THE ECONOMIC SURVEY 2011

THE UNITED REPUBLIC OF TANZANIA THE ECONOMIC SURVEY 2011 Produced by: President s Office, Planning Commission DAR ES SALAAM TANZANIA August, 2011 Printed by KIUTA Dar es Salaam - Tanzania

Table of Contents LIST OF TABLES... i ABBREVIATIONS AND ACRONYMS... vi IMPORTANT ECONOMIC EVENTS IN 2011... x CHAPTER 1... 1 THE DOMESTIC ECONOMY... 1 Economic Growth... 1 Price Trend... 4 Capital Formation... 8 CHAPTER 2... 38 THE STATE OF THE WORLD ECONOMY AND INTERNATIONAL ECONOMIC CO-OPERATION... 38 World Economic Growth... 38 Trends in World Trade... 39 The State of African Economy... 40 East African Community (EAC)... 42 African Union and Economic Commission for Africa... 43 Southern Africa Development Community... 43 World Trade Organisation... 44 CHAPTER 3... 45 EXTERNAL SECTOR... 45 INTRODUCTION... 45 MERCHANDISE EXPORTS... 45 Traditional exports... 45 Non-Traditional Exports... 47 MERCHANDISE IMPORTS... 50 Capital goods... 50 Intermediate Goods... 50 Consumer Goods... 51 SERVICES PAYMENTS... 51 TRENDS IN SELECTED REGIONAL AND BILATERAL TRADE.. 51 BALANCE OF PAYMENTS... 55 FOREIGN CURRENCY RESERVES... 57 EXCHANGE RATE... 57 CHAPTER 4... 71 GOVERNMENT FINANCE... 71 Introduction... 71 Revenue Collection Trend... 72 Domestic Revenue... 72 Grants and Loans... 72 Domestic Loans... 73 ii

Non concessional borrowing... 73 EXPENDITURE... 73 Public Debt Service... 74 Sectoral Allocation of Government Budget... 74 Domestic Debt Stock... 75 External Debt Stock... 76 External Debt Stock by Creditor Category... 76 CHAPTER 5... 82 MONEY AND FINANCIAL INSTITUTIONS... 82 Money Supply and Domestic Credit... 82 Trends in Credit to Private Sector... 82 Deposits in Commercial Banks... 83 Trends in Interest Rates... 83 Financial Sector Reforms... 83 Parastatal Pension Fund (PPF)... 84 Public Services Pension Fund (PSPF)... 85 National Social Security Fund (NSSF)... 86 Government Employees Provident Fund (GEPF)... 86 National Health Insurance Fund (NHIF)... 87 Local Authorities Pensions Fund (LAPF)... 88 Tanzania Insurance Regulatory Authority (TIRA)... 88 Dar es Salaam Stock Exchange (DSE)... 89 Tanzania Postal Bank (TPB)... 90 CHAPTER 6... 98 HUMAN RESOURCES... 98 Population and Development... 98 Labour Force and Employment... 100 CHAPTER 7... 103 PRIVATE SECTOR DEVELOPMENT... 103 Investment in the Country... 103 Distribution of Projects by Regional... 103 Foreign Direct Investment... 104 Improving the Enabling Environment for Private Sector... 104 ECONOMIC EMPOWERMENT... 106 Mwananchi Empowerment Funds... 106 Economic Empowerment and Employment Creation Program... 106 Issuance and Access to Credit through various Funds... 106 CHAPTER 8... 109 CROSS CUTTING ISSUES... 109 HIV/AIDS... 109 Environment... 109 Good Governance... 110 Gender... 111 iii

Public Safety... 112 CHAPTER 9... 113 REVIEW OF THE IMPLEMENTATION OF NATIONAL STRATEGY FOR GROWTH AND REDUCTION OF POVERTY... 113 Introduction... 113 Growth and Reduction of Income Poverty... 113 Improving Quality of Life and Social Well-being... 114 Good Governance and Accountability... 115 CHAPTER 10... 117 THE FIVE YEAR DEVELOPMENT PLAN... 117 Introduction... 117 The meaning of Five Year Development Plan... 117 Tanzania s Historical Perspective on Medium and Long term Plans.. 117 The National Development Vision 2025... 118 The First Five Year Development Plan -2011/12-2015/16... 119 Process of Preparing FYDP I... 119 The Overall Goal of FYDP (2011/12-2015/16)... 120 Unleashing Growth... 120 Salient Features of FYDP I... 120 Strategic Interventions... 121 Priority Areas of the FYDP I... 122 Financing the Five Year Development Plan... 125 Implementation Framework... 126 Annual Plan Execution and Coordination... 127 Concluding Remarks... 128 CHAPTER 11... 130 AGRICULTURE AND COOPERATIVES... 130 Growth Rate... 130 Food Crops Production... 130 Cash crops production... 131 Irrigation Farming... 133 Training and Extension Services... 133 Research Activities... 133 Agriculture Input Trust Fund... 134 Subsidies Provision for Farming Inputs... 134 Livestock Production and its Products... 135 Trading of Livestock and its Products... 136 Cooperatives Development... 139 Trend in Cash Crops Prices... 139 CHAPTER 12... 150 NATURAL RESOURCES AND TOURISM... 150 Growth Rate... 150 Forestry and Beekeeping... 150 iv

Wildlife... 151 Fisheries... 153 Tourism... 155 Archives and Antiquities... 157 CHAPTER 13... 169 MINING... 169 Growth Rate... 169 Mineral Prospecting... 169 Mining and Mineral Sales... 169 The value of Mineral Exports... 170 CHAPTER 14... 173 MANUFACTURING AND INTERNAL TRADE... 173 Growth Rate... 173 Small Enterprises... 173 Production Costs... 173 Production in Selected Industries... 173 Internal Trade... 174 International Trade Fair... 174 CHAPTER 15... 182 CONSTRUCTION AND LAND DEVELOPMENT... 182.CONSTRUCTION... 182 Growth Rates... 182 Road Network... 182 Roads and Bridges Maintenance... 183 Road Board Fund... 183 Contractors Registration Board... 183 Engineers Registration Board... 184 Architects and Quantity Surveyors Registration Board... 185 National Building Council... 186 Tanzania Building Agency... 186 Tanzania Electrical, Mechanical and Services Agency... 186 LAND DEVELOPMENTS... 186 Village Survey... 186 Inspection and Review of Title Deeds... 187 Issuance of Village Land certificates and Customary Title Deeds.. 187 Title Deeds Issuance... 188 Aquatic Land Survey... 189 Surveyed Farms and plots... 189 Land and House District Councils... 190 Land Use Plan... 192 National Housing Building Research Agency... 192 Land Bank... 192 Housing Development... 192 v

CHAPTER 16... 194 TRANSPORT AND COMMUNICATION... 194 Growth Rates... 194 Road Transport... 194 Urban Commuter Services... 194 RAILWAY TRANSPORT... 195 Tanzania Railways Limited... 196 Tanzania and Zambia Railway Authority... 196 AIR TRANSPORT... 196 Tanzania Airport Authority... 196 Marine Transport... 198 Cargo Transportation to/from Neighboring Countries... 199 Table No. 16.4: Cargo Transportation to/from Neighboring Countries 199 LAKE TRANSPORT... 199 The Marine Service Company Limited... 199 SINOTASHIP... 200 COMMUNICATION SERVICES... 200 Tanzania Posts Corporation... 200 Tanzania Communication Regulatory Authority... 201 INFORMATION AND COMMUNICATION TECHNOLOGY... 202 National ICT Infrastrucure Backbo... 202 Developments in Information Technology... 203 SCIENCE, TECHNOLOGY AND INNOVATION... 203 National Research Registry... 203 Human Resource Development... 203 Radiation Control... 204 CHAPTER 17... 212 ENERGY... 212 Growth Rate... 212 Electricity... 212 Exploration of Petroleum and Gas... 216 Oil Imports and Price Trends... 216 Alternative Sources of Energy... 216 Minor Waterfalls... 216 Solar Power... 216 Geothermal and Bio-fuel... 217 Sustainable Use of Energy... 217 CHAPTER 18... 218 WATER... 218 Introduction... 218 Management and Development of Water Resources... 218 Rural Water Service... 218 Urban Water Service... 219 vi

CHAPTER 19... 221 EDUCATION AND TRAINING... 221 Pre primary Education... 221 Primary Education... 221 Secondary Education... 222 Teachers Education... 222 Adult Education... 223 Schools and Colleges Inspection... 223 Vocational Training... 224 Technical Education... 224 Higher Education... 225 CHAPTER 20... 236 HEALTH... 236 Introduction... 236 Health Facilities... 236 Health Facilities inspection... 237 Treatment outside the Country... 237 Community Health Education... 237 Maternal and Child Health... 238 Life expectancy... 238 National Maralia Control Programme... 238 Food and Nutrition... 239 Social Service Welfare... 239 CHAPTER 21... 244 COMMUNITY DEVELOPMENT... 244 Folk Development Colleges... 244 Gender and Women Development... 244 Child Development... 245 Coordination of Non-Government Organizations... 245 vii

LIST OF TABLES Table A: Table B: Table 1: Table 1A: Table 2: Table 2A: Table 2B: Table 3: Table 3A: Table 4: Table 4A: Basic Economic Statistics Tanzania Mainland... xi Trends in Selected Macroeconomic Indicators, 2005-2011...xii Gross Domestic Product by Kind of Economic Activity, at current prices... 10 Gross Domestic Product (Monetary & non-monetary GDP mp) by Kind of Economic Activity, at current prices... 11 Sectoral Contribution to Overall GDP at Market Price (at current prices)... 12 Sectoral Contribution to Overall GDP Monetary & Non-Monetary, at current prices... 13 Gross Domestic Product and Expenditure, at current Market prices... 14 Gross Domestic Product (GDP mp) by Kind of Economic Activity, at constant 2001 prices... 15 Gross Domestic Product (Monetary & non-monetary) by Kind of Economic Activity, at constant 2001 prices... 16 Gross Domestic Product (GDP mp) by Kind of Economic Activity - Percentage Growth Rates, at constant 2001 prices... 17 Gross Domestic Product (Monetary & non-monetary GDP mp) by Kind of Economic Activity - Percentage Growth Rates, at constant 2001 prices... 18 Table 4B: Sectoral Contribution to Overall GDP (%) at constant 2001 prices... 20 Table 4C: Sectoral Contribution to Overall GDP (%) - Monetary & non-monetary at constant 2001 prices... 23 i

Table 4D: Gross Domestic Product and Expenditure, at constant 2001 market prices... 24 Table 5: Capital Formation by Type of Assets, at current prices... 25 Table 6: Capital Formation by Type of Assets, at constant 2001 prices... 26 Table 7: Capital Formation by Public and Private Sectors, at current price.27 Table 8: Table 9: Table 10: Table 11: Table 12: Table 13: Table 14: Table 15: Table 16: Index of Retail Prices of goods consumed by minimum wage earners in Dar es Salaam (2001=100).... 28 Index of Retail Prices of goods consumed by minimum wage earners in Dar es Salaam (2001 = 100)... 29 Cost of Living Index of goods and services consumed by middle grade wage earners in Dar es Salaam (2001=100).... 30 Cost of Living Index of goods and services consumed by middle grade wage earners in Dar es Salaam (2001=100).... 31 Cost of Living Index for the high income group in Dar es Salaam (2001=100).... 32 Cost of Living Index for high income group in Dar es Salaam (2001=100).... 33 Cost of Living Index of goods and services consumed by urban dwellers in Tanzania Mainland (2001=100).... 34 Cost of Living Index of goods and services consumed by urban dwellers Tanzania Mainland (2001=100)... 35 Different Indices of goods and services consumed by urban residents in Tanzania Mainland (2001 =100).... 37 Table 17: Value of Tanzania's Foreign Trade... 58 Table 18: Volume and Value of Domestic Exports... 59 ii

Table 19: Volume and Value of Traditional and Non-traditional Exports... 60 Table 20: Export Prices of Principal Commodities (Tshs/Ton)...65 Table 21: Export Prices of Principal Commodities (US$/Ton)...66 Table 23: Composition of Imports... 68 Table 24: Balance of Payments... 69 Table 25: Trends in Government Finance... 78 Table 26: Classification of Central Government Expenditure by Purpose... 80 Table 27: Monetary Survey: Tanzania Mainland... 93 Table 28: Table 29: Growth of Money Supply and Domestic Credit: Tanzania Mainland... 94 Trend of Exchange Rates of the Tanzania Shilling against the US$.......95 Table 30: Commercial Banks Lending by Sectors... 96 Table 31: Trend of Commercial Banks Deposits... 97 Table 32: Average Nominal Interest Rates... 97 Table 33: Regional Distribution of Tanzania Population (2005-2011)... 101 Table 34: Tanzania Investment Centre (TIC): Approved Projects... 108 Table 35: Domestic Production and Consumption of Sugar.... 141 Table 36: Cotton procurement and local sales... 142 Table 37: Tea crop area, production and local sales... 143 Table 38: Coffee procurement and local sales... 144 Table 39: Sisal plantations, production and local sales... 145 iii

Table 40: Tobacco procurement and local sales... 146 Table 41: Pyrethrum procurement and local sales... 147 Table 42: Cashewnuts procurement and local sales.... 148 Table 43: Summary of Marketed Quantities and Value of Principal Cash Crops... 149 Table 45: Tree Planting - Seedlings planted... 159 Table 47: Exports of Forestry Products... 160 Table 48: Export of Government Trophies... 161 Table 48A: Earnings from Tourist Hunting and Export of Live Animals... 162 Table 48B: Number of Tourist Hunters... 162 Table 50: Production in the Fisheries Sector (1993-2011)... 163 Table 51: Export of Fish Products... 164 Table 51A: Summary of Fish Export Products (1996-2011)... 165 Table 51B Trends of Nile Perch Exports (1996 2011)... 165 Table 52: Number of visitors, hotel bed-nights and foreign exchange earnings... 166 Table 53: Number of Tourists and Foreign Exchange Earnings...167 Table 55: Number of Tourists Visited Tourists Attractions... 168 Table 56: Minerals Production... 171 Table 57: Minerals Exports (2007-2011)... 172 Table 58: Production and Consumption of Cement... 175 Table 59: Production in selected industries... 176 iv

Table 60: Industries - Estimated number of employees... 177 Table 61: Industries - Estimated labour costs... 178 Table 62: Industries - Summary Statistics... 179 Table 63: Industries - Regional Summaries... 180 Table 65: Performance Indicators in the Industrial sector...181 Table 67: Tanzania Railways Corporation (TRC).... 205 Table 68: The UHURU Railway (TAZARA)... 206 Table 69: Shipping Statistics: Dar es salaam, Tanga & Mtwara... 207 Table 70: Postal Services Statistics... 210 Table 73: Air Tanzania Corporation (ATC).... 211 Table 74: Electricity: Installed Capacity and Total Units Generated by Station... 213 Table 75: Electricity sales by Type of Use... 214 Table 76: Quantity of Electricity Sold by Region... 215 Table 77: Water Supply and Revenue Collection in Urban Areas...220 Table 80: Government Secondary Schools: Number of Students by Form. 226 Table 81: Private Secondary Schools: Number of Students by Form... 235 Table 84: Health Facilities in the Country... 241 Table 85: Health Services: Training Output... 242 Table 87: Number of Health Personnel... 243 Table 87A: Number of Hospital Beds in the Country... 243 v

ABBREVIATIONS AND ACRONYMS APRM - African Peer Review Mechanism ASDP - Agricultural Sector Development Programme ARVs - Anti-retroviral ATMS - Automatic Teller Machine BEST - Business Environment Strengthening for Tanzania BRELA - Business Registration and Licensing Authority BoT - Bank of Tanzania Cif - Cost insurance and freight CSO - Civil Society Organization CARMATEC - Centre for Agricultural Mechanisation and Rural Technology CRDB - CRDB Bank COICOP - Classification of Individual Consumption by Purpose COMESA - Common Market for Eastern and Southern Africa D by D - Decentralization by Devolution DSM - Dar es Salaam DSE - Dar es salaam Stock Exchange DADPs - District Agricultural Development Plan DIT - Dar es Salaam Institute of Technology DPs - Development Partners ECA - Economic Commission for Africa EAC - East African Community EPZ - Economic Processing Zone EWURA - Energy and Water Utilities Regulatory Authority EU - European Union EFD - Electronic Fiscal Device ERP - Economic Recovery Program EMS - Expedited Mail Service FYDP - Five Year Development Plan FTA - Free Trade Area f.o.b - free on board FDI - Foreign Direct Investment GEPF - Government Employees Provident Fund GBS - General Budget Support GDP - Gross Domestic Product HESLB - Higher Education Students Loan Board vi

HBS - Household Budget Survey ICT - Information and Communication Technology IMF - International Monetary Fund ILFS - Intergrated Labour Fource Survey JAST - Joint Assistance Strategy for Tanzania JPC - Joint Program Commissions IFMS - Integrated Financial Management System LSRP - Legal Sector Reform Programme LAPF - Local Authorities Pensions Fund LGRP - Local Government Reform Program LGA - Local Government Authority M 2 - Broad Money Supply M 3 - Extended Broad Money Supply MPIP - Medium Term Public Investment Plan MDGs - Millennium Development Goals MDAs - Ministry, Department and Agencies MKUKUTA - Mkakati wa Kukuza Uchumi na Kupunguza Umasikini Tanzania MACEMP - Marine and Coastal Environmental Management Project MAIR - MKUKUTA Annual Implementation Report MMS - MKUKUTA Monitoring System MSCL - Marine Service Company Ltd MTEF - Medium Term Expenditure Framework MRCC - Maritime Rescue Coordination Centre MSMEs - Medium, Small and Micro Enterprises MW - Mega Watts M&E - Monitoring and Evaluation NSGRP - National Stretegy for Growth and Reduction of Povert NAIC - The National Artificial Insemination Centre NCPI - National Consumer Price Index NTB - Non Trade Barriers NSSF - National Social Security Funds NACSAP - National Anti-Corruption Strategy and Action Plan NEMC - National Environmental Management Council NACTE - National Council for Technical Education NEPAD - New Partnership for Africa s Development NGO s - Non-Governmental Organisations NHIF - National Health Insurance Fund NIC - National Insurance Corporation NMB - National Microfinance Bank vii

OSBP - One-Stop-Border Posts PHDR - Poverty and Human Development Report PBG - Plan and Budget Guideline PPP - Public Private Partnership PPRA - Public Procurement Regulatory Authority POPC - President s Office Planning Commission PSRP - Public Service Reform Program PAPs - Priority Action Program PSPF - Public Service Pensions Fund PPF - Parastatal Pensions Fund PFMRP - Public Financial Management Reform Program PCCB - Prevention Combating of Corruption Bureau PEDP - Primary Education Development Program PHCSDP Primary Health Care Service Development Programme PLHA - People Living with HIV and AIDS RSs - Regional Secretariets RITA - Registration, Insolvency and Trusteeship Agency SACCOS - Savings and Credit Cooperative Societies SELF - Small Entrepreneur Loan Facility Project SAP - Structure Adjustment Programm SEDP - Secondary Education Development Programm SMECGS - Small and Medium Enterprise Credit Guarantee Schemes SIDO - Small Industries Development Organization SAGCOT - Southern Agriculture Growth Corridor of Tanzania SEZs - Special Economic Zones SADC - Southern Africa Development Community SCULT - Savings and Co-operatives Union League of Tanzania SMEs - Small and Medium Enterprises SUMATRA - Surface and Marine Transport Regulatory Authority TaESA - Tanzania Employment Service Agency TANESCO - Tanzania Electricity Supply Company TAZARA - Tanzania Zambia Railway Authority TEUS - Twenty Equivalent Units TANAPA - Tanzania National Parks TADB - Tanzania Agricultural Development Bank TDV - Tanzania Development Vision TDHS - Tanzania Demographic and Health Survey TIC - Tanzania Investment Centre viii

TIRA - Tanzania Insurance Regulatory Authority TAA - Tanzania Airport Authority TCAA - Tanzania Civil Aviation Authority TCRA - Tanzania Communications Regulatory Authority TICTS - Tanzania International Container Terminal Services TRA - Tanzania Revenue Authority TRL - Tanzania Railways Company Limited TTCL - Tanzania Telecommunications Company Limited TWB - Tanzania Women Bank TMRC - Tanzania Mortgage Refinancing Company TISCAN - Tanzania Inspection Services Company Tshs (TZS) - Tanzanian Shilling USD - United States Dollar UFI - Global Association of the Exhibition Industry Formerly known, Union Des Foires Internationales VETA - Vocational Education and Training Authority WEF - World Economic Forum WMO - World Meteorological Organization WTO - World Trade Organization WARCs - Ward Agriculture Resource Centre WSDP - Water Sector Development Program ix

IMPORTANT ECONOMIC EVENTS IN 2011 Date Month Events January World Economic Forum WEF The Government through Tanzania Mortgage Refinancing Company (MRC) started implementation of mortgage finance project. 07 June The president of the United Republic of Tanzania launched a composium to discuss the draft Five Year Development Plan (2011/12-2015/16) 08 June Budget day for EAC member countries 1-7 July The International Trade Fair took place in Dar es Salaam, Tanzania 09 July Southern Sudan officially became independent country 02 October Pilot census conducted in 44 enumerated areas 10 November TMRC officially started operations 12 December Tanzania commemorated 50 years of independency 21 December Two consecutive days of heavy rains flooded Dar es Salaam, causing loss of life and assets. The last time for such heavy rain occuered way back in 1954 x

Table A BASIC ECONOMIC STATISTICS - TANZANIA MAINLAND 2005 2006 2007 2008 2009 2010 2011p % Change 2010/11 Population (millions) 36.2 37.5 38.3 39.5 40.7 41.9 43.2 3.0 Gross Domestic Product, at current prices (Shs. million) 15965294.0 17941268.0 20948403.3 24754457.1 28212646.0 32293479.0 37532962.0 16.2 Gross Domestic Product, at constant 2001 prices (Shs. million) 12068090.0 12881163.0 13801920.8 14828344.8 15721301.0 16828563.0 17913803.0 6.4 GDP per capita, at current prices (Shs.) 441030.2 478433.8 547081.1 627097.2 693470.1 770464.3 869436.3 12.8 GDP per capita, at constant 2001 prices (Shs.) 333372.7 343497.7 360446.1 375642.0 386431.4 401499.2 414966.2 3.4 Consumer Price Index (%) 4.3 7.3 7.0 10.3 12.3 5.5 12.7 130.9 Balance of merchandise trade (US$ million) -1321.8-1946.5-2634.0-3433.5-2539.5-2842.4-4728.8 66.4 Current Account balance (US$ million) -867.6-1143.2-1580.1-2595.4-1727.6-1863.8-3967.4 112.9 Consumption of cement ('000 Tons) 1375.2 1421.5 1629.9 1755.8 1940.8 2312.0 2408.8 4.2 Electricity sold (KWH million) 3623.0 2464.0 3057.0 3369.0 4802.1 5138.0 5153.0 0.3 Tourist earnings (US$ million) 823.0 862.0 1198.0 1354.0 1159.8 1254.5 1324.8 5.6 Railways: Cargo transportation ('000 Tons) 1467 1073 1283 954 570 805 386-52.0 Education: Students in Primary Schools ('000)* 72035.0 79598.8 83169.3 84372.4 84415.5 84193.0 83633.9-0.7 Education: Students in Secondary Schools ('000)* 524.3 675.7 1020.5 1222.4 1466.4 1638.7 1711.1 4.4 Hospitals: Number of beds 37048 37228 37228 37228 40118 45241 48480 7.2 Doctors (number) - 862 1198 1354 1159.8 578.0 - - Exports of Cash Crops (Mill.US$) Traditional Commodities Coffee 74.30 61.40 98.10 103.32 111.66 117.31 142.60 21.6 Cotton 111.50 55.80 66.40 80.87 111.15 97.79 61.60-37.0 Sisal 7.30 6.10 6.80 0.00 0.00 0.00 0.00 Tea 25.60 31.00 28.70 41.96 34.50 47.32 47.20-0.3 Tobacco 80.80 65.20 72.90 175.92 127.29 129.19 281.20 117.7 Cashewnuts 46.60 39.40 13.20 69.37 71.51 125.34 107.00-14.6 Cloves 8.50 8.20 4.20 13.52 14.73 8.14 29.00 256.2 Non-Traditional Commodities Minerals 711.30 836.80 886.50 42.52 1114.80 1560.10 2284.12 46.4 Manufactured goods 156.10 155.90 309.20 94.19 98.70 93.40 861.52 822.4 Other exports 454.40 436.30 520.70 2163.84 2163.17 2072.40 347.08-83.3 Monetary Aggregates 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12p % Change 10/11-11/12 Money supply (Shs. billion) 2 3266.5 5317.2 6527.8 7834.1 9801.8 11957.9 Net domestic credit (Shs. billion) 1504.2 2169.5 2477.7 4771.7 6124.1 8470.5 Government Finance Government Recurrent Revenue (Shs. billion) 2066.8 2739.0 3502.6 4293.1 4661.5 5578.0 6776.0 21.5 Government Recurrent Expenditure (Shs. billion) 2649.9 3137.5 3796.9 4681.5 5562.4 6690.3 7714.3 15.3 Government Development Expenditure (Shs. billion) 1385.2 1337.2 2201.1 2130.4 2611.3 2749.0 4925.6 79.2 Source: Ministry of Finance * For Government and Private Schools ** From 1998, Base year is 2001 1 Academic year ending in the respective years 2 Extended Broad Money (M3) - Not available p - Provisional Data xi

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Table No. B: TRENDS IN SELECTED MACROECONOMIC INDICATORS 2005-2011 NATIONAL ACCOUNTS 2005 2006 2007 2008 2009 2010 2011 Real GDP growth at market price 7.4% 6.7% 7.1% 7.4% 6.0% 7.0% 6.4% Agriculture, Hunting and Forestry 4.3% 3.8% 4.0% 4.6% 3.2% 4.2% 3.6% Fishing 6.0% 5.0% 4.5% 5.0% 2.7% 1.5% 1.2% Industry and Construction 10.4% 8.5% 9.5% 8.6% 7.0% 8.2% 6.9% Manufacturing 9.6% 8.5% 8.7% 9.9% 8.0% 7.9% 7.8% Construction 10.1% 9.5% 9.7% 10.5% 7.5% 10.2% 9.0% Services 8.0% 7.8% 8.1% 8.5% 7.2% 8.2% 7.9% Trade and Repair 6.7% 9.5% 9.8% 10.0% 7.5% 8.2% 8.1% Communications 18.8% 19.2% 20.1% 20.5% 21.9% 22.1% 19.0 Money 10.8% 11.4% 10.2% 11.9% 9.0% 10.1% 10.7% GDP growth at current prices 14.3% 12.4% 16.8% 18.3% 13.8% 14.5% 16.2% PRICES AND INTEREST RATES CPI Inflation (annual Average) 5.0% 7.3% 7.0% 10.3% 12.1% 5.5% 12.7% GDP deflator inflation (market price) 6.4% 5.3% 9.0% 10.1% 7.4% 7.1% 9.5% Short term lending rate 15.7% 15.7% 15.0% 13.6% 14.0% 14.4% 13.7% Long term lending rate 14.1% 14.9% 16.7% 16.5% 14.5% 146% 14.3% 12 months deposit rate 7.7% 8.8% 10.1% 8.3% 9.0% 7.1% 9.1% Deposit rates 2.6% 2.6% 2.7% 2.7% 2.8% 2.4% 2.9% MONEY M3 growth rate 34.8% 21.5% 20.5% 19.8% 17.7% 25.4% 18.2% M2 Growth rate 33.9% 16.7% 27.2% 24.4% 20.8% 21.8% 15% Growth rate of credit to private sector 29.3% 40.1% 43.1% 44.6% 9.6% 20.0% 27.2% BALANCE OF PAYMENTS (Ratio to GDP) Exports of Goods 11.9% 12.2% 12.0% 15.0% 15.7% 18.8% 21.1% Exports of goods and Services 20.9% 22.9% 23.1% 24.7% 24.4% 27.7% 30.9% Imports of Goods 21.2% 27.1% 28.8% 33.8% 27.3% 31.0% 40.8% Imports of goods and Services 29.8% 35.8% 37.1% 41.8% 35.3% 39.0% 50.0% Reserves (Months of Imports) 6.0 5.0 4.8 4.3 5.6 5.8 4.0 GOVERNMENT BUDGETARY OPERATIONS (Ratio to GDP) 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 Revenue 11.9% 12.4% 14.1% 15.9% 16.2% 15.4% 16.6% Expenditure 29.4% 31.9% 31.7% 22.8% 25.7% 27.0% 26.6% Recurrent Expenditure 22.2% 24.2% 24.8% 14.9% 17.7% 18.3% 19.0% Development Expenditure 7.2% 7.7% 6.9% 7.9% 8.0% 8.6% 7.6% Deficit (exl. Grants) -9.7% -11.4% -9.9% -8.6% -9.3% -11.0% -11.6% Deficit (inl. grants ) -4.9% -5.5% -4.9% -1.7% -4.5% -6.4% -6.9% Foreign Borrowing 3.9% 3.3% 3.7% 3.2% 3.6% 4.6% 3.4% Source: Ministry of Finance and Bank of Tanzania xiii

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CHAPTER 1 THE DOMESTIC ECONOMY Economic Growth 1. In 2011, real Gross Domestic Product (GDP) grew by 6.4 percent compared to 7.0 percent in 2010. The slowdown in growth was a result of drought in different parts of the country, which affected agricultural sector and power supply which eventually affected industrial production and other sectors that depends on electricity. 2. In 2011, the GDP amounted to shs. 37,532,962 million at current prices. Since the population of Tanzania Mainland was estimated at 43,169,305 in 2011, the per capita income was shs. 869,436.3 in 2011 at current prices compared to shs. 770,464.3 in 2010, equivalent to an increase of 12.8 percent. 3. The growth rate in agricultural, hunting and forestry economic activities was 3.6 percent in 2011 compared to 4.2 percent in 2010. The slow down in growth was mainly due to unfavourable weather conditions during the 2009/10 season which affected crop production. The growth rate of crops sub activity decreased to 3.5 percent in 2011 from 4.4 percent in 2010 as a result of decrease in production caused by unfavourable weather in 2009/10 season. The growth rate of livestock sub activity was 3.9 percent in 2011 compared to 3.4 percent in 2010. Effeciency in the implementation of programs on improving grazing areas and strengthening the quality of livestock products are among reasons that contributed to the increase in the growth rate of this sub activity. Forestry and hunting sub activities grew by 3.5 percent in 2011 compared to 4.1 percent in 2010. This was a result of decrease in income from tourism hunting as well as Governmnet initiative to restrict harvesting of forest products thus curtailing harvest and sell of forestry products. 4. The growth rate of monetary agriculture increased by 4.1 percent in 2011 compared to 5.3 percent in 2010 as a result of decrease in crop production caused by unfavourable weather condition. On the other hand, the growth rate of non-monetary agriculture was 2.3 percent in 2011 compared to 2.0 percent in 2010. In 2011, agricultural activities contributed 23.7 percent to GDP compared to 24.1 percent in 2010. 5. The growth rate of fishing activities decreased to 1.2 percent in 2011, from 1.5 percent in 2010. This was a result of continued use of poor fishing gears, destruction of fish hatcheries, low production that is not commensurate with the world demand as well as increase in competition in the world market. For 1

the past three years, the share of fishing activities to overall GDP continued to be 1.4 percent. 6. Industry and construction economic activities grew by 6.9 percent in 2011 compared to 10.2 percent in 2010. The decline in growth rate was caused by the low growth in all sub activities due to lack of reliable power supply. Nevertheless, the share of industry and construction economic activities to GDP increased to 22.7 percent in 2011 from 22.4 percent in 2010. 7. The growth rate in manufacturing sub activity was 7.8 percent in 2011 compared to 7.9 percent in 2010. The low growth rate was due to increase in the cost of production following the impact of power rationing that started in the forth quarter of 2010 which to some extent affected industrial production; and increase in the cost of imported raw materials, mainly fuel. Nevertheleess, production in some items such as food and dairy products, cement, beverages and animal feeds increased. The share of manufacturing to GDP increased from 9.0 percent in 2010 to 9.3 percent, in 2011. 8. The growth rate of mining and quarrying sub activities decreased to 2.2 percent in 2011 from 2.7 percent in 2010. The shortfall was due to decrease in mineral production in large scale mines. The share of mining and quarrying sub activities to GDP remained at 3.3 percent in 2011 as it was in the last two years. 9. In 2011, the construction sub activity grew by 9.0 percent compared to 10.2 percent in 2010. The growth was mainly attributed to increase in construction activities in: roads and bridges; residential and non residential buildings; and expansion of water and road infrastructure. The share of construction sub activity to GDP was 8.0 percent in 2011 as it was in 2010. 10. The growth rate of electricity and gas sub activities decreased drastically to 1.5 percent in 2011 compared to 10.2 percent in 2010. The decrease was due to shortage of rain which led to decline in water levels in the main hydropower dams of Kihansi and Mtera; increase in human economic activities that are detrimental to the sources of water in the power generation dams; delapidated power plants; and temporary clossure of gas power plant for maintenance. The share of electricity and gas sub activity to GDP was 1.8 percent in 2011, as it was in 2010. 11. The water supply sub-activity grew by 4.0 percent in 2011 compared to 6.3 percent in 2010. The slowdown in growth was on account of several reasons including drought in many parts of the country; dilapidated water infrastrustures; and increase in population growth that outweigh implementation pace of water construction projects. The share of water supply 2

sub activity to GDP declined marginally to 0.3 percent in 2011 from 0.4 percent in 2010. 12. The growth rate of services economic activities was 7.9 percent in 2011 compared to 8.2 percent in 2010. This was due to slowdown in growth in all sub activities except financial intermediation, administration and education sub-activities. Consistent with the decline in the growth rate of electricity and gas in 2011, the growth rate in trade and repair, hotels and restaurant and other sectors that depend on electricity also declined. Nevertheless, service economic activities recorded higher growth compared with other sectors, including communication sub activity which recorded highest growth of 19.0 percent. The share of services economic activities to GDP was 44.0 percent in 2011 compared to 43.9 percent in 2010. 13. The trade and repairs sub activities grew at the rate of 8.1 percent in 2011 compared to 8.2 percent in 2010. The growth was mainly attributed to improved regional trade and business environment in the country. However, the power shortage challenges affected trade and repair economic activities and thus contributed to the slown down in growth. Trade and repairs sub activities accounted for 12.2 percent of the total GDP in 2011 compared to 12.1 percent in 2010. 14. The hotel and restaurants sub activities, which includes tourism grew by 4.6 percent in 2011 compared to 6.1 percent in 2010. The slowdown in the growth rate emanated mainly from the decline in the number and spending of local tourists. The share of the hotel and restaurants sub activities to GDP was 2.3 as it was in last two years. 15. The transport sub activity grew by 6.7 percent in 2011 compared to 7.0 percent in 2010. This was due to decrease in transport and transportation on roads, railways and air transport particularly through TRL and ATCL. However, the share of transport sub activity to GDP increased to 5.3 percent in 2011, compared to 5.1 percent in 2010. 16. The communication sub activity continued to record highest growth compared to other economic activities although the growth pace decelerated in 2011. The growth rate for this sub economic activity was 19.0 percent in 2011 compared to 22.1 percent in 2010. The growth was attributed to increase in number of customers of mobile phone services and airtime sales. The contribution of communication sub-activity to GDP was 2.2 percent in 2011 compared to 2.1 percent in 2010. 17. The financial intermediation services sub activity grew by 10.7 percent in 2011 compared to 10.1 percent in 2010. The growth emanated from successful implementation of the Financial Sector Reform Program which exacerbated 3

the increase in credit to private sector and increase in the demand for money for investment purposes; insurance; business services and other economic activities. The share of financial intermediation sub activity to GDP was 1.8 percent in 2011 as it was in 2010. 18. The growth rate of real estate and business services sub activity slowed down to 6.5 percent in 2011 compared to 7.0 percent in 2010. The growth was attributed to increase in demand for residencial and non residential buildings in various parts of the country. The growth rate of monetary real estate and business service activities was 6.2 percent in 2011 compared to 7.5 percent in 2010. This was due to the slowdown in the growth of real estate and business services. Nonetheless, the growth rate of non monetary real estate and business services was 7.1 percent in 2011 compared to 6.1 percent in 2010. The share of real estate and business services to GDP was 8.6 percent in 2011 compared to 8.8 percent in 2010. 19. In 2011, public administration sub-activity grew by 6.8 percent compared to 6.5 percent in 2010. This was due to continued efforts by the Government to support implementation of the Public Sector Reform Program and increase of new Government employment and other public services. The share of public administration sub-activity to GDP in 2011 continued to be 8.0 percent as it was in 2010. 20. The growth rates in education and health sub-activities were 7.4 and 5.4 percent in 2011 compared to 7.3 and 6.9 percent in 2010 respectively. The growth in education sub-activity was due to continued implementation of Primary Education Development Program Phase II (PEDP II); Secondary Education Development Program (SEDP) and increase in recruitment of teachers. With regard to health sub-activity, the growth was attributed to implementation of immunization; malaria control; Tuberculosis and HIV/AIDS programs. The share of health sub-activity to GDP was 1.7 percent in 2011 compared to 1.6 percent in 2010. Further, for three years consecutive, the share of education sub activity to GDP has been 1.4 percent annually. Price Trend 21. The overall annual average inflation rate for 2011 was 12.7 percent compared with an average of 5.5 percent in 2010. This was mainly caused by continued increase in the general oil price in the world market; inadequate shot rainy season in the fourth quarter of 2010 that reduced agricultural harvest; increase in electricity tarriffs, prices of gas, cooking oil and sugar; shortage of power supply; depreciation of the shiling; and shortage of food supply in the eastern Africa region resulting from drought in the region. Prices of various goods and services have been increasing due to the increase in the cost of 4

production on the account of aforementioned reasons. The annual inflation rate for food and non alcoholic bevarages was 16.0 percent in 2011. The annual inflation rate for other main groups of goods and services is as shown in table 1.1 below. The analysis was done only for 2011 since the NCPI has been rebased towards the end of 2010. The analytical challenge is based on the mere fact that the new NCPI series became official index starting in October 2010 and thus lacks full year data for comparison that has same series and computed with similar methodology. 5

Table 1.1: Monthly Inflation Rate (Jan Dec 2011) S/N 1 2 MAIN GROUPS Weight Jan/111 Feb/11 Mar/11 Apr/11 May/11 Food and Non Alcoholic Beverages 47.8 7.1 9.2 8.6 9.7 10.4 12.3 15.9 18.6 22.5 24.0 26.1 27.1 16.0 Alcoholic, Tobacco and Narcotics 3.3 1.8 3.0 2.7 5.6 6.8 5.8 5.0 5.2 5.7 5.6 5.1 5.8 4.8 Jun/11 Jul/11 Aug/11 Sep/11 Oct/11 Nov/11 Dec/11 Average 3 Clothing and Footwear 6.7 5.8 8.6 9.5 9.4 9.8 9.8 9.4 9.4 9.6 10.7 11.2 10.6 9.5 4 5 Housing, Water, Electricity, Gas and Other Fuel 9.2 17.7 11.1 13.6 13.4 15.7 18.8 21.3 19.7 21.7 22.0 23.5 24.8 18.6 Furnishing, Housing Equipment and Routine Maintenance of the House 6.7 7.2 13.9 14.5 13.6 14.1 14.4 14.5 13.9 14.2 15.4 15.3 14.6 13.8 6 Health 0.9 0.6 2.1 1.4 1.4 2.1 1.5 1.6 1.9 2.3 4.1 3.5 3.0 2.1 7 Transport 9.5 0.3 0.3 3.3 3.9 8.0 8.4 9.9 8.8 10.8 11.8 12.0 11.2 7.4 8 Communication 2.1-0.2-1.3-1.8-2.0-2.2-2.0-1.4-1.3-1.8-1.6-1.7-1.2-1.5 9 Recreation and Culture 1.3 3.5 3.5 3.8 3.1 2.4 3.6 3.1 2.7 1.1 2.3 3.3 3.2 3.0 10 Education 1.7 2.2 3.2 2.8 2.2 3.1 3.5 4.2 4.8 5.8 5.6 5.7 5.9 4.1 11 Restaurants and hotels 6.4 2.9 3.9 5.7 5.2 7.4 6.7 6.8 8.0 11.5 12.8 13.2 13.6 8.1 12 Miscellaneous goods and services 4.5 4.0 1.1 4.0 3.4 3.8 2.8 3.5 3.5 6.5 7.0 7.8 8.6 4.7 Inflation Rate 6.4 7.5 8.0 8.6 9.7 10.9 13.0 14.1 16.8 17.9 19.2 19.8 12.7 OTHER SELECTED GROUPS Weight Jan/111 Feb/11 Mar/11 Apr/11 May/11 Jun/11 Jul/11 Aug/11 Sep/11 Oct/11 Nov/11 Dec/11 1 Food 51.0 6.7 8.6 8.3 9.2 10.1 11.7 14.8 17.4 21.3 22.8 24.7 25.6 15.1 2 Energy and Fuels 5.7 19.1 13.0 17.2 22.1 24.5 29.0 34.2 30.1 33.1 37.4 39.2 41.0 28.3 3 All Items Less Food 49.0 6.1 6.1 7.7 7.8 9.3 10.0 10.8 10.2 11.4 12.2 12.6 12.7 9.7 4 All Items Less Food and Energy 43.3 4.4 5.2 6.3 5.7 7.1 7.2 7.4 7.3 8.2 8.5 8.8 8.7 7.1 Source: Ministry of Finance 6

22. In general, inflation rates for the other selected groups revealed upward trend in every month in 2011 on the account of reasons explained above. Food inflation increased by an average of 15.1 percent in 2011. The pace of Nonfood inflation increased to 12.7 percent December 2011 from 4.7 percent December 2010. Energy and fuel inflation increased by 41.0 percent December 2011 compared to 12.3 percent in the corresponding period in 2010. This was a group with the highest inflation than any other group though has low weight accounting for 5.7 percent in the NCPI basket. The annual average inflation for this group was 28.3 percent in 2011. The inflation rate which excludes food and energy for the month of December 2011 was 8.7 percent compared to 3.7 percent recorded in December 2010 and annual average inflation for this group was 7.1 percent in 2011. Chart 1.1: Price Movement (April 2011 April, 2012) 7

23. The analysis of price indices by income-groups revealed that the rate of inflation decreased for lower and middle income groups. This was a result of decrease in the general price of goods and services commonly consumed by these groups including education and restaurants and hotels. The average inflation rates for the lower and middle income groups were 7.4 and 7.9 percent in 2011 compared to 13.2 and 10.0 percent in 2010 1 respectively. For the higher income group, inflation rate increased by 10.6 percent in 2011 compared to 8.1 percent in 2010 due to the increase in the general price of goods and services commonly consumed by this group particularly food; alcoholic drinks, tobacco; clothing and footwear; electricity, water, housing; and restaurants and hotels. 24. In 2011, the price indices for goods and services for the residents of Dar es Salaam experienced mixed pattern depending on their income status. Whereas the average price indices was high in clothing and footwear (17.3 percent) and transport (15.0 percent) for the residents of Dar es Salaam with lower income, such relative price was high in energy (12.6 percent) and food (9.1 percent) for the middle income group and transportation (14.2 percent) and food (13.5) for the high income group. However, food and energy were the main items that exerted pressures to all residents of Dar es Salaam irrespective of their income status. The inflation rates of these goods and services for the residents of Dar es Salaam for high, middle and lower income groups were as follow: food 13.5, 9.1, and 7.1 percent; and energy 10.9, 12.6 and 7.3 percent respectively. The price indices for other goods and services experienced mixed trend depending on the income status. Tables 8 16 show the price indices for various goods and services Capital Formation 25. In 2011, capital formation at current prices increased by 33.1 percent to shs. 13,762,066 million from shs 10,342,536 million in 2010. Further, capital formation at 2001 constant prices increased from shs. 4,385,837 million in 2010 to shs. 5,762,294 million in 2011, equivalent to an increase of 31.4 percent. The ratio of capital formation to Gross Domestic Product at current prices was 36.7 percent in 2011 compared to 32.0 percent in 2010. 26. Capital formation which includes buildings, other construction works and equipment increased by 31.4 percent in 2011 to Tshs. 5,694,294 million in 2011 from Tshs. 4,332,960 million in 2010 at 2001 constant prices. Capital formation in building activities at 2001 constant prices increased to Tshs. 1,363,255 million in 2011 from Tshs. 1,284,866 million in 2010, equivalent to an increase of 6.1 percent. In 2011, the growth rates of non residential buildings; residential buildings; and rural own account were 6.3; 6.6; and 5.4 1 The figures for 2010 have been revised 8

percent respectively as it was in 2010. This growth was on account of Government initiatives to improve business enevironment and promote constraction of modern residential and commercial buildings. 27. Other construction works including land improvement, roads and bridges, and water supply increased from 1,004,548 million in 2010 to Tshs. 1,060,483 million in 2011 at 2001 constant prices, equivalent to an increase of 5.6 percent. The growth rate of land improvement and water supply were 5.3 and 6.3 percent in 2011 respectively as it was for the preceeding two years. However, capital formation in roads and bridges activities grew by negative 9.5 percent in 2011 compared to negative 10.2 percent in 2010. This was a result of Government decision to reduce expenditures on roads and bridge construction in order to finance other emergency needs that emerged in 2011 such as food and power shortage. 28. Importation of capital equipment increased from Tshs. 2,043,546 million in 2010 to Tshs. 3,270,556 million in 2011 at 2001 constant prices, equivalent to an increase of 60.0 percent. This growth was largely attributed to the increase in importation of power generation plant machinery, generators and other machinery to address the power shortage that occurred in 2011. The imports of machinery and other equipment increased by 98.8 percent in 2011 compared to 8.5 percent in 2010. In addition, the import value of transport equipment slightly increased by 6.2 percent compared the increase of 27.5 percent in 2010. On the other hand, importation of capital equipment at current prices increased by 57.6 percent from Tshs. 3,624,582 million in 2010 to Tshs. 5,711,068 million in 2011. 29. The value of change in stock at 2001 constant prices was Tshs. 68,000 million in 2011 compared to Tshs. 52,877 million in 2010, equivalent to an increase of 28.6 percent. In addition, the value of change in stock at current prices increased by 38.3 percent from Tshs. 164,843 million in 2010 to Tshs. 228,000 million in 2011. 30. Capital formation in the public sector (including central government, institutions and parastatals) increased from Tshs. 2,607,525 million in 2010 to Tshs. 3,037,067 million in 2011 at current prices, equivalent to an increase of 16.5 percent. The public sector s contribution to capital formation was 22.1 percent in 2011 compared to 25.2 percent in 2010. Capital formation in private sector increased from Tshs. 7,570,168 million in 2010 to Tshs. 10,496,998 million in 2011, at current prices, equivalent to an increase of 38.7 percent. Contribution of private sector to capital formation was 76.3 percent in 2011 compared to 73.2 percent in 2010. 9

Table No.1 ECONOMIC ACTIVITY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Shs.million %change 2010/11 Agriculture, Hunting and Forestry 2988383 3479646 4116444 4410478 4708556 5413257 6374476 6945213 7782138 8887273 14.2% Crops 2236209 2641586 3122896 3272143 3452690 3983327 4700326 5187080 5757659 6545372 13.7% Livestock 502800 563136 669021 791823 867772 990996 1169375 1135527 1239996 1405535 13.4% Hunting and Forestry 249374 274924 324527 346512 388094 438934 504774 622606 784484 936367 19.4% Fishing 172989 187693 207025 225658 241454 277189 296592 399715 459673 541919 17.9% Industry and construction 2051559 2538485 2899263 3316757 3723978 4431057 5194434 6193765 7225731 8538246 18.2% Mining and quarrying 220000 288200 357368 457431 576363 742932 839513 941094 1072847 1255231 17.0% Manufacturing 866228 1002827 1129558 1269145 1395282 1625504 1935975 2434754 2899094 3482066 20.1% Electricity, gas 209640 227081 244977 271925 276915 335898 421216 479768 571130 684847 19.9% Water supply 48666 53925 61474 68605 75809 84982 93310 104263 113691 125823 10.7% Construction 707025 966452 1105886 1249651 1399609 1641741 1904420 2233885 2568968 2990279 16.4% Services 4617402 5174913 5870447 6786597 7773898 9076622 10846587 12300072 14188185 16525870 16.5% Trade and repairs 1298349 1454527 1593717 1752826 2044421 2416506 2875642 3341496 3909550 4597631 17.6% Hotels and restaurants 269120 286883 319365 394417 459584 559722 649278 635414 754037 856439 13.6% Transport 526710 577977 637720 706291 769830 886844 1037608 1409636 1646704 1996102 21.2% Communications 130496 161623 206877 277216 374241 487132 611350 596230 691627 811265 17.3% Financial intermediation 179715 204766 229370 265261 299734 345000 403727 477492 567822 666216 17.3% Real estate and business services 1008089 1135252 1270108 1520109 1723571 1982107 2378528 2532770 2848855 3233198 13.5% Public administration 754654 866917 1076215 1278881 1440913 1652556 2026815 2282763 2579522 2985562 15.7% Education 211372 223409 236813 251022 268594 289617 333060 392507 455308 519820 14.2% Health 151993 174789 200933 233032 275726 327658 383360 454990 532339 627520 17.9% Other social and personal services 86904 88770 99329 107542 117284 129482 147221 176775 202422 232119 14.7% Gross value added before adjustments 9830333 11380737 13093179 14739490 16447886 19198125 22712088 25838765 29655726 34493309 16.3% less FISIM -90400-105382 -120588-141723 -169661-208281 -260029-328478 -358049-432285 20.7% Gross value added at current basic prices 9739933 11275355 12972591 14597767 16278225 18989844 22452059 25510287 29297677 34061023 16.3% add Taxes on products 704574 831707 999001 1367527 1663043 1958559 2329620 2702359 2995802 3471939 15.9% GDP (At current market prices) 10444507 12107062 13971592 15965294 17941268 20948403 24781679 28212646 32293479 37532962 16.2% Source : National Bureau of Statistic GROSS DOMESTIC PRODUCT BY KIND OF ECONOMIC ACTIVITY At current prices 10

Table No.1A ECONOMIC ACTIVITY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Shs.million %change 2010/11 A. MONETARY Gross Domestic Product at market prices 8795422 10214161 11680834 13431438 15152834 17761462 20834475 24325365 27474463 32030045 16.6% Agriculture, Hunting and Forestry 1824450 2104035 2404037 2589263 2737686 3154263 3696524 4439294 4486903 5132473 14.4% Crops 1324078 1523553 1743041 1831665 1901931 2250434 2638184 2904765 3259561 3717771 14.1% Livestock 336310 399611 447491 529630 580430 631254 744879 982709 991996 1124428 13.4% Forestry and hunting 164062 180871 213505 227968 255325 272575 313461 551820 235345 290274 23.3% Fishing 168598 182929 201771 219930 235045 269831 288719 389105 436863 514823 17.8% Industry and construction 1957554 2437259 2776974 3149293 3515928 4173741 4895331 5847691 6864302 8110505 18.2% Mining and quarrying 220000 288200 357368 457431 576363 742932 839513 941094 1072847 1255231 17.0% Manufacturing 866228 1002827 1129558 1269145 1395282 1625504 1935975 2434754 2899094 3482066 20.1% Electricity, gas 209640 227081 244977 271925 276915 335898 421216 479768 571130 684847 19.9% Water supply 32421 37597 42697 47696 54872 57816 63482 70934 79584 86818 9.1% Construction 629265 881554 1002374 1103096 1212496 1411592 1635146 1921141 2241647 2601543 16.1% Services 4230646 4763613 5419639 6247148 7170793 8413349 9884310 11275394 13048643 15232591 16.7% Trade and repairs 1298349 1454527 1593717 1752826 2044421 2416506 2875642 3341496 3909550 4597631 17.6% Hotels and restaurants 269120 286883 319365 394417 459584 559722 649278 635414 754037 856439 13.6% Transport 526710 577977 637720 706291 769830 886844 1037608 1409636 1646704 1996102 21.2% Communications 130496 161623 206877 277216 374241 487132 611350 596230 691627 811265 17.3% Financial intermediation 179715 204766 229370 265261 299734 345000 403727 477492 567822 666216 17.3% Real estate and business services 621333 723952 819300 980660 1120466 1318834 1416251 1508091 1709313 1939919 13.5% Public administration 754654 866917 1076215 1278881 1440913 1652556 2026815 2282763 2579522 2985562 15.7% Education 211372 223409 236813 251022 268594 289617 333060 392507 455308 519820 14.2% Health 151993 174789 200933 233032 275726 327658 383360 454990 532339 627520 17.9% Other social & personal services 86904 88770 99329 107542 117284 129482 147221 176775 202422 232119 14.7% Gross value added before adjustments 8181248 9487836 10802421 12205634 13659452 16011184 18764884 21951483 24836710 28990392 16.7% less FISIM -90400-105382 -120588-141723 -169661-208281 -260029-328478 -358049-432285 20.7% Gross value added at current basic prices 8090848 9382454 10681833 12063911 13489791 15802903 18504855 21623005 24478661 28558106 16.7% Add Taxes on products 704574 831707 999001 1367527 1663043 1958559 2329620 2702359 2995802 3471939 15.9% Non-monetary Gross domestic product at market prices 1649085 1892899 2290757 2533855 2788434 3186941 3947204 3887282 4819016 5502917 14.2% Agriculture, Hunting and Forestry 1163933 1375611 1712407 1821215 1970870 2258995 2677952 2505920 3295235 3754801 13.9% Crops 912131 1118034 1379855 1440478 1550759 1732893 2062143 2282315 2498098 2827601 13.2% Livestock 166490 163524 221530 262193 287342 359742 424496 152818 247999 281107 13.4% Forestry & hunting 85312 94053 111022 118544 132769 166360 191313 70786 549139 646093 17.7% Fishing 4391 4764 5254 5727 6409 7358 7873 10610 22810 27096 18.8% Industry and construction 94005 101224 122289 167464 208050 257315 299103 346074 361428 427741 18.3% Water supply 16245 16327 18777 20909 20937 27166 29828 33330 34107 39005 14.4% Construction 77760 84897 103512 146555 187113 230149 269274 312744 327321 388736 18.8% Services 386756 411300 450807 539449 603105 663273 962277 1024678 1139542 1293279 13.5% Real estate & business services 386756 411300 450807 539449 603105 663273 962277 1024678 1139542 1293279 13.5% Total GDP (at market prices) 10444507 12107060 13971591 15965293 17941268 20948403 24781679 28212646 32293479 37532962 16.2% Source: National Bureau of Statistic GROSS DOMESTIC PRODUCT (Monetary & Non-monetary GDPmp) BY KIND OF ECONOMIC ACTIVITY At current prices 11

