ANNEX 4 
TANZANIA  EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-381 
 
 
-  CONTENTS 
Page 
I. ECONOMIC ENVIRONMENT A4-385 
 (1) Major features of the economy A4-385  (2) Recent economic developments A4-386 
 (3) Trade and investment performance A4-389 
 (i) Trade in goods and services A4-391  (ii) Investment A4-394 
 (iii) Outlook  A4-396 
II. TRADE AND INVESTMENT REGIMES A4-397 
 (1) G
ENERAL FRAMEWORK  A4-397 
 (2) T RADE POLICY OBJECTIVES  A4-400 
 (3) T RADE AGREEMENTS  A4-401 
 (4) I NVESTMENT FRAMEWORK  A4-401 
 (i) Mainland Tanzania A4-402 
 (ii) Zanzibar A4-403 
III. TRADE POLICIES AND PRACTICES BY MEASURE A4-405 
 (1) I NTRODUCTION  A4-405 
 (2) M EASURES DIRECTLY AFFECTING IMPORTS  A4-406 
 (i) Registration, custom procedures, and customs valuation A4-406 
 (ii) Tariffs A4-408  (iii) Other duties and charges A4-409 
 (iv) Internal taxes A4-409 
 (v) Import prohibitions, restrictions, and licensing A4-410  (vi) Contingency trade remedies A4-410 
 (vii) Standards and other technical requirements A4-411 
 (viii) Other measures A4-418 
 (3) M
EASURES DIRECTLY AFFECTING EXPORTS  A4-418 
 (i) Registration and documentation A4-418 
 (ii) Export taxes A4-418  (iii) Export prohibitions, rest rictions, and licensing A4-418 
 (iv) Export assistance, financing, and promotion A4-419 
 (v) Export processing zones and special economic zones A4-421 
 (4) M
EASURES AFFECTING PRODUCTION AND TRADE  A4-424 
 (i) Incentives A4-424 
 (ii) Government procurement A4-424  (iii) State trading, state-owned en terprises, and privatization A4-427 
 (iv) Competition policy and price controls A4-430 
 (v) Intellectual property rights A4-431 
IV. TRADE POLICIES BY SECTOR A4-435 
 (1) I
NTRODUCTION  A4-435 WT/TPR/S/271/TZA Trade Policy Review 
Page A4-382 
  
 Page 
 (2) A GRICULTURE AND RELATED ACTIVITIES  A4-435 
 (i) Main features A4-435 
 (ii) Institutional and policy framework A4-437 
 (iii) Selected products A4-440 
 (3) M INING AND ENERGY  A4-447 
 (i) Mining A4-447  (ii) Energy A4-450 
 (4) M
ANUFACTURING  A4-453 
 (5) S ERVICES  A4-455 
 (i) Overview A4-455 
 (ii) Financial services A4-456 
 (iii) Telecommunications A4-460  (iv) Transport A4-463 
 (v) Tourism A4-468 
REFERENCES   A4-471 APPENDIX TABLES  A4-477 
 
 EAC-Tanzania WT/TPR/S/271/TZA 
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 CHARTS 
Page 
I. ECONOMIC ENVIRONMENT 
I.1 Composition of merchandise trade, 2005 and 2011 A4-392 
I.2 Direction of merchandise trade, 2005 and 2011 A4-393 
TABLES 
I. ECONOMIC ENVIRONMENT 
I.1 Economic indicators, 2005-11 A4-387 
I.2 Tanzania's balance of payments, 2005-11 A4-390 
I.3 Investment, 2000/04 and 2005-10 A4-394 I.4 Stock of FDI from major source of countries, 2005-09  A4-395 
II. TRADE AND INVESTMENT REGIMES 
II.1 Selected trade-related laws, June 2012 A4-399 
II.2 Investment incentives in mainland Tanzania A4-402 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
III.1 Mainland Tanzania:  incentives under EPZ and SEZ schemes, 2012 A4-422 
III.2 Minimum investment capital requirements under ZIPPA, 2012 A4-423 
III.3 Zanzibar:  incentives under ZIPPA, 2012 A4-424 
III.4 Public procurement met hods and thresholds, 2012 A4-426 
III.5 Tanzania:  Government ownership in selected companies/institutions, 2009 A4-429 
IV. TRADE POLICIES BY SECTOR IV.1 Main features of the agriculture sector, October 2011 A4-436 
IV.2 Selected food crop production in Tanzania, 2005-10 A4-441 
IV.3 Export value of crops in Tanzania, 2005-10 A4-441 IV.4 Value of mineral exports, 2005-10  A4-448 
IV.5 Selected indicators of electrification in Tanzania, 2005-09 A4-452 
IV.6 Tanzania's GATS specific commitments, 2012 A4-455 IV.7 Minimum paid-up capital requirements for insurers, 2010-12 A4-459 
IV.8 Selected telecommunication indicators, 2005-10 A4-460 
IV.9 Telecommunication licences issued  under the Convergence Licensing  
 Framework, 2006 and 2011 A4-462 
IV.10 Movement of cargo and passengers by railway, maritime, and air transport,  
 2005-10   A4-465 IV.11 Tourism in Tanzania, 2005-10 A4-469 WT/TPR/S/271/TZA Trade Policy Review 
Page A4-384 
  
 APPENDIX TABLES 
Page 
I. ECONOMIC ENVIRONMENT 
AI.1 Structure of exports, 2005-11 A4-479 
AI.2 Structure of imports, 2005-11 A4-480 
AI.3 Destination of exports, including re-exports, 2005-11 A4-481 
AI.4 Origin of imports, 2005-11 A4-482 
II. TRADE AND INVESTMENT REGIMES 
AII.1 Tanzania's notifications to the WTO, 2006-12 A4-483 
  EAC-Tanzania WT/TPR/S/271/TZA 
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 I. ECONOMIC ENVIRONMENT 
(1) MAJOR FEATURES OF THE ECONOMY  
1. The United Republic of Tanzania (compr ising mainland Tanzania and Zanzibar1) has a land 
area of 945,000 square km, of which some 46% is ar able land.  It borders Kenya and Uganda to the 
north;  Malawi, Mozambique, and Zambia to the south;  the Democratic Republic of the Congo, 
Burundi, and Rwanda to the west;  and the Indian  Ocean to the east.  The capital is Dodoma, while 
Dar es Salaam is the commercial and business centre.   In 2010, Tanzania's fast growing population 
reached 44.8 million (1.3 million in Zanzibar), with some 74% living in rural areas.  The annual 
population growth rate was 3%, and about 44.4% of  the Tanzanians were in the 0-14 age group.2 
2. For over a decade Tanzania has pursued macroe conomic stability and structural reforms, 
which have allowed it to transform into a more  market-oriented and outward-looking economy, and 
achieve solid growth.  Nevertheless, during the review period (2005-10), the Government's fiscal 
deficit widened, and the pace of structural reform  and privatization slowed down, with the State 
maintaining a significant role in the economy.  While  GDP per capita in mainland Tanzania increased 
from US$393 to US$551 over the period, Tanzania rema ins a least developed country, with a third of 
its population living below the national poverty line (2008).3  In 2011, Tanzania ranked 152nd out of 
186 countries in the UNDP Human development Index.   Hence, reducing poverty and responding to 
the demands for public services and infrastructure of a rapidly growing po pulation, while committing 
to fiscal sustainability is currently one of  the Government's major challenges.    
3. The composition of Tanzania's GDP did not change significantly during the review period. 
Services continue to be the leading sector of the economy, accounting on average for some 48% of 
GDP (at constant prices) throughout the review years (Table I.1).  Trade, real estate, public 
administration, and tourism-related activities are the main service subsectors in terms of GDP contribution.  Tourism plays a crucial role, genera ting about 28% of the country's foreign exchange 
earnings
4, and an estimated 11% of total employment.5  Agriculture (including forestry and fishing) 
remains a key sector, providing for three quarters of rural incomes and a third of merchandise exports, 
although its share in GDP declined from 27.7% to  23.4% in real terms between 2005 and 2011.  
Manufacturing, which is dominated by agri-pro cessing, has increased its contribution to GDP (from 
8.9% to 10.4% during 2005-11), but is still underd eveloped, facing high pro duction costs and poor 
infrastructure.  The mining sector has experien ced a boom on the back of high international gold 
prices but, while it accounts for almost a third of merchandise exports, its contribution to GDP remains small (on average 2.5% of GDP over the review period).   
4. The official unemployment rate was 4.3% of tota l labour force in 2006 (latest available year).  
Agricultural activities provided the highest proportion of total employment (74.6%), followed by services (20.3%) and industry (5.0%).
6  Tanzania has a significant inform al sector, estimated at nearly 
                                                      
1 The Islands of Zanzibar (Unguja and Pemba) are situated some 30 km from mainland Tanzania in the 
Indian Ocean.  
2 National Bureau of Statistics (2011c). 
3 The proportion of the population living below the international poverty line of US$1.25 a day 
(in purchasing parity terms) was even higher in 2008 at about two thirds  (UNDP, 2011). 
4 BOT Monthly Economic Review , November 2011. Viewed at:  http://www.bot-
tz.org/Publications/MonthlyEconomicReviews/MER_%20Nov_2011.pdf [February 2012]. 
5 World Travel and Tourism Council data, in  Tanzania Review 2011/2012 . 
6 World Bank Development Indicators.  Viewed at: http://databank.worldbank.org [March 2012]. WT/TPR/S/271/TZA Trade Policy Review 
Page A4-386 
  
 60% of gross national income7, which plays a crucial role in providing employment opportunities.  
The Tanzanian authorities estimate that there are currently about 4.5 million informal sector workers 
in the country.  
5. Tanzania accepted the obligations of Article V III of the IMF Agreement in July 1996.  No 
restrictions are imposed on payments and transfers for current international transactions.  Tanzania 
maintains a floating exchange rate regime, where by official exchange rates are essentially market-
determined, with only sporadic in terventions by the Bank of Tanzania (BOT, the central bank) to 
smooth out excessive volatility.  During the review period, the national currency, the Tanzanian 
shilling (T Sh), depreciated by over 50% to reach  T Sh 1,589 per U.S. dollar by end-March 2012.8   
6. Tanzania's second National Strategy for Gr owth and Reduction of Poverty (NSGRP), 
2010/11-2014/15, was launched in January 2011.  The NSGRP provides a framework for achieving the Millennium Development Goals and Tanzania 's Development Vision 2025, focussing on 
productivity and growth, and agricultu ral and private sector development.
9   
7. Tanzania is currently implementing a three- year macroeconomic programme under the IMF's 
Policy Support Instrument (PSI), approved in J une 2010, whose main objectives are to maintain a 
strong fiscal position, low inflation, and low risk of  debt distress, while accelerating growth in line 
with the NSGRP.10  Tanzania also receives support under sev eral World Bank projects, including the 
Poverty Reduction Support Credit Programme desi gned to improve the investment climate and 
competitiveness, and to ensure macroeconomic stab ility and sound public finances.  The African 
Development Bank Group provides support under Tanzan ia's Country Strategy Paper for 2011-2015.  
Tanzania is highly dependent on foreign aid. 
(2) RECENT ECONOMIC DEVELOPMENTS  
8. The Tanzanian economy continued to perform st rongly during the period under review.  Real 
annual GDP growth averaged 6.8% during 2005-11  in mainland Tanzania, and almost 6.0% in 
Zanzibar (Table I.1).  In 2011, real GDP in mainla nd Tanzania grew by 6.4% (6.2% in Zanzibar).  
During the period under consideration, the main dr ivers of growth were private consumption and 
gross fixed capital formation, mainly public invest ment.  Exports also performed well, owing in part 
to favourable gold prices, but their contribution to GDP was smaller than the share of imports, thus 
resulting in negative net exports throughout the re view period.  Among the main economic sectors, 
communications, financial intermediation, and to urism-related services experienced the highest 
average annual growth rates during 2005-10.  The lowest average growth rates were in fisheries and agriculture; in the latter sector, slow growth was in  part due to unfavourable  climatic conditions.   
9. Tanzania managed to weather the recent global eco nomic crisis well.  In order to mitigate its 
effects, the Government implemented a supportiv e policy involving temporary tax reductions and a 
stimulus package totalling some 2% of GDP.  Although activity slowed down in some sectors, such as 
agriculture, mining, and tourism in the aftermath of  the crisis, it rebounded in the second half of 2009 
                                                      
7 Economic Commission for Africa, African Union (2012). 
8 Bank of Tanzania online informa tion.  Viewed at:  http://www.bot-
tz.org/Archive/ArchiveDirectory.asp [March 2012]. 
9 Tanzania's second NSGRP is commonly referred to  as MKUKUTA II and MKUZA II (for Zanzibar).  
It adopts a results-based approach focussing on three clusters:  raising economic growth and reducing poverty; 
improving the quality of life and social well-being; and improving governance and accountability. 
 10 IMF(2011). EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-387 
 
 
 and reached almost pre-crisis levels in 2010, re flecting in part the Government's counter-cyclical 
policies.  Given its limited exposure to internati onal markets, Tanzanian's financial sector remained 
sound throughout the crisis.      
Table I.1 
Economic indicators 2005-11  
2005 2006 2007 2008 2009 2010 2011a 
National accounts 
GDP at current market prices (T Sh billion)  15,965 17,941 20, 948 24,838 28,213  32,293 37,717 
GDP at current market prices (US$ billion) 14.2 14.3 17.0 20.8 21.4 22.9 24.2 
(% of GDP) 
Government final consumption expenditure 17.6 17.5 19.3 17.4 17.5  16.1  .. 
Private final consumption expenditure 66.3 68.0 67.9 66.5 65.5  62.6  .. 
Gross fixed capital formation 24.7 27.2 29.2 29.3 28.4  31.5  .. 
Changes in inventories 0.4 0.4 0.4 0.4 0.5  0.5  .. 
Net exports -8.9 -13.1 -16.9 -13.6 -11.9  -10.7  .. 
GDP growth rate at 2001 prices (%) 
     Mainland 7.4 6.7 7.1 7.4 6.0 7.0 6.4 
     Zanzibar 4.9 6.0 6.3 5.3 6.7 6.5 6.2 
GDP per capita (current US$) 
     Mainland 393 382 444 464 525 551 560 
     Zanzibar 227 368 414 534 557 561 .. 
Shares of GDP by economic activity at 
constant 2001 pricesb (% of GDP) 
Agriculture, hunting and forestry 26.1 25.4 24.6 24.0 23.3 22.7 22.1 
Fishing 1.6 1.6 1.6 1.5 1.5 1.4 1.3 
Industry and construction 20.2 20.5 20.9 21.2 21.4 21.6 22.0 
     Mining and quarrying 2.4 2.6 2.7 2.6 2.5 2.4 2.4 
     Manufacturing 8.9 9.0 9.2 9.4 9.5 9.6 10.4 
     Electricity, gas 2.2 2.0 2.1 2.0 2.1 2.1 2.2 
     Water supply 0.4 0.4 0.4 0.4 0.4 0.4 0.3 
     Construction 6.2 6.4 6.5 6.7 6.8 7.0 6.7 
Services 46.4 46.9 47.3 47.8 48.3 48.8 49.5 
     Trade and repairs 13.1 13.5 13.8 14.1 14.3 14.5 14.7 
     Hotels and restaurants 2.5 2.4 2.4 2.3 2.3 2.3 2.2 
     Transport 5.2 5.1 5.1 5.1 5.1 5.1 5.1 
     Communications 1.7 1.9 2.1 2.3 2.7 3.1 3.4 
     Financial intermediation 1.7 1.8 1.8 1.9 1.9 2.0 2.1 
     Real estate and business services 10.2 10.2 10.2 10.2 10.2 10.2 10.3 
     Public administration 8.0 8.0 8.0 8.0 7.8 7.8 7.8 
     Education 1.9 1.8 1.8 1.8 1.8 1.8 1.8 
     Health 1.4 1.4 1.4 1.4 1.4 1.4 1.4 
     Other social and personal services 0.7 0.7 0.7 0.7 0.6 0.6 0.6 
Gross value added before adjustments 94.3 94.3 94.4 94.4 94.5 94.5 94.9 
less FISIM -1.0 -1.1 -1.1 -1.2 -1.2 -1.2 -1.3 
Gross value added at current basic prices 93.3 93.3 93.3 93.3 93.3 93.3 93.6 
Taxes on products 6.7 6.7 6.7 6.7 6.7 6.7 6.7 
Prices and interest rates 
Inflation (CPI, % change) 5.0 7.3 7.0 10.3 12.1 5.5 12.7 
Deposit rates (average nominal interest rate)c 
     Saving deposits 2.6 2.5 2.6 2.8 2.8 2.4 2.9 
     Fixed deposits 4.4 6.6 7.7 6.7 6.8 5.9 .. 
    Table I.1 (cont'd) 
 WT/TPR/S/271/TZA Trade Policy Review 
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 2005 2006 2007 2008 2009 2010 2011a 
Lending rates (average nominal interest rate)c 
     Short-term 16.1 15.8 14.0 13.9 14.6 13.9 13.7 
     Long and Medium term 15.4 14.5 15.7 16.6 15.2 14.7 14.4 
Central government finance (% of GDP) 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11a 2011/12 
Total revenued 12.5 14.1 15.8 16.9 15.3 16.3 ..
    Tax revenue 11.5 13.0 14.5 15.9 14.5 15.2 ..
        of which:   
          Import duties 4.8 5.3 5.5 5.8 5.5 6.5 ..
             Sales/VAT and excise on local goods 2.8 3.0 3.1 3.4 3.1 3.0 ..
     Non-tax revenue 1.1 1.1 1.3 1.0 0.8 0.8 ..
Total expendituree 22.9 23.1 23.0 26.4 26.9 26.9 ..
    Recurrent expenditure 15.7 16.2 14.7 18.4 18.3 19.0 ..
    Development expenditure 7.2 6.9 8.3 8.1 8.6 7.9 ..
Grants 5.9 4.9 4.9 4.6 4.6 4.7 ..
Overall balance excluding grants -10.3 -9.0 -7.3 -9.6 -11.5 -10.6 ..
Overall balance including grants -4.4 -4.0 -2.4 -5.0 -6.9 -5.9 ..
Total debt stock 67.3 40.7 39.3 43.4 44.8 49.6 ..
     External debt stock 57.5 30.8 30.3 34.7 36.0 39.6 ..
     Domestic debt stock 9.8 9.9 9.0 8.6 8.8 10.1 ..
External debt service as % of exports 5.7 1.2 1.9 1.2 1.4 1.6 ..
Memorandum 2005 2006 2007 2008 2009 2010 2011 
Population (million) 38.8 39. 9 41.1 42.3 43.5 44.8 46.2 
Population growth 2.8 2.8 2.9 2.9 3.0 3.0 3.0 
Inward FDI stock (% of GDP) 30.3 36.2 34.3 31.1 31.6 32.4 .. 
Exchange rate (TSh/US$, period average) 1,123 1,252 1,233 1,196 1,320 1,409 1,572 
Real effective exchange rate (annual average, 
index 2000=100) f 70 66 65 69 72 68 64 
.. Not available. 
a Provisional. 
b Numbers may not always add up to 100% due to rounding. c For the period ended June. 
d Includes local government authorities (LGAs). 
e Excludes amortization a nd expenditure float. 
f An increase indicates appreciation. Fiscal year data. 
 
