Most of the people are of Bantu origin representing 95%, with some 126 tribes on the mainland, none of which exceeds 10% of the population, others are of Asian, Arab and Afro-Arab and European. The biggest African group is the Sukuma: others include Masai, Haya, Gogo, Nyamwezi. Chagga. There are people of mix blood in the coastal area known as Swahilis as well as Asian, Arabs and European minorities.

Religion:
Traditional beliefs (30%) Islam (35%) and Christianity (35%) est.

Language:
The official language is Kiswahili, which is universally spoken, in addition to various local languages, and is the medium of instruction in all primary schools. English is second official language, the country's commercial language and also the main teaching language in all science subjects in secondary schools and higher learning institutions. Arabic is widely spoken in coastal areas and Zanzibar.

History

Tanzania is believed to be the cradle of mankind, based on the discovery in 1959 in the Olduvai Gorge by Dr. Louis Leakey, of the remains of Homo habilis or handy man, and then estimated to be 1.75 million years old.

About 3000 years ago foreigners started to enter the region. Arab and other traders from Egypt (Greeks and Romans), Axum (Ethiopians), India and the Persian Gulf first visited the area about 2000 years ago. About 500 years ago, the Bantu speaking people moved in from the great Lakes to establish permanent settlements.

Europeans (Portuguese) first visited the area as early as the 14th Century and established several strongholds which, early in the 19th century, fell into Arab hands. In 1840, Seyyid Said, the Imam of Oman moved to Zanzibar to establish a Sultanate that spanned over the entire coastal belt and associated islands of present day Tanzania and Kenya.

As a result of the illegal partitioning of Africa in 1884 by European powers, Tanzania Mainland became a German Protectorate (which also included Rwanda and Burundi) in 1891. Zanzibar remained a Sultanate. After Germany’s defeat in World War I, Tanzania mainland became a British Protectorate and Rwanda and Burundi were given to Belgium. Zanzibar continued to be a Sultanate under British rule.

In 1954, Mwalimu Julius Kambarage Nyerere and several other progressive Tanganyikans formed a political party – The TANGANYIKA AFRICAN NATIONAL UNION (TANU) to spearhead the struggle for independence. In Zanzibar, Amani Karume and colleagues formed Afro Shiraz Party for similar purposes.

Tanzania mainland became independent on December 9, 1961 and a Republic on December 9, 1962. Zanzibar became independent on January 12, 1964 through a revolution. Tanzania mainland (then Tanganyika) and Zanzibar united on April 26, 2964 to form the United Republic of Tanzania.

Mwalimu Julius Kambarage Nyerere was the First President of Tanganyika and later became the first President of the United Republic of Tanzania until he retired in 1985. President Ali Hassan Mwinyi was the second President of Tanzania (1985-1995) and the third President of Tanzania is H.E. Benjamin W. Mkapa who is in his second and last term which ends in 2005.

Economy

Tanzania has an economy that has plenty of scope for diversification and growth. Important sectors include agriculture, manufacturing, transport and communication, mining, tourism, construction, fisheries, trading and a wide range of services such as education, health, housing, banking etc.

(i) Agriculture: Currently, agriculture is the dominant sector, accounting for about 50 percent of GDP, 75 percent of export earnings and employs about 80 percent of the active labor force. The agriculture sector produces both cash and food crops. The main cash crops include coffee, cotton, cashew nuts, sisal, tea, tobacco and pyrethrum for Tanzania mainland. For Zanzibar, cloves, copra, tobacco, vanilla, peppermint, rubber and seaweeds are important cash crops. Maize, millet, sorghum, cassava, rice and bananas are the main food crops. The cattle population of over 13 million heads is the fourth largest in Africa. The presence of large water masses which include the Indian Ocean, Lakes Victoria, Tanganyika and Nyasa and relatively small inland lakes and river makes fishing an important economic activity in Tanzania. With improvement in technology, the agriculture sector has the potential to increase productivity and produce enough both for the domestic and export markets.

(ii) Manufacturing: This sector consists of light industries, mainly involved in the production of textiles, beverages, chemicals, pharmaceuticals, appliances for domestic and commercial purposes and food processing. Other important activities include production of educational materials and some agricultural inputs and equipments.

The importance of this sector is steadily growing both in terms of its contribution to GDP and creation of employment opportunities. On average the share of manufacturing is estimated at 8.3 per cent. Over time, this share is expected to grow as more investments are made in the sector, given the very conducive policy environment currently in place in Tanzania. There is also plenty of room for more investments in all the areas mentioned above and in new areas such as heavy industrial activities.

