Abstract: This paper seeks to model the relationship between democracy and economic development in African countries, Tanzania being the case study. Most of the African countries are endowed with abundant resources, but since their independencies mainly in 1960’s they have failed to translate their wealth resources into economic wellbeing of their people especially of the rural population. By using Tanzanian development model which has two phases: phase I being the process of getting leaders and phase II being utilization of recourses, it proves the positive relationship between democracy and economic development.