Tanzania’s Experience with Privatisation Policies
Source: AFRODAD
In Tanzania as is the case in many other developing countries much of the impetus for privatization came from creditor institutions, above all the IMF and the World Bank, as part of their push for structural adjustment. This is, however, not to say that privatization was or has been completely based on external influence alone. There is ample evidence which show that most parastatals were seriously underperforming and were becoming too much of a burden to the government in terms of financial assistance.
Thus, in some areas privatization has produced good results in terms of improved performance, increased tax revenues, employment, efficiency and competition. This is articularly in reference to some few industries like TBL and TCC. However, in some other sectors particularly the infrastructural utilities privatization has produced poor results with little or no improvement in the quantity and quality of the services such as electrical and water supply. A Case Study 23 The prices of these services have risen so much to the extent of making the services not accessible and unaffordable by many people particularly the poor population.
Click hereto read the full report