Economic Sector In Tanzania

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1. Introduction and Background of the Relations between Tanzania and China: Tanzania is the union of Tanganyika and Zanzibar. Tanganyika obtained its independence on 9th December, 1961 while Zanzibar obtained its independence through a peaceful revolution on 12th January 1962. Tanganyika and Zanzibar formed a Union on 26th April, 1964 which exists until today. The political ideology of Tanzania had been socialism and self-reliance since independence until recently where it started to welcome some capitalist economic approaches which include privatization of the economy which reduced the government involvement in running the economy of the country. This mixed political ideology took its shape in 1990’s whereby the country witnessed a big…show more content…
Natural resources are used for crops cultivation, grazing (for livestock), wildlife, wood (as an energy source and for building materials), fishing and minerals ' mining. Apart from wealth in agriculture, forestry and wildlife land, Tanzania is also very rich in minerals such as gold, diamond, iron, coal, nickel, tanzanite, uranium and natural gas.Recently natural offshore gas deposits have been…show more content…
The share of agriculture industry in Tanzania economy is low, accounting for around 20 per cent and its share is declining. Mining industry is becoming a major contributing sector in Tanzanian economy. Tanzania share to world output has never reached 0.1% for about 40 years to date; it has generally declining. Foreign trade accounts for significant share of Tanzania GDP; it accounts for at least 60 per cent of GDP. Imports accounts for higher share of foreign trade leading to consistent trade deficit in Tanzania. Tanzania imports alone account for almost 40% of gross domestic product The level of economic diversification in Tanzania is limited, whereby, trade is dominated by primary products (agricultural and minerals). It is characterized by the limited level of value addition. Diversification has the potential to not only increase value and earnings, but also to ensure resilient and stable trade. It may also subject the country from less vulnerable to adverse terms-of-trade shocks by stabilizing export revenues, and in recent years it has become a leading goal in many developing economies development strategies. Foreign trade is therefore analyzed in terms of structure, pattern and

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