Tanzania's Mining GDP Leads Africa, Yet Overall Economy Lags Behind Peers" Despite Tanzania's impressive performance in the mining sector, with GDP from mining reaching an all-time high of 2,137,627.97 TZS million in Q4 2023, the country's overall economy lags behind peers like South Africa, Kenya, Nigeria, Egypt, and Guinea. Contributing factors include limited economic diversification, […]
Despite Tanzania's impressive performance in the mining sector, with GDP from mining reaching an all-time high of 2,137,627.97 TZS million in Q4 2023, the country's overall economy lags behind peers like South Africa, Kenya, Nigeria, Egypt, and Guinea. Contributing factors include limited economic diversification, less developed infrastructure, varying degrees of good governance, could be less favorable investment climates, lower levels of education and human capital, and differences in natural resource management. For instance, South Africa and Nigeria have more diversified economies and advanced infrastructures, while Kenya and Egypt benefit from pro-business policies and significant economic reforms. Tanzania's economic growth depends on addressing these broader structural issues to leverage its mining success into wider economic development:
Tanzania's Mining GDP Overview
GDP Growth in Mining:
Q4 2023: Tanzania's GDP from mining reached an all-time high of 2,137,627.97 TZS million.
Q3 2023: The GDP from mining was 2,026,632.67 TZS million.
This indicates a notable quarter-over-quarter increase.
Historical Context:
The average GDP from mining between 2005 and 2023 is 943,824.06 TZS million.
The lowest recorded GDP from mining was 197,832.14 TZS million in Q4 2008.
Future Projections:
By the end of the current quarter, GDP from mining is expected to be 1,871,303.00 TZS million.
Long-term projections estimate GDP from mining will be around 2,281,421.00 TZS million in 2025 and 2,420,588.00 TZS million in 2026.
Comparison with Other African Countries
The comparison data shows the latest GDP figures from mining for several African countries. The figures are presented in the respective currencies of each country:
Country
Last
Previous
Reference
Unit
Tanzania
2137628
2026633
Dec/23
TZS Million
Nigeria
1165280
1024207
Mar/24
NGN Million
Egypt
216408
234006
Dec/23
EGP Million
South Africa
204870
200134
Dec/23
ZAR Million
Guinea
202903
25946
Dec/22
GNF Billion
Malawi
55027
52449
Dec/22
MWK Million
Kenya
25202
27593
Dec/23
KES Million
Mozambique
16573
17890
Dec/23
MZN Million
Botswana
11035
10600
Dec/23
BWP Million
Angola
9721
9340
Dec/23
AOA Million
Insights
Tanzania stands out with a significantly higher GDP from mining compared to other countries listed, demonstrating its leading position in the sector within Africa.
The figures from Nigeria and South Africa also indicate strong mining sectors, though the figures are in their local currencies which require conversion for direct comparison.
Countries like Guinea, Malawi, Kenya, and Mozambique show more modest contributions from their mining sectors.
Botswana and Angola have lower figures, highlighting smaller scale mining operations or less contribution to GDP from mining compared to the leading nations.
Source and Reliability
The data source is the National Bureau of Statistics (NBS) - Tanzania, which ensures reliability for Tanzania's figures. The projections and historical averages provide a comprehensive view of the trends and future expectations in Tanzania's mining sector.
Hence, Tanzania's mining sector is experiencing substantial growth, making it a leader in Africa for GDP contributions from mining activities. The country's strategic focus on mining is evident in its upward trend and future projections, indicating continued growth and potential for investment and development in this sector.
Despite Tanzania leading in GDP contributions from mining, its overall economy appears to lag behind countries like South Africa, Kenya, Nigeria, Egypt, and Guinea for reasons behinds
Tanzania's impressive mining GDP contribution is significant, but overall economic performance depends on a combination of factors including diversification, infrastructure, political stability, investment climate, education, natural resource management, and market size.
Economic Diversification
South Africa: Highly diversified economy with strong sectors in finance, manufacturing, services, and mining.
Nigeria: Largest economy in Africa, heavily reliant on oil, but also growing in agriculture, telecommunications, and services.
Egypt: Diverse economy with strong sectors in tourism, agriculture, services, and manufacturing.
Kenya: Strong in agriculture, tourism, services, and emerging technology sectors.
Guinea: Rich in natural resources, particularly bauxite, with mining being a significant part of the economy, but also focusing on agriculture and services.
Infrastructure Development
South Africa: Advanced infrastructure in transportation, energy, and telecommunications.
Nigeria: Improving infrastructure with large investments in energy and transportation.
Egypt: Significant infrastructure investments, particularly in the Suez Canal and energy sectors.
Kenya: Rapidly developing infrastructure, especially in transportation (e.g., Standard Gauge Railway) and energy.
Guinea: Investments in mining infrastructure and hydroelectric power projects.
Political Stability and Governance
Political stability and effective governance significantly impact economic growth and investor confidence.
South Africa and Kenya have relatively stable political environments compared to Tanzania.
Nigeria has challenges but is improving in governance.
Egypt has stabilized post-Arab Spring with significant economic reforms.
Guinea has faced political instability but is working towards stability and better governance.
Investment and Economic Policies
Countries with more favorable investment climates and policies attract more foreign direct investment (FDI).
South Africa: Well-developed financial systems and regulatory environment attract investments.
Nigeria: Efforts to improve business climate, though challenges remain.
Egypt: Economic reforms and incentives attract significant FDI.
Kenya: Pro-business policies and innovation hubs (e.g., Silicon Savannah).
Guinea: Mining reforms and incentives for foreign investors.
Human Capital and Education
The level of education and skill development affects productivity and economic growth.
South Africa, Kenya, and Egypt have better educational systems and higher literacy rates, contributing to a more skilled workforce.
Nigeria is making strides in education but still faces challenges.
Guinea is improving but still has significant gaps in education and skills development.
Natural Resource Management
Effective management and utilization of natural resources can drive economic growth.
South Africa: Well-managed mineral resources and diversified natural resource base.
Nigeria: Oil and gas resources are crucial but require better management.
Egypt: Efficient use of the Suez Canal and other natural resources.
Kenya: Efficient use of agricultural resources and growing oil industry.
Guinea: Rich in minerals, especially bauxite, with improving management.
Economic Size and Population
Larger economies and populations can drive higher GDP due to greater domestic markets and labor force.
Nigeria: Largest population in Africa, creating a large domestic market.
Egypt: Large population with significant economic activities.
South Africa: Well-developed economy with a large population.