrier to adopting digital tools and platforms, especially in rural areas. This restricts the growth of e-commerce, digital services, and financial inclusion, which are crucial for modern economic development.

3. Educational and Health Sector Impacts

• Education: Limited electricity affects educational facilities, particularly in rural areas, where students may lack proper lighting for evening studies, and schools may lack access to digital learning tools. This gap can lead to lower educational outcomes, ultimately impacting the country’s human capital development.
• Healthcare: The health sector is similarly affected, with clinics and hospitals in areas lacking electricity unable to provide essential services, like refrigeration for vaccines or operating medical equipment. This limitation affects public health, productivity, and economic potential as a healthy population is vital for economic development.

4. Urban-Rural Disparities

• Development Imbalance: The disparity in electricity access between urban and rural areas exacerbates economic inequality. Urban areas, which are more likely to have electricity, benefit from economic opportunities and infrastructure, while rural areas lag, contributing to uneven economic development across the country.

5. Potential Economic Gains from Electrification

• Increased Productivity: Expanding electricity access could lead to significant productivity gains in agriculture, manufacturing, and services. Electrification would enable more efficient irrigation, processing of agricultural products, and extension of working hours in various sectors, leading to higher economic output.
• Job Creation: Infrastructure development required for expanding electricity access can create jobs, both in construction and in maintenance. Additionally, increased electricity access can spur the growth of new businesses and industries, further contributing to job creation and economic diversification.

6. Energy Sector's Role in Economic Diversification

• Hydropower and Renewables: Tanzania's focus on projects like the Julius Nyerere Hydro Power Project indicates a potential shift towards using the energy sector as a driver of economic diversification. Reliable and affordable electricity from such projects could support the growth of energy-intensive industries and help the country reduce its reliance on traditional sectors like agriculture.
• Manufacturing Electrical Equipment: Plans to become a leading manufacturer of electrical equipment could boost industrialization, create jobs, and stimulate exports, contributing positively to economic growth.

7. Government Policy and Economic Stability

• Subsidy Impact: While government subsidies make electricity affordable, they also represent a significant financial commitment. If not managed properly, these subsidies could strain public finances, affecting economic stability. However, if the subsidies successfully stimulate economic activities and broaden the tax base, they could be justified as a strategic investment in economic development.

Katika World Giving Index ya mwaka 2023, Tanzania inashika nafasi ya 117 kati ya nchi 142 duniani, ikiwa na alama ya World Giving Index ya 30. Nafasi ya Tanzania katika World Giving Index inaonyesha kuwa kuna nafasi ya kuboresha, hasa katika kukuza utamaduni wa kujitolea na kusaidiana katika jamii. Ikilinganishwa na majirani zake wa Afrika Mashariki, hususan Kenya, Tanzania inashika nafasi ya chini zaidi katika ukarimu, kama inavyopimwa kwa kusaidia wageni, kutoa michango ya fedha, na kujitolea muda.

Nafasi ya Tanzania katika Afrika Mashariki:

• Tanzania inashika nafasi ya chini ikilinganishwa na majirani zake wa Afrika Mashariki.
  • Kenya: Inashika nafasi ya 3 duniani, ikiwa na alama ya World Giving Index ya 60. Katika Kenya, 76% ya watu wazima walisaidia mgeni, 53% walitoa michango ya fedha, na 51% walijitolea muda wao.
  • Uganda: Inashika nafasi ya 30 duniani, ikiwa na alama ya 46. Katika Uganda, 70% ya watu wazima walisaidia mgeni, 32% walitoa michango ya fedha, na 36% walijitolea muda.
  • Rwanda: Haijatajwa maalum katika nafasi za juu au za chini, ikionyesha kuwa iko katika kiwango cha kati.
  • Tanzania: 46% ya watu wazima walisaidia mgeni, 33% walitoa michango ya fedha, na 12% walijitolea muda.

Nafasi ya Tanzania katika Afrika:

• Tanzania iko katika nusu ya chini ya viwango miongoni mwa nchi za Afrika.
  • Kenya (nafasi ya 3 duniani, ya kwanza Afrika): Alama ya 60.
  • Liberia (nafasi ya 4 duniani, ya pili Afrika): Alama ya 58.
  • Nigeria (nafasi ya 9 duniani, ya tatu Afrika): Alama ya 53.
  • Tanzania (nafasi ya 117 duniani, chini miongoni mwa mataifa ya Afrika): Alama ya 30.

Takwimu za Kulinganisha

Kusaidia Mgeni: Katika kipengele cha kusaidia mgeni, Kenya inajitokeza kwa 76% ya watu wazima kuripoti kuwa walimsaidia mtu ambaye hawamjui mnamo 2022. Kiwango hiki cha juu cha ushiriki kinaonyesha hisia kali ya jamii na utayari wa kutoa msaada wa haraka kwa wengine, hata nje ya mzunguko wa kijamii. Uganda inafuata kwa karibu na 70% ya watu wazima wakisaidia wageni, ikionyesha mwelekeo sawa wa kitamaduni kuelekea upendo wa kusaidia wengine. Kwa upande mwingine, Tanzania inabaki nyuma, na ni 46% tu ya watu wazima wanaojihusisha na tabia hii. Pengo hili kubwa linaashiria kwamba ingawa Watanzania wanashiriki katika kusaidia wengine, utamaduni huu ni mdogo ikilinganishwa na majirani zao wa Afrika Mashariki.

Kutoa Michango ya Fedha: Linapokuja suala la kutoa michango ya fedha, Kenya inaongoza tena kwa 53% ya watu wazima kuchangia kifedha kwa sababu za hisani. Hii inaonyesha utamaduni thabiti wa utoaji wa fedha, ambao unaweza kuhusishwa na mila kali za philanthropy au mifumo ya usaidizi wa jamii nchini Kenya. Tanzania na Uganda zinaonyesha viwango vya ushiriki vinavyofanana katika eneo hili, na 33% na 32% ya watu wazima wakitoa michango ya fedha, mtawalia. Takwimu hizi zinaashiria kwamba ingawa utoaji wa fedha upo katika nchi zote mbili, si wa kasi kama ilivyo nchini Kenya. Karibu usawa kati ya Uganda na Tanzania katika kipengele hiki kinaashiria kwamba sababu za kiuchumi au mitazamo ya kitamaduni kuhusu fedha zinaweza kuathiri tabia za kutoa michango kwa namna sawa katika mataifa haya.

