Tanzania's industry has more than doubled its GDP contribution over 13 years.

Key takeaways

  • With an impressive 20.1% CAGR, the Industry (including construction) has experienced the fastest expansion, more than doubling its contribution to GDP over the period.
  • Services remains the largest contributor to GDP, but its growth at 14.6% CAGR is being outpaced by Industry, signalling an evolving economic structure.
  • Agriculture’s 11.2% CAGR shows steady growth, but its share of GDP is shrinking compared to the industrial and service sectors.
  • The rapid growth in Industry reflects Tanzania’s shift towards manufacturing, construction, and infrastructure development.
  • Unlike decades ago, when agriculture dominated, today’s GDP contributions are more balanced between Services, Industry, and Agriculture, reducing reliance on any single sector.

The industrial sector has more than doubled its contribution to GDP with a 20.1% compound annual growth rate (CAGR). The services remain the dominant sector, growing at 14.6% CAGR. Meanwhile, agriculture has grown steadily at 11.2% CAGR, highlighting its consistent but slower pace in economic contribution.
The growth of Industry is an evident result of increasing investments in factories and infrastructure that is impacting the different aspects of the country's economy including employment. More young people are now moving from farms to factories, seeking better wages and skills in manufacturing and construction.

Source:

Bank of Tanzania

Period:

2012-2024
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