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Tanzania vs. Democratic Republic of the Congo

Economy

TanzaniaDemocratic Republic of the Congo
Economy - overview

Tanzania has achieved high growth rates based on its vast natural resource wealth and tourism with GDP growth in 2009-17 averaging 6%-7% per year. Dar es Salaam used fiscal stimulus measures and easier monetary policies to lessen the impact of the global recession and in general, benefited from low oil prices. Tanzania has largely completed its transition to a market economy, though the government retains a presence in sectors such as telecommunications, banking, energy, and mining.

The economy depends on agriculture, which accounts for slightly less than one-quarter of GDP and employs about 65% of the work force, although gold production in recent years has increased to about 35% of exports. All land in Tanzania is owned by the government, which can lease land for up to 99 years. Proposed reforms to allow for land ownership, particularly foreign land ownership, remain unpopular.

The financial sector in Tanzania has expanded in recent years and foreign-owned banks account for about 48% of the banking industry's total assets. Competition among foreign commercial banks has resulted in significant improvements in the efficiency and quality of financial services, though interest rates are still relatively high, reflecting high fraud risk. Banking reforms have helped increase private-sector growth and investment.

The World Bank, the IMF, and bilateral donors have provided funds to rehabilitate Tanzania's aging infrastructure, including rail and port, which provide important trade links for inland countries. In 2013, Tanzania completed the world's largest Millennium Challenge Compact (MCC) grant, worth $698 million, but in late 2015, the MCC Board of Directors deferred a decision to renew Tanzania’s eligibility because of irregularities in voting in Zanzibar and concerns over the government's use of a controversial cybercrime bill.

The new government elected in 2015 has developed an ambitious development agenda focused on creating a better business environment through improved infrastructure, access to financing, and education progress, but implementing budgets remains challenging for the government. Recent policy moves by President MAGUFULI are aimed at protecting domestic industry and have caused concern among foreign investors.

The economy of the Democratic Republic of the Congo - a nation endowed with vast natural resource wealth - continues to perform poorly. Systemic corruption since independence in 1960, combined with countrywide instability and intermittent conflict that began in the early-90s, has reduced national output and government revenue, and increased external debt. With the installation of a transitional government in 2003 after peace accords, economic conditions slowly began to improve as the government reopened relations with international financial institutions and international donors, and President KABILA began implementing reforms. Progress on implementing substantive economic reforms remains slow because of political instability, bureaucratic inefficiency, corruption, and patronage, which also dampen international investment prospects.

Renewed activity in the mining sector, the source of most export income, boosted Kinshasa's fiscal position and GDP growth until 2015, but low commodity prices have led to slower growth, volatile inflation, currency depreciation, and a growing fiscal deficit. An uncertain legal framework, corruption, and a lack of transparency in government policy are long-term problems for the large mining sector and for the economy as a whole. Much economic activity still occurs in the informal sector and is not reflected in GDP data.

Poverty remains widespread in DRC, and the country failed to meet any Millennium Development Goals by 2015. DRC also concluded its program with the IMF in 2015. The price of copper – the DRC’s primary export - plummeted in 2015 and remained at record lows during 2016-17, reducing government revenues, expenditures, and foreign exchange reserves, while inflation reached nearly 50% in mid-2017 – its highest level since the early 2000s.

GDP (purchasing power parity)
$162.5 billion (2017 est.)
$153.3 billion (2016 est.)
$143.3 billion (2015 est.)

note: data are in 2017 dollars

$68.6 billion (2017 est.)
$66.33 billion (2016 est.)
$64.78 billion (2015 est.)

note: data are in 2017 dollars

GDP - real growth rate
6.98% (2019 est.)
6.95% (2018 est.)
6.78% (2017 est.)
3.4% (2017 est.)
2.4% (2016 est.)
6.9% (2015 est.)
GDP - per capita (PPP)
$3,200 (2017 est.)
$3,100 (2016 est.)
$3,000 (2015 est.)

note: data are in 2017 dollars

$800 (2017 est.)
$800 (2016 est.)
$800 (2015 est.)

note: data are in 2017 dollars

GDP - composition by sector
agriculture: 23.4% (2017 est.)
industry: 28.6% (2017 est.)
services: 47.6% (2017 est.)
agriculture: 19.7% (2017 est.)
industry: 43.6% (2017 est.)
services: 36.7% (2017 est.)
Population below poverty line
22.8% (2015 est.)
63% (2014 est.)
Household income or consumption by percentage share
lowest 10%: 2.8%
highest 10%: 29.6% (2007)
lowest 10%: 2.3%
highest 10%: 34.7% (2006)
Inflation rate (consumer prices)
5.3% (2017 est.)
5.2% (2016 est.)
41.5% (2017 est.)
18.2% (2016 est.)
Labor force
24.89 million (2017 est.)
20.692 million (2012 est.)
Labor force - by occupation
agriculture: 66.9%
industry: 6.4%
services: 26.6% (2014 est.)
agriculture: NA
industry: NA
services: NA
Unemployment rate
10.3% (2014 est.)

