Tanzania Economic Updates: Tanzania's Investment Development and Economic Landscape

Inflation Rate:

• Tanzania maintains a stable inflation rate at 3.3 percent, with a minor 0.4 percent decrease in the past month.
• Across various sectors, inflation rates vary, with food, alcoholic beverages, housing, and healthcare exhibiting different short-term and long-term trends.
• In contrast, neighboring countries show varying inflation rates, with Zimbabwe experiencing hyperinflation, while Seychelles faces negative inflation.

GDP Growth Rate:

• Tanzania's GDP growth rate stands strong at 5.6 percent, signaling a consistent upward trend.
• When compared to previous years, there is a steady increase from 5.5 percent in 2022 and 5 percent in 2021.
• Key contributing sectors to this growth include agriculture, construction, mining, trade, manufacturing, finance, and insurance.

Money Supply:

• Money circulation decreased by 0.02 percent in a month but rose by 0.05 percent over a year.
• The central bank actively reduced money in circulation by 4.07 percent in one month, leading to a 7.5 percent increase within a year.
• Net foreign assets increased by 1.3 percent in a month but declined by 9.67 percent in a year.
• Net domestic assets showed slight increases of 0.12 percent in a month and 0.24 percent in a year.

Export Rate:

• Tanzania has witnessed a substantial 86 percent increase in exports over two years, with a 5 percent increase in the past year.
• This export growth is credited to various sectors, including gold, manufactured goods, traditional exports, and industrial transport equipment.
• However, horticultural and cereal exports have experienced declines of 23 percent and 65 percent, respectively, within a year.

Import Rate:

• Import rates have shown significant fluctuations, with a 116 percent increase in a month and a staggering 1209 percent increase in a year.
• Import trends vary across categories, with consumer goods, machinery, industrial transport equipment, and other goods undergoing different short-term and long-term changes.
• Notably, insecticides, rodenticides, and similar products saw a significant 93 percent decrease within a year.

Investment Development:

• An extensive analysis of investment projects in Tanzania highlights the sectors of focus, their investment levels, and their expected contributions to job creation.
• As of August 2023, there are 58 planned projects with an estimated total value exceeding USD 931 million.
• These projects are expected to generate more than 25,731 jobs, making a significant impact on local and regional economic growth.
• Job creation is particularly prominent in the transportation and agriculture sectors, with the latter expected to create 20,613 job positions.
• In addition to ongoing projects, there are 22 upcoming projects worth USD 64 million, set to create over 1,094 job opportunities.

Investment Regions:

• Tanzania has implemented 58 projects across 18 regions, with Dar es Salaam, the coastal region, and Dodoma being notable contributors.
• Surprisingly, Morogoro and Kagera, each with only two projects, are poised to create an impressive 10,120 jobs.
• Despite its 22 projects not primarily focused on employment, Dar es Salaam is expected to contribute more than 1778 jobs.
• The coastal region stands out with projects valued at USD 307 million, followed by Kagera and Dar es Salaam.
• The number of project announcements is on the rise, but questions arise about their impact on economic growth.

Budget Analysis:

• A review of the government's budget until August 2023 reveals that there was no deficit in 24 percent of cases.
• Expenditures have decreased by over 11 percent compared to the estimated budget, while income has declined by more than 8 percent.
• Key expenditure areas like wages and salaries, interest costs, and development expenditure have experienced fluctuations.
• Revenue sources, including import taxes and income tax, have declined significantly, while local goods and services taxes have seen a substantial increase.

National Debts:

• Tanzania's total government debt has exceeded USD 43,287 million, increasing by 14 percent over a year and 1 percent within a month.
• External debts increased by 8 percent over the year but decreased by 1 percent in a month, while domestic debt grew by 29 percent over the year with a 6 percent increase in a month.
• Effective management of this growing debt is critical for Tanzania's fiscal health and economic stability.

Tanzania's 2023 GDP per Capita: An overview of Tanzania's Gross Domestic Product per capita in 2023.

Tanzania's GDP per capita, historical trends, and future projections. It indicates that Tanzania's income per person has been on the rise, with expectations of further improvement in 2023. However, it's crucial to consider broader economic factors and policy decisions when analyzing a country's economic development.

GDP per Capita in 2022:

In 2022, Tanzania's GDP per capita was recorded at $1,056.87 USD. This figure indicates the average income per person in Tanzania for that year.