Kujitolea Muda: Kujitolea muda ni ambapo tofauti kubwa zinajitokeza. Nchini Kenya, 51% ya watu wazima wameripoti kujitolea muda wao kwa shirika, wakionyesha kujitolea kwa kina kwa huduma za kijamii na ushiriki wa kiraia. Uganda, ingawa iko chini, bado inashikilia kiwango kikubwa cha ushiriki na 36% ya watu wazima wakijitolea muda wao. Kwa tofauti kubwa, kiwango cha Tanzania ni cha chini zaidi, na ni 12% tu ya watu wazima wanajihusisha katika kujitolea. Pengo hili kubwa linaashiria kuwa kujitolea si sehemu muhimu ya jamii ya Kitanzania ikilinganishwa na majirani zake, jambo ambalo linaweza kutokana na sababu mbalimbali ikiwa ni pamoja na vikwazo vya kiuchumi, ukosefu wa fursa, au maadili tofauti ya kitamaduni yanayohusiana na muda na ushiriki wa jamii.

Mambo Muhimu

• Kenya inajitokeza katika Afrika Mashariki na kote barani Afrika, ikiwa juu sana duniani na kuongoza katika kategoria mbalimbali za ukarimu.
• Tanzania inabaki nyuma, hasa katika kujitolea muda, ambapo ni 12% tu ya watu wazima walioshiriki, ikilinganishwa na 51% nchini Kenya. Hii inaashiria pengo kubwa la kujitolea nchini Tanzania ikilinganishwa na majirani zake.
• Viwango vya Utoaji wa Michango nchini Tanzania (33%) viko karibu na vya majirani zake, lakini bado viko chini ya 53% ya Kenya.

Nafasi ya Tanzania katika World Giving Index ya mwaka 2023, inatoa mwanga kuhusu maendeleo ya kijamii na kiuchumi ya nchi, hasa ikilinganishwa na majirani zake wa Afrika Mashariki na mataifa mengine ya Afrika.

Nafasi ya chini ya Tanzania kwenye World Giving Index inaashiria changamoto za kiuchumi zinazoendelea na inaonyesha haja ya juhudi maalum za kuboresha hali ya kijamii na kiuchumi. Kwa kuhimiza ushiriki mkubwa katika shughuli za hisani, Tanzania inaweza kuboresha mifumo ya usaidizi wa jamii, ambayo ni muhimu kwa maendeleo endelevu ya kiuchumi. Uboreshaji huu hautafaidi tu mfumo wa kijamii wa taifa bali pia utaongeza ukuaji wa kiuchumi na utulivu.

Madhara ya Kiuchumi ya Nafasi ya Tanzania katika Ukarimu: Nafasi ya chini ya Tanzania katika World Giving Index, iliyoko nafasi ya 117 duniani na alama ya 30, inaonyesha changamoto zinazoweza kuwa katika maendeleo yake ya kiuchumi na kijamii. Viwango vya chini vya kujitolea (12%), kusaidia wageni (46%), na kutoa michango ya fedha (33%) vinaonyesha kwamba Watanzania wanaweza kukabiliwa na vikwazo vya kiuchumi vinavyozuia uwezo wao wa kushiriki katika shughuli za hisani. Shughuli hizi mara nyingi zinahusishwa na kipato kinachopatikana na utulivu wa kijamii, na viwango vya chini vya ushiriki vinaweza kuonyesha magumu ya kiuchumi au ukosefu wa rasilimali.

Maendeleo ya Kiuchumi ya Kulinganisha katika Afrika Mashariki: Ikilinganishwa na Kenya na Uganda, viwango vya chini vya Tanzania katika tabia zote tatu za kutoa zinaashiria tofauti za hali za kiuchumi na miundo ya kijamii. Kenya, iliyoko nafasi ya 3 duniani, inaonyesha utamaduni thabiti wa ukarimu, na ushiriki mkubwa katika kusaidia wageni (76%), kutoa michango ya fedha (53%), na kujitolea muda (51%). Ushiriki huu mkubwa unaonyesha uchumi uliostawi zaidi ambapo wananchi wana uwezo mkubwa wa kifedha na rasilimali za kuchangia kwa sababu za hisani. Uganda, ingawa iko chini ya Kenya, bado inazidi Tanzania katika tabia zote za kutoa, ikionyesha jamii inayoshirikiana zaidi na mazingira bora ya kiuchumi yanayosaidia shughuli hizo.

Muktadha Mpana wa Kiuchumi ndani ya Afrika: Nafasi ya Tanzania ndani ya Afrika, hasa ikilinganishwa na nchi kama Kenya, Liberia, na Nigeria, ambazo zinashika nafasi za juu zaidi, inaonyesha tofauti za kiuchumi kati ya mataifa haya. Liberia, licha ya maendeleo ya chini ya kiuchumi, inashika nafasi ya 4 duniani, jambo linaloweza kuhusishwa na sababu za kitamaduni au mfumo wa usaidizi wa kijamii wenye nguvu. Nafasi ya chini ya Tanzania inaonyesha kuwa maendeleo ya kiuchumi yanaweza kuwa hayajasambaa sawasawa miongoni mwa wananchi wake, na kusababisha ushiriki mdogo wa jumla katika shughuli za kutoa.

Athari kwa Sera za Kiuchumi: Takwimu zinaonyesha kuwa kuna nafasi kwa Tanzania kuboresha katika kukuza utamaduni wa kujitolea na kusaidiana katika jamii. Kuboresha vipengele hivi kunaweza kuchangia kwa njia chanya katika mshikamano wa kijamii na maendeleo ya kiuchumi ya nchi. Ili kufanikisha hili, Tanzania inaweza kuhitaji kuzingatia kuunda fursa za kiuchumi zinazoongeza kipato kinachopatikana, kuwekeza katika miundombinu ya kijamii inayohimiza ushiriki wa jamii, na kukuza sera zinazounga mkono shughuli za hisani.

In the World Giving Index 2023, Tanzania is ranked 117th out of 142 countries globally, with a World Giving Index score of 30.

Tanzania's position on the World Giving Index shows room for improvement, particularly in fostering a culture of volunteerism and community assistance. In comparison to its East African neighbors, especially Kenya, Tanzania ranks lower in terms of generosity, as measured by helping strangers, donating money, and volunteering time​.

