Although Tanzania suffers from an imperfect form of liberal democracy and high levels of corruption, it has attracted unprecedented levels of foreign investment over the past fifteen years, and is predicted by the IMF to be one of the fastest growing countries in the world over the next decade. This provides some grounds for thinking that Tanzania represents a case of ‘developmental patrimonialism’, a type of regime that achieves development without conforming to ‘good governance’ orthodoxy. This Research Report rejects that idea. Drawing links between the management of economic rents and the climate for business and investment, it shows that rent-management in Tanzania remains largely decentralised and undisciplined, with deleterious consequences for investors. The authors conclude that Tanzania is a case of ‘non-developmental patrimonialism’, and its regime is likely to face a mounting legitimacy crisis in coming years.
More on Tanzania: the new APPP Background Papers listed below explore specific aspects of this Research Report:
APPP Background Paper 01, Public goods, rents and business in Tanzania, Brian Cooksey, June 2011
Brian Cooksey’s paper examines rents, public goods and the investment and business environment in contemporary Tanzania. It is based on a review of the academic literature, government, international development agency and media reports, and interviews with a wide range of respondents.
APPP Background Paper 02, The investment and business environment for export horticulture in northern Tanzania, Brian Cooksey, June 2011
Although the investment and business environment places serious obstacles in the way of potential investors, foreign investment in Tanzania reached record levels prior to the global credit crisis of 2008-09, driven primarily by investments in gold mining and other minerals, and tourism. This report focuses on Tanzania’s commercial flower, cuttings and seed companies (‘export horticulture’) and asks whether the obstacles to foreign investment might be neutralised by other factors.
The research looks at access to land and water rights, other determinants of investment in horticulture, and the factors influencing profitability.
APPP Background Paper 03, The investment and business environment for gold exploration and mining in Tanzania, Brian Cooksey, June 2011
Despite serious shortages of human capital and inadequate economic infrastructure and regulation, Tanzania has managed to attract unprecedented amounts of foreign direct investment (FDI) during the last fifteen years. Yet, despite tax and other official investment incentives, the large foreign mining companies (FMCs) have received a hostile reception by the Tanzanian public at both local and national levels. NGOs have campaigned against FMCs on perceived human rights violations while political and media commentary are almost unanimous in denouncing FMCs for not paying taxes. This report examines the factors that influence FDI and local investment in gold exploration and mining.