SHARES OF GROSS DOMESTIC PRODUCT BY KIND OF ECONOMIC ACTIVITY Table No. 2 At market current prices Percentages ECONOMIC ACTIVITY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Agriculture, Hunting and Forestry 28.6 28.7 29.5 27.6 26.2 25.8 25.7 24.6 24.1 23.7 Crops 21.4 21.8 22.4 20.5 19.2 19.0 19.0 18.4 17.8 17.4 Livestock 4.8 4.7 4.8 5.0 4.8 4.7 4.7 4.0 3.8 3.7 Hunting and Forestry 2.4 2.3 2.3 2.2 2.2 2.1 2.0 2.2 2.4 2.5 Fishing 1.7 1.6 1.5 1.4 1.3 1.3 1.2 1.4 1.4 1.4 Industry and construction 19.6 21.0 20.8 20.8 20.8 21.2 21.0 22.0 22.4 22.7 Mining and quarrying 2.1 2.4 2.6 2.9 3.2 3.5 3.4 3.3 3.3 3.3 Manufacturing 8.3 8.3 8.1 7.9 7.8 7.8 7.8 8.6 9.0 9.3 Electricity, gas 2.0 1.9 1.8 1.7 1.5 1.6 1.7 1.7 1.8 1.8 Water supply 0.5 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.3 Construction 6.8 8.0 7.9 7.8 7.8 7.8 7.7 7.9 8.0 8.0 Services 44.2 42.7 42.0 42.5 43.3 43.3 43.8 43.6 43.9 44.0 Trade and repairs 12.4 12.0 11.4 11.0 11.4 11.5 11.6 11.8 12.1 12.2 Hotels and restaurants 2.6 2.4 2.3 2.5 2.6 2.7 2.6 2.3 2.3 2.3 Transport 5.0 4.8 4.6 4.4 4.3 4.2 4.2 5.0 5.1 5.3 Communications 1.2 1.3 1.5 1.7 2.1 2.3 2.5 2.1 2.1 2.2 Financial intermediation 1.7 1.7 1.6 1.7 1.7 1.6 1.6 1.7 1.8 1.8 Real estate and business services 9.7 9.4 9.1 9.5 9.6 9.5 9.6 9.0 8.8 8.6 Public administration 7.2 7.2 7.7 8.0 8.0 7.9 8.2 8.1 8.0 8.0 Education 2.0 1.8 1.7 1.6 1.5 1.4 1.3 1.4 1.4 1.4 Health 1.5 1.4 1.4 1.5 1.5 1.6 1.5 1.6 1.6 1.7 Other social and personal services 0.8 0.7 0.7 0.7 0.7 0.6 0.6 0.6 0.6 0.6 Gross value added before adjustments 94.1 94.0 93.7 92.3 91.7 91.6 91.6 91.6 91.8 91.9 less FISIM - 0.9-0.9-0.9-0.9-0.9-1.0-1.0-1.2-1.1-1.2 Gross value added at current basic prices 93.3 93.1 92.8 91.4 90.7 90.7 90.6 90.4 90.7 90.7 add Taxes on products 6.7 6.9 7.2 8.6 9.3 9.3 9.4 9.6 9.3 9.3 GDP (At current market prices) 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Source: National Bureau of Statistic 12

SHARES OF GROSS DOMESTIC PRODUCT BY KIND OF ECONOMIC ACTIVITY - Monetary & Non-monetary Table No. 2A At current prices Percentages ECONOMIC ACTIVITY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 A. MONETARY Gross domestic product at market prices 84.2 84.4 83.6 84.1 84.5 84.8 84.1 86.2 85.1 85.3 Agriculture, Hunting and Forestry 17.5 17.4 17.2 16.2 15.3 15.1 14.9 15.7 13.9 13.7 Crops 12.7 12.6 12.5 11.5 10.6 10.7 10.6 10.3 10.1 9.9 Livestock 3.2 3.3 3.2 3.3 3.2 3.0 3.0 3.5 3.1 3.0 Forestry and hunting 1.6 1.5 1.5 1.4 1.4 1.3 1.3 2.0 0.7 0.8 Fishing 1.6 1.5 1.4 1.4 1.3 1.3 1.2 1.4 1.4 1.4 Industry and construction 18.7 20.1 19.9 19.7 19.6 19.9 19.8 20.7 21.3 21.6 Mining and quarrying 2.1 2.4 2.6 2.9 3.2 3.5 3.4 3.3 3.3 3.3 Manufacturing 8.3 8.3 8.1 7.9 7.8 7.8 7.8 8.6 9.0 9.3 Electricity, gas 2.0 1.9 1.8 1.7 1.5 1.6 1.7 1.7 1.8 1.8 Water supply 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.2 0.2 Construction 6.0 7.3 7.2 6.9 6.8 6.7 6.6 6.8 6.9 6.9 Services 40.5 39.3 38.8 39.1 40.0 40.2 39.9 40.0 40.4 40.6 Trade and repairs 12.4 12.0 11.4 11.0 11.4 11.5 11.6 11.8 12.1 12.2 Hotels and restaurants 2.6 2.4 2.3 2.5 2.6 2.7 2.6 2.3 2.3 2.3 Transport 5.0 4.8 4.6 4.4 4.3 4.2 4.2 5.0 5.1 5.3 Communications 1.2 1.3 1.5 1.7 2.1 2.3 2.5 2.1 2.1 2.2 Financial intermediation 1.7 1.7 1.6 1.7 1.7 1.6 1.6 1.7 1.8 1.8 Real estate and business services 5.9 6.0 5.9 6.1 6.2 6.3 5.7 5.3 5.3 5.2 Public administration 7.2 7.2 7.7 8.0 8.0 7.9 8.2 8.1 8.0 8.0 Education 2.0 1.8 1.7 1.6 1.5 1.4 1.3 1.4 1.4 1.4 Health 1.5 1.4 1.4 1.5 1.5 1.6 1.5 1.6 1.6 1.7 Other social & personal services 0.8 0.7 0.7 0.7 0.7 0.6 0.6 0.6 0.6 0.6 Gross value added bef ore adjustments 78.3 78.4 77.3 76.5 76.1 76.4 75.7 77.8 76.9 77.2 less FISIM -0.9-0.9-0.9-0.9-0.9-1.0-1.0-1.2-1.1-1.2 Gross value added at c urrent basic prices 77.5 77.5 76.5 75.6 75.2 75.4 74.7 76.6 75.8 76.1 Add Taxes on products 6.7 6.9 7.2 8.6 9.3 9.3 9.4 9.6 9.3 9.3 B. NON MONETARY Gross domestic product at market prices 15.8 15.6 16.4 15.9 15.5 15.2 15.9 13.8 14.9 14.7 Agriculture, Hunting and Forestry 11.1 11.4 12.3 11.4 11.0 10.8 10.8 8.9 10.2 10.0 Crops 8.7 9.2 9.9 9.0 8.6 8.3 8.3 8.1 7.7 7.5 Livestock 1.6 1.4 1.6 1.6 1.6 1.7 1.7 0.5 0.8 0.7 Forestry & hunting 0.8 0.8 0.8 0.7 0.7 0.8 0.8 0.3 1.7 1.7 Fishing 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.1 Industry and construction 0.9 0.8 0.9 1.0 1.2 1.2 1.2 1.2 1.1 1.1 Water supply 0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 Construction 0.7 0.7 0.7 0.9 1.0 1.1 1.1 1.1 1.0 1.0 Services 3.7 3.4 3.2 3.4 3.4 3.2 3.9 3.6 3.5 3.4 Real estate & business services 3.7 3.4 3.2 3.4 3.4 3.2 3.9 3.6 3.5 3.4 Total GDP at market prices 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Source: National Bureau of Statistic 13

Table No. 2B GROSS DOMESTIC PRODUCT AND EXPENDITURE At current market prices Sh. Million 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Gross Domestic Product (GDPmp) 10444508 12107061 13971593 15965296 17941268 20948403 24781679 28212646 32293479 37532962 Final Consumption 8885098 10300882 11714438 13386429 15340093 18270124 20781786 23403570 25417627 30961308 Households 7512354 8442113 9352717 10581908 12195212 14231135 16460068 18476811 20209449 24815658 Government 1372744 1858769 2361721 2804521 3144881 4038989 4321718 4926759 5208178 6145650 Investment 1795412 2320538 3153367 4001088 4957782 6209741 7381257 8173221 10342536 13762066 Gross Fixed Capital Formation 1750816 2277151 3095522 3936683 4883490 6119013 7274314 8020970 10177693 13534066 Changes in Inventory 44596 43387 57845 64405 74292 90728 106943 152252 164843 228000 Exports 1836223 2247385 2745596 3324425 4047990 5078248 6230729 6553198 8988306 11656768 Goods 946834 1263064 1551554 1891705 2176987 2748509 3636824 3833992 6003332 7962151 Services 889389 984321 1194042 1432720 1871003 2329739 2593906 2719206 2984974 3694618 Imports -2072225-2761744 -3641808-4746646 -6404597-8609710 -9612093-9917343 -12454990-18847180 Goods -1460825-2008052 -2615149-3383801 -4837467-6606784 -7698354-7622953 -9,898,943-15,383,213 Services -611400-753692 -1026659-1362845 -1567130-2002926 -1913739-2294390 -2,556,047-3,463,966 Source: National Bureau of Statistic 14

GROSS DOMESTIC PRODUCT BY KIND OF ECONOMIC ACTIVITY Table No.3 At constant 2001 prices Shs. million 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Change ECONOMIC ACTIVITY 2010/2011 Agriculture, Hunting and Forestry 2766479 2850956 3017988 3148384 3268238 3399648 3554488 3669646 3824428 3960673 3.6% Crops 2055634 2122361 2262725 2361930 2457373 2567955 2698921 2790684 2913474 3015446 3.5% Livestock 472500 483001 503000 525109 537498 550398 564708 577922 597572 620877 3.9% Hunting and Forestry 238345 245594 252263 261345 273367 281295 290859 301039 313382 324350 3.5% Fishing 164049 173892 185543 196676 206510 215734 226521 232637 236126 238960 1.2% Industry and construction 1792024 1988081 2204619 2433261 2639902 2889519 3138241 3357703 3633664 3883366 6.9% Mining and quarrying 187000 219000 254000 295000 341000 377559 386998 391642 402331 411182 2.2% Manufacturing 819200 893000 977000 1071000 1162000 1263435 1388515 1499596 1618064 1744273 7.8% Electricity, gas 209000 223953 240708 263218 258347 286507 301978 327344 360733 366144 1.5% Water supply 45084 47128 49557 51700 54905 58474 62333 65824 69955 72753 4.0% Construction 531740 605000 683354 752343 823650 903544 998416 1073297 1182581 1289013 9.0% Services 4460699 4806587 5182094 5596784 6035932 6527561 7085136 7594661 8214209 8860652 7.9% Trade and repairs 1281544 1405698 1486931 1585906 1736631 1906821 2097503 2254816 2439711 2637328 8.1% Hotels and restaurants 267162 275836 285732 301873 314921 328859 343658 358779 380664 398175 4.6% Transport 516000 541901 588574 627951 661000 703965 752539 797691 853529 910715 6.7% Communications 124549 144039 169158 200900 239537 287684 346659 422577 515967 614001 19.0% Financial intermediation 154108 170643 184775 204694 228000 251280 281120 306339 337356 373453 10.7% Real estate and business services 1003260 1068732 1141014 1226790 1316000 1408120 1508097 1610647 1723392 1835413 6.5% Public administration 699561 766760 871169 970786 1033488 1102951 1180158 1232313 1312414 1401658 6.8% Education 202000 207606 215910 224547 235774 248742 265905 284704 305402 328002 7.4% Health 129229 140437 151370 163572 177520 193142 210525 224654 240058 253021 5.4% Other social and personal services 83286 84935 87461 89765 93061 95998 98974 102141 105716 108887 3.0% Gross value added before adjustments 9183251 9819516 10590244 11375105 12150582 13032462 14004385 14854646 15908427 16943651 6.5% less FISIM -87000-97154 -106931-119497 -137287-158292 -175704-190990 -208370-231708 11.2% Gross value added at current basic prices 9096251 9722362 10483313 11255608 12013295 12874170 13828681 14663656 15700057 16711943 6.4% add Taxes on products 655926 701372 756422 812482 867868 927751 999664 1057645 1128507 1201860 6.5% GDP (market prices) 9752177 10423734 11239735 12068090 12881163 13801921 14828345 15721301 16828563 17913803 6.4% Source : National Bureau of Statistic 15

GROSS DOMESTIC PRODUCT (Monetary & Non-monetary GDPmp) BY KIND OF ECONOMIC ACTIVITY Table No.3A At constant 2001 prices Shs. million 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Change ECONOMIC ACTIVITY 2010/2011 A. MONETARY Gross Domestic Product at market prices 8223867 8833128 9525201 10300744 11021170 11852682 12767259 13536636 14566980 15501904 6.4% Agriculture, Hunting and Forestry 1858279 1913425 1993064 2114515 2187610 2277890 2379345 2430546 2559774 2604826 1.8% Crops 1225544 1259304 1312030 1399662 1446975 1510406 1587437 1617938 1723526 1748958 1.5% Livestock 316043 323067 334237 351232 359519 371398 379387 388264 400373 409779 2.3% Forestry and hunting 156806 161575 165963 171937 179847 185827 191750 198686 206832 214071 3.5% Fishing 159886 169479 180834 191684 201269 210259 220772 225658 229043 232018 1.3% Industry and construction 1699749 1893028 2106686 2326418 2522828 2760870 2996217 3208502 3470768 3706858 6.8% Mining and quarrying 187000 219000 254000 295000 341000 377559 386998 391642 402331 411182 2.2% Manufacturing 819200 893000 977000 1071000 1162000 1263435 1388515 1499596 1618064 1744273 7.8% Electricity, gas 209000 223953 240708 263218 258347 286507 301978 327344 360733 366144 1.5% Water supply 30569 32062 33903 35417 37950 40841 43536 45418 48969 50927 4.0% Construction 453980 525013 601075 661783 723531 792529 875190 944502 1040671 1134332 9.0% Services 4096913 4422457 4775960 5166826 5580151 6044462 6567737 7030934 7616302 8220068 7.9% Trade and repairs 1281544 1405698 1486931 1585906 1736631 1906821 2097503 2254816 2439711 2637328 8.1% Hotels and restaurants 267162 275836 285732 301873 314921 328859 343658 358779 380664 398175 4.6% Transport 516000 541901 588574 627951 661000 703965 752539 797691 853529 910715 6.7% Communications 124549 144039 169158 200900 239537 287684 346659 422577 515967 614001 19.0% Financial intermediation 154108 170643 184775 204694 228000 251280 281120 306339 337356 373453 10.7% Real estate and business services 639474 684602 734880 796832 860219 925021 990697 1046921 1125486 1194828 6.2% Public administration 699561 766760 871169 970786 1033488 1102951 1180158 1232313 1312414 1401658 6.8% Education 202000 207606 215910 224547 235774 248742 265905 284704 305402 328002 7.4% Health 129229 140437 151370 163572 177520 193142 210525 224654 240058 253021 5.4% Other social & personal services 83286 84935 87461 89765 93061 95998 98974 102141 105716 108887 3.0% Gross value added before adjustments 7654941 8228910 8875710 9607759 10290589 11083223 11943299 12669982 13646844 14531752 6.5% less FISIM -87000-97154 -106931-119497 -137287-158292 -175704-190990 -208370-231708 11.2% Gross value added at current basic prices 7567941 8131756 8768779 9488262 10153302 10924931 11767595 12478992 13438474 14300044 6.4% Add Taxes on products 655926 701372 756422 812482 867868 927751 999664 1057645 1128507 1201860 6.5% B. NON MONETARY Gross domestic product at market prices 1528311 1590607 1714533 1767345 1859993 1949239 2061086 2184664 2261583 2411899 6.6% Agriculture, Hunting and Forestry 1072250 1111424 1210467 1230544 1287138 1337492 1401663 1471737 1500780 1594807 6.3% Crops 830090 863057 950694 962268 1010398 1057549 1111484 1172746 1189948 1266487 6.4% Livestock 156457 159934 168763 173877 177979 179000 185322 189658 197199 211098 7.0% Forestry & hunting 81539 84019 86301 89407 93520 95468 99109 102353 106550 110279 3.5% Fishing 4164 4414 4709 4992 5241 5475 5749 6979 7084 6942-2.0% Industry and construction 92275 95053 97933 106843 117074 128648 142024 149201 162896 176508 8.4% Water supply 14515 15066 15654 16283 16955 17633 18797 20405 20987 21826 4.0% Construction 77760 79987 82279 90560 100119 111015 123227 128796 141910 154682 9.0% Services 363786 384130 406133 429958 455781 483099 517399 563726 597907 640585 7.1% Real estate & business services 363786 384130 406133 429958 455781 483099 517399 563726 597907 640585 7.1% Total GDP (At constant 2001 prices) 9752178 10423735 11239734 12068089 12881163 13801921 14828345 15721301 16828563 17913803 6.4% Source : National Bureau of Statistic 16

Table No.4 GROSS DOMESTIC PRODUCT BY KIND OF ECONOMIC ACTIVITY - ANNUAL GROWTH RATES At constant 2001 prices Percentages ECONOMIC ACTIVITY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Agriculture, Hunting and Forestry 4.9 3.1 5.9 4.3 3.8 4.0 4.6 3.2 4.2 3.6 Crops 5.6 3.2 6.6 4.4 4.0 4.5 5.1 3.4 4.4 3.5 Livestock 2.8 2.2 4.1 4.4 2.4 2.4 2.6 2.3 3.4 3.9 Hunting and Forestry 3.3 3.0 2.7 3.6 4.6 2.9 3.4 3.5 4.1 3.5 Fishing 6.8 6.0 6.7 6.0 5.0 4.5 5.0 2.7 1.5 1.2 Industry and construction 9.4 10.9 10.9 10.4 8.5 9.5 8.6 7.0 8.2 6.9 Mining and quarrying 16.9 17.1 16.0 16.1 15.6 10.7 2.5 1.2 2.7 2.2 Manufacturing 7.5 9.0 9.4 9.6 8.5 8.7 9.9 8.0 7.9 7.8 Electricity, gas 6.2 7.2 7.5 9.4-1.9 10.9 5.4 8.4 10.2 1.5 Water supply 2.8 4.5 5.2 4.3 6.2 6.5 6.6 5.6 6.3 4.0 Construction 11.9 13.8 13.0 10.1 9.5 9.7 10.5 7.5 10.2 9.0 Services 7.7 7.8 7.8 8.0 7.8 8.1 8.5 7.2 8.2 7.9 Trade and repairs 8.3 9.7 5.8 6.7 9.5 9.8 10.0 7.5 8.2 8.1 Hotels and restaurants 6.4 3.2 3.6 5.6 4.3 4.4 4.5 4.4 6.1 4.6 Transport 5.9 5.0 8.6 6.7 5.3 6.5 6.9 6.0 7.0 6.7 Communications 10.4 15.6 17.4 18.8 19.2 20.1 20.5 21.9 22.1 19.0 Financial intermediation 10.1 10.7 8.3 10.8 11.4 10.2 11.9 9.0 10.1 10.7 Real estate and business services 7.1 6.5 6.8 7.5 7.3 7.0 7.1 6.8 7.0 6.5 Public administration 9.2 9.6 13.6 11.4 6.5 6.7 7.0 4.4 6.5 6.8 Education 7.0 2.8 4.0 4.0 5.0 5.5 6.9 7.1 7.3 7.4 Health 8.6 8.7 7.8 8.1 8.5 8.8 9.0 6.7 6.9 5.4 Other social and personal services 2.1 2.0 3.0 2.6 3.7 3.2 3.1 3.2 3.5 3.0 Gross value added before adjustments 7.2 6.9 7.8 7.4 6.8 7.3 7.5 6.1 7.1 6.5 less FISIM 8.7 11.7 10.1 11.8 14.9 15.3 11.0 8.7 9.1 11.2 Gross value added at current basic prices 7.2 6.9 7.8 7.4 6.7 7.2 7.4 6.0 7.1 6.4 add Taxes on products 7.2 6.9 7.8 7.4 6.8 6.9 7.8 5.8 6.7 6.5 GDP (Constant prices) 7.2 6.9 7.8 7.4 6.7 7.1 7.4 6.0 7.0 6.4 Source : National Bureau of Statistic 17

GROSS DOMESTIC PRODUCT (Monetary & Non-monetary GDPmp) BY KIND OF ECONOMIC ACTIVITY - ANNUAL GROWTH RATES Table No. 4A At constant 2001 prices percentages ECONOMIC ACTIVITY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 A. MONETARY Gross domestic product at market prices 7.7 7.4 7.8 8.1 7.0 7.5 7.7 6.0 7.6 6.4 Agriculture, Hunting and Forestry 5.5 3.0 4.2 6.1 3.5 4.1 4.5 2.2 5.3 1.8 Crops 6.4 2.8 4.2 6.7 3.4 4.4 5.1 1.9 6.5 1.5 Livestock 2.8 2.2 3.5 5.1 2.4 3.3 2.2 2.3 3.1 2.3 Forestry and hunting 3.3 3.0 2.7 3.6 4.6 3.3 3.2 3.6 4.1 3.5 Fishing 6.8 6.0 6.7 6.0 5.0 4.5 5.0 2.2 1.5 1.3 Industry and construction 9.6 11.4 11.3 10.4 8.4 9.4 8.5 7.1 8.2 6.8 Mining and quarrying 16.9 17.1 16.0 16.1 15.6 10.7 2.5 1.2 2.7 2.2 Manufacturing 7.5 9.0 9.4 9.6 8.5 8.7 9.9 8.0 7.9 7.8 Electricity, gas 6.2 7.2 7.5 9.4-1.9 10.9 5.4 8.4 10.2 1.5 Water supply 2.8 4.9 5.7 4.5 7.2 7.6 6.6 4.3 7.8 4.0 Construction 13.1 15.6 14.5 10.1 9.3 9.5 10.4 7.9 10.2 9.0 Services 8.0 7.9 8.0 8.2 8.0 8.3 8.7 7.1 8.3 7.9 Trade and repairs 8.3 9.7 5.8 6.7 9.5 9.8 10.0 7.5 8.2 8.1 Hotels and restaurants 6.4 3.2 3.6 5.6 4.3 4.4 4.5 4.4 6.1 4.6 Transport 5.9 5.0 8.6 6.7 5.3 6.5 6.9 6.0 7.0 6.7 Communications 10.4 15.6 17.4 18.8 19.2 20.1 20.5 21.9 22.1 19.0 Financial intermediation 10.1 10.7 8.3 10.8 11.4 10.2 11.9 9.0 10.1 10.7 Real estate and business services 8.1 7.1 7.3 8.4 8.0 7.5 7.1 5.7 7.5 6.2 Public administration 9.2 9.6 13.6 11.4 6.5 6.7 7.0 4.4 6.5 6.8 Education 7.0 2.8 4.0 4.0 5.0 5.5 6.9 7.1 7.3 7.4 Health 8.6 8.7 7.8 8.1 8.5 8.8 9.0 6.7 6.9 5.4 Other social & personal services 2.1 2.0 3.0 2.6 3.7 3.2 3.1 3.2 3.5 3.0 Gross value added before adjustments 7.7 7.5 7.9 8.2 7.1 7.7 7.8 6.1 7.7 6.5 less FISIM 8.7 11.7 10.1 11.8 14.9 15.3 11.0 8.7 9.1 11.2 Gross value added at current basic prices 7.7 7.5 7.8 8.2 7.0 7.6 7.7 6.0 7.7 6.4 Add Taxes on products 7.2 6.9 7.8 7.4 6.8 6.9 7.8 5.8 6.7 6.5 B. NON MONETARY Gross domestic product at market prices 4.5 4.1 7.8 3.1 5.2 4.8 5.7 6.0 3.5 6.6 Agriculture, Hunting and Forestry 4.2 3.7 8.9 1.7 4.6 3.9 4.8 5.0 2.0 6.3 Crops 4.5 4.0 10.2 1.2 5.0 4.7 5.1 5.5 1.5 6.4 Livestock 2.8 2.2 5.5 3.0 2.4 0.6 3.5 2.3 4.0 7.0 Forestry & hunting 3.3 3.0 2.7 3.6 4.6 2.1 3.8 3.3 4.1 3.5 Fishing 6.8 6.0 6.7 6.0 5.0 4.5 5.0 21.4 1.5-2.0 Industry and construction 4.6 3.0 3.0 9.1 9.6 9.9 10.4 5.1 9.2 8.4 Water supply 3.0 3.8 3.9 4.0 4.1 4.0 6.6 8.6 2.8 4.0 Construction 4.9 2.9 2.9 10.1 10.6 10.9 11.0 4.5 10.2 9.0 Services 5.5 5.6 5.7 5.9 6.0 6.0 7.1 9.0 6.1 7.1 Real estate & business services 5.5 5.6 5.7 5.9 6.0 6.0 7.1 9.0 6.1 7.1 Total GDP at market prices 7.2 6.9 7.8 7.4 6.7 7.1 7.4 6.0 7.0 6.4 Source : National Bureau of Statistic 18

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Table No. 4B ECONOMIC ACTIVITY SHARES OF GROSS DOMESTIC PRODUCT BY KIND OF ECONOMIC ACTIVITY At constant 2001 prices 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Agriculture, Hunting and Forestry 28.4% 27.4% 26.9% 26.1% 25.4% 24.6% 24.0% 23.3% 22.7% 22.1% Crops 21.1% 20.4% 20.1% 19.6% 19.1% 18.6% 18.2% 17.8% 17.3% 16.8% Livestock 4.8% 4.6% 4.5% 4.4% 4.2% 4.0% 3.8% 3.7% 3.6% 3.5% Hunting and Forestry 2.4% 2.4% 2.2% 2.2% 2.1% 2.0% 2.0% 1.9% 1.9% 1.8% Fishing 1.7% 1.7% 1.7% 1.6% 1.6% 1.6% 1.5% 1.5% 1.4% 1.3% Industry and construction 18.4% 19.1% 19.6% 20.2% 20.5% 20.9% 21.2% 21.4% 21.6% 21.7% Mining and quarrying 1.9% 2.1% 2.3% 2.4% 2.6% 2.7% 2.6% 2.5% 2.4% 2.3% Manufacturing 8.4% 8.6% 8.7% 8.9% 9.0% 9.2% 9.4% 9.5% 9.6% 9.7% Electricity, gas 2.1% 2.1% 2.1% 2.2% 2.0% 2.1% 2.0% 2.1% 2.1% 2.0% Water supply 0.5% 0.5% 0.4% 0.4% 0.4% 0.4% 0.4% 0.4% 0.4% 0.4% Construction 5.5% 5.8% 6.1% 6.2% 6.4% 6.5% 6.7% 6.8% 7.0% 7.2% Services 45.7% 46.1% 46.1% 46.4% 46.9% 47.3% 47.8% 48.3% 48.8% 49.5% Trade and repairs 13.1% 13.5% 13.2% 13.1% 13.5% 13.8% 14.1% 14.3% 14.5% 14.7% Hotels and restaurants 2.7% 2.6% 2.5% 2.5% 2.4% 2.4% 2.3% 2.3% 2.3% 2.2% Transport 5.3% 5.2% 5.2% 5.2% 5.1% 5.1% 5.1% 5.1% 5.1% 5.1% Communications 1.3% 1.4% 1.5% 1.7% 1.9% 2.1% 2.3% 2.7% 3.1% 3.4% Financial intermediation 1.6% 1.6% 1.6% 1.7% 1.8% 1.8% 1.9% 1.9% 2.0% 2.1% Real estate and business services 10.3% 10.3% 10.2% 10.2% 10.2% 10.2% 10.2% 10.2% 10.2% 10.2% Public administration 7.2% 7.4% 7.8% 8.0% 8.0% 8.0% 8.0% 7.8% 7.8% 7.8% Education 2.1% 2.0% 1.9% 1.9% 1.8% 1.8% 1.8% 1.8% 1.8% 1.8% Health 1.3% 1.3% 1.3% 1.4% 1.4% 1.4% 1.4% 1.4% 1.4% 1.4% Other social and personal services 0.9% 0.8% 0.8% 0.7% 0.7% 0.7% 0.7% 0.6% 0.6% 0.6% Gross value added before adjustments 94.2% 94.2% 94.2% 94.3% 94.3% 94.4% 94.4% 94.5% 94.5% 94.6% less FISIM -0.9% -0.9% -1.0% -1.0% -1.1% -1.1% -1.2% -1.2% -1.2% -1.3% Gross value added at current basic prices 93.3% 93.3% 93.3% 93.3% 93.3% 93.3% 93.3% 93.3% 93.3% 93.3% add Taxes on products 6.7% 6.7% 6.7% 6.7% 6.7% 6.7% 6.7% 6.7% 6.7% 6.7% Total GDP (at constant 2001 market price) 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Source : National Bureau of Statistic 20

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SHARES OF GROSS DOMESTIC PRODUCT BY KIND OF ECONOMIC ACTIVITY - Monetary and non-monetary Table No.4C At constant 2001 prices 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 ECONOMIC ACTIVITY A. MONETARY Gross domestic product at market prices 84.3% 84.7% 84.7% 85.4% 85.6% 85.9% 86.1% 86.1% 86.6% 86.5% Agriculture, Hunting and Forestry 19.1% 18.4% 17.7% 17.5% 17.0% 16.5% 16.0% 15.5% 15.2% 14.5% Crops 12.6% 12.1% 11.7% 11.6% 11.2% 10.9% 10.7% 10.3% 10.2% 9.8% Livestock 3.2% 3.1% 3.0% 2.9% 2.8% 2.7% 2.6% 2.5% 2.4% 2.3% Forestry and hunting 1.6% 1.6% 1.5% 1.4% 1.4% 1.3% 1.3% 1.3% 1.2% 1.2% Fishing 1.6% 1.6% 1.6% 1.6% 1.6% 1.5% 1.5% 1.4% 1.4% 1.3% Industry and construction 17.4% 18.2% 18.7% 19.3% 19.6% 20.0% 20.2% 20.4% 20.6% 20.7% Mining and quarrying 1.9% 2.1% 2.3% 2.4% 2.6% 2.7% 2.6% 2.5% 2.4% 2.3% Manufacturing 8.4% 8.6% 8.7% 8.9% 9.0% 9.2% 9.4% 9.5% 9.6% 9.7% Electricity, gas 2.1% 2.1% 2.1% 2.2% 2.0% 2.1% 2.0% 2.1% 2.1% 2.0% Water supply 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% Construction 4.7% 5.0% 5.3% 5.5% 5.6% 5.7% 5.9% 6.0% 6.2% 6.3% Services 42.0% 42.4% 42.5% 42.8% 43.3% 43.8% 44.3% 44.7% 45.3% 45.9% Trade and repairs 13.1% 13.5% 13.2% 13.1% 13.5% 13.8% 14.1% 14.3% 14.5% 14.7% Hotels and restaurants 2.7% 2.6% 2.5% 2.5% 2.4% 2.4% 2.3% 2.3% 2.3% 2.2% Transport 5.3% 5.2% 5.2% 5.2% 5.1% 5.1% 5.1% 5.1% 5.1% 5.1% Communications 1.3% 1.4% 1.5% 1.7% 1.9% 2.1% 2.3% 2.7% 3.1% 3.4% Financial intermediation 1.6% 1.6% 1.6% 1.7% 1.8% 1.8% 1.9% 1.9% 2.0% 2.1% Real estate and business s ervices 6.6% 6.6% 6.5% 6.6% 6.7% 6.7% 6.7% 6.7% 6.7% 6.7% Public administration 7.2% 7.4% 7.8% 8.0% 8.0% 8.0% 8.0% 7.8% 7.8% 7.8% Education 2.1% 2.0% 1.9% 1.9% 1.8% 1.8% 1.8% 1.8% 1.8% 1.8% Health 1.3% 1.3% 1.3% 1.4% 1.4% 1.4% 1.4% 1.4% 1.4% 1.4% Other social & personal services 0.9% 0.8% 0.8% 0.7% 0.7% 0.7% 0.7% 0.6% 0.6% 0.6% Gross value added before adjustments 78.5% 78.9% 79.0% 79.6% 79.9% 80.3% 80.5% 80.6% 81.1% 81.1% less FISIM -0.9% -0.9% -1.0% -1.0% -1.1% -1.1% -1.2% -1.2% -1.2% -1.3% Gross value added at current basic prices 77.6% 78.0% 78.0% 78.6% 78.8% 79.2% 79.4% 79.4% 79.9% 79.8% Add Taxes on products 6.7% 6.7% 6.7% 6.7% 6.7% 6.7% 6.7% 6.7% 6.7% 6.7% B. NON MONETARY Gross domestic product at market prices 15.7% 15.3% 15.3% 14.6% 14.4% 14.1% 13.9% 13.9% 13.4% 13.5% Agriculture, Hunting and Forestry 11.0% 10.7% 10.8% 10.2% 10.0% 9.7% 9.5% 9.4% 8.9% 8.9% Crops 8.5% 8.3% 8.5% 8.0% 7.8% 7.7% 7.5% 7.5% 7.1% 7.1% Livestock 1.6% 1.5% 1.5% 1.4% 1.4% 1.3% 1.2% 1.2% 1.2% 1.2% Forestry & hunting 0.8% 0.8% 0.8% 0.7% 0.7% 0.7% 0.7% 0.7% 0.6% 0.6% Fishing 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Industry and construction 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 1.0% 0.9% 1.0% 1.0% Water supply 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% Construction 0.8% 0.8% 0.7% 0.8% 0.8% 0.8% 0.8% 0.8% 0.8% 0.9% Services 3.7% 3.7% 3.6% 3.6% 3.5% 3.5% 3.5% 3.6% 3.6% 3.6% Real estate & business services 3.7% 3.7% 3.6% 3.6% 3.5% 3.5% 3.5% 3.6% 3.6% 3.6% Total GDP at market prices 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Source : National Bureau of Statistic 23

Table No. 4D GROSS DOMESTIC PRODUCT AND EXPENDITURE At constant 2001 prices Shs. Million ECONOMIC ACTIVITY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Gross Domestic Product (GDPbp) 9096251 9722362 10483313 11255608 12013295 12874170 13828681 14663656 15700057 16711943 Net taxes on product 655926 701372 756422 812482 867868 927751 999664 1057645 1128507 1201860 Gross Domestic Product (GDPmp) 9752177 10423734 11239735 12068090 12881163 13801921 14828345 15721301 16828563 17913803 EXPENDITURE ON GROSS DOMESTIC PRODUCT Gross Domestic Product (GDPmp) 9752178 10423735 11239734 12068090 12881163 13801921 14828345 15721301 16828563 17913803 Final Consumption 8486320 9052080 9748544 10855260 11735476 12517666 13337233 13838779 15010200 16876872 Households 7213608 7410284 7866521 8748590 9456059 10021704 10512581 10870070 11538082 12911937 Government 1272712 1641796 1882023 2106670 2279417 2495962 2824652 2968710 3472119 3964935 Investment 1711262 1945657 2144198 2535317 2938619 3358305 3616866 3982283 4385837 5762294 Gross Fixed Capital Formation 1669823 1903295 2100914 2493633 2893604 3313177 3571629 3928805 4332960 5694294 Changes in Inventory 41439 42362 43284 41684 45015 45128 45237 53478 52877 68000 Exports 1666860 1991479 2157615 2449820 2369701 2768705 3311236 3479706 4533457 5779880 Goods 814494 1049683 1120049 1256370 1004797 1089513 1441642 1519800 2401333 3159584 Services 852366 941796 1037566 1193450 1364904 1679192 1869594 1959906 2132124 2620296 Imports -2112264-2565481 -2810623-3772307 -4162633-4842754 -5436991-5579468 -7100931-10505242 Goods -1489051-1865350 -2018283-2689212 -3146854-3861190 -4499134-4455068 -5822908-8790408 Services -623213-700131 -792340-1083095 -1015779-981564 -937856-1124400 -1278024-1714835 Source : National Bureau of Statistic 24

Table No. 5 (Shs. million) Type 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Buildings: Residential 150406 173687 266443 349977 390219 484652 581583 709531 865628 1056066 Rural Own Account 292190 348806 467417 552039 585329 701224 820432 951702 1103974 1280610 Non-Residential 260413 509560 706356 947093 1035628 1282108 1538914 1877475 2290520 2794434 Total 703009 1032053 1440216 1849109 2011176 2467985 2940930 3538708 4260122 5131110 Other Works: Land Improvement 74044 42408 110434 119416 125256 137170 149515 182409 222539 271497 Roads & Bridges 34259 35589 36920 39580 43239 51455 61797 75393 91979 65314 Water Supply 223668 400163 479828 629842 701791 827411 984619 1153974 1352457 1585080 Others 121949 88023 181805 245349 271512 344820 413784 508954 626014 769997 Total 453920 566183 808987 1034187 1141798 1360856 1609716 1920729 2292989 2691887 Equipment: CAPITAL FORMATION BY TYPE OF ASSETS (At Current Prices) Transport Equipment 219771 252439 293604 410919 629648 817913 956958 972933 1613525 1713512 Other Equipment 374117 438122 552715 665348 1100867 1472259 1766711 1588599 2011057 3997556 Total 593888 690561 846319 1076267 1730515 2290172 2723669 2561532 3624582 5711068 Fixed Capital Formation 1750817 2288797 3095522 3959563 4883489 6119013 7274314 8020970 10177693 13534066 Increase in Stocks 44596 43387 57845 64405 74292 90728 106943 152252 164843 228000 Total Capital Formation 1795413 2332184 3153367 4023968 4957781 6209741 7381257 8173221 10342536 13762066 Source: National Bureau of Statistics 25

Table No. 6: CAPITAL FORMATION BY TYPE OF ASSETS At Constant 2001 Prices Shs. Million 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 % change, 2010/11 Type Buildings: Residential 145986 141750 176418 185882 206555 230059 244363 260491 277683 296010 6.6% Rural Own Account 270713 271724 283345 295766 314832 321112 339078 357405 376705 397047 5.4% Non-Residential 252762 415860 460289 473808 491387 525622 557960 593111 630477 670197 6.3% Total 669461 829334 920052 955456 1012774 1076793 1141401 1211008 1284866 1363255 6.1% Other Works: Land Improvement 68506 32988 46779 75517 111237 143282 151009 159013 167440 176314 5.3% Roads & Bridges 32277 28289 22813 21178 23724 26018 27666 25875 23234 21027-9.5% Water Supply 206945 311305 311908 359854 396306 439900 466694 496096 527350 560573 6.3% Others 112833 68480 88285 130762 185891 242773 256940 271329 286523 302568 5.6% Total 420561 441062 469785 587311 717158 851973 902309 952312 1004548 1060483 5.6% Equipment: Transport Equipment 186549 226955 262150 350639 386998 452401 484069 670407 855005 907988 6.2% Other Equipment 393251 415201 448928 612469 776675 932009 1043851 1095078 1188541 2362568 98.8% Total 579800 642156 711078 963108 1163673 1384410 1527920 1765485 2043546 3270556 60.0% Fixed Capital Formation 1669822 1912552 2100915 2505875 2893605 3313177 3571629 3928805 4332960 5694294 31.4% Increase in Stocks 41439 42362 43284 41684 45015 45128 45237 53478 52877 68000 28.6% Total Capital Formation 1711261 1954914 2144199 2547559 2938620 3358305 3616866 3982283 4385837 5762294 31.4% Source: National Bureau of Statistics 26

Table No. 7 Shs. million Sector 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Public Sector: Central Gov't 568022 753610 953157 1039910 1134578 1352763 1628172 1921243 2267067 2675139 Parastatals 59405 72745 119245 162413 141822 141570 148299 157197 166629 176626 Institutions++ 72900 89624 120042 138362 141822 144659 152971 163067 173830 185302 Total Public Sector: 700327 915979 1192444 1340685 1418222 1638992 1929442 2241507 2607525 3037067 Private Sector 1050490 1372817 1903078 2618878 3465267 4480021 5344872 5779463 7570168 10496998 Total Fixed Capital 1750817 2288796 3095522 3959563 4883489 6119013 7274314 8020970 10177693 13534066 Increase in Stocks 44596 43387 57845 64405 74292 90728 106943 152252 164843 228000 Total Capital Formation 1795413 2332183 3153367 4023968 4957781 6209741 7381257 8173221 10342536 13762066 Source: National Bureau of Statistics ++ Includes non-profit making organisations CAPITAL FORMATION BY PUBLIC AND PRIVATE SECTORS At Current Prices 27

INDEX OF RETAIL PRICES OF GOODS CONSUMED BY MINIMUM WAGE EARNERS IN DAR ES SALAAM (2001=100) Table 8 YEAR ALL ITEMS FOOD INDEX % CHANGE INDEX % CHANGE 1982 1.1-1.3-1983 1.4 23.6 1.6 21.9 1984 1.6 17.5 1.7 7.7 1985 2.3 45.1 2.5 45.2 1986 3.3 42.2 3.7 50.8 1987 4.2 26.6 4.6 25.0 1988 5.4 29.5 6.1 31.3 1989 7.0 30.7 7.8 29.1 1990 9.3 31.8 9.9 26.7 1991 12.6 36.0 13.3 34.0 1992 13.5 7.0 16.7 25.7 1993 16.6 22.9 20.1 20.4 1994 24.9 50.5 27.7 37.5 1995 27.1 8.5 29.6 7.0 1996 32.4 19.9 34.1 15.3 1997 34.6 6.8 35.8 4.8 1998 37.0 6.8 38.1 6.4 1999 37.3 0.9 37.6-1.2 2000 38.0 1.7 36.9-2.0 2001 41.2 8.5 40.2 8.9 2002 42.8 3.8 41.8 4.0 2003 45.2 5.8 44.0 5.4 2004 48.1 6.4 47.0 6.8 2005 52.1 8.3 50.5 7.3 2006 58.1 11.5 55.7 10.3 2007 63.5 9.3 60.9 9.3 2008 74.5 17.3 70.1 15.2 2009 87.0 16.8 83.8 19.4 2010* 98.6 13.2 98.8 18.0 2011 105.9 7.4 105.8 7.1 Source: National Bureau of Statistics * The reference period for the NCPI has been changed from Sept. 2010 following the internationally recommended Classification of Individual Consumption by Purpose (COICOP). 28

MINIMUM WAGE EARNERS IN DAR ES SALAAM (2001=100) Table No. 9 Beverages Electricity, Clothing Furniture Services Recreation OVERALL Year Food and Rent Kerosene and and and other Health and Transport Education Others PRICE Cigarettes and Water Footwear Household Household Services Entertain. INDEX Utensils Requirements 2005 First Quarter 124.1 120.3 113.6 149.0 107.5 119.2 109.3 110.2 108.2 103.4 118.0 112.8 123.3 Second Quarter 123.2 119.7 113.6 163.4 109.6 115.3 109.4 111.0 110.0 108.4 116.7 114.5 124.7 Third Quarter 125.7 119.9 113.6 165.9 108.9 114.5 110.2 113.8 111.7 110.4 105.3 119.9 126.8 Fourth Quarter 129.9 119.9 113.6 170.9 108.8 113.7 111.3 119.2 111.6 116.8 120.1 137.3 131.0 2006 First Quarter 135.2 130.2 129.9 179.6 107.7 114.4 108.4 119.8 117.6 133.0 98.0 149.7 137.0 Second Quarter 139.7 137.6 132.8 195.0 106.1 114.6 108.9 119.9 114.1 133.8 89.9 148.4 141.7 Third Quarter 137.4 148.6 134.3 199.1 106.8 116.3 110.0 117.8 112.9 134.5 91.2 129.0 140.9 Fourth Quarter 142.0 150.9 134.3 201.1 111.4 116.3 111.0 117.8 109.7 134.7 94.1 130.1 144.6 2007 First Quarter 150.0 156.6 146.1 203.1 117.0 122.7 112.9 117.7 110.3 135.6 99.7 125.9 150.8 Second Quarter 150.1 158.4 146.1 199.8 124.0 133.6 112.6 117.0 115.7 135.7 105.2 128.8 151.1 Third Quarter 148.3 159.3 146.1 217.1 124.2 133.5 123.7 110.6 118.1 156.2 107.3 130.4 153.6 Fourth Quarter 157.7 163.8 146.1 216.5 131.2 137.0 127.4 113.9 115.4 166.4 103.6 128.6 161.2 2008 First Quarter 167.2 169.9 195.1 252.7 143.5 154.7 122.2 126.1 103.4 166.5 96.5 129.9 172.5 Second Quarter 172.6 171.2 195.1 262.7 143.2 155.6 134.0 132.3 107.8 166.4 96.5 135.3 177.5 Third Quarter 173.1 178.0 203.5 283.5 136.2 163.4 146.7 136.1 112.1 187.4 102.2 141.3 182.2 Fourth Quarter 185.4 181.0 203.5 280.4 134.4 168.2 150.6 141.7 120.1 197.9 101.8 142.5 191.4 2009 First Quarter 198.3 200.2 206.6 267.8 142.7 171.8 168.6 152.3 121.7 219.0 109.0 147.3 202.0 Second Quarter 202.6 205.8 206.6 264.4 145.8 171.8 170.2 157.3 121.7 229.6 109.5 148.2 205.9 Third Quarter 210.3 216.1 206.6 284.2 156.3 174.9 170.7 171.4 126.7 230.1 112.6 147.3 214.1 Fourth Quarter 222.9 220.9 206.6 289.9 166.5 174.9 158.7 174.3 128.6 225.2 114.0 148.1 223.2 2003 114.2 120.0 100.0 123.1 87.9 114.6 74.3 71.9 96.2 104.8 180.2 150.3 112.7 2004 123.5 122.9 100.0 142.0 97.2 137.4 80.5 85.1 99.4 104.1 191.1 123.0 121.9 2005 125.7 120.0 113.6 162.3 108.7 115.7 110.0 113.6 110.4 109.8 115.0 121.1 126.5 2006 138.6 141.8 132.8 193.7 108.0 115.4 109.6 118.8 113.5 134.0 93.3 139.3 141.1 2007 151.5 159.5 146.1 209.1 124.1 131.7 119.1 114.8 148.5 114.9 104.0 128.4 154.2 2008 174.6 175.1 199.3 269.8 139.3 160.5 138.4 134.0 110.8 179.5 99.2 137.2 180.9 2009 208.5 210.8 206.6 276.6 152.8 173.3 167.1 163.8 124.7 225.9 111.3 147.7 211.3 Foo d Alcoholic Clothing Electricity, Furniture Health Transport Communication Recreation Education Hotel and Others OVERALL Year and Drinks and and Household and Services and Restaurants PRICE Beverages Cigarettes Footwear and Water Household Entertain. INDEX Utensils 2010* 98.8 97.5 97.3 99.2 101.3 96.7 92.6 100.0 101.2 99.8 99.0 97.9 98.6 2011 105.8 102.9 114.1 106.4 109.9 100.5 106.5 100.0 100.2 99.9 104.5 107.0 105.9 Source: National Bureau of Statistics * The reference period for the NCPI has been changed from September. 2010, following the internationally recommended Classification of individual Consumption by Purpose (COICOP) 29

COST OF LIVING INDEX OF GOODS AND SERVICES CONSUMED BY MIDDLE GRADE WAGE EARNERS IN DAR ES SALAAM (2001=100) Table No. 10 Months Year March June September December Average Change % 1988 4.6 5.1 5.1 5.9 5.2 33.3 1989 6.4 7.0 6.8 6.8 6.8 30.2 1990 7.8 8.2 8.6 9.4 8.5 25.8 1991 11.0 12.0 11.7 13.3 12.0 41.6 1992 13.4 14.0 14.7 15.5 14.4 20.1 1993 18.0 17.5 17.7 21.2 18.6 28.8 1994 22.3 25.1 24.3 27.9 24.9 34.1 First Quarter Second Third Fourth Quarter Quarter Quarter 1995 30.1 30.9 32.0 34.4 31.9 28.0 1996 37.7 38.2 36.1 36.2 37.1 16.2 1997 38.9 39.9 38.7 40.1 39.4 6.4 1998 42.6 41.3 40.0 41.4 41.4 4.9 1999 42.5 43.0 40.1 41.1 41.7 0.9 2000 41.3 43.0 41.7 45.0 42.7 2.5 2001 46.8 44.3 44.0 43.6 44.7 4.5 2002 46.1 46.0 46.3 46.5 46.2 3.5 2003 46.5 46.5 47.4 48.6 47.3 2.3 2004 50.2 50.7 51.4 52.4 51.2 8.2 2005 53.4 54.2 56.3 57.1 55.2 7.9 2006 58.7 60.4 60.5 61.6 60.3 9.2 2007 64.0 66.4 68.0 70.5 67.2 11.5 2008 74.3 76.5 78.4 80.7 77.5 15.3 2009 85.3 87.8 92.4 95.5 90.3 16.4 2010* 97.9 99.0 99.8 100.5 99.3 10.0 2011 104.1 106.1 107.7 110.4 107.1 7.9 Source: National Bureau of Statistics * The reference period for the NCPI has been changed from September 2010 following the internationally recommended Classification of Individual Consumption by Purpose (COICOP). 30

COST OF LIVING INDEX OF GOODS AND SERVICES CONSUMED BY MIDDLE GRADE WAGE EARNERS IN DAR ES SALAAM (2001=100) Table No. 11 Beverages Electricity Clothing Furniture Services Health Recreation OVERALL Year Food and Rent Kerosene and and and other Services and Transport Education Others PRICE Cigarettes and Water Footwear Household Household Entertain. INDEX Utensils Requirements 2004 First Quarter 113.5 120.1 111.9 126.0 105.3 103.5 111.0 104.5 105.5 102.7 103.3 116.5 112.5 Second Quarter 114.7 115.3 111.9 135.8 107.3 104.6 107.4 102.3 105.4 103.6 102.6 117.7 113.6 Third Quarter 116.9 103.3 111.9 147.1 106.5 104.2 109.7 101.3 105.1 107.7 102.8 123.2 115.1 Fourth Quarter 120.3 103.3 111.9 147.7 107.8 102.3 108.5 101.1 102.3 110.2 102.3 120.6 117.3 2005 First Quarter 123.3 104.1 111.9 152.3 104.3 107.8 103.4 105.5 109.4 113.1 105.6 120.6 119.7 Second Quarter 124.3 106.0 111.9 162.9 104.9 109.9 105.0 106.4 110.5 113.2 107.5 121.0 121.3 Third Quarter 130.5 109.1 126.7 165.7 105.4 112.1 107.2 107.9 119.2 115.7 109.1 122.7 126.0 Fourth Quarter 133.2 109.6 126.5 170.6 105.4 112.9 107.7 106.6 116.7 115.2 110.0 127.3 127.9 2006 First Quarter 134.5 114.0 129.9 178.7 109.1 126.9 108.4 110.9 118.7 127.6 115.3 123.8 131.5 Second Quarter 136.7 119.1 132.8 195.1 110.8 131.2 109.0 115.2 114.2 132.7 117.3 119.3 135.2 Third Quarter 134.3 126.8 134.3 204.8 110.2 135.3 110.5 118.0 113.4 137.1 116.7 108.5 135.6 Fourth Quarter 136.8 130.9 134.3 207.6 113.8 139.1 111.7 118.6 110.9 137.1 119.1 109.8 137.9 2007 First Quarter 142.5 133.3 146.1 215.7 118.8 144.2 113.6 117.3 114.4 140.0 143.4 106.4 143.2 Second Quarter 148.7 142.8 146.1 215.1 128.9 148.8 112.6 117.8 118.1 142.0 151.7 106.3 148.7 Third Quarter 149.4 144.2 146.1 227.2 134.0 148.6 120.2 114.7 119.3 157.4 157.8 106.1 152.3 Fourth Quarter 157.3 150.1 146.1 221.2 135.4 148.1 133.8 117.9 119.5 164.0 156.4 105.3 157.9 2008 First Quarter 166.4 160.2 195.1 259.4 122.7 163.5 130.5 125.9 124.2 161.4 168.4 103.9 166.5 Second Quarter 173.8 160.8 195.1 266.9 119.1 167.7 140.7 128.2 129.0 162.1 168.4 104.0 171.4 Third Quarter 174.0 165.5 197.9 286.6 120.3 172.9 157.8 132.2 129.5 176.7 182.7 106.9 175.7 Fourth Quarter 180.1 171.2 203.5 287.1 121.7 175.6 165.8 137.5 130.6 183.9 179.4 107.8 180.8 2009 First Quarter 194.7 183.2 206.6 275.9 125.7 178.4 168.5 155.5 132.1 192.1 183.1 109.4 191.1 Second Quarter 202.1 189.1 206.6 276.2 128.3 179.9 169.9 156.2 135.1 196.5 184.9 109.3 196.7 Third Quarter 214.8 195.8 227.8 295.3 134.3 179.6 172.9 170.3 131.5 195.1 203.3 114.4 206.9 Fourth Quarter 224.0 196.2 270.1 306.8 136.8 178.6 157.2 187.4 129.7 193.8 217.2 118.9 213.8 Foo d Alcoholic Clothing Electricity, Furniture Health Transport ommunicati Recreation Education Hotel and Others OVERALL Year and Drinks and and Household and Services and Restaurants PRICE Beverages Cigarettes Footwear and Water Household Entertain. INDEX Utensils 2010* First Quarter 98.0 97.4 98.3 95.4 98.3 100.0 99.3 99.6 97.2 100.0 98.7 100.5 97.9 Second Quarter 99.6 96.3 99.1 96.6 97.7 100.0 99.3 99.5 96.9 100.0 98.8 100.2 99.0 Third Quarter 100.0 97.9 99.7 99.0 98.9 100.0 99.6 100.0 100.1 100.0 99.7 100.3 99.8 Fourth Quarter 100.8 100.2 100.1 100.6 99.6 100.0 100.1 100.0 99.8 100.0 100.0 99.8 100.5 2011 First Quarter 105.4 101.1 102.7 105.5 103.3 102.5 102.2 100.0 100.6 99.6 99.0 102.3 104.1 Second Quarter 107.0 101.9 105.3 110.0 106.7 104.5 103.3 100.0 101.9 99.4 100.2 106.0 106.1 Third Quarter 108.9 103.7 105.4 112.3 107.5 104.7 103.5 100.1 102.2 99.8 100.9 108.4 107.7 Fourth Quarter 113.3 104.7 105.9 113.2 108.3 104.7 104.3 100.3 103.1 99.9 101.0 109.6 110.4 Source: National Bureau of Statistics * The reference period for the NCPI has been changed from Sept. 2010, following the internationally recommended Classification of individual Consumption by Purpose (COICOP) 31

