The Business environment in Tanzania after Socialism: Challenges of Reforming Banks, Parastatals, Taxation and Civil Service.
This article assesses the business environment in Tanzania after socialism. It examines challenges of reforming banks, parastatals, taxation and the civil service. Data was obtained from various literatures. Findings show that major reforms have taken place in all the sub-sectors, and there is significant increase in the participation by the private sector in the economy with increased production. Private Banks have increased from zero in 1994 to thirteen in 1998. Over 40 per cent of former state owned enterprises have been divested, 50 per cent of which were sold. Some are performing well, contributing to government income and reversing the drain through subsidy. The taxation system has improved. It now recognizes the role played by the private sector and has introduced new mechanisms to collect taxes e.g., VAT, and plugging tax evasion loopholes. Private sector investment has increased and major developments are notable in mining and tourism.