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Tanzania vs. Uganda

Economy

TanzaniaUganda
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.

Uganda has substantial natural resources, including fertile soils, regular rainfall, substantial reserves of recoverable oil, and small deposits of copper, gold, and other minerals. Agriculture is one of the most important sectors of the economy, employing 72% of the work force. The country's export market suffered a major slump following the outbreak of conflict in South Sudan, but has recovered lately, largely due to record coffee harvests, which account for 16% of exports, and increasing gold exports, which account for 10% of exports. Uganda has a small industrial sector that is dependent on imported inputs such as refined oil and heavy equipment. Overall, productivity is hampered by a number of supply-side constraints, including insufficient infrastructure, lack of modern technology in agriculture, and corruption.

Uganda's economic growth has slowed since 2016 as government spending and public debt has grown. Uganda's budget is dominated by energy and road infrastructure spending, while Uganda relies on donor support for long-term drivers of growth, including agriculture, health, and education. The largest infrastructure projects are externally financed through concessional loans, but at inflated costs. As a result, debt servicing for these loans is expected to rise.

Oil revenues and taxes are expected to become a larger source of government funding as oil production starts in the next three to 10 years. Over the next three to five years, foreign investors are planning to invest $9 billion in production facilities projects, $4 billion in an export pipeline, as well as in a $2-3 billion refinery to produce petroleum products for the domestic and East African Community markets. Furthermore, the government is looking to build several hundred million dollars' worth of highway projects to the oil region.

Uganda faces many economic challenges. Instability in South Sudan has led to a sharp increase in Sudanese refugees and is disrupting Uganda's main export market. Additional economic risks include: poor economic management, endemic corruption, and the government's failure to invest adequately in the health, education, and economic opportunities for a burgeoning young population. Uganda has one of the lowest electrification rates in Africa - only 22% of Ugandans have access to electricity, dropping to 10% in rural areas.

GDP (purchasing power parity)$149.785 billion (2019 est.)

$141.585 billion (2018 est.)

$134.274 billion (2017 est.)

note: data are in 2010 dollars
$96.838 billion (2019 est.)

$90.669 billion (2018 est.)

$85.406 billion (2017 est.)

note: data are in 2017 dollars
GDP - real growth rate6.98% (2019 est.)

6.95% (2018 est.)

6.78% (2017 est.)
4.8% (2017 est.)

2.3% (2016 est.)

5.7% (2015 est.)
GDP - per capita (PPP)$2,660 (2019 est.)

$2,590 (2018 est.)

$2,530 (2017 est.)

note: data are in 2010 dollars
$2,187 (2019 est.)

$2,122 (2018 est.)

$2,075 (2017 est.)

note: data are in 2017 dollars
GDP - composition by sectoragriculture: 23.4% (2017 est.)

industry: 28.6% (2017 est.)

services: 47.6% (2017 est.)
agriculture: 28.2% (2017 est.)

industry: 21.1% (2017 est.)

services: 50.7% (2017 est.)
Population below poverty line26.4% (2017 est.)21.4% (2016 est.)
Household income or consumption by percentage sharelowest 10%: 2.8%

highest 10%: 29.6% (2007)
lowest 10%: 2.4%

highest 10%: 36.1% (2009 est.)
Inflation rate (consumer prices)3.4% (2019 est.)

3.5% (2018 est.)

5.3% (2017 est.)
2.8% (2019 est.)

2.6% (2018 est.)

5.6% (2017 est.)
Labor force24.89 million (2017 est.)15.84 million (2015 est.)
Labor force - by occupationagriculture: 66.9%

industry: 6.4%

services: 26.6% (2014 est.)
agriculture: 71%

industry: 7%

services: 22% (2013 est.)
Unemployment rate10.3% (2014 est.)9.4% (2014 est.)
Distribution of family income - Gini index40.5 (2017 est.)

34.6 (2000)
42.8 (2016 est.)