COST OF LIVING INDEX OF GOODS AND SERVICES CONSUMED BY HIGH INCOME GROUP IN DAR ES SALAAM (2001=100) Table No. 12 Beverages Electricity Clothing Furniture Services Health Recreation OVERALL Year Food and Rent Kerosene and and and other Services and Transport Education Others PRICE Cigarettes and Water Footwear Household Household Entertain. INDEX Utensils Requirements 2004 March 111.3 112.0 118.0 127.6 112.4 104.2 111.3 101.6 107.2 107.2 107.5 103.4 110.7 June 114.2 112.0 118.0 134.6 110.2 109.9 108.7 106.2 107.1 111.4 107.3 105.4 113.5 September 114.6 112.0 118.0 149.2 108.4 113.7 106.9 111.6 107.1 114.7 107.7 104.4 115.4 December 117.7 112.0 118.0 149.6 109.6 115.3 109.2 112.9 112.3 118.7 108.3 101.0 118.0 2005 March 120.4 111.9 120.0 153.5 112.0 116.4 101.4 113.3 115.3 119.8 114.1 104.6 120.1 June 119.3 111.9 120.0 161.9 113.4 116.7 102.4 114.0 116.8 122.6 114.0 106.3 121.1 September 120.9 116.5 120.0 170.0 113.9 117.3 114.9 117.8 112.3 127.5 117.4 109.6 124.2 December 131.1 116.6 120.0 176.7 114.7 115.5 116.4 126.8 114.8 136.5 117.4 108.0 131.5 2006 March 141.1 118.2 120.0 182.7 120.2 119.4 112.8 122.8 106.1 135.2 114.3 112.3 135.4 June 144.1 124.0 123.3 188.8 119.8 122.6 113.8 122.4 105.3 136.2 115.1 108.3 137.6 September 141.5 137.2 125.0 200.5 123.9 125.7 115.8 122.7 108.0 140.0 115.4 93.5 139.0 December 145.2 142.3 125.0 204.7 127.7 127.0 121.9 122.5 107.0 147.0 119.2 93.0 143.4 2007 March 153.3 144.3 140.0 215.6 131.1 131.2 127.1 120.3 110.0 150.4 152.3 90.9 150.7 June 158.3 152.0 140.0 217.0 136.4 131.6 127.3 119.1 110.9 155.7 155.6 92.7 155.3 September 157.8 153.1 140.0 225.2 139.6 130.1 128.7 116.3 111.6 170.8 159.4 88.0 159.7 December 164.9 161.5 140.0 216.8 144.1 129.1 140.1 119.5 112.9 175.6 156.7 81.1 164.2 2008 March 177.3 172.0 160.0 253.9 135.2 130.2 142.4 125.8 124.5 178.7 185.1 79.3 174.6 June 184.2 171.4 173.3 260.0 135.3 133.8 146.7 128.2 129.5 181.5 185.1 86.1 179.1 September 191.6 182.0 180.0 270.7 128.8 140.5 155.8 131.3 131.8 217.1 188.9 91.1 192.6 December 198.3 192.3 186.7 301.4 130.9 149.4 164.2 135.8 135.4 214.2 190.9 91.8 198.0 2009 March 219.8 198.3 200.0 275.0 130.0 157.4 169.0 149.3 191.2 212.7 193.0 92.0 206.3 June 225.3 199.3 200.0 275.2 134.5 163.9 170.7 155.0 193.1 210.2 193.3 93.0 208.7 September 237.8 237.8 200.0 293.0 139.7 176.4 180.1 172.5 190.8 225.0 193.5 94.9 220.2 December 247.4 207.4 200.0 305.1 147.2 137.0 163.7 185.5 189.4 228.1 195.9 94.7 225.9 Foo d Alcoholic Clothing Electricity, Furniture Health Transport Communicatio Recreation Education Hotel and Others OVERALL Year and Drinks and and Household and Services and Restaurants PRICE Beverages Cigarettes Footwear and Water Household Entertain. INDEX Utensils 2010* March 95.6 95.5 93.9 95.2 96.50 100.0 98.8 99.4 94.4 100.0 99.4 96.1 96.3 September 99.4 100.2 93.3 97.1 97.12 100.0 99.4 99.7 97.1 100.0 99.9 98.7 98.6 December 99.2 100.4 98.1 101.6 100.25 100.0 100.4 100.0 99.7 100.0 100.7 100.4 100.0 March 100.7 100.7 101.2 100.9 99.16 100.0 101.4 100.0 100.9 100.0 100.1 100.8 100.7 2011 March 106.7 102.3 100.8 105.7 101.6 100.9 103.8 100.0 102.1 100.0 102.6 97.2 104.4 June 108.9 103.7 104.7 107.3 104.9 103.8 113.2 100.0 104.4 100.1 109.7 99.1 107.5 September 112.6 106.3 105.2 110.9 104.2 103.8 118.1 100.2 105.0 100.5 116.0 100.7 110.6 December 120.1 107.2 107.0 113.8 105.9 106.0 121.6 100.5 105.3 100.7 117.3 102.4 114.9 Source: National Bureau of Statistics * The reference period for the NCPI has been changed from Sept. 2010, following the internationally recommended Classification of individual Consumption by Purpose (COICOP) 32

COST OF LIVING INDEX FOR HIGH INCOME GROUP IN DAR ES SALAAM (2001=100) Table No. 13 Year Months Change Average March June Sept. December % 1982-0.8-0.9 0.8 27.5 1983-1.0-1.1 1.0 24.2 1984-1.1-1.4 1.2 18.4 1985-1.4-1.7 1.5 23.6 1986-1.9-2.5 2.1 41.2 1987-2.7-3.9 3.1 49.3 1988-4.1-5.2 4.5 41.8 1989-5.6-7.7 6.4 43.8 1990-8.1-9.5 8.5 32.2 1991-10.8-12.3 11.1 31.0 1992-13.6-15.5 14.0 26.0 1993-15.8-19.9 17.1 22.4 1994-21.7-26.0 22.9 34.1 1995 26.2 25.1 26.6 28.6 26.6 16.1 1996 31.8 30.9 31.1 30.9 31.2 17.1 1997 32.9 32.2 32.8 33.5 32.8 5.2 1998 32.9 33.5 33.5 33.8 33.4 1.9 1999 35.2 34.9 36.1 39.2 35.5 6.3 2000 36.7 36.7 38.4 39.2 37.8 6.2 2001 46.9 42.8 41.1 39.2 42.5 12.5 2002 44.0 43.9 43.9 43.9 43.9 6.6 2003 45.4 45.9 45.9 45.9 45.8 4.2 2004 47.1 48.3 49.1 50.2 48.6 6.2 2005 51.1 51.5 52.8 55.9 52.8 8.6 2006 57.5 58.5 59.1 60.9 59.0 11.8 2007 64.1 66.0 67.9 69.5 66.9 13.3 2008 74.2 76.1 81.9 84.2 79.1 18.3 2009 87.7 88.7 93.6 96.0 91.5 15.7 2010* 96.3 98.6 100.0 100.7 98.9 8.1 2011 104.4 107.5 110.6 114.9 109.4 10.6 Source: National Bureau of Statistics * The reference period for the NCPI has been changed from Sept. 2010 following the internationally recommended Classification of Individual Consumption by Purpose (COICOP). 33

COST OF LIVING INDEX OF GOODS AND SERVICES CONSUMED BY URBAN DWELLERS IN TANZANIA MAINLAND (2001=100) Table No. 14 Beverages Electricity Clothing Furniture Household Health Recreation OVERALL Year Food and Rent Kerosene and and Operations Services and Transport Education Others PRICE Cigarettes Water Footwear Household Household Entertainment INDEX Utensils Operations 2004 First Quarter 122.8 111.7 107.7 113.2 89.1 95.5 101.6 95.7 91.4 99.7 108.6 92.0 113.9 Second Quarter 122.8 112.6 108.8 114.1 92.9 94.2 98.6 97.2 85.3 98.4 105.3 93.3 114.0 Third Quarter 121.3 111.1 113.7 122.0 91.3 94.7 100.7 94.2 87.0 103.6 106.1 93.8 114.2 Fourth Quarter 127.4 110.6 113.8 127.7 89.2 95.2 100.1 92.0 91.8 106.5 101.5 93.4 118.1 2005 First Quarter 127.9 113.3 118.7 128.8 90.9 96.3 102.1 92.1 93.4 107.2 90.0 93.3 118.7 Second Quarter 129.5 114.5 122.1 132.9 91.5 96.3 102.4 93.4 92.4 108.2 89.7 93.8 120.2 Third Quarter 128.8 116.3 129.5 135.5 93.3 96.2 102.4 97.2 91.9 110.4 89.9 93.5 120.7 Fourth Quarter 131.5 120.0 131.5 140.3 95.6 98.1 102.7 105.2 98.2 114.8 94.5 95.1 123.9 2006 First Quarter 138.6 119.7 128.8 138.2 98.1 100.8 101.0 107.6 98.0 115.3 90.2 102.0 127.9 Second Quarter 142.4 121.4 131.5 145.5 98.2 102.9 102.7 106.2 97.5 119.1 91.5 101.0 131.3 Third Quarter 133.3 127.7 134.5 151.7 99.7 105.9 105.0 107.3 98.3 122.7 94.4 101.6 127.8 Fourth Quarter 139.7 131.1 134.5 147.9 101.2 107.6 108.9 110.3 100.8 123.8 96.9 101.3 131.7 2007 First Quarter 147.3 133.6 136.0 149.1 104.5 111.4 111.6 109.9 105.3 125.9 100.6 101.8 137.0 Second Quarter 148.2 137.6 136.6 154.7 105.3 112.3 114.0 110.6 106.9 127.8 101.4 103.1 138.7 Third Quarter 147.0 138.0 137.5 158.3 105.2 112.4 114.3 110.9 108.5 129.9 102.8 102.0 138.5 Fourth Quarter 150.2 143.0 138.3 157.0 105.6 113.8 113.8 112.3 108.9 130.9 104.1 102.2 140.8 2008 First Quarter 163.4 146.8 138.9 161.6 105.3 116.6 115.1 113.6 110.0 132.9 106.2 103.4 149.2 Second Quarter 165.1 148.5 139.5 172.0 106.4 118.1 117.1 114.7 111.4 136.5 107.8 103.9 151.7 Third Quarter 164.5 149.7 141.6 179.2 106.4 120.1 116.8 117.4 114.5 141.0 110.8 104.2 152.8 Fourth Quarter 175.0 152.1 141.6 172.5 108.6 122.1 119.1 120.3 117.6 139.6 112.7 105.2 158.4 2009 First Quarter 193.5 154.8 156.4 164.5 109.7 124.8 120.7 122.3 121.4 137.7 116.9 106.9 168.7 Second Quarter 194.0 158.2 156.5 158.7 112.5 126.1 122.7 125.9 121.4 135.3 122.4 108.6 168.9 Third Quarter 193.6 165.7 159.4 168.9 115.7 128.0 123.0 126.1 124.6 140.3 122.4 108.3 170.6 Fourth Quarter 203.8 170.9 159.6 181.7 115.6 127.1 126.0 126.1 127.6 140.3 122.7 106.3 178.2 Foo d Alcoholic Clothing Electricity, Furniture Health Transport Communication Recreation Education Hotel and Others OVERALL and Drinks and and Household and Services and Restaurants PRICE Year Beverages Cigarettes Footwear and Water Household Entertain. INDEX Utensils 2010* First Quarter 100.4 99.67378 95.9 92.4 96.46 99.7 101.0 98.8 95.7 102.6 100.7 97.1 98.9 Second Quarter 101.9 97.66527 96.3 97.2 97.72 100.0 100.8 99.4 96.8 102.7 100.7 97.8 100.2 Third Quarter 99.9 99.79716 98.8 98.9 99.29 100.1 100.4 99.7 98.6 100.8 101.2 100.0 99.8 Fourth Quarter 101.3 100.4945 100.9 98.9 100.29 99.7 100.5 99.7 98.2 100.1 99.9 99.9 100.6 2011 First Quarter 108.8 102.1 103.6 105.3 107.9 101.1 102.4 97.7 99.2 105.4 104.9 100.0 106.1 Second Quarter 112.9 103.6 105.5 112.7 111.4 101.6 107.6 97.4 99.8 105.8 107.1 101.1 109.9 Third Quarter 118.9 105.0 108.1 119.5 113.4 102.0 110.3 98.2 100.9 105.8 110.1 104.5 114.5 Fourth Quarter 127.3 106.0 111.8 122.1 115.4 103.2 112.2 98.2 101.1 105.8 113.1 107.7 119.7 Source: National Bureau of Statistics * The reference period for the NCPI has been changed from Sept. 2010, following the internationally recommended Classification of individual Consumption by Purpose (COICOP) 34

COST OF LIVING INDEX OF GOODS AND SERVICES CONSUMED BY URBAN DWELLERS IN TANZANIA MAINLAND (2001=100) Table No. 15 Period Year First Second Third Forth Average Change Quarter Quarter Quarter Quarter % 1982 0.8 0.9 1.0 1.1 0.9 28.9 1983 1.1 1.2 1.2 1.3 1.2 27.1 1984 1.4 1.5 1.7 1.9 1.6 36.1 1985 2.0 2.1 2.1 2.4 2.2 33.3 1986 2.6 2.6 2.9 3.2 2.9 32.4 1987 3.5 3.5 3.7 4.2 3.7 29.9 1988 4.6 4.6 5.0 5.4 4.9 31.2 1989 5.8 6.2 6.5 6.9 6.4 30.4 1990 8.0 8.2 8.8 9.5 8.6 35.9 1991 10.4 10.9 11.3 12.0 11.1 28.8 1992 13.0 13.1 13.7 14.5 13.6 21.9 1993 15.7 16.6 16.7 18.3 16.8 24.0 1994 20.8 22.4 22.8 25.0 22.8 35.3 1995 28.0 28.4 29.0 30.5 29.0 27.4 1996 35.1 35.3 34.3 35.6 35.1 21.0 1997 40.4 41.2 40.2 41.1 40.7 16.1 1998 46.3 46.4 45.1 46.0 45.9 12.9 1999 50.4 50.2 48.5 49.2 49.6 7.8 2000 53.6 53.2 51.3 52.0 52.5 6.0 2001 56.4 56.0 53.9 54.6 55.2 5.1 2002 57.1 57.5 57.3 58.5 57.6 4.3 2003 59.9 60.6 60.2 61.8 60.6 5.3 2004 62.9 62.9 63.0 65.2 63.5 4.7 2005 65.5 66.4 66.6 68.4 66.7 5.0 2006 70.6 72.4 70.5 72.7 71.5 7.3 2007 75.6 76.5 76.4 77.7 76.6 7.0 2008 82.3 83.7 84.3 87.4 84.4 10.3 2009 93.1 93.2 94.2 98.3 94.7 12.1 2010* 98.9 100.2 99.8 100.6 99.9 5.5 2011 106.1 109.9 114.5 119.7 112.5 12.7 Source: National Bureau of Statistics * The reference period for the NCPI has been changed from Sept. 2010 following the internationally recommended Classification of Individual Consumption by Purpose (COICOP). 35

36

DIFFERENT INDICES OF GOODS AND SERVICES CONSUMED BY URBAN RESIDENTS IN TANZANIA MAINLAND (2001=100) Table No. 16 Index Index (%) Urban Urban Dwellers Dwellers Income Income Year Tanzania Tanzania Mainland Mainland Minimum Middle High Minimum Middle High 1982 1.1 1.0 0.8 0.9 21.8 25.9 25.9 28.9 1983 1.4 1.2 1.0 1.2 23.6 25.1 24.2 27.1 1984 1.6 1.5 1.2 1.6 17.5 25.2 18.4 36.1 1985 2.3 2.2 1.5 2.2 45.1 44.2 23.6 33.3 1986 3.3 3.0 2.1 2.9 42.2 37.3 41.2 32.4 1987 4.2 3.9 3.1 3.7 26.6 30.9 49.3 29.9 1988 5.4 5.2 4.5 4.9 29.5 33.2 41.8 31.2 1989 7.0 6.8 6.4 6.4 30.7 30.1 43.8 30.4 1990 9.3 8.5 8.5 8.6 31.8 25.8 32.2 35.9 1991 12.6 12.0 11.1 11.1 36.0 41.1 31.0 28.8 1992 13.5 14.4 14.0 13.6 7.0 20.2 26.0 21.9 1993 16.6 18.6 17.1 16.8 22.9 29.0 22.4 24.0 1994 24.9 24.9 22.9 22.8 50.5 34.1 34.1 35.3 1995 27.1 31.9 26.6 29.0 8.5 27.9 16.1 27.4 1996 32.4 37.1 31.2 35.1 19.9 16.3 17.1 21.0 1997 34.6 39.4 32.8 40.7 6.8 6.3 5.2 16.1 1998 37.0 41.4 33.4 45.9 6.8 5.0 1.9 12.9 1999 37.3 41.7 35.5 49.6 0.9 0.8 6.3 7.8 2000 38.0 42.7 37.8 52.5 1.7 2.5 6.2 6.0 2001 41.2 44.7 42.5 55.2 8.5 4.5 12.5 5.1 2002 42.8 46.2 43.9 57.6 3.8 3.5 3.3 4.3 2003 45.2 47.3 45.8 60.6 5.8 2.3 4.3 5.3 2004 48.1 51.2 48.6 63.5 6.4 8.2 6.2 4.7 2005 52.1 55.2 52.8 66.7 8.3 7.9 8.6 5.0 2006 58.1 60.3 59.0 71.5 11.5 9.2 11.8 7.3 2007 63.5 67.2 66.9 76.6 9.3 11.5 13.3 7.0 2008 74.5 77.5 79.1 84.4 17.3 15.3 18.3 10.3 2009 87.0 90.3 91.5 94.7 16.8 16.4 15.7 12.1 2010* 98.6 99.3 98.9 99.9 13.2 10.0 8.1 5.5 2011 105.9 107.1 109.4 112.5 7.4 7.9 10.6 12.7 Source: National Bureau of Statistics * The reference period for the NCPI has been changed from Sept. 2010 following the internationally recommended Classification of Individual Consumption by Purpose (COICOP). 37

CHAPTER 2 THE STATE OF THE WORLD ECONOMY AND INTERNATIONAL ECONOMIC CO-OPERATION THE STATE OF THE WORLD ECONOMY World Economic Growth 31. In 2011, the prospects for world economic recovery that set in after the aftermath of global financial crisis started to fade. During the period, the global economic growth rate slowed down to 3.9 percent compared to a growth of 5.3 percent in 2010. The decline in the global economic growth was due to slow down in the economic growth in the United States of America and European countries as well as debt crisis in some of European countries. Further, the earthquake that caused Tsunami in the Eastern Japan, escalating political unrest in Northern Africa and Middle East, and transitory increase in the world oil prices in the second quarter of 2011 added more challenges to the growth of the world economy. 32. The pace of economic growth for Developed Countries slowed down to 1.6 percent in 2011 compared with a growth rate of 3.2 percent in 2010. For the Developing Countries, the pace of growth decreased to 6.2 percent in 2011 from the economic growth rate of 7.5 percent in 2010. The slow down in the growth of these countries was due to fiscal consolidation and monetary tightening in the environment of weak economic growth potentials. Similarly, the pace of economic growth for Developing Asian Countries notably China and India decreased to 7.8 percent in 2011 from a growth of 9.7 percent in 2010. To some extent, the decline was a result of disruption of supply chains and unreliable markets of goods from Developed Countries. Table 2.1: Global Output 2004 2011 2004 2005 2006 2007 2008 2009 2010 2011 Growth in Percentage Global Output 5.1 4.6 5.2 5.4 2.8-0.6 5.3 3.9 Developed Countries 3.1 2.6 3.0 2.8 0.0-3.6 3.2 1.6 Developing Countries 7.5 7.3 8.2 8.7 6.0 2.8 7.5 6.2 Developing Asian Countries 8.5 9.5 10.3 11.4 7.8 7.1 9.7 7.8 Sub-Saharan Africa 7.1 6.2 6.4 7.1 5.6 2.8 5.3 5.1 Source: - International Monetary Fund (IMF), April 2012 38

Trends in World Trade 33. In 2011, the growth of world trade dropped to 5.0 percent from a growth of 13.8 percent in 2010. The decrease in the growth of the world trade was caused by a number of factors including political unrest in some Arab countries such as Libya and Egypt which resulted to decline of exports from Africa. Further, the occurence of catastrophic Tsunami in Japan disrupted supply chain of trade in the Developing Countries such as China that ultimately led to low production of goods designated for export. 34. The value of world merchandise exports was US dollar 18.0 trillion in 2011 compared to US Dollar 15.1 trillion in 2010, equivalent to an increase of 19.0 percent. The increase in the value of merchandise exports was driven by increase in prices of those commodities in the world market. In addition, the value of merchandise exports in African countries increased by 17.0 percent in 2011 compared with a growth of 30.0 percent in 2010. Moreover, value of merchandise imports in the African countries increased by 18.0 percent in 2011 compared to a growth of 15.0 percent in 2010. On the basis of such trade trend, the African countries trade balance had a surplus of US Dollar 42.0 billion in 2011 compared with a surplus of US Dollar 37.0 billion in 2010, equivalent to an increase of 13.5 percent. 39

Table 2.2: World Merchandise Trade (Billion USD and Percentage) Exports Imports Value Annual percentage change Value Annual percentage change 2011 2005-11 2009 2010 2011 2011 2005-11 2009 2010 2011 World 17,779 10.0-23.0 22.0 20.0 18,000 9.0-23.0 21.0 19.0 North America 2,283 8.0-21.0 23.0 16.0 3,090 5.0-25.0 23.0 15.0 United States 1,481 9.0-18.0 21.0 16.0 2,265 5.0-26.0 23.0 15.0 Canada 452 4.0-31.0 23.0 17.0 462 6.0-21.0 22.0 15.0 Mexico 350 9.0-21.0 30.0 17.0 361 8.0-24.0 28.0 16.0 South and Central America 749 13.0-23.0 26.0 27.0 727 16.0-25.0 30.0 24.0 Brazil 256 14.0-23.0 32.0 27.0 237 20.0-27.0 43.0 24.0 Other South and Central America 493 12.0-24.0 22.0 27.0 490 14.0-25.0 24.0 25.0 Europe 6,601 7.0-22.0 12.0 17.0 6,854 7.0-25.0 13.0 17.0 European Union 6,029 7.0-22.0 12.0 17.0 6,241 7.0-25.0 13.0 16.0 Germany 1,474 7.0-23.0 12.0 17.0 1,254 8.0-22.0 14.0 19.0 France 597 4.0-21.0 8.0 14.0 715 6.0-22.0 9.0 17.0 Netherlands 660 8.0-22.0 15.0 15.0 597 9.0-24.0 17.0 16.0 United Kingdom 473 4.0-23.0 15.0 17.0 636 4.0-24.0 16.0 13.0 Italy 523 6.0-25.0 10.0 17.0 557 6.0-26.0 17.0 14.0 Commonwealth of Independent States (CIS) 788 15.0-36.0 31.0 34.0 540 17.0-33.0 24.0 30.0 Russian Federation 522 14.0-36.0 32.0 30.0 323 17.0-34.0 30.0 30.0 Africa 597 11.0-30.0 29.0 17.0 555 14.0-15.0 15.0 18.0 South Africa 97 11.0-24.0 31.0 20.0 122 12.0-27.0 27.0 29.0 Africa less South Africa 500 12.0-31.0 29.0 17.0 433 14.0-12.0 12.0 15.0 Oil exporters 331 11.0-38.0 34.0 15.0 160 15.0-9.0 8.0 11.0 Non oil exporters 169 13.0-14.0 21.0 20.0 274 14.0-14.0 15.0 18.0 Middle East 1,228 15.0-31.0 27.0 37.0 665 12.0-15.0 13.0 16.0 Asia 5,534 12.0-18.0 31.0 18.0 5,568 13.0-20.0 33.0 23.0 China 1,899 16.0-16.0 31.0 20.0 1,743 18.0-11.0 39.0 25.0 Japan 823 6.0-26.0 33.0 7.0 854 9.0-28.0 26.0 23.0 India 297 20.0-15.0 33.0 35.0 451 21.0-20.0 36.0 29.0 Newly industrialized economies 1,290 10.0-17.0 30.0 16.0 1,302 10.0-24.0 32.0 18.0 Memorandum Items Least Developed Countries (LDCs) 203 16.0-25.0 28.0 25.0 202 15.0-5.0 11.0 19.0 Source: - World Trade Organisation (WTO) Report April 2012 The State of African Economy 35. In 2011, the pace of African countries economic growth decreased mainly due to political unrest in North Africa and continued slow-down of economic activities in Developed Countries. The strewed social and political turmoil in the North Africa discouraged investors hence decreased foreign capital and private investment. Similarly, production and export of oil which is the mainstay of the economy in North African countries were severely disrupted and also tourism business slumped. For the first time in five years, the pace of growth for the oil export countries in African continent s lagged behind the oil importing countries. The economic growth in the oil-exporting countries decelerated from 5.1 percent in 2010 to 1.5 percent in 2011, despite large windfall oil export gains from rising oil prices. 36. In 2011, the pace of economic growth for Sub-Saharan Africa slowed down to 5.1 percent compared with a growth of 5.3 percent in 2010. The slowness in growth was attributed to low pace of economic growth for oil exporting countries which grew at 6.3 percent in 2011 from a growth of 6.5 percent in 2010. 40

37. The economic growth for Middle-income countries in Sub-Saharan Africa declined slightly to 3.0 percent in 2011 from a growth of 3.1 percent in 2010. On the contrary, the economic growth for Low-income countries in Sub- Saharan Africa increased from 5.3 percent in 2010 to 5.8 percent in 2011. In general, the economic prospects for Sub-Saharan Africa are full of signs of returning to its trajectory growth path after suffering the consequences of global financial crisis in 2009. 38. In 2011, the inflationary pressure for consumer goods and services in Sub- Saharan Africa increased to an average of 8.2 percent compared with 7.4 percent in 2010. This inflationary pressure was also manifested in the Middleand Low-income countries of Sub-Saharan Africa. The increase in the average consumer prices was mainly driven by the rising food and oil prices in the world market. However, the oil exporting countries revealed different pattern of inflationary pressure in which inflation subdued to 10.2 percent in 2011 compared to 12.4 percent in 2010. Table 2.3: Selected Sub-Saharan African Economies: Real GDP, Consumer Prices and Current Account Balance (2009 2011) Real GDP Consumer Prices Current Account Balance Annual growth Annual growth Percentage of GDP 2009 2010 2011 2009 2010 2011 2009 2010 2011 Sub-Saharan Africa 2.8 5.3 5.1 10.6 7.4 8.2-3.1-2.4-1.8 Oil Exporters 4.8 6.5 6.2 11.0 12.4 10.2 5.3 2.6 5.6 Nigeria 7.0 8.0 7.2 12.5 13.7 10.8 7.9 1.3 6.2 Angola 2.4 3.4 3.4 13.7 14.5 13.5-8.9 10.4 8.1 Equatorial Guinea 5.7-0.8 7.1 7.2 7.5 7.3-17.1-24.1-9.7 Gabon -1.4 6.6 5.8 1.9 1.4 1.3 6.3 9.1 12.0 Republic of Congo 7.5 8.8 4.5 4.3 5.0 1.9-7.4 5.1 6.2 Chad -1.2 13.0 1.6 10.1-2.1 1.9-4.0-3.5-17.7 Middle-Income -1.7 3.1 3.0 7.1 4.4 5.4-4.1-3.1-3.8 South Africa -1.5 2.9 3.1 7.1 4.3 5.0-4.0-2.8-3.3 Botswana -4.9 7.2 4.6 8.1 6.9 8.5-5.8-5.2-6.8 Ghana 4.0 7.7 13.6 19.3 10.7 8.7-3.2-7.3-10.0 Cameroon 2.0 2.9 4.1 3.0 1.3 2.9-3.7-2.8-3.5 Cote d'ivoire 3.7 2.4-4.7 1.0 1.4 4.9 7.0 1.1 6.7 Senegal 2.1 4.1 2.6-1.7 1.2 3.4-6.7-6.1-8.3 Low-Income 4.7 5.3 5.8 13.5 6.2 10.6-6.8-7.0-9.7 Ethiopia 10.0 8.0 7.5 36.4 2.8 18.1-5.0-4.4-0.2 Kenya 2.6 5.6 5.0 10.6 4.1 14.0-5.7-6.5-11.8 Tanzania 6.7 6.5 6.7 11.8 10.5 7.0-10.7-9.3-9.7 Uganda 7.2 5.9 6.7 14.2 9.4 6.5-8.7-9.6-11.1 Democratic Republic of 2.8 7.0 6.9 46.2 23.5 15.5-10.5-6.9-8.7 Mozambique 6.3 6.8 7.1 3.3 12.7 10.4-12.2-11.7-13.0 Source:- International Monetary Fund (IMF) April 2012. 41

INTERNATIONAL CO-OPERATION East African Community (EAC) 39. The East African Community Heads of States met in April 2011 and ordered a study to be conducted on how to establish Single Customs Territory. The implementation of that directive started in October 2011 and final report was expected to be submitted in April 2012. On the other hand, in their endevour of reducing non-tariff trade barriers in the inter-regional trade, the EAC member states put in place the legal framework for establishing One- Stop-Border Posts (OSBPs). Further, the consultant who was commissioned to carry out analytical study on how to harmonize vehicles weight in the region submitted a draft report in February 2011. Currently, EAC member states continue to review critically the submitted report. 40. In the implementation of the protocol for establishing the East African Community Common Market, the member states are not allowed to impose trade barriers in the form of tariffs and non-tariffs. Following food and sugar shortage experienced in 2011 amongst the EAC member states, Tanzania imposed restrictions on exporting food and sugar mainly to control illegal movement of goods beyond the borders. However, the move was translated by other member states as Non Trade Barriers (NTB). As a result of, the Council of Sectoral Ministers for agriculture and food safety met in August and November 2011 in Arusha to discuss the food situation in the region and also the removal of trade barriers on food and seeds. In those meetings, the member states agreed that each country had to ascertain the situation of food and submit a report to EAC Secretariat. Further, the Secretariat was directed to prepare a proposal on how to mobilize funds from the Development Partners to implement EAC food security road map. 41. The 13 th Summit of East African Community Heads of States was held in November 2011 at Bujumbura whereby President Pierre Nkurunziza of Burundi handed over the Chairmanship of EAC to President Mwai Kibaki of Kenya. The Summit considered and adopted the report of the team of experts on concerns, fears, and challenges on the political federation and directed the Secretariat to prepare a road map of establishing and strengthening institutions as identified by the team of experts. Among the institutions which were proposed in the recommendations include EAC Customs Authority, EAC Common Market Authority, Commission for EAC Economic Union Authority, EAC Monetary Union Authority, EAC Unified Federal Treasury, EAC Court of Justice and East African Legislative Authority. 42. In intention of having reliable infrastructures which would facilitate the transportation of cargoes and passengers in the East African Community 42

region, a number of projects continued to be implemented. In Tanzania the projects that were carried out in 2011 include construction of Arusha Namanga Athi River road with a distance of 104.4 kilometres of tarmac and 39 bridges. The feasibility study and designe were done for the construction of Malindi Lunga Lunga and Tanga Bagamoyo road with a total distance of 400 kilometres out of which 240 kilometres are in Tanzania. Another project was the construction of Tanga Horohoro road with a distance of 65 kilometres whose implementation has reached 67.5 percent by the end of 2011. African Union and Economic Commission for Africa 43. The social and political unrest that happened in the Northern African countries as well as slowdown in global economic growth, contributed to the slim employment opportunities in Africa. In addition, the Africa s economy grew at lower rate of 2.7 percent in 2011 compared to 4.6 percent in 2010, the growth that was not translated into job- creation opportunity and income inequality. Against the backdrop, the African Union and Economic Commission for Africa (ECA) at their 4 th Annual Joint Meeting that took place in Addis Ababa March 2011, discussed on how to govern Development in Africa with a focus on the Role of the State in Economic Transformation. The discussion confined into three main topics that included Greening the Economy the concept aimed at improving human well-being without undermining their resource-base for future generations; health financing and increasing employment opportunities; and leveraging opportunities for accelerated growth. 44. At the meeting, the African countries agreed to key priorities in the next decade for the continent s development. The priorities include: effective resource mobilization; meeting infrastructure challenges; building human capital; strengthening in Regional integration and Intra-Africa trade; and Public Private Partnership strengthened and good governance. During the course of discussion it was observed that market mechanism alone cannot be sufficient for economic transformation, the Government has a central role to play. Moreover, it is important for the States to have political will and capacity to articulate and implement expansionary and transformative policies. Lastly, African countries should put strong institutional regional and continental integration with appropriate mechanism to coordinate, implement and monitor integration policies. Southern Africa Development Community 45. In 2011, the Southern Africa Development Community (SADC) participated in a tripartite meeting to discuss on the issues of Free Trade Area 43

for the three regional integrations of East African Community (EAC), Southern Africa Development Community (SADC) and Common Market for Eastern and Southern Africa (COMESA) in Johannesburg. The issue discussed in the meeting was to merge the markets for 26 countries with approximately a total population of 600 million. The establishment of a tripartite Free Trade Area (FTA) will bolster intra-regional trade by creating a wider market, increasing investment flows, enhancing competitiveness and developing crossregional infrastructure. Infrastruture development would enhance connectivity and reduce costs of doing business as well as indusrial development to address the production constraints. 46. Similarly, SADC participated in the first meeting of the COMESA-EAC- SADC Tripartite Trade Negotiation Forum that took place in Nairobi, Kenya December 2011. The main purpose of the meeting was to formally constitute the Tripartite Trade Negotiation Forum for the three communities of COMESA, EAC and SADC. In addition, the meeting deliberated on administrative arrangements to facilitate the conduct of the negotiations on the Tripartite Free Trade Area. World Trade Organisation 47. After nearly two decades of trying to become a member of World Trade Organisation (WTO), ultimately Russia gained approval to join the WTO in 2011. Previously, Russia was amongst the top six countries with strong economy and a member of G-20 who was not in the group of 153 members of WTO. The Russian membership will stimulate world trade, especially export of commodity (gas and oil) in the European Union (EU) and importation from Euro area at a lower price. 48. In July 2011, The World Trade Organisation and its members; key international aid and development organizations, conducted the Third Global Review of Aid for Trade in Geneva. Aid for Trade aims at helping developing and least-developed countries to increase exports of goods and services, to integrate more effectively into the multilateral trading system and to benefit from liberalized trade and increased market access opportunities. In addition, the initiative aimed at assisting these countries in overcoming their production constraints, develop their economic infrastructure and increase their competitiveness. 44

CHAPTER 3 EXTERNAL SECTOR INTRODUCTION 49. In 2011, the trend in export of goods and services was satisfactory although it encountered challenges including low industrial production and declining world price and demand emanating from the euro zone debt crisis. The value of goods and services exported increased by 17.1 percent and merchandise exports increased by 17.9 percent in 2011. On the other hand, the value of goods and services imported in 2011 increased by 33.0 percent, largely driven by increase in oil imports. MERCHANDISE EXPORTS 50. In 2011, the value of merchandise exports increased to USD 5,098.8 million compared to USD 4,323.1 million in 2010, equivalent to an increase of 17.9. This was due to the increase in traditional and non-traditional goods. In addition, the value of merchandise export included unrecorded trade amounting to USD 665.1 million in 2011. The share of traditional goods to total exports in 2011 was 13.1 percent while non-traditional goods accounted for 73.8 percent and unrecorded trade was 13.0 percent. Traditional exports 51. In 2011, the value of traditional exports increased by 16.8 percent to USD 668.7 million from USD 572.3 million in 2010. This was due to the increase in the volume of goods exported particularly tobacco and coffee, as well as increase in the average price of coffee, cloves and cashewnuts in the world market. The average price of cloves in the world market increased to USD 13,087.3 per tonne from USD 3,449.6 per tonne in 2010. This huge increase was due to low production of cloves in Indonesia, which is among the major clove-producing countries in the world. The share of traditional goods to total merchandise exports was 13.1 percent compared to 13.2 percent in 2010. Coffee 52. In 2011, the value of coffee exports increased by 40.3 percent to USD 142.6 million from USD 101.6 million in 2010. This was due to the increase in the volume of coffee exports and rise in the average price of coffee in the world market. The average price of coffee was USD 3,654.9 per tonne in 2011 compared to USD 2,853.1 per tonne in 2010. Similarly, the volume of coffee exports increased from 35,600 tonnes in 2010 to 39,000 tonnes in 2011, equivalent to an increase of 9.5 percent. 45

Cotton 53. In 2011, the value of cotton exports continued to decrease to USD 61.6 million from USD 84.0 million in 2010, equivalent to a decrease of 26.7 percent. This was due to the decrease in the volume of cotton exports although the average price of cotton increased in the world market. The volume of cotton exports decreased from 67,600 tonnes in 2010 to 40,300 tonnes in 2011, equivalent to a decrease of 40.4 percent. Nevertheless, the average price of cotton in the world market increased to USD 1,529.0 per tonne in 2011 from USD 1,241.9 per tonne in 2010. Tea 54. The value of tea exports decreased to USD 47.2 million in 2011 from USD 49.8 million in 2010, equivalent to a decrease of 5.3 percent. The decrease was due to the decline in the average price of tea in the world market. The average price of tea in the world market decreased from USD 1,840.2 per tonne in 2010 to USD 1,739.7 per tonne in 2011. In 2011, the volume of tea exports remained at 27,100 tonnes as it was in 2010. Tobacco 55. In 2011, the value of tobacco exports increased to USD 281.2 million compared to USD 232.4 million in 2010, equivalent to an increase of 21 percent. This was due to the increase in the volume of tobacco exports from 53,600 tonnes in 2010 to 73,300 tonnes in 2011. Nonetheless, the average price of tobacco in the world market decreased to USD 3,839.4 per tonne in 2011 from USD 4,337.0 per tonne in 2010, equivalent to a decrease of 11.5 percent. Cashewnuts 56. In 2011, the value of cashewnuts exports increased to USD 107.0 million from USD 96.9 million in 2010, equivalent to an increase of 10.4 percent. The increase was driven by the rise in average price of cashewnuts in the world market although the volume of cashewnuts exports decreased. The average price of cashewnuts in the world market increased by 15.2 percent, from USD 963.2 per tonne in 2010 to USD 1,110.0 per tonne in 2011. However, the volume of cashewnuts exports decreased to 96,400 tonnes in 2011 from 100,600 tonnes in 2010, equivalent to a decrease of 4.2 percent. Cloves 57. The value of cloves exports increased to USD 29.0 million from USD 7.6 million in 2010, equivalent to an increase of 280.8 percent. This was due to the increase of average price of cloves in the world market and volume of 46

cloves exports. The average price of cloves in the world market increased by 279.4 percent from USD 3,449.6 per tonne in 2010 to USD 13,087.3 per tonne in 2011. This was due to low production of cloves in Indonesia, which is among the major clove-producing countries in the world, following the eruption of a disease that affected the crop. In addition, the volume of cloves exports increased by 0.4 percent from 2,206 tonnes in 2010 to 2,214 tonnes in 2011. Non-Traditional Exports 58. In 2011, the value of non-traditional exports increased to USD 3,765.1 million compared to USD 3,186.9 million in 2010, equivalent to an increase of 18.1 percent. The increase was attributed to continued increase in minerals exports, particularly gold, as well as increase in horticultural exports. The share of non-traditional exports to total merchandise exports was 86.9 percent compared to 86.8 percent in 2010 including unrecorded trade. Minerals 59. In 2011, the value of mineral exports increased to USD 2,284.1 million from USD 1,560.2 million in 2010, equivalent to an increase of 46.4 percent. Gold continued to dominate in the export trade, whereby in 2011 gold accounted for 97.4 percent of all minerals exports and 59.1 percent of all nontraditional exports. The value of gold exports increased from USD 1,516.6 million in 2010 to USD 2,224.1 million in 2011, equivalent to an increase of 46.7 percent. This was particulary driven by increase in the volume of gold exports and the average unit price of gold in the world market. The volume of gold exports increased from 35.6 tonnes in 2010 to 40.4 tonnes in 2011, equivalent to an increase of 13.5 percent. In addition, during the same period, the average price of gold in the world market increased by 28.0 percent to USD 1,568.0 per ounce. Manufactured Goods 60. The value of exports of manufactured goods decreased from USD 964.0 million in 2010 to USD 861.5 million in 2011, equivalent to a decrease of 10.6 percent. The decrease was caused by the power rationing that led to low production of manufactured goods particularly paper products, plastic products and cotton fibres. In addition, the share of manufactured goods was 22.9 percent of the total non-traditional exports in 2011 compared to 30.3 percent in 2010. 47

Fish and Fish Products 61. In 2011, the export value of fish and fish products decreased by 8.4 percent to USD 137.7 million from USD 150.0 million in 2010. This was due to the decrease in the volume of fish and fish products exported. Horticultural Products 62. In 2011, the value of exports of holticultural products was USD 36.4 million compared to UDS 30.8 million in 2010, equivalent to an increase of 18.3 percent. This was mainly attributed to the increase in the exports of floricultural products following improvement in holticultural investments in the recent years. Other goods exports 63. In 2011, the value of other goods exported (including oil seeds, leather, cereals, cocoa and wood products plant) USD 347.1 million compared to USD 349.1 million in 2010, equivalent to a decrease of 0.6 percent. In addition, the value of re-exports was USD 98.3 million in 2011 compared to USD 132.5 million in 2010, equivalent to a decrease of 25.8 percent. Likewise, the value of unrecorded goods was USD 664.9 million in 2011 compared to USD 563.9 million in 2010, equivalent to an increase of 17.9 percent. 48

Table No.3.1: VALUE, VOLUME AND PRICES OF GOODS EXPORTS (2007-2011) Goods exports 2007 2008 2009 2010r 2011p 2010-2011(Badi liko) Traditional goods Coffee Value ((US$ million)) 98.1 99.1 111.2 101.6 142.6 40.3% Volume ( 000 tons) 45.0 45.4 56.0 35.6 39.0 9.5% Price (US$ per ton) 2,177.6 2,185.7 1,984.6 2,853.1 3,654.9 28.1% Cotton Value ((US$ million)) 66.4 115.8 111.0 84.0 61.6-26.6 Volume ( 000 tons) 59.1 87.9 99.4 67.6 40.3-40.4 Price (US$ per ton) 1,123.8 1,317.6 1,116.7 1,241.9 1,529.0 23.1 Sisal Value ((US$ million)) 8.8 8.8 15.7 - - - Volume ( 000 tons) 9.5 9.5 13.8 - - - Price (US$ per ton) 928.4 928.4 1,137.7 - - - Tea Value ((US$ million)) 28.7 42.5 47.2 49.8 47.2-5.3 Volume ( 000 tons) 21.5 28.1 30.6 27.1 27.1 0.2 Price (US$ per ton) 1,334.8 1,511.2 1,538.7 1,840.2 1,739.7-5.5 Tobacco Value ((US$ million)) 87.8 176.4 127.4 232.4 281.2 21.0 Volume ( 000 tons) 37.9 53.6 33.8 53.6 73.3 36.7 Price (US$ per ton) 2,318.1 3,293.3 3,764.0 4,337.0 3,839.4-11.5 Cashewnuts Value ((US$ million)) 25.6 44.3 68.6 96.9 107.0 10.4 Volume ( 000 tons) 41.3 52.7 95.5 100.6 96.4-4.2 Price (US$ per ton) 621.1 839.6 718.2 963.2 1,110.0 15.2 Cloves Value ((US$ million)) 4.2 13.5 14.4 7.6 29.0 280.8 Volume ( 000 tons) 1.4 3.7 4.8 2.2 2.2 0.4 Price (US$ per ton) 2,968.3 3,605.5 2,977.9 3,449.6 13,087.3 279.4 Sub-Total (Traditional exports) 319.7 507.3 479.6 572.3 668.7 16.8 Non-Traditional exports Minerals 848.7 1,186.7 1,271.4 1,560.1 2,284.1 46.4 Gold 788.2 1,108.3 1,229.5 1,516.6 2,224.1 46.7 Diamond 26.0 20.3 15.5 10.1 10.9 7.4 Other minerals 34.4 58.1 26.4 33.5 49.2 46.9 Manufactured goods 309.8 741.8 506.5 964.0 861.5-10.6 Fish and fish products 163.6 184.7 155.0 150.4 137.7-8.4 Holticultural products 19.1 45.7 33.3 30.8 36.4 18.3 Re-exports 149.7 160.3 120.4 132.5 98.3-25.8 Other exports 213.7 285.5 289.6 349.1 347.1-0.6 Sub - Total 1,704.5 2,604.7 2,376.1 3,186.9 3,765.1 18.1 Unrecorded Trade 202.4 466.8 438.9 563.9 664.9 17.9 Grand Total 2,226.6 3,578.8 3,294.6 4,323.1 5,098.7 17.9 Source: Bank of Tanzania and Ministry of Finance - Data not available 49

Service Receipts 64. In 2011, receipts from services was USD 2,362.5 million compared to USD 2,045.7 million in 2010, equivalent to an increase of 15.5 percent. This was due to the increase in receipts from tourism and transportation which altogether accounted for more than 80 percent of all service receipts. Receipts from tourism increased by 16.1 percent to USD 1,456.9 million in 2011 from USD 1,254.5 million in 2010 resulting from increase in the number of tourists and Government efforts to promote Tanzania as a tourist destination. Likewise, receipts from transportation services increased by 33.2 percent to USD 507.0 million from USD 445.5 million in 2010. This was due to the increase in transportation of goods to and from neigbouring countries. MERCHANDISE IMPORTS 65. In 2011, the value of goods imported (f.o.b) was USD 9,827.5 million compared to USD 7,165.5 million in 2010, equivalent to an increase of 37.2 percent. This was mainly due to the increase in oil and machinery imports to address the power shortage that existed in 2011 as well as a rise in the average price of oil in the world market. Capital goods 66. In 2011, the import value of capital goods increased to USD 3,560.5 million from USD 2,715.2 million in 2010, equivalent to an increase of 31.1 percent. This was attributed to the increase of machinery imports due to the increase of investment activities in natural gas and petroleum sectors. Machinery imports increased by 49.1 percent to USD 1,794.3 million in 2011 compared to USD 1,203.4 million in 2010. Similarly, the value of import of transport equipment increased by 11.9 percent to USD 1,008.5 million in 2011 from USD 901.1 million in 2010. In addition, imports of construction materials increased by 24.1 percent to USD 757.7 million in 2011 compared to USD 610.6 million in 2010. Intermediate Goods 67. In 2011, import value of intermediate goods increased to USD 4,139.0 million from USD 2,741.2 million in 2010, equivalent to an increase of 51.0 percent. This was mainly due to increase of oil price in the world market as well as increase in the volume of oil imports for electricity generation. Oil import alone accounted for 32.9 percent of the total cost of goods imported. The value of oil imports was USD 3,228.7 million in 2011 compared to USD 2,024.2 million in 2010, equivalent to an increase of 59.5 percent. The value 50

of imports of fertilizer increased from USD 115 million in 2010 to USD 176.6 million in 2011, equivalent to an increase of 53.6 percent. This was due to the decrease in fertilizer production in the local industries. In addition, the value of industrial raw materials imported increased by 21.9 percent from USD 602 million in 2010 to USD 733.7 million in 2011. Consumer Goods 68. In 2011, imports of consumer goods increased to USD 2,128.0 million from USD 1,709.2 million in 2010, equivalent to an increase of 24.5 percent. This was due to increase in the import value of food and food stuffs and other consumer goods. Imports of food and food stuffs increased by 30.6 percent from USD 461.6 million in 2010 to USD 603.1 million in 2011 due to the increase in the importation of grain products especially wheat, as well as increase in the average price of grain products in the world market. The value of imports of wheat increased to USD 391.3 million in 2011 compared to USD 287.2 million in 2010, while its average price in the world market increased from USD 229.7 million per tonne in 2010 to USD 285.9 million per tonne in 2011. In addition, imports of other consumer goods increased by 22.3 percent to USD 1,522.7 million in 2011 compared to USD 1,245.3 in 2010. SERVICES PAYMENTS 69. In 2011, service payment was USD 2,165.3 million compared to USD 1,849.6 million in 2010, equivalent to an increase of 17.1 percent. This was due to the increase in the costs of cargo transportation services as well as increase in the volume of imported goods. Payment of transportation services increased from USD 722.8 to USD 973.3, equivalent to an increase of 34.7 percent. Similarly, payments for tourism services increased by 8.2 percent from USD 830.4 in 2010 to USD 898.6 in 2011. However, payment of other services decreased from USD 299.1 million in 2010 to USD 293.4 million in 2011, equivalent to a decrease of 1.9 percent. TRENDS IN SELECTED REGIONAL AND BILATERAL TRADE 70. In 2011, Tanzania continued to maintain trade relationship with many countries in the world, including countries from Europe, America, Asia and Africa continents. During the period under review, most of Tanzania goods were exported to South Africa which accounted for 16.3 percent of all goods exports followed by Switzerland 16.1 percent, China 12.9 percent, Japan 6.8 percent, Germany 4.4 percent, Kenya 4.1 percent and India 4.0 percent. Most exported goods included: minerals; floricultural products; coffee and tobacco. Moreover, Tanzania imported goods mostly from China, which accounted for 8.1 percent of all goods imported, followed by India at 8.0 percent, South 51

Africa 6.9 percent, United Arab Emirates 6.0 percent, Japan 5.1 percent, Switzerland 5.0 percent, Singapore 4.0 percent and Kenya 2.5 percent. Some of the imported goods included tyres, communications equipment such as mobile phones, motorcycles, cars, petroleum products and pharmaceticals. 71. In 2011, the value of goods exports to European countries increased to USD 1,382.0 million from USD 1,151.1 million in 2010, equivalent to an increase of 20.1 percent. This was a result of increase in exports to Switzerland by 19.3 percent. The value of goods exports to Switzerland increased to USD 818.4 million from USD 685.9 million in 2010. The value of goods imports from Europe increased from USD 1,669.8 million in 2010 to USD 1,721.5 million in 2011, equivalent to an increase of 3.1 percent. In addition, the balance of merchandise trade between Tanzania and European countries improved further to a deficit of USD 339.5 million in 2011 from a deficit of USD 518.7 million in 2010. 72. In 2011, the value of goods exports to East African Community (EAC) countries decreased by 21.7 percent to USD 352.4 million compared to USD 450.0 million in 2010. This was due to a decrease in exports to EAC countries except Rwanda. The exports to Rwanda increased by 19.6 percent from USD 55.0 million in 2010 to USD 65.8 million in 2011. Exports to Burundi decreased by 39.6 percent, Kenya by 28.9 percent and Uganda by 4.7 percent. Goods exported to Kenya accounted for 59.9 percent of all exports to EAC countries, Rwanda accounted for 18.7 percent, Uganda 12.7 percent and Burundi 8.7 percent. The value of goods imported from East African Countries decreased to USD 263.8 million in 2011 from USD 285.2 million in 2010, equivalent to a decrease of 7.5 percent. The balance of merchandise trade between Tanzania and EAC countries recorded a surplus of USD 88.6 million compared to a surplus of USD 164.8 million in 2010. 73. In 2011, the value of goods exports to Southern African Development Community (SADC) increased to USD 1,158.9 million from USD 625.1 million in 2010, equivalent to an increase of 85.4 percent. This was mainly attributed to increased exports to South Africa. The value of goods exported to South Africa increased by 99.4 percent and accounted for 71.7 percent of all exports to SADC countries in 2011. The value of goods imported from SADC countries decreased by 5.6 percent to USD 781.3 million in 2011 from USD 827.7 million in 2010. This was due to the decrease of imports from all SADC member countries. The balance on merchandise trade between Tanzania and other SADC member countries registered a surplus of USD 377.6 million in 2011 compared to a deficit of USD 202.6 million in 2010. 74. In 2011, the value of goods exports to all African countries increased to USD 1,579.2 million from USD 1,080.9 million in 2010, equivalent to an 52

increase of 46.1 percent. This was mainly attributed to the increase in exports to SADC countries particularly South Africa. The value of goods imported from African countries decreased by 1.3 percent from USD 1,112.9 million in 2010 to USD 1,098.1 million in 2011. This was due to the decrease in the value of imports from South Africa and Kenya. The balance on mechandise trade between Tanzania and all African countries recorded a suprlus of USD 481.1 million in 2011 compared to a deficit of USD 32.0 million in 2010. 75. In 2011, the value of goods exports to Asian countries including China, Japan, India, Hong Kong, Singapore and United Arab Emirates increased by 17.9 percent to USD 1,414.6 million from USD 1,200.2 million in 2010. This was attributed to the increase in exports to Japan and China. The value of goods imported from Asian countries slightly decreased from USD 4,083.4 million in 2010 to USD 4,037.3 million in 2011, equivalent to a decrease of 1.1 percent. The balance on merchandise trade between Tanzania and Asian countries was slightly improved and recorded a deficit of USD 2,622.7 million in 2011 compared to the deficit of USD 2,957.9 million in 2010. 76. In 2011, the value of goods exports to American continent increased to USD 59.9 million from USD 51.0 million in 2010, equivalent to an increase of 17.5 percent. This was due to the increase in exports to America and Canada. The value of goods imported from that Continent decreased by 7.3 percent to USD 240.2 million in 2011 from USD 259.0 million in 2010. In addition, the balance on merchandise trade between Tanzania and American countries also improved and recorded a deficit of USD 180.3 million in 2011 compared to a deficit of USD 208.0 million in 2010. Table 3.2: Balance on Trade between Tanzania and Regional Economic Grouping (USD million) Region/Year 2005 2006 2007 2008 2009 2010r 2011p European Continent 3.9 (77.8) (515.2) (567.0) (313.1) (518.7) (339.5) SADC (103.2) (284.8) (355.4) (510.2) (417.8) (202.6) 377.6 EAC (64.0) (56.7) 66.5 110.7 (46.7) 164.8 88.6 Asian Continent - - (1,582.0) (2,212.8) (2,352.2) (2,957.9) (2,622.7) American Continent - (174) (291.5) (313.7) (217.1) (208.0) (180.3) Source: Bank of Tanzania and Ministry of Finance r = revised p = provisional 53

Table 3.3: Tanzania Export by Country/Region of Destination (USD million) COUNTRY/REGION 2005 2006 2007 2008 2009 2010r 2011p 2010/11 (% change) European Union (EU) 359.7 334.1 346.7 461.9 440.0 464.0 553.5 19.3% Other European Countries 259.9 421.6 454.2 533.3 469.0 687.1 828.5 20.6% TOTAL - European continent 619.6 755.7 800.9 995.2 909.0 1151.1 1382.0 20.1% SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) South Africa 275.4 268.9 176.1 232.5 170.9 416.8 831.1 99.4% Zambia 8.7 18.5 22.4 36.6 44.3 53.5 47.1-12.0% Swaziland 0.6 1.9 0.2 0.6 20.8 0 12.5 - Zimbabwe 1.6 1.2 0.7 1.2 5.7 0 4.1 - Mozambique 6.5 10.6 19.1 31.4 20.3 17.7 61.9 249.7% Democtratic Republic of Congo 12.6 18.3 58.9 124 79.9 137.1 119.5-12.8% Other SADC countries 16.9 21.7 23.7 17.1 32.3 0 82.6 - TOTAL- SADC 322.3 341.1 301.1 443.4 374.2 625.1 1158.8 85.4% EAST AFRICAN COMMUNITY (EAC) Burundi 0 0 41.5 19.5 23.6 51.0 30.8-39.6% Kenya 76.3 97.2 101.1 235 177.4 297.3 211.2-29.0% Rwanda 0 0 11.2 20.6 15.1 55.0 65.8 19.6% Uganda 20.1 20.5 19.3 40.5 47.7 46.8 44.6-4.7% TOTAL EAC 96.4 117.7 173.1 315.6 263.8 450.1 352.4-21.7% Other African Countries 34.7 29.9 72.8 96.1 0.6 5.8 67.9 1070.7% TOTAL AFRIKA 453.4 488.7 547.0 855.1 638.6 1081.0 1579.1 46.1% AMERICAN CONTINENT America 16.5 20.7 34.2 55.1 39.5 46.5 47.5 2.2% Canada 39.2 6 2.3 3.8 6.1 4.6 5.0 8.7% Other American countries 3.7 1.1 6 5.4 0 0 7.4 - CONTINENT 59.4 27.8 42.5 64.3 45.6 51.1 59.9 17.2% ASIA China 0 0 141.3 223.5 363.9 634.2 659.2 3.9% India 63.2 63.8 77.3 171.8 183.8 218.5 202.7-7.2% Japan 68.7 82 57.1 136.9 164.7 209.7 346.8 65.4% United Arab Emirates 33.7 47.3 88.4 65.4 66.8 55.3 74.9 35.4% Hong Kong 9.6 7.6 14.1 13.4 85.6 12.6 11.1-11.9% Singapore 18.7 4.4 4.0 11.0 6.4 13.5 10.9-19.3% Other Asian Countries 133.8 123.1 65.1 52.4 59.1 56.4 109.1 93.4% TOTAL- ASIA 327.7 328.2 447.3 674.4 930.3 1200.2 1414.7 17.9% Other Countries 242.4 317.2 388.9 989.9 771.1 839.8 663.0-21.1% GRAND TOTAL 1,702.50 1,917.60 2,226.60 3,578.90 3,294.60 4,323.20 5,098.70 17.9% Source: Bank of Tanzania and Ministry of Finance r = revised p = provisional 54

