As market reforms reached critical mass, Tanzania received a billion dollars of investment inflows in 1995-2000 compared to only $90 million during the preceding six years. This is a commendable performance for one of the least developed countries of the world and an economy that was centrally planned and closed to FDI (foreign direct investment) not long ago. Unexploited potential for further investment extends from mining through the services sector, to agriculture and small-scale manufacturing. The challenge now is to push FDI to new frontiers, achieving higher levels of investment inflows and increasing the scale and scope of benefits from FDI. At the same time, the continuing process of policy change means that the 1997 Investment Act needs replacing by a new, modern act reflecting current conditions inside and outside Tanzania. Other areas needing attention include: commercial and contract law; labour laws; competition law and the review and improvement of the incentives system. Updating regulations in industries such as fishing and tourism could facilitate FDI. Completing the privatization programme, especially in the area of utilities and other infrastructure. This will bring additional FDI and, if implemented properly, should improve infrastructure and reduce the cost of doing business. The review contains some other recommendations, such as encouraging new investments in infrastructure through financial instruments such as concessions and BOTs; expanding and consolidating international market access, including through regional integration within EAC and SADC; enhancing the competitiveness of human resources; and building a dynamic private enterprise sector by redirecting the focus of technology policy and institutions to the needs of enterprises. [UNCTAD website]