Source: Ministry of Finance, The Economic Survey 2010 , viewed at:  http://www.mo f.go.tz;  Bank of Tanzania, Annual 
Report 2010/2011  (ISSN 0067-3757), viewed at:  http://www.bot-tz.org;   National Bureau of Statistics, Ministry of 
Finance, Tanzania in Figures 2010 , viewed at:  http://www.nb s.go.tz;  Information prov ided by the Tanzanian 
authorities;  Bank of Tanzania, Economic Bulletin for th e quarter ending March 2012  (vol. XLIV, No. 1), viewed 
at:  http://www.bot-tz.org;  World Bank, World Development Indicators , viewed at:  
http://databank.worldbank.org/ddp/home.do;  and UNCTA D statistics online information,  viewed at:  
http://unctadstat.unctad.org/. 
10. In recent years, the thrust of monetary policy has been to control the growth of broad money 
and credit to the private sector, in order to keep in flation down, while achieving an appropriate level 
of liquidity.  However, keeping inflation subdued h as proved difficult due to high global energy prices 
and international/domestic food supp ly shocks.  The depreciation of the Tanzanian shilling has further 
exacerbated inflationary pressures.  The inflation rate (CPI) increased during most of the review 
period, except in 2007 and 2010 (Table I.1), reaching 12.7% in 2011, mainly on account of high food 
prices resulting from drought in the Eastern African region.  In order to forestall inflationary 
pressures, in November 2011 the BOT tightened its  monetary policy stance, raising the minimum 
reserve requirements and increasing the bank policy rate to 12%.  Also, the BOT has relied increasingly on foreign exchange sales for sterilization of excess liquidity. EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-389 
 
 
 11. After years of fiscal discipline, and improvements in revenue collection resulting from tax 
reforms, since 2005 there has been a significant in crease in Government expenditure (mainly driven 
by current spending), while revenue collection has re mained practically stagnant.  As a result, the 
Central Government's fiscal deficit has increa sed, reaching 10.6% of GDP (excluding grants) in 
2010/11 (Table I.1).  The expansionary fiscal pol icy adopted in response to the recent global 
economic crisis has partially contributed to widening  the fiscal deficit.  Within the framework of the 
IMF's PSI programme, Tanzania has agreed to pur sue financial consolida tion through rationalizing 
and prioritizing spending , broadening the tax base, limiting tax exemptions11, and improving revenue 
collection methods.  During the review period, impor t duties were, on average, equivalent to 5.5% of 
GDP (Table I.1).   
12. A widening fiscal deficit has led to greater re liance on foreign grants, and an increase in non-
concessional borrowing.  Potential shortfalls in d onor aid could further strain the Government's 
financial position. 
13. During the review period, Tanzania's total pub lic debt stock continue d to increase, totalling 
US$12.6 billion at the end of November 2011 (US$9.1 billion in 2005), of which external debt 
accounted for 78.9% and domestic debt for 21.1%.  Ou t of the external debt stock, 80.5% was public 
debt (Central Government and parastatals), and the rest was private.  In terms of creditor category, 51.5% of external debt was multilateral and 17.4%  bilateral;  the remainder was split between 
commercial debt (22.4%) and export credits (8.7%).
12  As a proportion of GDP, the external debt 
stock almost halved between 2005 and 2007, but picked  up in the following years to represent 39.6% 
of GDP in 2010 (Table I.1).  External debt service as a proportion of exports declined during to 1.6% 
in 2010.  While the current external debt is consider ed to be within sustainable levels, a growing fiscal 
deficit and increased reliance on non-concessional bo rrowing could compromise sustainability in the 
medium-term.13   
(3) TRADE AND INVESTMENT PERFORMANCE  
14. During most of the review period, Tanzania's  overall balance of payments was in surplus 
(except in 2005 and 2011) (Table I.2).  However,  the current account deficit increased steadily 
between 2005 and 2008 to 12.4% of GDP.14  It declined in the two following years, but rose again to 
more than 16% of GDP.  The current account deficit resulted mainly from the traditional deficit in the 
merchandise trade balance, which in  turn widened as a result of recurrent increases in the prices of 
imported food and fuels during the review period.  On the other hand, the services trade balance 
showed a positive trend during the review period, but it was not enough to compensate for the deficit 
in merchandise trade.  The current account deficit was offset by the expansion in the capital and financial accounts.   
15. Gross official reserves increased steadily during the years under review, amounting to 
US$3,761 million at the end of 2011, sufficient to cover about 3.8 months of projected imports of 
goods and services (Table I.2). 
 
 
                                                      
11 The cost of tax exemptions is estimate d at 3.5 % of GDP a year.  IMF (2011).  
12 BOT Monthly Economic Review , December 2011.  Viewed at:  http://www.bot-
tz.org/Publications/MonthlyEconomicReviews/MER_Dec_2011.pdf [March 2012].  
13 IMF(2011). 
14 To help address a deteriorating current account balance, in 2009 Tanzan ia received IMF support 
under the Exogenous Shocks Facility.  A total of US$328 million was disbursed in the 2009/10 fiscal year. WT/TPR/S/271/TZA Trade Policy Review 
Page A4-390 
  
 Table I.2 
Tanzania's balance of payments, 2005-11 
(US$ million) 
  2005 2006 2007 2008 2009 2010 2011a 
Current account -845 -1,174 -1,715  -2,564 -1,797 -1,924 -3,951 
  Balance on goods and services -1,233 -1,668 -2,172 -3,084 -2,391 -2,648 -4,533 
     Balance on goods -1,295 -1,947 -2,634 -3,434 -2,536 -2,841 -4,730 
         Goods: exports f.o.b. b 1,703 1,918 2,227 3,579 3,298 4,324 5,098 
            Traditional 355 267 320 507 480 572 669 
            Non-traditional 1,325 1,476 1,705 2,605 2,380 3,188 3,764 
                of which gold 655 786 788 1,108 1,230 1,517 2,224 
            Unrecorded trade 23 174 202 467 439 564 665 
         Goods: imports f.o.b. -2,998 -3,864 -4,861 -7,012 -5,834 -7,166 -9,828 
     Balance on services 62 279 462 350 146 193 197 
         Services: credit 1,269 1,528 1,876 1,999 1,855 2,046 2,363 
            Transportation 223 344 331 365 334 446 507 
            Travel 824 950 1,199 1,289 1,160 1,255 1,457 
            Other 223 234 346 345 360 346 399 
         Services: debit -1,207 -1,249 -1,414 -1,649 -1,709 -1,852 -2,165 
            Transportation -320 -418 -485 -699 -605 -723 -973 
            Travel -554 -535 -595 -721 -766 -830 -899 
            Other -334 -297 -333 -229 -338 -299 -293 
  Balance on income -107 -95 -282 -314 -298 -327 -360 
  Balance on current transfers 496 589 739 834 891 1,051 941 
Capital account 393 5,184 912 537 447 536 638 
Financial account, excl. reserves and related items 1,146 -4,082 852 2,459 1,890 2,407 2,799 
Net errors and omissions -923 533 356 -284 -173 -677 355 
Overall balance -229 461 405 148 366 343 -159 
Reserves and related Items 229 -461 -405 -148 -366 -343 159 
     Reserve assets 254 -127 -411 -147 -677 -369 163 
     Use of Fund credit and loans -51 -334 7 0 311 26 -4 
     Exceptional financing 25 0 0 0 0 0 0 
Memorandum items 
Gross official reserves 2,050 2,137 2,724 2,873 3,553 3,921 3,761 
Months of imports 5.8 5.0 5.2 4.0 5.7 5.2 3.8 
Balance of goods / GDP (%) -9.2 -13.6 -15.6 -16.6 -11.7 -12.3 -19.5 
Value of exported goods / GDP (%) 12.0 13.4 13.2 17.3 15.3 18.7 21.0 
Value of imported goods / GDP (%) 21.2 27.0 28.9 33.9 27.0 30.9 40.6 
Trade (exports and imports of goods and services) / GDP (%) 50.8 59.8 61.6 68.8 58.8 66.4 80.3 
Balance of services / GDP (%) 0.4 1.9 2.7 1.7 0.7 0.8 0.8 
Current account / GDP (%) -6.0 -8.2 -10.2 -12.4 -8.3 -8.3 -16.3 
Balance of current transfers / GDP (%) 3.5 4.1 4.4 4.0 4.1 4.5 3.9 
Reserve assets / GDP (%) 1.8 -0.9 -2.4 -0.7 -3.1 -1.6 0.7 
a Provisional. 
b Annual data on goods export include adjust ment for unrecorded cross-border trade. 
Source: Bank of Tanzania . Viewed at: http://www.bot-tz.org/P ublications/balanceofPayments.htm. EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-391 
 
 
 (i) Trade in goods and services 
16. Tanzania's trade (exports and imports) of goods  and services increased to reach 80.3% of 
GDP in 2011 (up from 50.8 in 2005), reflecting the increasing importance of trade for the economy.   In 2010, Tanzania ranked 90
th amongst world merchandise exporters (considering the EU as a single 
entity and excluding intra-EU trade), and 75th amongst importers.  As regards trade in commercial 
services, Tanzania ranked 65th as an exporter and 77th as an importer.15  
17. According to balance-of-payments figures, be tween 2005 and 2011, the value of Tanzanian 
exports of goods almost tripled, to US$5.09 billi on in 2011.  This was due mainly to an annual 
average increase of 19% in non-traditional exports (T able I.2).  During the same period, the value of 
merchandise imports grew by an average 21.9% pe r year, amounting to US$9.8 billion in 2011.   
18. Tanzania's export structure became more di versified during the review period.  The 
predominant role in foreign exchange earnings shifted from traditional agricultural commodities (e.g. 
coffee, tobacco, tea, etc.) to non-traditional exports , such as minerals (mostly gold), manufacturing, 
and non-traditional agricultural products (floricultu re and horticulture products, and fish).  The 
contribution of traditional export products in to tal merchandise exports dropped from 21% to 13%, 
whereas the share of non-traditional exports was 73.8% in 2011.16   
19. UN Comtrade figures also show that the share of agricultural exports in total merchandise 
exports fell by almost half between 2005 and 2011 (T able AI.1 and Chart I.1).  On the other hand, 
exports of gold and ores (together with concentrat es of precious metals) grew significantly during the 
period, making up 47.7% of merchandise exports  in 2011 (39% in 2005).  Benefiting from high 
international prices, gold exports have boomed in  recent years and now account for 36.3% of goods 
exports, making Tanzania the fourth largest gold e xporter in Africa.  Manufactured products (mostly 
fertilizers, paper products, and textiles) increased  their share in merchandise exports, from 11% to 
16% between 2005 and 2011, and are destined mostly for the EAC common market.     
20. The composition of imports also changed during the review period, as the weight of the oil 
bill in total import value became greater.  While  manufactures continued to be the main import 
category, their share in total imports decreased to 56% in 2011 (Table AI.2 and Chart I.1). Machinery 
and transport equipment remained the principa l import items, followed by chemical products 
(pharmaceuticals, plastics and fertilizers, some of which are re-exported to neighbouring countries).  
The share of mining in total imports is influenced by  the fluctuation of intern ational fuel prices:  it 
increased from 23.2% in 2005 to 33% in 2011.  The in crease in 2011 reflects both a rise in world oil 
prices and in the volume imported, which is pa rtly associated with increased demand for thermal 
power generation.  Agricultural products (mostly  food) represented 10.7% of total merchandise 
imports in 2011 (the same as in 2005).    
21. Tanzania's export markets also changed duri ng the review period, partly reflecting the 
patterns of gold trade.  Africa consolidated its position as Tanzania's main export market, absorbing 
36% of total exports in 2011 (Table AI.3 and Chart I. 2);  South Africa received half of this share, 
consisting mostly of non-monetary gold.  Expor ts to the EAC members, mostly manufactured 
products, increased by an annual average of 16.7%  between 2005 and 2011, but their share in total 
exports decreased slightly, to below 9%.  Within the EAC, Kenya is Tanzania's main export market, 
followed by Rwanda.  The elimination of non-tariff  barriers in intra-EAC trade could contribute to 
further increases in exports to the EAC market.  In  Europe, Tanzanian exports  have shifted from the 
                                                      
15 WTO (2011). 
16 Unrecorded export earnings made up the re maining 13.2% of total exports in 2011.  
 WT/TPR/S/271/TZA Trade Policy Review 
Page A4-392 
  
 EU to Switzerland (mainly on account of gold sales); th e latter's share in total exports rose from 8.7% 
in 2005 to 19.4% in 2011, while the EU's share declined from 26% to 12%.  In Asia, China is 
Tanzania's main export destination, absorbing 14% of total exports (principally metal ores), followed 
by Japan (7.5%).   
Chart I.1
Composition of merchandise trade, 2005 and 2011
2005 2011
(a)    Exports, including re-exports (f.o.b.) 
Other mining
3.5Manufactures
11.2
Other mining
11.9Agricultural raw 
material
3.6Ores and 
concentrates of 
precious metals
11.4Machinery and 
transport 
equipment  4.0Other semi-
manufactures 
3.8Other 
manufactures 
8.2Gold 
36.3
Total:   US$1.7 billion Total:  US$4.7 billion
(b)    Imports (c.i.f.)
Chemicals
15.4Manufactures
66.0Electrical
machines
8.2
Non-electrical 
machinery    
11.4Other manfactures
7.2
Other mining
0.9Fuels
22.3Automotive 
products
8.7Iron and steel
5.0Other transport 
equipment
2.1
Non-electrical
machinery 
12.4Automotive 
products
7.2Electrical
machines
6.2 Iron and steel 4.2
Other  
0.1Other semi-manuf.   
7.1
Other transport 
equip.  3.1
Chemicals
11.6Manufactures
56.3
Total:   US$3.2 billion Total:   US$11.2 billion Per cent
Manufactures
16.0Food
20.5Ores and 
concentrates of 
precious metals
6.1
Other  0.1Mining  23.3
Food
36.6Other  0.3
Agriculture 
24.1
Source :  UNSD, Comtrade database (SITC Rev.3).Mining
33.0Other semi-manuf.
8.0Mining  9.6
Agriculture  46.2
Agriculture
10.7Agriculture
10.7
Mining
23.2Gold 
33.0
Other  0.1
Other 
manufactures 
4.6
Other mining
0.8Fuels
32.1Agricultural raw 
material
9.6Machinery and 
transport 
equipment  1.9Other semi-
manufactures 
3.7Other 
manufactures 
5.5
 
 EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-393 
 
 
 Chart I.2
Direction of merchandise  trade, 2005 and 2011
2005 2011
(a)    Exports, including re-exports (f.o.b.)
Asia  
20.2America
1.3
South Africa
18.1Other Africa
13.3Middle East 
2.2Japan
7.5
Other Europe
0.1
South Africa
18.1Other Africa
13.3Middle East 
2.2India
4.4Other 
Asia
2.4
Total:   US$1.7 billion Total:  US$4.7 billion
(b)    Imports (c.i.f.)
Japan 6.4EU(27)
19.3
Europe  
20.5
Middle 
East 24.8Other Middle 
East 2.8China 6.9
Kenya 5.4South Africa
12.4
Bahrain
15.7Other 
Europe
0.4
CIS 1.5
Other Africa 
2.2EU(27)
14.0
Europe
25.7Asia
36.6America 5.1
India 14.0Japan 4.4
Africa 
14.7
South Africa
8.8
Other Africa  
2.9Middle 
East 16.7
U.A.E. 11.1Other Middle 
East 3.1
Bahrain 2.4Switzerland
9.9
CIS 1.2
Total:   US$3.2 billion Total:   US$11.2 billionPer cent
Kenya 3.0America
3.5
Switzerland
8.7
Other Asia  
8.8Kenya 4.7
Source :  UNSD, Comtrade database (SITC Rev.3).Other Europe
1.8EU(27)
12.1
Asia
27.6Switzerland
0.8EU(27)
26.4
Switzerland
19.4
Africa 36.1China
14.3
India 5.9
U.A.E. 6.3South Africa
17.6
Africa 
20.0Other   
0.2Other 
0.3
Africa 36.1
Other Asia 
8.4
China 9.4America 5.7Kenya 5.6Europe
35.4Middle East 4.5Europe
31.6Asia   
28.6
Other Africa
12.9
Other Europe
0.2China 
5.9Japan
4.3India
4.7Other 
Asia
5.3
 WT/TPR/S/271/TZA Trade Policy Review 
Page A4-394 
  