Table 3.4: Tanzania Import by Country/Region o f Origin (Value in M illion USD) COUNTRY/REGION 2006 2007 2008 2009 2010r 2011p 2010/11 (% change) European Union ( EU) 744.4 1061.6 1280.8 1076.6 1111.4 1074.4-3.3 Other European Countries 74.7 181.7 153.8 145.5 558.4 647.1 15.9 TOTAL - European co ntinent 819.1 1243.3 1434.6 1222.1 1669.8 1721.5 3.1 AFRICA SOUTHERN AFRICAN DEVELOPM ENT (SADC) South Africa 569.6 585.8 791.0 672.8 745.5 676.5-9.3 Zimbabwe 1.3 1.8 27.6 0.6 1.1 1.0-9.1 Zambia 11.6 18.5 27.6 23.3 29.8 27.0-9.4 Mozambique 17.2 16.9 18.2 9.0 18.5 16.9-8.6 Democratic Republic of Congo 0.2 0.6 19.6 1.2 1.1 1.0-9.1 Swaziland 16.8 20.1 76.5 26.3 31.7 29.0-8.5 Other SADC Countries 9.2 12.4 19.2 - - 29.9 TOTAL SADC 625.9 656.1 979.7 733.2 827.7 781.3-5.6 EAST AFRICAN COM MUNITY Burundi 0.0 0.0 0.4 0.3 0.6 0.6 0.0 Kenya 169.1 100.1 197.9 298.3 265.9 246.1-7.4 Rwanda 0.0 0.0 0.1 0.0 1.4 1.2-14.3 Uganda 5.3 6.4 6.4 11.9 17.3 15.9-8.1 TOTAL EAC 174.4 106.5 204.8 310.5 285.2 263.8-7.5 Other African Countries 62.9 60.2 71.9 0.3 0.0 53.2 177233.3 AFRICA 863.2 822.8 1256.4 1044.0 1112.9 1098.3-1.3 AMERICAN CONTINENT AMERICAN CONTINENT 123.1 187.1 200.4 136.0 150.6 138.5-8.0 Canada 37.5 35.6 57.1 35.2 36.4 33.1-9.2 Other American countries 41.2 111.2 120.4 91.5 72.0 68.6-4.7 TOTAL-American cont inent 201.8 333.9 377.9 262.7 259.0 240.2-7.3 ASIA China 309.4 406.0 711.8 678.1 846.8 787.6-7.0 India 241.3 507.0 891.2 757.3 864.6 784.5-9.3 Japan 257.5 261.8 711.8 413.6 548.8 502.9-8.4 Hong Kong 0.0 11.8 18.1 30.7 23.3 21.1-9.4 Singapore 13.2 25.3 433.0 188.2 429.3 390.4-9.1 United Arab Emirates 500.6 773.6 859.7 618.8 649.3 590.9-9.0 Other Asian countries 677.7 741.5 386.0 438.3 796.0 959.9 20.6 TOTAL - ASIA 1975.3 2460.6 4024.0 3282.5 4083.4 4037.3-1.1 OTHER COUNTRIES 4.7 0.0-80.6 22.7 40.4 2730.2 6657.9 GRAND TOTAL 3864.1 4860.6 7012.3 5834.0 7165.5 9827.5 37.1 Source: Bank of Tanzania and Ministry of Finance p = provisional r = revised BALANCE OF PAYMENTS Balance of Merchandise Trade 77. In 2011, the balance of merchandise trade recorded a deficit of USD 4,728.8 million compared to a deficit of 2,842.4 million in 2010, equivalent to deficit increase of 66.4 percent. This was due to the increase in the pace of goods imports relative to exports, particularly imports of machinery and oil to address the challenges in the energy sector. 55

Balance on Services 78. In 2011, the balance on services registered a surplus of USD 197.2 million compared to a surplus of 193.4 million in 2010, equivalent to an increase of 2.0 percent. This was due to the increase in receipts from tourism and transportation services. Balance on trade and services 79. In 2011, the balance on trade and services registered a deficit of USD 4,531.6 million from a deficit of USD 2,649.0 million in 2010, equivalent to an increase of deficit by 71.1 percent. This was due to the increase in goods and service payments. Balance on Investments Receipts and Payments 80. In 2011, the balance on investment receipts which includes of compensation to employees, investment income and interest payments registered a deficit of USD 55.7 million from a deficit of USD 40.8 million in 2010, equivalent to an increase of deficit by 36.5 percent. This was due to the increase in compensation of employees from USD 44.0 million in 2010 to USD 82.9 million in 2011. Balance on Current Transfers 81. The balance on current transfer which includes money transfers, grants and debt relief recorded a surplus of USD 619.9 million in 2011 compared to a surplus of USD 826.0 million in 2010, equivalent to a decrease of 25.0 percent. This was due to decline in DPs support to the Government since most of them were facing economic and political unrest. In 2011, the Government received grants from Development Partners amounting to USD 609.7 million compared to USD 798.1 million received in 2010, equivalent to a decrease of 23.6 percent. Balance on Current Accounts 82. In 2011, the balance on current account which includes balance on merchandise trade, service, investment receipts and payments as well as current transfers, registered a deficit of USD 3,967.4 million compared to a deficit of USD 1,863.8 million in 2010, equivalent to deficit increase of 112.9 percent. This was mainly caused by increase in deficit on balance of trade and services exarbated by the increase in imports and service payments. Balance on Capital Transfers 83. In 2011, the balance on capital transfers, which includes investment grants and debt cancellation from international financial institutions and Development Partners increased by 39. 9 percent to a surplus of USD 750.5 million from the surplus of USD 536.5 million in 2010. This resulted from increase in investment grants to the Government. 56

Balance on Investment Payments 84. In 2011, the balance on investment payments that comprises Foreign Direct Investments (FDI) and foreign loans registered a surplus of USD 2,582.2 million compared to a surplus of USD 1,732.5 million in 2010, equivalent to an increase of 49.0 percent. This resulted from a decline in foreign resources owned by local commercial banks from USD 75.2 million in 2010 to USD 22.2 million in 2011. Overall Balance of Payments 85. In 2011, the overall balance of payments registered a deficit of USD 158.7 million compared to a surplus of USD 343.1 million in 2010. The deficit in 2011 was mainly due to an increase in the current account deficit. FOREIGN CURRENCY RESERVES 86. As of end - December 2011, foreign reserves was USD 3,761.2 million compared to USD 3,948.0 million recorded in the corresponding period in 2010, equivalent to a decrease of 4.7 percent. This amount of foreign reserves in 2011 was equivalent to 3.8 months of imports of goods and services compared to 5.3 months in 2010. EXCHANGE RATE 87. In 2011, the value of Tanzanian Shilling against USD depreciated by 10.3 percent to an annual average of Shilling 1,579.5 per one dollar compared to an average of Shilling 1,432.3 per one dollar in 2010.The value of the Tanzania shilling depreciated due to various reasons particularly: increase in imports of goods and services relative to exports; inflation differences between Tanzania and other trading partners; Market speculation and appreciation of USD against other international currencies. As of end of December 2011 the value of USD was 1,566.7 shillings compared to 1,453.5 shillings recorded at end of December 2010. 57

Table No. 17 VALUE OF TANZANIA'S FOREIGN TRADE Shs. million Type of Goods 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Exports 926892 1267322 1582111 1874265 2156732 2628866 3194929 3671935 4050561 7331020 Domestic Exports 853158 1178027 1437423 1726241 1967358 2413809 2992530 3568071 3921648 7175377 Re-exports 73734 89295 144688 148024 189374 215057 202399 103864 128913 155643 Imports 1615037 2277176 2758953 3659962 5534418 7296763 8839274 8446721 11086891 17217173 Total Value of Foreign Trade 2541929 3544498 4341064 5534227 7691150 9925629 12034203 12118656 15137452 24548193 Balance of Merchandise Trade -688145-1009854 -1176842-1785697 -3377686-4667897 -5644345-4774785 -7036330-9886153 Exchange Rate (Shs/US$) 966.7 1,038.40 1,089.4 1,122.7 1,251.9 1,232.8 1,196.3 1,320.3 1,409.3 1,557.4 Source: National Bureu of Statical, Bank of Tanzania and Tanzania Revenue Authority 58

Table No. 18 Commodity Quantity (Tonne) 2007 2008 2009 2010 2011 VOLUME AND VALUE OF DOMESTIC EXPORTS Value (Shs. milion) Change (%), 2010/11 2007 2008 2009 2010 2011 Change (%), 2010/11 Coffee 53685 46229 56079 35359 40456 14.4 143255 122162 147427 162310 225748 39.1 Cotton 40743 54089 100361 74859 43042-42.5 49807 95613 146752 133087 103855-22.0 Sisal 7101 13786 8198 - - - 7438 18453 28490 - - - Tea 30506 26654 19191 44254 27114-38.7 48258 49615 45552 65479 73509 12.3 Tobacco 40743 45284 33839 69095 74022 7.1 116893 208004 168057 327521 437941 33.7 Cashewnuts 14841 60468 99313 132675 116583-12.1 33816 82025 94413 173572 189592 9.2 Cloves 3200 3805 4853 2566 2306-10.1 10628 15991 19453 11265 48362 329.3 Diamonds (Carats) 149592 132477 158838 367849 4170000 1033.6 23381 20891 24988 14234 16976 19.3 Gold (Gms.) 67334000 32319880 34600000 35600000 40400000 13.5 672111 1115163 1420756 2137344 3463813 62.1 Source: National Bureau of Statistics and Tanzania Revenue Authority 59

VOLUME AND VALUE OF TRADITIONAL AND NON-TRADITIONAL EXPORTS Table No. 19 Quantity (Tonne) Value (mill.us$) Change (%) Change (%) Commodity 2005 2006 2007 2008 2009 2010r 2011p 2010/11 2005 2006 2007 2008 2009 2010r 2011p 2010/11 Traditional Commodities Coffee 46100 38822 53685 44248 56079 35359 40455 14.4 74.3 61.4 98.1 99.1 111.2 101.6 142.6 40.3 Cotton 112900 46467 40743 86995 100361 74859 43042-42.5 111.5 55.8 66.4 115.8 111.0 84.0 61.6-26.6 Sisal 9300 9984 7101 2659 8198 9041 - - 7.3 6.1 8.8 15.7 - - - - Tea 21800 24803 30506 25898 19191 44254 27113-38.7 25.6 31.0 28.7 42.5 47.2 49.8 47.2-5.3 Tobacco 31100 37525 40743 35557 33839 69095 74022 7.1 80.8 65.2 87.8 176.4 127.4 232.4 281.2 21.0 Cashewnuts 62000 59180 14841 55011 99313 132675 117041-11.8 46.6 39.4 25.6 44.3 68.6 96.9 107.0 10.4 Cloves 3000 3033 3200 3774 4853 2566 2306-10.1 8.5 8.2 4.2 13.5 14.4 7.6 29.0 280.8 Sub-Total 354.6 267.1 319.6 507.3 479.6 572.3 668.7 16.8 Non-Traditional Commodities Minerals 711.3 836.8 848.7 1186.7 1271.4 1560.1 2284.1 46.4 Manufactured Goods 156.1 195.8 309.8 741.8 506.5 964.0 861.5-10.6 Fish and Fish Products 147.5 145.9 163.6 184.7 155.0 150.4 137.7-8.4 Horticultural products 18.3 15.4 19.1 45.7 33.3 30.8 36.4 18.3 Re-exports 127.1 128.3 149.7 160.3 120.4 132.5 98.3-25.8 Other Exports 454.4 154.0 213.7 285.5 289.6 349.1 347.1-0.6 Sub-Total 1614.7 1476.2 1704.5 2604.7 2376.1 3186.9 3765.1 18.1 Unrecorded Goods 174.3 202.4 466.8 438.9 563.9 665.1 17.9 GRAND TOTAL 1969.3 1917.6 2226.5 3578.8 3294.7 4323.1 5098.9 17.9 Source: National Bureau of Statistics and Bank of Tanzania - Not Available r - Revised figures p - Provisional Figures 60

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EXPORT PRICES OF PRINCIPAL COMMODITIES Table No. 20 Shs/Tonne* Change(%) Commodity 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2010/11 Coffee 926,170.00 1,107,030.00 1,380,191.00 1,812,959.00 2,390,242.65 2,668,414.00 2,642,540.03 2,628,933.60 4,069,398.56 5,580,087.01 37.1 Cotton 811,982.00 1,051,900.00 1,147,061.00 1,126,467.00 1,221,942.45 1,222,475.00 1,767,694.20 1,462,235.92 1,775,007.57 2,412,875.80 35.9 Sisal 491,650.00 533,190.00 624,068.00 879,366.00 931,089.74 1,047,444.00 946,323.40 3,475,212.63 - - - Tea 1,166,030.00 1,233,010.00 1,495,671.00 1,322,780.00 1,680,522.52 1,581,921.00 1,861,434.85 2,373,682.87 2,501,896.79 2,711,108.65 8.4 Tobacco 1,993,530.00 2,101,200.00 2,109,220.00 2,938,727.00 3,440,586.28 2,869,021.00 4,593,309.31 4,966,396.20 2,586,995.98 5,916,361.08 128.7 Cashewnuts 596,730.00 618,290.00 890,338.00 874,903.00 1,058,854.34 2,278,459.00 1,356,503.95 950,656.39 1,284,307.59 1,626,240.53 26.6 Cloves 3,117,980.00 1,901,360.00 2,524,410.00 3,210,533.00 3,285,196.18 3,321,160.00 4,202,786.10 4,008,131.49 4,390,289.55 20,972,246.31 377.7 Diamonds (Carats) 114,719.00 29,421.00 128,582.00 129,576.00 138,878.00 156,300.00 157,692.03 15,731.87 38,695.04 4,070.90-89.5 Gold (Gms.) 7,409.00 8,679.00 11,316.00 24,223.00 21,778.00 9,982.00 34,503.93 41,062.31 60,037.76 85,737.95 42.8 Source: Custom Department, Tanzania Revenue Authority * Except for diamonds and gold, whose prices are quoted per carat and gram respectively 65

EXPORT PRICES O F PRINCIPAL COMM ODITIES Table No. 21 US$/Ton* Change(%) Commodity 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2010/11 Coffee 970.00 1,080.00 1,284.78 1,611.71 1,931.89 2,164.58 2,203.36 1,991.16 3,317.61 3,608.95 8.8 Cotton 840.00 1,020.00 1,062.66 987.60 987.80 991.65 1,321.42 1,107.50 1,306.35 1,431.16 9.6 Sisal 510.00 520.00 578.23 784.95 751.20 849.67 1,251.37 2,632.14 - - - Tea 1,220.00 1,200.00 1,386.07 1,174.31 1,358.71 1,283.23 1,575.27 1,797.84 1,125.32 1,740.86 54.7 Tobacco 2,090.00 2,050.00 2,078.91 2,598.07 2,779.48 2,327.31 3,041.22 3,761.57 3,363.49 3,798.87 12.9 Cashewnuts 620.00 600.00 830.61 751.61 855.02 1,848.25 730.09 720.03 730.36 914.21 25.2 Cloves 3,260.00 1,850.00 2,337.84 2,833.33 2,637.65 2,694.07 3,577.52 3,035.77 3,173.01 13,443.19 323.7 Diamonds (Carats) 119.98 28.65 119.20 115.40 110.90 126.79 133.37 1,191.54 3,028.09 2,394.69-20.9 Gold (Gms.) 7.70 8.45 10.47 2.30 17.40 8.10 1.78 6.22 42.58 55.01 29.2 Source: National Bureau of Statistics and Tanzania Revenue Authority * Except for diamonds and gold, whose prices are quoted per carat and gram respectively - Figures not available 66

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COMPOSITION OF IMPOR TS Table No. 23 Consumer Intermediate Capital Year Goods Goods Goods Shs. Million Total 1986 8014 13058 18899 39971 1987 13180 23819 41948 78947 1988 29841 55284 43950 129075 1989 34779 60176 96804 191759 1990* 18783 116277 96223 231283 1991 62000 69710 139668 271378 1992 101641 94233 196791 392665 1993 194604 107481 229657 531742 1994 247076 128544 290638 666258 1995 201347 294224 275207 770778 1996 182340 267600 252501 702441 1997 301018 203418 198670 703106 1998 441025 155225 311244 907495 1999 503868 197271 360225 1061363 2000 401612 222399 444427 1068438 2001 468173 386317 648361 1502851 2002 499346 408872 697209 1605426 2003 654630 705729 846251 2206610 2004 917953 1024705 1029389 2972046 2005 934526 1447183 1337876 3719585 2006 1068323 1977275 1799472 4845070 2007 1399488 2479491 2195837 6074816 2008 1689789 3191039 3508181 8389009 2009 1854493 2495763 3352506 7702762 2010 2447801 3926221 3888981 10263002 2011 3361176 6537551 5623810 15522536 Source: Bank of Tanzania * Commencing 1990, the value of imports is quoted at F.O.B. prices (previously quoted at C.I.F. prices) 68

BALANCE OF PAYMENTS Table No. 24 US $ milion 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Actual Actual Actual Actual Actual Actual Actual Actual Actual Likely Outturn GOODS BALANCE -531.7-717.4-1009.7-1321.8-1946.5-2634.1-3433.5-2539.5-2842.4-4728.8 Exports (fob) 979.6 1216.1 1473.1 1675.8 1917.6 2226.6 3578.8 3294.6 4323.1 5098.7 Imports (fob) 1511.3 1933.5 2482.8 2997.6 3864.1 4860.6 7012.3 5834.1 7165.5 9827.5 Service balance 287.6 222.1 158.9 61.8 278.8 462.1 349.9 145.6 193.4 197.2 Receipts 920.1 947.8 1133.6 1269.2 1528.1 1875.7 1998.8 1854.6 2045.7 2362.5 Payments 632.5 725.7 974.7 1207.3 1249.3 1413.7 1648.9 1709.1 1852.4 2165.3 Income -88.9-149.1-119.1-104.1-94.8-105.7-95.1-30.5-40.8-55.7 Receipts 67.9 87.1 81.8 80.9 80.3 107.3 122.7 161.1 160.1 184.2 Payments 156.8 236.2 200.9 185.0 175.1 213.0 217.8 191.6 200.8 239.9 Current transfers 431.3 556.9 586.7 496.4 588.7 651.5 609.5 696.9 826.0 619.9 Inflows 494.3 619.9 651.7 563.9 654.6 724.0 689.0 765.4 905.0 712.6 Government 427.7 553.3 582.0 478.5 559.7 626.9 588.5 658.4 798.1 609.7 Other Sectors 66.6 66.6 69.7 85.4 94.9 97.1 100.5 106.9 106.9 102.9 Outflows 63.0 63.0 65.0 67.5 65.9 72.5 79.6 68.4 79.0 92.7 CURRENT ACCOUNT 98.3-87.5-383.2-867.6-1173.8-1626.2-2569.3-1727.5-1863.8-3967.4 Capital Transfers 785.7 692.8 460.0 393.2 5183.5 911.7 537.0 446.6 536.5 750.5 Inflows 785.7 692.8 460.0 393.2 5183.5 911.7 537.0 446.6 536.5 750.5 Outflows 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Financial Account 255.4 61.2 275.6 807.6-4081.6 924.6 1661.9 1252.1 1732.5 2582.2 Direct Investment 387.6 308.2 330.6 494.1 403.0 581.5 400.0 414.5 433.9 854.2 Portfolio Investment 2.2 2.7 2.4 2.5 2.6 2.8 2.9 3.0 3.2 3.4 Other Investment -134.4-249.7-57.4 311.0-4487.3 340.4 1258.9 834.5 1295.4 1724.6 Errors and Omissions -806.8-277.4-146.3-555.4 532.6 194.5 518.4 395.0-62.1 476.0 OVERALL BALANCE 332.6 389.1 206.1-222.2 460.8 404.6 148.0 366.2 343.1-158.7 Financing -332.6-389.1-206.1 222.2-460.8-404.6-148.0-366.2-343.1 158.7 Source: Bank of Tanzania Starting 2006, exports includes unrecorded goods 69

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CHAPTER 4 GOVERNMENT FINANCE Introduction 88. The budget frame for 2011/12 considered key areas for implementation including: achieving the objectives of the Tanzania Development Vision 2025; priorities of the Five Year Development Plan (2011/12-2015/16); Phase II of the National Strategy for Growth and Reduction Poverty (MKUKUTA II); The Millennium Development Goals 2015; CCM election manifesto of 2010, the Joint Assistance Strategy for Tanzania (JAST); and the National Debt Strategy. 89. The basis and objectives of the Government budget for 2011/12 were aimed at: addressing the challenges of reducing cost of living to citizens; continued improvement of domestic revenue collection mechanism; improving investment climate to attract local and foreign investments and to develop the private sector; continued with implementation of the national identity cards project; establishment of postal codes and address system; implementation of Property and Business Formalization programme; ensuring that revenues from retention schemes are collected appropriately and remitted to the Consolidated Fund Services; allocating resources in areas that stimulate economic growth; and strengthening good governance and accountability. Other assumptions were to: implement specific plans and strategies that foster economic growth; strengthen balance of payment through processing goods before export; borrow prudently from concessional and non concessional sources; speeding up the implementation of Public Private Partnership Act in order to widen opportunities for executing development projects; and sustaining the achievements attained in the social sectors (Education, Water and Health) 90. Based on macroeconomic policy as well as the assumptions and policy objectives for 2011/12 budget, the Government estimated to collect revenue from different sources amounting to shilling 13,525.9 billion and spend the same amount for recurrent and development expenditures. The revenue sources were as follows: domestic revenue shilling 6,775.9 billion; revenue from Local Government own source shilling 350.5 billion; programme grants and loans shilling 869.4 billion; budget support grants and loans for development project and sector basket funds shilling 3,054.1 billion; domestic and foreign loans shilling 1,664.9 billion; and shilling 810.9 billion was estimated for rollover of matured treasury bills and bonds. On expenditure side, a total of shilling 8,600.3 billion was allocated for recurrent expenditure and shilling 4,925.6 billion for development expenditure. 71

Revenue Collection Trend Domestic Revenue 91. During the period July 2011 March 2012, total domestic revenue including LGAs own source amounted to shilling 5,157.6 billion, equivalent to 99 percent of the estimate of shilling 5,217.2 billion during the period under review. Out of this, tax revenue amounted to shilling 4,765.5 billion, equivalent to 106 percent of the estimate of collecting shilling 4,505.6 billion; non tax revenue was shilling 272.1 billion, being 57 percent of the estimate of collecting shilling 473.5 billion; and shilling 120 billion was revenue from Local Government own sources, equivalent to 50 percent of the target during the period under consideration. 92. Improved performance in revenue collection was attributed to enhanced administrative measures taken by Tanzania Revenue Authority (TRA). Such measures include: ensuring effective use of Electronic Fiscal Device (EFD), which started in July 2010; Strengthening of the block management system; Establishment of tax payer service and payment centres in strategic areas like Kariakoo, Kimara, Temeke; and Improving the valuation system and strengthening tax audit on tax payer s accounts. 93. Non tax revenue collection was unsatisfactory due to various reasons including failure by parastatals and public institutions to contribute to the Consolidated Fund Services as directed because the laws establishing those institutions have categorically stated the use of profits earned. With regard to retention collected by Government departments, there is no harmonized tax collection system which could improve revenue collection and control tax evasion and embezzlement. Likewise, underperformance of LGA collections was due to delay in the commencement of the business license, among other reasons. Grants and Loans 94. Grants and foreign concessional loans continued to be critical source of Government budget for 2011/12. During the period of July 2011- March 2012, Government received programme grants and loans amounting to shilling 759 billion, equivalent to 106 percent of the estimate of shilling 713.6 billion for the period. This was a result of increase in contribution from Norway and Canada which disabused more than the amount projected earlier. Despite these achievements, several challenges emerged under the General Budget Support (GBS) system including withdrawal by some Development Partners (DPs) in the GBS framework such as Switzerland and Netherland. The other challenge is late disbursement from some DPs contrary to the GBS agreement of disbursing the funds in the beginning of the fiscal year (front loading). In 72

addressing the challenges of late disbursement, the Government continued to dialogue with DPs and convince them to honour their commitments as per the JAST principles. 95. On the other hand, project grants and loans including basket funds amounted to shilling 1,269 billion, which is equivalent to 53 percent of budgeted amount of 2,327.2 billion. The shortfall was primarily caused by untimely disbursement of project loans and grants due to Euro zone debt crisis which weakened the ability of these countries to extend grants and loans. Domestic Loans 96. Given high demand for funds to finance development projects and the Government ability to service the loans, the Government has been borrowing from domestic sources to finance development projects and to pay for the rollover of matured Treasury bills and Bonds. During the period of July 2011 to March 2012, the Government borrowed shilling 883 billion. Out of that, shilling 433.7 billion was for the rollover of matured bonds and shilling 449.6 billion was used to finance development projects. Non concessional borrowing 97. In 2011/12, the Government envisaged to borrow USD 822 million, equivalent to shilling 1,271.6 billion as non concessional loan. During the period July 2011 - March 2012, the Government signed a loan agreement for USD 310 with Standard bank and another loan agreement for Euro 61 million with HSBC Bank. Up to March 2012, a total of USD 229 million had been disbursed from Standard bank and part of it was spent on payment of road construction arrears for financial year 2010/11 and Euro 61 million was used to finance Nyakato Mwanza power generation plant which has a capacity of 60 Megawatts under the Export Credit Agency supported loan. In addition, Government signed a mandate letter of USD 350 million from Credit Suisse Bank and the preparation of the loan agreement is in final stages for signing of which USD 200 million is expected to be disbursed before the end of 2011/12 financial year. Discussions with United Kingdom Barclays Bank are at advanced stages to secure the remaining balance from this source. EXPENDITURE 98. In 2011/12, the Government continued to implement expenditure policies based upon availability of domestic revenues, grants together with domestic and external loans. In addition, the Government aimed at improving management and control of public resources, including control in salary payments, development project expenditures, agricultural inputs subsidies, public procurement and continue to control accumulation of arrears. During the period of July 2011 to March 2012, expenditure was aligned with 73

availability of resources. During that period, actual expenditure amounted to shilling 7,084.6 billion, equivalent to 80 percent of the estimated shilling 8,895.8 billion. Out of that amount, shilling 4,703.3 billion was recurrent expenditure, equivalent to 66.4 percent of the actual total expenditure during the period and shilling 2,381.2 billion was for development expenditure. 99. Payment for salary and wages for Government employees during July 2011 March, 2012 amounted to shilling 2,026.2 billion, equivalent to 96 percent of the estimated shilling 2,012 during the period under review. Out of that amount, a total of shilling 663.9 billion was paid to central Government employees, shilling 60.98 billion was for Regional Secretariats and shilling 1,301.3 billion was for councils, municipalities, cities and districts. In addition, the Government paid shilling 453.7 billion as salaries to public institutions and parastatal workers during that period. 100. During the period of July 2011 to March 2012, expenditure on Other Charges for MDAs, Regions and LGAs amounted to shilling 1,366.3 billion, equivalent to 75 percent of the estimate of shilling 1,832.9 billion for the review period. Development expenditure amounted to shilling 2,381.2 billion, out of which shilling 1,118.4 billion was locally financed equivalent to 105 percent of the period estimate of shilling 1,060.7 billion. Foreign financed development expenditure was shilling 1,263.9 billion, equivalent to 53 percent compared to the estimate of shilling 2,372.9 billion. Public Debt Service 101. During the period July 2011 - March 2012, public debt service was shilling 759 billion, equivalent to 68.7 percent of the estimate of shilling 1,104.5 billion for the period. External debt service during the period was shilling 121.3 billion. Out of that, shilling 59.9 billion was for principal payment and shilling 61.5 billion was for interest payment. A big chunk of external debt service is interest payment since most of the loans contracted are new and long term in nature, thus principal payment is yet to mature. During the same period, domestic debt service amounted to 637.7 billion. Out of that, shilling 433.7 was for payment of matured government securities on rollover terms and shilling 203.9 billion was for interest payment. Expenditure on other debt service obligations (CFS others) was shilling 448.3 billion, equivalent to 73 percent of the estimate of shilling 610.3 billion. Sectoral Allocation of Government Budget 102. In 2011/12, the Government continued to allocate resources to various sectors in line with the budget priorities. In 2011/12, a total of shilling 2,781.4 billion was allocated for roads, railways, ports and ICT backbone infrastructure compared to shilling 1,505.1 billion spent in 2010/11, equivalent 74

to increase of 85 percent. In addition, resources allocated for energy and mineral sector was shilling 539.3 billion compared to shilling 327.2 billion in 2010/11, equivalent to an increase of 65 percent. 103. During the financial year 2011/12, agriculture and irrigation sector was allocated shilling 926.2 billion compared to shilling 903.8 billion in 2010/11, equivalent to an increase of 2.5 percent. In addition, education sector was allocated shilling 2,283 billion compared to shilling 2,045.4 billion in 2010/11, equivalent to an increase of 12 percent. Water sector was allocated shilling 621.6 billion compared to shilling 397.6 billion in 2010/11, equivalent to increase of 56 percent, whereas health sector was allocated shilling 1,209.1 billion compared to shilling 1,205.9 in 2010/11, equivalent to an increase of 0.3 percent. National Debt 104. During the period ending December 2011, the national debt stock which comprise of public and private debt amounted to shilling 18,819.4 billion, equivalent to an increase of 12.6 percent compared to shilling 16,708.2 billion recorded during the corresponding period in 2010. Out of that amount, a total of shilling 15,928.8 billion was public debt and shilling 2,890.6 billion was private debt. The increase in debt stock was mainly due to increase in new contracted loans to finance development projects; accumulation of interest arrears on external debt for Non Paris Club creditors which have not concluded their debt rescheduling agreement; and depreciation of Tanzania shilling against the US Dollar. Domestic Debt Stock 105. As at end-december 2011, public domestic debt stock stood at shilling 4,641 billion compared to shilling 4,385.4 billion recorded in December 2010, equivalent to an increase of 5.8 percent. This was due to increasing Government need for loans to finance infrastructure projects and issuance of Treasury bills to mop up excess liquidity in the economy. 106. The analysis of domestic debt by holder category indicated that commercial banks were leading creditors, holding significant proportional of the total domestic debt. As at end - December 2011, commercial banks were holding 48.5 percent of the total domestic debt compared to 48.8 percent in the corresponding period in 2010. This was attributed by expansion of the banking sector and low investment risk in Government securities relative to the private sector. The Bank of Tanzania ranked second holding 26.9 percent, social security funds holds 23.5 percent and individuals and other entities were holding 1.2 percent. 75

Chart.4.1: Domestic Debt by Holder Category as at December, 2011 External Debt Stock 107. As at December 2011, external debt stock stood at USD 8,959.6 million compared to USD 8,363 million in December 2010, equivalent to an increase of 7.1 percent. Out of that, USD 7,133 million was public debt and USD 1,826.6 million was private debt. In addition, public external debt stock increased by 9.2 percent compared to USD 6,529.6 million as at end December 2010. The increase in debt stock was mainly due to increase in new contracted loans to finance development projects and accumulation of interest arrears on external debt for Non Paris Club creditors which have not concluded their debt rescheduling agreement;. External Debt Stock by Creditor Category 108. The analysis of external debt stock by creditor category showed that, major creditor are multilateral international organisations. As at end - December 2011, multilateral international organisations accounted for 67 percent of total external debt stock compared to 72 percent in 2010, bilateral creditors accounted for 25 percent, same as it was in 2010 and non concessional loans accounted for 8 percent. Government has determined to continue borrowing from non concessional sources and ensure that the loans particularly from non concessional sources are used to finance development projects. 76

Chart No.4.2: External Debt Stock by Creditor Category December 2011 77

TRENDS IN GOVERNMENT FINANCE Table No. 25 Sh. milioni 2006/07 2007/08 2008/09 2009/10 2009/10 2010/11 2010/12 2011/12 2011/12 Actual to Likely Outturn Actual Actual Actual Actual Actual Actual Budgeted March June A. DOMESTIC REVENUE (incl. Revenues from LGAs) 2739022 3634581 4293075 4661540 6176172 5736266 7126448 5157554 7036821 A. DOMESTIC REVENUE 2739022 3634581 4293075 4661540 6003590 5577986 6775952 5037554 6836821 1. Tax Revenue 2529439 3359250 4043674 4427834 5638593 5293277 6214714 4765452 6294194 Import Duty and Excise Duty 765644 965498 1130860 1214626 1520194 1512135 1686789 1159933 1641299 Value Added Tax (VAT) 861050 1110951 1333789 1488452 1991653 1632863 2217480 1527166 2127154 Imports 431614 550289 641392 729040 999329 905611 1181936 796208 1124338 Domestic 429436 560661 692397 759412 992324 727252 1035544 730958 1002816 Income Tax 790877 1028902 1257861 1388778 1702338 1719790 1910582 1644209 2073193 Other Taxes 218581 382792 462544 499497 620912 601448 627862 550239 653299 Refunds Accounts -106713-128893 -141380-163519 -196504-172959 -228000-116095 -200752 2. Non-Tax Revenue 209583 275331 249401 233707 364997 284709 561238 272102 542627 3. Revenues from LGAs 172582 158280 350497 120000 200000 B. TOTAL EXPENDITURE 4474680 5208996 6811827 8173749 10769612 9439407 12639939 7084574 12979555 1. Recurrent Expenditure 3137469 3398024 4681459 5562443 6950561 6690370 7714330 4703330 8619469 2. Development Expenditure 1337211 1810972 2130368 2611306 3819051 2749037 4925609 2381243 4360086 Local Funds 503291 567421 906023 1004530 1366143 984555 1871472 1118370 1471472 Foreign Funds 833920 1243551 1224345 1606776 2452908 1764482 3054137 1262873 2888613 C. DEFICIT/SURPLUS (A-B) -1735658-1574415 -2518752-3512209 -4593440-3703141 -5513491-1927020 -5942734 D. FINANCING 1735660 1574415 2518752 3512209 4593440 4423391 6324392 2518493 5636935 1. External Sources 1689337 2302805 2201485 2784944 3963440 2776309 5128368 2371384 4615832 Grants 971547 1573195 1257283 1405288 2020907 1627425 2717928 1385219 2634090 Basket support 47331 200628 151370 194071 256219 220681 296000 105729 252000 Import Support/OGL Loans 266946 365038 331315 558320 189837 173806 168623 163525 134742 Project Loans 433203 209342 488795 695597 807590 643395 741000 367386 778000 Concensional loans 731212 153948 1271634 409375 931000 Amortization (foregn) -29690-45399 -27278-68331 -42326-42946 -66817-59850 -114000 2. Internal Sources 46323-728390 317267 727265 630000 1647081 1196025 147109 1021103 Non-Bank Borrowing 212475-19795 1108-24754 0 337494 0 0 0 Bank Borrowing 25533-316755 212567 593023 600000 906837 393360 449635 402000 Payment of arrears 714315 797620 720249 810902 518350 810902 Proceeds from privatisation 0 0 45000 9659 30000 0 0 0 0 Adjustment to Cash -60370-78308 275298 595034 0 162629 0-629077 0 Amortization (local) 0-14648 0-723776 -797620 0-8237 -8237-8237 Expenditure float -131315-298884 -216706-436236 0-480127 0-183562 -183562 Source: Ministry of Finance 78

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Table No. 26 CLASSIFICATION OF CENTRAL GOVERNMENT EXPENDITURE BY PURPOSE Shs. mill 2008/09 2009/10 2010/11* 2011/12* Recurrent Development Total Exp. Recurrent Development Total Exp. Recurrent Development Total Exp. Recurrent Development Total Exp. 1.0 GENERAL PUBLIC SERVICES 1985848 516184 25221913 2895011 717801 3612812 3575949 959512 4535460 4100600 1026806 5127405 1.1 Executive and legislative organs, financial and fiscal affairs external affairs other than foreign aid 1,811,197 432,437 19264490 2,695,305 613,601 3308906 3,311,734 822,100 4133834 3,872,620 881,446 4754066 1.2 Foreign economic aid 10,179 0 89445 6,826 0 6826 7,261 0 7261 13,500 39,025 52525 1.3 Fundamental research affairs and services 19,727 5,495 1311092 21,751 14,586 36337 22,934 42,731 65665 23,623 79,524 103148 1.4 General services 141,296 70,470 4426489 163,031 79,588 242619 175,065 85,041 260106 179,622 6,909 186530 1.5 General public services n.e.c. 3,448 7,782 130397 8,098 10,026 18124 58,955 9,640 68594 11,235 19,901 31136 2.0 DEFENCE AFFAIRS AND SERVICES 331524 55879 3840174 393868 33650 427518 459665 145304 604970 529513 156193 665805 2.1 287,446 8,959 3,743,225 372,082 33,650 405,732 459,355 31,104 490,459 529,260 19,901 529,260 Military and civil defence administration and operation 2.2 Foreign military aid 0 0 0 0 0 0 213 114,200 114,413 149 128,798 128,946 2.3 Defence-related applied research and experimental development 242 46,920 47,162 360 0 360 98 0 98 104 7,494 7,598 2.4 Defence affairs n.e.c. 43,837 0 49,787 21,426 0 21,426 0 0 0 0 0 0 3.0 PUBLIC ORDER AND SAFETY 226497 35841 2158861 268311 63957 332267 339889 54987 394876 401467 38026 439493 3.1 Police and fire protection 140,819 14,878 1,346,685 162,538 25,371 187,909 210,770 17,718 228,488 228,048 4,955 233,003 3.2 Law courts 49,298 8,812 413,046 52,882 18,433 71,315 67,379 7,661 75,040 88,710 1,000 89,710 3.3 Prison administration and operation 10,453 800 79,064 8,602 800 9,402 6,752 800 7,552 7,359 26,809 34,168 3.4 Public order and safety n.e.c. 25,927 11,350 320,065 44,289 19,353 63,642 54,988 28,809 83,796 77,350 5,263 82,613 4.0 EDUCATION AFFAIRS AND SERVICES 500915 105614 5286541 406638 135302 541939 551792 145376 697169 562972 319116 882088 4.1 Pre-primary & primary education affairs & services 6,027 7,925 571,271 6,977 3,889 10,866 2,839 3,115 5,955 1,355 12,400 13,755 4.2 Secondary education affairs and services 145,276 26,879 1,138,879 2,306 550 2,856 1,732 14,680 16,412 1,120 117,752 118,872 4.3 Tertiary education affairs and services 302,705 45,570 2,968,629 338,445 113,112 451,557 483,067 113,213 596,279 480,788 0 480,788 4.4 Education services not definable by level 0 17,213 66,516 946 4,300 5,246 3,315 2,295 5,610 2,260 1,192 3,452 4.5 Subsidiary services to education 0 0 0 184 0 184 125 0 125 122 10,294 10,416 4.6 Education affairs and services n.e.c. 46,908 8,027 541,245 57,779 13,450 71,230 60,715 12,073 72,789 77,326 177,478 254,805 5.0 HEALTH AFFAIRS AND SERVICES 221093 187226 3728935 236500 255412 491912 242351 389284 631635 233180 112408 345589 5.1 Hospitals affairs and services 34,573 146,037 1,291,535 36,466 190,201 226,667 35,163 304,310 339,472 31,847 111,209 143,056 5.2 Clinics, and medical, dental and paramedical practitioners 179,284 40,939 2,079,907 191,027 64,873 255,900 198,311 84,474 282,785 193,435 0 193,435 Public health affairs and services 5.3 0 250 160,519 0 338 338 0 500 500 0 0 0 5.4 Medicaments, protheses, medical equipment and appliances or other prescribed health-related products 3,513 0 46,978 5,398 0 5,398 8,878 0 8,878 7,898 1,199 9,098 5.5 Applied research and experimental development related to health and medical delivery system 0 0 0 0 0 0 0 0 0 0 0 0 health affairs and services n.e.c. 5.6 3,723 0 149,995 3,610 0 3,610 0 0 0 0 0 0 6.0 SOCIAL SECURITY AND WELFARE AFFAIRS AND SERVICES 70275 7928 843817 99366 13633 112999 94725 9255 103980 103466 10498 113964 6.1 6.2 6.3 Social security affairs and services Welfare affairs and services Social security and welfare affairs n.e.c. 1,966 290 57,616 1,800 590 2,390 1,494 738 2,231 591 4,337 4,928 64,940 7,112 757,473 95,620 12,665 108,285 91,771 5,663 97,434 101,901 3,052 104,953 3,369 526 28,727 1,947 378 2,325 1,460 2,855 4,315 974 3,109 4,083 HOUSING AND COMMUNITY AMENITY AFFAIRS AND 7.0 SERVICES 20337 144471 2315415 26179 215862 242040 33629 243760 277389 28450 417765 446215 7.1 Housing and community development 5,620 586 254,945 8,143 607 8,750 8,623 477 9,101 10,574 398,634 409,208 7.2 Water supply affairs and services 7,032 140,988 1,875,636 8,763 205,889 214,652 8,868 224,410 233,278 9,330 0 9,330 7.3 Sanitary affairs and services including pollution abatement and control 6,367 2,896 181,600 7,345 9,365 16,711 4,446 18,872 23,318 6,470 18,301 24,772 7.4 Street lightning affairs and services 0 0 0 0 0 0 11,693 0 11,693 2,076 829 2,906 7.5 Housing and community amenity affairs and services n.e.c. 1,318 0 3,234 1,928 0 1,928 0 0 0 0 0 0 8.0 RECREATIONAL, CULTURAL & RELIGIOUS AFFAIRS & SERVICES 9715 7926 17641 13434 8939 22373 26413 9218 35631 28389 302043 330432 8.1 Recreational, cultural and religious affairs and services This table continues on the next page 9,715 7,926 17,641 13,434 8,939 22,373 26,413 9,218 35,631 28,389 302,043 330,432 80

...Table No. 26 (continues) 2008/09* 2009/10* 2010/11* 2011/12* Recurrent Development Total Exp. Recurrent Development Total Exp. Recurrent Development Total Exp. Recurrent Development Total Exp. 9.0 FUEL AND ENERGY AFFAIRS AND SERVICES 33127 116822 149948 32801 153547 186348 36735 166453 203188 39053 102056 141109 9.1 Fuel affairs and services 33,127 116,822 149,948 32,801 153,547 186,348 36,735 166,453 203,188 39,053 102,056 141,109 9.2 Electricity and other energy sources 0 0 0 0 0 0 0 0 0 0 0 0 9.3 Fuel and energy affairs and services n.e.c. 0 0 0 0 0 0 0 0 0 0 0 0 10.0 AGRICULTURE, FORESTRY, FISHING AND HUNTING AFFAIRS AND SERVICES 177264 80511 257775 178486 161972 340457 192442 147366 339808 191700 31657 223357 10.1 Agriculture affairs and services 127,232 55,631 182,863 122,722 117,640 240,362 141,708 116,765 258,473 133,596 0 133,596 10.2 Forestry affairs and services 11,681 6,481 18,163 14,754 12,399 27,153 16,420 5,473 21,893 14,263 4,970 19,233 10.3 Fishing and Hunting affairs and services 17,116 8,648 25,764 19,888 17,999 37,887 20,764 13,309 34,073 24,991 9,206 34,197 10.4 Agricultural research and experimental development n.e.c. 14,700 9,751 24,450 14,621 13,133 27,754 12,926 11,321 24,247 18,145 448 18,594 10.5 Agriculture, forestry, fishing and hunting affairs and services n.e.c. 6,535 0 6,535 6,501 800 7,301 624 498 1,122 704 17,033 17,737 11.0 MINING, MINERAL,MANUFACTURING AND CONSTRUCTION AFFAIRS AND SERVICES 7450 3729 11179 18627 20295 38923 27717 19394 47110 32240 800 33040 11.1 Mining and mineral resources affairs and services, other than fuel 5,544 1,537 7,081 13,590 16,095 29,685 21,121 15,580 36,701 24,417 800 25,217 11.2 Manufacturing affairs and services 192 392 584 497 1,200 1,697 434 814 1,247 688 0 688 11.3 Construction affairs and services 1,715 1,800 3,514 4,540 3,000 7,540 5,653 3,000 8,653 6,566 0 6,566 11.4 Mining, mineral,manufacturing & construction affairs & services n.e.c. 0 0 0 0 0 0 509 0 509 570 0 570 12.0 TRANSPORTATION AND COMMUNICATION AFFAIRS AND SERVICES 219957 219191 439148 280063 567736 847800 303075 871297 1174372 255770 1399898 1655668 12.1 Road transport affairs and services 166,065 210,883 376,948 552 0 552 3,021 0 3,021 3,122 1,200 4,322 12.2 Water transport affairs and services 0 0 0 0 0 0 0 0 0 0 0 0 12.3 Railway affairs and services 0 0 0 0 0 0 0 0 0 0 0 0 12.4 Air transport affairs and services 0 0 0 0 0 0 0 0 0 250 1,376,888 1,377,138 12.5 Pipeline transport and other transport affairs and services 0 0 0 0 0 0 12.6 Transportation system affairs and services n.e.c. 40,914 3,850 44,764 257,226 539,668 796,894 280,240 854,967 1,135,206 231,889 3,650 235,539 12.7 Communication affairs and services 11,561 3,580 15,141 14,234 2,100 16,334 11,729 5,917 17,646 11,741 12,270 24,011 12.8 Transportation and communication affairs and services n.e.c. 1,417 878 2,295 8,051 25,968 34,019 8,086 10,413 18,499 8,768 5,891 14,659 13.0 OTHER ECONOMIC AFFAIRS AND SERVICES 224295 219400 443695 244652 441795 686446 99669 639369 739038 127564 1021234 1148798 Distribution trade affairs and services including storage 13.1 and warehouse; hotel and restaurant affairs and services 6,211 3,077 9,288 9,520 4,867 14,387 9,795 7,470 17,264 9,037 63 9,099 13.2 Tourism affairs and services 6,074 1,753 7,827 6,127 4,444 10,571 11,521 62 11,583 10,964 408,310 419,274 13.3 Multipurpose development project affairs and services 194,163 145,816 339,978 204,160 235,445 439,605 52,570 333,869 386,439 78,956 1,401 80,357 13.4 General economic & commercial affairs other than general labour affairs 9,338 13,337 22,675 10,837 2,275 13,112 12,180 2,523 14,703 11,911 585 12,496 13.5 General labour affairs and services 3,048 2,934 5,981 4,693 5,010 9,704 4,986 778 5,765 7,900 0 7,900 13.6 Other economic affairs and services n.e.c. 5,461 52,484 57,945 9,314 189,753 199,067 8,618 294,666 303,285 8,796 610,876 619,671 14.0 OTHERS 788840 4211 793051 1613418 12051 1625469 1829578 23181 1852759 1984948 6859 1991806 14.1 9.1 Public Debt 693,748 0 693,748 1,528,094 0 1,528,094 1,783,211 0 1,783,211 1,938,483 6,859 1,945,342 14.2 9.2 Financial and Capital Subscription 94,218 4,211 98,429 84,483 12,051 96,534 45,805 10,265 56,070 45,907 0 45,907 14.3 9.3 Pension and Gratuities 875 0 875 842 0 842 562 12,916 13,478 557 0 557 GRAND TOTAL 4,817,137 1,704,934 45,508,092 2,368,047 1,357,396 3,725,443 7,813,631 3,823,755 11,637,386 8,619,311 4,945,359 13,544,770 Source: National Bureau of Statistics * Estimates 81

CHAPTER 5 MONEY AND FINANCIAL INSTITUTIONS Money Supply and Domestic Credit 109. In 2010/11, narrow money supply (M1) increased to shs. 4,927.1 billion from shs. 4,134.7 billion in 2009/10, equivalent to an increase of 19.2 percent. The broad money supply (M2) increased by 19.4 percent from shs. 7,287.5 billion in 2009/10 to shs. 8,698.7 billion in 2010/11. Similarly, extended broad money supply (M3) increased to shs. 11,957.9 billion from shs. 9,801.4 billion in 2009/10, equivalent to 22.0 percent increase. Generally, the 2010/11 growth of money supply was lower compared to the growth in the year 2009/10. 110. By December 2011, the broad money supply (M2) grew by 15.0 percent, being lower than the targeted growth of 21.3 percent and 21.8 which was recorded in December 2010. Likewise, extended broad money supply (M3) grew by 18.2 percent in December 2011 compared with growth of 25.4 percent of similar period in 2010 and the target of 20.7 percent. The slowdown in the growth of money supply was a result of a decrease in the growth of Net Foreign Assets of commercial banks as compared to an increase in the growth of credit to the private sector. During the period under review, Net Foreign Assets grew by 3.5 percent only as compared with the growth of 23.2 percent in December 2010, largely due to increase in demand of foreign currency for imports of goods and services. 111. Domestic credit increased by 37.4 percent from shs. 6,164.7 billion in 2009/10 to shs. 8,470.5 billion in 2010/11. In addition, by December 2011, domestic credit increased to shs. 9,053.9 billion compared to shs. 6,790.4 billion of the same period in 2010, equivalent to an increase of 33.3 percent. Trends in Credit to Private Sector 112. In the year ended December 2011, the pace of credit growth to the private sector increased by 27.6 compared to 20.0 percent of similar period in 2010. This increament was attributed to decline in growth of net foreign assets of commercial banks and decrease in government borrowing following strong domestic revenue collection. 113. Large part of private sector credit was directed to personal loans which had an average of 21.1 percent of total credit created to the private sector. Other economic activities benefited from these credits include business (20.6 percent), manufacturing (12.8 percent) and agricultural activities (12.6 percent). 82

114. In 2011, value of Government securities issued declined from shs. 3,124.3 billion in 2010 to shs. 2,268.7 billion, equivalent to a decline of 27.4 percent. Moreover, the Government issued treasury bonds with the value of shs. 618.1billion compared with shs. 714 billion issued in 2010, equivalent to a decrease of 13.4 percent. Deposits in Commercial Banks 115. In 2011, deposits in commercial banks increased by 16.3 percent to shs. 11,342.4 billion from shs. 9,748.7 billion in 2010. Out of those, private sector contributed shs. 10,715.8 billion equivalent to 94.5 percent of total deposits, and the Government contributed 5.5 percent of the remaining deposits. This increament was due to improved security services on money deposits in banks following the effective management of the Bank of Tanzania as well as efforts taken by banks in providing various service incentives to customers. Initiatives taken by commercial banks includes: increasing number of branches in various areas in the country, introduction of sim-banking services and automatic teller machines (ATM). Moreover, the ratio of foreign currency deposits to total deposits increased to 32.8 percent in 2011 from 30.0 percent in 2010 largely due to strengthening of US Dollar against other currencies including Tanzania Shillings. Trends in Interest Rates 116. In 2011, interest rates trend on deposits and lending significantly improved as compared to trend in 2010 due to increased competition among financial institutions. The average deposits rate up to one year increased to 9.14 percent in December 2011 from 7.10 percent in December 2010. However, the average lending rate up to one year decreased from 14.37 percent in December 2010 to 13.73 percent in December 2011. Therefore, the interest rates spread between deposits and lending up to one year narrowed from 7.26 percent in December 2010 to 4.59 percent in December 2011. During the period under review, interest rate on Government securities increased to an average of 18.2 compared to 6.32 percent in December 2010. Financial Sector Reforms 117. In 2011, the Government continued to implement Financial Sector Reforms Program to ensure its effective contribution in economic activities and GDP growth. Regulations relating to Finance Leasing and Mortgage Finance were published in the Government Gazette on 29 th April 2011. Additionally, the Government through Tanzania Mortgage Refinancing Company (TMRC) started implementation of housing finance project in January 2011. Similarly, housing sector market study started in September 83

2011, while utilization of the funds for the Development of the Mortgage by refinancing of mortgage loans started in November 2011. 118. In 2011, the Government continued with the process of establishing the Credit Rerefence Bureau and the Credit Reference Databank. A contract was signed in October 2011 and the consultant has started to work on installation of related hardware and software, commissioning and training of users of the databank. Furthermore, the process of setting up a credit reference database commenced in January 2012. This includes reviewing existing credit reference system regulations, and a pilot project for collecting data from banking institutions. The establishment of credit reference bureau will allow banks to monitor credit history of potential borrowers, which is major obstacle in expanding access to financial services in the country. 119. In 2011, the study report on the establishment of Tanzania Agricultural Development Bank (TADB) was finalized and recommendations were approved by the Government in January 2012. Process of establishing TADB is ongoing as agreed under the special Task Force which was formed to coordinate the implementation. The bank is expected to be operationalized in December 2012. Parastatal Pension Fund (PPF) 120. The number of members contributing to the Parastatal Pension Fund increased to 180,049 in 2011 from 160,068 members in 2010, equivalent to an increase of 12.5 percent. Similarly, members contributions including fines increased to shs. 188 billion from shs. 147.7 billion in 2010, equivalent to an increase of 27.3 percent. During the period under review, benefits paid to retired members worth shs. 71.9 billion compared to shs. 63.8 billion which were paid in 2010, equivalent to 12.7 percent increase. This was a result of; increased number of retired members, the lump sum payments to retired employees of various organizations, and increased number of job terminating employees due to institutional reforms or closure. By December 2011, the value of the Parastatal Pension Fund increased to shs. 896.1 billion compared with shs. 722.5 billion of the similar period in 2010, equivalent to an increase of 24.0 percent. 121. In 2011, the Parastatal Pension Fund continued to invest in various investments including fixed deposits, securities, equities and real estates. By December 2011, total value of Fund investments was shs. 872.3 billion compared to shs. 706.9 billion in 2010, equivalent to an increase of 23.4 percent. Table No. 5.1 depict the areas of investments. Similarly, income from investment increased from shs. 35.2 billion in 2010 to shs. 79.8 billion in 84

