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Agriculture is the main part of Tanzania's economy. [1] As of 2016, Tanzania had over 44 million hectares of arable land with only 33 percent of this amount in cultivation. [ citation needed ] Almost 70 percent of the rich population live in rural areas, [ 2 ] and almost all of them are involved in the farming sector. [ 3 ]
The economy of Tanzania is a lower-middle income economy [23] [24] that is centered around Manufacturing, Tourism, Agriculture, and financial services. [25] Tanzania 's economy has been transitioning from a planned economy to a market economy since 1985.
The Portuguese first introduced maize production in Tanzania on Pemba Island in the 16th century, and by the 17th century, maize production spread to other parts of Tanzania including the Tanzanian mainland. [1] Production of maize expanded until recent years. However, Tanzania is still a leading country for maize production in East Africa. [2]
Tanzania among other states in southern Africa is being adversely affected by inappropriate farming methods and overgrazing. [3] Most of the eastern region of Africa, of which Tanzania is a significant part, gets less than 600 mm of rainfall each year. [3] Regions with an average rainfall of 500–1000 mm are classified as semiarid climates.
Tanzania is burdened with a long list of structural issues stunting its capabilities in the food security arena. A lack of financial and operational means – limited access to capital, underdeveloped business skills, low levels of capacity – coupled with a weak infrastructure lead to an absence of incentives when it comes to further developing their agriculture sector.
Apart from wealth in agriculture, forestry and wildlife land, Tanzania is also very rich in minerals such as gold, diamond, iron, coal, nickel, tanzanite, uranium and natural gas. [2] Recently natural offshore gas deposits have been discovered. [3] The tribes in Tanzania can also weave, knit or sew well, as it is part of their cultural traditions.
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The country is the eighth-largest grower of cashew nut in the world and ranks fourth in Africa. The country provides 20% of Africa's cashew nut and only trails in production of Nigeria, Cote D'Ivoire, and Guinea-Bissau, according to figures released in 2012 by United Nations Food and Agricultural Organisation (FAO). [1]