 22. During 2005-11, Asia maintained its position as th e main exporting region to Tanzania, with a 
share in total imports averaging 35% throughout the period (Table AI.4 and Chart I.2).  India more 
than doubled its share in total imports (to 14% in 2011), becoming Tanzania's main single source 
(mostly petroleum, pharmaceuticals, and iron and st eel).  The United Arab Emirates supplied 11% of 
Tanzanian imports (mainly oil) in 2011;  and China supplied 9.4% (mainly road vehicles, 
telecommunications, and electrical equipment).  Eu rope remains the second most important exporting 
region to Tanzania.  However, the EU's share in total imports has decreased since 2005, whereas that 
of Switzerland has risen sharply.  On the African  continent, South Africa and Kenya are Tanzania's 
main suppliers, but their respectiv e shares in total imports declined during the review period.  The 
EAC as a whole accounted for only 3.4% of Tanzanian imports in 2011, down from 5.6% in 2005.  
23. Between 2005 and 2011, the balance of trad e in services was positive and receipts increased 
by 80% owing to strong perform ance in exports of transport, tourism and other business services 
(Table I.2).  Services receipts ro se to US$2.36 billion in 2011, with travel and transportation services 
accounting for 83%.  The rise in transportation receipt s was associated with an increase in the volume 
of transit goods to and from neighbouring countries, and improvements in cargo clearing at Dar es 
Salaam port.  The increase in travel earnings was the result of a rise in the number of international 
visitors, as well as in the average length of stay an d the average expenditure per person per night.  In 
2011, services payments rose by almost 17% over the pr evious year to US$ 2.16 billion, reflecting the 
rise in payments of international freight charges (c onsistent with the increase in imports of goods) and 
travel.    
(ii) Investment 
24. During the review period, Tanzania continued to  receive significant inflows of foreign direct 
investment (FDI), albeit with a m odest contraction in 2009 attributable  to the dampening effects of the 
global financial crisis.  The mining sector (particularly gold) has attracted the largest part of FDI, 
although manufacturing has recently received increased  FDI inflows.  Other economic activities (e.g. 
finance, transport, and communications) and commodities (iron ore, gas, coal, and uranium) are 
increasingly attracting foreign investors' interest.  
25. According to UNCTAD statistics, FDI inflow s into Tanzania increased from an annual 
average of US$355 million in 2000-04 to US$627 million during 2005-10 (Table I.3).  In 2010, 
Tanzania's FDI inward stock represented 32% of GD P, above the average of East African countries 
(24%), but slightly below the average for Africa as a whole (33%).17  As a percentage of gross fixed 
capital formation, FDI inflows declined during 200 5-10, reflecting the increased participation of 
national investment in capital formation.  
Table I.3 
Investment, 2000/04 and 2005-10  
(US$ million) 
  2000-04a 2005 2006 2007 2008 2009 2010 
FDI inflows 355 494 597 647 679 645 700 
FDI inflows (% of gross fixed capital formation) 17.8 13.9 15.0 12.9 11.0 10.4 10.6 
FDI inward stock 3,575 4,390 5,342 5,942 6,621 7,266 7,966 
FDI inward stock (% of GDP) 30.9 30.3 36.2 34.3 31.1 31.6 32.4 
a Simple average of 2000-04. 
Source:  UNCTAD statistics online information (access to  database in April 2012).  Viewed at:  
 http://unctadstat.unctad.org/. 
                                                      
17 UNCTAD (2011). EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-395 
 
 
 26. According to Tanzania's official figures, Ca nada became the main source of FDI into 
Tanzania in 2009 (latest year available), with 36.1% of total FDI inflows. In the same year, Kenya's 
share in total FDI inflows dropped by 50% (Table I.4).   
27. During 2005-08, mainland Tanzania accounted, on average, for 95.6% of total FDI stock, and 
Zanzibar for the remaining 4.4%.18  The proportion was practically the same in terms of FDI flows.  
The mining sector accounted for 27% of FDI stoc k in 2008, followed by  manufacturing (23%), 
wholesale and retail trade (15.3%), finance and in surance (13.1%), transport and communications 
(8.4%), utilities (6.8%), construction (3.8%), and agriculture (2.3%).19  Rigidities in the land tenure 
system partially explain the low level of invest ment in agriculture, which decreased from 3.1% in 
2005. 
Table I.4 
Stock of FDI from major source of countries, 2005-09  
(in percentage) 
  2005 2006 2007 2008 2009 
Canada 15.6 18.9 17.2 17.3 36.1 
South Africa 20.0 21.9 22.0 22.3 23.4 
UK 15.6 15.2 15.3 13.4 9.5 
Mauritius 4.9 4.0 4.2 3.4 5.0 
U.A.E. 1.4 1.7 2.6 3.6 3.1 
USA 4.7 3.9 3.7 3.5 2.4 
Kenya 3.6 4.1 4.7 5.1 2.3 
Switzerland 1.4 3.2 2.9 2.7 1.5 
Norway 1.4 2.0 2.4 2.9 1.2 
Kuwait 0.2 2.2 3.2 3.5 0.7 
Sub-total 68.9 77.1 78.2 77.7 85.2 
Total  100.0 100.0 100.0 100.0 100.0 
Source:  BOT (2009), Tanzania Investment Report 2009 , Dar es Salaam, and information provided by the authorities. 
28. In 2010, Tanzania ranked 59th out of 141 economies in UNCTAD's Inward FDI Performance 
Index, compared with 83rd in 2008.  It ranked 115th in UNCTAD's Inward FDI Potential Index in 2009 
(118th in 2008).20 
29. The fact that Tanzania managed to attract increasing FDI flows during the review period 
reflects not only investors' interest in the country 's economic potential and its  largely untapped natural 
resources, but also gradual improvements in Tanzania 's investment climate.  For instance, under the 
Government's Business Environment Strengthening  programme (BEST), several measures have been 
taken to reduce administrative and regulatory  burdens on businesses and improve government and 
judicial services to the private sector.21  In addition, a Roadmap for Improving the Business Climate 
was adopted in 2010, with short-term actions to support private sector-led growth.  Strategies to 
promote investment in key economic sectors through fiscal and other incentives have also been 
pursued (Chapters II and III).  Improvements in Ta nzania's investment environment, such as the 
                                                      
18 BOT (2009b). 
19 BOT (2009b). 
20 UNCTAD's Inward FDI Performan ce Index ranks host countries by the amount of FDI they receive 
relative to the size of their economy, while the Inward FDI Potential Index ranks host countries by the amount of FDI they receive relative to their potential, based on 12 economic and policy variables (UNCTAD, 2011). 
21 The measures include the enactment of new legislation pertaining to business registration, property 
rights and labour laws. WT/TPR/S/271/TZA Trade Policy Review 
Page A4-396 
  
 reduction in the number in tax procedures and busin ess start-up requirements, have been recognized 
by international bodies.22   
30. Nevertheless a number of issues need to be addressed to increase the country's attractiveness 
to foreign investment and fully realize FDI opportu nities.  These include:  improving infrastructure 
(mostly transport and ports), enhancing domestic competitiveness and labour skills, promoting private 
sector participation in the economy (including in utilities), and furthering EAC integration and 
harmonization of regional investment rules.  The ha rmonization of the foreign investment regimes of 
mainland Tanzania and Zanzibar would also help simplify the ov erall investment framework and 
attract more FDI. 
(iii) Outlook 
31. Economic growth is expected to  be robust in 2012 and beyond, supported by improvements in 
energy supply, prospects of increased FDI, and in frastructure developments.  The BOT forecasts real 
GDP to grow by 6.8% in 2012 and by 7.0% in 2013.23  The construction, mining, and services sectors 
(telecommunications and transport) will be the main  drivers of economic growth, although production 
is expected to increase across all activities s upported by normalized hydropower generation 
conditions.  Consistent with a decline in global  inflation, and supported by improvements in food 
supply (both domestically and regionally) and proj ected stability in global oil prices and in the 
Tanzanian shilling exchange rate, inflation is expect ed to subside to single-digit levels by mid 2013.24  
At the time of writing this report, the public deficit was expected to be reduced to about 6% of GDP in 
FY 2011/12, as a result of improved tax revenue coll ection and savings in recurrent and investment 
expenditure.  According to the IMF, the aut horities are committed to pursuing further fiscal 
consolidation to achieve an overall budge t deficit of 5.5% of GDP in 2012/13.25   
32. Tanzania's current account deficit (including transf ers) is projected to widen to above 10% of 
GDP in 2011/12 and 2012/13, mainly on account of a deterioration of the merchandise trade deficit, 
resulting, in turn, from increased imports of fuel  and capital goods, as infrastructure is scaled up.26  
The surplus in the services account is expected to be  maintained, driven by increases in tourism and 
transport receipts, although freight  expenses should also increase in tandem with the surge in the 
import bill.  FDI into Tanzania is expected to grow , with the mining sector attracting large inflows, in 
gold mines as well as other commodities, such as iron ore, coal, gas, and uranium. 
33. Current changes in the global economy offer Tanzania the opportunity to diversify its 
economy and export base, especially by boosting re gional trade to offset the fall in demand in 
traditional export markets.  Removing non-tariff barriers to trade and fostering harmonization of trade 
regulations within the EAC should help to increase regional trade.  Other challenges facing Tanzania's 
economy in the short- to medium-term are achie ving significant progress in poverty reduction, and 
raising enough resources to respond to the gr owing demand for public services, including much-
needed improvements in infrastructure, while k eeping a sound fiscal position and inflation under 
control. 
                                                      
22 See, for example, UNCTAD on line information. Viewed at: 
http://www.unctad.org/en/pages/new sarchive.aspx?ReferencePageId=61 19&Sitemap_x0020_Taxonomy=Invest
ment Policy Reviews (IPR)&Product_x0020_Taxonomy=News [April 2012]. 
23 Bank of Tanzania (2012a). 
24 Bank of Tanzania (2012b). 
25 IMF, Press Release 12/76.  Press Statement by  the IMF Mission to Tanzania, 13 March 2012.  
Viewed at:  http://www.imf.org/external/ np/sec/pr/2012/pr1276.htm [April 2012]. EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-397 
 
 
 II. TRADE AND INVESTMENT REGIMES 
(1) GENERAL FRAMEWORK27 
34. The United Republic of Tanzania was form ed by a union of Tanganyika (now mainland 
Tanzania) and Zanzibar on 26 April 1964.28 It is a unitary Republic based on multiparty parliamentary 
democracy.  The Tanzanian Government has author ity over all Union matters in the Republic and 
over all subjects concerning mainland Tanzania, while the Revolutionary Govern ment of Zanzibar has 
authority in Zanzibar over all non-Union matters, including investment, government procurement, 
privatization, competition, intell ectual property, and sectoral strategies (e.g. agriculture, tourism, 
communications, transport, finance and land).  Defe nce, home and foreign affairs, and foreign trade 
policy fall within the purview of the Union Govern ment.  However, Zanzibar has its own framework 
for domestic trade and export promotion strategies. 
35. Article 4 of the Constitution of the United Re public of Tanzania, 1977, provides for three 
organs of Government: Executive, Judiciary and Parliament.  The Executive is headed by the 
President of the United Republic who is also the H ead of State, the Head of Government, and the 
Commander-in-Chief of the Armed Forces.  It consists of the President, the Vice-President, the Prime 
Minister, Cabinet Ministers and the President of Zanz ibar.  The latter is the Head of the Executive for 
Zanzibar, Head of the Revolutionary Government of Zanzibar; and the Chairman of the Zanzibar 
Revolutionary Council.  Presidents are elected for a period of five years and may only serve for two terms.  
36. Tanzania's Judiciary is headed by the Chief Ju stice, who is appointed by the President, and 
works with the Registrar of the Court of Appeal as the Chief Executive Officer.  The Principal Judge, 
assisted by the Registrar of the High Court, is in charge of the Administration of the High Court and 
all its subordinate courts.  The Judiciary has the following organs: the Court of Appeal of the United 
Republic of Tanzania, the High Courts for Mainla nd Tanzania and Zanzibar, the Judicial Service 
Commission for Mainland Tanzania, magistrates cour ts and primary courts.  The Judicial Service 
Commission for Mainland Tanzania consists of the Ch ief Justice of the Court of Appeal of Tanzania 
(Chairman); the Justice of the Court of Appeal of  Tanzania; the Principal Judge of the High Court; 
and two members appointed by the President. 
37. The judicial system of Zanzibar is distinct and separate from that of mainland Tanzania.  The 
only exception to this is that Zanzibar shares th e Court of Appeal of the United Republic with 
mainland Tanzania.  All cases tried in Zanzibar , except those involving constitutional issues and 
Islamic law, may be appealed to the Court of A ppeal.  Article 114 of the Constitution of Tanzania 
expressly reserves the continuance of the High Court of  Zanzibar institutions with their jurisdiction.  
Similarly, the Attorney General’s Chambers of Za nzibar fall outside the pur view of Union matters.  
They are a department of the Revolutionary Gove rnment of Zanzibar.  The Attorney General’s 
Chambers are part of the portfolio of the Minister of State in the Chief Minister’s Office.  The Court 
system in Zanzibar has a High Court, Kadhis courts, and the magistrates courts. 
                                                                                                                                                                     
26 Economist Intelligence Unit (2011). 
27 Based mainly on the Constitution of Tanzania.  Viewed at:  
http://nec.go.tz/publications/constitution.pdf.  
28 Tanganyika became independent on 9 December 1961, and a Republic in 1962. Zanzibar became 
independent on 10 December 1963, and the People's Repub lic of Zanzibar was establis hed on 12 January 1964.  
Viewed at: www.tanzania.go.tz/government on 17 November 2011. WT/TPR/S/271/TZA Trade Policy Review 
Page A4-398 
  
 38. Parliament, which holds legislative authority,  consists of the President and the National 
Assembly. The former exer cises authority vested in him by th e Constitution to assent to Bills enacted 
and proposed to him by the latter.  Presidential ass ent is a prerequisite to the legislative process.  
Parliament operates through the National Assembly, which, aside from making law, has the authority 
to oversee and advise the Government and all its organs, in the discharge of their respective 
responsibilities.   
39. The National Assembly consists of: members elected directly to represent constituencies; 
members elected by the House of Representatives  from among its members; the Attorney General; 
members nominated by the President; and women members (being not less than 15% of the members 
of all other categories on the basis of proportional representation among those parties in the 
Parliament).29   
40. The Government executes its functions through ministries led by Cabinet Ministers.  Each 
ministry is charged with a sector portfolio a nd formulates policy in its area of responsibility.30  The 
Ministry of Industry, Trade and Marketing (MITM) c ontinues to have the leading role in formulating, 
implementing, and coordinating Tan zania's trade-related policies.  MITM consults with relevant 
ministries and other institutions in trade policy formul ation and/or implementation.  The private sector 
also inputs the trade formulation process notably th rough trade associations such as the Confederation 
of Tanzanian Industries, and Tanzanian Cham ber of Commerce, Industry and Agriculture. 
41. Tanzania's National Public Private Partners hip (PPP) Policy of November 2009 aims to 
contribute to national poverty-reduction objectives.  Supportive legislation is in the Public Private 
Partnership Act No. 18 of 2010.  It, inter alia , provides an institutional framework for the 
implementation of agreements between public and private sector entities; sets rules, guidelines and 
procedures governing public procur ement and development and impl ementation of public-private 
partnerships.  The PPP implementing Regulations  are in Supplement No. 17 of 3 June 2011. 
42. The Tanzanian legal system is based on British common law.31 In general, policies are 
formulated and implemented by means of laws.  The legislative process calls for Bills to be 
introduced by the Executive.  Comm ittees with jurisdiction review proposed legislation prior to its 
tabling.  Legislation goes through three readings in Parliament. Once a Bill is passed, Presidential 
assent is required for enactment.  The President may withhold assent, but if Parliament resubmits the Bill for Presidential assent after a six-month waiting pe riod, the President must either grant assent or 
dissolve Parliament and call for new elections.  When  assent is given, legislation is published in the 
Official Gazette  and implemented by the relevant minister ial authorities.  Zanzibar's own House of 
Representatives may make laws for Zanzibar without the approval of the Union Government, in its 
areas of responsibility.
32  
                                                      
