Tanzania Investment and Consultant Group Ltd

| Economic Research Centre

In Q4 2024, Tanzania’s agricultural GDP soared to 11,252,481 TZS Million (USD 4.11 billion), a 60.7% increase from 7,003,566.89 TZS Million (USD 2.56 billion) in Q3 2024, driven by cash crops like cashew nuts and tobacco, per the National Bureau of Statistics (NBS). From 2005 to 2024, agricultural GDP averaged 5,776,720.05 TZS Million, growing at a CAGR of ~11.2%, with 2024 marking an all-time high. Contributing 25.3% to Tanzania’s USD 79 billion economy in 2023, agriculture employs 65% of the workforce. Tanzania ranks 2nd in East Africa for agricultural GDP, behind Ethiopia’s USD 6.45 billion, and 9th in Africa for nominal GDP, ahead of Côte d’Ivoire (USD 86 billion) but trailing Nigeria (USD 252 billion).

Explanation of Figures and Years:

Recent Data and Growth Trends:

Contribution to National GDP:

Key Drivers of Agricultural GDP Growth:

Tanzania’s Position in Africa

Comparison with Other African Countries: The provided data lists agricultural GDP for several African countries in Q4 2024, but direct comparisons are challenging due to differing currencies and economic structures. To contextualize, I’ll convert Tanzania’s figures to USD for consistency (using approximate 2025 exchange rates where available) and compare with key countries, supplemented by web data on nominal GDP rankings.

Ranking in Africa:

Tanzania’s Position in East Africa

East African Context: East Africa is the continent’s fastest-growing region, with projected GDP growth of 4.9% in 2024 and 5.7% in 2025, driven by countries like Tanzania, Kenya, Uganda, Rwanda, and Ethiopia. Tanzania is a key player in this region, both economically and agriculturally.

Regional Leadership:

Insights and Challenges

Conclusion

Tanzania’s agricultural GDP of 11,252,481 TZS Million (USD 4.11 billion) in Q4 2024 underscores its robust agricultural sector, driven by cash crops and policy reforms. It ranks 2nd in East Africa behind Ethiopia in agricultural output and overall GDP (USD 79 billion), and 9th in Africa, ahead of Côte d’Ivoire but behind Nigeria and South Africa. Its agricultural contribution (25.3% of GDP) is higher than most regional peers, cementing its role as a key agricultural player, though diversification and climate resilience remain critical for sustained growth.

Key Figures Table

The table includes:

CountryRegionAgricultural GDP (Q4 2024, USD Billion)Nominal GDP (2024, USD Billion)Agriculture’s Share of GDP (%)Notes
TanzaniaEast Africa4.117925.3Surge driven by cashew nuts, tobacco; 65% workforce in agriculture.
KenyaEast Africa3.3710415-20Strong tea/coffee exports; ~40% workforce in agriculture.
EthiopiaEast Africa6.45127~35Largest agricultural sector in East Africa; coffee dominance.
UgandaEast Africa2.4345~24Coffee and maize exports; smaller scale than Tanzania.
RwandaEast Africa0.4813~25Limited by land size; focus on tea/coffee.
NigeriaWest Africa3.47252~20Largest African economy; agriculture less dominant than Tanzania.
South AfricaSouthern Africa6.433732-3Industrialized agriculture; smallest GDP share from agriculture.
EgyptNorth Africa14.09348~11Large-scale irrigation; highest agricultural GDP in Q4 2024.

Notes:

According to the National Bureau of Statistics (NBS) Tanzania, the GDP from mining in Tanzania reached 2,317,959 TZS million (approximately 0.923 billion USD at an exchange rate of about 2,510 TZS per USD) in the fourth quarter of 2024, up from 2,283,791.41 TZS million in the third quarter of 2024. This marks an all-time high, reflecting a year-on-year growth and a significant rise from the historical average of 1,004,540.49 TZS million (2005–2024). The lowest recorded value was 197,832.14 TZS million in Q4 2008, indicating a remarkable increase of over 1,000% in nominal terms over 16 years.

The growth in Tanzania’s mining GDP is driven by:

Tanzania’s Position in Africa

Tanzania’s mining GDP of 2,317,959 TZS million (approx. 0.923 billion USD) in Q4 2024 places it among the top contributors to mining GDP in Africa, though direct comparisons are challenging due to varying currencies and reporting periods. Below is a comparative analysis with key African countries based on the provided data (converted to USD where possible for consistency, using approximate exchange rates as of May 2025):

Ranking in Africa: Tanzania ranks among the top five African countries in mining GDP contribution, likely behind South Africa, Egypt, and Guinea, but ahead of Nigeria, Ghana, and Zambia in USD terms. Its 10.1% GDP share from mining in 2024 is notably high, compared to South Africa (approx. 7–8%) and Nigeria (less than 1%), underscoring mining’s critical role in Tanzania’s economy.

Tanzania’s Position in East Africa

In East Africa, Tanzania is a leader in mining GDP, surpassing regional peers:

East African Ranking: Tanzania is the top contributor to mining GDP in East Africa in Q4 2024, with a value nearly double that of Mozambique, the next closest competitor. Its 10.1% GDP share from mining far exceeds regional averages, where mining typically contributes 1–5% to GDP in countries like Kenya and Uganda. Tanzania’s leadership is further reinforced by its role in regional coal mining and its hosting of the East Africa Crude Oil Pipeline, enhancing its extractive sector prominence.