Tanzania’s Position in East Africa:

• Tanzania is ranked lower compared to its East African neighbors.
  • Kenya: Ranked 3rd globally, with a World Giving Index score of 60. In Kenya, 76% of adults helped a stranger, 53% donated money, and 51% volunteered time.
  • Uganda: Ranked 30th globally, with a score of 46. In Uganda, 70% of adults helped a stranger, 32% donated money, and 36% volunteered time.
  • Rwanda: Not specifically ranked in the top or bottom positions, indicating a middle-tier position.
  • Tanzania: 46% of adults helped a stranger, 33% donated money, and 12% volunteered time.

Tanzania’s Position in Africa:

• Tanzania is in the lower half of the rankings among African countries.
  • Kenya (3rd globally, 1st in Africa): Score of 60.
  • Liberia (4th globally, 2nd in Africa): Score of 58.
  • Nigeria (9th globally, 3rd in Africa): Score of 53.
  • Tanzania (117th globally, low among African nations): Score of 30.

Comparative Figures

Helping a Stranger:

In the category of helping a stranger, Kenya stands out with an impressive 76% of adults reporting that they assisted someone they didn’t know in 2022. This high level of engagement reflects a strong sense of community and willingness to offer immediate support to others, even outside one's social circle. Uganda follows closely with 70% of adults helping strangers, indicating a similar cultural inclination towards altruism. In contrast, Tanzania lags behind, with only 46% of adults engaging in this behavior. This significant gap suggests that while Tanzanians do participate in helping others, the practice is less prevalent compared to their East African counterparts.

Donating Money:

When it comes to donating money, Kenya once again leads with 53% of adults contributing financially to charitable causes. This demonstrates a robust culture of monetary giving, which could be linked to strong traditions of philanthropy or community support systems in Kenya. Tanzania and Uganda show similar levels of participation in this area, with 33% and 32% of adults respectively donating money. These figures indicate that while financial giving is present in both countries, it is less widespread than in Kenya. The near parity between Uganda and Tanzania in this category suggests that economic factors or cultural attitudes towards money might influence donation behaviors similarly in these nations.

Volunteering Time:

Volunteering time is where the most striking differences emerge. In Kenya, 51% of adults reported volunteering their time to an organization, showcasing a deep commitment to community service and civic engagement. Uganda, while lower, still maintains a significant level of participation with 36% of adults volunteering their time. In stark contrast, Tanzania's rate is much lower, with only 12% of adults involved in volunteering. This substantial gap suggests that volunteerism is far less embedded in Tanzanian society compared to its neighbors, which could be due to a variety of factors including economic constraints, lack of opportunities, or differing cultural values related to time and community involvement.

Key Observations

• Kenya is a standout in both East Africa and across the African continent, ranking very high globally and leading in various categories of giving.
• Tanzania lags behind, especially in volunteering time, where only 12% of adults participated, compared to 51% in Kenya. This indicates a significant gap in volunteerism in Tanzania compared to its neighbors.
• Donation Rates in Tanzania (33%) are relatively closer to those of its neighbors, but still lower than Kenya's 53%.

Tanzania's ranking in the World Giving Index 2023, insights into the country's social and economic development, particularly when compared to its East African neighbors and other African nations

Tanzania’s relatively low ranking on the World Giving Index highlights underlying economic challenges and suggests a need for focused efforts to improve social and economic conditions. By encouraging greater participation in charitable activities, Tanzania could enhance community support systems, which are essential for sustainable economic development. This improvement would not only benefit the social fabric of the nation but also contribute to broader economic growth and stability.

Economic Implications of Tanzania’s Generosity Ranking:

Tanzania's lower position on the World Giving Index, ranked 117th globally with a score of 30, suggests potential challenges in its economic and social development. The comparatively low rates of volunteering (12%), helping strangers (46%), and donating money (33%) indicate that Tanzanians may face economic constraints that limit their ability to engage in charitable activities. These activities are often associated with disposable income and social stability, and lower participation rates can reflect economic hardships or limited access to resources.

Comparative Economic Development in East Africa:

When compared to Kenya and Uganda, Tanzania's lower scores in all three giving behaviors point to differences in economic conditions and social structures. Kenya, ranked 3rd globally, exhibits a strong culture of giving, with significant participation in helping strangers (76%), donating money (53%), and volunteering time (51%). This robust engagement suggests a more developed economy where citizens have greater capacity and resources to contribute to charitable causes. Uganda, though ranked lower than Kenya, still surpasses Tanzania in all giving behaviors, indicating a more engaged civil society and possibly a better economic environment that supports such activities.

Broader Economic Context within Africa:

Tanzania’s position within Africa, particularly when compared to countries like Kenya, Liberia, and Nigeria, which rank much higher, underscores the economic disparities between these nations. Liberia, despite its lower economic development, ranks 4th globally, which may be attributed to cultural factors or a strong community-based support system. Tanzania’s lower ranking suggests that economic development may not be evenly distributed across its population, leading to lower overall engagement in giving activities.

Implications for Economic Policy:

The data suggests that there is room for Tanzania to improve in fostering a culture of volunteerism and community assistance. Enhancing these aspects could contribute positively to the country's social cohesion and economic development. To achieve this, Tanzania might need to focus on creating economic opportunities that increase disposable income, investing in social infrastructure that encourages community involvement, and promoting policies that support charitable activities.

The World Giving Index 2023 provides a global perspective on generosity by analyzing charitable activities across 142 countries.

