PROBLEMS FACING TRADE IN TANZANIA
Smuggling: Some people sneak in goods from other countries and at the same time export TANZANIA’s products to such countries through the black market. Such trade is detrimental to the economic growth of the country because such traders avoid paying taxes. Nature of TANZANIA’s imports and the unfavourable balance of trade: Most of the imports are heavy industrial materials and finished products. These products are expensive as compared to TANZANIA’s exports thus results in a large deficit balance of payment. Value of TANZANIA’s Exports: TANZANIA’s exports are mainly based on processed raw materials. Minerals and processed agricultural materials from TANZANIA are generally bulky and of low value. Thus the total production and export cost is not commensurate with the profit accrued from such sales. Poor trade Pattern: TANZANIA's patterns of trade still follows the line of flow established by her former colonizer Britain being mainly a supplier of raw materials; the developing countr...