Economic relations between Tanzania and post-apartheid South Africa: a case of Illovo Sugar Groups Acquisition of Kilombero Sugar Company

This study begins as an inquiry into the new economic relations between Tanzania and post South Africa since free market economy was formally introduced in Tanzania in the early 1990s. we attempt to examine the impact of foreign direct investment (FDI) from South Africa on Tanzania’s economic, political and social spheres. We also investigate the relationship between (TNCs) from South Africa that operate in Tanzania multinational corporations (MNCs) from Northern developed countries . We find that African more powerful than Tanzania in all aspects, thus the two can hardly bargain equally. In this bilateral relationship Tanzania plays a role of an absolute loser to South Africa and other Northern capitalists have find that South African TNC operations in Tanzania intensify unemployment, exploitation of the poor by the rich, social stratification and racial segregat ion, uncertainty, political unrest and hostility. Again, TNCs show a tendency of grabbing policing power from the government of the hosting state, and hence undermine the hosting state's self-determination. Generally, we discover that TNCs are profit-seeking firms par excellence, irrespective of the hosting states• interests. Furthermore, we learn that TNCs from South Africa are mere subsidiaries of MNCs of the capitalist countries of the North. We therefore emphasize the global reach theory as relevant in contemporary transnational relations between the less developed and the more developed economies. Hence we caution states in developing economies to handle TNCs from developed countries with extract if they are to improve their conditions.