The purpose of this study was to examine the status of information technology development (IT) in Tanzania, to determine if Tanzania needed a national policy on information technology, and to identify concerns that such a policy might address. The research methods were a self- administered mail survey and extensive library literature research. The survey was administered to sixty men and women who constitute the "information elite" in Tanzania at three research sites; University of Dar-es-Salaam, Tanzania Commission for Science and Technology and Tanzania Library Service Board. Information technology is becoming a critical factor to the participation of African countries and Tanzania in global markets. However, the review of the literature suggests that because of limited resources computerization in these countries must be planned and must be preceded by the creation of a national policy on information technology or a computer policy. Such a policy would provide the needed guidelines for its planning, implementation and coordination. Findings from the study support these assumptions. In this study the majority of respondents indicated that such a policy was needed in Tanzania. Even though respondents indicated that a national information technology policy in Tanzania should cover a wide range of issues including education and training, funding, telecommunications, standards, and software manufacturing, but education and training and funding were considered to be the top priority concerns. Not surprising, results also show that professionals in individual institutions and international development agencies including non-governmental organizations play a crucial role in promoting and supporting IT activities in Tanzania. The data also revealed that economic reforms have also impacted the IT sector indirectly leading to more involvement of the private sector, and foreign investors who have invested in modern telecommunications systems and services, in IT hardware and software applications for domestic markets. The government has also introduced policy incentives which include sales and import tax reduction on IT hardware and software applications and institutional tax exemptions to encourage importation of IT and software applications into the country.