INTRODUCTION

Tanzania is considered to be one of the poorest countries in the world with a per capita GDP of US$267 which is far less than the average for Sub-Saharan Africa of US$500. ⁽¹⁾  In terms of purchasing power parity, it is reported to have the second lowest GDP per capita in the world next to Sierra Leone. ⁽²⁾  Half of its population lives below the poverty line and the vast majority of these poor households live in rural areas. ⁽³⁾  Tanzania’s human development index value of 0.40 ranks it number 160 out of 175 countries included in the 2003 UNDP Human Development Report.  Approximately 76% of the population lives in rural areas; 24% lives in urban areas. ⁽⁴⁾  The economy depends heavily on agriculture, which accounts for 45% of GDP, provides 85% of exports, and employs 80% of the work force. ⁽⁵⁾  Services, led by tourism, account for 39% of GDP while industry accounts for 16%. Going by these statistics, Tanzania is classified among the poorest countries in the world.