Question

Explain five economic challenges that Tanzania has faced since independence.

Answer 1

1. Natural calamities/drought which reduced agricultural production/economic growth of the country
2. Nationalization policy adopted by President Julius Nyerere forced many foreigners to leave the country, making them lose their interest leading Tanzania to lose out on profits
3. The adoption of socialism/Ujamaa was resisted in some areas as it did not consider differences in economic potential
4. Shortage/ insufficient donor funds has slowed down the country’s economic programmes
5. Poor transport infrastructure has reduced economic growth/exploitation of resources
6. Depreciation of Tanzanian shilling has made exports less competitive in the world market/reduced foreign exchange earnings.
7. General poverty of masses and government’s inability to solve the problems
8. Corruption has compromised the government development agenda
9. Collapse of the initial East Africa Community denied the country a common market for her goods
10. Huge external debts
11. Fall in major export prices.