 29 Article 66 of the Constitution. 
 30 The Cabinet of the United Republic comprises th e Executive, Union ministers, and the Attorney 
General.  It is the principal organ for advising the Pres ident regarding all matters concerning the exercise of his 
powers.  The President presides over Cabinet meetings.  In  his absence, the Vice-Presid ent takes over this role.  
In the event that both are absent, the Prime Minister pr esides.  Each ministry has a sector portfolio through 
Presidential instruments. 
 31 The legal system in Tanzania evolved largely from British common law as a result of British rule 
over Tanganyika from 1919 until Independence in 1961.  The legal system of Zanzibar has evolved from both 
British common law and Islamic law. 
 32 See Article 64 (2), Constitution of Tanzania. EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-399 
 
 
 43. The bulk of Tanzania's trade legislation has not undergone fundamental changes, but some 
laws have been updated since its last Review.  Tanzan ia's laws on international trade are contained in 
a variety of statutes (Table II.1).  Treaties/intern ational agreements, including the WTO Agreements, 
do not have the force of law, and need to be impl emented through the national legislative process.  In 
case of inconsistency between national law and treati es/international agreements, the former prevails. 
The Constitution is the supreme law in Tanzania; it is followed by principal laws (which include 
domesticated international laws and conven tions); and subsidiary  laws/regulations.33  
Table II.1 
Selected trade-related laws, June 2012  
Area Law 
Customs EAC Protocol, 2005 
 EAC Customs Management Act, 2004 
 Customs Tariff Act, 1976 
 Excise Tariff Ordinance, Cap 332 
 Finance Act, 1999 
Services EAC Common Market Protocol, 2010 
Licensing of businesses Business Activities Registration Act, 2007 
 Companies Ordinance, Cap 212 
Taxation Value Added Tax Act, 1997 
Import/Export control Import Control Ordinance 
 Export Control Act, Cap 293 
 Foreign Exchange Act, 1992 
 Anti-dumping and Counterva iling Measures Act, 2004 
Technical Barriers to Trade Standards Act, 2009 
Sanitary and phytosanitary measures  Food, Drugs and Cosmetics Act, 2003 
 Animal Disease Act, 2003 
 Veterinary Act, 2003 
 Plant Protection Act, 1997 
Investment Mainland Tanzania Investment Act, 1997 
 Export Processing Zones Act, 2002 (as amended in 2006 and 2011) 
 Zanzibar Investment Promotion and Protection Act, 2004 
 Zanzibar Free Economic Zones Acts, 1992 (amended in April 1997) 
Mining Mining Act, 2010  
Petroleum  Petroleum Act, 2008 
Government procurement Pub lic Procurement Act, 2011 
Competition EAC Competition Act, 2006 
 Fair Competition Act, 2003 
Intellectual property rights Main land Tanzania Patents Act, 1987 
 Zanzibar Industrial Property Act, 2008 
 Mainland Tanzania Trade and Service Marks Act, 1986 
 Mainland Tanzania Copyright Act, 1989 
 Zanzibar Copyright Act, 2003 
Financial services Banking and Financial Institutions Act, 2006  
 Insurance Act, 2009 
Telecommunications and postal services Tanzania Communications Act, 1993 
 Tanzania Broadcasting Services Act, 1993 
 Telecommunication Incorporation Act, 1993 
 Tanzania Communications Regulations Authority Act, 2003 
 Universal Communications Services Access Act, 2006 
 Electronic and Postal Communications Act, 2010 
 Table II.1 (cont'd) 
 
                                                      
33 Information provided by Tanzanian authorities. WT/TPR/S/271/TZA Trade Policy Review 
Page A4-400 
  
 Area Law 
Transport Transport License Act, 1973 
 Surface and Marine Transport Regulatory Act, 2001 
 Railways Act, 2002 
 Ports Act, 2004 
 Merchant Shipping Act, 2002 
 Civil Aviation Act, 2006 
Agriculture Fertilisers Act, 2009 
 Agricultural products (Control of Movement) Act, 1996 
 Cashew nut Industry Act, 2009 
 Cereals and other produce Act, 2009 
 Meat Industry Act, 2006 
 Hides, Skins and Leather Trade Act, 2008 
 Animal welfare Act, 2008 
 Livestock Identification, Regi stration and Traceability Act, 2010  
 Fisheries Act, 2003 
 Deep sea fishing Authority Act, 2007 
Energy Rural Energy Act, 2005 
 Electricity Act, 2008 
Others Public Private Partnership Act, 2010 
 Tanzania Trade Development Authority Act, 2009 
Source : WTO Secretariat, based on information provided by the Tanzanian authorities.  
(2) TRADE POLICY OBJECTIVES  
44. Tanzania's Vision 2025 seeks to achieve high qua lity livelihood, peace, stability and unity, 
good governance, a well-educated and learning society;  and a strong, competitive, diversified, and 
semi-industrialized economy, with a substantial in dustrial sector comparable to a typical middle-
income country.  This is to be achieved through ma croeconomic stability, with low inflation and basic 
macroeconomic balances;  a growth rate of 8% per annum or more;  and an adequate level of physical 
infrastructure needed to cope with the requirements of  the Vision in all sectors and for Tanzania to be 
an active, dynamic and competitive player in regional and world markets.34    
45. Tanzania's National Trade Policy (NTP) was la unched in February 2003 and is aimed at 
developing a competitive (open) economy  and export-led growth.  To this  end, the NTP is to facilitate 
Tanzania's smooth integration into the multilateral trading system and roll back its gradual descent 
towards marginalization.35  The Tanzania Trade Development Authority (TanTrade) was established 
by the Tanzania Trade Development Authority Act No. 4 of 2009.  It is mandated to, inter alia , 
implement the National Trade Policy, the Nati onal Export Development Strategy, the Trade 
Integration Strategy, the Agricultura l Marketing Policy and other sectoral policies; all of which aim at 
developing and promoting Tanzania ’s internal and external trade.36 
46. One of the main objectives under Tanzania's Sustainable Industrial Development Policy 
(SIDP) for 1996-2020 is the streamlining of mech anisms for export development strategy by:  
improving infrastructure; strengthe ning institutional reform; deepen ing the macroeconomic and legal 
framework;  and enhancing competitiveness in areas where Tanzania has comparative advantages by, 
inter alia , addressing supply-side constraints.  Othe r key objectives include improved transit and 
                                                      
 34 See The Tanzania Development Vision 2025.  View ed at:  http://www.tanzania.go.tz/vision.htm.  On 
10 November 2011. 
 35 Ministry of Industry and Trade (2003). 
 36 TanTrade online information.  Viewed a t:  http://www.tantrade.or.tz/docs.php?.page=1_1 EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-401 
 
 
 cross-border trade, importation management, internal marketing and distribution, fair competition law 
and business licensing and related institutional frameworks.37 
(3) TRADE AGREEMENTS  
47. Tanzania is an active Member of the WTO.  This is evidenced in the DDA negotiations as 
well as in the Organization's regular work.  Tanzania submitted 45 notifications to the TBT 
Committee during 2009-10 (Table AII.1).  Tanzania aligns itself with positions taken by the LDC, 
African, and ACP groups.  It has coordinated the LD C group twice since its last Review, has been its 
focal point for the services negotiations in the past , and is currently the LDC focal point on Trade 
Facilitation negotiations.   
48. Tanzania is a founding member of the EAC an d is undertaking trade liberalization in this 
context.  As an LDC, it is a beneficiary of th e EU's Everything-but-Arms (EBA) initiative, the U.S. 
AGOA, and the GSP schemes of Australia; Canada; Japan, and New Zealand.  Tanzania is also 
engaged in the Southern African Development Co mmunity (SADC) and participates in negotiations 
for the EAC-COMESA-SADC Tripartite FTA. In a ddition, Tanzania has participated in the 
Agreement on the Global System of Trade Prefer ences among Developing Countries (GSTP) since 19 
April 1989.  It participates in the U.S-EAC Trad e and Investment Framew ork Agreement and is 
engaged in negotiations on the EAC-EU  Economic Partnership Agreement.  
(4) INVESTMENT FRAMEWORK  
49. Tanzania has concluded bilateral treaties for th e promotion and protection of foreign direct 
investment with Denmark; Egypt; Finland; German y; Italy; Republic of Korea; the Netherlands; 
Sweden; Switzerland; and the United Kingdom.38  It has double taxation agreements with Canada; 
Denmark;  Finland;  India;  Italy;  Norway;  South Africa;  Sweden;  and Zambia.39 
50. Commercial disputes between the Government a nd investors may be settled amicably through 
negotiations or submitted to arbitra tion, based on the Arbitration Laws of Tanzania for investors or 
the Rules of procedure for arbitration of the Inte rnational Centre for the Settlement of Investment 
Disputes (ICSID).  They may also be settled within  the framework of any bilateral or multilateral 
agreement on investment protection agreed to by Tanzania and the investor's country of origin.40 
51. Investment (local and foreign) is consider ed a non-Union matter and therefore mainland 
Tanzania and Zanzibar retain different invest ment programmes.  However, both governments 
maintain restrictions on foreign investment in barbershops, hairdressing, beauty salons, and retail 
shops.41  In addition, Zanzibar maintains investment restrictions on standard restaurants and tour 
operation (ground handling).  Land is  owned by the Government.  However, it may be leased for up to 
99 years, subject to approval by relevant governme nt authorities.  In Zanzibar, casino and gambling 
businesses are restricted, to both local and foreign investors. 
                                                      
 37 Ministry of Industry and Trade (1996).  
 38 TIC online information.  Viewed  at:  http://www.tic.co.tz/.   
 39 TIC online information.  Viewed  at:  http://www.tic.co.tz/.   
 40 Other laws relevant to investment issues include the Law of Contract Act (R.E Cap 345); the 
Companies Act, 2002 (Act No. 12 0f 2002);  Investment Guarantee: Section 22 of th e Tanzania Investment Act, 
No. 26 of 1997 (this specifies that business or enterprises shall be neither nationalized nor expropriated by the Government);  the Patent Act, 1987;  Trade and Servi ces Marks Act, 1987; Business Activities Registration Act, 
2007;  Companies Ordinance, Cap.212;  and Arbitration Act, R.L Cap. 15.  
 
41 TIC online information.  Viewed at:  http://www.tic.co.tz/.  WT/TPR/S/271/TZA Trade Policy Review 
Page A4-402 
  
 (i) Mainland Tanzania 
52. The institutional and legislative framework gove rning investment in mainland Tanzania has 
remained basically unchanged since its last Review .  It is based on the Tanzania Investment Act, 
No. 26 of 1997, which established the Tanzanian Inv estment Centre (TIC) as the agency responsible 
for administering the Act, and as a one-stop centre to  deal with foreign and local investment.  An 
entity needs to be legally establis hed and registered as a Tanzanian business with the Registrar of 
Companies and the Tanzania Revenue Authority befo re the TIC can issue certificates of investment 
incentives.42  
53. To set up a business in Tanzania, the following documents are required:  certificate of 
incorporation; memorandum and articles of asso ciation; business licence; income tax clearance 
certificate; residence permit; lease agreement or title deed; business plan or feasibility study; and 
certificate of incentives for projects approved by the TIC.43  According to the World Bank, starting a 
business in Tanzania involves 12 procedures and ta kes up to 29 days, which places Tanzania 123rd out 
of 183 countries.44   
54. The threshold for TIC involvement (an incentiv e eligibility criterion) is US$300,000 for 
foreign investment and US$100,000 for local investors.45  The TIC currently charges fees for 
certificates of incentives (US$750); application forms (US$100); and other services, such as work permits (10% of what is charged by the relevant  department). With a few exceptions (see above), 
100% foreign ownership is permitted in most sectors.  
55. Special duty and tax incentives are granted to lo cal and foreign companies involved in "lead" 
and "priority" activities (Table II.2).  Lead activities include: agriculture, mining, petroleum, tourism, 
and economic infrastructure (e.g. road, railway, por t facilities, and telecommunication).  Priority 
activities include: manufacturing, natural resources (e .g. fishing and forestry), aviation, financial 
services, broadcasting, human resource de velopment, and export-oriented projects.
46 
56. The Investment Act also allows for enhanced in centives for investments th at are considered to 
be strategic to the economy.  These additional incentives are granted at the discretion of the 
responsible Minister.  The Act does not define strategic investment. 
Table II.2 
Investment incentives in mainland Tanzania 
Sector Duty (%) VAT Other (%) 
Lead sectors    
  Agriculture    
    All capital goods zero Deferred  
    Agricultural machiner y/equipment zero Exempt  
    Fertilizers and pesticides zero Exempt  
    Farms implements and other inputs zero Exempt  
    One non-utility administrative vehicle zero Deferred  
    Corporate tax   30 
  Table II.2 (cont'd) 
                                                      
 42 Part III, Section 17 (1-8), Tanzania Investment Act. 
 43 TIC online information.  Viewed at:  http://www.tic.co.tz/.  
 44 World Bank (2012b).   
 45 The TIC has no legal authority to deny investment, but no benefits are granted under the Investment 
Act unless the investment is above the threshold. 
 46 TIC online information.  Viewed at:  http://www.tic.co.tz/.  EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-403 
 
 
 Sector Duty (%) VAT Other (%) 
    Capital allowance   100 
    Withholding tax on interest   10 
    Withholding tax on dividends   10 
    Losses carried forward indefinitely    
  Mining, petroleum, and gas    
    All capital goods zero Relieved  
    Spare parts zero Relieved  
    Explosive and other supplies zero Relieved  
    Fuel and oils zero Relieved  
    Corporate tax   30 
    Capital allowance   100 
    Resident and non-resident wit hholding tax on technical services   5 
  Economic infrastructure    
    All capital goods zero Deferred  
    Deemed capital goods zero Deferred  
    Vehicles (utility) zero Deferred  
    Corporate tax   30 
    Withholding tax on dividends   10 
    Withholding tax on interest   10 
    Losses carried forward indefinitely    
  Tourism    
    All capital goods zero Deferred  
    Hotel facilities, e.g. carpet s, furniture, etc. zero Deferred  
    Vehicles for tour operators zero Deferred  
    Corporate tax   30 
    Capital allowance   50 
    Withholding tax on dividends   10 
    Withholding tax on interest   10 
    Losses carried forward indefinitely    
Priority sectors    
Capital goods zero Deferred  
Raw materials zero Deferred  
Utility vehicles zero Deferred  
Replacement industrial parts for the rehab ilitation of privatized enterprises zero   
Corporate tax   30 
Capital allowance   100 
Withholding tax on dividends   10 
Withholding tax on interest zero   
Losses carried forward indefinitely    
Source:  Tanzania Investment Centre online information.   Viewed at:  http://www.tic.co.tz/. 
(ii) Zanzibar 
57. Zanzibar's investment regime is governed by the Zanzibar Investment Promotion and 
Protection Act of 2004.47  In its Article 3, it sets up the Zanzibar Investment Promotion Authority 
(ZIPA) as the focal point for promotion a nd facilitation of investments in Zanzibar.48  ZIPA acts as a 
one-stop facilitator for investors and is responsible for administration, control, and management of 
Zanzibar's Freeport and free economic zones. 
58. Although 100% foreign ownership is permitted in most sectors, Zanzibar maintains some 
restrictions in certain sectors (see above).  Article  11 (2) of the Zanzibar  Investment Promotion and 
                                                      
 47 ZIPA online information.  Viewed at:  http ://www.zanzibarinvest.org/ZIPA_act_2004.pdf.  
 48 ZIPA online information.   Viewed at:  http:// www.zanzibarinvest.org/.  WT/TPR/S/271/TZA Trade Policy Review 
Page A4-404 
  
 Protection Act, 2004, grants the Minister discretion to specify by notice in the Gazette , any small-
scale business or category thereof that may only be engaged in by Zanzibaris.   
59. Zanzibar has officially desi gnated free economic zones at Fumba in the island of Unguja, 
Micheweni on the island of Pemba, and the Amaan industrial park.49  For authorization to operate in 
the free zone, a company must carry out an indust rial or processing activity and must export no less 
than 80% of its products.50  Two sites have been officially declared as free port zones (Maruhubi Free 
Port and Airport zone).  The President has the right  to declare other free zones when the need arises. 
60. Other incentives include the possibility for funds transfer (Article 21, Zanzibar Investment 
Promotion and Protection Act of 2004), protection ag ainst compulsory acquisition (Article 22), and 
provisions for dispute settlement under, inter alia , UNCITRAL or ICSID processes. 
 
