The United Republic of Tanzania was formed in 1964 as a union of mainland Tanzania (formerly Tanganyika) and the Zanzibar Islands (Unguja and Pemba). The country has an abundance of natural and mineral resources, as well as a variety of agro-climatic regions. Tanzania has a population of 61,741,120 people, according to the 2022 national census, with a 3.2 percent annual population growth rate. Tanzania experienced an average economic growth of 7 percent over the past decade, well above the 6 percent average for Sub-Saharan Africa (SSA) and East African Community (EAC) members and the 4 percent global average. Gross Domestic Product (GDP) grew at a rate of 4.90 percent in 2021, up from 4.8 percent in 2020. 

In 2021, the country’s Human Development Index (HDI) score was 0.549, ranking it 157th out of 191 countries, placing the country in the low human development category.  Between 1990 and 2021, Tanzania's HDI increased by 49.1 percent, rising from 0.368 to 0.549. Despite this progress, poverty and malnutrition remain severe and widespread, particularly in rural areas, where more than 80 percent of the population lives.

Tanzania is classified as a lower-middle-income country, with a GDP per capita of approximately $1,283 as of 2023, according to the World Bank. The economy is relatively diversified: agriculture contributes around 25 percent to the country's GDP, industry about 30 percent, and services make up the remaining share. Despite ongoing structural transformation, agriculture remains the main source of employment, engaging roughly two-thirds of the population.

Urbanization is progressing steadily, with around 38 percent of the population now residing in urban areas. Poverty remains a major challenge, about 43 percent of Tanzanians live below the international poverty line of $2.15 per day (2017 PPP), which is roughly equivalent to 2,100 Tanzanian Shillings per day in 2024. Tanzania's Human Capital Index (HCI) stands at 0.39, close to the average for Sub-Saharan Africa, indicating significant room for improvement in health and education outcomes.

According to the Global Forest Resources Assessment (2023), Tanzania possesses extensive forest resources, covering approximately 48.1 million hectares, equivalent to about 55 percent of the mainland's total land area. These forests span diverse ecosystems, including woodlands, mangroves, coastal forests, catchment forests, and government-managed forest plantations. Despite this natural wealth, Tanzania is experiencing a high rate of deforestation, primarily driven by heavy reliance on firewood and charcoal as household energy sources, along with land clearing for agriculture, industrial development, and infrastructure projects. This ongoing deforestation presents serious environmental and socio-economic challenges, including biodiversity loss, soil degradation, and increased greenhouse gas emissions (Tanzania Environment Sector Overview, 2024).

Tanzania ranks among the top three countries in Africa in terms of livestock population, the second largest in Africa after Ethiopia.  According to the National Sample Census of Agriculture 2019/20 (published in 2021), the country is home to approximately 33.9 million cattle, 24.5 million goats, 8.5 million sheep, and 87.7 million poultry. These figures highlight the central role of livestock in Tanzania’s rural economy and food systems.  The Economic Survey Report 2022 from Tanzania’s Ministry of Finance indicates that the livestock sector contributes around 27 percent to the agricultural sector’s share of GDP. Within this, beef production accounts for about 40 percent, dairy products contribute 30 percent, while the remaining 30% comes from other livestock products such as eggs, hides, skins, and poultry. This sector not only supports livelihoods for millions of rural households but also plays a critical role in national food security and export earnings.

Fisheries provide a vital source of food and valuable economic contributions to the local communities involved in fishery activities along Tanzania's 1,424 km coastline and numerous islands. Tanzania’s average fish production reached 472,579 tons annually in 2024, valued at TZS 2.94 trillion, compared to 426,555.46 tons worth TZS 2.86 trillion in the same period of 2022/2023. Of these, 429,168 tons (91 percent) come from traditional fishing methods, and 43,411 tons from fish farming. The industry employs over 4,000,000 people engaged in fisheries and related activities, with over 400,000 fisheries operators directly employed. Small-scale artisanal fisheries account for the majority of fish catch produced by fisher folk in the country, operating in shallow waters along the continental shelf, using traditional fishing vessels such as small boats, dhows, canoes, outrigger canoes, and dinghies.

Destructive fishing methods, such as dragnets and dynamite fishing, are a major concern because they destroy important habitats for fish and other organisms, and there is a long-term trend of overharvesting of fishery resources. Youth unemployment, climate change, infrastructure bottlenecks, improving the business environment, improving service delivery to build a healthy and skilled workforce, and urbanization management are among the other development challenges.