Financial Services

Tanzania Finance and Enterprise Development (TFED) project (1993 – 1997) assisted the government of Tanzania to lay down a framework for reforms and ultimately liberalized the financial sector. Before 1995, public/state banks dominated the market. Interest rates were very high, investments were made with no basis for economic/financial viability, cost of borrowing was very high and lending to the private sector was limited to short term loan products.

Reforms of the financial sector exposed the public banks and the government to free market forces. Treasury Bills interest rates leveled to market rates, inefficient banks were closed or restructured while others were sold and acquired by efficient venturers and to top it all new local banks and foreign multinational banks entered the.

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Consumer Goods

Local industry accounts for some 15 percent of consumer goods used in Tanzania. It is mainly limited to the processing of agricultural products and light consumer goods. The gap of 85% is imported from South Africa, Kenya, the Middle East, India, the Far East (Singapore, Malaysia and South Korea, China, Japan and USA, UK countries). The increased trade, resulting from open market policy, has been well received but has also brought some concerns as some low quality products such as milk and milk products, fruit and fruit juices, toys, etc. from the international market are dumped in the Tanzanian market. The Tanzania Bureau of Standard has intervened and in some instances averted dumping of these products in Tanzania.

With a population of about 35 million, the slow pace of.

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