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Tanzania vs. Mozambique

Economy

TanzaniaMozambique
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.

At independence in 1975, Mozambique was one of the world's poorest countries. Socialist policies, economic mismanagement, and a brutal civil war from 1977 to 1992 further impoverished the country. In 1987, the government embarked on a series of macroeconomic reforms designed to stabilize the economy. These steps, combined with donor assistance and with political stability since the multi-party elections in 1994, propelled the country’s GDP, in purchasing power parity terms, from $4 billion in 1993 to about $37 billion in 2017. Fiscal reforms, including the introduction of a value-added tax and reform of the customs service, have improved the government's revenue collection abilities. In spite of these gains, about half the population remains below the poverty line and subsistence agriculture continues to employ the vast majority of the country's work force.

Mozambique's once substantial foreign debt was reduced through forgiveness and rescheduling under the IMF's Heavily Indebted Poor Countries (HIPC) and Enhanced HIPC initiatives. However, in 2016, information surfaced revealing that the Mozambican Government was responsible for over $2 billion in government-backed loans secured between 2012-14 by state-owned defense and security companies without parliamentary approval or national budget inclusion; this prompted the IMF and international donors to halt direct budget support to the Government of Mozambique. An international audit was performed on Mozambique’s debt in 2016-17, but debt restructuring and resumption of donor support have yet to occur.

Mozambique grew at an average annual rate of 6%-8% in the decade leading up to 2015, one of Africa's strongest performances, but the sizable external debt burden, donor withdrawal, elevated inflation, and currency depreciation contributed to slower growth in 2016-17.

Two major International consortiums, led by American companies ExxonMobil and Anadarko, are seeking approval to develop massive natural gas deposits off the coast of Cabo Delgado province, in what has the potential to become the largest infrastructure project in Africa. . The government predicts sales of liquefied natural gas from these projects could generate several billion dollars in revenues annually sometime after 2022.

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

$37.09 billion (2017 est.)
$35.76 billion (2016 est.)
$34.46 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.)
3.11% (2018 est.)
3.7% (2017 est.)
4.07% (2017 est.)
GDP - per capita (PPP)
$3,200 (2017 est.)
$3,100 (2016 est.)
$3,000 (2015 est.)

note: data are in 2017 dollars

$1,300 (2017 est.)
$1,200 (2016 est.)
$1,200 (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: 23.9% (2017 est.)
industry: 19.3% (2017 est.)
services: 56.8% (2017 est.)
Population below poverty line
22.8% (2015 est.)
46.1% (2015 est.)
Household income or consumption by percentage share
lowest 10%: 2.8%
highest 10%: 29.6% (2007)
lowest 10%: 1.9%
highest 10%: 36.7% (2008)
Inflation rate (consumer prices)
5.3% (2017 est.)
5.2% (2016 est.)
15.3% (2017 est.)
19.2% (2016 est.)
Labor force
24.89 million (2017 est.)
12.9 million (2017 est.)
Labor force - by occupation
agriculture: 66.9%
industry: 6.4%
services: 26.6% (2014 est.)
agriculture: 74.4%
industry: 3.9%
services: 21.7% (2015 est.)
Unemployment rate
10.3% (2014 est.)
24.5% (2017 est.)
25% (2016 est.)
Distribution of family income - Gini index
37.6 (2007)
34.6 (2000)
45.6 (2008)
47.3 (2002)
Budget
revenues: 7.873 billion (2017 est.)
expenditures: 8.818 billion (2017 est.)
revenues: 3.356 billion (2017 est.)
expenditures: 4.054 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
aluminum, petroleum products, chemicals (fertilizer, soap, paints), textiles, cement, glass, asbestos, tobacco, food, beverages
Industrial production growth rate
12% (2017 est.)
4.9% (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
cotton, cashew nuts, sugarcane, tea, cassava (manioc, tapioca), corn, coconuts, sisal, citrus and tropical fruits, potatoes, sunflowers; beef, poultry
Exports
$4.971 billion (2017 est.)
$5.697 billion (2016 est.)
$4.725 billion (2017 est.)
$3.328 billion (2016 est.)
Exports - commodities
gold, coffee, cashew nuts, manufactures, cotton
aluminum, prawns, cashews, cotton, sugar, citrus, timber; bulk electricity
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)
India 28.1%, Netherlands 24.4%, South Africa 16.7% (2017)
Imports
$7.869 billion (2017 est.)
$8.464 billion (2016 est.)
$5.223 billion (2017 est.)
$4.733 billion (2016 est.)
Imports - commodities
consumer goods, machinery and transportation equipment, industrial raw materials, crude oil
machinery and equipment, vehicles, fuel, chemicals, metal products, foodstuffs, textiles
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)
South Africa 36.8%, China 7%, UAE 6.8%, India 6.2%, Portugal 4.4% (2017)
Debt - external
$17.66 billion (31 December 2017 est.)
$15.21 billion (31 December 2016 est.)
$10.91 billion (31 December 2017 est.)
$10.48 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.)
meticais (MZM) per US dollar -
64.4 (2017 est.)
63.067 (2016 est.)
63.067 (2015 est.)
39.983 (2014 est.)
31.367 (2013 est.)
Fiscal year
1 July - 30 June
calendar year
Public debt
37% of GDP (2017 est.)
38% of GDP (2016 est.)
102.1% of GDP (2017 est.)
121.6% 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

$3.361 billion (31 December 2017 est.)
$2.081 billion (31 December 2016 est.)
Current Account Balance
-$1.313 billion (2019 est.)
-$1.898 billion (2018 est.)
-$3.025 billion (2019 est.)
-$4.499 billion (2018 est.)
GDP (official exchange rate)
$51.76 billion (2017 est.)
$12.59 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)
19% (4 November 2017)
23.25% (31 December 2016)
Commercial bank prime lending rate
17.62% (31 December 2017 est.)
15.96% (31 December 2016 est.)
27.86% (31 December 2017 est.)
21.18% (31 December 2016 est.)
Stock of domestic credit
$9.045 billion (31 December 2017 est.)
$9.616 billion (31 December 2016 est.)
$4.337 billion (31 December 2017 est.)
$4.242 billion (31 December 2016 est.)
Stock of narrow money
$5.002 billion (31 December 2017 est.)
$4.641 billion (31 December 2016 est.)
$3.817 billion (31 December 2017 est.)
$3.411 billion (31 December 2016 est.)
Stock of broad money
$5.002 billion (31 December 2017 est.)
$4.641 billion (31 December 2016 est.)
$3.817 billion (31 December 2017 est.)
$3.411 billion (31 December 2016 est.)
Taxes and other revenues
15.2% (of GDP) (2017 est.)
26.7% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)
-1.8% (of GDP) (2017 est.)
-5.6% (of GDP) (2017 est.)
Unemployment, youth ages 15-24
total: 3.9%
male: 3.1%
female: 4.6% (2014 est.)
total: 7.4%
male: 7.7%
female: 7.1% (2015 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: 69.7% (2017 est.)
government consumption: 27.2% (2017 est.)
investment in fixed capital: 21.7% (2017 est.)
investment in inventories: 13.9% (2017 est.)
exports of goods and services: 38.3% (2017 est.)
imports of goods and services: -70.6% (2017 est.)
Gross national saving
25% of GDP (2017 est.)
23.1% of GDP (2016 est.)
24.9% of GDP (2015 est.)
16.8% of GDP (2017 est.)
-1.2% of GDP (2016 est.)
5% of GDP (2015 est.)

Source: CIA Factbook