Since the mid 1980s, Tanzania took macroeconomic policy and structural reforms,
which have created a conducive environment for private sector and foreign investment
growth. The average annual GDP growth between 2000 and 2010 has stood at 6.7%,1
making Tanzania one of the countries with the highest GDP growth in sub-Saharan
Africa.2
The real GDP growth slowed in 2011 to around 6.4%. However, real GDP
grows by 6% reaching at 6.8% in June 2012.3 It is during the economic reforms period
when various sectors of the economy have recorded significant positive growth.
Among these sectors are the financial sector, parastatal sector, insurance sector,
revenue collection and civil service sector. Over the same period, FDI has also
increased substantially. Improved regulatory environment, availability of abundant
unexploited natural resources, and incentives for foreign investors have also partly
contributed towards increased foreign private capital flow into the country. The current
major sectors of the economy include agriculture, mining, banking, manufacturing,
tourism, construction, finance, insurance, real estate and business services. Despite
the country’s recent impressive economic performance, investment activities have
mainly been concentrated in a few sectors. Compared to other sectors, mining is one
of the fastest growing sectors.