Tanzania lies between Kenya and Mozambique on the east African coast. Formed by the union of Tanganyika and Zanzibar and other islands, Tanzania comprises a coastal lowland, volcanic highlands, and the Great Rift Valley. It includes Mount Kilimanjaro, Africa's highest peak. Tanzania was led by the socialist Julius Nyerere from 1962 until 1985. His Revolutionary Party of Tanzania (CCM) has won multiparty elections held in 1995 and 2000.

For many Tanzanians the family is the focus of traditional rural life. About 99% belong to one of 120 small ethnic Bantu groups. The remainder comprise Arab, Asian, and European minorities. The use of Swahili as a lingua franca has helped make ethnic rivalries almost nonexistent.

Strengths

Coffee, cotton, sisal, tea, cashew nuts. Zanzibar a major producer of cloves. Diamonds, gold. Expansion in nontraditional exports. State commitment to effective reforms. Rise in inward investment. Return to positive growth.

Weaknesses

Growth still too low to increase per capita income. Shortage of foreign exchange. Poor credit and equipment limit agricultural development.

Julius Nyerere was the dominant force in Tanzanian politics for 21 years. He founded the ruling party, the CCM, and his philosophy of African socialism guided Tanzania's development. Ali Hassan Mwinyi succeeded Nyerere as president in 1985, introducing a transition to multiparty democracy. Mwinyi stood down in 1995, when Benjamin Mkapa was elected president. Separatism in Zanzibar is a key issue, flaring into violent protests in 2001.

The instability of Tanzania's central African neighbors is a concern. It accepted over half a million Rwandan and Burundian refugees in the 1990s, but instigated mass repatriations in 1996. Improved relations with Uganda and Kenya since 1985 led to the rebirth in 2001 of the East African Community.

Defense accounts for 3.5% of budget spending. The armed forces are closely linked with the ruling CCM. There is an 80,000-strong citizens' reserve force.

Agriculture accounts for half of GDP and 80% of employment and exports. Forests cover 50% of Tanzania. More than 90% of energy demand is met from wood and charcoal. Hydropower provides 70% of electricity and is being expanded. Oil imports take 40% of export earnings, but offshore gas at Songo Songo is being exploited. Oil has been discovered off Pemba Island. The opening of a gold mine near Mwanza makes Tanzania Africa's third-largest gold producer.

The demand for fuelwood is a threat to forests. Tourism's demands have to be carefully balanced with those of fragile wildlife environments such as the Ngorongoro Crater and the Serengeti.

The roads, railroads, and ports are being upgraded, notably by an $870 million program to improve 70% of Tanzania's trunk roads.

A measles and diphtheria immunization programme was introduced for under-twos in 2001. A national campaign aims to fight the high incidence of HIV/AIDS.

Primary education, which begins at seven and lasts for seven years, is free; secondary students pay fees. In 1999, enrollment was 75% at primary level, but only 6% for secondary education.

Crime levels are low, although theft in Dar es Salaam has risen. Tanzania's human rights record is good.

The majority of Tanzanians are subsistence farmers. The small wealthy elite is composed mainly of Asian and Arab business families.

One-third of Tanzania is national park or game reserve. The Ngorongoro Crater and the Serengeti Plain are top attractions. Tourist numbers have risen sharply since 1990.

The mainland became the German colony of Tanganyika in 1884. The Sultanate of Zanzibar became a British protectorate in 1890.

• 1918 Tanganyika British mandate.
• 1961 Tanganyika independent.
• 1962 Nyerere becomes president.
• 1963 Zanzibar independent.
• 1964 Zanzibar signs union with Tanganyika to form Tanzania.
• 1985 President Mwinyi begins relaxation of socialist policies.
• 1992 Political parties allowed.
• 1995 Multiparty elections. Benjamin Mkapa becomes president.
• 1999 Death of Nyerere.
• 2000 Mkapa elected for second term.
• 2001 Increasing unrest among Zanzibar separatists.