Over the past 30 years Tanzania has changed from a socialist to a market driven economy. The government still owns some of the telecommunications, banking, energy and mining companies but it has encouraged foreign private investment in these areas. For example, foreign owned commercial banks now own 48% of the financial services in Tanzania. This has caused streamlining in the banking services and interest rates have come down. All land in Tanzania is owned by the government and people can rent it for 99 years. Foreign investors would like to buy land but the government is reluctant to sell. This is partly due to the natural resources that lie underground. Large MNCs are now responsible for the mining of minerals in the country such as gold, copper and silver. This is due to the government’s law reforms, which made it easier to invest in the country. Domestic companies make up 10% of the mining industry. The recently discovered oil and gas fields are also being developed by foreign companies and are increasing the amount of private investment in the country.
In the past the IMF, World Bank and other donors have provided funds to improve the transport infrastructure (rail and ports) in the country. More recently, the government is trying to increase competition in the provision of infrastructure, such as electricity provision, to try and improve the service received. They are also trying to get private investment from domestic companies and TNCs in railways and water supply. Many of the regions of Tanzania have brochures on the internet to inform foreign investors about the great investment opportunities that are available in their regions.