with ongoing reforms, the Government of the United Republic of Tanzania
has redefined the role of the state to that of policy maker, maintenance
of law and order, provider of basic social and economic infrastructure
and facilitator of economic growth.
The government recognises that it has the role to facilitate the
private sector and other economic agents to actively and effectively
invest in productive and commercial activities in order to accelerate
economic growth and development. The
Government can do this mainly through putting
favourable policies in place, provision of a conducive
environment for local and foreign investment, promotion of institutional
changes conducive to the development of the private sector, stimulating
investor’s confidence through transparent, effective and efficient
administrative processes in government institutions and to put in place
an appropriate legal and regulatory framework.
recognition of this important role towards creating an enabling
environment for private sector development, the Government has been
implementing wide ranging institutional and policy reforms.
It has liberalised its economy; amended and enacted a number of
investment related laws and policies, undertaken financial reforms,
liberalised its trading regime; put in place an attractive investment
package; and undertook a number of initiatives to promote and develop
the private sector. Tanzania
now has one of the most liberal investment regimes in Africa.
supporting the complementary and supplementary role of the private
sector in accelerating socio-economic development, the Government has
developed modalities for institutionalising the
then ad-hoc consultative process with the private sector in
evolving appropriate and effective macro and sectoral policies. (e.g.
through participation in the Government Tax Task force and the Public
Expenditure Review working groups).
Similarly, the private sector itself has evolved institutional
mechanisms of interactions and consultations with the Government through
umbrella organisation such as the Tanzania Chamber of Commerce Industry
and Agriculture (TCCIA), Confederation of
Tanzania Industries (CTI), the Tanzania Private Sector Foundation
(TPSF) and the National Business Council (TNBC) which was
launched in April
2001. TNBC will
provide the main forum for public/private sector consultations on
strategic issues of economic growth and economic development.
private sector to all these changes has been cautious, but overall
monopoly in the financial sector has been broken as there are now more
than than 20 private banks and financial intermediaries accounting for
nearly 80% of total assets in the banking system.
The insurance market has been opened to private and foreign
participation and a Dar es Salaam Stock Exchange has been opened.
More than 250 out of 400 enterprises that used to run as state
owned enterprises have been privatised.
The agriculture and infrastructure sectors are increasingly
coming under the private sector through privatisation, concessioning of
assets for private operation and new entry.
most of the public enterprises in industry have been privatised.
The most robust response has been in mining and tourism,
currently the destination of the bulk of local and foreign investment.