2011, equivalent to an increase of 126.7 percent. This was due to increase in the value of corporate shares (equities) in the capital market. Table No. 5.1: Investment Areas (Tshs. Billion) Area of Investments 2010 (Dec) 2011 (Dec) (%) Change Fixed Deposits and Securities 452.77 573.34 26.63 Equities 125.9 165.3 31.52 Real Estates 89.26 90.75 1.67 Licensed Collective Schemes 38.9 42.9 10.28 Total 706.83 872.29 23.41 Source: Parastatal Pension Fund Public Services Pension Fund (PSPF) 122. In 2010/11, Public Services Pension Fund conducted registration exercise for members who were not registered by the Fund in Shinyanga, Mbeya, Rukwa, Iringa, Tabora, Mtwara, Ruvuma, Lindi, Kagera, Mara, Manyara, Arusha and Mwanza regions. From this exercise, a total of 21,398 members were registered, equivalent to 58.2 percent of the 36,798 targeted members. This makes a total of 198,823 members registered by the Fund by June 2011. Additionally, members contributions were shs. 392,172.15 million in 2010/11. 123. In 2010/11, the Fund paid benefits worth shs. 282,006.3 million compared to benefits worth shs. 145,298.9 million which were paid in 2009/10, equivalent to an increase of 94.1 percent. The increament was due to increased number of voluntary retired employees, those who absconding their jobs from various reasons including political reasons. Similarly, the value of the Fund increased by 22.6 percent to shs. 897.97 billion in June 2011 from shs. 732.38 billion in June 2010. 124. In 2010/11, Public Services Pension Funds continued to invest on various portfolios such as bonds, equities, fixed deposits, loans, real estate, Government securities and special Government projects. A total value of Fund s investment in 2010/11 was shs. 568,139.20 million. Out of those, shs. 387,267.67 million (Equivalent to 68.2 percent of total investment) were invested in fixed deposits followed by investment in real estate, which was shs. 98,936.01 million (17.4 percent). Further, by June 2011, income from investments was shs. 59,723.44 million compared with shs. 41,094.2 million 2009/10, equivalent to an increase of 45.3 percent. The increament was 85

attributed to increased guarantee of the Fund in financing Government projects. National Social Security Fund (NSSF) 125. In 2010/11, National Social Security Fund had a total of 521,629 members compared to 506,218 members in 2009/10, equivalent to an increase of 3.04 percent. In addition, the Fund collected contributions from members worth shs. 394,681.61 million in 2010/11 compared to shs. 295,787.14 million collected in 2009/10, equivalent to an increase of 33.43 percent. The increament was attributed to the registration of 98,894 new members, and the fact that 1,995 new registered employers adhered to regular payment of their member s contributions to the Fund. 126. Benefits paid to members amounted shs. 136,596.50 million in 2010/11 as compared to shs. 110,135.33 million in 2009/10, equivalent to an increase of 24.03 percent. Moreover, number of members benefited from the Fund increased to 222,776 in 2010/11 from 138,999 members in 2009/10, equivalent to an increase of 60.27 percent. The increase in the number of benefited members was highly attributed to beneficiaries from the Social Health Insurance Benefit who were 163,944, equivalent to 35.89 percent of total beneficiaries in the year 2010/11. 127. In 2010/11, the value of investment increased to shs. 1,216,624.46 million as compared to shs. 1,029,206.18 million in 2009/10, equivalent to an increase of 18.21 percent. The value of investments in Government securities increased to shs. 271,171.36 million in 2010/11 from shs. 185,316.8 million in 2009/10, equivalent to an increase of 45.92 percent. Likewise, investments income of the Fund was shs. 94,668.47 million in 2010/11 from shs. 92,451.94 million in 2009/10, equivalent to an increase of 2.40 percent. The increase in investments value was attributed to the increase in various activities in capital investments such as real estate, long term loans, fixed deposits and Government securities. 128. The value of Fund s total net assets for benefits increased by shs. 224,011.77 million from shs. 1,129,179.92 million in 2009/10 to 1,353,191.69 million in 2010/11, equivalent to an increase of 19.84 percent. Government Employees Provident Fund (GEPF) 129. In 2010/11, number of members of Government Employees Provident Fund increased to 41,879 from 35,279 members in 2009/10, equivalent to an increase of 18.7. The increase was a result of registration of many new members from informal sector. Similarly, members contribution increased to shs. 25,688.9 million in 2010/11 from shs. 16,321.5 million in 2009/10, 86

equivalent to a 57.4 percent increase. The increase in contribution was a result of increase in membership and the introduction of various collection means including the use of electronic transfers (the use of mobile phones). During the period under review, benefits paid to members increased by 10.6 percent reaching shs. 3,675.5 million compared to shs. 3,323.6 million which were paid in 2009/10. 130. In 2010/11, value of investments made by the Fund increased by 24.0 percent to shs. 101,272.5 million compared to shs. 81,673.5 million invested in 2009/10. Moreover, in 2010/11, realized income from investments was shs. 9,809.3 million compared to shs. 7,693.6 million earned in 2009/10, equivalent to an increase of 27.5 percent. This was the outcome of prudent investment decision of considering investments with high returns but careful selected to minimize risks involved. 131. The value of net asset of the Fund increased from shs. 91,282.3 million in 2009/10 to shs. 119,404.4 million in 2010/11, equivalent to an increase of 30.8 percent. In addition, the value of total assets of the Fund increased by 31.0 percent from shs. 91,487.5 million in 2009/10 to shs. 119,829.0 million in 2010/11. National Health Insurance Fund (NHIF) 132. In 2010/11, number of members contributing to the National Health Insurance Fund increased to 468,611 from 373,326 members in 2009/10, equivalent to an increase of 25.5 percent. The increase was due to amendment made to the National Health Insurance Fund Act (1999) to include other groups in need of health insurance services but they were not working in formal settings in accordance with the Act which established the Fund. In addition, members contributions increased from shs. 90,084.06 million in 2009/10 to shs. 134,890.98 million in 2010/11, equivalent to an increase of 49.7 percent. This was due to the increase of recruited new members and salary adjustment made by the Government on annual basis. 133. By June, 2011, the Fund accredited a total of 5,673 health facilities as compared to 5,576 health facilities accredited in similar period in 2010, equivalent to an increase of 1.7 percent. Out of the accredited health facilities, 4,661 facilities equivalent to 82.2 percent were Government owned facilities, 655 (11.5 percent) were faith based owned facilities, 26 (0.5 percent) were private owned facilities and 331 (5.8 percent) were pharmacies and Accredited Drugs Dispensing Outlets ( ADDO s). 87

134. In 2010/11, the Fund continued to offer various benefits payments to its members through accredited health facilities including Governmet, Private and Faith Based. By June 2011, the Fund paid a total of shs. 44,351.55 million, equivalent to 96.2 percent of shs. 46,125.61 million of the amount claimed, compared to paid benefits worth shs. 25,154.08 million equivalent to 90.4 percent of claimed amount of shs. 27,825.31 million in 2009/10. However, benefits payment of 2010/11 increased by 76.3 percent due to the advocacy program which made members to be aware on the use of their identity cards, increase in number of accredited health facilities, improvement of health services, increase in health seeking behaviour for proper treatment. 135. In 2010/11, the Fund continued to invest in treasury bills, treasury bonds, fixed deposits, Government projects and equities. During that period, investment income increased to shs. 25,065.08 million from shs. 17,115.73 million in 2009/10, equivalent to an increase of 46.4 percent. The increase resulted from Funds efforts to utilize fully investment opportunities that emerged during the period under review. Local Authorities Pensions Fund (LAPF) 136. In 2010/11, number of members of the Local Authorities Pension Fund increased by 9.1 percent to 80,529 members compared to 73,833 members in 2009/10. Similarly, collection from members was shs. 80.51 billion in 2010/11 compared to shs. 54.24 billion in 2009/10, equivalent to an increase of 48.4 percent. In addition, benefits paid to members in 2010/11 amounted shs. 26.50 billion compared to shs. 22.5 billion in 2009/10, equivalent to an increase of 17.8 percent. 137. Total value of investment increased from shs. 265.9 billion in 2009/10 to shs. 366.0 billion in 2010/11, equivalent to an increase of 31.9 percent. Moreover, value of investments in Government securities increased from shs. 133.5 billion in 2009/10 to shs. 145.5 billion in 2010/11, equivalent to an increase of 9.0 percent. 138. In 2010/11, income from Funds investment increased by 9.2 percent to shs. 28.63 billion from shs. 26.22 billion in 2009/10. This was a result of increased investments in equities, corporate bonds, real estate, long term loans and Government securities. Further, the value of net assets of the Fund was shs. 450.19 billion in 2010/11 compared to shs. 361.96 billion in 2009/10, equivalent to an increase of 24.4 percent. Tanzania Insurance Regulatory Authority (TIRA) 139. In 2011, one new company was registered to provide insurance services in the country, this adds to a total of 26 registered insurance 88

companies. The services provided by insurance companies are as follows: 21 companies were registered to provide general insurance services only; 2 companies were registered to provide life insurance services only; and 3 companies provided both general and life insurance services. In addition, insurance business earnings in 2011 grew by 19.2 percent to shs. 342.1 billion compared to shs. 286.9 billion earned in 2010. While general insurance services contributed 89.2 percent of total market earnings, life insurance contributed the remaining 10.8 percent. Earnings from general insurance services grew by 19.4 percent reaching shs. 305.3 billion in 2011 compared to shs. 255.7 billion in 2010. Similarly, life insurance business grew by 18.0 percent to shs. 36.8 billion compared to shs. 31.2 billion in 2010. This was due to the increase in general insurance companies providers, improved community awareness on insurance benefits and the strengthening of life insurance market. 140. By December 2011, general insurance companies recorded underwriting loss of shs. 9.2 billion compared to underwriting loss of shs. 2.0 billion recorded in 2010. These losses were due to increased payments of high valued claims and a rise in operational costs. Total assets value of insurance companies in 2011 increased to shs. 420.6 billion compared to shs. 355.7 billion in 2010, equivalent to an increase of 18.3 percent. Similarly, liabilities of all insurance companies increased to shs. 292.8 billion in 2011 compared to shs. 247.8 billion in 2010, equivalent to an increase of 18.2 percent. Table No. 5.2: Assets Value and Liabilities of Insurance Companies (Million Shs.) 2007 2008 2009 2010 2011 Total Assets 212,458 289,456 320,611 355,710 420,643 Growth (%) 13.53 26.60 9.72 10.95 18.25 Total Liabilities 133,081 202,238 219,022 247,789 292,845 Growth (%) 16.32 34.20 7.66 13.13 18.18 Balance 79,377 87,218 101,589 107,921 127,798 Growth (%) 8.85 8.99 14.15 6.23 18.42 Source: Tanzania Insurance Regulatory Authority Dar es Salaam Stock Exchange (DSE) 141. The number of listed companies at Dar es Salaam Stock Exchange increased from 15 companies in 2010 to 18 companies in 2011. New listed companies in the year 2011 were National Media Group, African Barrick Gold and Precision Air. Moreover, number of investors increased from 174,013 in 89

2010 to 180,882 investors in 2011, equivalent to an increase of 3.9 percent. Likewise, value of all shares listed at Dar es Salaam Stock Exchange was shs. 11,577.1 billion in 2011 compared to shs. 4,895.5 billion in 2010, equivalent to an increase of 136 percent. This was due to the increased number of listed companies and increased number of investors. 142. The Dar es Salaam Stock Exchange market traded shares worth shs. 50.95 billion in 2011 compared to shares worth shs. 35.7 billion traded in 2010, equivalent to an increase of 42.7 percent. In addition, the stock market price index increased from 1,163.89 in 2010 to 1,303.23 in 2011, equivalent to an increase of 12.0 percent. 143. In 2011, value of listed Government bonds decreased by 61.9 percent to shs. 615.4 billion compared to shs. 1,615.8 billion which were listed in 2010. The decrease was resulted from a drop of bonds market in the second half of year 2011. However, the value of traded treasury bonds increased to shs. 423.5 billion in 2011 from shs. 205.8 billion in 2010, equivalent to an increase of 105.8 percent. This resulted from increased awareness and public education provision regarding capital markets, securities and investments. Table No. 5.3: Dar es Salaam Stock Exchange Market Performance in 2011 Market Criteria 2010 2011 (%) Change Total Shares offered in the 6,981,012,16 7,742,072,98 10.9% Market 0 1 Value of all traded Shares 35,986 50,955 41.6% (Million Shs.) Value of all listed Shares 4,895 11,577 136.5% (Million Shs.) Number of traded shares 190,387,510 133,403,198-29.9% Number of deals 11,336 12,209 7.7% All Share Index 1,164 1,303 12.0% Tanzanians holding CDS account Foreigners holding CDS account Source: Dar es Salaam Stock Exchange 173,798 180,558 3.9% 215 324 50.7% Tanzania Postal Bank (TPB) 144. In 2011, customers deposits increased to shs. 120,485 million from 107,327 million in 2010, equivalent to an increase of 12.3 percent. The increase in deposits was due to the expansion of services provision to customers particularly the use of Umoja Switch ATMs. Along with increase in 90

deposits, the number of new customers joined the Bank increased from 582,772 customers in 2010 to 612,005 customers by the end of December 2011, equivalent to an increase of 5.0 percent. 145. In 2011, Tanzania Postal Bank continued to invest its resources on Government securities, other banks and private companies securities. By December 2011, value of total investments increased to shs. 121,002 million from shs. 112,758 million in 2010, which is 7.3 percent increase. Table No. 5.4: Value of all Investments (Million Shs.) Type of Investment Other banks deposits December December (%) 2010 2011 Change 3,348 4,988 49 Government securities 16,876 16,113-4.5 Stocks & Government Stocks 26,036 33,348 28.1 Private bonds 1,373 1,273-7.3 All loans 64,635 65,004 0.6 TPC Excess Deposits 490 276-43.7 Total 112,758 121,002 7.3 Source: Tanzania Postal Bank 146. In 2011, investments in loans increased to shs. 65,004 million from shs. 64,635 million in 2010, equivalent to an increase of 0.6 percent. A small increase in the creation of bank loans was accounted by lack of sufficient capital and the consideration of Risk weighted Assets to Core Capital criteria of the Bank of Tanzania. The distribution of loans types are indicated in Table No.5.5. Table No.5.5: Loans Distribution at Tanzania Postal Bank (Miln Shs.) Loan Type (%) 2010 2011 Change Business Loans 4,245 4,818 13.5 Consumer Loans 58,537 58,221-0.5 Micro Loans 1,598 1,534-4.0 Government Empowerment Loans 255 431 69.0 Total 64,635 65,004 0.6 Source: Tanzania Postal Bank 91

147. Income of the Bank in 2011 increased to shs. 23,849 million compared to shs. 20,122 million earned in 2010, equivalent to an increase of 18.5 percent. Following the increase in income, the Bank realized a profit of shs. 2,267 million after tax deduction compared to shs. 465 million in 2010. This was due to increased loans, increased interest and controlled spending on some Bank s activities. In addition, following its contract to work on behalf of the Tanzania Revenue Authority, the Bank realized income from local taxes collection. 92

Table No. 27 MONETARY SURVEY: TANZANIA MAINLAND Shs. Billion For the period ended December Change 2010-2011 2003 2004 2005 2006 2007 2008 2009 2010 2011 Amount % Base Money (M0)* 563.5 694.5 890.0 1034.0 1162.5 1438.6 1566.8 1897.1 2235.8 338.7 17.9% Narrow Money (M1) 1107.2 1359.0 1791.3 2006.8 2590.5 3158.3 3590.8 4521.4 5572.0 1050.6 23.2% Time and Saving Deposits 738.9 852.0 1169.1 1447.7 1804.1 2310.2 3012.6 3520.7 3676.0 155.2 4.4% Broad Money (M2) 1846.1 2211.0 2960.4 3454.5 4394.6 5468.5 6603.4 8042.1 9247.9 1205.8 15.0% Foreign Currency Deposits 932.8 942.7 1290.3 1710.0 1829.0 1990.3 2176.7 2970.5 3773.4 802.9 27.0% Extended Broad Money (M3) 2778.8 3153.8 4250.7 5164.5 6223.6 7458.8 8780.1 11012.6 13021.3 2008.7 18.2% Net Foreign Assets 2302.7 2498.8 2665.1 3617.4 3641.9 4086.8 4939.5 6086.3 6296.4 210.1 3.5% Net Domestic Assets 1412.4 1873.0 3074.6 3637.0 5172.9 5904.8 6578.0 7650.7 8589.4 938.7 12.3% Net Domestic Credit 1820.3 2258.6 3335.3 4117.4 5422.5 6753.9 7857.6 9522.9 10958.1 1435.2 15.1% Net Claims on Government 827.7 945.9 1681.1 1807.3 2271.3 2197.8 2865.8 3531.0 3335.7-195.3-5.5% Lending to Non-Govt. Sectors 992.5 1312.7 1654.3 2310.1 3151.2 4556.2 4991.9 5991.9 7622.3 1630.4 27.2% Other Items Net -407.9-385.6-260.7-480.4-249.7-849.2-1279.6-1872.2-2368.7-496.4 26.5% Source: Bank of Tanzania * Currency in Circulation Outside Banks 93

Table No. 28 GROWTH OF MONEY SUPPLY AND DOMESTIC CREDIT - TANZANIA MAINLAND For the period ended December 2004 2005 2006 2007 2008 2009 2010 2011 Base Money (M0)* 23.2% 28.1% 16.2% 12.4% 23.8% 8.9% 21.1% 17.9% Narrow Money (M1) 22.7% 31.8% 12.0% 29.1% 21.9% 13.7% 25.9% 23.2% Time and Saving Deposits 15.3% 37.2% 23.8% 24.6% 28.1% 30.4% 16.9% 4.4% Broad Money (M2) 19.8% 33.9% 16.7% 27.2% 24.4% 20.8% 21.8% 15.0% Foreign Currency Deposits 1.1% 36.9% 32.5% 7.0% 8.8% 9.4% 36.5% 27.0% Extended Broad Money (M3) 13.5% 34.8% 21.5% 20.5% 19.8% 17.7% 25.4% 18.2% Net Foreign Assets 8.5% 6.7% 35.7% 0.7% 12.2% 20.9% 23.2% 3.5% Net Domestic Assets Net Domestic Credit 32.6% 64.2% 18.3% 42.2% 14.1% 11.4% 16.3% 12.3% Net Claims on Government 24.1% 47.7% 23.4% 31.7% 24.6% 16.3% 21.2% 15.1% Lending to Non-Govt. Sectors 14.3% 77.7% 7.5% 25.7% -3.2% 30.4% 23.2% -5.5% Other Items Net 32.3% 26.0% 39.6% 36.4% 44.6% 9.6% 20.0% 27.2% Source: Bank of Tanzania * Currency in Circulation Outside Banks 94

Jedwali Na.29 TREND OF EXCHANGE RATES OF THE TANZANIA SHILLING AGAINST THE US DOLLAR 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Shs/US Dollar, End of the Year 976.65 1,063.62 1,042.96 1,165.51 1,261.64 1,132.09 1,280.30 1,313.29 1,453.54 1,566.66 Change in exchange rate (%) -8.2-1.9 11.8 8.2-10.3 13.1 2.6 10.7 7.8 Shs/Dollar, Average for the Year 965.57 1,042.26 1,089.52 1,132.23 1,254.17 1,239.50 1,196.77 1,319.86 1,432.25 1,579.50 The weighted average exchange rate (%) -7.4 4.5 3.9 10.8-1.2-3.4 10.3 8.5 10.3 Source: Bank of Tanzania 95

COMMERCIAL BANKS LENDING BY ECONOMIC ACTIVITIES Table No. 30 Type of Activity For the Period ended December (Shs. Million) Growth Shares 2008 2009 2010 2011 (%) (%) Agricultural Production 515936.0 467097.1 691210.3 912331.8 32.0 12.3 Financial intermediaries 122001.1 105843.7 142600.1 177691.8 24.6 2.4 Mining and Quarrying 37727.8 18926.3 33943.7 39175.7 15.4 0.5 Manufacturing 612670.6 565775.5 786470.6 928746.6 18.1 12.6 Buildings and Construction 142992.8 148713.4 182071.6 320938.2 76.3 4.3 Transport and Communication 320600.6 457407.2 533990.3 545243.5 2.1 7.4 Trade 737092.1 926626.3 1014177.8 1523962.2 50.3 20.6 Tourism 29165.5 27097.6 37665.7 49730.4 32.0 0.7 Hotels and Restaurants 150978.4 187204.6 263046.3 361039.7 37.3 4.9 Electricity 183487.0 193609.6 156528.3 166672.8 6.5 2.3 Personal 928491.7 1063142.9 1242763.5 1557495.5 25.3 21.1 Other Services 595327.5 644369.9 713954.0 815729.5 14.3 11.0 Total 4376471.1 4805814.0 5798422.1 7398757.6 27.6 100.0 Source: Bank of Tanzania 96

TRENDS OF COMMERCIAL BANKS DEPOSITS Table No.31 Shs. Billion For the Period Ended December Change 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2010/11 ( %) Private Deposits Demand Deposits/Transferable deposits 339.8 441.4 541.7 662.3 898.1 969.5 1,424.8 1,715.7 2,019.4 2,617.8 3,329.5 27.2 Saving and Time Deposits 548.5 623.3 735.1 848.9 1,165.9 1,444.5 1,803.9 2,307.9 3,011.9 3,505.2 3,664.2 4.5 Foreign Currency Deposits 563.3 764.3 921.3 934.8 1,289.0 1,709.9 1,828.6 1,989.3 2,158.8 2,926.4 3,722.0 27.2 Total 1,451.6 1,828.9 2,198.1 2,446.0 3,353.0 4,123.9 5,057.3 6,012.9 7,190.1 9,049.5 10,715.8 18.4 Government Deposits 80.0 102.8 125.2 152.1 206.6 230.1 325.2 401.7 662.6 699.3 626.6-10.4 Total of Deposits 1,531.5 1,931.7 2,323.3 2,598.0 3,559.6 4,354.0 5,382.5 6,414.5 7,852.7 9,748.7 11,342.4 16.3 Source: Bank of Tanzania Table No. 32 Type AVERAGE NOMINAL INTEREST RATE Percent For the Period Ended December 2003 2004 2005 2006 2007 2008 2009 2010 2011 Bank rate 12.34 14.42 19.33 20.07 16.40 15.99 3.70 7.58 12.00 Deposit Rates Saving Deposits 2.45 2.60 2.60 2.59 2.65 2.74 2.83 2.43 2.90 Fixed Deposits 3.87 4.39 5.28 7.17 8.37 6.63 6.36 6.09 7.12 Lending Rates Short term ( Up to 1 year) 15.65 14.23 15.65 15.67 15.01 13.56 13.96 14.37 13.73 Long and Medium Term 13.83 14.80 14.98 16.36 15.31 16.05 14.38 14.92 14.21 Tresury Bills Rate 91 Days 7.57 9.63 14.70 14.39 9.90 11.20 6.06 5.24 12.61 182 Days 7.61 9.87 14.71 14.95 10.15 12.13 6.59 6.20 16.39 364 Days 7.93 10.67 15.72 15.61 12.95 12.79 8.83 7.67 18.66 Source: Bank of Tanzania 97

Population and Development CHAPTER 6 HUMAN RESOURCES 148. In 2011, the Government continued with preparation of Population and Housing Census of 2012, which will take place on 26 th August 2012. This exercise is under the coordination of National Bureau of Statistics. So far, the following arrangements have been made: enumeration areas was earmarked whereas up to March 2012, the excercise in 27 regions out of 30 was completed; preparation of questionnaires and guidelines aiming at gathering important information like demography, disability, education, deaths, state of residence and ownership of resources, economic activities, emigration and immigration; pilot census which was conducted in October 2011 in 44 enumeration areas with the aim of examining if questionnaires were well understood to public in order to identify shortcomings to be addressed prior to the Census day; and ongoing public sensitization through seminar, workshops, forums, various publications and media. 149. In 2011, the population of Tanzania was estimated at 44,484,857 compared to 43,187,823 in 2010. Out of those, 22,570,628 were female, equivalent to 50.7 percent, while 21,914,229 were male, equivalent to 49.3 percent. Tanzania mainland had an estimated population of 43,169,305, equivalent to 97.0 percent while Tanzania Zanzibar had an estimated population of 1,315,552 equivalent to 3.0 percent of the total population. Population distribution showed that 32,609,462 people, equivalent to 73.3 percent of the total population live in rural areas, while 11,875,395 people equivalent to 26.7 percent of the total population live in urban areas. These estimates are based on the population growth projections established during the Population and Housing Census of 2002. 150. In 2011, the population classification according to age indicate that population aged below five years were 7,974,308 equivalent to 17.9 percent of the total populaation. Among them, boys were 4,020,794 and girls were 3,953,514. Population aged between 5 and 14 years were 11,768,537, eqiuvalent to 26.5 percent of the total population. Among them, boys were estimated at 5,905,655 and girls were 5,862,882. In addition, population of 19,742,845 equilalent to 44.4 percent of the total population were estimated to be aged below 15 years. Among them, boys were estimated at 9,926,449 and girls were 9,816,396. Population aged 15 24 years was estimated at 8,843,197, equivalent to 19.9 percent of the total population. Among them, 4,408,579 were female and 4,434,618 were male. Population aged 25 64 years was estimated at 14,539,109, equivalent to 32.7 percent of the total population. 98

The population aged between 15 64 years, which constitute the active labour force population, was estimated at 23,382,306, equivalent to 52.6 of the total population. Among them, 12,036,168 were females and 11,346,138 were males. Population aged 65 years and above were 1,359,706, equivalent to 3.1 percent of the total population. Among them, 718,064 were female and 641,642 were males. Table 6.1: Population Distribution by Age Group Source: Ministry of Finance 151. According to 2011 population estimates, population density was 50 people per square kilometre. Population density in Tanzania Mainland and Tanzania Zanzibar was 49 people and 535 people per square kilometre, respectively. The population density region-wise, showed that Dar es Salaam has highest population which was estimated at 2,294 people per square kilometre, followed by Mwanza with 186, Kilimanjaro with 126, and Mara with 87 people per square kilometre. The region with lowest population density was Lindi with an estimate of 14 people per square kilometre followed by Ruvuma with 22 people and Rukwa with 23 people per square kilometre. In Tanzania Zanzibar, the region with the highest population density was Mjini Magharibi, with population density estimated at 2,152 per square kilometre where as Kusini Unguja region had estimated population density of 135 people per square kilometre. 152. The regional population distribution shows that Shinyanga continued to have higher population. In 2011, Shinyanga region had estimated population of 3,998,664 equivalent to 9.3 percent of Tanzania mainland; followed by Mwanza 3,669,380 (8.5 percent) and Dar es Salaam 3,194,903 99

(7.4 percent). The higher population in Shinyanga was largely contributed by high fertility rate which was estimated to 7.4 children per woman. Lindi region had the lowest population with an estimate of 941,885 people, equivalent to 2.2 percent of Tanzania Mainland population. In Tanzania Zanzibar, the region with highest population was Mjini Magharibi (495,054) while the region with lowest population was Kusini Unguja (115,035). The lowest population in Lindi and Kusini Unguja regions was due to low fertility rate, migration to other regions with more economic opportunities and social services. Labour Force and Employment 153. According to the Integrated Labour Force Survey (ILFS) of 2006, active labour force was estimated at 18.8 million, out of that 9.0 million were males and 9.7 million were females. In addition, the Survey reveals that 16.6 million people were employed and 2.2 million were not employed. Further, the survey showed that 8.5 million females and 8.0 million males were employed while 967,847 male and 1,226,545 female were not employed. Furthermore, the survey underlined the agriculture sector to be the leading source of employment in the country. 154. Integrated Labour Force Survey of 2006 which provides statistics on employment status in the country is the only recent survey to be conducted. The survey is supposed to be conducted after every five years depending on the availability of funds. However, according to the projected estimates of Population and Housing Census of 2002, active labour force population (15 64 years) in 2011 was projected at 23,382,306, equivalent to 52.6 of the total population. 155. In 2011, Tanzania Employment Services Agency (TaESA) provided employment services to 2,619 customers. Among them, males were 1,841, equivalent to 70.3 percent and females were 778, equivalent to 29.7 percent. Moreover, the Agency continued to provide various services to job seekers by giving them entrepreneurial skills to improve their employability. Further, TaESA issued the guideline which describes various techniques of securing jobs and advice on issues relating to employment services. 156. In 2011, TaESA approached various employers from which a total 543 job openings and 819 job opportunities were obtained. In addition, the Agency conducted preparation sessions to jobseekers on various techniques of securing jobs, how to succeed in interviews, labour market information and advice on issues relating to employment services. 100

REGIONAL DISTRIBUTION OF TANZANIA POPULATION (2005-2011) Table No. 33 Region 2005 2006 2007 2008 2009* 2010 2011** Dodoma 1,786,073 1,896,786 1,951,071 2,004,544 2,058,630 2,111,764 2,163,817 Arusha 1,427,904 1,475,489 1,522,975 1,570,394 1,617,728 1,664,780 1,711,624 Kilimanjaro 1,435,847 1,503,014 1,535,975 1,569,212 1,602,530 1,635,870 1,669,174 Tanga 1,716,271 1,753,284 1,837,661 1,880,389 1,923,468 1,966,908 2,010,480 Morogoro 1,881,113 1,929,087 1,975,160 2,021,713 2,068,426 2,115,275 2,162,197 Pwani 944,145 968,637 991,586 1,014,968 1,038,654 1,062,574 1,086,658 Dar es Salaam 2,799,241 2,801,675 2,881,548 2,961,150 3,040,118 3,118,132 3,194,903 Lindi 816,815 851,764 869,522 887,434 905,480 923,607 941,884 Mtwara 1,176,112 1,220,248 1,246,089 1,271,912 1,297,751 1,323,568 1,349,235 Ruvuma 1,192,680 1,235,161 1,268,738 1,303,330 1,338,800 1,375,017 1,412,084 Iringa 1,553,392 1,617,696 1,649,200 1,679,828 1,709,225 1,737,382 1,764,285 Mbeya 2,201,206 2,346,388 2,423,635 2,502,258 2,581,792 2,662,156 2,743,084 Singida 1,150,367 1,222,810 1,258,545 1,294,584 1,330,931 1,367,481 1,404,065 Tabora 1,887,507 2,004,115 2,086,048 2,170,926 2,258,664 2,349,374 2,443,049 Rukwa 1,251,697 1,302,278 1,349,579 1,398,866 1,450,118 1,503,184 1,558,200 Kigoma 1,910,592 1,970,750 1,601,020 1,669,078 1,740,111 1,814,158 1,891,173 Shinyanga 3,060,176 3,277,784 3,411,023 3,549,342 3,692,941 3,841,787 3,998,664 Kagera 2,206,814 2,210,217 2,293,093 2,379,637 2,469,904 2,563,870 2,661,671 Mwanza 3,196,714 3,168,904 3,265,729 3,364,378 3,464,566 3,566,263 3,669,380 Mara 1,461,270 1,572,068 1,631,031 1,692,449 1,756,442 1,822,866 1,891,907 Manyara 1,141,376 1,198,051 1,241,994 1,288,280 1,337,015 1,388,295 1,441,771 Tanzania Mainland 36,197,312 37,526,206 38,291,222 39,474,672 40,683,294 41,914,311 43,169,305 Kaskazini Unguja 146,221 155,066 160,175 165,544 171,150 177,095 183,209 Kusini Unguja 99,678 103,191 105,456 107,811 110,183 112,612 115,035 Mjini Magharibi 441,446 461,759 447,716 459,502 471,341 483,205 495,054 Kaskazini Pemba 196,221 216,174 224,951 234,142 243,759 253,999 264,677 Kusini Pemba 186,651 207,348 216,479 226,055 236,072 246,601 257,577 Zanzibar 1,070,217 1,143,538 1,154,777 1,193,054 1,232,505 1,273,512 1,315,552 Tanzania 37,267,529 38,669,744 39,445,999 40,667,726 41,915,799 43,187,823 44,484,857 Source: National Bureau of Statistics ** Projections based on the Population Census - 2002 101

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CHAPTER 7 Investment in the Country PRIVATE SECTOR DEVELOPMENT 157. In 2011, Projects registered with Tanzania Investment Centre (TIC) increased by 62.2 percent from 509 projects worth shilling 7,092,618.68 million in 2010 to 826 projects valued at shilling 10,909,404.80 million. Out of these, 689 projects were new and 136 projects were for expansion and renovation. In addition, projects owned by local investors were 462, projects owned by foreign investors were 172 and projects of joint venture were 191. Employment opportunities from these projects arose to 79,101 compared to 43,640 opportunities in 2010. 158. In 2011, tourism activities led in attracting investors with 222 projects worth shilling 798,243.23 and employment opportunities of 9,349, followed by manufacturing sector with 206 projects worth shilling 1,074,548.8 million and employment opportunities of 19,779. Investment in other areas were as follows: Transport sector 143 projects worth shilling 1,103,672.0 million with employment opportunities of 15,336; Commercial building 130 projects, worth shilling 1,484,356.0 million with employment opportunities of 16,493; Agriculture 53 projects, worth shilling 1,012,198.4 million with employment opportunities of 8,968; Human resources 29 projects, worth shilling 385,107.2 million with employment opportunities of 2,239; Services 12 projects, worth shilling 35,720.0 million with employment opportunities of 962; Communication 8 projects, worth shilling 413,956.8 million and employment opportunities of 503; Financial 7 projects, worth shilling 132,954.4 million and employment opportunities of 843; Economic infrastructure 4 projects, worth shilling 3,772,776.8 million and employment opportunities of 3,543; Energy 3 projects, worth shilling 469,711.2 million and employment opportunities of 120; Broadcasting 3 projects, worth shilling 23,134.4 million and employment opportunities of 390; Computer 3 projects, worth shilling 9,393.6 million and employment opportunities of 72; Natural resources 2 projects, worth shilling 8,512.0 million and employment opportunities of 313; and Petroleum products and Mining one project with shilling 85,120.0 million and employment opportunities of 191. Distribution of Projects by Regional 159. In 2011, Dar es salaam led in registering investment projects followed by Arusha region, where they registered 460 projects and 119 projects, respectively. Investments in other regions were as follows: Coast 45; Mwanza 40; Iringa 29; Tanga 23; Kilimanjaro 20; Mbeya 18; Morogoro 16; Mtwara 10; Ruvuma and Dodoma 7 projects each; Rukwa and Shinyanga 6 projects each; 103

Tabora and Kagera 5 projects each; Manyara 4 projects; Kigoma, Lindi, Mara and Singida 3 projects each. In addition, TIC addressed 13,566 applications compared to 10,822 applications addressed in 2010, as shown in table No. 7.1. Table No. 7.1: Applications addressed by the Tanzania Investment Centre Service 2009 2010 2011 Immigration: Grade A 327 276 288 Grade B 2578 2,386 2,247 Employment 3473 3,284 2,542 Company registration 104 49 43 Business registration 62 75 100 Land 2191 1,677 4292 Tax 3968 3,351 4342 Total 12703 10,822 13,566 Source: Tanzania Investment Centre Foreign Direct Investment 160. In 2011, the value of Foreign Direct Investment increased by 97 percent up to USD 854.2 million compared to USD 433.9 million in 2010. This large increase was due to massive investment in gas exploration in the region of Mtwara which cost more than USD 300 million. Table No. 7.2 Foreign Direct Investment 1995-2011 Year Value of FDI (In UDS million) 1995 150.9 1996 148.6 1997 157.8 1998 172.2 1999 516.7 2000 463.4 2001 467.2 2002 387.6 2003 308.2 2004 330.6 2005 447.6 2006 616.6 2007 653.4 2008 744.0 2009 558.4 2010 433.9 2011 854.2* Source: Bank of Tanzania (*) Estimates Improving the Enabling Environment for Private Sector 161. In 2011, the Government started implementation of a Program for Improvement of Enabling Environment for Investment which was approved in 2010. Through this Program, the Government approved regulations for filing 104

and payment of Value Added Tax and Excise Tax through internet via Government Notice No. 242 and 241 respectively. This procedure has increased efficiency by eliminating disturbances and loss of time in paying taxes. Currently, more than 75 percent of large tax payers and other 2,795 taxpayers make their submissions through internet. Similarly, the Government in collaboration with Tanzania Revenue Authority introduced a system which links tax administration (Asycuda, ITAX) and commercial banks to facilitate payment of taxes. So far, the system has connected a total of 25 banks. In addition, the Authority uses the services of Vodacom M-Pesa and NMB- Mobile for payments of property tax and income tax. 162. In 2011, the Government in collaboration with Tanzania Port Authority (TPA) and TRA continued with the efforts to eliminate bureaucracy during the process of removing cargo ports. The Government introduced procedure of submitting documents through internet before cargo arrival (Pre Arrival Declaration -PAD). This procedure: allows stakeholders to submit documents wherever there is internet; removed the problem of presenting documents twice or more to Tanzania Inspection Services Company (TISCAN) and Division of Customs; removed the problem of congestions and misplacement of documents in the process of removing cargo ports; and has resulted in reduced time and cost of imports and exports cargo transportation. In addition, the Government introduced a Data Base for Customs revenue valuation (Import/ Export Commodity Data Base-IECDB.) Similarly, the Government allocated an area for construction of a dry port which will accommodate all port stakeholders and the construction process is on progress. The Government also has removed the restrictions on transportation (roadblocks) within the country, from existing 50 to 15, except those located at weighbridge stations and border posts. 163. In 2011, the government continued to improve the system of ownership of property including law reform, management and use of modern technologies in registering property. The aim is to reduce time in the process of registering property from existing 73 days to 45 days. In 2011, the last step in registering property declined from 14 days to 9 days. The Government also set a favourable environment to support access to credit, including adopting regulations which will help increase the availability of long-term loans with reasonable interest, and managing the lease and credit facility (Financial Leasing Regulations 2011). In addition, the Government continues with the process of establishing an independent unit to deal with management of Government Loan Guarantee Schemes. 105

ECONOMIC EMPOWERMENT Mwananchi Empowerment Funds 164. In 2011, the Government through Mwananchi Empowerment Fund extended loans amounting to shilling 7.1 billion compared to shilling 4.6 billion in 2010, equivalent to an increase of 54.4 percent. These loans were extended to beneficiaries through 30 Savings and Credit Cooperatives (SACCOs) in Coast, Dodoma, Lindi, Manyara, Mtwara, Rukwa, Ruvuma, Singida and Tanga regions. Repayments of these loans were 96 percent of the amount granted. These loans enabled entrepreneurs to establish small projects and purchase of agricultural implements including power tillers and agricultural inputs. Economic Empowerment and Employment Creation Program 165. In 2011, the Government continued to implement the Program for Economic Empowerment and Employment Creation. As at end of December 2011, the Government through this Program, extended loans worth shilling 49.23 billion to 72,912 entrepreneurs through 12 financial institutions compared to shilling 47.14 billion issued to 72,179 entrepreneurs in 2010. In addition, a total of shilling 39.28 billion, equivalent to 83.3 of the amount due, were repayed. Issuance and Access to Credit through various Funds 166. In 2011, the Government through Presidential Trust Fund for lowincome citizens issued loans worth shilling 6.8 billion to 167,372 beneficiaries to enable them establish and strengthen various economic activities. Out of the amount due 65 percent has been repaid. 167. In 2011, the Bank of Tanzania through Export Credit Guarantee Scheme issued loan guarantee worth shilling 448,590,063,693 to financial institutions to enable them provides loans for exporters. Due to this guarantee, these institutions were able to issue loans worth shilling 584,946,840,280. In addition, 80 percent of guarantee issued were used to support agricultural activities. Similarly, the government through Small and Medium Enterprise Credit Guarantee Schemes (SMECGS) issued guarantee worth shilling 3,135,659,876 for financial institutions, which in return provided loans amounted shilling 6,505,912,000 to entrepreneurs. 168. In 2011, the Government through National Entrepreneurs Development Fund which is managed by SIDO extended loans worth shilling 26.0 billion to 51,019 beneficiaries. These loans led to creation of 153,185 employment potentials. In addition, loans repayment rate was 90.4 percent of the amount due. 106

169. In 2011, the Government through Youth Development Fund extended loans worth shilling 1.7 billion to youth aged 15-35. Out of the matured loans only shilling 0.25 billion (14.7 percent) was repaid. This rate reflects that there is a major challenge in the repayment of loans from this Fund. In addition, loans worth shilling 40.2 billion were issued to 84,315 entrepreneurs through Small Entrepreneur Loan Facility (SELF) Project. This project fulfils the tasks of capacity building and providing loans to small entrepreneurs, particularly for those lives in rural areas. Among the beneficiaries who received the loan, women were 58 percent and the repayment of these loans was 92.5 percent 170. In 2011, the Government through Agricultural Inputs Trust Fund (AGTF) issued loan worth 49.45 billion to famers and suppliers of agricultural inputs. Out of the amount issued, shilling 14.6 billion equivalent to 29.5 percent has been paid. This is due to long repayment period (five years) especially for agricultural implements such as tractors. 107

Table No.34 Sector TANZANIA INVESTMENT CENTRE (TIC): APPROVED PROJECTS 2010 2011 A B C D E F G H A B C D E F G H Agriculture and Livestock 23 21 2 12 6 5 5169 663,710.6 53 47 6 21 17 15 8968 1,012,198.4 Natural Resources 1 1 0 0 1 0 100 4,494.0 2 2 0 0 0 2 313 8,512.0 Tourism 103 84 19 66 22 15 5452 417,083.9 222 177 45 142 31 49 9349 798,243.2 Manufacturing 183 162 21 68 76 39 14327 705,299.1 206 173 33 83 64 59 19779 1,074,548.8 Petroleum Products and Mining 0 0 0 0 0 0 0-1 1 0 0 0 1 191 85,120.0 Construction 92 85 7 43 30 19 5078 1,925,186.1 130 113 16 81 23 25 16493 1,484,356.0 Transport 62 44 18 37 13 12 7197 436,513.1 143 116 27 96 24 23 15336 1,103,672.0 Services 19 19 0 4 10 5 4717 213,127.6 12 12 0 3 5 4 962 35,720.0 Computer 1 1 0 0 0 1 43 1,218.0 3 3 0 1 1 1 72 9,393.6 Financial 4 2 2 0 0 4 86 2,294.6 7 5 2 1 2 4 843 132,954.4 Communication 5 5 0 2 1 2 529 260,008.0 8 6 2 2 0 6 503 413,956.8 Human Resources 3 3 0 1 1 1 45 20,921.6 29 24 5 26 3 0 2239 385,107.2 Energy 8 6 2 5 0 3 412 2,277,800.0 3 3 0 1 1 1 120 569,711.2 Economic Infrastructure 1 1 0 1 0 0 22 6,076.0 4 4 0 2 1 1 3543 3,772,776.8 Broadcasting 4 4 0 3 0 1 463 158,886.0 3 3 0 3 0 0 390 23,134.4 Total 509 438 71 242 160 107 43640 7,092,618.6 826 689 136 462 172 191 79101 10,909,404.8 Source: Tanzania Investment Centre (TIC) A Total Number of Approved Projects B New projects C Old projects (expansion and rehabilitation) D Local projects E Foreign projects F Joint projects G Total employment H Total investment (Shs. million) 108

CHAPTER 8 HIV/AIDS CROSS CUTTING ISSUES 171. In 2011, the Government continued to implement the National Aids Control Program by providing services on treatment and care to people living with HIV and AIDS (PLHA), counselling and voluntary HIV testing. Futher, the Government continued to improve these services by ensuring that antiretroviral drugs are available in health care centers. In 2011, a total of 1,100 centers were providing treatment and care services to targeted people in all referral, regional and district hospitals; and some health centers and dispensaries countrywide. Futhermore, HIV counselling and testing centers increased by 2.9 percent from 2,137 centers in 2010 to 2,200 centers in 2011. 172. In 2011, a total of 14,992,976 people were voluntarily counselled and tested on HIV and AIDS, compared to 8,890,207 people in 2010. This was a result of the increase in the number of HIV and AIDS counsellors and testing centers. The number of service providers increased from 5,240 in 2010 to 9,880 in 2011. In addition, The number of PLHA and accessing antiretroviral drugs increased by 24.6 percent from 313,384 people in 2010 to 390,390 in 2011. Out of those, children under 15 years were 29,918. Environment 173. In 2011, the Government continued to implement the 1997 Environmental Policy and Environment Management Act (Cap. 191). During this period, two regulations for the implementation of the Environment Management Act were formulated, making the Act to have a total of 17 regulations out of the required 29 regulations, compared to 15 regulations in 2010.These regulations include Sustainable Management of Wetlands Regulations and Coastal Management Regulations. Further, in 2011, three environmental management guidelines were prepared. These are: Guidelines on Environmental Management Trust Fund; Guidelines on Management of Environmental Triburnal; and Guidelines on Integrating Climatic Change into sectoral policies, plans and programmes. 174. In 2011, the Government continued to enforce investors to adhere to the Environment Management Act by undertaking Environmental Impact Assessment (EIA) before and after executing their projects. During this period, a total of 467 investment projects by were registered for EIA. Out of those, 109

163 projects were certified after fulfilling the requirements to 220 projects certified in 2010. Moreover, out of the certified projects, 44 were for communication; 36 were for manufacturing; 28 were for energy; 17 infrastructure;16 for construction and tourist attraction development; 12 for water; 7 for mineral exploitation; and three for forestry and agriculture projects. 175. In 2011, the Government continued to implement various projects and programmes to conserve biodiversity. The projects include: Gombe Kigoma and Masito Mpanda Ecosystem Environmental Conservation Project which covers an area of 12,047 square kilometers; Kihansi Environment Conservation Project; and Lake Tanganyika Conservation Project which is being implemented in Kigoma and Rukwa regions. In the implementation of this programme, 170,000 trees were planted in 2011 so as to reclaim the severely damaged areas, 19 participatory fishing community groups were formed so as to encourage sustainable fishing, four modern fishing grounds were built and community groups that engage in alternative economic activities were set up in six model villages. 176. In addressing the impact of climatic change the Government prepared a National Climatic Change Strategy in 2011. This is a five year strategy which sets out short, medium and long term strategies to withstand climatic change and reduce greenhouse gases. In addition, in 2011, the Government continued to implement two projects to address climatic change. These projects are: Climate adaptation projects in agriculture, water, health, Wildlife, livestock and forestry and land sectors; and a Plan to reduce Carbon emissions by reducing deforestation and forests degradation. 177. In 2011, the Government through the Marine and Coastal Environment Management Project (MACEMP) continued to fund the coastal communities in the implement their projects. In implementing that, a total of 56 projects worth TTshs.780, 295,425.0 were funded in the district councils of Mtwara D.C. (22), Temeke Municipality (17), Lindi Municipality (8), Tanga City (1), Bagamoyo (3), Lindi District (1) and Mtwara Mikindani (4). A total of 1,066 people benefited from these projects, including 511 men and 555 women. Furthermore, analysis of 32 projects from environmental protection and conservation of marine reserve areas was conducted and recommendations for funding to facilitate its implementation have been completed. Good Governance 178. In 2011, the Government through the Commission for Human Rights and Good Governance continued with its efforts to promote, protect and 110

maintain human rights and good governance in the society. Moreover, in 2011, the Commission handled a total of 8,875 old and new people s complaints. Out of those, 1,042 complaints were investigated and completed while 7,833 continued to be investigated compared to 1,003 complaints which were completed in 2010. 179. In 2011, the Court of Appeal received 2,857 cases, out of which 798 cases were completed and 2,059 cases continued to be handled, compared to 2,624 cases received in 2010, whereby 627 cases were completed and 1,997 cases continued to be handled. Moreover the High Court received 9,453 new cases, making the total number of cases to be 20,385 compared to 10,932 cases in 2010. Out of those cases, 9,669 cases were handled and completed in 2011. In addition, 85,323 cases were filed in the District and Resident Magistrate Courts in 2011. Out of those, 67,437 cases were heard and completed compared to 62,154 cases filed in 2010, of which 46,977 cases were heard and finalized. 180. In 2011, the Government continued to implement the Second Phase of the National Anti-Corruption Strategy and Action Plan (NACSAP II). In the course of implementing the strategy,the Prevention and Combating of Corruption Bureau (PCCB) received and investigated 399 corruption cases. Out of those, a total of 103 cases were finalized and suspects were prosecuted. Out of those prosecuted, 48 suspects were convicted and punished and 55 suspects were found not guilty, compared to 870 cases in 2010, whereby 587 cases were prosecuted of which 64 cases were concluded. Gender 181. In 2011, the Government initiated the process of streamlining the Women and Gender Development Policy of 2000 to cope with the existing changes and challenges including changes in economic situations. Moreover, in 2011, the Government conducted gender violence meeting of experts and ministers from the Great Lakes region countries. The meeting drew participants from 11 Great Lakes region countries. The objective of the meeting was to seek means of eradicating gender violence. 182. In promoting gender equality, the Government continued to ensure that involvement of women in decision making is improved. To achieve this, the Government increased women special seats in parliament from 75 seats in the 2005 general elections to 102 seats in 2010. Moreover, the Government promoted women into various levels of decision making, including ministers, regional and district commissioners, permanent secretaries and directors in various institutions. Following these initiatives, the number of women in 111

decision making positions increased from 31 percent in 2009/10 to 36.4 percent in 2010/11. Public Safety 183. In 2011, the public safety was generally peaceful despite the existence of sporadic crime and traffic offences. A total of 63,703 criminal offences were reported in all police stations in 2011 compared to 62,134 offences reported in 2010, equivalent to a decrease by 2.5 percent. This was on account of strategies implemented by the police to combat crime in the country, including the identification of crime susceptible areas, patrolling the areas and conducting regular and sudden raids. 184. In 2011, a total of 24,078 road accidents were reported in police stations compared to 24,296 accidents reported in 2010, equivalent to a decrease of 3.4 percent. In addition, a total of 4,013 people died while 20,917 people were injured in those road accidents compared to 3,687 people who died and 22,064 people who were injured in 2010. People who died on road accidents increased by 8.8 percent while the number of injured people decreased by 5.2 percent. Road accidents decreased in 2011 following Government s efforts in restricting overspeeding for passenger cars, seize cars that use non-standard tyres and the inspection of driving licenses and cars. The main causes of road accidents were: reckless driving; defective vehicles; poor infrastructure; negligence on road safety rules by pedestrians, motorcyclist and bicycles riders; and drunkenness. 185. In 2011, the total number of refugees in the country was 131,243 compared to 109,286 refugees in 2010. A big chunk of those refugees came from Burundi, Democratic Republic of Congo, Somalia and other few from Rwanda, Uganda, Sudan, Ethiopia and Zimbabwe. The breakdown of the number of those refugees and their countries of origin is as follows; Burundi, (67,549 refugees), Democratic Republic of Congo (61,913), Somalia (1,530) and other countries 251 refugees. Furthermore, in 2011, a total of 279 refugees returned to Burundi compared to 1,092 refugees in 2010. 186. In 2011, a total of 963,687 foreigners from different countries entered Tanzania compared to 628,795 foreigners in 2010, equivalent to an increase of 53.3 percent. In addition, 999,090 foreigners returned to their respective countries compared to 775,310 foreigners in 2010, equivalent to an increase of 28.9 percent. In 2011, a total of 17,441 residence permits (visas) were granted to foreigners to undertake different economic activities in the country compared to 19,550 visas granted in 2010, equivalent to a decrease of 10.8 percent. 112

CHAPTER 9 REVIEW OF THE IMPLEMENTATION OF NATIONAL STRATEGY FOR GROWTH AND REDUCTION OF POVERTY Introduction 187. The first phase of the implementation of National Strategy for Growth and Reduction of Poverty (NSGRP) ended in June 2010. During the period of five years of its implementation (2005/06-2009/10), a number of achievements and challenges have been reported through the implementation of MKUKUTA Monitoring System (MMS). These reports includes: MKUKUTA Annual Implementation Report (MAIR), Poverty and Human Development Report (PHDR), Voice of the Peoples Report, and various research and survey reports. The second phase of NSGRP (MKUKUTA-II) was prepared and endorsed by the President of United Republic of Tanzania in October 2010 based on challenges and lessons learned during the implementation of MKUKUTA-I. 188. MKUKUTA-II will be implemented for five years (2010/11-2014/15) and will adopt MKUKUTA-I structure of three clusters including: Growth and Reduction of Income Poverty; Quality of Life and Social-wellbeing; and Good Governance and Accountability. Likewise, various indicators to asses the implementation of MKUKUTA-II are described across these three clusters. The analysis of various MKUKUTA-II indicators during the first year of its implemetation is as follows: Growth and Reduction of Income Poverty 189. Real GDP growth in 2011 was 6.4 percent compared to 7.0 percent recorded in 2010. This growth is below the envisaged growth target band of 8 percent -10 percent as targeted in NSGRP-II. Improved growth of real GDP was attributed to impressive performance in communication (19.0 percent), financial (10.7 percent), construction (9.0 percent), and services (8.1 percent). 190. The agriculture sector which employs more than 74 percent of the population grew by 3.6 percent in 2011 compared to 4.2 percent in 2010. Despite slow growth of agriculture sector, Tanzania continued to be food self sufficient whereby food self sufficient ratio averaged 95 percent. This ratio is obtained by comparing domestic food production and food demand. Food self sufficient ratio in 2010/11 was 112 percent compared to 102 percent in 2009/10. 113

191. GDP per capita rose by 12.8 percent from TZS 770,464.3 in 2010 to TZS 869,436.3 in 2011. Further, indicators trend analysis under this cluster is elaborated in the MKUKUTA Annual Implementation Report (MAIR) for 2010/11. Improving Quality of Life and Social Well-being 192. In 2010/11, the Government in collaboration with other stakeholders continued to implement programs and reforms in the social service sectors with a view of improving quality of life and social well being. The most common applicable indicators under this cluster are those related to education, health, and water. Among the achievements recorded in education include: increased enrollment at the level of pre-primary, secondary, technical and higher education. 193. The Net Enrolment Rate (NER) in Pre-Primary Education reached 42.4 percent in 2011 compared to 37.5 percent in 2010. However, NER for primary education declined slightly from 95.4 percent in 2010 to 94.0 percent in 2011. Pass rate increased from 49.4 percent in 2009 to 53.5 percent in 2010. Net Completion Rate for primary school level increased from 53.0 percent in 2010 to 62.6 percent in 2011, whereby Female Completion Rate increased from 54.3 percent to 65.2 percent. 194. According to Tanzania Demographic Health Survey of (TDHS) 2009/10, maternal and child health services has improved. Maternal mortality rate declined from 578 maternal deaths per 100,000 live births during 2004/05 to 454 per 100,000 live births in 2010. Infant mortality rate was 51 deaths per 1000 live births in 2011 compared to 68 deaths per 1000 live births during 2004/05. The target is to reduce to 38 deaths per 1000 live births by 2015. Under-five mortality rate was 81 deaths per 1000 live births in 2011 compared to 112 deaths per 1000 live births during 2004/05. MKUKUTA-II aims at reducing under-five mortality rate to 54 deaths per 1000 live births by 2015. HIV prevalence rate for the group aged 15-24 reached to 2.4 percent in 2010, whereby MKUKUTA-II target is 1.2 percent by 2015. 195. According to TDHS 2010, the proportion of stunted children under five years decreased from 38 percent during 2004/05 to 35 percent in 2010; proportion of U-5 underweight children decreased from 22 percent during 2004/05 to 21 percent in 2010. 196. The number of households connected to Urban Water Supply Program increased from 234,468 in 2009/10 to 254,236 in 2010/11, equivalent to an 114

increase of 8 percent. Water supply coverage in 19 regional headquarters reached 86 percent in 2011 compared to 84 percent in 2010. The proportion of rural population with access to protected sources of water had increased from 40.4 percent (HBS 2007) to 47.9 percent (TDHS 2009/10). Good Governance and Accountability 197. During the implementation of MKUKUTA-II, the Government continued with efforts of enhancing transparency and accountability in the use of public resources at all levels with special focus on Local Government Authorities. In that period, the Government ensured that Local Government Authorities publicize their revenue, budgets, and actual expenditures with aim of enabling all stakeholders to access correct information on public expenditures for creating transparency. These efforts resulted to a decrease in the number of LGAs that do not post relevant information relating to budgets, plans and audited accounts on notice board from 93.2 percent in 2009/10 to 87 percent in 2010/11. 198. In strengthening the fight against corruption, in 2010/11 the Government investigated a total of 2,258 corruption cases, whereby investigations of 598 cases equivalent to 26 percent were completed. However, due to lack of enough supporting evidences, 80 file cases were sent to the Director of Public Prosecutions and 92 case files were transferred to other Government agencies after it was proved that the submitted evidence were not complying with the Anti-corruption Act 2007. In addition, in 2011 a total of 399 cases of corruption were sent to court and 103 cases were completed, of which 48 defendants were found guilty. 199. In 2010/11, the Government continued with the issuance of rights to every citizen. The Government also recognizes that information of birth registration is important in budgeting and planning for development. In 2011, registration of birth, death and divorce increased. Table 9.1 Registration trend of Birth, Death and Divorce Activi ty Birth Certificate s Death Certificat es Marr iage Divor ce 2008/ 09 938,775 105,482 73 15,34 5 2009/ 469,274 47,118 85 17,10 10 6 2010/ 625,670 73,810 69 23,10 11 8 Source: Ministry of Finance Trustees hip Will (law) Legaci es 247 - - 39 277 83 13 46 203 36 14 33 Adopti ons 115

