Human Capital and Labour Report Tanzania

The United Republic of Tanzania is on the East Coast of Africa, bordered by eight countries, namely Uganda, Rwanda, Kenya, Burundi, the Democratic Republic of Congo, Malawi, Zambia and Mozambique. The country comprises a total area of 945 203 km² (364 989 sq. miles). Tanzania is the 13th largest country in Africa, slightly larger than Nigeria. The future outlook for Tanzania is very positive with the country experiencing strong economic growth as a result of macroeconomic stability and positive institutional and policy reforms. Tanzania attracts substantial foreign investments with USD 1.707 billion invested during 2012, an increase of 39% since 2011. Economic growth in the country has improved living standards and subsequently improved access to education and skills development. Tanzania’s young, growing population is perhaps one of the country’s greatest assets, and through enhanced skills development and education can be utilized to stimulate further growth and development in the country. Despite Tanzania’s economic growth, 68% of the population still lives below the poverty line of USD 1.25 a day. Enhancing skills development and education in Tanzania is therefore necessary to ensure that the country increases its high-level human capital. Tanzania has an acute shortage of high level skills, which could inhibit the economic growth of the country.

This country analysis focuses on broad human capital indicators including:

  • Country profile, including a brief overview of the country; corruption and governance indicators; and the business culture.
  • Economic indicators, including an overview of the economy; competitiveness and easy of doing business; largest companies; foreign aid and foreign investment.
  • Socio-demographic indicators, including population parameters, standard of living and poverty measures.
  • Healthcare and wellness: The focus here is on the impact of Tuberculosis (TB), HIV/AIDS and malaria on the workforce and workplace; the availability of specialist healthcare and also primary and secondary healthcare.
  • Education trends, including the education level of the population and workforce; as well as education standards and output.
  • Labour force, including the economically active population; job creation; employment sectors; skills shortages; the training and skills development framework; employment of expatriates; brain drain; industrial relations; professional human resource management and more.

Throughout the research, implications, challenges and recommendations are offered to employers, policy makers, donors, investors and the human resource management fraternity. This is all done within the context of the Tanzanian socio-economic realities.

Where appropriate, comparisons were made against South Africa and Nigeria. Nigeria was selected because it is the largest economy in Africa; South Africa for being the second largest economy and most modern economy in Africa. The data of these countries are used to provide context and perspective.

The country analysis refers only briefly to the Tanzanian economy, political situation or general risk factors. There are dozens of platforms, reports, research and publications available in that regard for those who wish to apprise themselves of information relating to those areas.

The research is unique by its predominant focus on the Tanzanian labour force.


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