                                                      
 49 Operating under the Zanzibar Free Economic Zones Act No. 17 of 1992. 
 50 ZIPA online information.   Viewed at:  http:// www.zanzibarinvest.org/.  EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-405 
 
 
 III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) I NTRODUCTION  
61. Tanzania applies the EAC Common External Ta riff (CET).  In the WTO, Tanzania bound 
13.5% of its tariffs lines, with ceiling rates of  120% for both agricultural and non-agricultural 
products;  it also bound other duties and charges on prod ucts covered by its tariff bindings at zero.    
As of 1 July 2011, Tanzania replaced the des tination inspection fee on imports with a customs 
processing fee and reduced its rate from 1.2% to 0.6%  of the f.o.b. value.  Local goods and imports 
are subject to a VAT of 18%; excise duty rates on a few products vary according to local-content levels.  Tanzania applies im port prohibitions and restricti ons on certain goods under the EAC 
Customs Management Act.  
62. During the review period, Tanzania continue d to implement its customs modernization 
strategy.  Customs reforms include rolling ou t the ASYCUDA++ system;  setting up the Customs 
Service Centre to process all import declar ations; strengthening the risk-management and 
post-clearing audit systems;  introducing a compliant (i.e. authorized) traders system;  and improving infrastructure.  As a result, there have been im provements in cargo clearance times and revenue 
collection.  Tanzania has implemented a destina tion inspection scheme since 2004.  Nevertheless, in 
order to prevent imports of subs tandard products, the Tanzania Bureau of Standards introduced a pre-
export verification programme to assess standards conformity in early 2012. 
63. In 2004, Tanzania enacted national legisla tion on anti-dumping and countervailing measures, 
but it does not yet have a law on safeguards.  The legislation is being reviewed with the aim of 
expanding its scope to Zanzibar.  As  of February 2012, Tanzania ha d never applied contingency trade 
remedies.  A new Standards Act was passed in 2009 to  revamp the role and powers of the Tanzania 
Bureau of Standards.  In 2011, Zanzibar enacted  a law providing for the establishment of its own 
standards body, which is yet to be set up.  Tan zanian standards generally follow international or 
regional norms.  By end 2011, Tanzania had 1,485 standards (510 compulsory and 975 voluntary).  
Since July 2009, Tanzania has made 44 notifications of technical regulations to the WTO.  Tanzania's 
sanitary and phytosanitary (SPS) system did not un dergo major changes during the review period.  
Improving enforcement capacity, agency coordination,  and information and notification mechanisms 
are some of the key challenges in the SPS area.  No SPS notifications have been made to the WTO. 
64. Tanzania maintains several export promotion programmes, including the Duty Drawback 
Scheme and Manufacturing under Bond Scheme.  In  addition, both mainland Tanzania and Zanzibar 
operate their own export-processing zones (EPZs) a nd special economic/free zones, each providing 
different incentives.  Minimum export requirements apply under the EPZs schemes.  Export finance is 
offered by some public and private banks and th ere is an Export Credit Guarantee Scheme, but 
exporters continue to report problems to access cred it.  To promote local processing, export taxes are 
applied on raw cashew nuts and raw hides and skins,  while raw fish exports are banned.     
65. Government procurement, privatization, co mpetition policy and intellectual property rights 
are non-Union matters, and so mainland Tanzania and Zanzibar have diffe rent legislation and 
institutions in these areas.  In December 2011, a new Public Procurement Act 2011 was passed in mainland Tanzania, covering all types of procurement and public institutions; a preferential margin of 
15% applies to local goods, and a margin of up to  10% to domestic contractors and service providers.  
In Zanzibar, the Public Procuremen t Act of 2005 remains in force.  During the review period, the pace 
of privatization slowed down, as the divestiture of  public utilities proved difficult; some 34 enterprises 
are still earmarked for privatization.  No major ch anges have been made to the Fair Competition Act WT/TPR/S/271/TZA Trade Policy Review 
Page A4-406 
  
 of 2003 (Zanzibar has no competition legislation).  Ma inland Tanzania is currently developing an IPR 
policy and revising its IPRs laws in order to cons olidate them and make them fully TRIPs compliant; 
the new law will cover all IPRs, including geographical  indications, which are not currently regulated.  
Zanzibar enacted a new Industrial Property Act in  2008, covering the protection of all IPRs, except 
copyrights which are regulated by the Zanzibar Copyright Act of 2003.  Combating counterfeit and 
piracy remains a major challenge in Tanzania.  
(2) M EASURES DIRECTLY AFFECTING IMPORTS  
(i) Registration, custom procedures, and customs valuation 
66. Under the Business Activities Registration Act of 2007, all companies wishing to engage in 
trading in Tanzania, irrespective of their legal form , must register with the Business Registration and 
Licensing Agency (BRELA) of the Ministry of Industry and Trade (MIT).51  Upon clearance of the 
company name by BRELA, a local company receives a certificate of incorporation for a fee ranging 
from T Sh 126,000 to T Sh 400,000, depending on the amount of capital; and a foreign company receives a certificate of compliance costing US$1,200.  A company must then register with the Tanzania Revenue Authority (TRA) and other ins titutions as necessary, and obtain a business licence.  
BRELA's registration system is being computerized a nd will be linked to the TRA in the near future.  
67. In January 2005, Tanzania adopted the EAC Cu stoms Management Act.  During the review 
period, the TRA continued to implement its cust oms modernization strategy, aimed at enhancing 
revenue collection and trade facilitation.  Among th e most important reforms undertaken were the 
nationwide rollout of the ASYCUDA++ system
52, which enables electronic submission of customs 
declarations53;  the establishment of the Customs Servi ce Centre in Dar es Salaam, where import 
declarations from all border stations are processed, thus providing uniform treatment of all valuation 
and classification issues; the strengthening of the customs risk-management and post-clearing audit systems, both set up in 2004;  the introduction of a compliant (authorized) traders system; and the improvement of physical infrastructure, in cluding the purchase of container scanners.  
68. In the EAC context, Tanzania started impl ementing the Revenue Authorities Digital Data 
Exchange System (RADDEX) in 2009, an electr onic information exchange system between EAC 
states' customs administrations.  RADDEX is expect ed to improve monitoring of transit goods, foster 
trade facilitation, and reduce clearance times.  The sy stem has been in use with Uganda and Kenya 
since 2010.  Also, feasibility studies for one-stop join t border posts (OSBPs) have been carried out for 
several border stations (e.g. Mutukula, Sirari, Ho lili, and Horohoro), and their construction is in 
progress, with the support of multilateral and bilate ral funding.  Tanzania conducted time release 
studies (TRS) in 2005 and 2009, which have served as a basis for monitori ng customs clearance 
performance.    
69. Since 2004, Tanzania has implemented a destina tion inspection system (DIS).  Upon expiry 
of a seven-year contract with TISCAN (a subsidiary  of Cotecna), in January 2011, the TRA took over 
the administration of the DIS.  Nevertheless, im ports of used motor vehicles remain subject to 
pre-shipment inspection to ensure  compliance with technical regulations.  As of February 2012, the 
                                                      
51 Zanzibar has its own company registrar under the Ministry of Justice and Constitutional Affairs.  
52 By mid 2011, ASYC UDA++ had been rolled out to 24 border  stations, accounting for 98% of trade 
transactions.  Progress is under way to roll out the syst em to import declarations lodged through Zanzibar.  
53 ASYCUDA++ enables agents and importers to  lodge customs declarations and supporting 
documents electronically through their own direct trade in put (DTI) facilities, or via the DTI bureau at customs 
offices. EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-407 
 
 
 Tanzania Bureau of Standards has implemente d a programme for pre-export verification of 
conformity to standards (PVoC); compliance with the PVoC is necessary for products subject to 
technical regulations and intende d to be exported to Tanzania (section (2) (vii) below).   
70. An import declaration form is required for all imports.  A customs processing fee of 0.6% of 
the f.o.b. value of imports is due on all imported goods, except those that are non-commercial in 
nature, have no commercial value,  are being re-imported, or are imported by a few specified 
institutions/companies.54  Consignments with a value below US$500 are not subject to the customs 
processing fee.  Goods in transit are exempt from cu stoms duties, taxes and fees, but require a security 
bond or cash deposit, the amount of which is dete rmined on the basis of the duties and taxes 
applicable on the importation of such goods.  Import duties and fees may be paid electronically, 
through banks, or directly at customs offices.  ASYCUDA++ was linked to commercial banks in 
January 2011 to facilitate  and speed up payments.  
71. Under the ASYCUDA++ computerized risk-management system, imports are channelled 
according to their risk level into a green line (low risk) for automatic customs clearance; a yellow line 
(medium risk) for document inspection; and a red line (high risk) for do cumentary and physical 
inspection.  According to the TRA, 40% of im ports pass through the green line, 20% through the 
yellow line, and 40% through the red line (of which 20% are subject to scanning).   
72. A Compliant Traders Scheme was introduced in July 2008.  Currently, some 54 traders are 
operating under the scheme, but further efforts are de emed necessary to ensure that compliant traders 
effectively benefit from direct release of their cons ignments.  Implementation of a pilot programme is 
under way for authorized economic operators at the EAC level.  The TRA is in the process of 
procuring a new web-based customs clearance syst em that will address shortfalls of ASYCUDA++.  
Other projects include the development of a single- window system at Dar es Salaam Port and the 
commissioning of an electronic tracking system for transit cargo.   
73. Customs reforms, in particular through the Customs Modernization Strategy 2009/10-
2012/13, have had a positive impact both on trad e facilitation and revenue collection.  Cargo 
clearance times have improved compared with the results of the 2009 time release study:  in June 
2011, the clearance time from arrival of cargo to removal was 12 days at the Dar es Salaam Port 
(down from the 15 days), and 5 days at Julius Nyer ere International Airport (down from 7 days).  
However, the cargo clearance time across land-border stations increased from 2 to 3 days.  Revenue collection also shows positive trends;  revenue co llected in mainland Tanzania increased from T Sh 
883,620 million in 2005/06 to T Sh 2,336,366 million in  2010/11, while revenue co llected in Zanzibar 
jumped from T Sh 14,504 million to T Sh 48,684 million over the same period.
55   Duties and taxes on 
imports accounted for almost 45% of total (net) tax revenue collected by the TRA in mainland Tanzania in 2010/11.  Of the total revenue coll ected from imports, duties accounted for 21%, VAT for 
39%, excise taxes for 26%, and other charges for 14%.  In Zanzibar, duties and taxes on imports 
                                                      
54 The exemption covers the Bank of Tanzania, the Ministry of Livestock Development, Air Tanzania, 
AG&P Gas Ltd.,  BGI Company (gas), Kilwa Energy Co mpany Ltd., SUMA JKT (a military production unit), 
NGOs and religious organizations, embassies and UN agencies, and donor funded projects.  Imports of raw materials for production purposes are also ex empt from the customs processing fee.   
55 TRA, The Implementation of Customs Modernisation: 2004-June 2011  (document provided by the 
TRA). WT/TPR/S/271/TZA Trade Policy Review 
Page A4-408 
  
 (including VAT and excise taxes) represent some  60% of total revenue collected by the TRA 
(Zanzibar).56 
74. Tanzania has used the valuation methods in  the WTO Customs Valuation Agreement since 
1 January 2001.  Nevertheless, the Used Motor Vehicle Valuation System (UMVVS), using a 
depreciation method, was introduced in June 2011 to address the complexities involved in 
determining the customs value of used cars.  Ac cording to the TRA, the UMVVS has helped reduce 
motor vehicles clearance times by eliminating several  processes, and has increased compliance.  A 
new customs valuation database has been developed as a risk-management tool and has been in use 
since 1 May 2010;  its stated objectives are to apply fair, equitable, and transparent custom values by 
using real-time and analysed data; eliminate doub le standards in valuation of imported/exported 
goods; facilitate customs risk management; and en hance trade compliance.  The authorities have 
indicated that the database contains only referen ce prices, and that they do not maintain minimum 
prices.  
75. Traders may appeal against customs decisions  first to the Commissioner for Customs and 
Excise within the TRA;  if not satisfied, they may refer the matter to the Tax Revenue Appeal Board, 
and subsequently to the Tax Revenue Appeal Tribunal, and finally the Court of Appeal.  
(ii) Tariffs 
(a) MFN applied tariff structure 
76. Since January 2005, Tanzania has applied the EAC Common External Tariff (CET) 
(Common Report, Chapter III(1)(iv)). 
(b) MFN tariff bindings 
77. In the WTO, Tanzania bound 13.5% of its tariff lines, comprising all tariff lines for 
agricultural products (WTO definition) and 0.1% of tariff lines for non-agricultural products.  The 
final bound rates are 120% for both agricultural and non-agricultural goods.  This ceiling binding does 
not ensure predictability of the tariff regime. 
(c) Tariff preferences 
78. In accordance with the Protocol on the Es tablishment of the EAC Customs Union 
(Article 10), all EAC members eliminated all tariffs on intra-EAC trade in 2010 (Common Report 
Chapter III(1)(iv)).   
79. Tanzania also grants tariff preferences on a r eciprocal basis to members of the Southern 
African Development Community (SADC), of which it is a member.57  As of 1 January 2011, 
Tanzania grants duty-free treatment to goods im ported from all SADC countries, which qualify for 
SADC origin criteria and are accompanied by a certif icate of origin from a competent institution.  
                                                      
56 TRA online information, "National Tax Statistics".  Viewed at:  
http://www.tra.go.tz/index.php?option=com_content& task=view&id=93&Itemid=70 [February 2012]. 
57 SADC members are Angola, Botswana, Democratic Republic of the Congo, Lesotho, Malawi, 
Mauritius, Mozambique, Namibia, Swaziland, Tanzania , Zambia, Zimbabwe, South Africa, and Seychelles. EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-409 
 
 
 (d) Tariff and tax exemptions and concessions 
80. National exemptions from the CET may be granted by the EAC Council of Ministers on a 
case-by-case basis.  In June 2011, Tanzania was allowe d to delay application of the CET for one year 
and apply lower import duties for:  road tractors fo r semi-trailers (0%), passenger buses (10%), trucks 
with carrying capacity of 5 to 20 tonnes (10%), a nd trucks with carrying capacity of over 20 tonnes 
(0%) (Common Report, Table III.3).58  The Tanzanian authorities indicated that the rationale for 
requesting these exemptions was to help reduce trans port costs and traffic congestion.  Tanzania was 
also allowed to apply a 0% import duty on hard wh eat to enable production of confectionary products 
at affordable prices.  
81. Under the EAC Duty Remission Scheme, the Council of Ministers may authorize individual 
EAC states to grant approved national manufacturers the right to import free of duty specified raw materials and industrial inputs used in the manufacture of goods.  The Legal Notice approving duty remission applies for 12 months and may be rene wed every year.  In June 2011, the Council of 
Ministers approved a customs duty remissi on for Tanzania for palm stearin-RBD 
(HS code 1511.90.40), which is used in th e manufacture of soap and other products.
59  Goods 
currently under duty remission are:  paper for pr inting books; unassembled bicycles and motorcycles; 
tread for re-treading; industrial sugar;  spare part s for assembly of transformers and switch gears;  
spare parts for assembly of refrigerators and freezer s; and spare parts for assembly of trailers.  
82. Tariff and tax exemptions are also granted in  the framework of export schemes, i.e. duty 
drawback, manufacturing under bond, and export processing zones and special economic zones 
schemes (section (3)(iv) and (v)). 
(iii) Other duties and charges 
83. In the WTO, Tanzania bound "other duties and ch arges" at zero, except for silk and woven 
fabrics (84%), and dummies and other figures (56%).  Nevertheless, imports in to Tanzania are subject 
to an ad valorem  customs processing fee, with some exceptions (section (i) above).  As of 1 July 
2011, the rate of the customs proces sing fee was reduced from 1.2% to 0.6% of the f.o.b. value.  A 
customs processing fee of US$10 per import declaration has been removed.  
(iv) Internal taxes 
84. Imports and domestic products are subject to internal taxes, including VAT and excise taxes.  
VAT is collected on all taxable goods and services sold or imported into Tanzania.60  In July 2009, the 
standard VAT rate was reduced to 18% (from 20%).  VAT is applied on the sale price of domestically 
produced goods and services, and on the c.i.f. value of imports (inclusive of customs and excise 
duties).  Companies with an annual turnover of less than T Sh 40 million are exempt from VAT registration. 
85. Exports of goods and services as well as certain  charges related to international trade are 
zero-rated for VAT.
61  Also, a number of goods and services are exempted from VAT.62  Capital 
                                                      