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CHAPTER 10 THE FIVE YEAR DEVELOPMENT PLAN Introduction 200. Since independence 1961 until the early 1980s, Tanzania used to have long and medium-term plans as a roadmap to realise national development goals. However, due to repeated global economic crises and limited capacity to manage those crises, the country had to rely on short-term plans of one to three years duration to deal with those crises. In pursuing short-term plans, it was clear that long term aspirations and targets were not acheived. In this context, the Government in 2008 reverted to the medium and long term plans as a strategy to realise Tanzania Development Vision 2025. In 2011, the First Five Year Development Plan (2011/12-2015/16) was launched to drive implementation of the National Development Vision for the remaining period up to 2025. This is the first Plan, and the expectation is to have other two development plans of 2016/17-2020/21 and 2021/22-2025/26. The meaning of Five Year Development Plan 201. The Five Year Development Plan (FYDP) is a roadmap that guides the country socio-economic development in the period of five year to come. During this period, the Government describes its intention to measures that will be undertaken to ease economic constraints faced various socio-economic sectors in order to raise people s income and bring up sustainable development. In this context, the FYDP 2011/12-2015/16 is the formal implementation tool of the Country's development agenda, articulated in the Tanzania Development Vision 2025, in particular taking Tanzania to middle income country status and eradicating poverty. The FYDP manifested itself in unleashing Tanzania s latent growth potentials in order to use country natural resources such as minerals and geographical advantages such as natural harbours, gateway to neighboring countries to accelerate economic growth. Tanzania s Historical Perspective on Medium and Long term Plans 202. The The FYDP 2011/12-2015/16 is not the first medium term plan to be established in Tanzania since history shows that the country had similar plans soon after independence. During the early years of independence, Tanzania development agenda focused on economic growth and poverty reduction. The primary objective was to ensure that majority of Tanzanians benefit from such development. In an effort to achieve this goal, Tanzania Mainland has had a tradition of formulating and implementing medium and long term development plans. The first plan was a Three Year Development 117

Plan (1961 1964), whose objective was to fight against the three development enemies namely illiteracy, poverty and diseases. 203. In 1964, based on the experience of implementing the Three Year Development Plan, and the need to entrench people-centred development, the Government adopted the first 15 years Long Term Perspective Development Plan (1964-1980). This Plan was to be executed in three consecutive Five Year Development Plans, starting with the 1964-1969 Plan. This Plan was revised in 1967 so as to be consistent with the Arusha Declaration Policy. The Arusha Declaration articulated the ideological and developmental vision for the country and informed the subsequent Plans. The Second Five Year Plan was implemented from 1969 to 1974, and the Third Plan (1975 to 1980) was not implemented due to the economic crisis (drought, oil price shocks and war against Idd Amin of Uganda). 204. In 1981, the Government prepared the second Long Term Perspective Plan (1981-2000) to be executed in four successive Five Year Development Plans. However, the Plan was not implemented effectively due to economic crisis in spite of the Government s desire to implement it. Thus, the Government resorted to a short-term National Economic Survival Programme (NESP - 1981/82) as an emergency programme, aimed at addressing commodity shortages in the market. As the crisis intensified due to further oil price shocks, the consequences of the war with Idd Amin of Uganda and prolonged adverse weather conditions, the Government abandoned altogether the envisaged five year plans to implement Long Term Plan, and opted for three consecutive three-year economic stabilisation programmes from 1982/83 to 1991/92. The first was Structural Adjustment Programme (SAP 1982-1985), which was intended to address the economic crisis, and was followed by two Economic Recovery Programmes (ERP I: 1986-1989; and ERP II: 1989-1992) with support from development partners. 205. In general, the paradigm shift from five year plan to needs-based three year programmes led to a diversion from the well-articulated and coherent plans commensurate with the national development agenda. Instead, the planning process became ad-hoc and frequently interrupted in order to revert to crisis management, thus losing focus on strategic investments that is in line with long-term growth. The National Development Vision 2025 206. Based on the fact that, implementation of economic stabilization and recovery programmes did not achieve the intended socio-economic results, in 1999, the Government launched the National Development Vision 2025, with 118

the aim of transforming Tanzania from low income to middle income country. The aspiration of Vision 2025 is characterized by high levels of industrialization, competitiveness, quality livelihood, good governance and rule of law; and having in place an educated and pro-learning society. 207. Vision 2025 was designed to be implemented through a series of five year development plans. However, this was not possible since at the adoption of the Vision 2025, Tanzania had embarked on far-reaching policy and institutional reforms, under the auspice of HIPC. Tanzania started to implement Poverty Reduction Strategies (PRS 2000-2003), which in the absence of Five Year Development Plans, became the framework to implement the Vision. This three year strategy was later on improved and changed to five year National Strategy for Growth and Reduction of Poverty, commonly known as MKUKUTA I (2005-2010) and MKUKUTA II (2010-2015). The First Five Year Development Plan -2011/12-2015/16 208. The FYDP 2011/12-2015/16 is reverting back to the practice of defining a roadmap toward development aspirations in the context of five year horizon. This Five Year Plan implies transiting from a needs-based planning framework to opportunity-based planning. In the former, the nation s ambition to develop is solely limited to available resources, while in the case of the latter, resources are merely a means to realise the country s aspirations. This Plan is the first in a series of three Five Year Development Plans for the implementation of Tanzania Development Vision 2025 based on new planning framework. Process of Preparing FYDP I 209. The process of developing the FYDP I was informed by a number of processes, frameworks and initiatives already in place. Some of the initiatives/frameworks referred to include the review of Tanzania Development Vision (TDV) 2025, MKUKUTA I&II, Sector Strategic Plans, Medium Term Expenditure Frameworks (MTEFs), Priority Action Programs (PAPs) for Ministries, Departments and Agencies (MDAs), the Millennium Development Goals (MDGs), and other national and international frameworks/initiatives which Tanzania has ratified. Thus, the FYDP I reflects priorities already agreed in these processes with modifications to enhance focus on the realisation of the TDV 2025 targets. In addition, the draft Medium Term Public Investment Plan (MPIP), which was prepared under coordination of the Ministry of Finance, formed the basis and strategic direction of the Plan. This plan also took into account directives of the 119

President delivered during his inaugural speech to the 10 th Parliament of the United Republic of Tanzania, and various Government policy directives. Moreover, during the preparatory stage, several stakeholders including MDAs, CSOs, DPs, and private sector at large were involved in one way or another. The Overall Goal of FYDP (2011/12-2015/16) 210. The overall goal of FYDPI is to unleash the country s resource potentials in order to fast-track the provision of the basic conditions for broadbased and pro-poor growth. The targeted average GDP growth rate for the FYDP I period is 8.0 percent per annum, building up from a 7.0 percent growth in 2010, and thereafter consistently maintaining growth rate of at least 10 percent per annum from 2016 until 2025. The targeted growth has been calculated by taking into account Tanzania s growth record over the past fifteen years, and experiences of countries that managed to reach middleincome status in the last 30 years. Unleashing Growth 211. To achieve the desired growth, five crucial elements will be needed: (i) large investments in energy and transport infrastructure, (ii) strategic investments to facilitate expansion of food and cash crops production and foster industrial development; (iii) improving human resources development and skills, (iv) improving the business environment, and (v) institutional reforms for an effective implementation, monitoring and evaluation of the Plan. This will also require sustaining the following sectoral transitions: agriculture to increase its average annual growth rate from the current level of 4.4 percent to 6.0 percent, manufacturing from 8.0 percent to 12.1 percent, the overall industrial sector from 8.6 percent to 9.4 percent and services from 7.5 percent to 7.8 percent. In order to strengthen economic growth the country will have to create a strong competitive base to ensure efficient use of its comparative advantages such as geographical location, rich natural resources, macro-economic stability, peace and political stability. However, it will also be important to closely monitor the developments in terms of income inequality to ensure that growth is inclusive. Salient Features of FYDP I 212. The first FYDP streamlines the various national development initiatives into a unified and coherent framework mainly to provide guidance in implementation and to give the Government opportunities and formal ways of evaluating the national development process. The FYDP I differs from other policy initiatives especially in the following four major areas: 120

i. A shift from short term needs-based planning, which is based on available resources, to embrace opportunity-based planning, which requires enterprising beyond the resource constraints; ii. A shift from prioritization based on sectors to prioritization by intervention with strong emphasis on identifying detailed strategic programmes and activities; iii. Strong emphasis on growth, while sustaining gains in social service delivery as well as gradual improvement of human resources particularly skills development to meet dynamic needs of the labour markets; and iv. Scaling-up the role and participation of the private sector in economic growth, by improving the business climate to efficiently use the factors of production, investing in people and infrastructure development, and sustaining achievements in socio-economic progress. Strategic Interventions 213. The strategic interventions in the implementation of the plan are aimed at identifying existing strategic opportunities; priority areas, key issues that need consideration during implementation; possible challenges that may occur in the course of implementation and identification of current binding constraints in the economy. Basically, Tanzania has immense resources for development compared to neighboring countries and its land is more arable and fertile. There are 44 million hectares of arable land, across varying climatic zones, of which only 24 percent is being utilized for agriculture. In addition, Tanzania has abundant power generation resources particularly for electricity generation using natural gas with 43 billion m³ of proven reserves, 1,200 million tons of coal reserves, uranium, geothermal, hydropower potential of 4.7 GW, wind, solar, and other renewable resources. 214. Tanzania is also endowed with high quality limestone for cement production and phosphate deposits that can, in combination with natural gas, provide the basis for the production of fertilizers. Other natural resources include gold, diamonds, tanzanite, ruby, nickel, tin, soda ash and iron ore. In addition. Tanzania has tourist attractions including 15 world famous national parks such as Ngorongoro Conservation Area, Serengeti, Mt. Kilimanjaro; 33 game reserves, 43 game controlled areas and abundance of cultural heritage tourist attractions. Further, there are 35.3 million hectares of forest and woodlands as well as 13.5 million hectares of national forest reserves and local government forest reserves. These are some of the opportunities that 121

Tanzania is endowed with, and if appropriate strategic interventions are put in place to harness these potentials, Tanzania can achieve TDV targets before 2025. 215. Despite of the opportunities identified above, Tanzania is still faced with basic constraints that when addressed appropriately, the economy will grow rapidly and attract more investment especially in the private sector and eventually expand more employment opportunities and reduce poverty. Constraints facing Tanzania economy are many but the recent study has revealed the following major constraints to growth: i. Unreliable and inadequate supply of electricity; ii. iii. iv. Poor infrastructure: especially transport network, and in particular rural roads, railways and ports; Inadequate supply of skilled labour; Limited access to secure land ownership rights; v. Implications of climate change amidst scarce irrigation facilities; vi. vii. Limited domestic value addition of primary products; and Limited access to finance, especially for SMEs and in the agriculture sector. 216. To address the above binding constraints, it calls for the need to consider basic prerequisites that will accelerate the process of sustainable development in various sectors. As such, initial stages of the renewed efforts to unleash Tanzania s growth potential require making some hard choices on how, where and when available resources should be invested. Consistent with this, the need to create enabling environment for sustained macro-economic stability and growth is imperative. Similarly, existence of conducive business environment, ensuring accessibility of land for productive and settlement purposes, and enhancing the prevailing efforts to institute good governance underpinned by the rule of law are also basic prerequisites to achieving the targets of the Plan. Priority Areas of the FYDP I 217. Based on the theme of this Plan, five areas were identified as priority.these are: (i) Infrastructure: especially energy, transportation ( ports, railways, roads, and air), water and sanitation and ICT; 122

218. The strategic interventions in this area are categorized into two groups: that is hard and soft infrastructures. Strategic interventions in the hard infrastructure focus on: ensuring availability of reliable electricity; developing a transport sector which includes roads, airports, railways and ports whereby the main objectives is to promote Tanzania as the transport and logistical hub for East and Central African countries; and strengthening water and sanitation infrastructure. On soft infrastructure, strategic intervention mainly focuses on promoting ICT. (ii) Manufacturing: particularly industries that use locally available raw materials such as textiles, fertilisers, cement, steel, coal, and iron ore parallel with developing SEZs and EPZs through PPP arrangement; 219. The underpinning goal for manufacturing sector is to promote transformation in the production of export goods commensurate with the market demand. In view of this, emphasis will be in building a formidable foundation for self propelling industrialisation and export-led growth. Strategic intervention will focus on developing the sector to match with development in the agriculture sector by putting in place strategies for promoting industries particularly agro-processing industries. In addition, the intervention will ensure Tanzania build-up its industrial base, particularly in basic industries (fertilisers, cement, steel, textiles, sugar, paper and petrochemicals) utilising locally available raw materials (coal, iron, natural gas, soda ash, limestone, phosphates, wood, cotton). Similarly, emphasis in the manufacturing sector will be on improving the business environment, especially for labour intensive SMEs, setting up SEZs and EPZs in urban and rural areas, to ensure equitable growth; and promoting PPPs. (iii)agriculture, to have green revolution in order to increase food selfsufficiency and export the surplus, expansion of irrigation agriculture especially in special agricultural corridors, and promote cultivation of high-value crops including vegetables, flowers, spices, and grapes. 220. In the next five year, strategic intervention in agriculture will focus on: expanding and improving irrigation infrastructure; easing availability and enhancing utilisation of modern agricultural inputs and mechanisation; improving and strengthening availability of scientific production methodologies through research, training, and provision of extension services; 123

improving market access; promoting agro-processing and value addition activities; and promoting climate-compatible agriculture. (iv) Human Resource Development, focus on education and skills especially sciences, technology and innovation. Human resources development includes issues of development of labour force skills, education, health and nutrition. 221. Education and Skills Development: Strategic intervention will focus on increasing the quality education at all levels, specifically facilitating accessibility of education for the poor. In addition, the Plan will focus more on re-orient human capital development towards achieving the development goals in the key productive sectors (agriculture, mining, and manufacturing) and economic infrastructure (energy, ICT, transport and tourism) 222. Health: The FYDP will emphasize on interventions to address the challenges facing the health sector. This will imply: increasing accessibility to health services, based on equity and gender-balanced needs; improving the quality of health services; strengthening management of health service policies and regulations; strengthening human resources development for health and social welfare. (v) Supporting Services: especially Tourism, Trade and Financial services. 223. The Plan will put in place measures to address challenges encountered in the supporting services in tourism, trade and financial. Priority areas will include: improving tourism services and revenue derived from it; enhancing international trade, economic cooperation and regional integration; and strengthening financial intermediation and financial stability. 224. In the next five years the Plan has identified core investment areas emanating from the above priorities. Those core investment areas are as follows: i. Electricity generation to produce 2,780 MW; ii. iii. iv. Expansion of the capacity of the Dar es Salaam port; Rehabilitation of the central railway line and beef-up of the rolling stock (engine and wargons); Construction of regional and district roads in the SAGCOT; v. Country-wide coverage of the ICT backbone infrastructure; vi. Investment in irrigation infrastructure in the SAGCOT; 124

vii. viii. ix. Training students in the fields of science, engineering and education in general; Development of SEZs, especially for electronic goods, farm machinery, and agro and mineral-processing industries. Large scale fertiliser production; x. Coal and steel industry. Financing the Five Year Development Plan 225. For any plan to be implemented effectively, mobilisation of financial resources is paramount. For a considerable period of time, the Government has relied on traditional sources of revenue to finance its recurrent and public investment expenditures. Those sources include: domestic tax revenue, non tax revenue (domestic borrowing, dividends, fees, and licenses) and grants and concessional loans from both bilateral and multilateral sources. In addition, for the plan to be effective, the Government need to allocate at least 35 percent of domestic revenue to cater for development expenditure. Notwithstanding the traditional sources of finance, the FYDP I propose innovative sources of financing the Plan. Those include; Infrastructure and Savings Bonds: Diaspora Bonds; Domestic Bonds; Foreign Market Bonds; Pension and Social Security Funds; Strategic Partners Grants and Donations; Government Guarantee through PPP arrangements; Regional Economic Arrangements and South- South Cooperation; Taxation on financial transactions, Carbon Trading and Carbon Tax; Voluntary Based Initiatives; and Super Profit Tax on Minerals. 226. Consistent with the core areas of investment outlined in the Plan, the total cost of implementing the Plan is estimated at TShs. 43.7 trillion over the next five years. Out of this, TShs. 8.6 trillion will have to be mobilized by the Government and the remaining amount will be sourced from the private sector, partnerships, development partners, and other stakeholders. Table 10.1 summarises sectoral capital investments requirements. 125

Table 10.1: Financing Requirements for Priority Areas, 2011/2012 2015/16 (Millions of TShs.) Sector Total Costs 2011/12 2012/13 2013/14 2014/15 2015/16 Agriculture 4,361,576 922,685 812,378 775,589 723,757 727,164 Crops 2,630,654 457,733 397,292 428,106 455,278 492,240 Forestry 71,563 29,859 8,580 10,607 11,323 11,196 Fisheries 326,180 90,011 76,670 61,766 52,831 44,902 Livestock 1,333,179 345,082 329,836 275,110 204,325 178,826 Manufacturing 1,513,880 199,300 180,410 339,430 519,620 275,120 Mining 1,383,014 207,856 345,694 345,614 345,604 138,247 Transport 11,293,947 2,283,02 2,759,728 2,228,08 2,199,87 1,823,23 6 5 8 5 Roads 7,106,765 1,781,92 2,137,284 1,568,40 993,777 625,373 4 8 Railway 2,097,359 252,535 272,065 280,385 644,615 647,760 Marine 995,400 119,212 129,124 157,262 237,984 351,818 Airways 1,094,423 129,355 221,255 222,030 323,502 198,284 Water 2,326,256 392,985 540,090 529,032 457,898 406,251 Land 142,645 42,139 34,239 23,139 22,139 20,989 Energy 14,619,211 2,474,12 5,010,213 3,914,55 1,926,84 1,293,46 7 8 6 7 ICT 1,606,450 408,010 453,010 298,510 176,510 270,410 Education 1,814,629 65,076 354,546 469,054 484,101 441,853 Health 2,765,911 933,033 721,435 449,005 461,881 200,557 Governance 1,546,877 411,047 387,405 240,072 185,310 323,043 Tour., Trade & Fin. Serv. 1,130,853 169,428 110,464 105,999 264,322 80,639 Tourism 185,818 18,250 53,696 43,968 36,918 32,985 Trade 89,370 17,568 17,914 17,916 18,010 17,962 Fin. Serv. 855,665 133,610 38,854 44,115 209,394 29,692 Employment 7,200 1,710 1,230 1,400 1,400 1,460 Total 43,656,784 8,376,81 2 11,771,988 9,775,372 7,659,872 6,072,743 Source: President s Office, Planning Commission Implementation Framework 227. FYDPs will be implemented through approved annual plans with clearly stated programmes and projects. POPC will develop comprehensive criteria for selecting projects for the Annual Plan. MDAs, RSs and LGAs will in turn submit their Annual Plan proposals to POPC. Prior to submission to 126

POPC, these plans will have to be endorsed by relevant committees in the MDAs, RSs and LGAs. All strategic national investment projects will have to be subjected to POPC and MoF scrutiny and endorsement to qualify for incorporation into the annual plans and allocated financial resources. Annual Plan Execution and Coordination 228. The Plan execution and coordination will remain the responsibility of MDAs, RSs and LGAs. The POPC will take the lead role in the coordination, monitoring and evaluation at national level, specifically for strategic national investment projects/programmes. The specific roles and the responsibilities of the lead actors involved in the execution process are described below: Role of POPC 229. Effective monitoring of implementation of the Plan at national level will be spearheaded by the POPC. In addition, the Plan and Budget Guidelines (PBG) will be issued jointly by POPC and MoF. All MDAs, RSs and LGAs will have to adhere strictly to PBG in the preparation of their plans and budget. POPC will be responsible for the preparation of mid-year implementation report at national level to inform the status of implementation. The Planning Commission, apart from providing strategic thinking and advice to the Government on economic management, and preparation and implementation of plans, will advise on the mobilization of financial and human resources for the implementation of development projects. Role of the Ministry of Finance 230. The main preoccupation of MoF will remain: mobilization of resources to finance Government budget; coordination of inter-governmental and international financial and fiscal relations; collaborate with POPC to establish a joint committee to ensure that the annual Plans resonate well with the budget frame; issue the PBG to be observed by all MDAs and Local Authorities; and collaborate with POPC in identifying alternative sources of financing development programmes. Role of MDAs and LGAs 231. The implementation of FYDP s priorities, programmes and projects will be the responsibility of MDAs/RSs/LGAs as well as the Non-State Actors. MDAs/RSs/LGAs will initiate specific projects and programmes to ensure achievement of the envisaged results. Programmes and projects selection by the MDAs/RSs/LGAs will be required to provide implementation report of the Plan to facilitate POPC in its M&E undertakings. LGAs and 127

sectoral ministries will be responsible to ensure that priorities identified by communities and sectors respectively are in line with national priorities. Concluding Remarks 232. The FYDP I is the first in a series of three Five Year Development Plans to implement the Tanzania development Vision 2025. This Plan will be implemented under the theme of unleashing Tanzania s growth potentials in order to accelerate economic growth. The FYDP I will be followed by two five years consecutive plans ie 2016/17-2020/21, and 2021/22-2025/26. These Plans aim at transforming the economy from an agriculture-based to an industry-based economy which is the main characteristics of middle-income countries. Achievements in this Plan will depend much on collective responsibilities between the Government and citizens, private sector, development partners, non-governmental organizations in executing the Plan through interventions identified in the priority areas. 128

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CHAPTER 11 AGRICULTURE AND COOPERATIVES Growth Rate 233. In 2011, agricultural activities which include: crops, livestock; and forestry and hunting grew by 3.6 percent compared to 4.2 percent in 2010. Also, crops; livestock; and forestry and hunting sub activities grew by 3.5, 3.9 and 3.5 percent in 2011 compared to 4.4, 3.4 and 4.1 percent in 2010 respectively. On the other hand, the share of agriculture activities to GDP was 23.7 percent in 2011 compared to 24.1 percent in 2010. The share of crops and livestock sub activities to the GDP decreased from 17.8 percent and 3.8 percent in 2010 to 17.4 and 3.7 percent in 2011 respectively. However, the share of forestry and hunting to the GDP increased to 2.5 percent in 2011 from 2.4 percent in 2010. Food Crops Production 234. In 2011, production of food crops mainly wheat, cassava, beans, bananas and potatoes increased compared 2010 due to favourable weather condition and even rainfall distribution. Production of wheat increased from 62,000 in 2010 to 113,000 tons in 2011, equivalent to 82.3 percent increase. In addition, production of cassava increased to 1,549,000 tons 2011 from 1,464,000 in 2010, equivalent to an increase of 5.8 percent. Production of beans increased from 1,254,000 to 1,632,000, equivalent to 30.1 percent increase. Production of bananas increased from 975,000 tons to 1,048,000, equivalent to an increase of 7.5 percent. Similarly, production of sweet potatoes increased from 1,231,000 tons to 1,710,000 tons, equivalent to 38.9 percent increase. However, production of maize, rice and sorghum decreased in 2011 compared to 2010. Production of maize decreased from 4,475,416 tons to 4,340,823 tons, equivalent to a decrease of 3.0 percent. Production of rice decreased by 14.1 percent from 1,700,000 tons to 1,461,000 tons. Production of millet/sorghum decreased from 1,160,000 tons to 1,119,000 tons, equivalent to 3.6 percent decrease. The food crops production trend is as shown in the table below: 130

Table No. 11.1: Production of Food Crops 2008 2011 (Tons 000) Crop 2008 2009 2010r 2011p Change (%) 2009/10 Maize 3,555 3,324 4,475 4,341-3.0% Rice 875 886 1,700 1,461-14.1% Wheat flour 92 94 62 113 82.3% Millet/Sorghum 1,064 204 1,161 1,119-3.6% Cassava 1,797 1,759 1,464 1,549 5.8% Beans 1,125 1,184 1,254 1,632 30.1% Banana 982 991 975 1,048 7.5% Sweet potatoes 1,379 1,381 1,231 1,710 38.9% Source: Ministry of Agriculture, Food and Cooperatives. r: Revised data p: Temporary data Cash crops production 235. In 2011, production of cash crops mainly cotton, sisal, cashewnust, tea and sugar increased compared to 2010. The increase in production was a result of several factors including: favourable weather condition, the use of improved seedlings, pesticides and sprayers. Other main factors included: renewed of abandoned tea farms in Rungwe and Korogwe districts, extension of sugar productions machines, commensed sisal harvesting by peasants, and the timely use of pesticides for controlling cashewnut bugs. 236. On the other hand, production of coffee, pyrethrum and tobacco decreased in 2011 compared to 2010. Production of coffee decreased from 60,575 tons in 2010 to 32,304 tons, equivalent to 88 percent decrease. This was a result of insufficient short rains, variation in rain seasons in Kagera and Mbeya regions and poor use of agricultural inputs. Production of pyrethrum decreased by 9.6 percent from 5,000 tons in 2010 to 4,560 tons in 2011. This decrease was a result of shortage in supply of improved seeds/seedlings to farmers. The cash crops production trend is as shown in the table below: 131

Table No. 11.2: Production of Cash Crops 2008 2011 (Tons 000) Change (%) Crop 2008 2009 2010 2011 2010/11 Cotton 200,662 267,004 163,644 250,000 35 Tobacco 55,356 60,900 130,000 123,904 (4.9) Sugar 276,605 279,850 317,000 304,135 13.37 Tea 34,770 33,160 55,699.13 32,812 3.55 Pyrethrum 1,500 3,320 5,000 4,560 (9.64) Coffee 58,052 40,000 60,575 32,304 (88) Sisal 33,000 26,363 35,000 33,406 27.88 Cashewnuts 99,107 74,169 121,070 160,000 24.33 Source: Ministry of Agriculture, Food and Cooperatives. Production of Oil seeds 237. In 2011, production of oil seeds which include sunflower, groundnuts, and simsim increased compared to 2010. The increase was due to favourable weather condition in growing crops areas and continued expansion of simsim market. However, production of soya decreased by 42.0 percent due to low response of farmers due to lack of reliable market. The production of Oil seed is as shown in the table below. Table No. 11.3: Production of Oil Seeds 2008 2011 (Tons 000) Change Crop 2008 2009 2010 2011 (%) 2010/11 Sunflower 418,317 466,831 348,877 786,902 126 Groundnuts 396,769 385,480 320,582 651,397 103 Simsim 46,767 115,295 65,557 357,162 445 Soya 3,450 3,900 4,300 2,500-42 Source: Ministry of Agriculture, Food and Cooperatives. Investment in Agricultural Economic Activities 238. In 2011, a total of 3,183 new tractors were imported compared to 1,586 tractors imported in 2010. The increase in number of imported tractors was a result of increased demand for tractors following increased opportunity of loans for buying tractors from various institutions e.g Agriculture Input Trust Fund and continued importation of tractors through SUMA JKT project. In 2011, SUMA JKT alone imported 1,190 tractors. However, a total number of power tillers imported in 2011 were 699 compared to 2,553 power tillers imported in 2010. 132

Irrigation Farming 239. In 2011, a feasibility study and design were conducted in 54,000 hectares for irrigation compared to 90,000 hectares in 2010. This marks a total area of 419,744 hectares compared to 365,744 hectares in 2010, equivalent to 14.8 percent increase. A total of 345,690 hectares for irrigation were developed by constructing irrigation infrastructures compared to 331,490 hectares developed in 2010, equivalent to 4.3 percent increase. In addition, infrastructures for 8 irrigation dams were rehabilitated in 2011. 240. In 2011, the number of households benefited from improved irrigation infrastructures increased to 440,892 from 351,720 households in 2010, equivalent to 25.4 percent increase. The number of established and registered groups for sustaining irrigation schemes was 250 in 2011 compared to 210 groups in 2010, equivalent to 19.0 percent increase. A total of 350 farmers and 96 agiculture officers in various cadres were trained on appropriate irrigation technology compared to 510 farmers and 30 agriculture offiers trained in 2010. Training and Extension Services 241. In 2011, a total of 2,793 new extension officers were recruited by district councils compared to 1,738 officers making a total number of extension officers recruited to be 7,974 compared to 5,181 officers recruited in 2010. Out of these, 1,927 extension officers were diploma holders and the remaining hold certificates. 242. In 2011, a total of 33 extension officers for demonstration farms from 10 councils of Mara, Mwanza, Kigoma, Kagera, Tabora and Shinyanga regions attended a course on Training of Trainers. Moreover, the Government through Agriculture Program on Enhancing Productivity and Production trained 25 extension officers for rice farming from Igunga, Nzega, Bahi, Bagamoyo, Rufiji, Kilombero, Mvomero, Kilosa, Kahama, Shinyanga, Sengerema, Misungwi, Kwimba, Bukombe, Maswa, Kibondo, Magu, Mbarali, Kyela and Iringa councils., Further, 73 Ward Agriculture Resource Centre WARCs were constructed and 64 rehabilitated in 2011. A total of 23,200 farmers were trained through farmer to farmer extension who are continuing to train other farmers on good farming methods. Also, the Government through District Agriculture Development Programs (DADPs) continued to improve extension services where 1,612 motorcycles and 3,389 bicycles were bought; 78 new houses were contructed and 156 rehabilited. Research Activities 243. In 2011, seven new types of seeds for food crops were introduced and approved for use. The new seeds were for three food crops namely Sorghum 133

(two types), beans (one type) and cassava (four types). Also, in 2011 the production of breed seeds for production of primary seeds continued, where 12,361 kilograms of cereals and beans were produced as shown in the table below: Table No. 11.4: Production of Breed seeds (Tons) Breed seeds 2010 2011 Cereals 13.13 6.53 Beans 11.53 5.84 Oil 4.3 - Cotton 1.48 - *Cassava (stalk) 27.6 (million) - Source: Ministry of Agriculture, Food and Cooperative. *Stalk/stern -Data not availed Agriculture Input Trust Fund 244. In 2011, the Government through the Agriculture Input Trust Fund issued 6 loans for power tillers compared to 30 loans issued in 2010, equivalent to 80 percent decrease. Likewise, 93 loans for tractors were issued in 2011compared to 89 loans in 2010, equivalent to 4.5 percent increase. Also, in 2011 the Government issued 32 loans for farm and livestock inputs compared to 46 loans issued in 2010. This decrease was due to budget constraint that led to failure to meet the demands of lodged loans applications. The Government also issued a single loan for irrigation equipment and another loan for value addition in the farm products. Subsidies Provision for Farming Inputs 245. In 2011, a total of 5,340,000 vouchers were distributed basing on national, regional, district and village needs. Subsidies were continued to be provided to 20 regions as in 2010. Households benefited from inputs subsidies increased from 1,500,000 households in 2010 to 2,000,000 households in 2011. This was a result of increase in farm inputs shops at village level following motivation of agents for farm inputs due to the introduction of voucher system. Likewise, by February 2011, provision of improved seeds was estimated at 27,772.6 tons equivalent to 92.6 percent of annual requirement of 30,000 tons. Also, by February 2011, the availability of fertilizers was 298,453 tons equivalent to 62 percent of the annual requirement of 485,000 tons. The decrease in availability of fertilizers was due to high importation costs, as about 90 percent of the fertilizers in the country are imported. Following the voucher system, productivity in maize production increased. Provision of inputs subsidies is as shown in the table below: 134

Table No. 11.5: Provision of Inputs Subsidies Type of Inputs 2007/08 2008/09 2009/10 2010/11 Fertilizer(MT) 89,820 141,050 150,055 200,000 Improved Seed (MT) 1,071 7,180 15,525.20 21,150 Cashwnuts Pesticides Litres 50,000 and Tons 1,100 Litres 386,649 and Tons 154 Tons 64,000 Tons 64,000 Cotton Pesticides (Acre-pack) 1,200,000 1,200,000 4,653,900 4,653,900 Coffee Seedling 5,000,000 10,000,000 10,400,000 8,226,091 Tea Seedlings 5,000,000 8,112,515 7,700,000 11,481,528 Improved Cotton seed (MT) -Tons 7,180 15,370 Source: Ministry of Agriculture, Food and Cooperative. LIVESTOCK Livestock Production and its Products 246. In 2011, production of beef, mutton, lamb, pork and chicken increased to 503,496 tons from 449,673 tons produced in 2010, equivalent to 10.7 percent increase. The increase was attributed to the increased demand for meat and its products. 247. In 2011, the National Ranch Company sold 8,722 beef cattle worth 2.6 bilion shillings compared to 7,597 cattle worth 2.4 bilion shillings in 2010. The increase was attributed to establishment of livestock Fattening Program. 248. In 2011, milk production in the country increased by 5.2 percent to 1.74 billion litrers from 1.65 billion litres in 2010. Out those, 608 million litres were from high breed cows and 1.13 bilion litres were from tradition cows. Further, milk processing increased to 112,400 litres per day in 2011 compared to 105,380 litres processed per day in 2010, equivalent to 6.2 percent increase. In 2011, a total of 150,000 artificial inseminated seeds were produced compared to 110,000 seeds produced in 2010, equivalent to 36 percent increase. Also, a number of inseminated cows increased from 73,900 cows in 2010 to 76,800 cows in 2011, equivalent to 4 percent increase. 249. Production of eggs increased from 2.9 bilion eggs in 2010 to 3.34 billion eggs in 2011, equivalent to an increase of 15 percent. In addition, a total of 38.4 million broilers and eggs chicks were produced in the country in 2011 compared to 35.6 chicks produced in 2010, equivalent to 7.9 percent increase. 135

250. In 2011, a total of 48.0 tons of hey seeds were produced in Government farms compared to 45.0 tons produced in 2010, equivalent to 6.7 percent increase. Further, the production of hey from Government farms increased by 15.5 percent to 350,000 pallets compared to 303,000 pallets produced in 2010. Furthermore, a total of 420,000 hey pallets were produced by private sector compared to 418,831 pallets produced in 2010. In 2011, 852,000 tons of different types of animal feeds were produced compared to 801,727 tons produced in 2010, equivalent to 6 percent increase. Product Meat: Beef Mutton/Lamb Pork Chicken Table No. 11.6: Production of Livestock Products Production /Unit Tons Tons Tons Tons 2007 2008 2009 2010 2011 180,629 80,936 31,721 77,280 218,976 81,173 33,307 77,250 225,178 82,884 36,000 78,168 243,943 86,634 38,180 80,916 262,606 103,709 43,647 93,534 % Change 7.7 19.7 14.3 15.6 Total 370,566 410,706 422,230 449,673 503,496 12.0 Milk: Tradition cows High breed cows Litres(000) Litres(000) 945,524 475,681 980,000 520,000 1,012,436 591,690 997,261 652,596 1,135,422 608,800 13.9-6.7 Total 1,421,205 1,500,000 1,604,126 1,649,857 1,738,683 5.4 Eggs Total 2,230,900 2,690,000 2,806,350 2,917,875 3,339,566 14.5 Production of Tons - - 801,827 720,711 852,000 18.2 Livestock feeds Source: Ministry of Livestock Development and Fisheries 251. In 2011, the number of livestock was estimated at 21.3 milion cows, 15.2 million goats, and 6.4 milioni sheep compared to 19.2 million cows, 3.6 million sheep and 13.7 million goats in 2010. Also, the number of pigs was 1.9 million and 58 million chicken as it was in 2010. The average annual consumption of livestock products per person is 12 kilograms of meet, 44 litres of milk and 75 eggs. Nevertheles, this consumption is below the World Food Organisation standard of average annual consumption of 50 kilograms of meet, 200 litres of milk and 300 eggs. Trading of Livestock and its Products 252. In 2011, the number of livestock sold in the auction increased to 925,097 cows, 704,987 goats and 168,313 sheep worth 423.9 billion shillings compared to 857,208 cows, 682,992 goats and 122,035 sheep worth 382.4 billion shillings in 2010. The increase was attributed to improved auction services, increase in demand for beef in urban and specialised markets like supermarkets, hotels and mines cites. 136

253. In 2011, a total of 1,041 cattle and 657 worth 9.65 billion shillings were exported to Comoro, Rwanda and Kenya compared to 2,970 cattle and 302 goats worth 2.89 billion shillings exported in 2010. Also, a total of 20.3 tons of beef, 286 tons of mutton and 97 tons of lamb valued at 1.6 billion shillings were exported to Oman and Kuwait compared to 36.9 tons of beef, 122 tons of mutton and 34.6 tons of lamb exported to Comoro, Burundi, Oman, Kuwait, United Arab Emirates, Muscat, Malawi, Kenya and Democratic Republic of Congo in 2010. 254. In 2011, a total of 2.5 million pieces of cattle hides, 2.4 million pieces of goats hides and 200,000 pieces sheep hides were collected. Out of those, 1,719,506 pieces of cattle hides, 2,111,176 pieces of goats hides and 83,600 pieces of lamb hides worth 17.4 billion shillings were exported compared to 739,315 pieces of cattle hides, 1,900,000 pieces of goats hides and 176,400 pieces of lamb hides worth 8.2 billion shillings exported in 2010. 255. In 2011, a number of processed hides increased to 782,447 pieces of cattle hides, 1,535,562 pieces of goats hides and 61,200 pieces of lamb hides worth 10.6 billion shillings compared to 275,000 pieces of cattle hides, 1,440,000 pieces of goats hides worth 6.2 billion shillings in 2010. 137

Table No. 11.7: COLLECTION AND EXPORT OF HIDES A. HIDES COLLECTION (pieces) Year Cattle Goat Hides Sheep Hides ValueTshs. 000 Hides 2002 1,400,000 700,000 350,000 4,500,000 2003 1,400,000 800,000 460,000 5,500,000 2004 1,600,000 1,200,000 650,000 6,500,000 2005 1,600,000 1,500,000 750,160 5,500,000 2006 1,660,000 1,400,000 950,000 6,800,000 2007 1,980,000 1,520,000 1,200,000 8,700,000 2008 2,500,000 1,900,000 1,500,000 13,500,000 2009 1,650,000 2,990,000 1,250,000 10,900,000 2010 1,500,000 2,400,000 650,000 8,500,000 2011 2,500,000 2,400,000 200,000 16,100,000 B. EXPORT OF HIDES Year Cattle Goat Sheep Hides ValueTshs. 000 Hides Hides 2002 1,200,000 511,700 165,000 4,000,000 2003 1,300,000 600,000 300,000 4,600,000 2004 1,774,000 1,431,000 488,000 5,712,000 2005 1,400,000 1,200,000 597,155 4,025,400 2006 1,363,721 1,216,740 861,770 7,500,000 2007 1,700,000 1,055,000 925,530 16,200,000 2008 2,300,000 1,600,000 1,100,000 21,500,000 2009 982,668 2,700,000 769,936 12,800,000 2010 739,315 1,912,182 176,400 8,191,803 2011 1,719,506 2,111,176 83,600 17,400,000 Source: Ministry of Livestock Development and Fisheries, 2011 138

COOPERATIVES AND MARKETING Cooperatives Development 256. In 2011, the Government continued with the implementation of Cooperative Reform and Mordenization Programme in order to enhance the capacity of cooperative unions and enable them to deliver financial service particularly to people in rural areas. The implementation of this program led to the increase in the number of cooperative unions from 9,596 in 2010 to 9,693 unions in 2011. 257. In 2011, the number of Savings and Credit Cooperatives Societies (SACCOS) increased to 5,346 from 5,314 in 2010. Similarly, the number of SACCOS members increased by 5.7 percent to 970,655 members from 917,889 members in 2010. In addition, members shares, savings and deposits increased from 236.8 billion shillings in 2010 to 399.0 billion shillings in 2011, equivalent to 68.5 percent increase. Moreover, loans issued to members increased from 539.2 billion shillings in 2010 to 627.2 billion shillings in 2011, equivalent to 16.3 percent increase. Table No. 11.8: Trend in Cooperatives Development Type of Cooperative Year % Change 2010 2011 SACCOS 5,314 5,346 0.6 AMCOS 2,819 2,871 1.8 Irrigation Cooperative 113 116 2.7 Other Cooperative 1,309 1,319 0.8 Major Cooperative/Apex/TFC 41 41 0 Total 9,596 9,693 0.7 Source: Ministry of Agriculture, Food and Cooperative. Trend in Cash Crops Prices 258. In 2011, the average price of mild Arabica coffee in the external market increased to USD 4.38 per kilogram from USD 3.17 per kilogram in 2010, equivalent to 38.2 percent increase. Hard Arabica coffee was sold at USD 2.60 per kilogram from USD 1.95 per kilogram in 2010, equivalent to an increase of 33 percent. On other hand, Robusta coffee was sold at USD 1.52 per kilogram in 2011 from USD 1.25 per kilogram in 2010, equivalent to 22 percent increase. The price of sisal increased from USD 0.91 per kilogram in 2010 to USD 1.26 per kilogram in 2011. The average price of tea declined from USD 1.99 per kilogram in 2010 to USD 1.68 per kilogram in 2011. 139

Table No. 11.9: Trend of Average Prices for Cash Crops in the world market Year Crop Coffee- Mild Arabica Coffee- Hard Arabica Coffee- Robusta Tea Cotton Sisal Cloves Price (USD /Kg) 2008 2.71 1.70 1.57 1.38 1.92 0.97 3.97 2009 2.34 1.76 1.49 1.59 1.99 1.21 4.02 2010 3.17 1.95 1.25 1.99 1.99 0.91 4.33 2011 4.38 2.60 1.52 1.68-1.26 - Source: Ministry of Trade and Market 140

DOMESTIC PRODUCTION AND CONSUMPTION OF SUGAR Table No. 35 Season 1 Sugar Cane Sugar Farmers Consumed 3 Public Private Total Price 2 Production Total Kg. per ('000 Tons) ('000 Tons) ('000 Tons) (Shs/Ton) Ton Ton person 4 1977/78 1008 116 1124 96.20 132979 111546 6.69 1978/79 1169 197 1366 96.20 114267 127712 7.42 1979/80 1180 210 1390 101.20 122530 112282 6.34 1980/81 854 193 1047 106.20 114667 115961 6.37 1981/82 1135 203 1338 137.30 124326 120629 6.44 1982/83 1090 113 1203 170.00 101996 93179 4.84 1983/84 1372 160 1532 238.00 131525 108369 5.48 1984/85 1148 105 1253 323.70 108102 111433 5.48 1985/86 1003 104 1107 352.30 100287 95379 4.56 1986/87 991 72 1063 463.00 94815 109462 5.09 1987/88 997 102 1099 600.00 101266 96271 4.35 1988/89 787 91 878 750.00 96227 126771 5.29 1989/90 963 98 1061 1748.45 111236 190750 5.47 1990/91 1068 116 1184 2525.90 118560 212585 5.93 1991/92 967 114 1081 3476.85 108480 202478 6.07 1992/93 1098 273 1371 5267.67 121414 204126 6.11 1993/94 1105 362 1467 6200.00 123949 139829 5.38 1994/95 914 370 1284 8600.00 104624 238424 5.38 1995/96 997 372 1369 8900.00 116810 268910.. 1996/97 951 347 1298 9500.00 116100 275700 5.54 1997/98 808 176 984 10500.00 116100 271790 5.70 1998/99 948 320 1268 12500.00 113622 101272 5.87 1999/00 907 341 1248 12500.00 116927 100127 6.70 2000/01 1050 284 1334 14000.00 135534 122534 10.00 2001/02 1134 389 1523 14700.00 164498 142398 10.10 2002/03 1402 411 1813 15000.00 190120 167300 10.42 2003/04 1672 670 2342 16800.00 223839 290711 10.90 2004/05 1594 752 2346 20568.00 229617 328005 10.90 2005/06 1545 956 2501 22383.00 263317 343292 12.00 2006/07 1430 611 2041 29000.00 192095 366708 12.00 2007/08 1967 799 2766 32767.00 265434 382518 13.00 2008/09 2056 693 2749 32770.51 279850 396113 13.40 2009/10 1972 598 2570 42046.00 263461 398070 13.68 2010/11 2357 661 3019 43865.00 304135 410259 12.00 Change (%) 09/10-10/11 0.20 0.11 0.17 0.04 0.15 0.03-0.12 Increase (%) 77/78-10/11 1.34 4.70 1.69 454.98 1.29 2.68 0.79 Source: Tanzania Sugar Bord 1 Season is between July and June 2 Price is for sugar cane with 10.5% of Sucrose 3 includes sugar transported to Zanzibar 4 For Tanzania mainland.. Not available 141

COTTON PROCUREMENT AND LOCAL SALES Table No. 36 Seed Cotton Lint Cotton Season 1 Local Sales Quantity produced (tons) Average Price (Shs/ton) Quantity (Tons) Qty (tons) Average Price (Shs/ton) AR BR Total AR BR AR BR Total Total 2 AR BR 1976/77 176894 17800 194694 2.00 1.00 61549 6074 67623 8146 9487 7230 1977/78 153292 14790 168082 2.30 1.15 46555 5821 52376 14422 12186 9370 1978/79 152267 14248 166515 2.40 1.20 51072 4696 55768 14253 12340 8810 1979/80 162087 18367 180454 3.00 1.30 52546 3931 56477 17284 13750 11040 1980/81 166233 8344 174577 3.20 1.50 54189 2962 57151 15634 13750 11040 1981/82 126799 6127 132926 3.70 1.70 42439 2153 44592 14070 15480 11730 1982/83 124559 3351 127910 4.70 2.50 40521 2381 42902 12660 15420 11730 1983/84 136151 4647 140798 6.00 3.70 41779 2175 43954 11771 15867 12038 1984/85 152355 4490 156845 8.40 4.50 50858 1154 52012 16236 26000 17400 1985/86 97384 8515 105899 13.00 7.00 29715 17775 47490 13247 52250 37350 1986/87 210454 4115 214569 16.90 9.10 55108 2338 57446 11389 52250 37350 1987/88 252177 2738 254915 19.45 9.10 67057 659 67716 13247 81350 67250 1988/89 184524 4720 189244 22.35 10.00 61552 1880 63432 11084 175000 140000 1989/90 112333 572 112905 28.00 11.00 37652 192 37844 13184 225000 190000 1990/91 148124 1017 149141 41.00 14.00 48880 341 49221 300000 300000 240000 1991/92 26841 32 26873 70.00 28.00 90706 11 90717 14301 325000 255000 1992/93 281984 22000 303984 60.00 28.00 85784-85784 4405 542916-1993/94 145224-145224 80.00-50142 - 50142.... - 1994/95 123663-123663 120.00-42695 - 42695.... - 1995/96 245914-245914 200.00-84782 - 84782.... - 1996/97 249370 74 249444 168.00-85162 25 85187...... 1997/98 207754-207754 200.00-69636 - 69636...... 1998/99 105853-105853 185.00.. 35480.. 35480...... 1999/00 100500-100500 123.00.. 33686.. 33686...... 2000/01 123558.. 123558 180.00.. 41415.. 41415...... 2001/02 148180.. 148180 165.00.. 49668.. 49415...... 2002/03 187908 781 188689 180.00 50 62983 262 63245...... 2003/04 139756 213 139969 280.00 100 46843 72 46915...... 2004/05 341589.. 341589 250.00 0 114496.. 114496...... 2005/06 376591.. 376591 220.00 0 126228.. 126228...... 2006/07 130585.. 130585 350.00 0 43770.. 43770...... 2007/08 200662-200662 450 70773-70773 37488 - - 2008/09 368697 0 368697 480 0 123582 0 123582 66554.... 2009/10 267644 0 267644 480 0 54851 0 54851...... 2010/11 163518 0 163518 900 0 54809 0 54809...... Change (%) 09/10-10/11-0.39-0.39 0.88 0.00 0.00 Increase (%) 77/78-10/11-0.08-0.16 449.00-0.11-0.19 Source: Cotton Marketing Board 1 Season is between July and June 2 Total is for AR and BR.. Not available 142

TEA CROP AREA, PRODUCTION AND LOCAL SALES Table No. 37 Crop Area Quantity of leaf tea produced (Tons) Price Local 2 Season 1 (Hectars) Ownership (Farms) Zones (Farms) to Farmers Sales Estates Small scale Total Estates Small scale Total North South Total (Shs/Kg) (Tons) 1976/77 9023 9217 18240 59300 13679 72979 27841 45138 72979 0.90 2994 1977/78 9214 9334 18548 65933 22598 88531 32784 55747 88531 1.50 4168 1978/79 9268 9280 18548 60062 24230 84292 27177 57115 842292 1.50 3735 1979/80 9268 9289 18557 61294 21780 83074 27249 55825 83074 1.50 4376 1980/81 9268 9289 18557 59603 18800 78403 25267 53136 78403 1.50 5487 1981/82 9268 9289 18557 59603 18800 78403 25267 53136 78403 1.50 5487 1982/83 9268 9365 18633 56023 18540 74563 22622 51941 74563 1.50 6735 1983/84 9699 9177 18876 65309 18931 84240 22869 61371 84240 2.80 3763 1984/85 9699 9177 18876 51443 21493 72936 18346 54590 72936 2.80 4286 1985/86 9699 9177 18876 55680 21550 77230 22369 54861 77230 4.10 4714 1986/87 9699 9177 18876 52271 19201 71472 17564 53908 71472 4.90 6346 1987/88 9699 9177 18876 46752 17942 64694 12333 52361 64694 7.60 4556 1988/89 9699 9177 18876 45771 17851 63622 12749 50883 63632 9.90 4260 1989/90 9699 9177 18876 52194 18874 71068 18099 52969 71068 13.40 3559 1990/91 9699 9177 18876 70442 22434 92876 23531 69345 92876 17.00 3491 1991/92 9699 9177 18876 62994 20229 83223 19296 63927 83223 28.00 2750 1992/93 9699 9197 18896 80896 19934 100830 32218 68412 100630 45.00 3278 1993/94 10029 9197 19226 81159 21231 102390 32148 70242 102390 45.00 11124 1994/95 10149 9197 19346 93608 22641 116249 36825 79424 116249 50.00.. 1995/96 10652 9332 19984 79968 13803 93771 25935 67836 93771 55.00 2350 1996/97 11113 9451 20564 83126 7803 90929 21992 68937 93771 55.00.. 1997/98 11416 9451 20867 113448 7100 120548 30137 90411 120548 55.00.. 1998/99 11416 9451 20867 98800 7000 105800 26450 79350 150800 55.00.. 1999/00...... 99848 6092 105940 24439 81502 105941 55.00.. 2000/01 10811 10364 21175 109007 9728 118735 29419 89316 118735 65.00 2386 2001/02 10811 10364 21175 97297 13999 111296 22794 88502 111296 80.00 2683 2002/03 11097 9762 20889 100677 31718 132395 28679 103716 132395 85.00 3158 2003/04 11485 10801 22286 95986 31993 127979 26384 101595 127979 86.00 3225 2004/05 11271 11442 22713 94172 39246 133418 20649 112769 133418 86.00 4004 2005/06 11310 10977 22287 91337 31881 123218 29046 94172 123218 93.00 3881 2006/07 11271 11956 23227 109632 49024 158656 39673 118983 158656 100.00 4737 2007/08 11272 11449 22722 97310908 51160136 148471044 33455685 115015359 148471044 111.00 4253 2008/09 11271 11449 22722 100644 41167 141811 31677 110134 141811 118.00 4464 2009/10 11272 11449 22722 106021 44716 150737 33309 117428 150737 124.00 5084 2010/11 11272 11449 22722 95511 47616 143127 112368 30759 143127 152.00 6065 Change (%) 09/10-10/11 0.00 0.00 0.00-0.10 0.06-0.05 2.37-0.74-0.05 0.23 0.19 Increase (%) 76/77-10/11 0.25 0.24 0.25 0.61 2.48 0.96 3.04-0.32 0.96 167.89 1.03 Source: Tanzania Tea Authority 1 Season is between July and June 2 Made Tea.. Not Available 143

COFFEE PROCUREM ENT AND LOCAL SALES Table No. 38 Coffee Procurem ent (Tons) Price (Shs/kg) Local Sales + Season 1 ARABICA ROBUSTA TOTAL ARABICA ROBUSTA QUANTITY VALUE Mild Hard Mild Hard Raw (Tons) (shs'000) 1976/77 35263 2424 10995 48682 15.00 11.00 8.90 1625 9516 1977/78 38222 2851 12023 53096 10.89 17.50 5.27 758 6300 1978/79 33853 2551 12946 49350 9.07 14.16 4.64 587 8232 1979/80 30850 2968 14216 48034 11.42 13.32 5.55 336 5541 1980/81 52301 3223 11237 66761 12.36 10.50 4.50 687 7012 1981/82 36090 3753 10947 50790 14.90 10.50 5.93 997 13072 1982/83 38852 2216 12728 53796 15.17 10.55 10.55 1020 20170 1983/84 36436 1729 11509 49674 22.87 16.35 16.35 1730 25716 1984/85 36270 1974 10836 49080 29.68 15.07 15.07 895 36418 1985/86 41042 2820 11285 55147 45.80 20.90 20.90 1408 94117 1986/87 39060 2702 16975 58737 50.75 29.00 29.00 1146 96626 1987/88 32804 2514 10389 45707 66.00 37.70 37.00 1122 120638 1988/89 41230 2280 11620 55130 90.00 51.00 51.00 1220 229322 1989/90 34945 1702 16427 53074 165.00 66.50 55.00 783 144998 1990/91 31304 1416 11403 44123 165.00 66.50 60.50 783 151088 1991/92 37065 1926 8996 47987 230.00 100.00 70.00 1140 2559 1992/93 36901 2128 12217 51246 316.00 123.00 100.00 765 128200 1993/94 26361 2448 7577 36386 923.00 904.00 700.30.... 1994/95 27137 1542 7157 35836 1965.00 1481.10 1453.60.... 1995/96 35142 2096 9710 46948 1229.30 1301.60 1169.00.... 1996/97 32933 1279 9279 43491 1418.70 1412.60 874.40.... 1997/98 19789 1894 9165 30848.......... 1998/99 23605 2590 13523 39718 1936 1064 1040.00.... 1999/00 18171 3593 1078 32842 1486.6 1894.8 476.47.... 2000/01 37176 3805 17007 57988.......... 2001/02 38000 3500 12000 53500.......... 2002/03 37294 4766 34368 76428.......... 2003/04 20716 1850 16138 38704 1800.00 1200.00 600.00 38704 46670 2004/05 23870 888 9133 33891 2593.50 1976.00 1235.00 33891 62566 2005/06 24116 1362 8856 34334 1200.00 420.00 270.00 33300 79304246 2006/07 33345 2417 19076 54838 2840.00 1796.00 1616.00 548 1298675 2007/08 26330 1588 15606 43524 2995.00 1875.00 1734.00 43523 89099 2008/09 37207 1727 29643 68577 2887.00 2172.00 1836.00 68577 165615552 2009/10 22217 915 11467 34599 3988.00 2475.00 1563.00 34599 108741091 2010/11 30309 2013 24348 56670 4500.00 1300.00 1200.00 56670 264143599 Change (%) 09/10-10/11 0.36 1.20 1.12 0.64 0.13-0.47-0.23 0.64 1.43 Increase (%) 76/77-10/11-0.1-0.2 1.2 0.2 299.0 117.2 133.8 33.9 27756.8 Source: Coffee Marketing Board + Clean Coff ee 1 Season is between July and June 2 Provisional.. Not available 144