Comparison to World's Average:

Tanzania's GDP per capita, at $1,056.87 USD, is approximately 8 percent of the world's average GDP per capita. This means that, on average, Tanzanians had a lower income compared to the global average in 2022.

Expected GDP per Capita in 2023:

According to forecasts by Trading Economics, Tanzania's GDP per capita is expected to increase to $1,112.00 USD by the end of 2023. This projection suggests a potential improvement in the country's average income for the coming year.

Historical Trends:

The historical data indicates that Tanzania's GDP per capita has varied over time. It has averaged $719.18 USD from 1988 until 2022. The highest recorded GDP per capita in Tanzania was $1,056.87 USD in 2022, while the lowest recorded value was $503.93 USD in 1994.

Long-term Outlook:

The data also suggests that Tanzania's GDP per capita has seen fluctuations over the years, and it is important to consider long-term trends and economic policies to understand the trajectory of the country's economic development.

It's important to note that while an increase in GDP per capita is generally a positive indicator, it doesn't provide a complete picture of a country's economic and social well-being. Other factors, such as the distribution of wealth, employment quality, access to healthcare and education, and overall living conditions, also play critical roles in determining the overall welfare of the population.

Moreover, economic conditions can change over time due to various factors, including global economic trends, government policies, and external shocks, so ongoing monitoring and analysis are essential to understand the evolving social and economic dynamics in Tanzania.

Social Implications:

• Income Inequality: While Tanzania's GDP per capita has been increasing, it's important to consider income inequality within the country. If the wealth generated by the economy is not distributed fairly, it could lead to disparities in living standards and access to essential services among the population.
• Poverty Reduction: The rise in GDP per capita suggests that, on average, Tanzanians may have a higher income. This can contribute to poverty reduction as more people have the potential to meet their basic needs.
• Standard of Living: An increase in GDP per capita can lead to an improved standard of living for the population, including better access to education, healthcare, housing, and other essential services.
• Employment Opportunities: A growing economy may create more job opportunities, potentially reducing unemployment rates and providing livelihoods for the workforce.

Economic Implications:

• Economic Growth: Rising GDP per capita often indicates overall economic growth. This growth can attract foreign investments and stimulate domestic industries, leading to further economic expansion.
• Investment Potential: A higher GDP per capita can make Tanzania a more attractive destination for foreign investors, as it suggests a growing consumer market and increased purchasing power among the population.
• Government Revenue: The government may collect more tax revenue with a higher GDP per capita, which can be reinvested in infrastructure, social programs, and other development initiatives.
• Inflation and Price Levels: As the economy grows, there may be pressure on prices and inflation. Managing inflation is important to ensure that the increased income doesn't lead to a decrease in purchasing power.
• Economic Stability: A consistently increasing GDP per capita can contribute to economic stability and reduce the vulnerability to economic shocks.

Government Initiatives to Lower Transaction Costs

Sending and withdrawing 10,000 Tanzanian Shillings, the total cost varies depending on whether you are sending money within the same mobile network or to a different mobile network. For same-network transfers (M-Pesa to M-Pesa), the total cost is approximately 20.04% of the amount sent, while for cross-network transfers (M-Pesa to Tigopesa), the total cost is approximately 21.49% of the amount sent. These costs include both transaction fees and government levies.

Sending Money:

1. Same Mobile Network (M-Pesa to M-Pesa):
2. Total Fee: 350 Tanzanian Shillings
3. Government Levy: None
4. Different Mobile Network (M-Pesa to Tigopesa):
5. Total Fee: 495 Tanzanian Shillings
6. Government Levy: None

Withdrawing Cash:

Total Fee for Withdrawal: 1,552 Tanzanian Shillings

• M-Pesa Fee: 1,450 Tanzanian Shillings
• Government Levy: 102 Tanzanian Shillings

Total Cost for Sending and Withdrawing 10,000 Tanzanian Shillings:

Same Mobile Network (M-Pesa to M-Pesa):

• Sending Cost: 350 Tanzanian Shillings
• Withdrawal Cost: 1,552 Tanzanian Shillings
• Government Levy: 102 Tanzanian Shillings
• Total Cost: 2,004 Tanzanian Shillings

Different Mobile Network (M-Pesa to Tigopesa):

