TanzaniaInvest.com is the n. 1 website to invest in Tanzania. With thousands of registered users it is the site to visit for the most up to date investment news, stories, reports and exclusive interviews with top executives, decision-makers and leaders within the various business sectors of Tanzania.
TanzaniaInvest.com is committed to providing its readers with well-researched information in a professional and sector-driven format that will help them to better identify investment trends within the country, anticipate the impact that these investments will have on the Tanzania economy, and predict the next big investment opportunity based on market trends, shifts and new discoveries all in a professional environment that is specific to the needs of foreign and domestic investors.
TanzaniaInvest.com covers the most vibrant sectors of the country’s economy namely agriculture, banking & finance, construction & real estate, energy & mining, industry & trade, telecoms, tourism and transport via thorough reports news, articles, interviews and profiles.
Our exclusive reports are the result of extensive on site research and interviews with top government officials and key business leaders, and present balanced and objective portraits of the most promising economic sectors of Tanzania, while highlighting the available investment and business opportunities.
Our exclusive news provide an overview of the economic and investment climate in Tanzania as well as some of the most important updates on key facts, topics and information relating to current and upcoming investment and business issues.
ABOUT TANZANIA
Tanzania is located in the eastern side of Africa. On the northern side it is bounded by Kenya and Uganda, on the western side there is Democratic Republic of the Congo and on the southern side there is Mozambique and Zambia. On the eastern side of the country there is Indian Ocean. There are 26 regions in the Tanzania. President represents the head of the country. Mainland includes 21 regions and five regions are found in Zanzibar. There are 99 districts and each district has one council. Councils serve as local governments to serve the people. Total number of councils operating in Tanzania is 114, out of which 22 belongs to the urban areas and 92 for the rural areas. Urban councils are further divided into city councils and municipal councils.
The country Tanzania discovered its name from Tanganyika and Zanzibar. These two states were united in the year 1964. Later, a new name was given to these two combined states which were named as the United Republic of Tanzania. In Tanzania, people elect the president and the other members of the National assembly directly by voting and the term of their ruling is for five years. Prime minister is appointed by the president and the prime minister of the country acts as the leader of the government in the national assembly. The president also has a power to choose ten non-elected members in the parliament and these elected members can become members of the cabinet. There are 343 members in the national assembly. Women also get 30% seats in the national assembly.
The main occupation of the people is agriculture and the economy of the country is highly dependent upon the agriculture. Most of the land in Tanzania is used for agricultural purposes. Natural resources of natural gas and minerals are found in the country. Tanzania leads in the production of gold at the third place in the world. Another important gemstone found in Tanzania is tanzanite which is the characteristic gem found here only. There are different minerals found in Tanzania. Some of the important minerals found in Tanzania are uranium, gold, coal, nickel, platinum, etc. Mineral production is less in the country due to less availability of the resources. Therefore, agriculture accounts for the overall economy of the country.
Africa’s highest mountain, Mount Kilimanjaro is situated in Tanzania and is one of the main features that attract tourists in the country. There are many beaches and national parks located in the nearby areas which make it an important tourist spot. Different lakes found in Tanzania are the Lake Victoria, Lake Malawi and Lake Tanganyika. The above tourist places have become a center of attraction and the money earned from tourism helps in the growth of the economy of the country. Tourists can get affordable accommodation in the nearby areas. Wide range of five star hotels and small guest houses are available in the country for the tourists stay. During the hot season the temperature ranges between 50 and 60 degree C and during the cold season it ranges between 10 and 20 degree C. November to February is the hottest period in Tanzania and country experiences severe cold during the months of May to August. There are two major rainfalls that occur in Tanzania.
There is uneven distribution of population in Tanzania. There are different ethnic groups found in Tanzania. Most of the people in Tanzania follow Christianity and few are the followers of the Muslim religion. People in Tanzania speak Swahili language. English is also used as an official language in Tanzania. Tribal people also speak their own language but the mother tongue of the people of Tanzania is Swahili language and they learn English to compete all over the world or to communicate with people of other countries. 73% of the total population of Tanzania is literate. Education is compulsory till the age of fifteen but children fail to get education till this age. The main cause of death during infancy is malaria. Pneumonia and diarrhea are two other causes of deaths in Tanzania. There are local and private health clinics to serve the people of Tanzania. HIV/AIDS infection is common among the adult population. Measures are being taken to prevent the transmission of HIV/AIDS infection.
Tanzania participates in the Southern African Development Community to interact the people and for the growth of the economy of the country. Tanzania receives grants from other countries for its survival. Wood and charcoal is used to meet the energy demands. But now, water is also being used to produce electricity. To provide business and investment opportunities to the people of Tanzania it is starting a program to privatize the public offices so that more people can get jobs. Various methods are adopted for the privatization of the public sectors to help in the growth of the economy of the country.
Tanzania History
After gaining independence from the British government in the ‘60s Julys Nyerere, its first president, introduced African socialism and is credited for building national union and cohesion.
In 1984 Nyerere conceded the failure of the socialist system and in 1985, Ali Hassan Mwinyi the succeeding President, turned away from socialism beginnings an economic recovery programs and paved the way for price liberalisation and the encouragement of foreign investments.
In 1992, multi-party politics were allowed and, in 1995 Benjamin Mkapa won the election becoming the Tanzania’s third president. Under Mkapa a number of reforms were instituted to deregulate the economy, increase production rates and widen the tax base.
As a result, inflation rates were lowered and annual GDP growth rate between 2000 and 2006 averaged around 6%, making Tanzania one of the best performers in sub-Saharan Africa.
In December 2005, Jakaya Mrisho Kikwete was elected as the 4th president of Tanzania for a five-year term. Under his presidency, the government continues to examine its privatization and liberalization policy, while still making major economic sectors more attractive to foreign investments.