(iii) Transport and Communication: The transport system in Tanzania consists of road, rail, air and water transport networks which provide important internal links that facilitate the movement of goods and services from centres of production to markets. Tanzania is also well connected to regional and overseas countries by rail, road, air and water transport services, with daily flights to Europe, around Africa, Middle East and through Europe, to the United States of America and Canada. Major Airlines that fly in and out of Tanzania include Air Tanzania Cooperation, Africa One, Kenya Airways, South African Airways, British Airways, KLM, Gulf Air, Air India, Swiss International Airlines, Zimbabwe Airline and Ethiopian Airline. In addition to these scheduled flights, there are charter services. Other major European Airlines are in the process of introducing flights to Tanzania.

In terms of internal and external communication, Tanzania is well served with an efficient and growing network of postal and courier service providers. There are also internet, telephone, telex, and fax links within as well as with the rest of the world. Major service providers include the Tanzania Postal service company, DHL, FEDEX, UPS and EMS for postal and courier services. For telephone and fax services, the major service providers include the Tanzania Telecommunication Company, MOBITEL, and VODACOM, CELTEL, ZANTELS. There are also several Radio and Television service providers and numerous newspapers that disseminate information within and outside Tanzania.

(iv) Mining: Mining forms an important economic activity in Tanzania, currently contributing 2.6 percent of GDP, about 40 per cent of export earnings and provides important employment opportunities to many people. Since 1997, growth in the mining sector has been above 10 per cent, reflecting a steady increase in mining and exploration activities. Important minerals include diamond, gold, coal, a variety of gemstones including Tanzanite, which is only found in Tanzania. Further exploration work is underway with greater expectation for petroleum discovery which would enhance Tanzania’s development prospects.

(v) Tourism: The vast range of spectacular natural, historic and man-made tourist attractions make tourism one of the most important sectors of the Tanzania economy. While its share in GDP is still relatively small at 3.1 per cent, its role as a foreign exchange earner has increased tremendously in recent years. In 2001 for example, tourism generated $725 million compared with $776.44 from the export of all other exportable. With increased effort in advertisement and development of additional attractions, tourism has the potential of becoming a major contributor to GDP, employment and income to many people.

(vi) Construction: Construction is an important source of long and short term employment opportunities. Its contribution to GDP in recent years has been significant, averaging 4 per cent over the last five years. Over the same period, the sector has also been one of the fastest growing in the economy, growing at an average annual rate of 9.5 per cent, a reflection of increased activities in other sectors of the economy. The sector’s potential for greater contribution to GDP and employment will continue to grow as the economy grows.

(vii) Services: The service sector provides an array of important and essential economic and social services to the economy. Extensive networks of education and health infrastructures provide education and health services that extend well into the rural areas to cater for the education and health needs of Tanzanians and foreigners resident in Tanzania.

Education:

The education system consists of seven years of basic education, six years of secondary education and three to five years of tertiary education. Overall literacy is above 70 per cent.

At basic education level, enrolment is about 80 per cent and at secondary education level, it is 25 per cent. The low level of enrolment at secondary education level presents a major challenge for Tanzania but is also an important opportunity for investors. At tertiary level, there are 9 universities and colleges, supported by numerous specialized institutions of higher learning.

Health Care

The health care system consists of dispensaries at the grassroots (10,000 people per dispensary) health centres (serves 50,000 people), District hospitals, regional hospitals and at the apex, consultant hospitals. These normally deal with referral cases from regional hospitals.

In recent years, the role of private service providers has increased tremendously in both education and health sectors. In education over 50 per cent of secondary schools are private while in health, over 20 percent of dispensaries are private. With continued encouragement by the Government, the private sector is expected to be a major player in these sectors in coming years.

There is also an extensive network of water supply services that provide water for both domestic and commercial purposes. For domestic purposes, the consumption of bottled water particularly in urban areas and during travels is growing.

Housing

Development in the housing sector has been relatively slower for lack of large and capable housing companies. This has led to a significant imbalance between the supply and demand for housing and office accommodation. Of late however, there have been a growing number of investors; the major ones include the National Housing Corporation, National Social Security Fund ((NSSF), the Parastatals Pension Fund (PPF) and several other private companies. The activities of these companies however are only concentrated in large cities, thus leaving rural areas unserved. Even in cities where these companies operate, the housing units are far too expensive for majority of the people. Increased investment and a new focus is needed in this area in order to meet the demand for housing in Tanzania.

Finance:

A dynamic financial sector is in place to serve the financial needs of the economy. The system consists of the Central Bank, which is responsible for supervision and regulation of the conduct of business in the sector. Other key entities include banks, insurance companies, Social Security and Pension Funds, and Foreign Exchange Shops (Bureau de Change).

Over the past ten years, the share of the financial sector in GDP has consistently been above 10 per cent, reflecting its increasing importance. The banking sub sector has been the fastest growing. Over the period, the number of banks increased from 3 in 1990 to over 20 in 2001. Major banks currently operating in Tanzania are NBC 1997 Ltd., CRDB 1996 Ltd, Barclays Bank, Standard Chartered, Citibank, the National Microfinance Bank, Stanbic and Eurobank. The NBC 1997 Ltd., CRDB 1996 Ltd. and the National Microfinance Bank have branches all over the country. The services of other banks are limited to large cities such as Dar es Salaam, Mwanza, Arusha and Zanzibar.