1. Global Giving Trends:
   • 72% of the world's adult population (equivalent to 4.2 billion people) engaged in giving behaviors in 2022, which includes donating money, helping strangers, or volunteering time.
   • The global World Giving Index score for 2022 is 39, just one point lower than the peak recorded in 2021. This suggests that the heightened generosity seen during the COVID-19 pandemic has largely been sustained.
2. Top 10 Most Generous Countries:
   • Indonesia ranks as the world's most generous country with a score of 68. This is the sixth consecutive year Indonesia has topped the list.
   • Ukraine saw the most significant year-on-year increase in generosity, rising to the second position with a score of 62.
   • Kenya is ranked third with a score of 60.
3. Key Behaviors:
   • The Index measures three key behaviors: helping a stranger, donating money, and volunteering time.
     • Indonesia: 82% donated money, 61% helped a stranger, and 61% volunteered time.
     • Ukraine: 70% donated money, 78% helped a stranger, and 37% volunteered time.
     • Kenya: 53% donated money, 76% helped a stranger, and 51% volunteered time.
4. Global Participation by Activity:
   • Helping a Stranger: This was the most common giving behavior, with 49% of adults globally participating.
   • Donating Money: 29% of adults donated money.
   • Volunteering Time: 21% of adults volunteered time to an organization.
5. Top Performers in Specific Behaviors:
   • Myanmar ranks first in donating money, with 83% of adults having donated.
   • Liberia leads in volunteering time, with 65% of adults having volunteered.
   • Nigeria and Kuwait are among the top performers in helping strangers, with 79% of adults in both countries participating.
6. Country-Specific Highlights:
   • The United States ranks 5th overall, with 76% helping a stranger, 61% donating money, and 38% volunteering time.
   • New Zealand ranks 10th, with 65% helping a stranger, 58% donating money, and 35% volunteering time.

The World Giving Index 2023 and the global generosity

The World Giving Index 2023 illustrates that generosity is a global phenomenon, deeply ingrained in human behavior, and plays a critical role in connecting communities and supporting those in need, regardless of the prevailing global circumstances​.

1. Sustained Generosity Post-Pandemic:
   • The high levels of giving seen during the COVID-19 pandemic have largely been maintained globally. Despite the challenges and global instability, a significant portion of the world's population continues to engage in acts of generosity.
2. Global Participation in Giving:
   • A substantial 72% of the world's adult population participated in some form of giving in 2022, whether through donating money, helping a stranger, or volunteering time. This indicates a widespread commitment to helping others across different cultures and countries.
3. Diverse Leadership in Generosity:
   • The most generous countries span various regions, cultures, and economic statuses. Indonesia, Ukraine, and Kenya, for example, lead the Index, demonstrating that generosity is not confined to wealthier nations but is a universal human behavior.
4. Behavioral Patterns:
   • Helping a stranger is the most common form of generosity globally, followed by donating money and volunteering time. This suggests that people are more inclined to offer immediate assistance to those in need, possibly due to the visible and direct impact of such actions.
5. Impact of Religion and Life Satisfaction:
   • The report highlights that individuals who consider religion important in their lives are more likely to be generous. Additionally, there is a link between life satisfaction and the likelihood of donating money, indicating that happier people may be more inclined to give.
6. Geopolitical Influence on Giving:
   • Ukraine's significant rise in the Index, attributed to the ongoing conflict and humanitarian crisis, demonstrates how geopolitical situations can influence national giving behaviors. During times of crisis, communities often show increased solidarity and support.
7. Call to Action:
   • The report urges governments and civil society organizations to support and encourage giving. This includes creating an enabling environment for philanthropy, fostering trust, and building resilient communities that can better withstand social and environmental challenges.

Ripoti inaonyesha picha ya dunia ambapo utajiri unakua, lakini kwa viwango tofauti katika maeneo mbalimbali, na ambapo ukosefu wa usawa bado ni suala tata. Inasisitiza hali ya mabadiliko ya utajiri, ikiwa na uhamaji mkubwa ndani ya viwango vya utajiri, lakini pia inatoa mwanga juu ya mkusanyiko wa utajiri kwa wachache wa juu. Mwelekeo wa baadaye unaonyesha ukuaji unaoendelea, hasa katika masoko yanayochipukia, lakini pia unaibua maswali kuhusu uendelevu wa ongezeko la utajiri unaotokana na madeni katika maeneo kama Asia-Pasifiki.

1. Utajiri Duniani:

• Utajiri wa dunia ulirejea mwaka 2023, ukikua kwa 4.2% kwa thamani ya dola za Kimarekani baada ya kupungua kwa 3% mwaka 2022.
• Urejeshaji huu uliongozwa hasa na Ulaya, Mashariki ya Kati, na Afrika (EMEA), kwa ukuaji wa 4.8%, ikifuatiwa na Asia-Pasifiki (APAC) kwa 4.4%, na Amerika kwa 3.6%.

2. Aina ya Utajiri:

• Idadi ya watu wazima walio kwenye kipato cha chini kabisa cha utajiri (chini ya USD 10,000) ilipungua karibu nusu kati ya mwaka 2000 na 2023.
• Kundi la kati la utajiri (USD 10,000 hadi USD 100,000) liliongezeka zaidi ya mara mbili katika kipindi hiki.
• Idadi ya mamilionea iliongezeka kwa kiasi kikubwa, huku Marekani ikiwa na karibu mamilionea milioni 22, wakilenga 38% ya jumla ya dunia.

3. Mwelekeo wa Utajiri wa Kanda:

• Tangu 2008, utajiri katika eneo la Asia-Pasifiki umeongezeka kwa karibu 177%, huku Amerika ikiona ukuaji wa 146%. Kwa kulinganisha, EMEA imechelewa na ukuaji wa chini ya 44%.
• Madeni katika eneo la Asia-Pasifiki pia yaliongezeka kwa zaidi ya 192% tangu 2008, ikilinganishwa na 49% katika Amerika na 9% pekee katika EMEA.

4. Ukosefu wa Usawa wa Utajiri:

• Ukosefu wa usawa umeongezeka katika masoko yanayokua kwa kasi lakini umepungua katika baadhi ya nchi zilizoendelea. Kwa mfano, ukosefu wa usawa wa utajiri uliongezeka kwa karibu 23% huko Singapore lakini ulipungua kwa 5.4% huko Ujerumani.

5. Makadirio ya Baadaye:

• Kufikia mwaka 2028, idadi ya watu wazima wenye utajiri unaozidi USD 1 milioni inatarajiwa kuongezeka katika masoko 52 kati ya 56 yaliyofanyiwa uchambuzi, huku ongezeko kubwa likitarajiwa Taiwan (hadi 50%) na Korea (zaidi ya 25%).
• Ripoti inatabiri kwamba sehemu ya utajiri wa dunia iliyoshikiliwa na uchumi unaoibuka itazidi 30% mwaka 2024 na kufikia karibu 32% ifikapo mwaka 2028.