SISAL PLANTATIONS, PRODUCTION AND LOCAL SALES Table No. 39 Area (Hectares) Sisal Production Local Sales + Quantity Producer Price Quantity Value Season 1 Matured Unmatured Total (Tons) (Shs/ton) (Tons) (Shs. milion) 1977/78 11626 38626 150252 91873 2474 25104 57.7 1978/79 107371 32589 139960 81384 2549 32023 95.6 1979/80 106866 26024 132890 85978 3135 35730 125.4 1980/81 99771 21642 121413 73753 3749 19687 68.0 1981/82 82257 17998 100255 60635 3784 30851 117.4 1982/83 85314 15720 101034 46187 4797 22384 94.9 1983/84 69799 13121 82920 38255 6410 12573 70.0 1984/85 62307 11796 74103 32247 7213 13075 88.3 1985/86 67606 13606 81212 30151 16099 19842 200.0 1986/87 67606 13606 81212 33170 19472 16477 407.0 1987/88 32932 20866 53798 33268 38750 20635 862.0 1988/89 47651 30584 78235 32265 64604 22661 1464.0 1989/90 48826 33780 82606 33743 94003 25563 2403.0 1990/91 49374 36240 85614 36001 89633 10398 932.0 1991/92 49374 36240 85614 24309 89203 17644 1582.2 1992/93 49374 36240 85614 21221 107079 18067 1517.6 1993/94 54485 24608 79093 29002 163540 17694.. 1994/95 52953 25757 78710 24716 216026 18206.. 1995/96 52018 27153 79171 28902 370807 18719 2549.0 1996/97 50459 28507 78967 25022.. 18606 3374.0 1997/98 48745 29997 78742 22180.. 18819.. 1998/99 151869 33997 185666 23229.. 6712 2146.0 1999/00 34645 7942 42587 41084.. 16033 5617.8 2000/01 34645 11473 46118 23542 368077 7569 2786.0 2001/02 34645 11473 46118 23641 337732 4947 1671.0 2002/03 39462 10611 50073 23280 450000 6300 2835.0 2003/04 29493 12204 41697 26758 540000 6370 4027.0 2004/05 45079 14500 59579 27794 617342 8213 5070.0 2005/06 26384 13264 39649 30934 810000 10767 8613.0 2006/07 28273 13608 41882 33327 975000 11010 10152.0 2007/08 28577 15622 44199 34057 1000000 16997 15800.0 2008/09 35751 18023 53774 25996 1000000 11496 10100.0 2009/10 30556 11849 42405 24092 1200000 12761 10375.0 2010/11 31117 12169 43286 25090 1300000 11617 13154.0 Change (%) 09/10-10/11 2.4 2.4 2.4 2.4 2.4 2.4 2.4 Increase(%) 77/78-10/11 167.6-68.5-71.2-72.7 52446.5-53.7 22697.2 Source: Tanzania Sisal Authority + Types of sisal are Line fibre, Tow and Flume Tow 1 Season is betwe en July and June.. Not available 145

TOBACCO PROCUREMENT AND LOCAL SALES Table No. 40 Procurement (Tons) Price(shs/kg) Local Sales + Season 1 Flue cured Fire cured Air cured Total Flue cured Fire cured Air cured Quantity (Tons) Value (shs.mil.) Flue cured Fire cured Flue cured Fire cured 1977/78 14451 2653 33 17137 7.40 5.20 4.80 3694 433 56.10 6.10 1978/79 14403 2654 30 17087 7.40 5.20 4.80 3254 1212 54.90 13.30 1979/80 13005 4195 34 17234 8.80 6.25 6.50 2829 1197 51.80 19.30 1980/81 12972 3670 33 16675 10.50 6.25 6.50 2981 958 57.70 43.40 1981/82 12164 4060 40 16264 12.60 7.70 6.80 3515 685 61.60 10.80 1982/83 9576 3987 52 13615 18.00 11.50 10.00 4048 462 99.00 31.10 1983/84 9009 1963 40 11012 18.00 11.50 10.00 3571 583 114.50 19.30 1984/85 10554 2726 36 13316 25.20 16.10 14.00 4417 333 179.80 13.20 1985/86 12113 415 21 12549 37.90 23.30 20.30 2302 281 126.30 13.80 1986/87 15009 1422 14 16445 49.25 30.30 26.40 4040 256 452.40 32.50 1987/88 11111 1802 8 12921 63.00 39.00 34.00 4069 259 651.90 45.10 1988/89 10187 1355 12 11554 75.60 48.75 37.32 4383 537 1074.10 88.20 1989/90 8461 3342 5 11808 93.04 76.49 40.25 8027 1057 2554.50 392.00 1990/91 10718 5733 8 16459 117.00 91.00 61.00 3845 531 4319.40 301.30 1991/92 18754 4566 2 23322 264.61 157.65 106.54 5364 172 7457.90 114.40 1992/93 18756 4566 2 23324 313.95 221.28 234.20 5372 209 7463.40 122.30 1993/94 21838 3953 6 25797 343.97 253.00 286.00 3164 285 4540.60 103.40 1994/95 18269 4362 19 22650 564.58 353.30 373.22 18260 4360 10309.00 1984.00 1995/96 23415 5183-28598 561.00 455.00-1319 183 1785.00 1331.00 1996/97 27101 8279-35380 632.00 551.00-2914 86 1236.00 1332.00 1997/98 42041 9054-51095 714.00 477.00-2647 117 1890.00 1320.00 1998/99 32041 5482-37957 530.00 454.00-979 69 2077.00 2435.00 1999/00 18232 6202-24434 603.00 566.00 - - - - - 2000/01 18231 6578-24809 543.00 556.00-2176 3392 5669.00-2001/02 25905 1799-27704 519.00 428.00-1595 348 4996.00-2002/03 23074 4798-27872 563.00 547.00-2325 45 5940.00-2003/04 30124 3422-43547 725.00 680.00-2245 136 6862.00-2004/05 41394 5983 74 47451 918.11 781.93 729.23 3144 252 6881.00 427.00 2005/06 50494 5228 741 56464 983.00 735.00 635.00 3486 168 9335.00 392.00 2006/07 49576 1038 170 50784 1264.00 881.00 960.00 3685 0 14302.00 0.00 2007/08 52597 2474 286 55357 1144.00 849.00 957.00 4057 231 15392.26 800.87 2008/09 56663 3641 437 60741 2741.47 1658.85 1698.48 5544 0 26167.09 0.00 2009/10 88808 4901 497 94202 2946.00 1691.00 1773.00 2210 148 9699.00 590.00 2010/11 116886 3685 0 120572 1960.00 1540.00 0.00 1877 0 11815.00 0.00 Change (%) 09/10-10/11 0.32-0.25-1.00 0.28-0.33-0.09-1.00-0.15-1.00 0.22-1.00 Increase (%) 77/78-10/11 7.09 0.39-1.00 6.04 263.86 295.15-1.00-0.49-1.00 209.61-1.00 Source: Tobacco Marketing Board + Sales of fire cured and air cured tobacco 1 Season is between April and March - Not Available 146

PYRETHRUM PROCUREMENT AND LOCAL SALES Table No. 41 Procurement (Tons) Local Sales - Quantity (Tons) Local Sales - Value (Shs.'000) Season 1 North South Total Price 2 Crude Extract Powder Dry Mack Crude Extract Powder Dry Mack (Shs./kg) 1977/78 173 2379 2552 4.00 1.4 89.0 1609.0 332.00 880.00 555.00 1978/79 50 1550 1600 4.00 1.1 95.0 270.0 338.00 1298.00 224.00 1979/80 26 1598 1624 6.00 0.7 156.0 216.0 322.00 2829.00 550.00 1980/81 59 1943 2002 7.50 1.7 224.0 303.0 184.00 4870.00 885.00 1981/82 70 1817 1887 10.00 2.1 180.0 254.0 1280.00 4596.00 998.00 1982/83 32 1569 1601 10.00 0.7 175.0 241.0 500.00 4700.00 1330.00 1983/84 19 1419 1438 14.00 1.0 223.0 175.0 764.00 5936.00 1329.00 1984/85 8 1534 1542 19.50 2.1 151.0 373.0 3563.00 7100.00 1585.00 1985/86 12 1340 1352 21.10 0.5 215.0 207.0 978.00 12900.00 1419.00 1986/87 12 1219 1231 29.50 0.3 183.0 358.0 1092.00 17535.00 3663.00 1987/88 6 1406 1412 35.40 1.0 140.0 321.0 3900.00 16600.00 4100.00 1988/89 8 1305 1313 47.80 0.6 106.0 239.0 3021.00 15389.00 5436.00 1989/90 8 1582 1590 60.00 0.8 139.0 253.0 6681.00 22907.00 1636.00 1990/91 16 1656 1672 120.00 0.8 59.0 253.0 11654.00 26120.00 2315.00 1991/92 43 2425 2468 230.00 0.3 38.0 59.0 18390.00 19040.00 672.00 1992/93 60 2034 2094 230.00 1.0 70.0-26500.00 39900.00-1993/94 10 450 460 250.00 0.0 40.0-17500.00 22800.00-1994/95 10 450 480 250.00 0.0 28.40-2112.00 16160.00-1995/96 6 430 438 300.00 0.0 - - - - - 1996/97 6 262 262 300.00 0.0 - - - - - 1997/98 6 430 430 300.00 5.0 - - - - - 1998/99-500 500 320.00 8.0 - - - - - 1999/00 571 571 320.00 - - - - - - 2000/01 3 1463 1466 400.00 - - - - - - 2001/02 36 1699 1735 420.00 - - - - - - 2002/03* 111 979 1090 380.00 2 90-106920.00 99891.00-2003/04 85 751 842 360.00 - - - - - - 2004/05 90 910 1000 360.00 - - - - - - 2005/06-2800 2800 360.00 - - - - - - 2006/07-1600 1600 700.00 - - - - - - 2007/08-1470 1470 1050.00 - - - - - - 2008/09-1600 1600 1500.00 36.4 105 624 0 0 0 2009/10-1780 1780 1500.00 57.0 69 1035 37361 1473 248 2010/11-1787 1787 1500.00 57.2 69 69 37504 1479 247 Change (%) 09/10-10/11-0.00 0.00 0.00 0.00 0.00-0.93 0.00 0.00 0.00 Increase (%) 77/78-10/11 - -0.25-0.30 374.00 39.86-0.22-0.96 111.96 0.68-0.56 Source : Tanzania Pyrethrum Bord 1 Season is between July and June 2 Price is for grade five only - No local sales * This data is for the period up to December 2002 of the ongoing season 147

CASHEWNUTS PROCUREM ENT AND LOCAL SALES Table No. 42 Procurement (Tons) Price (Shs/Kg) Local Sales Season 1 Upper Lower Upper Lower Quantity Value Grade Grade Total Grade Grade (Kg) (Shs.'000) 1977/78 54238 14245 68483 1.15 0.95 20083 38760 1978/79 44190 12878 57068 1.70 1.40 24620 69798 1979/80 38102 3314 41416 1.80 1.50 22044 62495 1980/81 47792 8766 56558 3.00 2.00 36205 159121 1981/82 41221 3110 44331 5.00 3.50 - - 1982/83 30721 2245 32966 5.00 3.50 - - 1983/84 46177 2129 48306 7.00 4.90 - - 1984/85 31842 690 32532 9.80 6.90 - - 1985/86 16066 2835 18901 11.75 8.30 - - 1986/87 15324 1224 16548 18.20 12.85 - - 1987/88 23274 1013 24287 30.00 20.00 134082 142080 1988/89 18602 673 19275 40.00 27.00 275016 224440 1989/90 16829 230 17059 84.00 56.00 152752 497970 1990/91 27426 1444 28870 110.00 73.00 161703 887750 1991/92 41238 * 41238 137.00 89.00 151804 654517 1992/93 39323 * 39323 160.00 100.00 - - 1993/94 46603 * 46603 200.00 185.00 - - 1994/95 63403 * 63403 330.00 - - - 1995/96 81729 * 81729 380.00 - - - 1996/97 63033 * 63033 300.00 - - - 1997/98 99915 * 99915 330.00 - - - 1998/99 106442 * 106442 460.00 - - - 1999/00 121207 * 121207 600.00-5071 3043 2000/01 122283 * 122283 250.00-934 233 2001/02 64886 14394 79280 300.00 180.00 2928 878 2002/03 79300 15700 95000 360.00 290.00 5630 2122 2003/04 65000 15000 80000 462.00 370.00 6061000 2521376 2004/05 59425 11575 71000 750.00 600.00 7013017 4733786 2005/06 61976 15470 77446 600.00 480.00 10738 6354240 2006/07 82154 8587 90741 600.00 480.00 22299 13001000 2007/08 89,639 8,633 98,273 610.00 488.00 98273 59335652 2008/09 48,633-48,633 700.00 560.00 48633410 34043387 2009/10 118,825 355 119,180 1700.00 1200.00 119179718 202428500 2010/11 65892218-65892218 1865.00-65892218 122888987 Change (%) 09/10-10/11 553.53 551.88 0.10-0.45-0.39 Increase (%) 77/78-10/11 1213.87 961.17 1620.74 3279.99 3169.51 Source: Cashew Mark eting Board 1 Season is between October and Septem ber - Not available * Not com piled 148

Table No. 43 Crop SUMMARY OF MARKETED QUANTITES AND VALUE OF PRINCIPAL CASH CROPS Quantity (Tons) %Change 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2009/10-2010/11 Sisal 23,280 26,758 27,794 30,934 33,327 34,057 25,480 24,092 25,090 4.1 Coffee 76,428 38,704 33,891 34,334 54,838 43,524 68,577 34,599 56,670 63.8 Cotton 1 188,689 139,969 341,589 376,591 130,585 200,662 123,582 54,851 54,809 (0.1) Tobacco 27,872 43,547 47,451 56,464 50,784 55,357 60,741 94,202 120,572 28.0 Pyrethrum 709 842 1,000 2,800 1,600 1,470 1,600 1,780 1,787 0.4 Tea 2 132,395 127,979 133,418 123,218 158,656 148,471 141,811 150,737 143,127 (5.0) Cashewnuts 95,000 80,000 71,000 77,446 90,741 98,273 48,633 119,180 65,892 (44.7) Sugar Cane 1,813 2,342 2,346 2,501 2,041 2,766 2,749 2,569 3,019 17.5 Source: Respective Marketing Boards 1 Seed cotton 2 Green leaves 149

CHAPTER 12 NATURAL RESOURCES AND TOURISM Growth Rate 259. In 2011, forestry and hunting sub-activity grew by 3.5 percent compared with 4.1 percent in 2010 and its share to GDP was 2.5 percent compared with 2.4 percent in 2010. Forestry and Beekeeping 260. In 2011, receipts from forestry and beekeeping sub-sector was Tshs 18,982.7 million, which was 59.3 percent less when compared with Tshs 46,590.1 million collected in 2010. However, this amount does not include revenue collected by Tanzania Forestry Service Agency as opposed to the records of 2010. Further, forestry export earnings declined by 7.1 percent from USD 366,768.3 in 2010 to USD 340,810.7 in 2011. The decline in export earnings was a result of Government decision to restrict export of raw products especially logs in order to provide room for value addition and expand employment opportunities. 261. In order to address climatic change issues, the Government continued to sensitize tree planting activity which is held annually through the National Tree Planting Day Program. In 2010/11, a total of 161,229,951 tree seedlings were planted compared with 205,840,543 seedlings planted in 2009/10. 262. In 2011, a total of 10,115,551 various tree seedlings were nurtured and planted in 3,547 hectares of open space and harvested areas compared with 10,278,681 tree seedlings planted in 7,008.12 hectares in 2010. In addition, a total of 2,451.97 hectares of trees were pruned and weeded compared with 15,639.7 hectares in 2010. Moreover, a total of 5,641 kilometrers of feeder roads and 5,586 kilometers of fire break roads were created. 263. In 2011, an average of 9,000 tonnes of honey worth Tshs 27 billion were produced compared with 9,380 tonnes worth Tshs 35.17 billion produced in 2010. Similarly, a total of 600 tonnes of wax worth Tshs 3 billion were produced in 2011 compared with 625 tonnes valued at Tshs 4.5 billion produced in 2010. It is estimated that beekeeping resources have a potential to produce an average of 138,000 tonnes of honey and 9,200 tonnes of wax per year but the actual production is averaged at 6.5 per cent of the country s production capacity. 264. In general, an average of 334.9 tonnes of honey is exported every year. This is only 4 percent of the total honey produced; and the remaining 96 150

percent is used locally as food, medicine and in the production of refreshments. The quantity of honey exported declined by 20.0 percent from 428.8 tonnes in 2010 to 343.0 tonnes in 2011. However, export earnings from honey increased from Tshs 1,271.1 million in 2010 to Tshs 2,181.3 million in 2011, equivalent to an increase of 71.6 percent. In addition, total wax exports declined by 6.4 percent from 568.3 tonnes in 2010 to 534.0 tonnes in 2011. However, export earnings from wax increased from Tshs 3,731.9 million in 2010 to Tshs 3,898.2 million in 2011, equivalent to an increase of 4.5 percent. TableNo.12.1: Exports of Bee Products (Honey and Wax), 2007-2011 HONEY YEAR WEIGHT (KG) VALUE (TSHS) WAX WEIGHT (KGS) VALUE (TSHS) 2007 156,012 218,348,125 320,660 1,909,188,517 2008 612,960 1,199,283,500 580,154 3,653,036,682 2009 485,842 1,097,642,183 556,000 3,525,245,806 2010 428,825 1,271,121,001 568,260 3,731,939,869 2011 343.02 2,181,319,119 534 3,898,239,826 TOTAL 1,683,982 5,967,713,928 2,025,608 16,717,650,700 Source: Ministry of Natural Resources and Tourism, Forestry and Beekeeping Department 265. In 2011, the Government continued to reinforce patrol groups to protect forest resources from unsustainable harvesting and arrest those who violate Forest Act No. 14 of 2002. A total of Tshs 799,276,370.0 were collected from fines and sales of impounded forestry products due to violation of the said Act. Generally, the impounded items declined in 2011 compared with impounded items in 2010. The impounded items included: 1,803 bags of charcoal in 2011 compared with 4,899 bags in 2010; a total of 15,034 pieces of timber compared with 26,399 pieces of timber in 2010; 7 bicycles in 2011 compared with 51 bicyles in 2010; 5,140 poles the same as it was in 2010; and 1,348 logs in 2011 compared with 1,052 logs in 2010. Wildlife 266. In 2011, the earnings from the wildlife sub sector were Tshs 518,756,355.7 compared with Tshs 313,993,696 in 2010, equivalent to an increase of 65.2 percent. This was attributed to surge in earnings from photographic tourism which grew by 217.7 percent. However, there was a decrease in earnings from other areas such as hunting tourism, hunting permits, trophy property rights and other fees. This was caused by decline in number of hunting tourists due to security reasons following political 151

instability and terrorist threats in some African countries such as Libya, Algeria, Nigeria, Egypt, Somalia, and Kenya as well as the impact of the global economic crisis especially in European and American continents which are major clients in the wildlife subsector. Other reasons include: suspension of export of live animals; shortage of human resources and working tools at revenue collection centres; and increased in human activities in hunting areas such as porching, agriculture, lumbering and animal husbandry. Table No. 12.2: Trends in Earning fromwildlife Sub Sector 2007-2011 Description 2007 2008 2009 2010 2011 Change( %) Hunting USD tourism 14,704,370 19,760,812 18,444,881 14,443,417 13,375,780-7.4% USD 1,332,385 2,387,728 2,706,603 2,576,677 7,975,453 209.5% Photographic TZS tourism 89,729,250 114,758,392 261,639,400 128,704,850 408,873,272 217.7% Trophy TZS business licence 189,888,495 153,084,905 172,046,203 16,122,000 20,707,000 28.4% Permits for TZS trophy exports 10,457,500 10,206,000 5,651,750 14,705,750 14,529,769-1.2% Permits for TZS catching wild animals 74,478,766 408,476,566 87,559,229 137,055,190 65,665,766-52.1% Trophy TZS property rights 2,885,400 2,353,400 1,462,000 2,231,840 1,752,330-21.5% TZS Other fees 84,703,267 111,453,174 7,361,669 15,174,066 7,228,219-52.4% USD 16,036,755 22,148,540 21,151,484 17,020,094 21,351,233 25.4% Total TZS 452,142,678 800,332,437 535,720,251 313,993,696 518,756,356 65.2% Source: Ministry of Natural Resources and Tourism, Wildlife Department 267. In 2011, wildlife subsector continued with its responsibility of ensuring that wildlife resources are protected against poaching and unsustainable harvesting. In 2011, a total of 71,497 patrols were conducted in reserve forests and non reserve areas compared with 77,446 patrols conducted in 2010. In addition, a total of 587 cases involving 1,011 suspects were filed in various courts in the country compared with 766 cases with 1,672 suspects filed in 2010, which is equivalent to a decrease of 23.4 percent. Out of those, 321 cases were concluded while 266 cases are ongoing. 268. In an effort to protect the lives and properties of the people, against wild and destructive animals, the wildlife sub-sector conducted 2,174 patrols 152

in 14 districts mostly affected by destructive wild animals compared with 2,111 patrols in 17 districts in 2010. The affected districts are Rombo, Siha, Ngorongoro, Serengeti, Karagwe, Bunda, Biharamulo, Monduli, Babati, Longido, Kondoa, Singida, Nanyumbu and Moshi rural. In addition, to ensure sustainable use of wildlife resources, the Government through Wildlife Department in collaboration with the Wildlifre Research Institute, Tanzania National Parks Authority, and Ngorongoro Crater Conservation Authority continued with the process of conducting wildlife census in the following ecosystem corridors; Selous Niassa, Tarangire Manyara, Ruaha Rungwa, Amboseli- West Kilimanjaro and Selous-Mikumi. 269. In 2011, the Government rehabilitated 178 kilometers of roads compared with 100 kilometers rehabilitated in 2010. The objective was to improve road infrastructure to ensure that the reserve areas are accessible for patrol purposes, hunting tourism, photographic tourism and so forth. In addition, to ensure community participation in wildlife conservation activities and its environment, the Government allocated Tshs 1,024,656,098 to 36 counsils which have hunting blocks to implement development projects. Moreover, a total of Tshs 200 million were disbursed to 12 wildlife conservation communities which have hunting blocks. Fisheries 270. In 2011, fishing economic activities grew by 1.2 percent compared with 1.5 percent in 2010. The slowdown in growth was a result of the use of poor fishing gears, destruction of fish hatcheries and low demand of fish in the world market. The share of fishing activities to GDP was 1.4 percent in 2011 as it was in 2010. 271. In 2011, a total of 341,066 tonnes of fish products valued at an average of Tshs 1,198.8 million were harvested compared with 347,156.9 tonnes worth Tshs 774.5 million harvested in 2010. Out of those, a total of 290,474 tonnes equivalent to 85.2 percent worth Tshs 1,031.9 million were harvested from fresh water while the remaining amount was harvested from sea water. 272. In 2011, the number of artisanal fishermen increased from 163,601 in 2010 to 177,527 artisanal fishermen. Moreover, fishing vessels increased from 50,001 in 2010 to 55,299 vessels in 2011. In addition, a total of 61,215.1 aquarium fish and 37,996.5 tonnes of fish altogether worth Tshs 233,714.6 million were exported and earned the Government a total of Tshs 6,153.3 million from sales levy compared with export earnings of Tshs 263,131.4 million which generated revenue worth Tshs 5,876.1 million in 2010. 153

Table No. 12.3: Fish Harvest in 2011 Number Tonnes and value Area Artisanal Vessels Fish (Tonnes) Value (Tshs) Fishermen Lake Victoria 95,303 26,983 240,255.93 872,822,786.05 Lake Tanganyika 26,612 11,506 31,568.42 101,018,954.76 Lake Nyasa 5,550 2,632 11,304.67 35,044,470.06 Lake Rukwa 1,676 1,032 4,196.30 13,428,173.77 Mtera DAm 2,487 1,586 743.76 2,380,025.58 Nyumba ya Mungu 3,466 1,167 992.91 3,375,884.00 Dam Other minor water 6,112 2,729 1,411.58 3,812,961.18 Marine artisanal 36,321 7,664 50,592.41 166,954,953.00 Total 177,527 55,299 341,065.98 1,198,838,208.40 Source: Ministry of Livestock Development and Fisheries Table No. 12.4.: Fish Resource Harvesting 2005 2011 Fresh water Sea Water Total (Fresh anad Seawater) Year Fisher men Vessels Weight (tonnes) Fisher men Fishin g vessels Weight (tonnes) Fisherm en Fishin g vessels Weight (tonnes ) 2005 103,443 32,248 320,566 29,754 7,190 54,969 133,197 39,438 375,535 2006 126,790 44,362 292,519 29,754 7,190 48,591 156,544 51,552 341,109 2007 126,790 44,362 284,347 36,247 7,489 43,499 163,037 51,851 327,845 2008 133,791 44,838 281,691 36,247 7,489 43,130 170,038 52,327 324,821 2009 135,769 45,234 288,059 36,321 7,664 47,616 172,090 52,898 335,674 2010 127,280 42,337 294,474 36,321 7,664 52,683 163,601 50,001 347,157 2011 141,206 47,635 290,474 36,321 7,664 50,592 177,527 55,299 341,066 Source: Ministry of Livestock Development and Fisheries 273. In 2011, the Government continued to control illegal fishing by undertaking land, water and air patrols in the Indian Ocean zone, Lake Victoria, Lake Tanganyika and other lakes along the boarders. During the period under review, a total of 5,792 patrols were conducted countrywide including 2,621 patrols conducted in the coastal zone, 1,962 patrols in the Lake Victoria, and 681 patrols in Lake Tanganyika. The patrols facilitated apprehending of 607 suspects compared with 98 suspects arrested in 2010. 154

The suspects contravened various laws including fishing without licences, using various unregistered fishing equipment, doing fishing business without license, dynamite fishing and using prohibited nets. In addition, a total of 32 cases were filed in the court. 274. In 2011, the government apprehended and confiscated illegal fishing gears and tools used in illegal fishing including: 802 beach seines; 156,693 metres of synthetic ropes; 11,688 gills nets, 101 saardine nets (under 10 mm), 646 monofilament nets, 59 explosives, 97 diving equipment, 92 arrows, 169 mosquito nets, 77 paddles, 19 ringnets, 113 scoop nets, 25 pieces of detonetors, 119 hooks, 76, sprash, 64 castnets, 81 cars, 11 motorcycles, 343 boats, 12 boat engines and 11 bicycles. Also, 280 kilograms of sea shells, 687 kilograms of fish obtained through explosive fishing, 34,475 kilograms of dry saardines, 460 kilograms of poison fished nileperch, 2000 kilos of seashells, 41,077 kilograms of immature fish, and 3,592 of fresh fish and 1,700 kilograms of dry fish were apprehended. 275. In 2011, the Government continued to involve the general public in protecting, managing, and sustainable use of the fishery resources by establishing 729 Participatory Fishery Resource Management Groups. Out of those, 433 groups are in the Lake Victoria zone, 19 in Lake Tanganyika zone, 29 in Mtera dam, 20 in Nyumba ya Mungu dam, 11 in Ruhuhu river, 24 in Kyela district and 167 in the coastal zone. In addition, 24 fisheries resource management plans were prepared in Pwani and Mkinga districts, Mtwara Mikindani Municipal, Mtwara Rural, LindiMunicipal, Lindi Rural, Mkuranga, Bagamoyo and Temeke Municipals. Similarly, fishery resources management by-laws were prepared in 12 villages in Rufiji (6) and Mkinga (6). 276. In 2011, the Government continued to control the quality and safety of fisheries products. During the period, a total of 5,335 inspections were conducted in fish fillet processing industries and storage facilities as well as cars and boats used for fish products transportion compared with 2,222 inspections held in 2010. Morever, a total of 1,145 samples of fish products, water and soil were tested in the National Fish Quality Control Laboratory at Nyegezi in Mwanza, Tanzania Bureau of Standards, South African Bureau of Standards and Chemiphar of Uganda to detect and identify harmful bacteria and mineral contents compared with 623 samples tested in 2010. Tourism 277. In 2011, the number of foreign tourists increased by 10.9 percent from 782,699 tourists to 867,994 in 2010. Those tourists visited various sites and earnings from their activities were USD 1,324.8 million compared to USD 155

1,254.5 million earned in 2010, equivalent to an increase of 5.6 percent. The increase in number of tourists and earnings was a result of Government efforts to promote tourist attractions in the country, increase in number of hotels, improved various services provided by tourism agencies and infrustructure in the tourist sector. 278. In promoting the available tourist attractions, the Government through the Tourist Board printed 3,000 copies of Tanzania Tourism Directory, 6,000 copies of Tantravel gazette, 30,000 copies of Selling Tanzania and 30,000 copies of CD ROM. In addition, the Government participated in 12 international tourist fairs and continued to gain from internal opportunities such as Sabasaba, Nanenane, and Karibu Fairs and World Tourism Day, to promote local tourism and reduce foreign market dependency. 279. In 2011, a total of 1,199,807 tourists visited tourist attractions available in Tanzania National Parks (TANAPA) compared with 671,886 tourists in 2010, equivalent to an increase of 78.5 percent. Out of those, 588,153 were local tourists and 610,729 were foreign tourists. A total of 76,793,343,862.0 shillings was earned in 2011 compared to shillings 69,670,107,884.0 in 2010, equivalent to an increase of 10.2 percent. 280. The number of tourists who visited Ngorongoro Conservation increased by 12.4 percent from 523,646 tourists in 2010 to 588,606 tourists in 2011. Out of those, 281,513 were foreign tourists and 307,086 were locals. Table No. 12.5: Number of Tourists who visited Ngorongoro conservations in 2011. Month Foreign tourists Locals Total January 29,290 26,392 55,682 February 10,451 18,717 29,168 March 18,512 25,871 44,383 April 13,981 19,694 33,675 May 12,387 17,461 29,848 June 22,146 21,602 43,748 July 44,519 29,159 73,678 August 45,462 29,314 74,776 September 29,454 25,319 54,773 October 33,345 25,199 58,544 November 21,045 18,809 39,854 December 26,494 23,983 50,477 Total 281,513 307,086 588,606 Source: Ministry of Natural Resources and Tourism, Ngorongoro conservation Authority. 156

Archives and Antiquities 281. In 2011, a total of 174,953 people visited various archives and antiquities. Out of those, 90,348 were Tanzanians and 84,605 were foreigners. Earnings from archives and antiquities tourism activities were shillings 242,340,630, equivalent to an increase of 4.8 percent compared to shillings 231,825,095.0 in 2010. This was attributed to the increase in number of tourists. In addition, following the efforts to promote tourist activities the awareness for Tanzanians to visit historical sites increased. Table No. 12.6: Earnings from Archives and Antiquities in 2011. Centre Visitors Foreigners Locals Total Revenue Olduvai George 69,762 29,772 99,534 193,293,750 Kaole 6,388 28,960 35,348 18,499,800 Isimila 196 327 523 2,655,100 Mji Mkongwe 3,182 6,782 9,964 7,276,200 Caravan Serai 973 3,181 4,154 1,496,200 Kalenga 111 312 423 717,700 Engaruka* - - Kilwa 1,131 1,269 2,400 2,655,100 Mbozi 121 4,099 4,220 1,496,200 Amboni 1,852 7,893 9,745 7,056,1006, Tongoni 21 87 108 375,000 Kunduchi* - - Ujiji 854 7,578 8,432 6,917,500 Kwihara 14 88 102 146,700 Makao Makuu** - 6,811,380.46 Total 84,605 90,348 174,953 242,340,630 Source: Ministry of Natural resources and Tourism, Antiquities Department. * Centres which have not started to collect non tax revenues. ** Revenue from research fees on culture and heritage. Table No. 12.7: Revenue from National Archives in 2011 Centre Visitors Foreigners Locals Total Revenue Cultural House 6,564 23,415 29,979 274,117,983.43 Makumbusho village 4,424 19,571 23,995 154,173,915.94 Azimio la Arusha 269 9,497 9,766 10,417,481.33 Makumbusho ya Elimu Viumbe 1,935 9,263 11,198 53,064,935.85 Mwalimu Nyerere 426 7,912 8,338 30,748,803.97 Majimaji wars 40 1,795 1,835 4,119,800.00 Total 13,658 71,453 85,111 526,642,920.52 Source: Ministry of Natural resources and Tourism National museum. 157

282. In 2011, the Government finalised the document intending to put the central slave trade route in the world heritage and submitted it to the World Heritage Committee.The aim of this process is to map the Route in the world heritage and therefore promote Tanzania in order to benefit from tourist activities. Moreover, in conserving cultural heritage sites, the Government in collaboration with the World Monument Fund continued to rehabilitate the old Kilwa jail and Malindi Mosque in Kilwa Kisiwani with the aim of strengthening and conserving the ruins for tourist attraction. 283. The Government developed a software program for records keeping of Archive heritage. Currently, 22 areas for freedom fighters and 9 areas for archives and antiquities in Lindi and Kigoma regions have been put in that program. This will facilitate improvement and conservation of archives and antiquities sites and ensure their proper evaluation. 284. The Government returned 7.5 tonnes of archive collections from Kenya National Museum which included stone weapons, human remains and animal bones. These collections are preserved at the National Museum in Dares Salaam, following the completion of the construction of Makumbusho House. The presence of these collections will improve the National Museum and attract more tourists. In 2011, the Government made a research on 3.6 million years old human foot print at Laetoli area in Ngorongoro, Arusha. In addition, in 2011, revenue collections from National Museum attractions amounted to Shillings 526,642,920 compared to shillings 228,953,416 in 2010. 158

Table No. 45 TREE PLANTED PER REGION Region 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010 2010/2011 ARUSHA 1,591,934 4,141,250 4,312,043 6,968,417 5,163,971 3,768,491 MANYARA 1,784,543 3,606,308 4,154,855 4,614,004 4,499,801 4,717,730 DAR ES SALAAM 949,844 1,668,801 1,668,800 2,763,392 2,867,313 3,333,545 DODOMA 2,472,127 3,859,176 3,859,180 4,100,000 4,330,000 5,288,000 IRINGA 17,000,000 20,000,000 17,486,732 58,200,000 84,979,626 33,201,257 KAGERA 5,831,745 11,053,410 5,293,435 13,298,266 12,168,342 5,195,720 KIGOMA 1,819,307 2,013,451 2,013,452 1,971,790 1,346,643 2,157,320 KILIMANJARO 3,054,132 6,000,000 4,817,061 3,432,106 5,900,000 4,062,918 LINDI 2,927,204 6,000,000 3,773,313 2,010,000 5,157,600 5,203,325 MARA 6,030,801 5,094,200 5,297,968 6,443,842 5,626,994 5,759,402 MBEYA 4,681,448 11,953,129 5,950,835 10,902,351 11,268,387 11,609,727 MOROGORO 5,295,470 6,467,449 5,862,747 7,411,000 5,928,503 5,678,686 MTWARA 1,845,270 3,186,400 1,713,806 3,678,734 3,565,908 4,867,812 MWANZA 2,439,019 7,730,189 5,084,184 5,309,775 2,690,646 6,250,461 PWANI 2,672,490 4,006,275 5,423,241 8,374,066 2,981,630 11,681,036 RUKWA 3,166,911 3,261,918 3,392,395 6,427,855 642,855 4,099,613 RUVUMA 3,208,223 6,500,000 4,750,000 7,800,000 9,100,000 9,100,000 SHINYANGA 3,835,080 19,910,981 34,839,431 30,136,031 21,915,690 13,869,405 SINGIDA 357,163 2,128,150 1,830,458 1,498,289 2,033,533 1,953,074 TABORA 3,338,540 4,120,530 3,238,550 5,250,010 7,520,316 2,834,000 TANGA 66,869,301 5,596,002 11,314,395 13,228,156 6,152,785 16,598,429 Total 141,170,552 138,297,619 136,076,881 203,818,084 205,840,543 161,229,951 Source: Departments of Forestry and Beekeeping and Environmental Department * statistics not available 159

Table No.47 Volume/W Value Volume/ Value Volume/W Value Value Value Volume/W Volume/W eight Weight eight Product (US $ '000) (US $ '000) (US $ '000) eight (US $ '000) eight (US $ '000) Tree logs (teak) 8808.4 27030.0 - - 288737.8-0.0 0.0 0.0 0.0 Timber (Rough sawn) 310641.0 129708.9 22.1 71854.2 2389.7 27161.7 90827.0 288737.8 43090.6 230972.4 Ebony Timber 802.5 5268.2 4.6 7952.1 148.6 2720.0 75.4 2389.7 88.2 2183.3 Floor Boards 38.5 821.5 23.4 676.0 23154.2 52. 0 117.0 148.6 0.0 0.0 Vinyago na Sanaa 29953.2 25943.4 127432.7 58706.7-18993.6 35849.0 23154.2 31860.1 20041.5 Sandals 90270.3 3142.5 - - 3655.3 - - 0.0 20000.0 233.3 Funitures 23.0 4313.7 573.0 9164.1 3298.0 1297.0 3655.3 8645.0 5561.7 Tannin - - - - 979.3 - - - 0.0 0.0 Mimosa Bark 444000.0 2780.0 1534000.0 16777.6-2532.0 194025.0 979.3 209000.0 761.5 Tree Seeds 10665.0 137300.0 - - - - - - 0.0 0.0 Tree Plants 41698.0 12428.0 - - 838.1 - - - 700.0 606.7 Tree's Glue - - - - 934.5-195020.1 838.1 398295.0 25323.3 Maganda ya miti 245235.0 2203.0 20000.0 1064.0 504.4 4120.0 138502.1 934.5 87000.0 680.0 Majani ya minazi 1000.0 140.0 16089.0 2192.0-232.1 4147.0 504.4 1444.0 983.9 Mikeka 2400.0 2540.0-193.1 - - - 8230.0 4000.6 Medicine Leaves 2.0 61.0 2.0 500.4 110.4 26.4 193.1 66.0 4472.7 Mabaki ya mbao za mipingo (off cuts) 5.2 100.0 - - 116.0 - - 0.0 0.0 Mbao za Pallets 19.0 70.0 - - 1500.0 - - - 2365.0 40000.0 Nguzo 6396.0 24970.0 8496.3 31239.3 172.0 0.1 1500.0 425.0 670.0 Majani ya mtende 6000.0 280.0 1000.0 560.0-116.0 - - 0.0 0.0 Bee Wax 25500.0 116.0 44.8 - - - 0.0 0.0 Jatropha Oils 0 0 14000.0 112.0 2251.7 210.0 44.8 85.8 140.0 Sandals Oils 0 0 0 0 3604.3 1776.0 9358.0 2251.7 500.0 96.7 Handcrafts 0 0 0 0 1300.0 0.0 5425.5 3604.3 15245.0 3456.4 Rubber 155000.0 1300.0 Sandalwood Dusts 0 0 29063.5 0.0 82288.8 29063.5 96511.3 626.7 Nguzo za umeme 0 7469.0 2255.0 7469.0 0.0 0.0 Total 1197957 379100.2 1747143 200914.4 366768 61347.8 914423.4 366768.3 923551 340810.7 Source: Forestry and Beekeeping Department - Not available EXPORTS OF FORESTRY PRODUCTS 2007 2008 2009 2010 2011 160

Table No. 48 EXPORT OF GOVERNMENT TROPHIES Type of Trophy Unit 20002 2003 2004 2005 2006 2007 2008 2009 Birds Number 100516 91075 98112 90869 6236 15347 15347 18798 25742 68964 Reptiles Number 66857 58566 73620 54221 101467 112630 114171 110056 56988 57221 Other mamals than primates Number 1090 950 569 509 229 274 296 202 263 379 Primates Number 1282 155 476 437 273 736 738 50 202 61 Amphibians Number 34509 33457 27007 18823 37989 43967 46402 47055 24557 10635 Insects Number 30211 57735 59376 73057 107489 77245 111512 100171 40351 21765 Source: Wildlife Department 2010 2011 161

EARNINGS FROM TOURIST HUNTING AND EXPORT OF LIVE ANIMALS Table No. 48A Activity Unit 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 Tourist Hunting US $ 8,824,305 9,775,749 11,676,847 12,030,510 14,704,370 14,861,740 17,610,454 21,450,234 Export of live animals Shs. 162,103,454 177,028,657 165,465,746 180,686,043 206,671,428 204,897,124 109,790,238 133,376,980 Source: Wildlife Department NUMBER OF TOURIST HUNTERS Table No. 48B Year Number of Number of Hunters companies Foreign Tanzanians 1994/95 43 668 194 1995/96 42 694 160 1996/97 35 937 171 1997/98 35 992 355 1998/99 35 933 391 1999/00 35 923 429 2000/01 39 893 407 2001/02 40 1035 418 2002/03 40 1018 359 2003/04 40 1274 380 2004/05 46 1245 409 2005/06 54 1482 855 2006/07 54 1582 855 2007/08 54 1508 1725 2008/09 54 1152 1454 2009/10 47 851 273 2010/11 42 862 171 Source: Wildlife Department 162

PRODUCTION IN THE FISHERIES SECTOR : 1993-2011 Table No. 50 Number Number of Boats Fish catch and Revenues of Artisanal Fresh Sea Total Fresh Waters Marine Waters Total Year Fishermen waters waters Qty (Tons) Value (Shs.) Qty (Tons) Value (Shs.) Qty (Tons) Value (Shs.) 1993 61,943 17,744 3,232 20,976 294,782.1 31,238,839.00 36,684.8 10,206,810.00 331,466.9 41,445,649.00 1994 61,666 16,129 3,232 19,361 228,006.6 30,949,458.00 40,785.4 14,227,862.00 268,792.0 45,177,320.00 1995 75,516 18,696 3,768 22,464 207,139.0 45,805,145.00 51,073.0 28,579,811.00 258,212.0 74,384,956.00 1996 75,621 19,208 3,768 22,976 308,600.0 38,200,000.00 48,200.0 24,100,000.00 356,800.0 62,300,000.00 1997 75,621 19,208 3,768 22,976 306,750.0 42,265,000.00 50,210.3 25,350,000.00 356,960.3 67,615,000.00 1998 78,672 17,141 5,127 22,268 300,000.0 47,486,100.00 48,000.0 29,273,500.00 348,000.0 76,759,600.00 1999 81,572 17,141 5,127 22,268 260,000.0 44,018,000.00 50,000.0 33,500,000.00 310,000.0 77,518,000.00 2000 102,329 25,014 5,157 30,171 271,000.0 45,500,000.00 49,900.0 32,180,000.00 320,900.0 77,680,000.00 2001 120,266 25,014 4,927 29,941 283,354.0 47,108,668.00 52,935.0 34,113,717.00 336,289.0 81,222,385.00 2002 124,570 31,849 4,727 36,776 273,856.0 54,771,300.00 49,675.0 33,372,136.00 323,531.0 88,143,436.00 2003 124,570 31,849 4,927 36,776 301,855.0 141,073,500.00 49,270.0 34,489,000.00 351,125.0 175,562,500.00 2004 122,514 32,172 4,947 37,119 312,040.0 147,743,000.00 50,470.0 40,376,000.00 362,510.0 188,119,000.00 2005 133,197 32,172 7,190 39,362 320,566.0 256,452,800.00 54,969.0 82,452,930.00 375,535.0 338,905,730.00 2006 156,544 44,362 7,190 51,552 292,518.7 248,640,903.50 48,590.5 37,077,636.79 341,109.2 285,718,540.29 2007 163,037 44,362 7,342 51,704 284,347.9 252,525,197.95 43,459.6 39,210,207.20 327,807.5 291,735,405.15 2008 170,038 44,832 7,342 52,174 303,936.0 194,725,415.72 46,375.5 40,563,641.20 350,311.4 235,289,056.92 2009 174,540 48,221 7,943 56,164 299,729.0 351,394,073.10 44,838.2 56,633,436.00 344,567.3 408,027,509.10 2010 141,206 47,635 7,664 55,299 294,474.0 684,844,020.20 52,683.0 89,639,934.00 347,157.0 774,483,954.20 2011 141,206 47,635 7,664 55,299 290,474.0 166,954,953.00 50,592.0 1,031,883,255.40 341,066.0 1,198,838,208.40 Source: Fisheries Department 163

EXPORT OF FISH PRODUCTS IN 2011 Table No.51 Products Quantity (KG) Value (FOB) US$ Tsh. ROYALITY - Tsh. Dried Fish Maws 62.1 409,285.21 647,804,716.10 24,823,122.80 Dried Dagaa/L.Vict. 6,229.80 4,279,462.32 6,485,876,678.93 388,973,359.24 Dried Fish Chests 2.6 638 937,222.00 188,966.16 Dried Pelege/L.Vict. 0.8 1,018.00 1,665,738.00 100,000.00 Dried Dagaa/L.Tang. 952.6 932,886.09 1,461,968,448.83 78,531,250.00 Dried Dagaa/ L. Nyasa 21.5 24,437.00 33,409,821.80 2,048,725.00 Dried Dagaa/Marine 14.8 17,771.00 29,426,781.00 1,059,340.00 Dried Fish Offcuts 98.5 23,125.00 35,423,480.00 7,561,406.00 Dried Fish /Kayabo 27.5 15,365.00 23,355,845.00 2,530,550.00 Dried Fish /L.Tang. 289.9 818,092.60 1,275,725,171.90 64,566,640.00 Dried Fish belly flaps 18 3,750.00 5,530,250.00 1,880,775.00 Dried Fish Maws 102.9 968,824.34 1,480,121,260.57 32,321,203.36 Fresh Fish Fillets 11,285.30 60,909,109.11 93,352,314,193.32 2,079,448,323.42 Dried Furu/ L. Vict. 1,029.70 1,270,432.38 1,752,970,611.90 51,890,957.01 Dried Furu/L. Nyasa 16.3 11,379.00 11,630,696.00 600,100.00 Dried Pelege/ Mtera dam 2 5,868.56 6,304,485.00 327,500.00 Dried Pelege /L.Vict. 0.1 165 171,765.00 14,800.00 Dried Kambare/L.Rukwa 0.8 825 1,200,375.00 10,000.00 Dry salted Pelege/ L.Rukwa 794.8 1,971,562.40 2,920,144,012.00 24,789,217.50 Frozen Fish Fillets 9,616.20 53,116,276.59 80,953,060,410.23 1,790,321,234.71 Frozen Fish Maws 782.6 9,963,060.20 15,402,576,597.43 182,393,153.17 Fish Frames 2,091.70 539,303.88 831,255,898.42 30,827,702.34 Fish Meal 308 54,320.00 83,307,494.00 8,006,751.00 Fish Tissues 0.1 97.17 149,948.14 5,400.00 Fresh Fish steak/l.vict. 0 440 633,160.00 13,813.00 Fresh Fish Maws 0.8 16,680.00 24,035,880.00 180,301.00 Fresh Fish/L. Tang 273.2 813,035.74 1,274,855,490.75 50,661,981.67 Fresh H&G Fish 219.8 1,177,302.04 1,849,259,663.98 44,994,936.86 Frozen Prawns/ Farmed 90.8 578,633.40 934,762,699.40 16,735,384.56 Frozen Crabs 13.4 77,865.44 123,832,376.00 5,766,471.00 Frozen Cuttle Fish 7.3 30,870.87 46,924,425.46 5,548,375.00 Frozen Fish/whole 26 22,598.00 32,586,316.00 1,646,741.64 Frozen Fish Frames 89 26,700.00 39,302,703.00 1,179,081.00 Frozen Fish belly flaps 48.5 9,700.00 14,228,300.00 5,059,905.00 Frozen Fish Chests 69.5 18,702.50 29,023,604.25 11,951,139.63 Frozen Fish Offcuts 439.3 719,709.38 268,169,571.90 37,024,091.89 Frozen Fish/ marine 25.4 138,969.43 223,572,516.56 8,497,900.63 Frozen H&G Fish 1,003.00 4,485,580.00 7,935,319,556.26 193,051,049.04 Frozen Lobster /Tails 1.1 15,630.74 23,636,804.00 1,080,826.00 Frozen Lobster/whole 17.4 151,469.52 227,736,735.24 6,372,141.00 Frozen Octopus 842.2 3,653,900.53 6,233,118,875.78 526,613,895.50 Frozen Prawns 237.4 2,321,302.11 2,193,092,691.71 100,050,949.81 Frozen Prawns/ PUD 1.9 14,861.20 23,883,440.00 5,735,509.43 Frozen Squids 14.1 66,956.51 100,039,202.00 6,789,703.46 Live Crabs 203.6 1,523,563.10 2,471,246,553.83 200,826,742.20 L ive Lobster 68.9 1,463,272.79 2,345,546,241.58 103,734,861.84 Nile Perch Oil 2.6 5,165.56 7,800,000.00 10,000.00 Sea Shells /Cowries 552.7 54,262.50 86,627,596.75 5,666,578.00 Sub Total 37,996.50 152,724,225.21 233,305,566,305.02 6,112,412,855.87 Live Fish - No of Pcs Live Aquarium Fish/ L. Nyasa 11,220.80 46,380.96 75,983,796.01 8,938,747.61 Live Aquarium Fish/L. Tanganyi 49,994.30 202,750.62 333,039,909.76 31,926,419.88 Grand Total 61,215.10 152,973,356.79 233,714,590,010.79 6,153,278,023.36 Source: Ministry of Livestock Development and Fisheries 164

SUMMARY OF FISH EXPORT PRODUCTS - 1996-2011 Table No. 51A Year Quantity Values Duties Kgs T.shs US $ T.shs 1996 25,544,863.0 24,837,660,718.5 61,782,880.1 1,513,450,669.0 1997 32,098,151.0 41,879,810,576.2 70,165,111.2 2,512,741,838.5 1998 46,660,954.0 54,836,980,435.0 83,523,090.0 3,290,218,972.2 1999 28,928,780.8 44,712,630,055.1 61,789,857.7 2,687,065,028.7 2000 41,725,215.8 51,173,638,115.5 64,535,114.8 3,071,388,241.3 2001 41,640,238.9 82,999,691,956.1 95,451,374.6 5,244,333,672.0 2002 32,953,787.4 88,940,963,071.8 94,244,093.3 4,981,373,636.9 2003 42,352,738.1 132,862,401,373.8 129,606,515.4 7,789,955,962.7 2004 46,026,817.4 112,922,686,607.3 112,761,195.1 7,190,356,743.1 2005 57,310,093.7 162,619,492,949.1 141,597,362.2 9,142,768,083.8 2006 44,495,623.4 170,184,661,003.1 138,120,145.1 6,236,615,179.2 2007 57,795,513.6 213,211,258,838.2 173,272,670.4 7,589,576,913.9 2008 51,426,207.7 205,054,092,452.9 174,409,214.4 6,629,846,700.1 2009 41,148,261.0 1,136,908,534,123.7 905,730,134.0 6,322,405,964.0 2010 39,771,833.7 263,131,442,027.7 187,427,053.5 5,876,103,557.4 2011 37,723,299.9 234,007,537,236.7 176,797,682.0 5,866,464,635.4 TOTAL 667,602,379.3 3,020,283,481,540.7 2,671,213,493.9 85,944,665,798.2 Source : Fisheries Department TRENDS OF NILE PERCH EXPORTS - 1996-2011 Table No. 51B Year Quantity Values Duties Kgs T.shs US $ T.shs 1996 20,296,124.4 19,338,404,278.7 52,277,681.3 1,185,728,961.9 1997 23,075,904.6 33,125,889,871.5 54,821,414.1 1,987,549,609.2 1998 36,386,241.0 43,258,023,811.9 65,727,795.0 2,595,481,431.8 1999 23,757,461.9 37,554,505,909.0 51,992,752.5 2,257,832,543.0 2000 30,831,841.0 36,401,237,005.8 45,903,212.8 2,184,070,656.4 2001 31,385,651.5 67,179,279,502.2 77,212,250.7 4,022,462,279.7 2002 24,888,811.0 72,028,087,135.2 76,314,520.4-2003 31,560,981.4 103,854,517,039.8 102,374,745.7 6,122,922,418.2 2004 30,312,898.3 82,356,866,789.0 76,261,406.4 5,171,324,343.0 2005 53,675,473.7 148,785,948,008.6 129,184,492.6 8,419,301,970.4 2006 39,472,977.7 156,160,190,326.6 126,829,665.7 5,491,786,878.8 2007 50,078,575.6 195,242,463,549.7 158,422,058.5 6,660,034,977.0 2008 38,721,422.2 180,366,779,818.2 153,740,732.3 5,412,912,979.2 2009 29,308,384.0 168,672,111,452.0 130,877,948.3 4,640,564,903.5 2010 27,229,470.7 194,012,069,313.9 139,666,995.1 4,509,670,993.8 2011 25,426,157.2 197,899,741,508.3 127,601,694.3 4,299,987,312.2 TOTAL 516,408,376.1 1,736,236,115,320.3 1,569,209,365.6 64,961,632,258.1 Source : Fisheries Department 165

NUMBER OF VISITORS, HOTEL BED-NIGHTS AND FOREIGN EXCHANGE EARNINGS Table No. 52 Description 2006 2007 2008 2009 2010 2011 Total number of visitors 644124 719031 770376 714367 782699 867994 Number of tourists in Hotels 592160 673722 723569 665000 719097 753818 Total Earnings( US $ million) 950 1198.76 1288.69 1159.82 1254.5 1324.83 Averrage number of bednights per visit 12 12 12 11 11 10 Average daily expenditures per 1551 2841 2091 2311 3281 3551 tourist 1112 1322 1862 1942 2362 2472 Source: Ministry of Natural Resources and Tourism, Tourism Department. 166