Energy:

For its energy requirements, Tanzania depends mainly on firewood, petrol, hydro and thermal electricity and coal. There is also great potential for natural gas, wind and solar energy. The current status is that firewood provides 90 per cent of all energy requirements, petrol and electricity 9 per cent and all other sources provide 1 per cent. This suggests that in spite of the great potential to play a bigger role, the other sources have not yet been sufficiently exploited.

The Tanzania government is aware of this anomaly and is already taking measures to encourage private investors to exploit these other sources of energy.

On the whole, overall performance of the economy in recent years has been impressive, as reflected by key macroeconomic indicators. Over the past five years for example, growth of GDP has averaged 5 per cent, inflation has consistently declined and reaching 4.6 per cent as of October 2002 and the exchange rate between the Tanzania shilling and major currencies has been stable at Tshs 1190 to $1 and Tshs. 1500 to 1 pound. Fiscal discipline has also been restored as reflected in a consistently declining rate of growth of the budget deficit.

This impressive performance is a result of relentless efforts by the Government to implement an aggressive reform programme since 1986. The key objective of this reform programme is to improve efficiency in the economy particularly in the private sector through privatization and implementation of sound policies that are essential for enhancing efficiency in the operations of the private sector in Tanzania. Some of the important policies that the government has introduced in pursuance of this goal include the removal of restrictions of private investment in all sectors, removal of price and foreign exchange controls, provision of tax incentives for investors such as tax holidays and reduction of tariff rates, legal protection of private investment, and creation of important supportive institutions such as the Tanzania Investment Centre and the Commercial Court. There is also increased dialogue between the Government and private sector in the formulation of Government policies.

The impressive performance of the economy and the rising number of foreign investors suggest that these policies are working positively and prospects for the future are very promising.

Membership To Regional and International Organizations

Tanzania is a committed and active member of the international community in the promotion of peace and development for all people in the world. In pursuit of these objectives, Tanzania works with other countries, through regional and international organizations which have been created to promote the pursuit of specific objectives and goals.

Membership to Regional Organizations: Tanzania is a member of the following regional organizations:

(i) African Union (AU) This is a newly created (July 2002) Continental Organization to replace the Organization of African Unity (OAU). Tanzania is a founding member of the new organization. The AU’s main objective is to enhance cooperation among African countries and between Africa and the rest of the world in the pursuit of peace and development. The AU engages with other World and Continental Organizations to promote Africa’s interests to which Tanzania contributes actively.

(ii) Southern African Development Coordination Community
(SADC)

The SADC is an organization of 13 countries in the Southern African Region whose objective is to promote Economic cooperation among member states through trade and investment.

Member countries are South Africa, Angola, Namibia, Democratic Republic of the Congo, Zambia, Zimbabwe, Tanzania, Malawi, Mozambique, Botswana, Swaziland, Lesotho, and Mauritius.

The SADC Secretariat works to promote and strengthen economic and political cooperation among member states and chart out common strategies for engagement between the SADC countries and other regional groupings or countries. Already SADC has working relationship with the United States and European Union. The two parties have established an annual consultative Forum that seeks to enhance cooperation between SADC and the United States. For additional information on SADC activities click here
http://www.sadc.int

(iii) East African Community:

Tanzania is a founding member and host to the newly re-established (November 30, 1998) East African Community (EAC), whose long term goal is a Political Federation.

Other members are Kenya and Uganda. Rwanda has also expressed interest to join the Community.

At the initial stage, the EAC is focusing its efforts on promoting economic integration. This objective provides the building blocks for achieving the long term goal of a Political Federation.
Many important initiatives have been taken in pursuit of these goals:

• A secretariat to run the day to day activities of the Community with its headquarters in Arusha Tanzania.
• Harmonization of fiscal and monetary policies.
• A common tariff on imports from outside the region is in place.
• The East African Parliament is in place.
• The East African Court of Appeal is in place.

Many more actions continue to be taken towards the long term goal – Political Federation. For more details on East Africa Community click here
http://www.eac.int

(iv) The African Development Bank. This is a regional financial institution based in Abidjan, Ivory Coast, which mobilizes resources for lending to member countries on concessional terms. Tanzania is member to this important financial institution. For more information on AFDB click here http://www.afdb.org

Membership to International Organizations:

(v) UN, World Bank, IMF and WTO:

At the international level, Tanzania is an active member of the United Nations (UN) and its specialized agencies, World Bank, International Monetary Fund, and the World Trade Organization (WTO). Through her involvement in the activities of these organizations, Tanzania is actively involved in the promotion of peace and development in the world.
http://www.unsystem.org