Case study of the United Republic of Tanzania

The United Republic of Tanzania is a developing country located on the eastern coast of Africa. With a population of 44.92 million (NBS, 2013) its economy is largely dependent on agriculture which accounts for about 25 per cent of the estimated GDP per capita of US$1,700. The Dar es Salaam Stock Exchange (DSE) is the only stock exchange in the country and is located in Dar es Salaam, the capital city. There are 17 companies, of which 11 companies (about 65 per cent) are domestic, listed on the exchange. The total market capitalization is US$8,876.62 million (Dar es Salaam Stock Exchange). The United Republic of Tanzania has a sizable small and medium enterprise sector. It is estimated that there are more than three million SMEs in the country (UNIDO, 2012) with a large proportion of businesses considered to be informal. SMEs and the informal sector in general are considered to be an important source of employment, absorbing about 62.5 per cent of yearly urban labour force compared to 8.5 per cent absorbed by the formal sector.

Related Subject(s): International Trade and Finance