ABSTRACT

In African converse, the second economy is often called jua kali, literally ‘hot sun’ in Swahili, because much small-scale manufacturing and repair work is done out in the open. The response of the African state to the growth of the second economy has tended to combine both incorporation and repression. The very essence of the Zairean secondary economy is that the state is itself working the black economy. The growth of the second economy in Tanzania is seen as a reflection of the weakening of state control, and not only the inability of the state to provide the basic needs of the masses but also its ineffectiveness in controlling and coordinating its excessive interventionist programmes. Many observers of African economic development have commented on the very strong growth of the second economy in marked contrast to the weakness, and recent decline, of industrial development.