STRUCTURE OF TANZANIA ECONOMY
INTRODUCTION
The economic structure of Tanzania is the topic/ concept which explain and analyze economic aspects which form Tanzania economy and features of Tanzania economy.
The structure of Tanzania economy deal with analyzing economic sector which form Tanzania economy and an ownership system available in Tanzania basing on characteristics, contributions, problems and solutions to the problems facing economic components/ sector as the way of creating sound economic situation.
COMPONENTS/ PATTERNS OF TANZANIA ECONOMY
The structure of Tanzania economy divided into two main patterns/ components. These are
1. Sectoral pattern
2. Ownership pattern
SECTORAL PATTERN
This is the pattern aspect of Tanzania economy which analyze economic sector in Tanzania in terms of contribution, problem and solutions of the problems facing economic sector. All economic sectors in Tanzania economy are divided grouped into three (3) sectors.
1. Primary sector
2. Secondary sector
3. Tertiary sector
PRIMARY SECTOR
This is an economic sector which deals with production of goods from origin or sources. Most of primary sector deal with production of raw materials which may used for further production especially in industrial sector so as to get final goods and services, primary sector includes activities/ sectors such as agriculture, mining, fishing and considered as a main economic sector in Tanzania economy.
AGRICULTURAL SECTOR
This is an economic sector which deals with crop production (cultivation) and livestock keeping.
Agriculture sector is the main primary sector and considered as a leading Economic sector in Tanzania because it contribute large percent of gross national product (GNP) and provide employment opportunities to many people in Tanzania.
Agriculture plays a great role in development of other economic sector such as trading and manufacturing sector. Therefore agriculture is the backbone of Tanzania economy.
ECONOMIC ROLES/ IMPORTANCE OF AGRICULTURE SECTOR IN TANZANIA
1. Agriculture sector provide employment opportunities too many people that lead to decline in unemployment problem i.e. large percent of Tanzania employment is based in agriculture sector compare to other sectors.
2. Agricultural sector stimulate increase in GNP and economic growth because it contribute large percent of GDP in Tanzania
3. Agriculture sector assist development of other economic sector such as manufacture sector because it provides raw materials and market for that sectors.
4. It helps country to get foreign currencies due to the export of agriculture products abroad.
5. Agriculture sector increase supply of food product that assists satisfaction of human wants
6. Agriculture sector assist reduction of income inequality because it improve development and income to the people in rural areas that reduce personal and territorial income inequality
7. Agricultural sector assist in improvement of economic infrastructural in transport and communication system especially in rural areas.
PROBLEMS FACING AGRICULTURE SECTOR IN TANZANIA
The development of agricultural sector in Tanzania is limited/affected by the following problems;
1. Unfavorable climate conditional i.e. unfavorable temperature and rainfall for agricultural production. This reduces scale of production and gain from agricultural sector because most of Tanzanian’s depends on natural climate.
2. Shortage of market. Agricultural sector in Tanzania limited by small extent of domestic market due to the poverty and international foreign markets due to the competition and low quality of products.
3. Low prices and price fluctuations. Most of agricultural products act as raw materials; therefore they are sold at low price and experience price fluctuation which affect gain/ profit to farmers
4. Pests and disease affect agricultural production and limit scale of production and yields from production and some of diseases affect farms which reduce farmer’s participation in production which lead to low volume of production and agricultural development.
5. Low level of technology. Tanzania has low development of technology and most of farmers use poor tools and old technique of production this hinder quality and quantity of output produced.
6. Poor/ lack of workable government policies and structure. Tanzania government lack a workable agriculture policies and strategies for improving production, government created many policies but they are not actually implemented effectively in practices and there is not well established continuous follow up for evaluating failure and success of policies.
7. Low level of education and training among farmers. Most of famous Tanzania farmers have no relevant knowledge relating with agricultural provided, they use normal practices sector.
8. Shortage of capital. Most of people has no sufficient capital for investing in agricultural sector which cause small scale production and employment of local tools (low technology) which result to low agriculture production
9. Low development of economic infrastructures such as transport and communication system especially in rural areas which hinder development of agriculture sector.
GENERAL SOLUTIONS TO THE PROBLEMS FACING AGRICULTURE SECTOR IN TANZANIA