This chapter examines how Tanzania has evolved from a poor country that offered a philosophical blueprint to a socialist future for Africa and a supporter of African liberation movements, into an economic powerhouse that asserts great influence over Eastern, Central and Southern Africa. Tanzania, once called a sleeping giant, has transformed itself into an economic leader capable of feeding most Southern African countries. Although poverty and income inequality coexist with economic growth, the Fifth Government has shown a determination to fight it with greater strength than ever before.