FOREIGN RELATIONS

FOREIGN RELATIONS

Apart from a border dispute with Malawi, Tanzania has good relations with its neighbours. It is a member of the East African Community (EAC), along with Uganda, Kenya, Rwanda, and Burundi.^[36] Within the EAC, there is free trade and free movement of people, including the right to reside in another member country for the purpose of employment. Tanzania is also a member of the Southern African Development Community (SADC). The EAC, the SADC, and the Common Market for Eastern and Southern Africa are currently negotiating an agreement to create a Tripartite Free Trade Area spanning 26 African countries. Relations between Tanzania and Malawi are tense due to a dispute over the countries' Lake Nyasa (Lake Malawi) border; an unsuccessful mediation took place regarding the issue in 2014. Tanzania–China relations have strengthened in recent years as trade between the two countries has increased, and the Chinese have invested in Tanzanian infrastructure.

 Relations with the United States are warm; Barack Obama visited Tanzania in 2013. Tanzania's relations with other donor countries, including Japan and members of the European Union, are generally good, though donors are concerned about Tanzania's commitment to reducing government corruption.

ECONOMY AND INFRASTRUCTURE

Bank of Tanzania Twin Towers

Main articles: Economy of Tanzania, Transport in Tanzania, Energy in Tanzania and Telecommunications in Tanzania

As of 2013, Tanzania's gross domestic product was an estimated $32.536 billion, or $79.388 billion on a purchasing power parity (PPP) basis. 

Tanzania remains a poor country, with a per capita GDP of $1,715 (PPP), a figure on par with those of other sub-Saharan African countries. In recent years, Tanzania's growth has been strong in comparison with other sub-Saharan countries, with annual growth averaging 7%.The country weathered the global recession relatively well due to strong gold prices (which bolstered its mining industry) and the country's poor integration into global markets. Since the downturn, the Tanzanian economy has continued to expand rapidly thanks to strong tourism, telecommunications, and banking sectors. Tanzania's recent economic growth has resulted in a modest reduction of the official poverty rate, which decreased from 38.6% in 1991 to 33.4% in 2007. 

The economy is heavily based on agriculture, which accounts for more than 25% of gross domestic product, provides 85% of exports, and employs 80% of the workforce;12.25% of the land is arable, but only 1.79% of the land is planted with permanent crops. Maize dominates much of the country, with cassava, rice, millet, sorghum and coffee also grown. According to the 2002 National Irrigation Master Plan, 29.4 million hectares in Tanzania are suitable for irrigation farming; however, only 310,745 hectares in June 2011 were actually being irrigated.

Industry is a major and growing component of the Tanzanian economy, contributing 25% of GDP as of 2011. Strong mining and construction sectors have contributed to Tanzania's industrial production. 

Tourism contributes approximate 15% of Tanzania's GDP, but employs less than 2% of the country's labor force (even when considering jobs created indirectly). The sector is rapidly expanding, with an annual growth rate of over 10% in the 2000s. The vast majority of tourists visit Zanzibar or a "northern circuit" of Serengeti National Park, the Ngorongoro Crater, and Mount Kilimanjaro. Despite its superior tourist attractions, Tanzania's tourism industry has lagged behind Kenya's, which has superior infrastructure and marketing.

Williamson diamond mine

Songo Songo Gas Plant

Mining contributes just over three percent of Tanzania's GDP, though the sector is growing rapidly Most of Tanzania's mineral export revenue comes from gold; it also exports sizable quantities of precious and semiprecious gemstones, including diamonds and tanzanite. Other minerals exploited in Tanzania include soda ash, salt, coal, nickel, tin, phosphates, gypsum, kaolin, limestone, and graphite. Commercial production of natural gas from the Songo Songo Island in the Indian Ocean off the Rufiji Delta commenced in 2004, with the gas being transported by pipeline to Dar es Salaam. The bulk of the gas is converted to electricity by both public utility and private operators. A new gas field is being brought on stream in Mnazi Bay.

The Bank of Tanzania is the central bank of Tanzania and is primarily responsible for maintaining price stability, with a subsidiary responsibility for issuing Tanzanian shilling notes and coins.^[51] At the end of 2011, the total assets of the Tanzanian banking industry was US$11.3 billion, a 17% increase over 2010.

Air Tanzania is the flag carrier

Rovos Rail, a luxury train entering a tunnel on the TAZARA line

Most transport in Tanzania is by road; road transport constitutes over 75% of the country's freight traffic and 80% of its passenger traffic.The 86,500-kilometer road system is in generally poor condition. Tanzania has two railway companies: TAZARA, which provides service between Dar es Salaam and Kapiri Mposhi (in a copper-mining district in Zambia), and Tanzania Railways Limited, which connects Dar es Salaam with central and northern Tanzania. Rail travel in Tanzania often entails slow journeys with frequent cancellations or delays; the railways also have a deficient safety record. Tanzania has four international airports, along with over 100 small airports or landing strips; airport infrastructure tends to be in poor condition. Airlines in Tanzania include Air Tanzania, Precision Air, Fastjet, Coastal Aviation, and zanair. Several modern hydrofoil boats provide transportation across the Indian Ocean between Dar es Salaam and Zanzibar.

Most electricity in Tanzania is generated using gas; hydropower is also a significant source of power. Though the country's supply of electricity nearly doubled between 2005 and 2011, only about 20% of Tanzanians are on the electrical grid. The electrical supply varies, particularly when droughts disrupt hydropower electric generation; rolling blackouts are implemented as necessary. Nearly a quarter of electricity generated is lost because of poor transmission infrastructure. The unreliability of the electrical supply has hindered the development of Tanzanian industry.

As of 2011, Tanzania had 56 mobile telephone subscribers per 100 inhabitants, a rate slightly above the sub-Saharan average. Very few Tanzanians have fixed-line telephones. Approximately 12% of Tanzanians used the internet as of 2011, though this number is rapidly growing. The country has a fiber-optic cable network that recently replaced unreliable satellite service, but internet bandwidth remains very low.