Author(s): Vishwas Gupta
The United Republic of Tanzania is one of the East African countries landlocked by 8 different nations has a literacy rate of almost 70% and is growing by 7% of GDP per year. It is a $ 80 billion economy with a per capita income of almost $1700. The nation which has almost 15% of agriculture land offers 80% employment in agriculture area only rest 20% is employed in industries and services. Except agriculture main industries are mining and wood products. The presence of mineral resources, tourism and natural gas has led to an increase in the attraction of foreign investors into the country by 14.5 percent. FDI has covered almost half of the country’s current account deficit and 6.5 percent of its GDP. Investors are attracted due to proper implementation of macroeconomic policies, effectiveness in privatization and amount of natural resources available in Tanzania. The main obstacles to why some investors tend to withdraw capital inflows are lack of transparency, infrastructure, and low development in industrial sector. The following case will highlight the economic development and hindrance faced by Tanzania and how is has overcome and growing rapidly.