• Sending Cost: 495 Tanzanian Shillings
• Withdrawal Cost: 1,552 Tanzanian Shillings
• Government Levy: 102 Tanzanian Shillings
• Total Cost: 2,149 Tanzanian Shillings

Percentage of Total Amount Sent:

Same Mobile Network (M-Pesa to M-Pesa):

• Total Cost as a Percentage of 10,000 Tanzanian Shillings: (2,004 / 10,000) * 100% ≈ 20.04%

Different Mobile Network (M-Pesa to Tigopesa):

• Total Cost as a Percentage of 10,000 Tanzanian Shillings: (2,149 / 10,000) * 100% ≈ 21.49%Top of Form

It's essential for governments to strike a balance between ensuring the sustainability of mobile money operators and protecting the interests of consumers, particularly those with lower incomes. By implementing these strategies and policies, governments can help reduce the costs of sending and receiving money through mobile networks, ultimately fostering economic growth and financial inclusion.

Reducing the costs of sending and receiving money through mobile networks is crucial for financial inclusion and economic growth, especially in regions where these costs are relatively high. To address this issue, governments can consider implementing various strategies and policies:

Regulation and Oversight:

• Governments can regulate and oversee mobile money operators to ensure fair pricing practices and to prevent monopolistic behavior that can lead to high costs.
• Implementing price ceilings or caps on transaction fees can help control costs for consumers.

Competition Enhancement:

• Encourage healthy competition among mobile network operators by facilitating the entry of new players into the market. More competition often leads to lower prices.
• Promote interoperability between different mobile money services to allow customers to send money across networks easily.

Taxation and Levies:

• Reevaluate and potentially reduce government levies and taxes imposed on mobile money transactions. High taxes can significantly increase the cost of using these services.
• Consider alternative revenue sources for the government to compensate for the reduction in mobile money transaction taxes.

Consumer Education:

• Invest in consumer education campaigns to ensure that people are aware of the costs associated with mobile money transactions and the most cost-effective ways to use these services.

Infrastructure Investment:

• Invest in improving digital infrastructure, including network coverage and reliability, which can help reduce operational costs for mobile network operators, potentially leading to lower fees for consumers.

Partnerships and Collaboration:

• Facilitate partnerships between mobile network operators and financial institutions to create innovative financial products and services that can reduce costs while expanding access to financial services.

Incentives for Cost Reduction:

• Provide incentives or subsidies to mobile network operators that demonstrate efforts to reduce the costs of their services, especially for low-income customers.

Transparent Pricing:

• Mandate transparent pricing practices, ensuring that customers are fully aware of all fees and charges associated with mobile money transactions.

Research and Data Analysis:

• Conduct regular research and data analysis to monitor the cost structures of mobile money services and identify areas where costs can be reduced without compromising service quality or security.

Financial Inclusion Policies:

• Develop and implement comprehensive financial inclusion policies that prioritize affordable and accessible financial services for all citizens.

Navigating Tanzania's Business Frontier: Insights from the Reward Index

Tanzania has emerged as one of the ten African nations that offer favorable conditions for conducting business despite the facts having high tax rates in the year 2023.

This ranking is derived from the "Africa Risk-Reward Index" report by Oxford Economics Africa, which assesses three critical factors. In today's interconnected global landscape, businesses have the opportunity to expand their horizons beyond national borders in search of new markets and investment prospects. While venturing into foreign markets can be challenging, certain countries are exceptionally conducive for both businesses and individuals. These countries boast welcoming business environments, robust infrastructure, stable economies, and accommodating regulatory frameworks.

This holds particularly true for Africa, which has become a prime destination for investment. Africa is recognized as one of the world's fastest-growing economies, and despite the continent's array of socio-economic challenges that hinder business growth, a significant number of countries within the region are swiftly adapting to the needs of business owners.

Oxford Economics Africa, an independent economic advisory firm, underscores this point in its 2023 report titled "The Africa Risk-Reward Index." The report analyzes the benefits and drawbacks of polarization within each African nation, African-led security initiatives, and the strategies employed by African countries to secure their financial future.

By considering these three key factors, the research can identify the countries with the highest risk-to-reward ratios for establishing foreign businesses. A previously published list of the top ten riskiest African countries for conducting business also reveals that some of these high-risk countries are also among the most rewarding for investment.