Ukuaji wa Utajiri Duniani 2024: Changamoto na Fursa za Baadaye

1. Urejeshaji na Ukuaji wa Utajiri Duniani:

• Urejeshaji kutoka 2022: Baada ya kupungua mwaka 2022, utajiri wa dunia ulirejea kwa 4.2% mwaka 2023. Urejeshaji huu ni muhimu kwani unaonyesha uthabiti wa masoko ya dunia, licha ya changamoto za kiuchumi za hivi karibuni.
• Mabadiliko ya Kanda: Ukuaji haukuwa sawa kote duniani. Ulaya, Mashariki ya Kati, na Afrika (EMEA) ziliongoza urejeshaji kwa ongezeko la 4.8%, ikifuatiwa na Asia-Pasifiki (4.4%) na Amerika (3.6%).

2. Usambazaji na Uhamaji wa Utajiri:

• Kupungua kwa Kundi la Chini Kabisa la Utajiri: Idadi ya watu wazima wenye utajiri wa chini ya USD 10,000 imepungua karibu nusu tangu mwaka 2000, ikionyesha uhamaji mkubwa kwenda kwenye viwango vya juu vya utajiri. Watu wengi zaidi wanapanda hadi katika viwango vya kati vya utajiri, hasa kwenye kundi la USD 10,000 hadi USD 100,000 ambalo limeongezeka zaidi ya mara mbili.
• Kuongezeka kwa Idadi ya Mamilionea: Idadi ya mamilionea imeongezeka kwa kasi, hasa nchini Marekani, ambayo ina karibu mamilionea milioni 22. Hii inaakisi ukuaji wa uchumi na mkusanyiko wa utajiri.

3. Mwelekeo wa Utajiri wa Kanda:

• Ukuaji wa Asia-Pasifiki: Utajiri katika Asia-Pasifiki umeongezeka kwa 177% tangu 2008, unaosukumwa na mali za kifedha na zisizo za kifedha. Hata hivyo, ukuaji huu umeambatana na ongezeko kubwa la madeni, jambo linalozua wasiwasi kuhusu uendelevu.
• Ukuaji wa Madeni: Ongezeko kubwa la madeni katika Asia-Pasifiki (192%) ikilinganishwa na EMEA (9%) na Amerika (49%) linaonyesha kuwa sehemu kubwa ya ukuaji wa utajiri wa eneo hilo inategemea madeni, jambo ambalo linaweza kuleta hatari endapo hali ya kiuchumi itazorota.

4. Ukosefu wa Usawa wa Utajiri:

• Mwelekeo Mchanganyiko wa Ukosefu wa Usawa: Wakati ukosefu wa usawa umeongezeka katika masoko yanayokua kwa kasi kama Singapore (imepanda kwa 23%), umepungua katika mengine, kama Ujerumani (umepungua kwa 5.4%). Hii inaonyesha kwamba ukuaji wa utajiri hauhusiani daima na kuongezeka kwa ukosefu wa usawa.
• Piramidi ya Utajiri wa Dunia: Asilimia ndogo ya idadi ya watu duniani (1.5%) inasimamia sehemu kubwa ya utajiri (47.5% ya utajiri wa dunia), ikionyesha mkusanyiko mkubwa wa utajiri kwa wachache wa juu.

5. Makadirio ya Baadaye:

• Kuongezeka kwa Mamilionea: Idadi ya mamilionea inatarajiwa kuendelea kuongezeka katika masoko mengi. Kufikia mwaka 2028, idadi ya mamilionea inakadiriwa kuongezeka hadi 50% huko Taiwan na zaidi ya 25% huko Korea.
• Masoko Yanayochipukia: Sehemu ya utajiri wa dunia iliyoshikiliwa na uchumi unaoibuka inatarajiwa kuzidi 30% mwaka 2024 na kuendelea kukua hadi karibu 32% ifikapo mwaka 2028. Hii inaashiria mabadiliko katika dynamics za utajiri wa dunia, na masoko yanayochipukia yakichukua jukumu muhimu zaidi.

Recovery, Inequality, and Regional Dynamics

The Global Wealth Report 2024 and global wealth levels, including their recovery, distribution, and growth across different regions

1. Global Wealth Recovery in 2023

• Rebound in Wealth: After a 3% decline in 2022, global wealth rebounded by 4.2% in 2023. This recovery reversed the previous year's loss, marking a return to the long-term trend of increasing global wealth.
• Regional Contributions: The recovery was led by Europe, the Middle East, and Africa (EMEA), which saw a 4.8% increase in wealth, followed by Asia-Pacific (APAC) with 4.4%, and the Americas with 3.6%.

2. Regional Wealth Levels

• EMEA: EMEA had the highest average wealth per adult at just over USD 166,000. However, this region has experienced the slowest growth since 2008, with an increase of only 41%.
• APAC: The Asia-Pacific region saw the fastest wealth growth, with an average increase of 122% since 2008, bringing the average wealth per adult to just over USD 156,000.
• Americas: The Americas had an average wealth per adult of USD 146,000, with a growth rate of 110% since 2008. The United States alone contributed significantly to this growth, with the highest number of millionaires globally.

3. Wealth Distribution and Growth

• Wealth Distribution: The distribution of wealth has seen a notable shift. The proportion of adults in the lowest wealth band (under USD 10,000) nearly halved from over 75% in 2000 to below 40% in 2023. Simultaneously, the middle wealth band (USD 10,000 to USD 100,000) grew from 17% to nearly 43% of the global population.
• Millionaires: The number of millionaires increased significantly, with millionaires now accounting for 1.5% of the global adult population. The United States leads with nearly 22 million millionaires, or 38% of the global total. Mainland China follows with just over six million millionaires.

4. Inflation and Real Wealth Growth

• Impact of Inflation: Inflation has consistently eroded wealth growth. Since 2008, real wealth has grown by an average of 4.7% per year, compared to the nominal growth rate of 5.2%. However, in 2023, real wealth growth exceeded nominal growth, reaching nearly 8.4% due to a reduction in inflation from its 2022 peak.

5. Long-Term Trends and Slowdown

• Slowdown in Growth: Despite the rebound in 2023, the long-term trend shows a slowdown in global wealth growth. Between 2000 and 2010, global wealth grew at an average annual rate of 7%, but this slowed to just over 4.5% from 2010 to 2023.
• Regional Disparities: The slowdown has been more pronounced in regions like Japan and Italy, where shrinking populations and aging societies have contributed to reduced economic activity and wealth growth.

