Privatization of the National Bank of Commerce - Tanzania
Privatization of the National Bank of Commerce (1997) Ltd. What Lessons can be Learned?
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National Bank of Commerce (NBC) is a product of nationalization of private and foreign banks in Tanzania in 1967. The government of Tanzania assumed that NBC and other state institutions that were formed after independence would perform as efficiently as private enterprises and that the management would acquire entrepreneurial skills needed to operate in a new business environment. The reverse was actually the case. Financial and managerial problems were rampant in these state enterprises leading to almost a total collapse of the economy. This paved way to policy changes, hence privatization. ...
National Bank of Commerce (NBC) is a product of nationalization of private and foreign banks in Tanzania in 1967. The government of Tanzania assumed that NBC and other state institutions that were formed after independence would perform as efficiently as private enterprises and that the management would acquire entrepreneurial skills needed to operate in a new business environment. The reverse was actually the case. Financial and managerial problems were rampant in these state enterprises leading to almost a total collapse of the economy. This paved way to policy changes, hence privatization. Advantages and challenges of privatization have generated a considerable debate among people of all callings and particularly researchers, politicians and public employees. This book contributes to a few researches done on NBC's privatization. Besides discussing the general concept and process of privatization in Tanzania, it highlights the advantages and setbacks that resulted from NBC's case and the lessons that can be learned from the experience.
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