poor infrastructure and long lead times. External trade and investment Tanzania's history of political stability has encouraged foreign direct investment. The government has committed itself to improve the investment climate including redrawing tax codes, floating the exchange rate, licensing foreign banks, and creating an investment promotion centre to cut red tape. Its economy is currently being managed according to the Tanzania Mini-Tiger Plan. Tanzania has mineral resources and a largely untapped tourism sector, which might make it a viable market for foreign investment. The stock market capitalisation of listed companies in Tanzania was valued at $588 million in 2005 by the World Bank. Zanzibar Zanzibar's economy is based primarily on the production of cloves (90% grown on the island of Pemba), the principal foreign exchange earner. Exports have suffered from the downturn in the clove market. The Government of Zanzibar has been more aggressive than its mainland counterpart in instituting economic reforms and has legalized foreign exchange bureaus on the islands. This has loosened up the economy and dramatically increased the availability of consumer commodities. Furthermore, with external funding, the government plans to make the port of Zanzibar a free port. Rehabilitation of current port facilities and plans to extend these facilities will be the precursor to the free port. The island's manufacturing sector is limited mainly to import substitution industries, such as cigarettes, shoes, and process agricultural products. In 1992, the government designated two export-producing zones and encouraged the development of offshore financial services. Zanzibar still imports much of its staple requirements, petroleum products, and manufactured articles. Literature Paul Collier: Labour and Poverty in Rural Tanzania. Ujamaa and Rural Development in the United Republic of Tanzania. Oxford University Press, New York 1991, . See also Tanzania and the World Bank List of regions of Tanzania by GDP List of companies of Tanzania Taxation in Tanzania Child labour in Tanzania Microfinance in Tanzania Poverty in Tanzania Economy of Africa United Nations Economic Commission for Africa References Notes External links Confederation of Tanzanian Industries Tanzania latest trade data on ITC Trade Map Government ministries, agencies and sites Bank of Tanzania Ministry of Finance and Economic Affairs Economic and Social Research Foundation World Bank Summary Trade Statistics Tanzania African Union member economies World Trade Organization member economies