and evaluation; challenges to macroeconomic policies for sustainable development; and an assessment
of progress towards sustainable development, with an emphasis on employment and trends in poverty
and inequality.
521.
Mainland Tanzania and Zanzibar are guided by the following basic documents and frameworks guiding economic
development: Tanzania Development Vision 2025 and Zanzibar Development Vision 2020; the 2011/12-2025/26
Long Term Perspective Plan and the 2006-2015 Zanzibar Growth Strategy; the National Poverty Eradication
Strategy, the Poverty Reduction Strategy Paper and the Zanzibar Poverty Reduction Plan; the National Strategy for
Growth and Reduction of Poverty (NSGRP/MKUKUTA I and II) and the Zanzibar Strategy for Growth and Reduction
of Poverty (ZSGRP/MKUZA 1 and 11); and, various supportive plans and programmes. These vision statements,
strategies and plans aim to transform Tanzania into a middle-income country by the year 2025, as specified in
the Tanzania Development Vision 2025. The focus of this section in the CSAR is progress towards achieving this
goal and other related objectives, such as structural transformation of the economy; employment generation;
poverty eradication; and, the reduction of economic inequalities.
522.
To provide the background to the above concerns, Tanzania’s economic history is divided into three periods:
mixed economy strategy (1961-1966); socialist (1967-1985); and economic reforms (1986 to the present). This
later period is divided into two phases, namely, mild economic reforms (1986 - 1994) and intensified reforms
(1995 to the present). The economic periods in Zanzibar are roughly analogous.
Macroeconomic Indicators
Growth rates
523.
Tanzania has enjoyed high rates of economic growth in recent years. The table below presents data on GDP
growth rates for Mainland Tanzania and Zanzibar.
Table 4. 1: GDP Growth (Per centages)
Country
2006
2007
2008
2009
2010
Average 1995-2010
Mainland
6.7
7.1
7.4
6.0
7.0
7.0
Zanzibar
6.0
6.5
5.2
6.7
6.5
6.2
Source: Tanzania Country Self-Assessment Report
524.
The table above shows respectable rates of GDP growth since intensified economic reforms were introduced
in 1995. This was particularly true for the Mainland, where GDP growth averaged 7.0 per cent between 1995
and 2010 and was 7.0 per cent or more in 2007, 2008, and 2010. GDP growth rates were also respectable in
Zanzibar but were close to a per centage less than rates on the Mainland.
Economic diversification
525.
However, these growth rates, though respectable, did not translate into diversified avenues of production. Shares
of the major economic sectors in proportion to total economic output remained essentially the same between
2006 and 2010. This particularly applied to agriculture and services, where GDP share remained essentially the
same, while the share of industry, construction and manufacturing increased very slightly. In Zanzibar, the share
of agriculture increased modestly, manufacturing fell slightly, and there were marginal increases in the service
sector. In both Mainland Tanzania and Zanzibar, service sector contributions were in the region of 44 per cent
of GDP, followed by agriculture, between 26 per cent and 33 per cent, respectively. The manufacturing sector
accounted for an estimated 9 per cent of GDP in the Mainland and 4 per cent in Zanzibar.
114
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