The United Republic of Tanzania, formed in 1964 by the union of the newly independent Tanganyka and Zanzibar, is a model of successful democratization and steady growth in Africa. For almost half a century, Tanzania has enjoyed political stability, including ten years of multi-party democracy. The rule of law is also well established in Tanzania and the level of security is notably higher than in its neighbouring countries.
Tanzania´s membership in regional trading blocs, along with its geographic location, makes the country a strategic destination for investment. Tanzania offers a domestic market of 36 million consumers. Investors in the country also enjoy access to the 93 million consumers of the East African Community (EAC) - which Tanzania founded in 2000 with Kenya and Uganda - and to the 215 million consumers of the Southern African Development Community (SADC). Besides its 1,400 kms of coastline on the Indian Ocean, Tanzania has a number of other exceptional natural assets, making the country one of the finest tourist destinations in Africa. Twenty five per cent of Tanzania´s total area is set aside as national parks and game reserves (which include the famous Mt Kilimanjaro and the Serengeti plains). Mining is attracting a number of foreign investors, with Tanzania being the third largest gold producer in Africa. There are opportunities as well in agriculture and infrastructure.
Difficulties facing investors in Tanzania include the transport infrastructure, limited labour skills and bureaucracy. But Tanzania´s prospects are bright. At the domestic level, it has a steadily growing economy and foreign direct investment is a success story. At the regional level, investors can expect further integration of the EAC, which established a Customs Union in January 2005 and is expected to form a political federation by 2013.
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