The role of informal microfinance institutions in saving

An investor may decide to explore these opportunities and those found in the capital market
in forming a portfolio. One thing should keep in mind- for better diversification results; each
asset added in a portfolio should increase the return-to volatility ratio of a portfolio than
before.
2.1.4: GOOD REASONS FOR INVESTING IN TANZANIA
Tanzania has a stable and peaceful socio-economy environment, free of ideological
confrontation, ethnic strife and labor disputes.
1. Tanzania adheres to a free market economy and private-sector activity.
Government-owned companies are under privatization and reorganization.
2. Tanzania has a vast, under-explored and still largely untapped wealth of natural
resources, as well as tremendous agricultural, mineral and energy opportunities.
3. In terms of human resources, Tanzania has a large, trained, friendly, economical and
hard working labor force.
4. Tanzania has attracted a growing number of investors and entrepreneurs who are
looking at the country with a light of its economic rebirth since the mid-1980,
embodied in its far-reaching macro-economic reforms programs.
5. Tanzania has a good communications with all parts of the world and enjoys a
strategic location in terms of regional and international commerce. It is situated at
the cross-roads of maritime trade traffic.
6. Tanzania is accelerating its progress in the field of infrastructure, especially in
transport, communication and energy.
7. Tanzania is a recipient of massive support and investment from major international
financing institutions, such as the World Bank, International Monetary Fund and
other donor agencies.
8. Tanzania is a member of the Southern African Development Community (SADC),
Preference Trade Area (PTA), and the recently revived East African Cooperation
(EAC), signatory of the EEC/African Lome Convention as well as Multilateral
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