Publication Type: Other
Countries: Tanzania
Authors: SOAS-ACE
Publication date: June 2019
Keywords: Corporations
What policies incentivise increasing shares of productive activities among domestic business conglomerates?
Research Questions
How have business conglomerates in Tanzania developed and what policy regimes made them willing to productively reinvest accumulated rents into new enterprises?
Key Findings
Business conglomerates models, their development trajectories and rents capture strategies are different and they respond to policy reforms and incentives for rents reinvestment differently. Tax incentives can encourage models which favour reinvestment strategies.
Implications
Business conglomerates can play a key role in driving industrialisation if policies incentivise internal reinvestment and allocation of rents across divisions, and integration of SMEs suppliers. Instead of attempting to recover captured assets, policy measures should aim to encourage reinvestment within conglomerates.
