Tanzania profile

Demography and Health

Tanzania has a large and youthful population, with about 68.6 million people in 2024, ranking 22nd globally by size. A high birth rate of 35.2 per 1,000 people in 2023 (ranked 10th) points to strong natural population growth and a potential demographic dividend if productive employment and services keep pace. Life expectancy at birth stands at 67.0 years in 2023, and the crude death rate is 5.79 per 1,000 people (2023), indicating ongoing health and epidemiological challenges even as mortality pressures outside of child health are comparatively moderate. Under-5 mortality is 38.9 per 1,000 live births (2023), showing notable child health needs despite progress in some areas. Doubling these health pressures, Tanzania records that 23.8% of its population faced undernourishment in 2022, underscoring food security vulnerabilities that can compound health outcomes. Migration patterns show a net outflow in 2024 of about 29,865 people, reflecting some structural factors that affect labor supply and skills retention. The health financing landscape is constrained: current health expenditure is 3.11% of GDP (2022), and domestic general government health expenditure per capita, PPP is about 29.2 international US$ (2022), indicating limited public funding for health relative to peers. The health workforce is also lean, with 0.133 physicians per 1,000 people (2022). Internet access is present but not universal, with 29.1% of the population using the Internet in 2023, suggesting opportunities to leverage digital health and information services as connectivity expands. Taken together, these indicators reveal a country with a large, young population and substantial development needs in health, nutrition, and basic social services, alongside early signs of a potential digital and human-capital upgrade if investment and governance improve.

Economy

Tanzania’s economy sits in the lower-middle-income band, with GDP per capita at 1,186 current US$ in 2024 and GDP per capita, PPP at 4,221 current international US$, signaling substantial income dispersion and a large gap between average income and potential productivity. Inflation has remained moderate at 3.06% in 2024, supporting relative price stability. The country’s output and trade footprint show a modest but active external sector: exports of goods and services account for 19.8% of GDP in 2024, while imports amount to 21.7% of GDP in the same year, indicating a trade profile that is open but still oriented toward essential imports. Public and private investment flows show a modest yet meaningful signal of foreign interest, with foreign direct investment net inflows at 2.06% of GDP in 2023. The current account balance sits at -3.74% of GDP in 2023, reflecting a deficit that warrants attention to export growth, diversification, and financing conditions. In line with a developing economy, military expenditure is 905 million US$ in 2023, representing a non-negligible allocation of resources to security needs within a broader developmental context. Tanzania’s technology export footprint is growing slowly, with high-technology exports valued at 43.1 million US$ in 2023, suggesting nascent capabilities beyond commodity-driven sectors. Overall, the economy combines a modest growth trajectory with structural challenges—low income per capita, limited diversification, and the need to strengthen investment climate, productivity, and resilience to external shocks.

Trade and Investment

Tanzania’s trade and investment profile shows modest openness and diversification. Exports of goods and services total 19.8% of GDP in 2024, while imports stand at 21.7% of GDP in 2024, signaling a relatively open economy that still relies on external inputs for growth. Foreign direct investment net inflows are 2.06% of GDP in 2023, indicating steady but not overwhelming external capital participation, with room to deepen integration into regional value chains and the global economy. The current account balance is -3.74% of GDP in 2023, reflecting an external position that benefits from improving export competitiveness and diversification efforts. Tanzania’s niche in higher-technology exports is modest, at about 43.1 million US$ in 2023, pointing to emerging capabilities in more advanced sectors beyond traditional commodities. Net migration in 2024 shows a small negative figure, which could influence labor supply and human capital dynamics. Taken together, the trade and investment landscape suggests growth potential anchored in gradual diversification, targeted investment incentives, and policies that expand productivity while managing external vulnerabilities.

Governance and Institutions

Governance indicators reveal a challenging but ongoing reform path. Control of corruption sits at -0.32 (2023), government effectiveness at -0.455, regulatory quality at -0.588, and the rule of law at -0.373, all signaling entrenched institutional weaknesses relative to peers. Political stability and absence of violence/terrorism register at -0.0528 (2023), indicating a fragile stability environment with room for improvement. These sentiment metrics imply governance bottlenecks that can affect investment climates, public service delivery, and policy implementation. Yet, these indicators also coexist with international engagement and reform aspirations, suggesting a governance trajectory that could improve with focused anti-corruption measures, stronger rule of law, and more effective public institutions. In this context, Tanzania’s public policy and investor risk assessments must account for governance-level constraints while recognizing opportunities created by reforms, capacity-building initiatives, and regional cooperation.

Infrastructure and Technology

Tanzania shows a mix of growth in digital infrastructure and notable human-capital constraints. Individuals using the Internet account for 29.1% of the population in 2023, reflecting expanding digital access but a substantial portion of the population remains offline, underscoring a digital divide that can constrain inclusive development and e-government services. High-technology exports amount to 43.1 million US$ in 2023, indicating nascent but meaningful capabilities in advanced products, signaling potential for future tech-driven growth as capabilities scale. The health workforce is lean, with physicians at 0.133 per 1,000 people in 2022, highlighting a key bottleneck for service delivery and public health resilience. Renewable energy consumption constitutes 78.3% of total final energy consumption in 2021, pointing to a heavy reliance on renewable sources, which can offer energy security and climate advantages if complemented by reliable transmission and storage. Together, these indicators show an economy with growing digital and renewable energy foundations but with critical gaps in connectivity, skilled labor, and technology-driven production that need coordinated investment, education, and infrastructure expansion.

Environment and Sustainability

Tanzania’s environmental profile blends high renewable energy use with climate-related and resource-management challenges. Renewable energy accounts for 78.3% of total final energy consumption in 2021, indicating substantial reliance on renewable sources—likely driven by hydropower, biomass, and other renewables—which supports low-carbon pathways and energy access in many regions. Per-capita greenhouse gas emissions excluding LULUCF are 1.35 t CO2e in 2023, a relatively low level by international standards, reflecting a less energy-intensive economy or lower industrial output per person. Water resources show moderate stress, with freshwater withdrawal at 13.0% of available freshwater resources in 2021, ranking 83, suggesting room to manage water demand more efficiently as population and industry grow. The prevalence of undernourishment is 23.8% of the population in 2022, signaling environmental and climate-related vulnerability in agriculture and nutrition security. Collectively, Tanzania’s environmental indicators point to a country with substantial renewable energy potential and relatively low emissions, but with important challenges in water resource management and food security that require climate-smart agriculture, resilience planning, and investment in sustainable infrastructure to align growth with ecological sustainability.