The reward scores encompass medium-term economic growth projections, economic size, economic structure, and demographic factors. Economic growth prospects carry the greatest weight in determining the reward score, as investment opportunities thrive in regions with robust economic growth.

These rankings reflect the overall attractiveness of these countries for conducting business, taking into account factors such as economic growth, stability, infrastructure, and regulatory environment. Businesses considering international expansion often use such indices to assess potential markets for investment.

1. Ethiopia (Reward Index: 6.58):
   • Ethiopia is a rapidly growing economy in East Africa.
   • It has a large population and is known for its significant agricultural and industrial sectors.
   • The country has been actively promoting foreign investment, especially in sectors like manufacturing and infrastructure.
2. Côte d'Ivoire (Reward Index: 5.77):
   • Côte d'Ivoire, also known as Ivory Coast, is located in West Africa.
   • It has experienced economic growth and political stability in recent years, making it an attractive destination for investment.
   • Key sectors for investment include agriculture, mining, and energy.
3. Uganda (Reward Index: 5.53):
   • Uganda is situated in East Africa and is known for its diverse landscapes, including the famous Lake Victoria.
   • The country has been working to improve its business environment and attract foreign investment, particularly in agriculture and energy sectors.
4. Nigeria (Reward Index: 5.50):
   • Nigeria is the largest economy in Africa and is located in West Africa.
   • It has a diverse economy with sectors like oil and gas, telecommunications, and banking being prominent.
   • Despite its potential, Nigeria faces challenges like infrastructure deficits and security concerns.
5. Senegal (Reward Index: 5.41):
   • Senegal is in West Africa and has a stable political environment.
   • It is focusing on sectors like agriculture, renewable energy, and tourism to drive economic growth.
6. Egypt (Reward Index: 5.38):
   • Egypt is located in North Africa and has a rich history and culture.
   • The country's economy is diverse, with key sectors including tourism, manufacturing, and energy.
7. Kenya (Reward Index: 5.22):
   • Kenya, in East Africa, is known for its innovation and technology sector, particularly in the city of Nairobi.
   • It's a hub for startups and has a growing middle class, which attracts investment in various industries.
8. Tanzania (Reward Index: 5.19):
   • Tanzania, also in East Africa, has been working on infrastructure development to support economic growth.
   • The country's natural resources, such as minerals and agriculture, present investment opportunities.
9. Democratic Republic of Congo (DRC) (Reward Index: 5.15):
   • The DRC, in Central Africa, is rich in minerals and natural resources.
   • However, it faces challenges related to political instability and infrastructure development.
10. Morocco (Reward Index: 4.99):
    • Morocco, located in North Africa, has a diverse economy with strengths in agriculture, manufacturing, and tourism.
    • It has been attracting foreign investment through various economic reforms and incentives.

Short-term and Long-term Projections

This research provides a snapshot of the recent trends in food prices and food inflation in Tanzania, as well as projections for the near future subject to change based on various economic and market factors.

August 2023 Food Price Increase:

In August of 2023, the cost of food in Tanzania increased by 5.60 percent compared to the same month in the previous year. This indicates a year-on-year increase in food prices.

Expected Food Inflation:

Food inflation in Tanzania is expected to reach 5.70 percent by the end of the current quarter (presumably the quarter in which this information was provided). This projection is based on macro models and analysts' expectations.

Long-Term Food Inflation Projections:

Looking ahead, there are projections for food inflation in Tanzania for the coming years. It is anticipated to trend around 5.00 percent in 2024 and further decrease to 4.30 percent in 2025. These projections are based on econometric models.

Historical Food Inflation Data:

Over the period from 2010 to 2023, food inflation in Tanzania has exhibited fluctuations. The average food inflation rate during this period was 8.28 percent. It reached its highest point at 27.84 percent in January 2012, indicating a sharp spike in food prices during that month. On the other hand, it reached a record low of 0.10 percent in March 2019, signifying a period of very low food price inflation.

It's essential to recognize that the consequences of rising food inflation are complex and can vary widely depending on the specific economic conditions of a Tanzania, government policies, and global economic trends.

Governments of Tanzania and central banks often monitor food inflation closely and may implement measures to mitigate its negative impacts, aiming for price stability and economic growth.

Hence, various factors, including crop yields, weather patterns, and global commodity prices, can influence food inflation and its trajectory.

