ABSTRACT
INTRODUCTION Tanzania presents some interesting challenges to policy-makers concerned with developing strategies for rehabilitating and regenerating African agricultural processing and manufacturing capacity. Between 1967 and 1986, the Tanzanian government pursued a strong interventionist industrialization policy. This included nationalization of the majority of existing productive capacity, and state promotion, financing and management of new large-scale projects. Until the adoption of the Economic Recovery Programme in June 1986, the private sector was crowded out of official thinking, access to loan capital and foreign exchange allocations. Moreover, the majority of new state investment initiatives were financed through official loans from bilateral and multilateral agencies. Foreign lending agencies must, then, accept some of the responsibility for the subsequent performance of many of these investments.1
