Tanzania – Agriculture, Mining, Tourism – Britannica

 

Economic Report: Tanzania’s Development Trajectory and Alignment with Sustainable Development Goals (SDGs)

Historical Economic Context and Policy Shifts

Tanzania’s economic framework has undergone significant transformation. Initially, the economy was predominantly agrarian, guided by the 1967 Arusha Declaration which instituted socialist development and central planning. This policy led to the nationalization of key industries and public services. However, this centrally planned model ultimately contributed to economic decline, necessitating a strategic pivot.

The late 1970s and 1980s were marked by a severe economic crisis, characterized by high inflation and a widening trade deficit. This crisis prompted the government to seek assistance from the International Monetary Fund (IMF) in 1986. The subsequent structural adjustments involved liberalizing the economy, which laid the groundwork for pursuing stable, long-term growth in line with key Sustainable Development Goals, particularly SDG 8 (Decent Work and Economic Growth) and SDG 1 (No Poverty).

Agriculture, Forestry, and Fisheries: Foundations for Sustainable Livelihoods

Agricultural Sector and Food Security (SDG 2)

The agricultural sector remains the cornerstone of the Tanzanian economy, employing approximately two-fifths of the population and accounting for a similar share of the Gross Domestic Product (GDP). This sector is critical for achieving SDG 2 (Zero Hunger).

• Major Food Crops: Corn (maize), rice, sorghum, millet, and bananas form the primary food staples.
• Famine-Prevention Crops: Drought-resistant crops such as cassava and sweet potatoes are cultivated to ensure food security during adverse climate conditions.
• Commercial Food Production: In regions like Ruvuma and Rukwa, surplus food crops like corn and rice are sold, contributing to local economies and food distribution.

Government initiatives to distribute improved seeds and fertilizers aim to boost yields, directly supporting the goal of enhancing agricultural productivity and ensuring food availability.

Export Crops and Economic Growth (SDG 8)

Cash crops are a vital source of foreign exchange, essential for financing national development and advancing SDG 8 (Decent Work and Economic Growth).

1. Coffee and Cotton: These are the most significant agricultural exports.
2. Other Key Exports: Cashew nuts, tea, tobacco, and sisal also contribute substantially to export revenues.
3. Cloves: While historically dominant, Zanzibar’s clove production now constitutes a smaller portion of the global market but remains an important export.

Sustainable Management of Natural Resources (SDG 14 & SDG 15)

Tanzania’s forests and water bodies are crucial natural assets whose sustainable management is vital for environmental health and economic stability.

• Forestry (SDG 15 – Life on Land): The country possesses hardwood forests and is expanding its softwood production to supply industries like the Mufindi pulp and paper mill. However, deforestation remains a significant challenge, directly impacting this goal.
• Fisheries (SDG 14 – Life Below Water): Lake Victoria is a major source of fish, while coastal fisheries and prawn harvesting in the Rufiji River delta support local livelihoods. Sustainable management of these aquatic resources is essential for long-term viability.

Resources and Energy Sector: Challenges and Opportunities

Mineral Resources and Economic Contribution (SDG 8)

The mining sector is a key driver of the economy, with gold being the country’s most valuable export. The exploitation of these resources contributes directly to SDG 8 (Decent Work and Economic Growth).

• Key Minerals: Gold, diamonds, tanzanite, kaolin, gypsum, and tin.
• Undeveloped Deposits: Large reserves of coal, phosphates, and nickel present future opportunities for economic expansion.
• Energy Resources: Discovery of natural gas at Songo Songo Island offers potential for cleaner energy development.

Energy Access and Transition (SDG 7)

Achieving SDG 7 (Affordable and Clean Energy) is a critical challenge for Tanzania. The current energy landscape presents both problems and potential solutions.

• Energy Sources: The country relies on imported petroleum, hydroelectric power, and coal for commercial energy.
• Access Issues: A large portion of the population, particularly in rural areas, is not connected to the main power grid.
• Environmental Concerns: Widespread use of firewood and charcoal for domestic fuel is a primary cause of deforestation, undermining SDG 15 (Life on Land).
• Future Plans: Rural electrification projects and the development of natural gas resources are strategic priorities aimed at expanding energy access and promoting cleaner fuel alternatives.