6. Currency Effects on Wealth

• Currency Impact: The report highlights the significant impact of currency fluctuations on wealth levels. For instance, in Japan, wealth growth in USD terms was only 2%, but when measured in local currency, it was over 9%. Conversely, in Switzerland, a 3.6% growth in USD terms turned into a nearly 6% decline when measured in Swiss francs.

7. Wealth Composition: Financial vs. Non-Financial Wealth

• Wealth Composition: The composition of wealth varies by region. In EMEA, financial wealth has grown by 53% since 2008, while non-financial wealth increased by 29%. In contrast, APAC saw non-financial wealth grow by 187%, outpacing the 170% growth in financial wealth.

The analysis of global wealth levels in the Global Wealth Report 2024

The report tells us that while global wealth is growing and recovering from recent setbacks, the growth is uneven, with significant regional disparities and ongoing issues of wealth concentration and inequality. Inflation, demographic changes, and currency fluctuations continue to play a significant role in shaping global wealth dynamics. The long-term slowdown in wealth growth, particularly in mature economies, suggests that the rapid gains of the past may not be sustainable, pointing to a future where managing and preserving wealth becomes increasingly important.

1. Global Wealth Recovery and Resilience:

• Strong Rebound: Despite the economic challenges of 2022, global wealth demonstrated resilience by rebounding 4.2% in 2023. This indicates a robust recovery, showing that global wealth is generally on an upward trajectory despite short-term fluctuations.
• Regional Differences in Recovery: The recovery was uneven across regions, with EMEA leading the rebound, followed by APAC and the Americas. This suggests that while global wealth is growing, the pace and strength of this growth vary significantly depending on the region.

2. Shifts in Wealth Distribution:

• Decreasing Poverty: The proportion of adults in the lowest wealth bracket (under USD 10,000) has significantly decreased, nearly halving since 2000. This trend indicates that global wealth is becoming more evenly distributed, with more people moving into higher wealth brackets.
• Rising Middle Class: The middle wealth band (USD 10,000 to USD 100,000) has expanded significantly, suggesting that a larger segment of the global population is now achieving moderate wealth levels, contributing to the growth of a global middle class.

3. Inequality and Concentration of Wealth:

• Increase in Millionaires: The number of millionaires has risen sharply, particularly in the United States. This points to a concentration of wealth among the wealthy, even as overall wealth levels rise.
• Continued Wealth Inequality: While the overall number of millionaires has increased, wealth inequality persists. Wealth remains highly concentrated, with the top 1.5% of the global population controlling nearly half of the world’s wealth. This highlights the ongoing disparity between the richest and the rest of the population.

4. Impact of Economic and Demographic Factors:

• Inflation’s Erosion of Wealth: Inflation continues to erode real wealth growth, though the reduction in inflation in 2023 allowed real wealth growth to outpace nominal growth. This underscores the importance of controlling inflation to preserve wealth.
• Demographic Challenges: Regions with aging populations, like Japan and Italy, are experiencing slower wealth growth. This suggests that demographic factors, such as population aging and declining birth rates, are critical in shaping long-term wealth trends.

5. Currency Fluctuations and Wealth Volatility:

• Currency Effects: Currency fluctuations can significantly impact wealth levels, as seen in the discrepancies between wealth growth in local currencies and USD terms. This highlights the volatility and risks associated with global wealth when currency exchange rates fluctuate.

6. Long-Term Slowdown in Wealth Growth:

• Decelerating Growth: The long-term trend shows that global wealth growth is slowing, particularly in more mature economies. This slowdown, from an average of 7% annual growth in the 2000s to 4.5% in the 2010s and beyond, indicates that the rapid accumulation of wealth seen in the early 21st century may be tapering off.

7. Regional Wealth Composition:

• Differences in Wealth Composition: The composition of wealth varies significantly by region, with APAC seeing more growth in non-financial assets (like real estate) compared to financial assets. This regional difference indicates that the sources and types of wealth accumulation can vary greatly depending on local economic conditions and investment patterns.

Recovery, Regional Growth, and Future Trends

This report paints a picture of a world where wealth is growing, but at different rates across regions, and where inequality remains a complex issue. It underscores the dynamic nature of wealth, with significant mobility within wealth brackets, but also highlights the concentration of wealth at the top. The future outlook suggests continued growth, particularly in emerging markets, but also raises questions about the sustainability of debt-fueled wealth increases in regions like Asia-Pacific.

1. Global Wealth Recovery:
   • Global wealth rebounded in 2023, growing by 4.2% in USD terms after a 3% decline in 2022.
   • The recovery was driven primarily by Europe, the Middle East, and Africa (EMEA), with a growth of 4.8%, followed by Asia-Pacific (APAC) at 4.4%, and the Americas at 3.6%.
2. Wealth Distribution:
   • The proportion of adults in the lowest wealth band (less than USD 10,000) almost halved between 2000 and 2023.
   • The middle wealth band (USD 10,000 to USD 100,000) more than doubled during this period.
   • The number of millionaires increased significantly, with the United States hosting nearly 22 million, representing 38% of the global total.
3. Regional Wealth Trends:
   • Since 2008, wealth in the Asia-Pacific region has grown by nearly 177%, while the Americas saw a growth of 146%. In contrast, EMEA lagged with a growth of just under 44%.
   • Debt in the Asia-Pacific region also surged by over 192% since 2008, compared to 49% in the Americas and only 9% in EMEA.
4. Wealth Inequality:
   • Inequality has increased in fast-growing markets but has decreased in several developed economies. For instance, wealth inequality rose by nearly 23% in Singapore but decreased by 5.4% in Germany.
5. Future Projections:
   • By 2028, the number of adults with wealth exceeding USD 1 million is expected to rise in 52 out of 56 markets analyzed, with significant increases projected in Taiwan (up to 50%) and Korea (over 25%).
   • This report predicts that emerging economies' share of global wealth will exceed 30% in 2024 and rise to nearly 32% by 2028.

The Global Wealth Report 2024 and the global wealth trends

1. Global Wealth Recovery and Growth:

• Rebound from 2022: After a decline in 2022, global wealth rebounded by 4.2% in 2023. This recovery is significant as it suggests resilience in global markets, despite recent economic challenges.
• Regional Variations: The growth was not uniform across the world. Europe, the Middle East, and Africa (EMEA) led the recovery with a 4.8% increase, followed by Asia-Pacific (4.4%) and the Americas (3.6%).

