I found this article interesting given some of the discussions we had at the end of class on Thursday, regarding aid vs. investment. Barclay’s Africa Group recently invested 32 billion as new capital into its branch in Dar es Salaam, Tanzania. The bank stated that it has confidence in the Tanzanian market and opportunities for growth. Barclay’s Africa asserts that it is committed to its “pan-African strategy and to supporting businesses in Tanzania.” Specifically, the natural resources sector and gas development are opportunities that the bank hopes to invest in and have growth.
We frequently discussed the downsides of foreign aid for the continent (e.g. mismanagement and corruption) in class, and began to touch on the potential value of investments as African countries’ economies grow. This investment is an example of confidence in Tanzania’s economy and opportunities for growth, which could serve as another positive step forward for economic development. Since Tanzania’s government is relatively stable, the country presents a good investment opportunity for foreign companies, and Tanzanian businesses will hopefully get on board too.