Economic and social consequences can occur when food inflation continue to rise, subject to change based on various economic and market factors. Here are some potential outcomes:

• Increased Cost of Living: Rising food prices can lead to an increased cost of living for households. When people spend more on essential food items, they have less disposable income for other goods and services. This can strain household budgets, especially for low-income individuals and families.
• Impact on Poverty: Higher food prices can push more people into poverty or worsen the conditions of those already living in poverty. People with limited incomes may struggle to afford basic food necessities, leading to food insecurity and malnutrition.
• Social Unrest: In extreme cases, persistent food inflation can lead to social unrest and protests. When people are unable to afford basic food items, it can result in public demonstrations and demands for government intervention.
• Economic Slowdown: High and persistent food inflation can contribute to overall economic instability. It can reduce consumer spending on non-essential goods and services, affecting various sectors of the economy. Central banks may respond to inflation by raising interest rates, which can also slow economic growth.
• Policy Responses: Governments often respond to rising food inflation through policy measures. These may include subsidies on essential food items, price controls, and import/export restrictions. The effectiveness of these policies can vary and may have unintended consequences.
• Impact on Businesses: Businesses that rely on food inputs may face increased production costs, which could be passed on to consumers through higher prices for their products. This can affect competitiveness and profit margins.
• Global Trade Implications: Rising food inflation in one country can affect global food prices and trade. It may lead to increased demand for food imports, impacting global supply chains and trade balances.
• Agricultural Investment: Higher food prices can incentivize increased investment in agriculture, including increased production and technology adoption. However, the impact on agricultural supply can take time to materialize.
• Exchange Rates: Inflation can influence exchange rates, which, in turn, can impact the cost of imported food items. Currency depreciation can make imported food more expensive.
• Consumer Behavior: As food prices rise, consumers may alter their purchasing habits, opting for cheaper alternatives or reducing consumption of certain items. This can have an impact on demand patterns.

Public Investment and Budget Performance Evaluation

Enhancing Strategic Project Implementation and Transparency

This research report delves into the evaluation of ongoing strategic initiatives in Tanzania, focusing on project performance, planning, financial aspects, and implementation. The study emphasizes the significance of each project, with a particular focus on the three most scrutinized initiatives: standard gauge railways (SGR), the Julius Nyerere hydropower project, and Tanzania Airlines (ATCL) enhancements. These projects were chosen due to their substantial societal and economic impact.

• Despite the substantial financial allocation by the government towards strategic development initiatives, what factors contribute to the persistent delays in the completion of these projects?
• In spite of the significant financial investment made by the government in strategic development projects, what are the reasons behind the recurrent delays in their timely completion?
• While the government appears to allocate a substantial amount of funds towards strategic development projects, what are the underlying reasons for the consistent delays in successfully concluding these projects on schedule?

Tanzania's Investment Development and Economic Landscape

Inflation Rate:

• Tanzania maintains a stable inflation rate at 3.3 percent, with a minor 0.4 percent decrease in the past month.
• Across various sectors, inflation rates vary, with food, alcoholic beverages, housing, and healthcare exhibiting different short-term and long-term trends.
• In contrast, neighboring countries show varying inflation rates, with Zimbabwe experiencing hyperinflation, while Seychelles faces negative inflation.

GDP Growth Rate:

• Tanzania's GDP growth rate stands strong at 5.6 percent, signaling a consistent upward trend.
• When compared to previous years, there is a steady increase from 5.5 percent in 2022 and 5 percent in 2021.
• Key contributing sectors to this growth include agriculture, construction, mining, trade, manufacturing, finance, and insurance.

Money Supply:

• Money circulation decreased by 0.02 percent in a month but rose by 0.05 percent over a year.
• The central bank actively reduced money in circulation by 4.07 percent in one month, leading to a 7.5 percent increase within a year.
• Net foreign assets increased by 1.3 percent in a month but declined by 9.67 percent in a year.
• Net domestic assets showed slight increases of 0.12 percent in a month and 0.24 percent in a year.

Export Rate:

• Tanzania has witnessed a substantial 86 percent increase in exports over two years, with a 5 percent increase in the past year.
• This export growth is credited to various sectors, including gold, manufactured goods, traditional exports, and industrial transport equipment.
• However, horticultural and cereal exports have experienced declines of 23 percent and 65 percent, respectively, within a year.

