What Happened: An apparently leaked report by the International Monetary Fund contains criticism of the Tanzanian government's interventionist economic policies and noted that they are hurting the country's investment climate, Bloomberg reported April 18. The Tanzanian government subsequently decided to block the report's release.
Why It Matters: The report will likely serve as an alarming sign for international investors who already have been concerned that the Tanzanian government is targeting foreign multinational companies.
Background: Foreign direct investment made up 2 percent of Tanzania's gross domestic product in 2017, down from 5 percent in 2014, reflecting cooling investor confidence in the country. The government of President John Magufuli has become increasingly hostile to foreign multinationals and has implemented measures that included the jailing of mining and telecom company representatives, among others.
Read More:
- Tanzania's 'Bulldozer' President Risks Flattening His Country's Reputation and Revenue (March 1, 2019)
- East Africa: Where Ambition Meets Reality (Sept. 16, 2016)