Table No. 53 Year NUMBER OF TOURISTS AND FOREIGN Number of Tourists EXCHANGE EARNINGS: 1995-2011 % Change Foreign exchange earnings (US $ mil.) % Change 1995 293834 12.3 258.14 34.4 1996 326192 11.0 322.00 24.7 1997 360000 10.4 392.41 21.9 1998 482331 34.0 570.00 45.3 1999 628188 30.2 733.30 28.6 2000 501668-20.1 739.10 0.8 2001 525122 4.7 725.00-1.9 2002 575000 9.5 730.00 0.7 2003 576000 0.2 731.00 0.1 2004 582000 1.0 746.08 2.1 2005 612754 5.3 823.05 10.3 2006 644124 5.1 950.00 15.4 2007 719031 11.6 1198.0 26.1 2008 770376 7.1 1354.0 13.0 2009 714367.0-7.3 1159.8-14.3 2010 782699.0 9.6 1254.5 8.2 2011 867994.0 10.9 1324.8 5.6 Source: Ministry of Natural Resources and Tourism 167

NUMBER OF TOURISTS VISITED TOURISTS ATTRACTIONS Table No. 55 Name 2006/07 2007/08 2008/09 2009/10 2010/2011 Revenues ARUSHA 55098 56076 56393 52907 65975 3,451,848,949 GOMBE 888 1012 1393 2261 1290 2,368,293,648 KATAVI 1746 2041 2359 2137 2806 2,345,439,048 KILIMANJARO 40599 42715 41967 46856 53313 20,099,305,608 KITULO 98 175 340 503 172 2,284,568,548 L/MANYARA 143916 158019 143504 146573 173487 5,059,330,875 MAHALE 1235 1293 1048 710 1003 2,408,475,248 MIKUMI 29462 33574 34912 35539 118001 2,621,683,555 MKOMAZI 887 833 925 2,288,300,148 RUAHA 19721 20958 19786 17374 23274 2,610,255,452 RUBONDO 377 432 593 643 841 2,316,033,968 SAADANI 2224 3711 4159 4564 7943 2,527,855,052 SAANANE 4131 2860 2,271,377,348 SERENGETI 272035 288185 262122 271901 622725 17,078,839,451 TARANGIRE 102693 122631 104864 80927 122244 4,726,502,122 UDZUNGWA 3003 3602 4648 4027 5808 2,335,234,842 Total 673095 734424 678975 671886 1199807 76,793,343,862 Source: Ministry of Tourism and Natural Resources, TANAPA 168

CHAPTER 13 MINING Growth Rate 285. The growth rate of mining and quarrying sub-activity in 2011 was 2.2 percent compared to 2.7 percent in 2010. The slowdown in growth was caused by decrease in mineral production in some mines. The share of mining and quarrying sub-activity to GDP was 3.3 percent as it was in 2010. Mineral Prospecting 286. In 2011, a total of 6,146 mining and prospective licences were issued compared to 5,416 licences issued in 2010, equivalent to an increase of 12 percent. Mining and Mineral Sales Diamond 287. In 2011, diamond production was 28,377.61 carats compared to 80,498.09 carats produced in 2010, equivalent to a decrease of 64.1 percent. This was caused by a decrease in production following the continued closure of Wiliamson Diamonds Limited plant which was undergoing major repair. The value of diamond export was USD 7.5 million compared to USD 16.3 million recorded in 2010, equivalent to a decrease of 54.1 percent as a result of decrease in production. Gold 288. In 2011, gold production was 36,783.81 kilograms compared to 39,448.34 kilograms produced in 2010, equivalent to a decrease of 6.8 percent. This was a result of decrease in production in some major gold mines particularly Tulawaka and Golden Pride Mines due to decrease of ore grade. On the other hand, the value of gold exports increased from USD 1,436.23 million in 2010 to USD 1,879.62 million, equivalent to an increase of 30.9 percent. Consistent with the increase of the volume of gold exports, the increase in the average price of gold in the world market contributed to the increase of gold export earnings. The average price of gold in the world market increased to USD 1,571.3 per ounce in 2011 from USD 1,224.0 per ounce in 2010. Gemstones 289. In 2011, production of gemstones was 1,241,581.52 kilograms compared to 1,250,348.4 kilograms produced in 2010, equivalent to a decline of 0.7 percent. The export value of gemstones was USD 29.11 million (of which USD 22.80 million was Tanzanite) compared to USD 31.51 million in 2010 (of which Tanzanite amounted to USD 25.39 million), equivalent to a 169

decrease of 7.6 percent. This was due to significant decrease of the price of Tanzanite (more than 50%) and other gemstones in the world market. Such a fall in price resulted into worsening in gemstones production. Coal 290. In 2011, production of coal was 2,680.01 tonnes compared to 179.45 tonnes in 2010. This huge increase was attributed to the resumption of production at Kiwira mine and commencement of coal production at Ngaka mine, which is jointly owned by National Development Agency and East Africa Pacific Corporation. Other Mining 291. In 2011, production of salt was 32,297.82 tonnes compared to 34,455.42 tonnes produced in 2010, equivalent to a decrease of 6.26 percent. This was due to decrease in production in some companies including Dawson Food Products following fall in demand of its products. In addition, the Kaolin production was 98 tonnes compared to 57.5 tonnes in 2010, equivalent to an increase of 70.4 percent. 292. In 2011, production of limestone was 1,082,920.3 tonnes compared to 1,436,594.0 tonnes produced in 2010, equivalent to a decrease of 24.6 percent. In addition, gypsum production was 12,742.1 tonnes compared to 26,918.0 tonnes produced in 2010, equivalent to a decrease of 52.7 percent. The production of tin ore was 56.56 tonnes in 2011 compared to 2.76 tonnes produced in 2010. This was attributed to increase in the price of iron sheets which attracted many miners. The value of Mineral Exports 293. The value of mineral exports in 2011 was USD 1,965.23 million compared to USD 1,536.93 million in 2010, equivalent to an increase of 27.9 percent. This was a result of increase in the average price of gold in the world market. 170

MINERAL PRODUCTION Table No. 56 Mineral Unit 2002 2003 2004 2005 2006 2007 2008 2009 2010* 2011 Diamonds Carats 239761 236582 303920 219639 272204 282786 237676 181874 80498 28378 Gold Kgs 43320 48018 48176 52236 39750 40193 36434 39112 39448 37085 Gemstones Kgs 195842 1531547 1613848 1936618 2493133 1286297 1858287 1068481 2646109 - Salt Ton 71200 58978 57062 135410 34798 35224 25897 27393 34455 4108 Phosphate Ton 1182 3738 6570 7096 2881 8261 28684 752 17180 - Limestone 000 Ton 2857 1206 1391 2780 1608 1322 1282000 1284000 1437 202 Tin Ore Ton - - - - - - - - 3 - Gypsum Ton 73000 33232 59231 63377 32798 2730 55730 8105 26918 9288 Coal Ton 79210 54610 65041 74800 17940 27198 15242 1 179 - Pozolana Ton 52000 105910 152679 163499 129295 184070 260403 61501 60320 - Kaolin Ton - - - - - 1020 13926 18624 58 178 Silver ore Kgs 7669 7986 13216 12891 14906 12381 10388 8231 12470 10399 Copper Pound 9309812 8191035 9348181 7632959 7241639 7222390 6288503 4451697 11741898 7531164 Bauxite Ton - - - 1640 5373 5003 20601 122920 39326000 29520000 Source: Ministry of Energy and Mineral Resources * Provisional data - Not available Carat = 0.205 gms 171

MINERAL EXPORTS: 2007-2011 Table No. 57 Type of mineral Unit Quantity Exported Value ('000US$) 2007 2008 2009 2010 2011** 2007 2008 2009 2010 2011** Diamonds (Rough) '000 Carats 282 221 181 181 80 28913 2238 22727 16294 7480 Diamonds (Cut) '000 Carats - - - - - - - - - Diamonds (Contract goods) '000 Carats - - - - - - - - - Gold '000 Grams 40095 36392 39112 39112 37085 888873 992802 1039456 1436233 1879622 Gemstones '000 Grams 1286297 1858107 1068481 1068481 1058580 35582 49850 20674 6119 6309 Salt Ton 17965 13523 18430 18430 32298 2174 2380 1738 4038 3699 Phosphate Ton 8261 2684 752 752 848512 715 280 148 470 425 Tin Ton - - - - - - - Gypsum Ton 2500 2024 4226 9498 11820 74 650 84 126 99 Graphite Ton - - - - - - - Silver 000grams 12381 9835 8231 12040 10399 5317 6680 4961 7673 11615 Copper 0001b 7222 6288 4452 11742 7531 21063 21063 11499 36710 30202 Indusrial mineral Ton - - - - - - - Bauxite Ton 5003 20600 122920 39326000 37700000 571 480 2127 1050 1385 Total ('000 US $) 983282 1076423 1103414 1508713 1940836 Source: Ministry of Energy and Minerals Resourses, Minerals Department - Not available * Revised Figures 172

CHAPTER 14 MANUFACTURING AND INTERNAL TRADE Growth Rate 294. In 2011, the rate of growth of manufacturing activities was 7.8 percent compared to 7.9 percent in 2010. The contribution of manufacturing activities to GDP continued to increase to 9.3 percent in 2011 from 9.0 percent in 2010. Small Enterprises 295. In 2011, the Government completed the exercise of collecting and analysing the 2011 SMEs Survey baseline. The results of this exercise showed that, there are over 2.7 million entrepreneurs groups compared to 2.0 million in 2010, equivalent to an increase of 35.0 percent. Among these groups, more than 98 percent are in the informal sector. Further, results of the survey indicated that the contribution of trade, and small and medium enterprises sector to the GDP increased from 30 percent in 2010 to 35 percent in 2011. The survey also indicated that this sector created employment for 5.1 million people. Production Costs 296. In 2011, cost of production in the industrial sector increased to shs. 2,914,708 million from shs. 2,081,934 million in 2010, equivalent to an increase of 40 percent. This was attributed to increased production costs of food, beverages, tobacco, steel, cigarettes and chemicals following high inflation and unreliable electricity. Production in Selected Industries 297. In 2011, production in selected industries such as konyagi, cigarettes, sisal ropes, clothings, chibuku, beers and steels increased. The increase was attributed to the increased demand for these products in the local market. Production of Konyagi increased by 11.2 percent from 11,186,000 litres in 2010 to 12,437,000 litres in 2011. Further, production of Chibuku increased by 15.9 percent from 21,037,000 litres in 2010 to 24,391,000 litres in 2011. Furthermore, production of iron sheets increased by 0.8 percent from 71,276 tonnes in 2010 to 71,881 tonnes in 2011. 298. The production of wheat flour increased from 444,242 tonnes in 2010 to 445,227 tonnes in 2011, equivalent to an increase of 0.2 percent. Similarly, production in breweries increased from 243 million litres in 2010 to 305 million litres in 2011, equivalent to an increase of 25.7 percent. The production of cigarettes increased by 6.3 percent from 6,181 million cigarettes in 2010 to 6,569 million cigarettes in 2011. Production in hide processing industries increased from 39.7 million square feet in 2010 to 40.2 million square feet in 2011, equivalent to an increase of 1.3 percent. 173

299. The production in textiles increased from 103,177,000 square metres in 2010 to 111,243,000 square metres in 2011, equivalent to an increase of 7.8 percent. Moreover, production of iron increased from 33,384 tonnes in 2010 to 34,881 tonnes in 2011, equivalent to an increase of 4.5 percent. Further, the production of sisal ropes increased from 6,872 tonnes in 2010 to 7,091 tonnes in 2011, equivalent to an increase of 3.2 percent. Furthermore, production of other goods in 2011 was: 15,068 tonnes of maize, 201,766 tonnes of sugar, 158,956 tonnes of soap, and soft drinks 497,189,000 litres. Internal Trade 300. In 2011, the rate of growth of trade activities decreased slightly by 8.1 percent compared to 8.2 percent in 2010, whereas trade activities include wholesale trade, retail and repairs. Moreover, the contribution of trade activities to the GDP was 12.2 percent in 2011 compared to 12.1 percent in 2010. International Trade Fair 301. In 2011, countries that participated in the Dar es Salaam International Trade Fair at the Mwalimu J. K. Nyerere grounds were 17, which was the same as that of the year 2010. Further, foreign companies that participated were 141 compared to 350 companies in 2010, a decrease of 209 foreign companies. This decrease was attributed to the effects of the global economic slowdown and the emergence of political instability in the Arab countries. 302. In 2011, local exhibitors were 1,041 compared to 2,150 exhibitors in 2010, equivalent to a decrease of 759 local exhibitors. The decrease was attributed to countries or companies occupying large areas hence denying space for other participants. However, the number of people who visited the 2011 exhibition increased to 819,273 from 761,601 people in 2010, equivalent to an increase of 7.6 percent. Further, in 2011, the Dar es Salaam International Trade Fair at the Mwalimu J. K. Nyerere grounds reached the highest standards of international quality by being awarded a clean certificate from the Federation of the World Trade Fair (UFI). 303. In 2011, the Ministry in collaboration with Tanzania Trade Development Authority (TanTrade) sensitized entrepreneurs to participate in the International Exhibition of Dar es Salaam and Sectoral Exhibition. In addition, the Ministry encouraged and facilitated entrepreneurs to participate in various international exhibitions such as the Nairobi International Trade Fair; African Commodity Exhibition Yiwu, China; International Exhibition of Mozambique; Malawi International Exhibition; and the EXPO 2010 Exhibition held in Shanghai, China. 174

PRODUCTION AND CONSUMPTION OF CEMENT Table No.58 Tons Year Imported Exported Production Consuption % change 1980 30555 11110 305811 325256-4.1 1981 49325 7751 389953 431527 32.7 1982 27541 16010 333531 345062-20.0 1983 42428 20639 246919 268708-22.1 1984 16895 18974 368644 366565 36.4 1985 111341 16424 375957 470874 28.5 1986 42028 6558 434898 470368-0.1 1987 1383 11146 498261 488498 3.9 1988 9076 65765 590927 534238 9.4 1989 2145 29035 594791 567901 6.3 1990 2544 131469 663900 534975-5.8 1991 2800 67766 1022580 957614 79.0 1992 3080 63065 677388 617403-35.5 1993 3600 102282 748850 650168 5.3 1994 3160 53706 686200 617272-5.1 1995 4000 72092 739156 671064 8.7 1996 1309 104811 725755 622253-7.3 1997 2804 100165 621159 523798-15.8 1998 14388 50718 777620 741290 41.5 1999 11418 29097 832602 814923 9.9 2000 7281 30497 833092 809882-0.6 2001 56395 53517 900430 903308 11.5 2002 149079 37203 1026082 1137958 26.0 2003 166446 34396 1186434 1318484 15.9 2004 125007 37655 1280851 1368203 3.8 2005 120200 40430 1375222 1454992 6.3 2006 92711 98 1421460 1514073 4.1 2007 101827 52170 1629890 1679547 10.9 2008 356468 99688 1755862 2012642 19.8 2009 516182 57569 1940845 2399458 19.2 2010 566828 189321 2312055 2689562 12.1 2011* 768343 217944 2408765 2959164 10.0 Source: National Bureau of Statistics *Provisional 175

Table No.59 PRODUCTION IN SELECTED INDUSTRIES % Change Items Unit 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2010/11 Biscuits Ton 2284 5906 10214 10912 10565 11273 15435 15200 7435 12053 62.1 Wheat flour Ton 219118 355616 338076 368019 434160 406336 287925 368885 444242 439926-1.0 Konyagi 000 Ltr 2937 3670 4105 4489 5365 5622 4049 10201 11186 15432 38.0 Beer 000 Ltr 175870 194100 202628 216604 299036 310194 291178 284906 242689 323393 33.3 Chibuku 000 Ltr 19400 14825 10119 11106 11559 10320 10235 16141 21037 23474 11.6 Cigarrettes Million 3778 3920 4219 4445 5095 5821 6101 5831 6181 6630 7.3 Textiles 000m2 106305 116714 111637 99134 146600 139000 140531 91501 103177 101820-1.3 Sisal Ropes Ton 5901 6839 5161 5943 5854 7012 7783 7913 6872 6976 1.5 Fish nets Ton 30 41 260 274 119 156-64 247 164-33.6 Canvas 000 m2 - - - - - - - 37152 - Wood products 000 Ton 304 32609 40248 37941 44310 45147 44547 266-30589 Pyrethrum product 000 Ton 36 16 23 25 33 33 73-49 70 42.9 Fertilizer 000 Ton - - - - - - 25762 - - Paints 000 Ltr 13564 16842 16621 16222 18402 17451 24857-28201 31710 12.4 Petroleum products 000 Ton - - - - - - - 1941 - - Cement 000 Ton 1026 1186 1281 1366 1422 1630 1756 34793 2313 2409 4.2 Iron sheets Ton 25418 38794 41710 41299 44482 52163 39969 34793 33384 39955 19.7 Corrugated iron Ton 31742 31018 29573 29737 29898 36492 31743 50664 71276 76912 7.9 Aluminium Ton 141 199 171 183 105 110 105 58 59 33-44.1 Radio 000 Number - - - - - - - - - Batteries Million 42 43 74 81 82 75 53 78 93 89-4.3 Source: National Bureau of Statistics - No production 176

Table No. 60 ISIC (Rev 3) Employees Others Total 2008 2009* 2010** 2011** 2008 2009* 2010** 2011** 2008 2009* 2010** 2011** 151-4 Food processing 43491 36668 44365 46584 299 377 305 320 43790 37045 44670 46904 155 Beverages 5797 5387 5914 6209 49 63 50 52 5846 5450 5964 6262 160 Tobacco and Cigarettes 6747 3815 6883 7227-0 0 0 0 3815 6883 7227 171-2,181 Textile Manufacturing 11752 12631 11988 12588 231 57 236 247 11983 12688 12224 12835 191 Skins and Skins products 635 438 648 680 4 2 4 4 639 440 652 684 192 Shoes 803 216 819 860 5 0 5 5 808 216 824 865 201-202 Timber and timber products 755 1088 770 809 24 46 24 26 779 1134 795 834 210-221-222 Manufac. of paper product, printing 5467 6265 5577 5856 90 167 92 96 5557 6432 5669 5952 241-2 Manufacturing of chemical 2886 3725 2944 3091 29 100 30 31 2915 3825 2974 3122 251 Rubber products 1203 53 1227 1289 12 43 12 13 1215 96 1239 1301 252 Maufac. of plastic products 4112 4188 4195 4404 13 45 13 14 4125 4233 4208 4418 261-9 Manufacturing of nonmetallic products 2461 2323 2510 2636 29 52 30 31 2490 2375 2540 2667 271-369 Others 20096 18894 20500 21525 396 438 404 424 20492 19332 20904 21949 Total 106205 95691 108340 113757 1181 1390 1205 1265 100639 97081 109545 115022 Source: National Bureau of Statistics * Revised Figures ** Estimates Formal Industries are those with 10 employees and more Note Activities 1. The survey use "International Standard Industrial Classification Revision 3 (ISIC Rev3)" 2. 2006-2009 data are revised INDUSTRIES - ESTIMATED NUMBER OF EMPLOYEES 3. 2010-2011 data are estimates from 2008 and 2009 data and quarterly Survey 177

Table No. 61 ISIC (Rev 3) (Sh.million) Salaries Other Payments Total 2008 2009* 2010** 2011** 2008 2009* 2010** 2011** 2008 2009* 2010** 2011** 151-4 Food Processing 52689 75131 53748 56435 22890 30482 23350 24517 75579 105613 77098 80953 155 Beverages 36275 51012 37004 38854 20637 17551 21052 22104 56912 68563 58056 60958 160 171-2, Tobacco and Cigar ettes 17375 8204 17725 18611 9540 5324 9732 10218 26915 13528 27456 28829 181 Textile Manufacturing 10262 10047 10469 10992 3966 2540 4045 4248 14228 12587 14514 15240 191 Skins and skins products 478 3477 488 512 111 813 113 118 589 4290 601 631 192 Shoes 1032 239 1053 1105 396 197 404 425 1428 436 1457 1530 201-202 Timber and timber products 760 1995 775 814 218 1119 222 233 978 3114 997 1047 210-221- 222 Manuf. of paper products, printing 17801 15895 18159 19067 5742 9601 5857 6150 23543 25496 24016 25217 241-2 Manufacturing of chemical 7305 12135 7451 7824 4232 7181 4317 4533 11537 19316 11769 12357 251 Rubber products 5684 304 5798 6088 1418 3668 1446 1518 7102 3972 7244 7607 252 Manufacture of plastic products 6272 6020 6398 6718 5242 1536 5347 5614 11513 7556 11745 12332 261-9 Manufacture of non-metallic products 75504 18297 77022 80873 8492 8279 8662 9095 83996 26576 85684 89968 271-369 Others 43981 45540 44865 47108 32557 14850 33211 34872 76537 60390 78076 81980 Total 275418 248296 280954 295002 115439 103141 117759 123647 390857 351437 398713 418648 Source: National Bureau of Statistics * Revised Figures ** Estimates Formal Industries are those with 10 employees and more Note Activities 1. The survey use "International Standard Industrial Classification Revision 3 (ISIC Rev3)" 2. 2006-2009 data are revised 3. 2010-2011 data are estimates from 2008 and 2009 data and quarterly Survey INDUSTRIES - ESTIMATED LABOUR COSTS 178

Table No.62 (Tshs. Millions) Earnings Costs Value Added Depreciation ISIC (Rev 3) Activities 2008 2009* 2010** 2011** 2008 2009* 2010** 2011** 2008 2009* 2010** 2011** 2008 2009* 2010** 2011** 151-4 Food processing 1109701 1509481 1223445 1284618 630456 1015773 695078 729832 479245 493709 528367 554786 30769 78028 33923 35619 155 Bevarages 842392 862033 928737 975174 536900 362680 591932 621529 305492 499353 336804 353645 40414 36476 44556 46784 160 Tobacco and Cigarettes 262120 270390 288987 303436 163175 131493 179901 188896 98945 138897 109086 114541 19731 8577 21753 22841 171-2, 181 Textile Manufacturing 189689 217164 209132 219588 108723 104775 119867 125860 80966 112390 89265 93728 20754 11586 22881 24025 191 Skins and Skins products 8772 18411 9671 10155 5949 14991 6559 6887 2823 3419 3112 3268 277 1780 306 321 192 Shoes 8134 9068 8967 9416 4952 7384 5459 5732 3182 1684 3508 3684 603 877 665 698 201-202 Timber and timber products 12077 65272 13315 13981 6175 46069 6808 7148 5902 19203 6507 6833 448 5116 494 519 210-221-222 Manuf. of paper products, printing 181957 157997 200607 210638 102339 108153 112829 118470 79618 49844 87779 92168 8068 7376 8895 9340 241-2 Manufacturing of chemical 262743 443673 289674 304158 152480 296794 168109 176515 110263 146879 121565 127643 7191 14158 7928 8325 251 Rubber Products 149156 16296 164445 172667 77616 7206 85572 89850 71540 9090 78873 82817 2163 730 2385 2504 252 Manufacture of plastic products 427974 116192 471841 495433 297107 51383 327561 343939 130866 64809 144280 151494 8944 5203 9860 10353 261-9 Others 344234 450190 379518 398494 220977 233025 243628 255809 123257 217165 135891 142685 28597 47743 31528 33105 271-369 Manufacture of non-metallic products 912429 812180 1005953 1056250 607144 521949 669376 702845 305285 290231 336577 353405 31964 35188 35240 37002 Total 4711376 4948347 5194293 5454007 2913993 2901675 3212678 3373312 1797383 2046673 1981614 2080695 199924 252838 220415 231436 Source: National Bureau of Statistics * Revised Figures ** Estimates Formal Industries are those with 10 employees and more Note 1. The survey use "International Standard Industrial Classification Revision 3 (ISIC Rev3)" 2. 2006-2009 data are revised 3. 2010-2011 data are the estimates from 2008 and 2009 data and quarterly Industries Summary Statistics 179

Table No.63 Number of Workers Permanent Employees Salaries (TShs. Million) Gross Value Added (Tshs. Million) 2008 2009* 2010** 2011** 2008 2009* 2010** 2011** 2008 2009* 2010** 2011** 2008 2009* 2010** 2011** Dodoma 231 168 235 247-152 234 246 169 584.146 613-2483 8562.21 8990 Arusha, Manyara 15296 15312 15603 16384 3295 15230 15495 16270 7076 10446 22329 23445 72285 138690 356830 374671 Kilimanjaro 11548 4467 11780 12369 6964 4454 11699 12284 10408 17150 12308 12924 31858 32629 137290 144154 Tanga 10054 5634 10256 10768 8487 5600 10185 10694 10443 15415 12225 12837 20187 105868 237041 248893 Morogoro 8123 16912 8286 8701 11283 16851 8229 8640 22689 29360 21453 22525 49729 146372 288858 303301 Pwani, 24155 32855 24640 25872-32097 24025 25226-124439 133234 139895-1242636 624421 655641 Dar es Salaam, Cost 61 58 62 65 27686 55 61 64 80932 44 79 83 410062 1000 435 457 Lindi 115 262 118 124 26 248 117 123 21 672 1512 1588 34 17212 4139 4346 Mtwara 977 350 997 1047 62 327 990 1040 745 911 534 560 11 45320 7505 7880 Ruvuma 9099 6391 9282 9747 2002 6374 9218 9679 731 16837 16578 17407 1179 56621 32645 34277 Iringa 2884 2426 2942 3089 15363 2381 2922 3068 14749 6994 6322 6638 15028 60718 22191 23300 Mbeya 238 470 243 255 2842 374 241 253 3807 269 533 559 24975 1435 2312 2428 Singida 807 39 823 865 21 35 818 859 3 89 1330 1396 0 175 4447 4669 Tabora 128 296 130 137 224 291 130 136 19148 588 1037 1089 32586 4081 1360 1428 Rukwa 678 157 692 727 82 106 687 722 20 113 1575 1654 123 2928 5324 5590 Kigoma 2195 517 2239 2351-512 2223 2334-1052 10089 10593-3727 19140 20097 Shinyanga 9511 5745 9702 10187 221 5694 9634 10116 2668 14828 9757 10244 30270 68970 32941 34588 Kagera 7181 3421 7326 7692 1794 3354 7275 7639 3628 7434 13729 14415 42160 81636 102088 107192 Mwanza 3445 1224 3515 3690 6979 1197 3490 3665 9302 1310 10053 10555 30805 33759 82384 86503 Mara 659 377 673 706 3800 359 668 701 7535 178 5696 5980 15594 409 11703 12288 Jumla 107386 97081 109545 115022 91130 95691 108340 113757 193907 248298 280954 295002 776884 2046669 1981615 2080695 Source: National Bureau of Statistics * Revised Figures ** Estimates Formal Industries are those with 10 employees and more Note Region 1. The survey use "International Standard Industrial Classification Revision 3 (ISIC Rev3)" 2. 2006-2009 data are revised INDUSTRIES: REGION SUMMARIES 3. 2010-2011 data are estimates from 2008 and 2009 data and quarterly Survey 180

PERFORMANCE INDICATORS IN THE MANUFACTURING ACTIVITIES Table No. 65 % Contribution Growth in % Contribution % Contribution % Change Year to GDP manufacturing Activites to Total Exports to Non-traditional in industrial (at 2001 prices) (at 2001 prices) Exports Exports 1998 8.37 5.5 6.10 15.40-1999 8.47 6.0 5.50 12.40-15.7% 2000 8.46 4.8 6.50 11.71 44.2% 2001 8.38 5.0 7.23 9.05 29.4% 2002 8.40 7.5 7.40 8.52 17.3% 2003 8.57 9.0 6.79 8.42 27.2% 2004 8.69 9.4 8.28 9.37 31.4% 2005 8.87 9.6 9.31 11.81 41.8% 2006 9.02 8.5 11.23 13.81 25.4% 2007 7.80 8.7 15.28 18.14 57.9% 2008 7.80 9.9 23.84 28.48 139.9% 2009 9.54 8.0 17.74 21.32-31.7% 2010 9.61 7.9 25.64 30.25 90.3% 2011 9.74 7.8 19.43 22.88-10.6% Source: Ministry of Finance 181

.CONSTRUCTION Growth Rates CHAPTER 15 CONSTRUCTION AND LAND DEVELOPMENT 304. In 2011, the growth rate of construction sub-activity was 9.0 percent compared to 10.2 percent in 2010. The slowdown in growth was mainly due to a decline in construction and rehabilitation activities of roads and bridges, as well as transport activities and land development. In addition, the share of construction sub-activity to GDP was 8.0 percent as it was in 2010. Road Network 305. Tanzania has a total of 86,472 kilometres of road network. Out of those, 12,786 kilometres are trunk roads which connect Tanzanian regions and neighbouring countries, including 5,478 kilometres equivalent to 43 percent of tarmac roads. In addition, 21,105 kilometres are regional roads which connect districts and major towns, of which 840 kilometre, equivalent to four percent, are tarmac road. Moreover, 52,581 kilometres are districts roads which connect districts and villages and feeder roads. 306. In 2011, a total of 29,369 kilometres of roads was assesed. Out of those, 5,727 kilometres of trunk roads, equivalent to 59.1 percent were in good condition compared to 8,364.73 kilometres, equivalent to 65 percent in 2010. This means that the quality of roads decreased by 5.9 percent in 2011. A total of 3,096 kilometres of trunk roads, equivalent to 32 percent were in fair condition compared to 3,578.53 kilometres, equivalent to 28 percent in 2010. In addition, a total of 862 kilometres, equivalent to 9 percent were in bad condition compared to 842.93 kilometres, equivalent to 7 percent in 2010. 307. In 2011, a total of 5,976 kilometres of regional roads, equivalent to 30.4 percent were in good condition compared to 11,012 kilometres in 2010 which was equivalent to 53.3 percent. In addition, a total of 10,284 kilometres of regional roads, equivalent to 52.2 percent were in fair condition compared to 7,069.02 kilometres in 2010, equivalent to 34.2 percent. Moreover, a total of 3,424 kilometres, equivalent to 17.4 percent were in poor condition compared to 2,592 kilometres in 2010, equivalent to 12.5 percent. Table 15.1 shows the condition of road network up to December 2011. 182

Table No. 15.1: Condition of Road Network as of end December, 2011 Road Type Good Fair Poor Total Km % Km % Km % Km Trunk Roads Tarmac 4,611 83 624 11 311 6 5,546 Gravel Roads 1,116 27 2,472 60 551 13 4,139 Sub-total 5,727 3,096 862 9,685 Regional Roads Tarmac 468 58 199 25 146 18 813 Gravel/Earth Roads 5,508 29 10,085 53 3,278 17 18,871 Sub-total 5976 10,284 3,424 19,684 Grand Total 11,703 13,380 4286 29,369 Source: Ministry of Works Roads and Bridges Maintenance 308. In 2011, the Government through Tanzania Roads Agency (TANROADS) rehabilitated a total of 28,647 kilometres of regional and trunk roads and 2,480 bridges. A total of shilling 119.331 billion, equivalent to 67 percent of the approved budget, was used for rehabilitation. Road Board Fund 309. In 2011, the Road Board Fund collected a total of shilling 401.935 billion compared to shilling 278.231 billion collected in 2010, equivalent to an increase of 44.5 percent. The increase was a result of measures taken to control fuel adulteration which would otherwise lead to reduction of fuel levy. Further, the Government continued to monitor Fund s expenditure by undertaking technical and financial auditing on road projects in order to ensure value for money. In doing so, the Board initiated a system of using local consultants in undertaking technical and value for money auditing during the implementation of development projects. Contractors Registration Board 310. In 2011, the Contractors Registration Board continued to register contractors who comply with stated standards and adhere to public safety. In addition, the Board continued to implement the five years Strategic Plan (2010-2014) focusing on increasing efficiency in four major areas, namely: ethics in construction sector particularly contractors business; contractors capability and competence; safety to workers in working places and public at large; and efficiency of the Board. 183

311. In 2011, the Board registered 863 new contractors compared to 860 contractors registered in 2010. In addition, in 2011, the Board inspected 2,760 construction projects compared to 2,112 projects inspected in 2010. Out of the inspected projects in 2011, a total of 1,912 projects were free from defects while 848 projects were found to have various defects such as non adherence to health and work safety issues. Necessary legal measures were taken against contractors whose projects were found to have defects. 312. In 2011, the Board conducted contractors training in Shinyanga, Rukwa, Dar es Salaam, and Mtwara regions whereby a total 287 participants attended. Further, the Board conducted stakeholders consultative meetings in collaboration with Engineers Registration Board and Architects and Quantity Surveyors Registration Board which were held in Dar es Salaam. Furthermore, the Board conducted technological, equipment and construction services exhibition in Dar es Salaam and was attended by 2,500 participants compared to 1,231 participants who attended the same exhibition in 2010. Out of those, over 900 participants were contractors. Moreover, in 2011, the Government started preparation of a special strategy to enhance capacity of local contractors in order to increase their capability of undertaking large infrastructure projects. Engineers Registration Board 313. In 2011, Engineers Registration Board registered 1,017 engineers from various cadre and 41 consulting engineers firms, compared to 582 engineers and 14 consulting engineers firms registered in 2010. Likewise, the Board continued to establish more regional consulting engineers firms. Generally, the Board performed well in registration issues. Table No. 15.2: Registration of Engineers (2009 2011) Types of Registration Registered Registered Registered Change in 2009 in 2010 in 2011 (%) Graduate Incorporated Engineers: (GIE) 25 23 20-13.0 Incorporated Engineers (IE) 13 5 4-20.0 Graduate Engineers: (GE) 525 411 594 44.5 Professional Engineers (PE) 165 67 173 158.2 Temporary Professional Engineers (TPE) 91 65 190 192.3 Consulting Engineers: (CE) 17 9 24 166.7 Temporary Consulting Engineers TCE 9 2 12 500 Local Engineering Consulting Firms 9 6 14 133.3 (LECF) Foreign Engineering Consulting Firms 8 8 27 237.5 (FECF) TOTAL 862 596 1,058 77.5 Source: Ministry of Works 314. In 2011, the Board coordinated implementation of practical training program for 899 graduate engineers. Statistics for graduate engineers who 184

joined the practical training program in 2002/03 2010/11 are shown in table No. 15.3 Table 15.3 Graduate Engineers from Practical Training Program (2002/03-2010/11) Year Joined Engineers Financed by the Government Financed by their employers Engineers completed training Employed before completed Postponed Engineers 2002/03 120 110 10-60 8 2003/04 169 162 7 20 95 9 2004/05 212 195 17 10 120 15 2005/06 167 137 30 121 81 12 2006/07 218 113 105 78 85 20 2007/08 159 128 31 136 34 12 2008/09 265 156 109 140 79 41 2009/10 263 104 159 176 60 12 2010/11 224 44 180 218 70 15 Total 1797 1149 648 899 684 144 Source: Ministry of Works Architects and Quantity Surveyors Registration Board 315. In 2011, the Architects and Quantity Surveyors Registration Board registered 17 architects and 14 quantity surveyors compared to 20 architects and 13 quantity surveyors registered in 2010. This registration is equivalent to an increase of 31 professionals which makes a cumulative number of technicians registered by the Board to be 520. In addition, the Board registered 13 architect companies and 7 quantity surveyor companies in 2011 compared to 13 architect companies and 8 quantity surveyor companies registered in 2010. This is equivalent to an increase of 20 companies which make a cumulative number of 259 companies registered. 316. In 2011, the Board registered 39 quantity surveyors and architects who are in middle cadre compared to 8 technicians registered in 2010. This increase makes the total number of middle cadre technicians registered by the Board to be 105 in 2011. The increase in registration was a result of Government efforts to encourage graduate engineers with relevant qualifications to adhere to Act No. 4 of 2010 which requires them to be registered by the Board. In addition, implementation of Enhanced Articled Pupilage Programme which is financed by the Government for both cadres resulted in to an increase of qualified graduates registered by the Board. 317. In 2011, the Board deregistered one architecture, one quantity surveyor and one architect firm, all of which were foreign, following the completion of their registered projects. Likewise, inspection of buildings was carried out in 185

19 regions of Tanzania mainland. In that process, 1,196 building projects were inspected compared to 1,296 projects inspected in 2010. National Building Council 318. In 2011, the National Building Council conducted training to 250 stakeholders on tender issues; contract management and claims on road construction costs; repair and rehabilitation of buildings; and disputes resolutions. In addition, technical audit of 100 construction projects worth shilling 5.5 billion was conducted in 20 district councils. The shortcomings revealed from the audit include improper use of project s contracts during its implementation; non adherence to the PPRA Act No.21 of 2004 and poor project management. Tanzania Building Agency 319. In 2011, the Tanzania Building Agency continued to manage various projects of constructing residential houses for Honorable Judges in Ruvuma, Dar es Salaam, Tanga, Arusha, Tabora, Mwanza, Mbeya and Dodoma regions. Likewise, the Agency continued to build residential houses for District Commissioners in Bariadi, Urambo and Siha as well as construction of residential houses for other Government leaders in Kasulu district and Kagera, Kilimanjaro, Mtwara, and Iringa regions. Further, the Agency managed 94 projects in different regions whereby a total of shilling 917,148,903.0 were collected. However, the pace of constructing civil servants houses was not satisfactory due high cost of plots; lack of supportive infrastructures in respective plots; and high construction cost. Tanzania Electrical, Mechanical and Services Agency 320. In 2011, Tanzania Electrical, Mechanical and Services Agency maintained 5,137 cars, equivalent to 58 percent of the target of maintaining 8,822 cars per year. The under performance was due to higher cost of spare parts and machines. In addition, the Agency implemented 126 electrical projects, 4 electronics projects, 26 ices and air condition projects and 37 consulting projects in 2011. LAND DEVELOPMENTS Village Survey 321. In 2011, a total of 261 villages were surveyed compared to 1,207 villages surveyed in 2010. The decrease was due to the completion of surveying excercise for 11,000 villages that were registered up to 2010. Therefore, the surveyed villages in 2011 were due to the fact that villages were devided more than once, thus making the total number of surveyed villages to be 11,261. 186

Table No. 15.4: Number of Villages Surveyed Districts Number of Villages surveyed in 2010 Districts Number of Villages surveyed in 2011 Singida Rular 35 Bariadi 99 Bahi/Chamwino 54 Meatu 29 Tarime 39 Maswa 52 Rorya 63 Kishapu 46 Sengerema 23 Korogwe 35 Muleba 98 - - Misenyi 73 - - Karagwe 45 - - Ngara 68 - - Kigoma Rural 21 - Kahama 221 - - Bariadi 22 - - Tabora Rural 127 - - Babati 5 - Kilosa/Mahenge 87 - - Shinyanga 226 - - Rular/Kishapu Total 1,207 261 Source: Ministry of Land, Housing and Human Settlement Development Inspection and Review of Title Deeds 322. In 2011, a total of 3,535 title deeds were reviewed compared to 4,317 title deeds reviewed in 2010. During the review process, a total of 58 land disputes were reported whereby 46 land disputes (79 percent) were resolved at administratively and 12 disputes were not resolved and the concerned people were advised to seek court resolution. In addition, a total of 950 title deeds were transferred after following legal procedures. Issuance of Village Land certificates and Customary Title Deeds 323. In 2011, out of the surveyed villages, 3,283 village land certificates were issued compared to 3,265 certificates in 2010, thus making cumulative registered certificates to be 7,510. In addition, a total of 46,063 customary title deeds were issued compared to 93,400 customary title deeds issued in 2010, making a total of 157,968 customary title deeds issued all over the country. The decreased in the number of customary title deeds issued was due to the fact that, significant work was done in 2010 in the pilot project areas. 187

Moreover, 23 land offices registrars were established and make a total of 408 registrar offices throughout the country in 2011. Table Na. 15.5: Village Land Certificate and Customary Title Deeds Issued in 2005-2011 Regions Village Land Certificate Customary Title Deeds Coast 269 4,654 Morogoro 248 803 Dodoma 295 694 Singida 368 6,428 Mtwara 577 307 Lindi 358 1362 Kagera 386 104 Shinyanga 862 62,668 Tabora 225 0 Mwanza 557 134 Mara 268 4072 Kigoma 190 0 Kilimanjaro 237 2714 Arusha 161 156 Tanga 361 2,057 Manyara 247 28,526 Mbeya 727 21,467 Iringa 651 14,265 Rukwa 261 984 Ruvuma 262 6,297 Total 7,510 157,692 Source: Ministry of Land, Housing and Human Settlement Development Title Deeds Issuance 324. In 2011, the Government registered a total of 26,880 title deeds compared to 21,170 title deeds registered in 2010. In addition, during the period, a total of 28,572 documents were registered under the Land Registration Act (No. 334); 7,449 documents were registered under the Registration of Documents Act (No.117); and 600 documents under the Registration Procedures for Movable Asset Act (No. 210). 188

Table Na. 15.6: Title Deeds Issuance in 2010 and 2011 Office Title Deeds 2010 Title Deeds 2011 Eastern Zone (Dar es Salaam) 15,561 7,948 Lake Zone (Mwanza) 1,961 6,300 Southern- North Zone (Mbeya) 1,223 4,544 Northern Zone (Moshi) 1,400 5,400 Central Zone (Dodoma) 600 1,551 Southern Zone (Mtwara) 425 1,137 Total 21,170 26,880 Source: Ministry of Land, Housing and Human Settlement Development Aquatic Land Survey 325. In 2011, the aquatic land mark and symbols in the coastal areas of Tanzania were inspected. The completion of this inspection will facilitate accurate surveys of marine areas which include shallow and deep water areas as well as Marine Economic Zone. Surveyed Farms and plots 326. In 2011, a total of 26,788 plots and 706 farms were surveyed compared to 37,820 plots and 600 farms in 2010, as it is shown in Table 15.7. 189

Table No. 15.7: Total Number of Surveyed Plots and Farms Title Deeds issued 2010 Title Deeds issued 2011 Regions Plots Farms Plots Farms Arusha 1,727 85 1,294 144 Coast 2,826 226 1,714 134 Dar es salaam 8,228 5 2,425 0 Dodoma 414 1 345 13 Iringa 3,192 10 2,102 31 Kagera 1,220 46 236 108 Kigoma 51 2 448 0 Kilimanjaro 2,808 36 1,043 95 Lindi 568 0 185 19 Manyara 1,115 15 1,075 2 Mara 370 6 818 22 Mbeya 1,098 51 1,361 40 Morogoro 414 53 1,988 20 Mtwara 974 1 1,612 2 Mwanza 6,076 20 5,060 20 Rukwa 262 6 280 6 Ruvuma 655 12 549 1 Shinyanga 1,801 10 1052 6 Singida 562 1 848 0 Tabora 1,678 15 624 23 Tanga 1,781 8 1,729 20 Total 37,820 609 26,788 706 Source: Ministry of Land, Housing and Human Settlement Development Land and House District Councils 327. In 2011, Land and House District Councils continued to resolve 13,203 land and house disputes that existed since 2010 and 12,643 other disputes reported 2011. In addition, in 2011 a total of 10,092 disputes were resolved and 15,754 disputes are pending resolution. 190

Table No. 15.8: Land and House Disputes Resolution Councils Reported Disputes up to June 2010 Reported Disputes from July 2010 to June 2011 Resolved Disputes From July 2010 to June 2011 Disputes Pending resolution up to June 2011 Arusha 791 454 351 894 Babati 401 411 347 465 Bukoba 855 880 805 930 Dodoma 343 432 301 474 Ilala 849 489 300 1,038 Iringa 380 217 173 424 Kigoma 285 271 262 294 Kinondoni 1,075 610 451 1,234 Lindi 48 95 70 73 Mbeya 616 484 336 764 Morogoro 634 523 306 851 Moshi 387 371 376 382 Mtwara 27 111 97 41 Musoma 361 534 539 356 Mwanza 1,538 635 375 1,798 Pwani 265 359 289 335 Rukwa 150 203 236 117 Shinyanga 306 265 400 171 Singida 128 263 220 171 Songea 64 172 84 152 Tabora 216 180 154 242 Tanga 370 214 217 367 Temeke 641 1,572 1,039 1,174 Chato 706 128 90 744 Geita 406 216 210 412 Ifakara 204 421 340 285 Karatu 54 48 40 62 Mbinga 22 163 151 34 Njombe 131 101 113 119 Rungwe 191 274 279 186 Same 24 60 42 42 Tarime 458 390 250 598 Simanjiro 72 130 106 96 Kondoa 24 176 175 25 Korogwe 83 350 271 162 Mkuranga 60 91 79 72 Maswa 38 205 110 133 Ukerewe 0 93 91 2 Iramba 0 52 17 35 TOTAL 13,203 12,643 10,092 15,754 Source: Ministry of Land, Housing and Human Settlement Development 191

Land Use Plan 328. In 2011, Government prepared land use plans in 158 villages compared to 128 villages in 2010. The plans were prepared for Kilosa, Kasulu, Songea, Nanyumbu, Mbarali, Mbozi, Ileje, Kisarawe, Mafia, Muleba, Njombe, Mufindi, Kilolo, Arusha, Kilindi, Handeni, Tanga, Kondoa, Babati, Rufiji, Kilwa, Bariadi and Maswa Councils. The Plans were prepared with the aim of facilitating land users to have sustainable plans that focus on current and future needs. Thus, in preparing those plans, which were participatory, social services areas as well as reserves for water sources, forestry, livestock keeping, wild animals, irrigation and plantations were demarcated. HUMAN SETTLEMENTS AND RURAL DEVELOPMENT National Housing Building Research Agency 329. In 2011, National Housing Building Research Agency continued to undertake research and invent technics of constructing low cost houses that uses local materials. In addition, the Agency continued to provide practical training for construction groups established in villages, wards and Districts. Land Bank 330. In 2011, a total of 106 areas were identified in 11 Councils for investments activities. The Councils and villages inspected were: Tanga, 8 villages; Kisarawe, 15 villages; Kilwa 16 villages; Lindi, 10 villages; Mkinga, 10 villages; Rufiji, 13 villages; Muheza, 3 villages; Morogoro, 9 villages; Chunya, 6 villages; Kilombero, 10 villages; and Iringa, 6 villages. This excercise is the initial stage towards the establishment of Land Bank that will eradicate land disputes in the country between investors and general public. Housing Development 331. Following the approval of Mortgage Finance Act 2008, the Government established Tanzania Mortgage Refinancing Company (TMRC) in 2011 to facilitate provision of low interest long term loans for housing mortgage. The Company extends loans to commercial banks for on-lending to general public at lower interest rates than the existing market rates. Up to April 2012, Banks which bought shares from TMRC were Tanzania Investment bank, Azania Bancorp, Exim Bank, National Microfinance Bank, CRDB Bank and Dar es salaam Community Bank. Those banks have already started to provide low interest housing mortgage. 332. In 2011, the Government through National Housing Cooperation (NHC) signed Memorandum of Understanding (MoU) with seven commercial banks which showed willingness to provide loans for buying houses that are built by NHC. Banks which signed the MoU with NHC were: NMB; NBC; Kenya Commercial Bank (Tanzania) Limited; Exim Bank (Tanzania) Limited; 192

Commercial Bank of Africa (Tanzania) Limited; Bank of Africa BOA (Tanzania) Limited and Azania Bank (Tanzania) Limited. 333. In 2011, NHC completed construction of 86 residential houses for sale. The houses were in: Mbweni JKT - Dar es Salaam (34 houses); Kibla - Arusha (48 houses); and Kiwanya 55 Haile Selasie Arusha (4 houses). In addition, NHC started implementation of projects which have a total of 278 houses and were at different stages of implementation. These projects together with their associated costs and revenue are shown in table 15.9. 334. In 2010, there were 75 large house construction projects with shop services, residential houses and offices and were at different stages of implementation. Out of those, 15 projects were completed in 2011 and 66 projects are still under implementation. Table No.15.9: Housing Projects for Sale in 2011 2010 2011 Costs (Tshs. miln.) Income (Tshs. miln.) Number Number Miradi Actual of of Estimates Expenditure Houses Houses Target Collected Medeli, Dodoma 0 150 14,710.1 3,433.60 20,338.40 233.7 55 Haile Selasie, Arusha 4 0 350.0 0 1,762.0 1,762.0 Ubungo, Dar es Salaam 0 80 5,478.3 670 6,414.2 2,442.9 Kibla, Arusha 48 0 200.0 183.9 9,929.8 3,132.6 Mbweni JKT, Dar es Salaam 34 0 210.0 202.5 15,067.1 596.7 Mchikichini, Dar es Salaam 0 48 4,847.7 3.60 9,529.1 323.1 Total 86 278 25,796.1 4,493.6 63,040.6 8,491 Source: Ministry of Land, Housing and Human Settlement Development 193

CHAPTER 16 TRANSPORT AND COMMUNICATION Growth Rates 335. In 2011, transport sub-activity grew by 6.7 percent compared to 7.0 percent in 2010. On the other hand, communication sub-activity grew by 19.0 percent compared to 22.1 percent in 2010. The slow down in growth in transport sub-activity was caused by a decrease in cargo transportation services at Tanga, Mtwara and Kigoma Ports. In addition, the decline in the growth rate of communication sub-activity was caused by a slow down in the pace of investment in communication sector. Transport sub-activity contributed 8.0 percent to GDP in 2011 as it was in 2010, whereby the contribution of communication sub-activity increased marginally to 2.2 percent in 2011 from 2.1 percent in 2010. TRANSPORT Road Transport 336. In 2011, Surface and Marine Transport Regulatory Authority (SUMATRA) issued 33,020 licences and 3,923 time tables for commuter buses compared to 31,606 licences and 3,420 time tables issued in 2010, equivalent to an increase of 4.5 and 14.7 percent respectively. In addition, a total of 49,057 licences were issued for cargo transportation compared to 43,363 licences issued in 2010, equivalent to an increase of 13.1 percent. The increase was a result of initiatives taken by the authority to bring license services close to the transporters, as well as the increase in transport facilities. Urban Commuter Services 337. In 2011, commuter buses in urban areas increased by 13.1 percent to 33,020 buses from 31,606 buses in 2010. Urbans centers with many commuter buses included Dar es Salaam, Arusha, Kilimanjaro, Mwanza and Mbeya. On the other hand, as of July 2011, Dar es salaam City had a total of 1,568 mini buses compared to 1,747 mini buses in 2010, equivalent to a decrease of 10.3 percent. The decrease of the number of mini buses in Dar es Salaam was a result of measures taken by SUMATRA to restrict renewal and issuance of new licences so as to reduce congestion in the city centre. In addition, during the same period, the number of buses increased to 4,574 from 4,182 buses in July 2010, equivalent to an increase of 9.4 percent. 194

Table No. 16.1: Number of Commuter Buses and Trucks in Urban Areas 2010 2011 % Change REGIONS Buses Trucks Buses Trucks Buses Trucks Arusha 4,672 4,661 4,878 4,742 4.4 1.7 Dar Es Salaam + Pwani 12,644 21,099 11,469 24,166-9.3 14.5 Dodoma 1,430 1,265 1,582 1,242 10.6-1.8 Iringa 626 1,027 803 989 28.3-3.7 Kagera 519 608 787 737 51.6 21.2 Kigoma 641 190 770 222 20.1 16.8 Kilimanjaro 2,707 2,759 3,160 3,065 16.7 11.1 Lindi 142 106 152 106 7.0 0.0 Manyara 181 178 263 213 45.3 19.7 Mara 378 134 552 250 46.0 86.6 Mbeya 1,433 1,748 1,303 1,938-9.1 10.9 Morogoro 949 893 1288 1311 35.7 46.8 Mtwara 230 454 323 372 40.4-18.1 Mwanza 2,380 2,946 2,491 3,326 4.7 12.9 Rukwa 78 409 164 464 110.3 13.4 Ruvuma 338 422 417 408 23.4-3.3 Shinyanga 253 717 336 1,109 32.8 54.7 Singida 583 644 786 871 34.8 35.2 Tabora 252 351 342 493 35.7 40.5 Tanga 1,170 2,752 770 222-34.2-91.9 Total 31,606 43,363 33,020 49,057 4.5 13.1 Source: SUMATRA 338. In 2011, there was a total of 23,986 road accidents were compared to 24,665 accidents recorded in 2010, equivalent to a decrease of 2.8 percent. Table No. 16.2 shows the trend of road accidents for the period between 2005 to 2011. Table No. 16.2: Road Accidents from 2005 to 2011 2005 2006 2007 2008 2009 2010 2011 Number of Accidents Change (%) Source: Traffic Police 16,388 17,039 17,753 20,615 22,739 24,665 23,986 4 4 16 10 8.5-2.8 RAILWAY TRANSPORT 339. In 2011, Tanzania Railways Limited (TRL) and Tanzania and Zambia Railway Authority (TAZARA) recorded strong performance due to improvement in services delivery and increased cargo transportation to and from neighboring countries particularly Zambia and Democratic Republic of 195

Congo (DRC). This performance resulted into increase in railway transportation, whereby cargo transportation increased by 2.8 percent and passengers transportation increased by 31.4 percent in 2011. Tanzania Railways Limited 340. In 2011, TRL transported 267,008 tonnes of cargo compared to 256,190 tonnes transported in 2010, equivalent to an increase of 4.2 percent. In addition, a total of 519,036 passengers were served by TRL compared to 290,046 passengers in 2010, equivalent to an increase of 78.9 percent. The increase in both passengers and cargo transportation was attributed to the improvement of railway infrastructures compared to 2010 where the company was subjected to suspend its services for more than five months due to heavy rains which started in December 2009 and continued towards early 2010. These rains associated with floods which to a large extent affected the railway infrastructures between Kilosa and Msagali. Tanzania and Zambia Railway Authority 341. In 2011, TAZARA transported 533,964 tonnes of cargo compared to 522,966 tonnes transported in 2010, equivalent to an increase of 2.1 percent. On the other hand, passengers served by TAZARA in 2011 were 858,467 compared to 757,987 passengers in 2010, equivalent to an increase of 13.6 percent. The increase in passenger and cargo transportation was attributed to increase in passsengers and cargo transportation to and from Zambia. AIR TRANSPORT Tanzania Airport Authority 342. In 2011, Tanzania Airport Authority (TAA) continued to persue its responsibility of ensuring aviation safety by providing guidelines and undertaking regular inspections. Following such regular inspections undertaken by the Authority during the period under review, the number of incidences and accidents occured decreased to 12 compared to 13 incidences that occured in 2010. 343. In 2011, the number of passengers served by airports regulated by TAA was 3,437,608 compared to 3,027,512 passengers in 2010, equivalent to an increase of 13.5 percent. Among them, 1,833,460 were international travellers while 1,604,148 were domestic travellers. In addition, cargo transportation increased from 28,861 tonnes in 2010 to 39,601 tonnes in 2011, equivalent to an increase of 37.2 percent. The increase in number of passengers and cargo transportation was largely contributed by the increase of tourism, investment and business activities, and the introduction of new airline services such as Turkish Airlines and Egypt Air. 196

Figure No. 16.1: Number of Passengers Arrived and Departed in the Country 2005-2011 Figure No. 16.2: Cargo transported 2005-2011 344. In 2011, SUMATRA inspected 598 small wáter transport vessels and 50 vessels weighing at least 50 tonnes along the coast of Indian Ocean compared to 452 small vessels and 34 vessels weighing at least 50 tonnes inspected in 2010. In addition, SUMATRA has been conducting inspections in Lake Tanganyika, Victoria, Rukwa, Nyasa and in dams. In 2011, SUMATRA inspected 3,305 small vessels and 83 vessels weighing at least 50 tonnes in 197