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Strengths Of Tanzanias Economy And Human Resources Economics Essay

1743 words (7 pages) Essay in Economics

5/12/16 Economics Reference this

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Human resource is also defined as the way of managing people through a strategic and logical approach. Human resources in an organisation are the key drivers for the success and prosperity of the organisation. The influence of globalisation and technology makes today’s organisations ever changing and therefore human resources is very important in order to maximise organisational effectiveness and maximise potential profits.

Tanzania has a strong and competitive economy through several sectors such as the agricultural sectors which is the main economic activity of the majority. In terms of economic categorization the Tanzanian economy is that of a developing country as distinct from a developed economy like that of the United Kingdom which is basically industrial. Like any other developing economy, the Tanzanian economy has its strengths and weaknesses.

Tanzania has a huge arable land compared to the other countries in the East African economic sub region. It is politically stable and socially peaceful with potential agricultural economy. The enlarged East African common market is a plus to the growth of the Tanzanian economy. The huge arable land makes Tanzania potentially strong in agricultural production of both food and non food agricultural products. The country is a large exporter of coffee, tea, sisal, cotton, cashew nuts and oil seeds for example sunflower. The large land mass of the Tanzanian economy permits growth of a large livestock industry. Tanzania is among the ten top countries in Africa with potential livestock farming and development. Moreover Tanzanian economy is also rich in forestry reserves a phenomenon that permits development of a viable wood industry. All assortments of minerals both metallic and non metallic minerals are found in Tanzania in large quantities. To mention a few are Uranium, gold, lead, tin, iron and non metallic minerals like diamonds, gemstones like Tanzanite and other precious minerals.

Growth of labour force.

The growth of labour force in Tanzania has grown compared to the early 1990’s. “The formally educated workforce is small in number and is concentrated in urban areas. In gross terms, an estimated 500,000 – 600,000 new entrants join the labour market each year, most of whom are the youth” Tanzania government website . The youth activeness has created a rapid growth of labour market in Tanzania.


The Indian Ocean that borders Tanzania in the east has a huge potential for the development of a viable fishing industry. Countries such as Japan and China have licensed fishing vessels in the Tanzania waters. Fishing has grown to a large extent which is a means of earning a living.


Tourism has been a major factor for economic and financial boost towards the growth and prosperity of Tanzanias economy. Tanzania is a country with abundant natural animal species in national Parks such as Serengeti, Manyara, Ruaha and Ngorongoro crater. The country attracts tourists from different countries which is now a potential tourist industry and important to the country’s economy. Tourists visit Tanzania from different parts of the world such as America, Britain, Australia, New Zealand and many more which also add up in the prosperity of the foreign currency.


Despite all the advantages of the strength of Tanzania’s economy as described above, the economy is beset with many weaknesses as detailed below:

Technological backwardness.

As a consequence of the said technological backwardness, Tanzania depends on imported technology for the development of its economic sectors and employing foreign experts in other specialized sectors that is in industrial, mineral and health areas. The country is large and need massive investment in infrastructure development such as roads, airports and ports.

Demography and poor environmental issues.

There are several poor environmental conditions facing the growth economy in Tanzania at large. Demography is a major factor that affects the economy of Tanzania as there is a high rate of dependency. There are other weaknesses facing the economy of Tanzania such as unemployment, health issues, poor infrastructure, recruitment and several other problems.



Recruitment is a major aspect in relation with human resource management. The recruitment aspect in Tanzania is highly based on the qualifications especially in terms of education. For instance not every individual can attain a good position in the public and private sectors. In Tanzania education takes its lead for securing a good paying job that is the reason a large number of individuals are unemployed due to a high level of illiteracy rate. ” The scope of job creation in the formal public sector is limited. In contrast, economic reforms have shown positive effects on growth in the formal private sector. These reforms need to be continued to enhance faster growth” In Tanzania to be recruited in the public or private sector is not easy at all for people with low level of education for instance in the BANK OF TANZANIA which is a public sector they only recruit graduates for higher positions.


Selection process in Tanzania differs from one organisation to another for instance the Bank Of Tanzania operates an efficient system of selection process which helps the organisation secure the best candidate for the job. The Bank of Tanzania (BOT) conducts job fairs and direct recruitment, then through screening process favourable candidates are determined according to their skills, experience and education level. Thereafter potential candidates are invited to a formal face to face interview and within the interview they are assessed according to their skills and experiences through tests. After the interview references are checked and assessed. Candidates who satisfy the board are then invited for seminars where they are informed on all rules and regulations of the contract and the best candidates are then selected.


Training and development is very important in the management of human resources. Training and development helps to increase employees performance and motivation. Many organisations in Tanzania conduct different trainings and development programmes that helps to strengthen their organisations and meet their goals and targets. Tanzania Institute Of Bankers (TIOB) is an example of an organisation which has several kinds of training such as health and safety, stress management, career planning and development, time management, employee relations and many more.


Any organisation which focuses on the employee benefits is always on the right path as employees are the solid foundation for the growth and prosperity of an organisation. With reference to Bank of Tanzania which is a public organisation it has several kinds of benefits packages such as bonuses, increase in wages, career development, incentives, healthcare, medical care and many more.


Tanzania as a country supports the equal employment act and it is the obligation of all organisations to abide to the laws of the nation. The issue of equal employment opportunities is a universal matter where as it is practices all over the world. The Tanzanian government has increased women’s access to education so as to loosen the gap between men and women in education sector that leads to the employment sector. The government of Tanzania has increased the percentage rate of girls entrance to higher education institutions so as to give them a chance of equal employment afterwards. Moreover men and women who work in the private sectors have the same level of equal employment opportunities.


The management of human resource in Tanzania follows all the necessary human resource planning and strategies that helps to manage the organisations at large. With reference to the Government of Tanzania it is very much conscious on the management of human resources as it works towards the improvement of people’s welfare, development of rural areas, reduce the high level of illiteracy rates and create job opportunities for the Tanzanian majority.


The economy essentially suffers from technological backwardness and lack of adequate professionals, qualified personnel in various sectors of the economy. Qualified personnel’s are quite important in the context of human resource management. Tanzania faces a great challenge in having adequate qualified personnel’s in different sectors such as engineering, education and health sectors. For Tanzania to eradicate these problems the following aspects should be taken into account so as to manage the human resources effectively:

The strengths and weaknesses of the Tanzanian economy explained above has serious implications on the planning and conduct of the education system as a whole in order to have adequate personnel to manage the economy in all sectors.

All government ministries, departments and the private sector involved in the educational sector must develop short, medium and long term educational plans that would address the short, medium and long term manpower requirements of the economy. More agricultural experts are needed, Doctors for health sector, Engineers for construction and infrastructure development. Colleges and Higher learning institutions need to be staffed with appropriate teaching personnel to deliver the needed trained people. In this case teaching staff that are qualified in each relevant field are to be deployed from primary education to university level to fulfill the need of the Tanzania economy and development.

To address adequately the problem of technological development the government must make available adequate funds for the training of experts, scientists and technicians. In the absence of scientists, engineers and technicians in adequate number there is no way the Tanzanian economy can eradicate the problem of technological backwardness. Educated labour force in all sectors of the economy necessary for the economic growth.


Human resource management is a very important sector in any business sector. As it is the management of humans in a logical manner therefore it has to be managed effectively. With reference to the strength and weaknesses of the economy of Tanzania there are several human resource issues which emerge such as the recruitment process, selection process, training and development, equal employment opportunities and other factors. As seen from different organisations such as the Bank of Tanzania, the Government of Tanzania and Tanzania Institute of Bankers human resource management is very important for the growth of their organisations.

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