Social -Economic Impact of Privatization:The Tanzania experience
Adam M. Mwandenga (Lecturer, in Economic and Finance, Department of Professional Accountancy,IFM, Dar es Salaam)
Download Article | Published On 01/07/2000


In Tanzania and during the short run period privatization has had both positive and negative effects to the economy. The positive impact seems to outweigh the negative. Positive divestiture results can be measured by the number of firms that have been divested, performance of firms which have already been divested, performance of firms, particularly those involved in the supply of public utilities which for the time being remain in the public sector domain, and the degree of competition enhanced by privatization in general. Negative divestiture results seem to hinge primarily on the number of retrenches. This factor call for further research to quantify the exact amount of loss of job opportunities, since there are cases where divestiture led to an increase in job opportunities. Indeed there are also cases where some of the retrenched were redeployed.

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