The concept of transfer of technology is used to describe a process whereby technology developed in one country is borrowed and integrated into the homegrown technical progress of another country. Integration of the borrowed technology may take the form of adaptation, modification, assimilation and further innovation.
Tanzania has been and is still using imported technology from industrialized countries which does not allow technological capacity and capability. As a result of this, Tanzania's indigenous type of technology has been inhibited or curbed. Other problems include: Balance-of-Payments Problems, Rural-Urban dichotomy, skewed income distribution, inappropriateness of technology transfer in production and consumption. In addition, Tanzania is technologically dependent on the Industrialized countries for sources of capital, entrepreneurship, capital and consumer good manufactures.