Tanzania’s economy has experienced steady growth over the last three years and is projected to continue on this trajectory over the next five years. Agriculture remains the mainstay of the economy and employs the majority of the workforce. Despite the positive macroeconomic achievements, growth is not sufficiently broad based and poverty levels remain high. Real GDP growth for Tanzania is forecasted to be 6.9% in 2015 and to average 6.8% in the period 2016-2020. Agriculture will remain the main driver of the economy, particularly in rural areas, although it is likely to continue to be constrained by low productivity, inadequate infrastructure and weather-related shocks.

Economic growth in Tanzania is not translating into jobs although more youth are entering the labour market. While Tanzania is seeing a rapid rise in the number of non-farm enterprises, these enterprises are remaining in the micro category (employing two or less employees) and are unable to absorb the number of new entrants into the labour market. As a result, the youth unemployment rate remains higher (14.9%) than the national unemployment rate (10.7%).