Additional Context and Figures

Conclusion

Tanzania’s mining GDP of 2,317,959 TZS million in Q4 2024 underscores its robust growth, driven by gold, gemstones, and strategic reforms. In Africa, it ranks among the top five mining economies, behind South Africa, Egypt, and Guinea, but ahead of Nigeria and Ghana. In East Africa, Tanzania is the undisputed leader, with a mining GDP nearly double that of Mozambique and significantly higher than Kenya, Uganda, and Rwanda. Its 10.1% GDP contribution from mining in 2024, coupled with rising tax revenues and export earnings, cements its position as a regional powerhouse, with potential for further growth in critical minerals and natural gas.

"Key Figures: Tanzania’s Mining Boom and Economic Development, 2008–2024"

CountryMining GDP (Local Currency, Q4 2024 unless noted)Mining GDP (USD, Approx.)Share of National GDP (Mining, %)Key MineralsNotes
Tanzania2,317,959 TZS million0.923 billion10.1% (2024)Gold, Tanzanite, Coal, Nickel, LithiumAll-time high in Q4 2024; historical avg. 1,004,540 TZS million (2005–2024); exports USD 3.6 billion (2020)
South Africa203,866 ZAR million11.5 billion7–8%Gold, Platinum, CoalAfrica’s top mining economy
Egypt252,968 EGP million5.1 billion~5%Phosphate, GoldStrong phosphate production
Guinea42,871 GNF billion (Dec 2023)4.9 billion~30%BauxiteData from 2023; bauxite-driven
Nigeria1,039,318 NGN million0.625 billion<1%Limestone, CoalSmaller mining sector despite large economy
Ghana6,579 GHS million0.446 billion~10%GoldThird-largest gold producer in Africa
Mozambique34,809 MZN million0.545 billion~10%Coal, GasSignificant gas potential
Kenya24,462 KES million0.189 billion~1%Soda Ash, GoldSmall-scale mining
Uganda835 UGX billion0.226 billion~2%Gold, LimestoneLargely artisanal
Rwanda50 RWF billion0.037 billion~2%Tin, TungstenMinimal mining sector
Zambia4,264 ZMW million0.165 billion~15%CopperCopper-dominated

Tanzania Metrics

MetricValueNotes
Historical Low (Mining GDP)197,832 TZS million (Q4 2008)Over 1,000% growth to Q4 2024
Tax Revenue (2023/2024)TZS 753.82 billion (USD 0.3 billion)20.7% increase year-on-year
Employment (2020)310,000 jobs19,356 new jobs by Mar 2024 (97% Tanzanian)
Mineral Exports (2020)USD 3.6 billionGold dominates; coal exports up from USD 23.2M to USD 228.6M
Total Exports (2024)USD 16.1 billion15.1% increase year-on-year

Notes

Tanzania’s food inflation rose to 5.4% in March 2025, a slight increase from 5.0% in February, but still remains below the country’s long-term average of 7.7% recorded between 2010 and 2025. This moderate inflation level reflects relative price stability in the country’s food sector despite global and regional challenges. Compared to its East African neighbors, Tanzania ranks 8th, performing better than Kenya (6.6%) and Ethiopia (11.9%), but trailing behind Uganda (2.0%) and Rwanda (3.5%). On a continental scale, Tanzania stands in the middle tier, significantly outperforming high-inflation countries like South Sudan (106%), Zimbabwe (105%), and Malawi (37.7%), indicating a relatively stable macroeconomic and food supply environment.

Tanzania Food Inflation: March 2025

This shows that Tanzania’s food inflation is currently below its long-term average, suggesting moderate food price pressures compared to historical trends.

Tanzania in Africa (Ranking)

Tanzania ranks 18th out of 42 African countries listed in terms of food inflation (from highest to lowest), placing it in the mid-range.

Tanzania in East Africa

Tanzania compares with selected East African countries:

CountryFood Inflation (%)MonthRank (EA)
South Sudan106.0Oct/241
Burundi38.7Feb/252
Malawi37.7Mar/253
Ethiopia11.9Mar/254
Mozambique12.08Mar/255
Zambia18.7Apr/256
Kenya6.6Mar/257
Tanzania5.4Mar/258
Rwanda3.5Mar/259
Uganda2.0Mar/2510

Tanzania ranks 8th among East African countries based on current food inflation. It is lower than Kenya (6.6%), but higher than Uganda (2%) and Rwanda (3.5%).

Top 10 African Countries with Highest Food Inflation (Mar 2025)

RankCountryFood Inflation (%)
1South Sudan106.0
2Zimbabwe105.0
3Burundi38.7
4Malawi37.7
5Ghana26.5
6Angola25.3
7Nigeria21.8
8Zambia18.7
9Niger13.5
10Liberia12.7

These countries are facing severe food price pressures, likely due to economic instability, currency depreciation, or supply chain issues.

Summary Insights:

Tanzania’s food inflation (5.4% in March 2025) with several important things at national, regional, and continental levels:

1. National Insights (Tanzania)

2. Regional Comparison (East Africa)

3. Continental Position (Africa)

Overall Interpretation

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