Industrial and Financial Sector Development

Manufacturing and Industrialization (SDG 9)

Tanzania’s industrial strategy focuses on processing agricultural products and import substitution. However, progress towards SDG 9 (Industry, Innovation, and Infrastructure) has been constrained by several factors.

• Principal Industries: Food processing, textiles, brewing, cigarettes, cement, and battery manufacturing.
• Obstacles to Growth: The economic crisis of the 1980s hindered the development of basic industries. Persistent challenges include a lack of foreign exchange to import necessary materials and an inadequate power supply, which remains a significant barrier to manufacturing development.

Financial System Reforms and Partnerships (SDG 17)

Reforms in the financial sector have been crucial for creating a more dynamic and stable economic environment. This process highlights the importance of SDG 17 (Partnerships for the Goals).

• Liberalization: The banking sector, once fully nationalized, was opened to private and foreign-owned banks after 1992.
• Institutions: The Bank of Tanzania serves as the central bank, and the Dar es Salaam Stock Exchange has been operational since 1998.
• International Cooperation: The IMF’s provision of credit facilities was instrumental in enabling the rehabilitation of industry and stabilizing the economy, demonstrating a partnership for achieving national development objectives.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on Tanzania’s economy touches upon several issues that are directly and indirectly related to the Sustainable Development Goals. Based on the text, the following SDGs can be identified:

• SDG 1: No Poverty – The article discusses an economic crisis, the need for an IMF loan, and the subsequent elimination of subsidies and social services, which are all directly linked to the economic well-being and poverty levels of the population.
• SDG 2: Zero Hunger – There is a significant focus on the agrarian nature of the economy, food crops like corn and rice, famine-prevention crops, and efforts to improve agricultural yields, all of which are central to food security and ending hunger.
• SDG 7: Affordable and Clean Energy – The text explicitly mentions energy sources, the lack of access to the main power grid for many Tanzanians, especially in villages, and the reliance on firewood and charcoal, which leads to deforestation.
• SDG 8: Decent Work and Economic Growth – The entire article revolves around Tanzania’s economy, including its structure (agrarian, state-run, mixed), economic decline and recovery efforts, the role of agriculture in GDP, and employment in the agricultural sector.
• SDG 9: Industry, Innovation, and Infrastructure – The article details the country’s manufacturing sector, its basis on import substitution, plans for industrial growth (steel, chemicals), and the challenges faced, such as inadequate power supply, which is a key infrastructure issue.
• SDG 15: Life on Land – The mention of deforestation resulting from the use of firewood and charcoal as domestic fuel directly relates to the protection and sustainable management of forests.

2. What specific targets under those SDGs can be identified based on the article’s content?

Several specific SDG targets can be inferred from the article’s discussion of Tanzania’s challenges and economic activities:

1. Under SDG 1 (No Poverty):
   • Target 1.3: Implement nationally appropriate social protection systems. The article’s mention of the “elimination of subsidies and price controls as well as some social services” due to IMF loan conditions highlights the challenges related to maintaining social protection floors.
2. Under SDG 2 (Zero Hunger):
   • Target 2.3: Double the agricultural productivity and incomes of small-scale food producers. The article points to this target by stating that “two-fifths of the country’s population is engaged in agricultural production” and mentioning government efforts to distribute “improved seed corn and fertilizers” to achieve “increased yields.”
   • Target 2.4: Ensure sustainable food production systems. The focus on drought-resistant crops like “cassava and sweet potatoes are used as famine-prevention crops” aligns with building resilient agricultural practices.
3. Under SDG 7 (Affordable and Clean Energy):
   • Target 7.1: Ensure universal access to affordable, reliable and modern energy services. This is directly addressed when the article states, “Many Tanzanians are unable to access the main power grid” and that there are “plans to take electricity to villages.”
   • Target 7.2: Increase substantially the share of renewable energy in the global energy mix. The reliance on “Firewood and charcoal” as major domestic fuels indicates a low share of modern and renewable energy, while the mention of “hydroelectric power” points to an existing renewable source.
4. Under SDG 8 (Decent Work and Economic Growth):
   • Target 8.1: Sustain per capita economic growth. The article’s narrative of economic decline, crisis, and subsequent implementation of measures to create a “mixed economy” is centered on achieving stable economic growth.
   • Target 8.2: Achieve higher levels of economic productivity through diversification and technological upgrading. The discussion of moving from an overwhelmingly agrarian economy to developing industries like “steel, chemicals, rubber, and textiles” reflects this goal.
5. Under SDG 9 (Industry, Innovation, and Infrastructure):
   • Target 9.2: Promote inclusive and sustainable industrialization. The article describes Tanzania’s industry based on “processing of its agricultural goods” and a strategy for the “rapid growth of such basic industries.”
   • Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable. The text identifies that “Difficulty in obtaining adequate power supply” remains an “obstacle to the development of manufacturing capabilities,” highlighting a critical infrastructure gap.
6. Under SDG 15 (Life on Land):
   • Target 15.2: Promote the implementation of sustainable management of all types of forests, halt deforestation. This is directly implicated by the statement that the use of “Firewood and charcoal are the major domestic fuels, contributing to a growing concern about deforestation.”