58 The exemptions were published in the EAC Gazette , June 2011. 
59 Legal Notice No. EAC/29/2011, EAC Gazette , Vol. AT 1-No. 08, Arusha, 30 June 2011. 
60 In Zanzibar, VAT is collected by the Zanzibar Reve nue Board; the rate is 18%, as in the mainland. 
61 International trade charges that are VAT zero-rated include supply of food and beverages for 
consumption or duty-free sale on aircraft or ships on jour neys to destinations outsid e Tanzania; transport or any 
ancillary transport service or loading, unloading, shor e handling, storage, warehousing, and handling supplies in WT/TPR/S/271/TZA Trade Policy Review 
Page A4-410 
  
 goods for investment are eligible for VAT defermen t.  In fiscal year 2010/11, revenue collected from 
VAT totalled T Sh 1,703.9 billion in mainland Tanzania, of which 53% came from imports;  and in 
Zanzibar VAT on imports amounted to T Sh 18,498 million.63 
86. Excise duties are levied on certain domestic and imported consumer goods at specific or ad 
valorem  rates.  The base for the ad valorem  rate on imports is the c.i.f.  value plus the import duty.  Ad 
valorem  rates apply to disposable plastic bags (50% ), motor cars (5% or 10% depending on cylinder), 
over 10-year old motor vehicles (20%), satellite a nd cable television broadcasting (7%), mobile phone 
airtime (10%), and "luxury goods", such as cigars an d cosmetics (30%).  Specific rates are charged on 
petroleum products64, cigarettes, beer, wine, spirits, soft dri nks, and bottled water.  Excise duty rates 
are up to three times higher for cigarettes, beer, and wine with less than 75%  domestic content.  The 
authorities have indicated that the rationale behind th is measure is to encourage investment and local 
processing in the respective industries.  Fiscal revenue from excise duties amounted to T Sh 968 
billion in 2010/11 in mainland Tanzania, of whic h 63.4% came from imported goods;  in Zanzibar, 
excise duties collected on imports amounted to T Sh 6,102.7 million.65 
(v) Import prohibitions, restrictions, and licensing 
87. Tanzania maintains import prohibitions unde r the Second Schedule of the EAC Customs 
Management Act (Common Report, Chapter III(1)(vii)),  which also contains a list of restricted 
imports.  The importation of restri cted products into Tanzania requi res permits from the appropriate 
government departments or institutions.  For example,  imports of firearms a nd ammunitions require a 
permit from the Ministry of Public Safety and S ecurity; import permits for medicines and medical 
equipment are issued by the Ministry of Health a nd Social Welfare; plants and live animals require 
import permits from the Plant Health Service and the Directorate of Veterinary Services, respectively; 
while permits for certain food products are issued  by the Tanzania Food and Drugs Authority.  
Commodity boards issue permits for the importatio n of a number of crops and other agricultural 
produce.  For example, imports of suga r require a permit from the Sugar Board.66   
(vi) Contingency trade remedies 
88. The EAC Customs Union Protocol provides the legal basis for contingency measures at the 
regional level and for the establishment of an  EAC Committee on Trade Remedies (Common Report, 
                                                                                                                                                                     
connection with goods in transit through the United Re public of Tanzania (URT) whether such services are 
supplied directly or through an agent to a person who is not resident of the URT; services (handling, parking, pilotage, salvage, and towage) of any foreign ship or  aircraft while in mainland Tanzania; and agricultural 
produce intended for export by cooperative unions and comm unity-based societies registered with the TRA.  
62 Goods and services exempted from VAT include food crops and livestock supplies (unprocessed); 
pesticides and fertilizers; health supplies and ho spital equipment; veterinary supplies; educational 
services/equipment; books and newspapers; public transport services; housing and land; finance and insurance 
services; water, except bottled or canned; funeral services; petroleum products; agricultural implements; tourism services; postal supplies; fishing gear; aircraft; comput ers, printers and accessories ; locally manufactured yarn; 
games of chance; and the supply of packing materials to registered milk  processors or manufacturers.  
63 TRA online inforamtion, "National Tax Statistics".  Viewed at: 
http://www.tra.go.tz/index.php?option=com_content& task=view&id=93&Itemid=70 [February 2012]. 
64 In addition, a fuel levy (Road toll) is charged on petrol and diesel at a rate of T Sh 200/litre.  
65 TRA online information, "National Tax Statistics".  Viewed at: 
http://www.tra.go.tz/index.php?option=com_content& task=view&id=93&Itemid=70 [February 2012]. 
66 The Sugar Industry Act (No. 26 of 2001) and Sugar Regulations, Government Notice No. 173 
(2005). EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-411 
 
 
 Chapter III(1)(vi)).  Nevertheless, Tanzania h as passed national legislation on anti-dumping and 
countervailing measures, although it does not yet have legislation on safeguards. 
89. The Anti-dumping and Countervailing Measures Act (Act No. 14), enacted in 2004, applies 
only to mainland Tanzania, but is being reviewed wi th the aim of expanding its scope to Zanzibar.  
Under the Act, anti-dumping duties may be imposed on any dumped import when it causes or 
threatens to cause material injury  to Tanzanian industry, and when there is a link between dumping 
and injury.  A product is deemed to have been dumped if its export price to Tanzania is less than the 
normal value of the good in the country of origin.  A subsidy is defined as a financial contribution, or 
income, or price support by a public body that lead s to market distortion.  A countervailing duty may 
be applied to offset any subsidy granted in the country of origin or export upon the manufacture, 
export, or transport of goods that are impor ted into Tanzania and that cause injury.   
90. A provisional duty may be imposed where a prelim inary investigation shows the existence of 
dumping or subsidy, and there is sufficient evidence of injury.  However, provisional measures must 
not be applied sooner than 60 days from the date  of initiation of the investigation, and their 
application must not exceed six months.67  Definitive anti-dumping and countervailing duties must not 
be kept in force longer than necessary to counteract  the dumping or subsidy that causes injury, and in 
any case no more than five years.  Interested parties may request the review of a definitive 
anti-dumping or countervailing duty, provided that a reasonable time has elapsed since its imposition. 
91. Act No. 14 provides for the establishment of the Anti-dumping and Countervailing Measures 
Advisory Committee (ACMAC), under the MIT, to conduct anti-dumping and countervailing 
investigations in order to protect domestic industr ies.  An investigation may be initiated through a 
written application to the Minister, by or on behalf of the domestic industry, or by any member of the 
ACMAC.  The decision to impose anti-dumping or countervailing duties is made by the Minister on 
the advice of the ACMAC.   
92. As of June 2012, the ACMAC had not been est ablished, and no anti-dumping, countervailing 
or safeguard measures had been taken by Tanzania.68 
(vii) Standards and other technical requirements 
(a) Standards, testing, and certification    
93. Standardization matters are governed by the St andards Act 2009, which repealed Act No. 3 of 
1975, and re-established the Tanzania Bureau of St andards (TBS) with strengthened powers to carry 
out its functions.  Other relevant  legal instruments are the Standards Certification Regulation (1981), 
the Standards Tested Products Regulation (1984), an d the Standards Compulsory Batch Certification 
of Imports (1998).   
94. The TBS, a parastatal organization under the MIT, is responsible for the promotion of 
standardization and quality assuran ce within industry and commerce.69  Its core functions include to: 
formulate and promulgate national standards; impl ement standards through third-party certification; 
provide inspection and testing services; provide training for industry quality management; and 
undertake calibration of industrial and commercial measuring equipment and instruments.  The TBS 
is not a Union entity, but its system is followed by  the Zanzibar Government and used by Zanzibar 
                                                      
67 Article 48 of Act No. 14. 
68 Information provided by the authorities, and WTO document G/ADP/N/193/TZA, 22 June 2010. 
69 The TBS was established by Act No. 3 of 1975, and re-established by the Standards Act 2009. WT/TPR/S/271/TZA Trade Policy Review 
Page A4-412 
  
 companies.  In 2011, Zanzibar enacted a law provi ding for the establishment of the Zanzibar Bureau 
of Standards (ZBS).  At the time of writing th is report, the ZBS had not yet been established. 
95. By October 2011, Tanzania had 1,485 national standards, of which 510 were compulsory 
(technical regulations) and 975 voluntary.70  Tanzanian standards and technical regulations are 
generally adopted or adapted from international sta ndards, and relate mainly to food and agriculture, 
chemicals, textiles and leather, engineering, th e environment and general techniques.  National 
standards and technical regulations do not disti nguish between domestically produced and imported 
goods.  During the review period, Tanzania con tinued to harmonize its national standards and 
technical regulations with interna tional or regional standards.  At the EAC level, over 1,200 standards 
have been harmonized for uniform application by EAC members (Common Report, 
Chapter III(1)(viii)). 
96. The TBS administers the National Standardiza tion System, through which national standards 
and technical regulations are formulated.  There ar e no differences in the formulation of standards and 
technical regulations. Both are prepared and discussed in technical committees comprising representatives from industry, government, and academia .  However, when a standard is declared 
compulsory by the Board of Directors of the TBS, it is then recommended to the Minister (of MIT) 
for approval.  Draft technical regulations are posted on the TBS website for public comment;  the 
authorities indicated that the time period for submitting written comments is 60 days.  Once approved, technical regulations are published in the official Government Gazette  and become compulsory.  
Besides the TBS, several ministri es and institutions are involved in  the preparation, issuance, and 
implementation of standards and technical regul ations, depending on the subject matter to be 
regulated.
71  The Weights and Measures Agency under MI T is responsible for legal metrology.  
Tanzania's quality assurance and conformity assessm ent infrastructure is fragmented (sector-based), 
and therefore the activities carried out by various  regulatory bodies may at times overlap, thus 
increasing compliance costs for traders.  
97. In order to curb the introduction of substa ndard products into Tanzania and protect 
consumers, on 1 February 2012 the TBS implemente d a programme for the pre-export verification of 
conformity to standards (PVoC) for exports into Ta nzania.  All consignments subject to PVoC must 
obtain a certificate of conformity (CoC) issued by an authorized PVoC service provider in the country 
of export prior to shipment.72  The CoC is mandatory for customs clearance;   it confirms that the 
products comply with the relevant Tanzanian technical regulations or  approved equivalent 
international/regional standards.  Penalties are e nvisaged for regulated products arriving in Tanzania 
without a CoC, but they have not been applied so  far.  The Tanzanian authorities may nevertheless 
take random samples from imported consignments to verify compliance.  The PVoC procedure 
applies to products subject to technical regulati ons, including toys, electrical and electronic products, 
automotive parts, cosmetics and chemical products, mechanical material and gas appliances, paper 
and stationery, furniture, safety equipment,  food and food products, and used textiles.73 There are 
                                                      
70 Figures provided by TBS.  National standards include product standards, test methods, codes of 
practice, and codes of hygiene (TBS online informa tion.  Viewed at: http://w ww.tbs.go.tz/standards). 
71 The ministries involved include the Ministry of Agriculture, Food Security and Cooperatives;  the 
Ministry of Water and Irrigation;  the Ministry of Livestock Development and  Fisheries;  the Ministry of 
Natural Resources and Tourism;  the Ministry of Communications, Science and Technology;  the Ministry of 
Infrastructure Development; and the Ministry  of Health and Social Welfare.   
72 PVoC service providers are selected  through international open tendering 
73 The list of products subject to PVoC is available at: 
http://www.intertek.com/uploadedFiles/ Intertek/Divisions/Oil_Chemical_and_Agri/Media/pdfs/TanzaniaRegula
ted%20ProductsList.pdf.  EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-413 
 
 
 three routes to obtain a CoC:  consignment certification (for occasional exporters); product 
registration and certification of shipment (fo r frequent exporters); and product licensing (for 
manufacturers with high frequency and/or volume of shipments).  Verification procedures and fees vary depending on the route,  and range from US$250 to US$700 per shipment.  Reportedly, some 
stakeholders, particularly small importers, have voiced concerns that the PVoC may cause delays in 
receiving import clearance due to lengthy verification procedures in the country of origin.  In April 2012, the TBS agreed to exempt small impor ters from the application of the PVoC, allowing 
them to use the destination inspection system instead.
74 
98. Tanzanian products that conform with technical regulations are issued a "tbs" mark licence; 
imports are issued a batch certificate.75  The TBS generally does not test Tanzanian exports unless 
specifically requested by the exporter.   
99. Testing facilities provided by the TBS include seven laboratories: the Food Laboratory, the 
Chemistry Laboratory, the Textile and Leather Labor atory, the Electrical Engineering Laboratory, the 
Mechanical Engineering Laboratory, the Building and Construction Laboratory, and the Metrology 
Laboratory.  Some of the activities of the food, te xtile, metrology, and chemistry laboratories have 
been accredited by the South African National Accreditation System (SANAS).76  O t h e r  
internationally accredited laboratories are the Nationa l Fish Control Laboratory, the Food Laboratory 
of the Tanzania Industrial Research Developm ent Organization (TIRDO), and the environmental 
laboratory of the local branch of SGS.  Eight a dditional laboratories are at different stages of the 
accreditation process.   
100. The TBS established the Packaging Technolog y Centre (PTC) in 2008 to improve the 
packaging quality of Tanzanian produc ts and facilitate their access to foreign markets.  The PTC tests 
packages and packaging materials for local products to ensure that they meet in ternational standards.  
The Centre also provides certification of packagin g materials and packages, and offers training in 
packaging design for individuals and companies.   
101. According to the authorities, Tanzania h as not entered into any mutual recognition 
agreements.  Nevertheless, in th e context of the EAC, EAC member s are required to recognize each 
other's certification marks, as provided by  the EAC SQMT Act, 2006 (Common Report, 
Chapter III(1)(viii)).  An EAC regulation to enha nce recognition of certifi cation marks has been 
approved and is expected to enter into force so metime in 2012.  Effectiv e recognition of national 
certification marks remains a major challenge for EAC integration.      
102. Tanzania has notified the TBS as its nationa l enquiry point under the WTO Agreement on 
Technical Barriers to Trade and the Agreem ent on Sanitary and Phytosanitary Measures.77  I n  
addition, the TBS has accepted the Code of Go od Practice for the Preparation, Adoption and 
Application of Standards.  Tanzania has made 44 notifications of technical regulations to the WTO 
                                                      
74 allAfrica.com online information, "Tanzania: TBS Exemption Move to Boost Small Importers", 
3 April 2012.  Viewed at: http://allafrica.co m/stories/201204030181.html [June 2012]. 
75 Certification fees are 0.2% of the c.i.f. value for all imported products, except petroleum products. 
76 The Metrology Laboratory has been accredited in four  fields (mass, small volume, temperature, and 
time and frequency), the Chemistry Laboratory has been accredited for drinking, mineral, and potable water, and the Textiles Laboratory has been accredited for c ondom testing (TBS online information. Viewed at: 
http://www.tbs.go.tz/inde x.php/tbs/aboutus/catego ry/accreditation_information/ [March 2012]). 
77 WTO document G/TBT/ENQ/38/Rev.1, 8 July 2011. WT/TPR/S/271/TZA Trade Policy Review 
Page A4-414 
  
 TBT Committee since 2009.78  It has also submitted a notification relating to its Implementation and 
Administration of the TBT Agreement.79    
103. The TBS is a member of the International Organization for Standardization (ISO), the 
FAO/WHO Codex Alimentarius Commission, the E ast African Standards Committee (EASC), and 
the SADC Committee of Experts for Standards, Quality Assurance, Accreditation and Metrology 
(SQAMEG).   
(b) Marking, labelling, and packaging  
104. Tanzania generally follows ISO guidelines on mark ing and labelling.  La bels on imports and 
on domestic products must describe the main charac teristics of the product (e.g. main components, 
validity period, and possible interdiction of use).  The TBS and other institutions, such as the 
Pharmacy Board, the National Food Control Commissi on, the Tanzania Pestic ide Research Institute, 
and the Tanzania Atomic Energy Commission regulate marking and labelling for specific products.   
105. The requirements for marking, labelling, and packaging apply to three broad product 
categories:  food, non-food, and dangerous goods.  Sensitive products such as food, pharmaceuticals 
and dangerous goods (e.g. explosives, flammable liquids, and oxi dizing substances) must be well 
packaged, labelled and marked.  Marking/labelling information requirements include:  name of the 
product, date of manufacture and expiry, contents or ingredients, directions for use, storage 
conditions, warning/safety information and symbols, lot identification, country of origin, and name 
and address of the manufacturer.  The design and cons truction of the packaging vary depending on the 
end-use of the product.  The container should preserve  and protect the contents for the required shelf- 
and use-life, and safeguard them from deterioration, damage or loss.  
106. The TBS recently set up the Packaging Technology Centre, which offers a variety of testing, 
certification, and training services to the packaging industry (section (a) above).   
(c) Sanitary and phytosanitary regulations 
107. Tanzania's SPS regime consists of several  pieces of legislation and involves multiple 
institutions.80  Overall, the system has not undergone fundamental changes since Tanzania's 2006 
TPR.  Raising awareness on the importance of SPS issues, developing enforcement capacity, and 
improving coordination among the different regulators involved, remain important challenges.    
108. Food safety management is a responsibility shared among several regulatory bodies, 
including the Tanzania Food and Drugs Authority (TF DA), the Tanzania Bureau of Standards, and the 
Fisheries Department of the Ministry of Liv estock Development and Fisheries.  The TFDA was 
created by the Tanzania Food, Drugs and Cosmetics Act (No. 1 of 2003), under the Ministry of Health 
and Social Welfare, and is responsible for controlli ng the quality and safety of food, drugs, cosmetics, 
herbal drugs, and medical devices.  TFDA's core  functions on food safety are to:  regulate the 
importation, manufacture, labelling, marking, storage,  sale, and distribution of food; register food 
products; prescribe minimum quality standards for im ported and local food products; inspect and test 
food products at manufacturing sites and ports of en try to ensure compliance;  enforce the regulations 
and apply penalties; and address consumer complaints . The TBS is responsible for setting compulsory 
                                                      