Tanzania Society & Politics
With a current GDP of $23.7 billion Tanzania remains one of the world’s poorest economies in terms of per capita income However the country averaged 6-7% GDP growth per year during the last decade making it one of the best performers in sub-Saharan Africa.
Tanzania is also one of the most politically stable and peaceful countries in Africa today.
The Government of Tanzania is a unified republic consisting of the Union Government on the mainland and the Zanzibar Revolutionary Government on the island chain, located 30 km off of the mainland shores.
Dodoma is the official capital and the seat of Tanzania’s Union Parliament. However, Dar es Salaam, the commercial capital and the country’s main port city, remains home to government ministries, diplomatic missions and corporate headquarters.
77% of the young and fast growing population of 43 million is literate. English and Swahili are the two official languages. Christianity and Islam are the predominant religions of Tanzania.
The Government has made a long-term commitment to develop a pool of well-trained and educated specialists and accordingly has increased its education budget significantly.
Tanzania Economy & Trade
Tanzania has sustained high economic growth over the last decade driven by structural reforms, steadily increasing levels of exports, and significant financial deepening.
GDP growth has been between 5% and 7% in recent years. The economy relies most heavily on the agriculture sector accounting for half of the GDP and employing about 80% of the workforce.
Recently, the government of Tanzania has given more attention to the addition of value to agricultural products and has been supporting agribusiness.
The mineral sector has enjoyed an unprecedented growth rate in the country as a result of the initiatives by the government to reform the sector.
According to the World Bank, half of the country’s annual foreign exchange earnings come from the export of minerals, led by gold of which Tanzanian has become Africa’s 3rd largest producer behind South Africa and Ghana.
Tourism, thanks to unmatched natural attraction and rich and varied wildlife, is another major economic sector in Tanzania; with 600,000 tourists per year it accounts for approximately 12% of the GDP in 2006 and nearly 25% of the total export earnings.
Construction, communications, manufacturing, transport and the financial sector have also posted solid growth rates.
Following the recent discoveries of natural offshore Tanzania gas deposits the government of Tanzania is preparing the country’s economy for a significant increase in the country’s foreign investment inflow.
Bordering 8 African countries of which 6 land-locked, Tanzania participates in the East African Community and in the Southern African Development Community for trade and economic growth.
The main trade partners are China, India, Kenya, UAE. Main export commodities include gold, coffee, cashew nuts, manufactures, cotton.
Aiming at providing competitive fiscal regime on foreign trade, Tanzania has signed double taxation treaties with Denmark, India, Italy, Norway, Sweden, Kenya, Uganda, Zambia and Finland. Countries with which negotiations are continuing include South Africa, Republic of Korea, Zimbabwe, United Arab Emirates, Russia, Seychelles, Mauritius, Egypt, Yugoslavia and Oman.
High inflation has recently proven to be an acute challenge for Tanzania mainly due to the rising costs of food. In spite of recent restrictive measures taken by the Central Bank, because of the high demand of rice and energy cost the inflation rate remains at about 17-18%.
The country is currently embarked in its Five Year Development Plan for the period 2011/12-2015/16. This Plan is the first in a series of three Five Year Development Plans, which aim at transforming Tanzania into a middle-income country by 2025. Five core priorities have been targeted under the Plan’s strategy to unleash Tanzania’s latent growth potentials. They include:
(i) Infrastructure, and in particular large investments in energy, transport infrastructure (port, railway, roads, air transport), water and sanitation and ICT;
(ii) Agriculture, focusing on the transformation of agriculture, and high value crops including horticulture, floriculture, spices, vineyards etc.;
(iii) Industrial development specifically targeting industries that use locally produced raw materials such as textiles, fertiliser, cement, coal, iron and steel, as well as development of special economic zones, using public-private partnerships;
(iv) Human capital and skills development, with an emphasis on science, technology and innovation; and
(v) Tourism, trade and financial services.
Tanzania Legal & Investment Framework
The Constitution of Tanzania provides for legislative supremacy of Parliament and independence of the Judiciary. It also embraces the principles of rule of law, separation of powers and political pluralism. Tanzania has put in place investment incentives which provide a soft landing platform to all investors during the initial stage of the projects implementation. These incentives are both fiscal and no-fiscal and are provided under four major schemes/legislations.
- Tanzania Investment Act 1997
-Certificate of incentives
-Strategic investor status
-Import duty draw back scheme
- Export Processing Zones Act 2002
- Mining Act 1998; Petroleum Exploration and Production Act 1980
- Special Economic Zones Act 2005
Investments in Tanzania are guaranteed against nationalization and expropriation. Tanzania is a signatory of several multilateral and bilateral agreements on protection and promotion of foreign investment. Among other international agreements and membership, Tanzania is a member of Multilateral Investment Guarantee Agency (MIGA) and International Centre for Settlement of Investment Disputes (ICSID).
The pro investment attitude by Government is clearly demonstrated by the innovative investment legislation, the increasing number of foreign direct investments in the country and economic and structural reforms that have led to substantial progress in establishing a functioning market economy.
Institutional support for priority investment projects is readily available from the Tanzania Investment Centre (TIC), the one stop facilitative centre for all investors and other Government institutions.FDI net inflow in Tanzania was $433 million 2010.
A number of tax incentives are granted to both local and foreign investors as a way of encouraging investments in Tanzania provided that investors satisfy certain conditions.
These include tax incentives on import duty and on VAT on imports and exports. Tanzania has a reasonable corporate tax rates 30% and unrestricted right to transfer outside the country 100% of foreign exchange earned profits and capital.
However, Tanzania has to make further improvement in the investment climate, especially in the provision of infrastructure including a good quality road network and competitive public utilities.
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