Import Rate:

• Import rates have shown significant fluctuations, with a 116 percent increase in a month and a staggering 1209 percent increase in a year.
• Import trends vary across categories, with consumer goods, machinery, industrial transport equipment, and other goods undergoing different short-term and long-term changes.
• Notably, insecticides, rodenticides, and similar products saw a significant 93 percent decrease within a year.

Investment Development:

• An extensive analysis of investment projects in Tanzania highlights the sectors of focus, their investment levels, and their expected contributions to job creation.
• As of August 2023, there are 58 planned projects with an estimated total value exceeding USD 931 million.
• These projects are expected to generate more than 25,731 jobs, making a significant impact on local and regional economic growth.
• Job creation is particularly prominent in the transportation and agriculture sectors, with the latter expected to create 20,613 job positions.
• In addition to ongoing projects, there are 22 upcoming projects worth USD 64 million, set to create over 1,094 job opportunities.

Investment Regions:

• Tanzania has implemented 58 projects across 18 regions, with Dar es Salaam, the coastal region, and Dodoma being notable contributors.
• Surprisingly, Morogoro and Kagera, each with only two projects, are poised to create an impressive 10,120 jobs.
• Despite its 22 projects not primarily focused on employment, Dar es Salaam is expected to contribute more than 1778 jobs.
• The coastal region stands out with projects valued at USD 307 million, followed by Kagera and Dar es Salaam.
• The number of project announcements is on the rise, but questions arise about their impact on economic growth.

Budget Analysis:

• A review of the government's budget until August 2023 reveals that there was no deficit in 24 percent of cases.
• Expenditures have decreased by over 11 percent compared to the estimated budget, while income has declined by more than 8 percent.
• Key expenditure areas like wages and salaries, interest costs, and development expenditure have experienced fluctuations.
• Revenue sources, including import taxes and income tax, have declined significantly, while local goods and services taxes have seen a substantial increase.

National Debts:

• Tanzania's total government debt has exceeded USD 43,287 million, increasing by 14 percent over a year and 1 percent within a month.
• External debts increased by 8 percent over the year but decreased by 1 percent in a month, while domestic debt grew by 29 percent over the year with a 6 percent increase in a month.
• Effective management of this growing debt is critical for Tanzania's fiscal health and economic stability.

A Closer Look at USD 931 Million Worth of Projects and Job Creation

This research provides valuable insights into the economic landscape of the region, showcasing the sectors of focus, their investment levels, and their potential impacts on job creation. It also highlights the dynamic nature of project initiation and the emphasis on both financial investments and employment generation in regional development planning.

It also provided offers insights into a snapshot of economic activities and development plans until August 2023:

1. Total Planned Projects and Value: As of August 2023, there were 58 projects in the planning stage, with a combined estimated value exceeding USD 931 million. This significant investment demonstrates a commitment to various sectors and initiatives.
2. Projected Job Creation: These projects are not just about financial investment; they are also expected to have a substantial impact on employment. It is projected that these initiatives will create more than 25,731 jobs, contributing to local and regional economic growth.
3. New Project Initiatives: Beyond projects that have already commenced, an additional 22 projects are set to start. This increase in project activity surpasses the total number of projects initiated in the month of August. These new projects are valued at USD 64 million and are expected to generate over 1,094 job opportunities.
4. Transportation Sector: The transportation sector emerged as the second-largest contributor in terms of project quantity for August. With 11 projects valued at USD 121 million, it is poised to create more than 2,895 jobs. This highlights the importance of infrastructure development in the region.
5. Agriculture Sector: Agriculture, with 10 projects valued at USD 339 million, stands out as a key sector. These projects are expected to generate an impressive 20,613 job positions, emphasizing the significance of agricultural development in the local economy.
6. Job-Generating Sectors: The sectors projected to have the most significant job creation impact include agriculture, transportation, and services. Interestingly, even though the services sector comprises only three projects with a total value of USD 67 million, it is forecasted to contribute more than 662 jobs, underlining its role in employment generation.
7. Sectors with Highest Investments: In terms of monetary investments, agriculture takes the lead with a substantial total value of USD 339 million. Following closely is the commercial building sector, which attracted USD 206 million in investments. Despite being the second-highest recipient of investment funds, it is noteworthy that the commercial building sector also plans to create an additional 188 jobs.