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article provides several qualitative and quantitative points that can serve as indicators for measuring progress:

• For Target 2.3 (Agricultural Productivity): An indicator is the “Proportion of the population engaged in agricultural production,” which the article states is “two-fifths.” Another is the “share of agriculture in the country’s gross domestic product,” noted as approximately the same proportion. “Increased yields” from fertilizers is a direct qualitative indicator of productivity.
• For Target 7.1 (Access to Energy): A key indicator is the “Proportion of the population with access to electricity.” The article implies this is low by stating, “Many Tanzanians are unable to access the main power grid,” and noting a disparity where the “majority of those connected reside in urban areas.”
• For Target 7.2 (Renewable Energy): An indicator is the “Proportion of energy consumption from different sources.” The article identifies these sources as “Imported petroleum, hydroelectric power, and coal” for commercial energy and “Firewood and charcoal” for domestic fuel.
• For Target 8.1 (Economic Growth): The “Annual growth rate of real GDP” is the primary indicator, which is implied through the narrative of “marked economic decline” followed by measures to stimulate the economy.
• For Target 9.2 (Industrialization): The “Contribution of the manufacturing sector to GDP” is a relevant indicator. The article describes the components of this sector (food processing, textiles, cement, etc.), providing a basis for this measurement.
• For Target 15.2 (Halting Deforestation): A direct, though qualitative, indicator mentioned is the “growing concern about deforestation” linked directly to the use of firewood and charcoal as primary domestic fuels. This suggests that the rate of deforestation is a key metric to track.

4. Summary Table of SDGs, Targets, and Indicators

SDGs	Targets	Indicators Identified in the Article
SDG 1: No Poverty	1.3: Implement nationally appropriate social protection systems.	Qualitative: The “elimination of subsidies and price controls as well as some social services” as a condition of an IMF loan.
SDG 2: Zero Hunger	2.3: Double the agricultural productivity and incomes of small-scale food producers.	Quantitative: “Two-fifths of the country’s population is engaged in agricultural production.” Qualitative: “Increased yields, attributed to the use of chemical fertilizers.”
SDG 7: Affordable and Clean Energy	7.1: Ensure universal access to affordable, reliable and modern energy services.	Qualitative: “Many Tanzanians are unable to access the main power grid.” Qualitative: Existence of “plans to take electricity to villages.”
SDG 8: Decent Work and Economic Growth	8.2: Achieve higher levels of economic productivity through diversification.	Qualitative: Description of an “overwhelmingly agrarian” economy with efforts to grow basic industries like “steel, chemicals, rubber, and textiles.”
SDG 9: Industry, Innovation, and Infrastructure	9.4: Upgrade infrastructure and retrofit industries to make them sustainable.	Qualitative: “Difficulty in obtaining adequate power supply” is cited as an obstacle to manufacturing development.
SDG 15: Life on Land	15.2: Promote sustainable management of all types of forests, halt deforestation.	Qualitative: “Firewood and charcoal are the major domestic fuels, contributing to a growing concern about deforestation.”

Source: britannica.com