45.7 (2002)
Budgetrevenues: 7.873 billion (2017 est.)

expenditures: 8.818 billion (2017 est.)
revenues: 3.848 billion (2017 est.)

expenditures: 4.928 billion (2017 est.)
Industriesagricultural processing (sugar, beer, cigarettes, sisal twine); mining (diamonds, gold, and iron), salt, soda ash; cement, oil refining, shoes, apparel, wood products, fertilizersugar processing, brewing, tobacco, cotton textiles; cement, steel production
Industrial production growth rate12% (2017 est.)4.4% (2017 est.)
Agriculture - productscassava, maize, sweet potatoes, sugar cane, rice, bananas, vegetables, milk, beans, sunflower seedsugar cane, plantains, cassava, maize, sweet potatoes, milk, vegetables, beans, bananas, sorghum
Exports$7.827 billion (2017 est.)

$5.697 billion (2016 est.)
$7.686 billion (2019 est.)

$6.511 billion (2018 est.)

$5.958 billion (2017 est.)
Exports - commoditiesgold, tobacco, cashews, sesame seeds, refined petroleum (2019)gold, coffee, milk, fish and fish products, tobacco (2019)
Exports - partnersIndia 20%, United Arab Emirates 13%, China 8%, Switzerland 7%, Rwanda 6%, Kenya 5%, Vietnam 5% (2019)United Arab Emirates 58%, Kenya 9% (2019)
Imports$9.972 billion (2017 est.)

$8.464 billion (2016 est.)
$9.991 billion (2019 est.)

$8.006 billion (2018 est.)

$7.44 billion (2017 est.)
Imports - commoditiesrefined petroleum, palm oil, packaged medicines, cars, wheat (2019)packaged medicines, aircraft, delivery trucks, cars, wheat (2019)
Imports - partnersChina 34%, India 15%, United Arab Emirates 12% (2019)China 19%, India 17%, Kenya 16%, United Arab Emirates 7%, Japan 5% (2019)
Debt - external$22.054 billion (2019 est.)

$20.569 billion (2018 est.)
$13.85 billion (2019 est.)

$12.187 billion (2018 est.)

$6.241 billion (31 December 2016 est.)
Exchange ratesTanzanian shillings (TZS) per US dollar -

2,319 (2020 est.)

2,300 (2019 est.)

2,299.155 (2018 est.)

1,989.7 (2014 est.)

1,654 (2013 est.)
Ugandan shillings (UGX) per US dollar -

3,680 (2020 est.)

3,685 (2019 est.)

3,735 (2018 est.)

3,234.1 (2014 est.)

2,599.8 (2013 est.)
Fiscal year1 July - 30 June1 July - 30 June
Public debt37% of GDP (2017 est.)

38% of GDP (2016 est.)
40% of GDP (2017 est.)

37.4% 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
$3.654 billion (31 December 2017 est.)

$3.034 billion (31 December 2016 est.)

note: excludes gold
Current Account Balance-$1.313 billion (2019 est.)

-$1.898 billion (2018 est.)
-$1.212 billion (2017 est.)

-$707 million (2016 est.)
GDP (official exchange rate)$60.633 billion (2019 est.)$34.683 billion (2019 est.)
Credit ratingsMoody's rating: B2 (2020)Fitch rating: B+ (2015)

Moody's rating: B2 (2016)

Standard & Poors rating: B (2014)
Ease of Doing Business Index scoresOverall score: 54.5 (2020)

Starting a Business score: 74.4 (2020)

Trading score: 20.2 (2020)

Enforcement score: 61.7 (2020)
Overall score: 60 (2020)

Starting a Business score: 71.4 (2020)

Trading score: 66.7 (2020)

Enforcement score: 60.6 (2020)
Taxes and other revenues15.2% (of GDP) (2017 est.)14.5% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-1.8% (of GDP) (2017 est.)-4.1% (of GDP) (2017 est.)
Unemployment, youth ages 15-24total: 3.9%

male: 3.1%

female: 4.6% (2014 est.)
total: 14.8%

male: 12.7%

female: 17.3% (2017 est.)
GDP - composition, by end usehousehold 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: 74.3% (2017 est.)

government consumption: 8% (2017 est.)

investment in fixed capital: 23.9% (2017 est.)

investment in inventories: 0.3% (2017 est.)

exports of goods and services: 18.8% (2017 est.)

imports of goods and services: -25.1% (2017 est.)
Gross national saving30.5% of GDP (2017 est.)

23.1% of GDP (2016 est.)

24.9% of GDP (2015 est.)
22.2% of GDP (2019 est.)

21.3% of GDP (2018 est.)

23.6% of GDP (2017 est.)

Source: CIA Factbook