The projects in Tanzania are expected to have far-reaching social and economic effects, including job creation, skills development, community development, increased investment, sectoral growth, revenue generation, trade opportunities, and poverty reduction. These effects can contribute to the overall development and prosperity of the nation.

Social Effects:

• Job Creation: The projects are expected to create more than 25,731 jobs in various sectors, including agriculture, transportation, and services. This will reduce unemployment rates and improve livelihoods for thousands of Tanzanians.
• Skills Development: As these projects are implemented, there will be opportunities for skills development and training for the local workforce. This can enhance human capital and increase employability in the long term.
• Community Development: Infrastructure and development projects often lead to improved living conditions in surrounding communities. Better roads, access to services, and enhanced facilities can positively impact the quality of life for residents.
• Diversification of Opportunities: The presence of a variety of projects in sectors like agriculture, transportation, and services diversifies economic opportunities for individuals and communities, reducing dependency on a single industry.

Economic Effects:

• Increased Investment: The investment of over USD 931 million demonstrates confidence in Tanzania's economic potential. It attracts both domestic and foreign investors, stimulating economic growth.
• Sectoral Growth: Agriculture, transportation, and commercial building sectors are set to experience significant growth due to these projects, contributing to their overall economic development.
• Revenue Generation: The increased economic activity generated by these projects can boost government revenue through taxes, fees, and other sources, which can then be reinvested in public services and infrastructure.
• Trade Opportunities: Enhanced infrastructure, particularly in transportation, can facilitate trade both domestically and regionally, further fueling economic expansion.
• Poverty Reduction: The creation of jobs and improved economic conditions in various sectors can help reduce poverty and income inequality in Tanzania, leading to a more equitable distribution of wealth.

Tanzania's Investment Landscape, August 2023: China's Leading Role

China's Investment:

• In August 2023, China's investment in Tanzania surged to an impressive USD 422.25 million, solidifying its position as the leading investor in the country.
• In contrast, during August 2022, China's investments were comparatively lower, standing at just over USD 11.94 million.

Other Key Investors:

• Mauritius followed China in August 2023, with investments totaling USD 24.83 million, and India was not far behind, with investments exceeding USD 19.75 million during the same month.
• In August 2022, the United Arab Emirates held the top position as Tanzania's leading investment partner, injecting more than USD 308.227 million into the country. India came next with investments exceeding USD 35.901 million.

Sectors Attracting Investments:

The primary sectors attracting investments in Tanzania include:

• Commercial real estate, which received more than USD 304.86 million.
• The service sector, with investments exceeding USD 63.57 million.
• The manufacturing sector, which attracted more than USD 57.30 million.

Local Investments (August 2023):

Local investments in Tanzania, as of August 2023, were mainly concentrated in the following sectors:

• Agriculture, with investments exceeding USD 328.8 million.
• The transport sector, which accumulated investments of USD 83.89 million.
• The economic infrastructure sector also contributed, with local investments surpassing USD 12.5 million.

Job Creation:

• Agriculture emerged as the top job generator in Tanzania, producing approximately 20,613 jobs as of August 2023.
• The transportation sector followed closely, generating 2,895 jobs.
• The manufacturing sector contributed over 1,094 jobs during the same period.

Job Creation (August 2022):

• In August 2022, the manufacturing sector led in job creation with 3,409 jobs.
• The transportation sector followed with 1,089 jobs, and the tourism sector added 240 jobs to the workforce.

China remains one of the key contributors to Tanzania's investment landscape. In August 2023, China secured investments exceeding USD 422.25 million, surpassing all other nations. Mauritius followed with investments totaling over USD 24.83 million, while India trailed closely with investments exceeding USD 19.75 million during the same period.

Comparing this data to August 2022, the United Arab Emirates held the top position as Tanzania's leading investment partner, injecting more than USD 308.227 million into the country. India came next with investments exceeding USD 35.901 million, and China trailed with investments totaling more than USD 11.94 million during August 2022.

Notably, the primary sectors attracting investments include commercial real estate, which received more than USD 304.86 million, followed by the service sector with investments exceeding USD 63.57 million, and the manufacturing sector, which attracted more than USD 57.30 million.

