Tanzania Country Profile

Snapshot of the Tanzania Country Profile


Since the late 1990s, the Government of Tanzania has improved the country's investment climate significantly with assistance from international donors. Markets have been liberalised and a number of public enterprises have been privatised with participation of foreign investors, contributing to greater inflows of FDI. Tax free export processing zones (EPZs) have been established and the country's membership to the East African Community (EAC) provides for low tariff trade of some products between member countries. Nevertheless, Tanzania's regulatory environment still suffers from inefficiency, and companies investing in Tanzania may face inconsistent application of regulations and a cumbersome and corrupt bureaucracy.

Positive developments in relation to corruption and investment:

  • Tanzania has a comprehensive body of laws, regulations and oversight agencies intended to prevent, investigate and sanction corrupt practices.
  • The government has dismissed some corrupt civil servants and a few senior officials, and is strengthening some anti-corruption regulations and institutions.
  • A positive step towards circumventing the regulatory burden faced by companies investing in Tanzania has been the establishment of the Tanzanian Investment Center (TIC).

Risks of corruption:

  • Business-relevant areas in which corruption persists include government procurement, licensing, privatisation, taxation, ports, and customs clearance.
  • The municipal police, the revenue authority and officials associated with labour regulations and social security are cited as being prone to corruption.
  • The government's commitment to strengthening integrity has been seriously questioned given the extent of corruption within the country and corruption scandals involving ministers and leading members of political parties.
  • It is reported that companies with high growth rates and high profitability operating in the formal economy seem to attract the attention of corrupt government officials and are thus more vulnerable to corruption.