Tanzania is one of the poorest countries in the world. The economy is heavily dependent on agriculture, which accounts for half of GDP, provides 85% of exports, and employs 90% of the work force. Topography and climatic conditions, however, limit cultivated crops to only 4% of the land area. Industry is mainly limited to processing agricultural products and light consumer goods. The World Bank, the International Monetary Fund, and bilateral donors have provided funds to rehabilitate Tanzania's deteriorated economic infrastructure.

Tanzania has vast amount of natural resources like gold deposits and beautiful national parks that remain underdeveloped. Growth in 1991-99 has featured a pickup in industrial production and a substantial increase in output of minerals, led by gold. Natural gas exploration in the Rufiji Delta looks promising and production has already started. Recent banking reforms have helped increase private sector growth and investment