78 WTO documents G/TBT/N/TZA/1 to 44 (various dates). 
79 WTO documents G/TBT/2/Add.94/Rev.1, 28 October 2010. 
80 SPS issues are not a Union matter, so mainland Tanz ania and Zanzibar have separate legislative and 
institutional frameworks.  Nonetheless, the requirements are very similar.  EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-415 
 
 
 standards, and inspecting and certifying processed food products (see (vi)(a) above), while the 
Fisheries Department is in charge of testing and certifying processing and handling practices for fresh 
and frozen fish, and monitoring and certifying imports  and exports of fish and fisheries products.   
109. All importers of food must be registered with  the TFDA and declare the types of food to be 
imported.  An import permit is required from the TF DA for each consignment.  The application for an 
import permit must be accompanied, inter alia , by a health certificate from the country of origin or a 
phytosanitary certificate in the case of unprocessed cer eals or products of plant origin.  Each imported 
food consignment is inspected by a TFDA agent, who may take samples for analysis if deemed 
necessary.81  Consignments are tested at TFDA's own laboratory or outsourced to the Government 
Chemist Laboratory;  there are no private food laborat ories.  In addition, where the food consignment 
is subject to a technical regulation, TBS carries out inspection and takes samples for testing at its laboratory.  Moreover, all imported foods must be  inspected for radiation by the Tanzania Atomic 
Energy Commission (TAEC).  Such overlapping responsibilities, and insufficient coordination among the institutions involved in food safety control, incr eases red tape and transaction costs to traders.  
This is compounded by lack of resources, and insu fficient testing infrastructure and inspection staff, 
and may result in long delays at border posts.
82   
110. On the positive side, significant progress has been  made in food safety management in the 
fisheries sector, where restrictions in export market s in the past have driven efforts to achieve 
compliance with international standards.  The Fisher ies Department has been adequately resourced to 
perform its functions as regulator, and awareness a nd participation by the private sector have been 
crucial to the good functioning of the SPS system.  Ho rticultural products, anot her key export sector, 
have also benefited from enhanced SPS management through private investment in infrastructure and 
operating systems.  Compliance of horticultural products with international norms is essentially 
ensured through controls by private exporters and th ird-party certification.  Most exporters of these 
products use foreign laboratories to carry out pesticide residue testing,  especially when this is required 
by a foreign market regulator or buyer.83          
111. Phytosanitary matters are governed by the Plant Protection Act of 1997 and the Plant 
Protection Regulations of 1999.  The Plan Protec tion Act empowers the Ministry of Agriculture, Food 
Security and Cooperatives (MAFC) to control imports  and exports of plants and plant products, and 
otherwise manage plant health risks so as to ensu re sustainable plant and environmental protection, 
increase crop productivity and attain national food security.   
112. Under the phytosanitary regulations, imports ar e grouped under three categories, depending 
on the distribution and type of pest:  (i) permitte d under certain conditions, i.e. plants and plant 
products, living cultures of fungi, bacteria, and all beneficial organisms including biological control 
agents and bio-pesticides;  (ii) subject to quarantin e (e.g. seeds, and non-native plants or crops);  and 
(iii) prohibited, such as vegetative parts of plants (e.g. stems and leaves), soil, weeds, and narcotic 
plants.84  Imports of packaging materials (i.e. hay, st raw, rice husks, peat, chaff or other substances 
likely to support harmful organisms) are also prohibited. All import consignments must be 
accompanied by a phytosanitary certificate issued by th e country of origin; they also require an import 
permit and are subject to inspection at the point of entry.  Domestic crops do not require phytosanitary 
certification unless there is a localized pest outbreak in their production region.     
                                                      
81 TFDA (2006). 
82 World Bank (2012). 
83 Henson (undated). 
84 WTO (2006). WT/TPR/S/271/TZA Trade Policy Review 
Page A4-416 
  
 113. The Plant Health Service (PHS) under the MAFC and the Tropical Pesticide Research 
Institute (TPRI) are both involved in inspection ac tivities, and issuing import permits for plant and 
plant products, and phytosanitary certificates for exports;  this results in duplication of functions and makes coordination difficult.  In addition, the PHS is responsible for managing pest outbreaks, while 
the TPRI is in charge of pesticide registrati on and import quarantine services.  Other agencies 
involved in SPS issues are the Plant Breeders Re gistrar, which regulates breeding activities and 
oversees application of the Convention on the Prot ection of New Plant Varieties (UPOV), and the 
Tanzania Official Seed Certification Institute, wh ich offers seeds testing and sampling services.  
Imports (and exports) of plants a nd plant products are subject to a number of fees related to the 
issuance of permits and certificates, and other servi ces such as inspection, treatment supervision, 
quarantine, field inspections, and extension ser vices, all of which may considerably increase 
importation costs.        
114. The PHS has 165 inspectors based at 28 entry points (out of 51), including the international 
airports, major sea and lake ports, and selected border posts.  However, most entry posts are poorly equipped for pest inspection, staff often do not have specific training in phytosanitary matters and 
have little or no direct communication with PHS headqua rters.  Hence, pest surveillance capacity is 
severely constrained.  Due to these shortcomings, Ta nzania has suffered some outbreaks of plant pests 
and diseases (including cassava green mite, large grai n borer in maize, banana wilt disease, and a 
variety of fruit fly that infests citrus and mango-growing areas).
85  While phytosanitary certificates for 
export are issued, there is no computerized system  to retrieve export doc umentation or to trace 
consignments and investigate cases of non-conformity.   
115. The legal framework for animal health matters did not change significantly during the review 
period, although some new laws were enacted.86  The main laws regulating the sector are the 2003 
Animal Disease Act and the 2003 Veterinary Act.  The Animal Disease Act provides for general and 
compulsory animal disease control measures, pr otection of consumers against diseases found in 
animals or animal products, and the functions of inspectors.  The Veterinary Act contains provisions 
for the registration of veterinarians, enlistment of  paraprofessionals, establishment of the Veterinary 
Council, and regulation of animal health service deliv ery.  This basic legislative framework broadly 
follows international norms, but  some implementi ng regulations are still lack ing, and new or updated 
laws are needed in certain areas,  such as animal feed and animal breeding, veterinary drugs and 
aquatic animal health.  The Livestock Identifi cation, Registration and Traceability Act (No. 12), 
enacted in 2010, created a national livestock iden tification and registration system aimed at 
controlling animal diseases, enhancing food safet y, regulating the movement of livestock and 
preventing theft, and improving livestock products and their access to markets.   
116. The Directorate of Veterinary Services (DVS) of  the Ministry of Livestock Development and 
Fisheries (MLDF) is the leading agency on animal health matters, and is responsible for controlling 
animal diseases, protecting consumers, and supporting the provision of animal health services.  There 
are DVS inspectors at some 22 entry points.  Th e DVS has 7 veterinary investigation centres 
throughout the country and 19 grounds that are used as quarantine stations.  The DSV has a limited number of veterinarian staff, but some 170 governme nt veterinarians are activ e at central and local 
levels.  The DVS is the focal point for the Wo rld Organization for Animal Health (OIE).   
                                                      
85 Henson (undated). 
86 Meat Industry Act (No. 10 of 2006), the Hides, Skins and Leather Trade Act (No. 18 of 2008), the 
Animal Welfare Act (No. 19 of 200 8) and the Livestock Identification,  Registration and Traceability Act 
(No. 12 of 2010). EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-417 
 
 
 117. Imports of live animals into Tanzania are subject to an import permit from the DVS.  A 
sanitary/health certificate from a qualified veterinarian  in the country of export must accompany every 
imported animal.  Imported animals must be examined by a vet at the port of entry and are subject to quarantine regulations.  Imported animals may enter only at designated posts.  Imports of meat and 
edible meat offal require an import permit from the TFDA.   Imports of live animals and animal 
products are subject to various fees relating to import permits and certificates, and inspection services.   
118. Since 2005, Tanzania has prohibited the importa tion of poultry and poultry products to 
prevent the introduction of Highly Pathogenic Avian Influenza (HPAI).  Also, imports (and exports) 
of certain fish and fishery products are banned u nder the Fisheries Act of 2003 and the Fisheries 
Regulations of 2009.  These include poisonous fish;  fish or fishery products containing biotoxins, 
toxins, prohibited antibiotics, veterinary drugs, and c ontaminants;  fish or fishery products containing 
food additives not permitted or in amounts exceeding permissible levels;  and fish or fishery products 
contaminated with radioactive material. 
119. While animal disease surveillance and monitoring sy stems are in place, th ey are in need of 
upgrading and strengthening.  Moreover, the capacity  to perform risk assessment remains weak.
87  
Hence, Tanzania is still strinving to  control and eradicate a number of animal diseases that restrict the 
access of its exports to international markets and may negatively affect backward linkages with the 
tourism sector.  Rinderpest, contagious bovine pl europreumonia (CBPP) and foot-and-mouth disease 
(FMD) have been prioritized by the DVS in its surveillance programmes and international 
collaboration.  However, control measures are ofte n a reaction to disease outbreaks and rely on donor 
support.88  In order to increase its livestock exports , for several years Tanzania has envisioned 
establishing disease-free zones, which would be recogni zed by trading partners in accordance with the 
OIE Terrestrial Animal Health Code.  To date, no disease-free zones or compartments have been declared.
89  
120. Tanzania is a member of the Codex Alimenta rius, the OIE, and the International Plant 
Protection Convention (IPPC).  Within the context of  the EAC, Tanzania works for the harmonization 
of SPS standards.  In 2011, the EAC Council of Mi nisters adopted a draft EAC SPS Protocol, which is 
currently being reviewed for legal input (Common Report, Chapter III(1)(ix)).      
121. Tanzania has notified the TBS and the Perman ent Secretary of the MAFC as the enquiry 
points under the WTO Agreement on Sanitary and Phyotsanitary Measures.90  During the review 
period, Tanzania made no SPS notifications, although a number of its TBT notifications were related 
to food products.  Tanzania submitted to the SPS Committee a communication concerning its 
experience with technical assistance in the fisheries sector.91  The WTO Secretariat was not able to 
find a national catalogue on SPS measures.   
122. A National SPS Committee was established in August 2009 to serve as a platform for 
consultations and coordination among stakeholders on sanitary and phytosanitary issues.  The 
committee is also meant to advise the Government on policies and regulations concerning SPS 
                                                      
87 Abegaz Mulat (undated).  
88 An outbreak of Rift Valley Fever (RFV) was reported in 2007, followed by control measures. 
89 The authorities have indicated that surveys have been conducted in the Myomero district of the 
Morogoro region and in the Sumbawanga and Nkansi districts of the Rukwa region for the purpose of initiating 
the establishment of disease-free zones.  
90 WTO online information, "SPS Informati on Management System ".  Viewed at:  
http://spsims.wto.org [27 February 2012]. 
91 WTO document G/SPS/GEN/687, 6 April 2006. WT/TPR/S/271/TZA Trade Policy Review 
Page A4-418 
  
 matters, monitor promulgation and implementation of national SPS meas ures, and ensure adoption of 
international standards and guidelines.  The comm ittee is also mandated to:  improve Tanzania's 
implementation of the WTO SPS Agreement; discuss a nd prepare national posit ions and enhance the 
country's participation in regi onal and multilateral fora (includi ng the WTO SPS Committee and the 
international standard-setting bodies); and make recommendations for technical cooperation relating 
to the implementation of SPS measures.  The co mmittee comprises stakeholders from the public and 
private sectors and meets on a quarterly basis.  
(viii) Other measures 
123. In general, Tanzania does not a pply trade-related investment me asures (TRIMs).  However, in 
order to encourage local processing, the rate of excise taxes on wine, cigarettes, and beer vary 
according to local-content thresholds (section (2)(iv)).  
124. Tanzania has no agreements with foreign govern ments or enterprises aimed at influencing the 
quantity or value of goods and ser vices exported to Tanzania.  Moreover, the authorities are not aware 
of any such agreements between companies est ablished in Tanzania and foreign enterprises. 
125. Tanzania maintains a strategic grain reserve (mainly for maize) managed by the National 
Food Reserve Agency, under the Ministry of Agriculture, Food Secu rity and Cooperatives 
(Chapter IV(2)(iii)(a)). 
126. Tanzania applies no trade sanctions other than  those endorsed by the UN Security Council or 
other regional organizations of which it is a member.  
(3) M EASURES DIRECTLY AFFECTING EXPORTS  
(i) Registration and documentation 127. Exporters must register with the Business Registration and Licensing Agency (BRELA) of 
the MIT, and obtain a business licence; requirement s are similar to those applying to importers 
(section (2)(i) above).  Additionally, exports of certain products are subject to licences or permits 
issued by the relevant institutions, such as the Mi nistry of Agriculture, Food and Cooperatives (food), 
the Commodity Boards (coffee, tobacco, cotton, ra w tea, pyrethrum, sisal, and sugar), the Fisheries 
Department, the Forestry Department, the Wild life Department, and the Mining Department. 
(ii) Export taxes 
128. Tanzania maintains an export tax on raw cashew nuts of either 15% of the f.o.b. value, or 
US$160/tonne.  Exports of raw hides and skins are al so subject to an export tax, which was increased 
progressively during the review period from 20% to 90% of the f.o.b. value or T Sh 900/kg, 
whichever is higher.
92  Export taxes are designed to encourage local processing and value-added 
exports.  In July 2006, the 2% levy on crop exports  applied by the Commodity Boards was abolished 
(Chapter IV(2)(iii)(a)).  Exports are zero-rated for VAT.  
(iii) Export prohibitions, restrictions, and licensing 
129. The Third Schedule of the EAC Customs Management Act provides for prohibited and 
restricted exports (Common Report, Chapter III (2)(i)).   Tanzania prohibits exports of raw fish, scrap 
                                                      
92 Amendment made to the Export Levy Act in June 2012. EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-419 
 
 
 metals, and used batteries.  For food-security reasons , temporary bans or restrictions may be applied 
on exports of certain crops, such as maize, rice, and beans (Chapter IV(2)(iii)(a)).  Exports of certain 
fish and fishery products are prohibited on sanitary and phytosanitary grounds (section (2)(vii)(c)).  
Exports of seashells species, sea turtles, and sea cucumber are also banned.  
130. Export licences or permits from the relevant authorities are required for:  food/staple 
(Ministry of Agriculture, Food Security and Coopera tives);  forestry/wood logs (Forestry Department 
of the Ministry of Natural Resources and Tourism/ MNRT);  wildlife (Wildlife Department of the 
MNRT);  minerals and gemstones (Mining Department  of the Ministry of Energy and Minerals); and 
fisheries (Fishing Department of the Ministry of Livestock Development and Fisheries).  Commodity 
Boards enforce quality standards on exports.    
(iv) Export assistance, financing, and promotion 
131. Tanzania maintains several schemes to assist exporters, including duty drawback, 
manufacturing under bond, and export processing zon es (EPZs) and special economic zones (SEZs).  
The first two programmes apply both to the mainla nd and Zanzibar, while Zanzibar has its own EPZs 
and free-port zones schemes (section (v) below).  The EAC Customs Management Act regulates these 
types of scheme (Common Report, Chapter III(2)(ii)).93   
132. Under the duty drawback scheme, duties ch arged on imported inputs used for producing 
goods for export (or for transfer to an EPZ) are re funded.  The purpose of the scheme is to avoid 
erosion of export competitiveness as a result of the im port duties, and is meant to cater for exporters 
who do not rely heavily on imported goods.  The manufacturing-under-bond scheme provides for the 
exemption of all duties and taxes on imports of capital equipment and inputs used in the manufacture 
of exports.  It is intended to meet the immediate needs of companies producing exclusively for export.  
133. Export finance on commercial terms is offere d by several public and private banks.  The 
government-owned Tanzania Investment Bank (T IB) provides pre-export financing and other 
financial services in support of exporting companies.94  The National Bank of Commerce (NBC), in 
which the Government has a 30% stake, offers a ra nge of trade finance services, including pre- and 
post-export financing, letters of credit, and guarantees.95  In 2011, the NBC re-launched its trade 
finance services in Arusha an d Kilimanjaro.  The Exim Bank Tanzania, a privately owned 
commercial bank, specializes in financing the procur ement, processing and packaging of export crops 
(coffee, cashew nuts, cotton, and non-traditional crops such as sesame and pulses), and finances the 
procurement and distribution of agricultural inputs. 
134. Tanzania operates an export credit guarantee sc heme (ECGS), established in 2003 to improve 
credit conditions for exporters with viable business,  but lacking adequate collateral to secure bank 
financing.96  The ECGS is managed by the Bank of Tan zania (BOT), pending the formation of an 
independent Credit Guarantee Agency.  The scheme guarantees up to 75% of short-term loans and up to 50% of long-term credits in respect of all expor t-oriented businesses and development projects.   To 
be eligible, a borrower must:  be a locally registered  entity, majority owned by Tanzanian citizens;  be 
                                                      
93 The duty drawback scheme is covered under sections 138-139 of the EAC Customs Management 
Act; manufacturing under bond under sections 160-166;  and export processing zones under sections 167-170.  
94 The TIB has the following share capital structure:  Tanzanian Government (99.098%), Consolidated 
Holding Corporation (0.676%), and National Insurance Corporation of Tanzania Ltd. (0.226%). 
95 The Absa Group Ltd. of South Africa owns 55% of the NBC shares, and the International Finance 
Corporation owns 15%. 
96 United Republic of Tanzania (2003). WT/TPR/S/271/TZA Trade Policy Review 
Page A4-420 
  
 engaged in export business, value addition or employm ent generation, and with proven expertise in its  
particular type of business;  have economically  and financially viable projects as assessed by a 
financial institution;  and offer a ppropriate enforceable security.  For long-term projects, the borrower 
must contribute at least 25% of the project costs.   The ECGS provides three types of guarantees to 
protect participating financial institutions (PFIs) ag ainst non-payment due to insolvency or protracted 
default:  pre-shipment; post-sh ipment, and export production.97  A fixed fee of 1.0% of the guaranteed 
amount of the credit facility is charged during the first year, and an annual recurring fee of 0.5% of 
the outstanding guaranteed amount in the subsequent years.  
135. According to a study commissioned by the Tanzania Exporters A ssociation (TANEXA), 
access to credit is still difficult for exporters, which in the TANEXA's view points to the need for 
improving the ECGS's performance.  The study found that only 11 out of 22 registered PFIs have been involved in the ECGS; that only 89 projects were guaranteed between 2003 and 2009, and that the amount of capital dedicated to the scheme has been  small.  Other concerns  raised were high ECGS 
costs and fees, cumbersome and lengthy procedur es, and lack of involvement of foreign banks.
98 
136. Tanzania participates in the Africa Trade Insura nce Agency, a multilateral development 
financial institution that provides credit and political ri sk insurance to facilitate  access to trade finance 
for companies engaged in trade w ith participating countries.  
137. The Tanzania Trade Development Authority (T anTrade) was established in 2009 to replace 
the Board of External Trade (BET).99  Its main objective is to promot e external (and internal) trade in 
goods and services both in mainland Tanzania and Zanz ibar (except for matters related to internal 
trade).  TanTrade advises the Government on trad e policy formulation and implementation, and is 
mandated to implement the National Trade Policy,  the National Export Development Strategy, the 
Trade Integration Strategy, and sectoral policies designed to develop trad e.  TanTrade provides 
support to exporters through, inter alia , training services, export planning, information on trade 
opportunities and regulations, tools for market resear ch and analysis, and organization of trade fairs 
and exhibitions. Most of its services are free or  low-cost.  TanTrade is financed through 
appropriations from the Government budget, income ge nerated from its own activities, and donations.    
138. In Zanzibar, export promotion is guided by  the Zanzibar Export Development Strategy 
(ZEDS, 2009-2015) prepared by government and private sector stakeholders, and issued in May 2009.  
The ZEDS provides an institutional framework and a set of concrete actions to increase Zanzibar's 
export competitiveness.  In line with the Zanzibar  Strategy for Growth and Reduction of Poverty 
(MKUZA), ZEDS identifies three priority sectors:  (i ) agriculture (spices, fisheries, seaweed and salt, 
fruits and vegetables, and livestock), (ii) tourism,  and (iii) manufacturing.  The ZEDS secretariat, 
located within Zanzibar's Ministry of Tourism, Tr ade and Investment (MTTI) is responsible for export 
development and for the implementation, m onitoring, and evaluation of the ZEDS.   
139. The Zanzibar Chamber of Commerce, Industry and Agriculture supports the attainment of 
ZEDS objectives by issuing certificates of origin for Zanzibar exports, organizi ng and participating in 
trade fairs in Zanzibar and abroad, and providing advice to the Government on industrial and export 
policy issues.  In the Chamber's view, in order to increase export competitiveness, further action is 
required to streamline business regi stration procedures, reduce cargo-clearance time at Zanzibar port, 
                                                      