NA

Distribution of family income - Gini index
37.6 (2007)
34.6 (2000)
42.1 (2012 est.)
Budget
revenues: 7.873 billion (2017 est.)
expenditures: 8.818 billion (2017 est.)
revenues: 4.634 billion (2017 est.)
expenditures: 5.009 billion (2017 est.)
Industries
agricultural processing (sugar, beer, cigarettes, sisal twine); mining (diamonds, gold, and iron), salt, soda ash; cement, oil refining, shoes, apparel, wood products, fertilizer
mining (copper, cobalt, gold, diamonds, coltan, zinc, tin, tungsten), mineral processing, consumer products (textiles, plastics, footwear, cigarettes), metal products, processed foods and beverages, timber, cement, commercial ship repair
Industrial production growth rate
12% (2017 est.)
1.6% (2017 est.)
Agriculture - products
coffee, sisal, tea, cotton, pyrethrum (insecticide made from chrysanthemums), cashew nuts, tobacco, cloves, corn, wheat, cassava (manioc, tapioca), bananas, fruits, vegetables; cattle, sheep, goats
coffee, sugar, palm oil, rubber, tea, cotton, cocoa, quinine, cassava (manioc, tapioca), bananas, plantains, peanuts, root crops, corn, fruits; wood products
Exports
$4.971 billion (2017 est.)
$5.697 billion (2016 est.)
$10.98 billion (2017 est.)
$8.228 billion (2016 est.)
Exports - commodities
gold, coffee, cashew nuts, manufactures, cotton
diamonds, copper, gold, cobalt, wood products, crude oil, coffee
Exports - partners
India 21.8%, South Africa 17.9%, Kenya 8.8%, Switzerland 6.7%, Belgium 5.9%, Democratic Republic of the Congo 5.8%, China 4.8% (2017)
China 41.4%, Zambia 22.7%, South Korea 7.2%, Finland 6.2% (2017)
Imports
$7.869 billion (2017 est.)
$8.464 billion (2016 est.)
$10.82 billion (2017 est.)
$10.21 billion (2016 est.)
Imports - commodities
consumer goods, machinery and transportation equipment, industrial raw materials, crude oil
foodstuffs, mining and other machinery, transport equipment, fuels
Imports - partners
India 16.5%, China 15.8%, UAE 9.2%, Saudi Arabia 7.9%, South Africa 5.1%, Japan 4.9%, Switzerland 4.4% (2017)
China 19.9%, South Africa 18%, Zambia 10.4%, Belgium 9.1%, India 4.3%, Tanzania 4.2% (2017)
Debt - external
$17.66 billion (31 December 2017 est.)
$15.21 billion (31 December 2016 est.)
$4.963 billion (31 December 2017 est.)
$5.35 billion (31 December 2016 est.)
Exchange rates
Tanzanian shillings (TZS) per US dollar -
2,243.8 (2017 est.)
2,177.1 (2016 est.)
2,177.1 (2015 est.)
1,989.7 (2014 est.)
1,654 (2013 est.)
Congolese francs (CDF) per US dollar -
1,546.8 (2017 est.)
1,010.3 (2016 est.)
1,010.3 (2015 est.)
925.99 (2014 est.)
925.23 (2013 est.)
Fiscal year
1 July - 30 June
calendar year
Public debt
37% of GDP (2017 est.)
38% of GDP (2016 est.)
18.1% of GDP (2017 est.)
19.3% of GDP (2016 est.)
Reserves of foreign exchange and gold
$5.301 billion (31 December 2017 est.)
$4.067 billion (31 December 2016 est.)

note: excludes gold

$457.5 million (31 December 2017 est.)
$708.2 million (31 December 2016 est.)
Current Account Balance
-$1.313 billion (2019 est.)
-$1.898 billion (2018 est.)
-$200 million (2017 est.)
-$1.215 billion (2016 est.)
GDP (official exchange rate)
$51.76 billion (2017 est.)
$41.44 billion (2017 est.)
Market value of publicly traded shares
$1.803 billion (31 December 2012 est.)
$1.539 billion (31 December 2011 est.)
$1.264 billion (31 December 2010 est.)

NA

Central bank discount rate
8.25% (31 December 2010)
3.7% (31 December 2009)
20% (31 December 2017)
20% (31 December 2011)
Commercial bank prime lending rate
17.62% (31 December 2017 est.)
15.96% (31 December 2016 est.)
20.62% (31 December 2017 est.)
19.05% (31 December 2016 est.)
Stock of domestic credit
$9.045 billion (31 December 2017 est.)
$9.616 billion (31 December 2016 est.)
$3.252 billion (31 December 2017 est.)
$3.582 billion (31 December 2016 est.)
Stock of narrow money
$5.002 billion (31 December 2017 est.)
$4.641 billion (31 December 2016 est.)
$1.044 billion (31 December 2017 est.)
$1.192 billion (31 December 2016 est.)
Stock of broad money
$5.002 billion (31 December 2017 est.)
$4.641 billion (31 December 2016 est.)
$1.044 billion (31 December 2017 est.)
$1.192 billion (31 December 2016 est.)
Taxes and other revenues
15.2% (of GDP) (2017 est.)
11.2% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)
-1.8% (of GDP) (2017 est.)
-0.9% (of GDP) (2017 est.)
Unemployment, youth ages 15-24
total: 3.9%
male: 3.1%
female: 4.6% (2014 est.)
total: 8.7%
male: 11.3%
female: 6.8% (2012 est.)
GDP - composition, by end use
household consumption: 62.4% (2017 est.)
government consumption: 12.5% (2017 est.)
investment in fixed capital: 36.1% (2017 est.)
investment in inventories: -8.7% (2017 est.)
exports of goods and services: 18.1% (2017 est.)
imports of goods and services: -20.5% (2017 est.)
household consumption: 78.5% (2017 est.)
government consumption: 12.7% (2017 est.)
investment in fixed capital: 15.9% (2017 est.)
investment in inventories: 0% (2017 est.)
exports of goods and services: 25.7% (2017 est.)
imports of goods and services: -32.8% (2017 est.)
Gross national saving
25% of GDP (2017 est.)
23.1% of GDP (2016 est.)
24.9% of GDP (2015 est.)
11.5% of GDP (2017 est.)
8.7% of GDP (2016 est.)
16.5% of GDP (2015 est.)

Source: CIA Factbook