Mining and quarrying activities in Tanzania contributed 3.7% to its GDP with USD 1.78bn in 2014, compared to only USD 598m in 2009, representing a value increase of almost 200%. According to the Tanzania Chamber of Minerals and Energy, gold production in Tanzania stands at 40 tons per year which makes it the 4th largest gold producer in Africa after South Africa, Ghana, and Mali. Based on Tanzania’s Development Vision 2025 plan, the mining sector is expected to account for 10% of the GDP by that year. 6. ECONOMIC ARRANGEMENT World Trade Organization (WTO) deals with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible. The WTO provides a forum for negotiating agreements aimed at reducing obstacles to international trade and ensuring a level playing field for all, thus contributing to economic growth and development. The WTO also provides a legal and institutional framework for the implementation and monitoring of these agreements, as well as for settling disputes arising from their interpretation and application. The current body of trade agreements comprising the WTO consists of 16 different multilateral agreements (to which all WTO members are parties) and two different plurilateral agreements (to which only some WTO members are parties). Over the past 60 years, the WTO, which was established in 1995, and its predecessor organization the GATT have helped to create a strong and prosperous international trading system, thereby contributing to unprecedented global economic growth. The WTO currently has 164 members, of which 117 are developing countries or separate customs territories. Tanzania joined the WTO on January 1 st 1995. Figure 33: Mineral occurrence in Tanzania Figure 34: Logo of WTO
24 7. TRADING PARTNERS Tanzania is the 102nd largest export economy in the world and the 114th most complex economy according to the Economic Complexity Index (ECI). In 2014, Tanzania exported $6.4B and imported $13.5B, resulting in a negative trade balance of $7.07B. In 2014 the GDP of Tanzania was $48.1B and its GDP per capita was $2.54k. Figure 35: Source from the Observatory of Economic Complexity The top export destinations of Tanzania are India ($1.09B), South Africa ($754M), China ($530M), Kenya ($445M) and Japan ($392M) Figure 36: Source from the Observatory of Economic Complexity The top import origins of Tanzania are India ($2.55B), China ($2.32B), the United Arab Emirates ($1.12B), Switzerland ($839M) and Kenya ($646M)
25 Current issue in Tanzania POVERTY IN TANZANIA The level of poverty in Tanzania is high. The definition of poverty is a contentious point, which differs from one country to another. There are also varying degrees of poverty. From a broader perspective, poverty is defined as "the state of being extremely poor and is understood by many to mean the lack of basic necessities such as food, water, shelter, healthcare, and primary education. UNICEF (United Nations Children's Fund) argues that, whilst Tanzania has made great efforts in meeting its domestic and international targets in the alleviation of child poverty especially in the areas of education and healthcare, child poverty is still an important issue for the country.
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- Spring '19