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Main activities of Tanzanians
Agriculture, tourism, mining, fishing – the economic pillars of the nation
Tanzania’s economy is diverse but still heavily dependent on agriculture, which employs about 65% of the workforce and contributes roughly 30% of GDP. However, tourism, mining, fishing, manufacturing, and services are growing rapidly. This article provides a comprehensive overview of how Tanzanians make a living – from the smallholder farmer in Mbeya to the porter on Kilimanjaro, from the miner in Geita to the hotelier in Zanzibar.
Historical context of Tanzania’s economy
After independence in 1961, Tanzania adopted socialist policies known as Ujamaa (familyhood), which collectivised agriculture and nationalised industries. While this improved literacy and healthcare, economic growth stagnated. In the mid‑1980s, the country shifted toward market liberalisation, opening sectors to private investment. Since then, tourism has boomed, gold mining has become a major export, and a nascent manufacturing sector has emerged. Nevertheless, poverty remains widespread, and the informal economy (small‑scale trade, agriculture, and services) accounts for over 80% of employment.
1. Agriculture – the backbone of the nation
Approximately 65% of Tanzanians work in agriculture, mostly as smallholder farmers on plots of less than two hectares. Major food crops include maize, rice, cassava, sorghum, and beans. Cash crops (for export) include coffee, tea, cotton, cashew nuts, tobacco, sisal, and recently, avocados and flowers. The sector is dominated by rain‑fed farming, making it vulnerable to droughts. Efforts to introduce irrigation and improved seeds are ongoing but slow.
- Maize – staple food, grown across the country.
- Coffee – Arabica from the northern highlands (Kilimanjaro, Arusha, Mbeya) and Robusta from the northwest.
- Cotton – main cash crop in the Lake Zone (Mwanza, Shinyanga).
- Cashew nuts – grown in the coastal region (Mtwara, Lindi).
- Horticulture – vegetables, fruits, and flowers for European markets (export via Kilimanjaro airport).
2. Tourism – the leading foreign exchange earner
Tourism contributes about 17% of GDP and employs directly and indirectly over 1.5 million Tanzanians. Key attractions include Serengeti (wildebeest migration), Ngorongoro Crater, Kilimanjaro, Zanzibar beaches, and cultural tourism. The industry supports safari guides, lodge staff, porters, drivers, pilots, artisans, and restaurant workers. Post‑COVID, tourism has rebounded strongly, with over 1.8 million international arrivals in 2024.
3. Mining – gold, diamonds, and gemstones
Mining accounts for roughly 7‑8% of GDP, with gold being the dominant export (about 90% of mineral exports). Large‑scale mines are operated by foreign companies (Barrick Gold in Geita, Bulyanhulu, North Mara). Artisanal and small‑scale mining (ASM) employs hundreds of thousands of Tanzanians, extracting gold, diamonds, tanzanite (found only in Tanzania), and other gemstones. ASM is often unregulated and dangerous, but it provides a crucial income for rural families.
4. Fishing – lakes and ocean
Fishing is vital along Lake Victoria (the world’s second‑largest freshwater lake), Lake Tanganyika, Lake Nyasa, and the Indian Ocean. The Nile perch and sardine (dagaa) fisheries employ over 200,000 fishers and support processing, transport, and export. Overfishing and pollution are serious challenges, but aquaculture is slowly expanding.
5. Manufacturing and industry
Manufacturing contributes about 8% of GDP, focusing on food processing (flour, beverages, sugar), textiles, cement, and fertilisers. The government is promoting industrialisation through the “Build Better Programme”, which aims to establish special economic zones. However, high energy costs and infrastructure gaps limit growth.
6. Construction
Rapid urbanisation and infrastructural projects (the Standard Gauge Railway, new ports, roads, and real estate) have made construction a fast‑growing sector. It employs many semi‑skilled and unskilled workers, especially in Dar es Salaam, Arusha, and Mwanza.
7. Services – trade, transport, and tech
The service sector (excluding tourism) includes wholesale and retail trade, banking and insurance, telecommunications, and mobile money services (M‑Pesa, Tigo Pesa). Mobile money is ubiquitous – even rural farmers use their phones to send and receive payments. The informal economy – street vendors, market traders, mobile hair salons, bicycle taxis (boda‑boda) – provides livelihoods for millions who are not captured in official statistics.
8. Energy and extractives – gas and oil
Natural gas (from Songo Songo and Mnazi Bay) is used for electricity generation and industrial fuel. Recent offshore discoveries suggest significant natural gas and potential oil reserves, which could transform the economy in the coming decade.
Contribution of each sector to GDP (2024 approximate)
- Agriculture, forestry, fishing – 30%
- Tourism (direct) – 12% (but including indirect effects, 17‑20%)
- Manufacturing – 8%
- Mining – 8%
- Construction – 7%
- Trade, restaurant, hotels – 15%
- Transport & communications – 12%
- Others – 8%
Informal economy – the silent majority
According to the International Labour Organization (ILO), about 85% of employment in Tanzania is in the informal sector. This includes:
- Street vendors (clothes, electronics, fruits, hot meals).
- Motorcycle taxi drivers (bodaboda).
- Hairdressers, tailors, shoemakers.
- Small‑scale mechanics, electricians.
- Private tutors, freelance artists.
Informal workers lack contracts, benefits, and social security, but their activities keep the economy running at the grassroots level.