2. Wealth Distribution and Mobility:

• Shrinking Lowest Wealth Band: The proportion of adults with less than USD 10,000 in wealth nearly halved since 2000, indicating significant upward mobility. More people are moving into higher wealth brackets, particularly into the USD 10,000 to USD 100,000 range, which has more than doubled.
• Increasing Millionaires: The number of millionaires has grown dramatically, especially in the United States, which hosts nearly 22 million millionaires. This reflects both economic growth and wealth concentration.

3. Regional Wealth Trends:

• Asia-Pacific's Growth: Wealth in Asia-Pacific has increased by 177% since 2008, driven by both financial and non-financial assets. However, this growth has been accompanied by a significant rise in debt, raising concerns about sustainability.
• Debt Growth: The substantial increase in debt in Asia-Pacific (192%) compared to EMEA (9%) and the Americas (49%) suggests that much of the region's wealth growth is debt-fueled, which could pose risks if economic conditions deteriorate.

4. Wealth Inequality:

• Mixed Trends in Inequality: While inequality has risen in some fast-growing markets like Singapore (up 23%), it has decreased in others, such as Germany (down 5.4%). This shows that wealth growth does not always correlate with increasing inequality.
• Global Wealth Pyramid: A small percentage of the global population (1.5%) controls a large share of wealth (47.5% of global wealth), highlighting the significant concentration of wealth at the top.

5. Future Projections:

• Increase in Millionaires: The number of millionaires is expected to continue rising in most markets. By 2028, the number of millionaires is projected to increase by up to 50% in Taiwan and over 25% in Korea.
• Emerging Markets: The share of global wealth held by emerging economies is expected to exceed 30% in 2024 and continue growing to nearly 32% by 2028. This indicates a shift in global wealth dynamics, with emerging markets playing an increasingly important role.

Tanzania’s Strategic Positioning in China-Africa Relations Ahead of President Samia's FOCAC Visit

President Samia's upcoming visit to China for FOCAC reflects Tanzania's strategic positioning within China-Africa relations, emphasizing economic cooperation and infrastructure development. This aligns with broader African engagement with China, which remains pivotal for the continent’s growth, despite the challenges related to debt and project sustainability.

1. President Samia Suluhu Hassan's Visit to China:
   • In September 2024, President Samia will visit China for the Forum for China-Africa Cooperation (FOCAC), where she is expected to sign new loan deals and strategic aid agreements. This visit reflects the ongoing strengthening of Tanzania-China relations and is in line with Tanzania's freshly revised foreign policy that emphasizes economic diplomacy and non-alignment.
2. China's Commitment to Tanzania:
   • During Minister January Makamba's visit to Beijing in May 2024, China expressed its willingness to finance the next phase of bilateral projects already underway in Tanzania and to enter into new strategic project sponsorship pacts. This commitment is significant as it signals China’s continued investment in Tanzania's development, particularly in infrastructure and industrial projects.
3. Tanzania-China Bilateral Relations:
   • In November 2022, during President Samia's previous visit to Beijing, 15 bilateral agreements were signed. These included an upgrade of the Tanzania-Zambia Railway (TAZARA), a $13.49 million debt waiver, and a $56.72 million concessional loan for Zanzibar's International Airport terminal. The relations were elevated to a "comprehensive strategic cooperative partnership," which is China’s highest level of diplomatic engagement.
4. Tanzania's Foreign Direct Investment from China:
   • Chinese companies are the largest source of Foreign Direct Investment (FDI) in Tanzania, with investments totaling $9.8 billion by October 2022. These investments span sectors like transportation, real estate, manufacturing, mining, and agriculture, underscoring China's critical role in Tanzania’s economic development.
5. Tanzania-China Trade Relations:
   • In 2022, Tanzania's export trade to China was valued at $600 million, with a target to increase this to $1 billion by 2025. Major exports to China include oily seeds, copper, and precious metal ores, while imports from China include footwear, fabrics, and electronics.
6. China's Broader Role in Africa:
   • China's lending to Africa saw an increase in 2023, with $4.61 billion in loans approved, marking the first annual rise since 2016. Between 2000 and 2023, China lent a total of $182.28 billion to Africa, focusing on energy, transport, and ICT sectors. This increase in loans reflects China's strategic focus on managing risks in debt-laden African economies while maintaining its influence through initiatives like the Belt and Road Initiative (BRI).
7. FOCAC and China's Strategic Interests:
   • The FOCAC conference, which incorporates 53 African countries, is a key platform for China to expand its footprint across the continent. This year's event is expected to attract many African leaders as China seeks to strengthen its economic ties with Africa, particularly in infrastructure development and industrial cooperation.
8. Implications for Africa:
   • Africa's engagement with China through platforms like FOCAC and BRI has significant implications for the continent's development. While China's investments and loans have facilitated substantial infrastructure projects, they have also raised concerns about debt sustainability and the long-term quality of partnerships. However, China’s recent loan increases and strategic investments indicate a continued commitment to Africa, albeit with a more cautious approach.

President Samia Suluhu Hassan's upcoming visit to China for the Forum for China-Africa Cooperation (FOCAC) and the expected signing of new loan deals and strategic aid agreements have several implications for Tanzania's economic development

President Samia’s visit to China and the resulting agreements are likely to have a positive impact on Tanzania’s economic development by enhancing infrastructure, diversifying the economy, expanding trade, and strengthening diplomatic relations. However, careful management of the associated debt and strategic planning will be essential to fully realize these benefits and ensure long-term economic stability.

1. Increased Foreign Investment:

• Boost in Infrastructure Development: China's commitment to financing ongoing and new projects in Tanzania, particularly in infrastructure, will significantly enhance the country's economic capacity. Investments in sectors like transportation (railways, ports), energy, and ICT will improve connectivity, reduce transaction costs, and stimulate economic activities.
• Job Creation: The influx of Chinese investments will likely create employment opportunities in various sectors, particularly in construction, manufacturing, and services, thereby reducing unemployment and improving livelihoods.

2. Trade Expansion:

• Enhanced Export Opportunities: With the goal to increase Tanzania’s exports to China from $600 million in 2022 to $1 billion by 2025, there will be a greater emphasis on boosting the production and export of Tanzanian goods. This could lead to diversification in Tanzania’s export base, increased foreign exchange earnings, and improved trade balance.
• Access to Chinese Markets: Duty-free access for up to 98% of Tanzanian products, including avocados and wild aquatic products, will open new markets for Tanzanian producers and could lead to a surge in agricultural and manufacturing exports.

