This paper seeks to examine why economic growth in Tanzania in recent years has not led
to poverty reduction in the country. It analyses data and findings from a range of literature
and national accounting data. One reason for this trend is attributed to inaccuracies in the
reporting of economic data; a young, under-educated population, which is compounded by a
heavy responsibility on women; and low growth rates in the agricultural sector, which
accounts for the majority of the population, further exacerbate this trend. Investment to boost
education and help workers move into better-rewarded sectors is vital to address poverty in
Tanzania. Importantly, rural investments and training to rural farmers to increase production
and processing capacities will substantially contribute rural poverty reduction and reduce
rural-urban income inequality.