As of August 2022, the sectors that had already attracted substantial investments were manufacturing, with investments surpassing USD 332.5 million, followed by the transportation sector with USD 33.39 million, and the tourism sector, which saw investments totaling USD 10.94 million.

As of August 2023, local investments predominantly originated from the agriculture sector, with investments exceeding USD 328.8 million, followed by the transport sector, which accumulated investments of USD 83.89 million. The economic infrastructure sector also contributed with local investments surpassing USD 12.5 million.

In terms of job creation, agriculture emerged as the top job generator, producing approximately 20,613 jobs as of August 2023. The transportation sector followed closely, generating 2,895 jobs, and the manufacturing sector contributed over 1,094 jobs.

During the same period in August 2022, the manufacturing sector led in job creation with 3,409 jobs, followed by the transportation sector with 1,089 jobs, and the tourism sector, which added 240 jobs to the workforce.

How Tanzania's Rising Population Fuels Economic Growth

This research provided information pertains to the population of Tanzania, including historical data, current estimates, and future projections. Here are more details about the population trends in Tanzania:

1. Population in 2022: According to the latest census figures and projections from TICGL, the total population of Tanzania was estimated to be 61.7 million people in the year 2022.
2. Population Projection for 2023: Tanzania's population is expected to continue growing, and it is projected to reach approximately 63.40 million by the end of 2023. This projection is based on global macro models and analysts' expectations.
3. Long-Term Projections: Looking further ahead, the long-term population projections for Tanzania indicate the following:
4. In 2024, the population is projected to be around 65.10 million.
5. In 2025, it is expected to further increase to approximately 67.20 million. These projections are based on econometric models, which consider various factors affecting population growth.
6. Historical Data: In 1960, Tanzania had a population of 10.1 million people. This historical data point illustrates the significant population growth that has occurred in Tanzania over the decades.
7. Additional Information: The page that provides this population data likely includes more details, such as historical high and low population figures, short-term forecasts, long-term predictions, an economic calendar, survey consensus (which may include expert opinions on population trends), and relevant news related to population changes and demographic shifts in Tanzania.

As Tanzania's population continues to increase, the country can potentially experience several economic advantages, provided that the population growth is accompanied by appropriate policies, investments, and development strategies.

Tanzania economic advantages from population growth requires effective governance, infrastructure development, education and skills training, healthcare access, and social services. Additionally, the quality of population growth (i.e., ensuring that people are healthy, well-educated, and have access to opportunities) is as important as the quantity of population growth. Unmanaged population growth or rapid urbanization can also pose challenges, such as increased demand for infrastructure and services, which need to be addressed through proper planning and policies.

The economic advantages with a growing population:

1. Larger Labor Force: A growing population means a larger labor force. This can lead to increased productivity and economic output, as more people can contribute to the workforce. However, it's essential to ensure that there are sufficient employment opportunities and that the labor force is adequately skilled.
2. Consumer Market: A larger population can create a larger domestic consumer market. This can attract both domestic and foreign businesses, leading to increased investment and economic growth. Companies are more likely to invest in a market with a substantial consumer base.
3. Increased Entrepreneurship: A growing population often results in more entrepreneurs and small business owners. This can lead to the development of a dynamic and diverse business environment, fostering innovation and economic expansion.
4. Human Capital Development: A larger population provides opportunities for human capital development. When properly educated and trained, the workforce can become more skilled and productive, contributing to economic growth. Investments in education and training are crucial to realizing this potential.
5. Agricultural Expansion: In agricultural economies like Tanzania, a growing population can drive agricultural expansion to meet increased food demand. This can lead to increased agricultural production, improved food security, and potential exports of agricultural products.
6. Urbanization: As the population grows, there is typically a trend toward urbanization, with more people moving to cities and towns. Urbanization can stimulate economic activity, as urban areas tend to attract businesses, infrastructure development, and services.
7. Economies of Scale: A larger population can lead to economies of scale in various industries. This means that the cost of production per unit of output may decrease, making goods and services more affordable for consumers and potentially boosting industries' profitability.
8. Increased Investment: A growing population can attract foreign direct investment (FDI) and domestic investment. Investors may see the potential for a higher return on investment in a country with a growing population and a burgeoning consumer market.
9. Resource Utilization: If managed sustainably, a growing population can contribute to the responsible utilization of a country's natural resources. This can lead to increased revenue from resource exports, such as minerals and natural gas.