The economy is mostly based on agriculture, which accounts for more than half of the GDP, provides 75% (approximately) of exports, and employs approximately 75% of the workforce. Topography and climate, though, limit cultivated crops to only 4% of the land area. The nation has many natural resources including minerals, natural gas, and tourism.
Extraction of natural gas began in the 2000s. Gas is drawn into the commercial capital, Dar Es Salaam and exported to various markets overseas. Tanzania has vast amounts of minerals including gold, diamonds, coal, iron, uranium, nickel, chrome, tin, platinum, coltan, niobium, and others. It was announced in February 2012 that the collapsed volcano approximately 200km north of Mbeya, Mount Ngualla, contained one of the largest rare earths oxide deposits in the world.
Tanzania is the third-largest producer of gold in Africa after South Africa and Ghana. The country is also known for Tanzanite, a type of precious gemstone that is found only in Tanzania. The mineral sector started to pick-up slowly in the late 90s; major discoveries are announced regularly. However, the mineral sector has yet to start contributing significantly to the overall Tanzanian economy, and industry is still mainly limited to processing agricultural products and light consumer goods.
Growth from 1991 to 1999 featured industrial production and a substantial increase in output of minerals, led by gold. Commercial production of natural gas from the Songo Songo island in the Indian Ocean off the Rufiji Delta commenced in 2004, with natural gas being pumped in a pipeline to Dar es Salaam, the bulk of it converted to electricity by both public utility and private operators. A new gas field is being brought on stream in Mnazi Bay.
Recent public sector and banking reforms, as well as revamped and new legislative frameworks, have all helped increase private-sector growth and investment. Short-term economic progress
