The Impact of Liberalization and Privatization Policy

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The Impact of Liberalization and Privatization Policy

By | October 2012
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TOPIC: THE IMPACT OF LIBERALIZATION AND PRIVATIZATION POLICY IN TANZANIA.

INNOVATION AND DEVELOPMENT

NAME: SENGELA, PHILIPO

SEMESTER: SUMMER II, 2012

1:0 INTRODUCTIONS.
1:1 Country Overview.
Tanzania is one of developing countries in Sub-Saharan Africa located in the eastern part of Africa continent. Likewise, other developing countries, the Tanzanian economy are characterized by a large traditional rural sector and a small modern urban sector. It is heavily depends on agriculture, which accounts for about 35% of GDP, provides 85% of exports and employs about 75% of the work force. The industrial and construction sector is still contributing less than 20% of GDP and mainly produces consumer goods such as beverages, food stuffs, detergents, home appliances, and building materials. Tourism sector is a leading source of foreign currencies, accounts for about 45%. Other service sectors are banking, insurance, social security funds, hotels, business and entrepreneurship. For the long time now, Tanzania has been experiences imbalance of trade mainly caused by relied upon traditional exports which has less value in the world market. The main exports are coffee, tea, tobacco, cotton, cloves, and mineral (gold, tanzanite, diamond). According to national census conducted in 2002 Tanzania population was 34.57 million including 98,625 in Zanzibar and an estimate of 2010 was approximately to reach 40 million. (NBS, 2010) Local people are native Africans 99% (of which 95% are Bantu consisting of more than 120 tribes). The remaining 1% is Arabs, Asians, Americans, and Europeans. Tanzania located in Eastern Africa within longitudes 29° and 41° East and Latitude 1° and 12° South. It shares its borders with Burundi, Rwanda, Kenya, Uganda, Zambia, Malawi, Mozambique, Democratic Republic of Congo, and Indian Oceans with a coastline length of 1,424 km. Tanzania is the largest country in East Africa in terms of size of land and population. The Land area is about...