Dr. Donath Olomi and other educators from the University of Dar es Salaam’s (UDSM) Entrepreneurship department discussed economic history of the country as well as the opportunities and challenges that Tanzania faces. Tanzania had a socialist economy from its independence in 1961 to 1985. It only started to liberalize and privatize its economy in 1986, so there are still many socialist traits in its present day economy and business.
I found that Tanzania’s mining industry was very interesting. This sector was supposed to be very strong. Tanzania is rich with natural resources. However, because of bad contracts with foreigners Tanzania only received 3% profit from this lucrative industry, while foreign investors received a whopping 97%. I think that Tanzania and many other developing countries can learn from this. They need to make sure that foreigners don’t drain their wealth. They need to structure their contracts and joint ventures to ensure that foreigners bring wealth to their countries.
I found that Tanzania’s mining industry was very interesting. This sector was supposed to be very strong. Tanzania is rich with natural resources. However, because of bad contracts with foreigners Tanzania only received 3% profit from this lucrative industry, while foreign investors received a whopping 97%. I think that Tanzania and many other developing countries can learn from this. They need to make sure that foreigners don’t drain their wealth. They need to structure their contracts and joint ventures to ensure that foreigners bring wealth to their countries.
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