Formerly under
British colony, Tanganyika gained its independence in 1961. The unification with Zanzibar
and Pemba islands occured in April 1964, and the islands and the mainland formed the
nation Tanzania. The inhabitants of Zanzibar and Pemba enjoys the status of an autonomous
territory. However, the union has never been a comfortable one. In recent years the
islanders have campaigned for secession and restoration of the islands' independence.
Tanzania is one of the
poorest countries in the world. Its economy is heavily dependent on agriculture, which
accounts for about 58% of the GDP, provides 85% of exports and employs 90% of the
workforce. However, topography and climatic conditions limit cultivated crops to only 5%
of the land area. Commodities for exports include coffee, tea, cotton, sisal, cashew nuts,
cloves and copra. After agriculture, tourism is also an important sector. Industry
accounts for 8% of the GDP and it is mainly limited to processing of agricultural products
and light consumer goods. An economic recovery program announced in mid-1986 has generated
notable increases in agricultural production.The World Bank, the International Monetary
Fund and bilateral donors have provided funds to rehabilitate Tanzania's deteriorated
economic infrastructure. Economic growth in 1991-94 featured a pickup in industrial
production and a substantial increase in the output of minerals, especially gold. Recent
economic and banking reforms have helped increase private sector growth and investment.
Tanzania's telephone network
has a capacity of over 185,111 lines. In 1998, the total number of connected lines was
121,800 resulting in a telephone density of 0.38 lines per hundred population. The
penetration of telephone lines is highly biased toward the largest cities which have over
50% of the current lines. The deregulation of the communications sector was carried out in
1994 with the separation of the postal and telecommunications services and the
establishement of an independent telecommunications regulatory authority the year
following. Plans are underway to liberalise the sector.
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