Over the past decade Tanzania recorded remarkable economic growth and a persistent decline in poverty. The country’s strategic location, its rich and diverse resources, its sociopolitical stability, and its economic reforms over the past four decades contributed to its economic success and serve as a foundation for further building up the economy. Continued government efforts to improve living conditions have resulted in a sustained increase in access to basic services and improvement in human capital outcomes (though from a low base), which helped to reduce poverty. After plateauing between 2001 and 2007, in 2018 the poverty rate fell from 34.4 to 26.4 percent.
This report summarizes a comprehensive analysis of poverty and inequality in Tanzania and identifies some priority actions if poverty is to be reduced. The first part is based on the results of the Household Budget Surveys (HBSs) for 2007, 2012, and 2018; several rounds of National Panel Surveys (NPSs); and Demographic Health Survey (DHS) data. It also combines spatial information from the population census and other sources with HBS data to (1) provide a rigorous analysis of the evolution, profile, and determinants of poverty and inequality; (2) explore movements in and out of poverty and their drivers; and (3) examine the distribution of poverty and living conditions across the country at a detailed geographic level. The second and final part examines the pattern of structural transformation, firm profiles, job creation, and financial inclusion using the rebased GDP figures released in February 2019, plus data from the Statistical Business Register (SBR), Census of Industrial Production (CIP), national accounts, NPS, Integrated Labor Force Surveys (ILFS), and other sources. This executive summary provides an overview of all the findings; The full report will be available on the World Bank website starting from January 2020: http://openknowledge.www.worldbank.org/.