3. Economic Diversification:

• Development of Strategic Sectors: The new agreements are expected to focus on energy, minerals, green development, and the digital economy. By leveraging Chinese expertise and capital, Tanzania can diversify its economy, reduce reliance on traditional sectors like agriculture, and foster sustainable development in emerging industries.

4. Improved Bilateral Relations:

• Strengthening of Diplomatic Ties: The elevation of Tanzania-China relations to a "comprehensive strategic cooperative partnership" during President Samia’s previous visit signals deepened cooperation that goes beyond economic interests to include cultural, educational, and technological exchanges. This holistic partnership can lead to long-term stability and growth.

5. Debt and Economic Management:

• Debt Sustainability Concerns: While Chinese loans and investments are beneficial, they also come with the risk of increasing Tanzania’s debt burden. Effective debt management will be crucial to ensure that these loans are used productively and do not lead to unsustainable debt levels that could hinder long-term economic growth.
• Focus on Non-Alignment and Economic Diplomacy: Tanzania’s revised foreign policy, which emphasizes non-alignment and economic objectives, allows the country to attract investments from multiple global powers without being entangled in geopolitical conflicts. This approach can enhance Tanzania’s bargaining power and allow for more favorable terms in international agreements.

6. Long-Term Economic Growth:

• Infrastructure as a Growth Driver: The development of key infrastructure projects, such as the Tanzania-Zambia Railway (TAZARA) and Zanzibar's International Airport terminal, will enhance Tanzania’s connectivity with regional and global markets, facilitating trade, tourism, and investment. Improved infrastructure is a fundamental enabler of long-term economic growth.
• Increased Competitiveness: By upgrading infrastructure and diversifying the economy, Tanzania can increase its competitiveness in the global market. This can attract more foreign direct investment (FDI) and promote sustainable economic growth.

ICT Development in Tanzania - Position in East Africa and Africa

1. Overall IDI Score for Tanzania (2024):
   • Score: 43.1 out of 100.
   • Rank within Africa: Tanzania has an IDI score of 43.1, placing it towards the middle of the range for African countries. Africa's IDI scores range significantly, with some countries scoring as low as 21.3 and others reaching up to 84.7.
2. Comparison with Other East African Countries:
   • Kenya: With an IDI score of 58.5, Kenya outperforms Tanzania significantly in terms of ICT development.
   • Uganda: Uganda, with a score of 40.4, is slightly behind Tanzania but still within a similar range.
   • Rwanda: Rwanda has made significant strides with an IDI score of 46.8, placing it slightly above Tanzania in the region.
   • Burundi: At the lower end, Burundi has a much lower IDI score of 24.4, indicating it lags behind Tanzania and other East African nations.
3. Africa-wide Comparison:
   • South Africa: One of the leading countries in Africa in terms of ICT, with an IDI score of 83.6, showing advanced ICT infrastructure and usage.
   • Nigeria: A major economy in Africa, Nigeria has an IDI score of 46.9, which is higher than Tanzania but still not among the top performers.
   • Egypt: With an IDI score of 76.8, Egypt is among the higher-ranked countries in Africa.
   • Ethiopia: Ethiopia scores significantly lower at 39.8, reflecting the challenges it faces in ICT development compared to Tanzania.

Summary of Tanzania's Position:

• Within East Africa: Tanzania is positioned in the middle, with Rwanda and Kenya performing better in ICT development, while Uganda and Burundi lag slightly behind.
• Within Africa: Tanzania’s ICT score is moderate. While it does better than some countries like Ethiopia and Burundi, it remains far behind leading African nations like South Africa and Egypt.

ICT Development Index (IDI) 2024 provides key insights into the state of Tanzania's digital economy development

Tanzania's digital economy is on a path of growth, but it needs targeted interventions to overcome its current limitations. By addressing these challenges, Tanzania can move closer to realizing the full potential of its digital economy, aligning itself with regional leaders and contributing to broader economic development.

1. Moderate Progress in Digital Infrastructure and Connectivity

• Tanzania's IDI score of 43.1 suggests that while the country has made progress in digital infrastructure, it still faces significant challenges in achieving widespread and effective digital connectivity.
• The gap between Tanzania and higher-performing East African countries like Kenya (58.5) and Rwanda (46.8) indicates that there is still substantial room for improvement, particularly in expanding access to digital services and infrastructure.

2. Relative Position in East Africa

• Within East Africa, Tanzania's position is middle-tier. It is ahead of countries like Uganda (40.4) and Burundi (24.4) but lags behind Rwanda and Kenya. This suggests that while Tanzania is making strides in its digital economy, it is not yet a leader in the region.
• The higher scores of Rwanda and Kenya reflect better access to digital infrastructure, more effective digital policy implementation, and possibly greater adoption of digital services among their populations. Tanzania can look to these countries for best practices in driving digital economy growth.

3. Challenges in Universal Connectivity

• The gap between Tanzania’s score and those of more developed African countries like South Africa (83.6) highlights the challenges Tanzania faces in achieving universal and meaningful connectivity.
• These challenges may include insufficient infrastructure in rural areas, limited access to affordable and reliable internet services, and a lower rate of digital literacy, which are essential for a thriving digital economy.

4. Opportunities for Growth

• Tanzania’s current standing offers significant opportunities for growth. By improving infrastructure, expanding internet access, and investing in digital skills development, Tanzania can enhance its digital economy.
• There is also an opportunity to leverage regional cooperation within East Africa, adopting successful policies from neighboring countries and collaborating on regional digital initiatives.

5. Impact on the Digital Economy

• The moderate IDI score reflects a digital economy that is still in its developing stages. While there is a foundation, more needs to be done to harness the full potential of digital technologies in driving economic growth, improving public services, and enhancing overall quality of life.
• To boost its digital economy, Tanzania will need to address the digital divide, ensure that digital infrastructure reaches underserved areas, and promote the adoption of digital technologies across different sectors of the economy.

6. Policy Implications

• The Tanzanian government’s focus should include expanding digital infrastructure, promoting digital literacy, reducing the cost of internet access, and creating an enabling environment for digital businesses.
• Policies that encourage innovation, investment in technology, and partnerships between public and private sectors will be crucial for accelerating the digital economy.