The Impact of Global Financial Crisis

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On Brewing Industries in Tanzania

The central focus of this study is to analyze the effects of global financial crisis which started in 2008 on the sales performance of beer.

Although it started with the trouble in the financial sector in the United States it has had contagious effects to the rest of the world and negative implications on several economies around the world, including Tanzania, largely due to the globalisation.

The crisis primarily affected the developed world; during the crisis the United States economy contracted by 6% during the fourth quarter of 2008 and the first quarter of 2009 and unemployment increased to 10.2%, the highest level since 1983.

The Tanzanian economy has been affected in one way or another by the global financial crisis but the significance of the effects depends on the sector of the economy.

It is believed that weaker financial linkages with the rest of the world may have limited the impact of the systemic banking sector crisis that occurred in advanced economies on African economies.

However, the industrial sector is considered to be much affected, therefore, the study gives a clear picture on how the industrial sector was affected especially the brewing industries.

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