The article addresses itself to the whole exercise of parastatal privatization. In essence it argues that before enterprises being privatized they played a major role in the economy of Tanzania. Reasons advanced as to why parastatals were formed include; private sector failed to meet public demand where private sector failed to invest in areas considered to be risky and other reasons. Privatization is seen as an external force hinging on the parastatals’ failure to operate economically and consuming a large share of public funds. In conclusion, problems are cited as to why privatization exercise is yet to be an exemplary undertaking and some future benefits are highlighted