97 For further details see WTO (2006). 
98 Tanzania Exporters Association (2010). 
99 TanTrade was established under the Tanzania Trade Development Authority Act No. 4 of 2009.  It 
also replaced the Board of Internal Trade.  EAC-Tanzania WT/TPR/S/271/TZA 
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 develop airport and seaport infrastructure, simplif y and reduce taxes,  and improve access to export 
credit guarantees and to export financing for SMEs. 
(v) Export processing zones and special economic zones 
(a) Mainland Tanzania 140. Mainland Tanzania established its export pro cessing zones scheme in 2003, with the aim of 
attracting investment for export-led industrializa tion, stimulating international competitiveness, 
promoting exports, increasing foreign exchange  earnings, generating jobs, attracting new 
technologies, fostering value-addition, and acceler ating economic growth.  In 2006, the EPZ Act of 
2002 was amended to strengthen supe rvision of the scheme and improve its incentive package.  In 
addition, a new Special Economic Zones (SEZs ) scheme was introduced in 2006, involving 
investments in manufacturing and services both for export and the local market.
100   
141. The Export Processing Zone Authority (EPZA), established in 2006 as an autonomous agency 
under the MIT, is responsible for managi ng and implementing the EPZ and SEZ schemes.101  I t s  
functions include granting licences to EPZ/SEZ investor s;  developing basic infrastructure (together 
with other partners) to support the operation of th e economic zones;  promoting investments;  and 
facilitating administrative procedures for investors.  The EPZA Board is responsible for monitoring 
the performance of the EPZ and SEZ schemes, giving ge neral policy directions for the development 
of the economic zones, and determining priority sectors to be promoted.102     
142. The sectors selected for EPZ investment are:  te xtiles and garments;  agri-processing;  leather 
processing and manufacture of leather products;  fish processing; lapidary (gold, diamonds, and 
gemstones, including tanzanite);  wood products; electrical and electronic appliances;  and 
information and communication technology industries (ICT).  Priority sectors for SEZ investment include:  agricultural and agri-industrial projects;   industrial activities;  tourism;  commercial 
activities;  forestry;  ICT;  and banking and fina ncial centres.  All areas of mainland Tanzania are 
open to EPZ and SEZ investments.  At  end 2011, there were six indus trial parks, and land had been 
set aside in 18 regions for the development of EPZ/SEZ sites (500 to 9,000 hectares each).
103   
143. Local and foreign investors may participate in EPZ and SEZ schemes, if they meet the 
conditions required.  However, both schemes are restri cted to new investments only, so as to limit the 
                                                      
100 EPZ set-ups include industrial parks and free points (stand-alone factory units).  SEZs include:  
industrial parks, EPZs, free-trade zones, free ports, tourist parks, technological parks, and other areas as 
prescribed by the EPZA. 
101 Legal amendments in 2011 made the EPZA responsible for supervision of both EPS and SEZ 
schemes.  
102 The EPZ Council was renamed EPZA Board in June 2011 (Economic Zones Laws Miscellaneous 
Amendments Act, 2011).  The Board consists of 11 me mbers:  the Minister of Industry and Trade as the 
Chairman; the Attorney General; the Pe rmanent Secretaries of the Ministries  of Finance; Water; Energy; and 
Local Governments; the Executive Secretary of the Planning Commission; the Commissioner General of TRA; 
the Commissioner for Lands; the Chairman  of the Tanzania Private Sector Fo undation; and the President of the 
Tanzania Chamber of Commerce, Industry and Agriculture.  
103 The industrial parks are Hifadhi EPZ (Dar es Salaam), Millenium Business Park EPZ (Dar es 
Salaam), Kisongo EPZ (Arusha), Kamal Industrial Park SEZ (Bagamoyo), Global Industrial Park SEZ (Dar es 
Salaam), and Benjamin William Mkapa SEZ (Dar es Salaam ).  The Bagamoyo SEZ, located 50 km north of Dar 
es Salaam, is one of the most important projects.  It will be built on 9,000 hectares and take the form of a 
township, including industrial, technological, and tourism parks as well as a free-trade area, a logistic centre, 
and railway, port and airport facilities, thus helping to  alleviate congestion problems in Dar es Salaam.  WT/TPR/S/271/TZA Trade Policy Review 
Page A4-422 
  
 loss of existing tax revenues.104 To be eligible under the EPZ scheme,  a local investor must have a 
minimum annual export turnover of US$100,000, while a foreign investor must have an annual export 
turnover of no less than US$500,000.  In both cases, a company must export at least 80% of the goods 
produced or processed in the EPZ;  the remaining 20% may be sold on  the domestic market (i.e. the 
EAC common market), subject to payment of applicable  import duties, taxes, and charges.  In order to 
qualify under the SEZ scheme, a minimum capital in vestment of US$100,000 is required from a local 
investor, and a minimum of US$500,000 from a foreign investor.105  There is no export threshold for 
investments made under the SEZ scheme.  Supplies of EPZ/SEZ companies are authorized by the Tanzania Revenue Authority not to charge VAT on the goods supplied.     
144. All investors under the EPZ and SEZ schemes benefit from a range of incentives, including 
fiscal exemptions and privileged/ expedited procedures to facilitate their set-up and operation 
(Table III.1).  Incentives are divided into three categories under the SEZ scheme, according to the 
nature of the investment:  infrastructure devel opers; investors producing for sale into Tanzania's 
customs territory; and investors producing for the export market.  The EPZ scheme has only the latter 
incentives.   
Table III.1 
Mainland Tanzania:  incentives un der EPZ and SEZ schemes, 2012   
 EPZ investors  SEZ investors 
   Developers Investors 
producing 
for customs 
territory Investors 
producing 
for export 
market 
Exemption from      
Corporate tax for 10 years Yes  Yes No Yes 
Import duties and taxes on raw materials and capital goods 
related to production in the economic zone Yes  Yes Yes Yes 
Withholding tax on rent, dividend and in terest for 10 years Yes  Yes Yes Yes 
Local government levies a nd taxes on products and/or 
services produced in the economic zone for 10 years Yes  No Yes Yes 
VAT on utility charges Yes  Yes No Yes 
Property tax for 10 years No  Yes No No 
Privileged/expedited procedures       
Visas at point of entry for key personnel  Yes  Yes Yes Yes 
Work permits Yes  Yes Yes Yes 
Transfer of profits, dividends, and royalties Yes  No Yes Yes 
On-site customs inspection of goods Yes  No Yes Yes 
One-stop service centre Yes  No Yes Yes 
Access to export credit guarantee scheme Yes  No No Yes 
Source: EPZA online information.  Viewed at: http://epza.co.tz /About-EPZ-Program.html and 
 http://www.wpza.co.tz/About-SEZ-Progr am.html [March 2012], and information provided directly by the EPZA.  
145. At end 2011, there were 44 companies (24 in industrial parks and 20 free points) operating 
under the EPZ and SEZ schemes, representing a total capital investment of US$650 million, and providing 13,500 direct jobs.  In terms of activ ities, 36% of investments were made in agri-
processing, 36% in engineering industries, 18% in textiles manufacturing, and 10% in mineral 
processing.  As regards the origin of capital, 44%  of investments were locally owned, 41% were 
foreign-owned, and 15% were joint ventures.  Foreign companies are primarily from China, Denmark, 
India, and Japan.  Exports from companies ope rating in EPZs amounted to US$105 million in 2009, 
                                                      
104 Industries already benefiting from investment incentives under other schemes are not eligible. 
105 Economic Zone Laws (Miscellaneous Amendments) Act, 2011. EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-423 
 
 
 equivalent to 21% of manufacturing exports, and 3.4% of total exports.106  The main export markets 
are the United States, the European Union, South Africa, and India.   
146. Some of the main challenges facing EPZs and SEZs in mainland Tanzania are lack of 
physical infrastructure, erratic supply and high co sts of utilities (power and energy), port congestion, 
insufficient skilled labour. In addition, there is a lack of funding for conducting feasibility studies and 
master plans, and developing infrastructure to  support the operation of the EPZ/SEZ zones. 
(b) Zanzibar 
147. Zanzibar has its own investment policy and legi slation.  The Zanzibar Investment Promotion 
and Protection Act (ZIPPA) of 2004 provides for the establishment of export processing zones (EPZs) 
and free port zones.  At the time of writing this report, the 2004 Act was being reviewed with the aim 
of streamlining procedures for the establishment of  businesses as well as promoting local investment.  
The Zanzibar Investment Promotion Authority (ZIPA)  is responsible for the operation of EPZs and 
free port zones.  Priority sectors for investment under ZIPPA (2004) include:  tourism, agri-processing (crops, spices, and livestock), horticulture and floriculture, fisheries and marine products, 
manufacturing, transport (air, sea, and hub ports) , ICT, financial services, and infrastructure 
development (industrial estates and warehouses).   
148. Investors wishing to establish under ZIPPA (2004) must meet minimum investment capital 
requirements, which are different for foreign an d local investors (Table III.2), and obtain an 
Investment Certificate from ZIPA.  In addition, an EPZ company must carry out an industrial or processing activity, and export not less than 80% of its production.  The remaining 20% may be sold 
on the domestic market (i.e. the EAC common market) subject to payment of all applicable duties and 
taxes.  No export threshold applies to co mpanies established under free port zones.   
Table III.2 
Minimum investment capital requirements under ZIPPA, 2012 
Project sector Proposed capital 
Foreigners 
(US$) Tanzanians 
(T Sh) 
Hotel 2,500,000 300,000,000 
Agriculture, hunting, and forestry 500,000 50,000,000 
Fisheries 500,000 100,000,000 
Manufacturing 500,000 100,000,000 
Electricity, gas, and water supply 500,000 100,000,000 
Construction 500,000 100,000,000 
Tour operation, diving and game fishing, wholesale business, and restaurants 200,000 22,000,000 
Other services (transport, storage, communications, financial services, real estate renting, business 
activities, education, health and social work, recreation activities) 500,000 100,000,000 
Source :  Zanzibar Investment Promotion Authority (2011), Guidelines to Investors , Zanzibar.  
149. Currently, there are three EPZs:  the Fumba Fr ee Zone (Unguja Island), the Micheweni Free 
Zone (Pemba Island), and the Am aan Industrial Park.  The EPZ busi nesses currently include garment 
and shoe manufacturing, agri- and fish-processing, video and audio manufactur ing, water and paint 
factories, and cosmetics.  The free port zones are intended for the free storage of transit goods; they 
offer investment opportunities for activities such as warehousing, storage, labelling, packing, 
repacking, quality control services, simple assemblin g, minor processing, and export-oriented airport 
                                                      
106 Data provided by the EPZA. WT/TPR/S/271/TZA Trade Policy Review 
Page A4-424 
  
 and seaport activities.  At present, there are two such zones, the Maruhubi Free Port Zone and the 
Airport Free Port Zone.  According to informati on provided by the Zanzibar authorities, capital 
investment stock under ZIPPA projects amounted to  US$120.8 million in 2011.  Investors under both 
the EPZs and free port zones are entitled to a package of fiscal and other incentives (Table III.3).     
Table III.3 
Zanzibar: incentives under ZIPPA, 2012  
Incentives Export processing zones  Free port zones 
Exemption form import duty and taxes on machinery, 
equipment, construction/ ra w materials and other inputs Yes Yes 
Exemption from  taxes on goods produced for export  Yes Yes 
Exemption from taxes on goods destined for re-export No Yes 
Exemption for corporate tax 100% for the first 10 years, and 
75% in the succeeding 10 years 100% for the first 20 years 
Exemption  from tax on dividends  for 10 years Yes Yes 
Exemption from any local taxes on products and/or 
services produced in the zone  Yes Yes 
On-site customs inspection of goods Yes Yes 
No limit on duration that goods may be stored in free port No Yes 
Source: ZIPA online information.  Viewed at: http:/ /zanzibarinvest.org/incentives.htm [March 2012]. 
 
(4) M EASURES AFFECTING PRODUCTION AND TRADE  
(i) Incentives 
150. In addition to the incentives granted under th e EPZs and the special economic/free port zones 
schemes, mainland Tanzania and Zanzibar mainta in different investment  incentives programmes, 
mainly designed to attract and orient investment s, foster the country's development objectives, 
promote valued-added activities, and introduce ne w industries and technologies.  In general, 
incentives take the form of duty and tax exemptions a nd deferrals, and are offered to lead and priority 
sectors (agriculture, agri-processing, mining, touris m, petroleum and gas, and infrastructure) in 
mainland Tanzania, and in different  economic sectors in Zanzibar (C hapter II(4)).  As required by 
law, incentives are offered to both local and foreign investors.   
151. In mainland Tanzania, most incentives are grante d through the Tanzania Investment Centre 
(TIC), which is the primary government agency res ponsible for promoting and facilitating investment.  
The TIC issues certificates of incentives and i nvestment guarantees, and registers technology 
agreements for all qualifying investments above US$300,000 for foreign investors, and US$100,000 
for local investors.  As a one-stop centre, the TIC also assists investors in obtaining all registrations 
and authorizations required to set  up and operate their business.  The Zanzibar Investment Promotion 
Authority is the focal point for investment promotion and facilitation in Zanzibar.   
(ii) Government procurement 
152. According to Tanzania's public procurement re gulator, in FY 2010/11, 315 procuring entities 
(out of 390) reported a total of 142,396 contracts awarded. Amounting to T Sh 4.5 trillion, 72.5% of 
the contracts were for goods, 21.7% for non-cons ultancy services, 4.8% for works, 0.9% for 
consultancy services, and 0.1% for disposal of assets  by tender.  In value terms, works represented EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-425 
 
 
 60.1% of the value of all awarded contracts, fo llowed by goods (30.1%), non-consultancy services 
(5%), consultancy services (4%), and disposal of assets (0.8%).107 
153. Of the total value of contracts awarded in FY  2010/11, 49.2% were for executive agencies 
(such as TANROADS and TANESCO), 30.1% for parastatal organizations, 7.2% for local 
government authorities, 6.1% for ministries, 6.5% for independent government departments, and 0.9% 
for regional administrative secretariats.  Procurement by TANROADS and TANESCO alone 
represented about 54% of the total value.  Expenditu re in procurement was eq uivalent to 41% of the 
budget received by the reporting entities.108 
154. During the review period, Tanzania continued to strengthen the regulatory framework of its 
government procurement system.  A new Public Procurement Act (2011) passed in December 2011, 
repealed the Public Procurement Act of 2004.  As at June 2012, the new Act had not yet entered into 
force.  The Act of 2004 and the procurement regula tions issued in 2005 and 2007 are still applicable 
in mainland Tanzania109;  Zanzibar has its own legislation (P ublic Procurement Act No. 9 of 2005).  
Tanzania is neither a signatory to, nor an observer in, the WTO Plurilateral Agreement on 
Government Procurement.    
155. The Public Procurement Act of 2011 covers all procurement of goods, works, and services, as 
well as disposal of assets by tender, undertaken by all public institutions, non-government entities 
using public funds, and public-private partnership projects.110  Public entities include ministries, 
parastatal organizations, government departments, and local government authorities.  Tanzania has a 
decentralized procurement system, under which each procuring entity (PE) is mandated to carry out 
its procurement within the approved budget, an d has its own procurement management units, 
evaluation committees, tender board s (responsible for reviewing tender documents and awarding 
contracts), and accounting officers, who are in  charge of all procurement functions.   
156. The Public Procurement Regulatory Author ity (PPRA), established in 2005 under the 
Ministry of Finance, is responsible for monito ring and regulating procurement activities by PEs, and 
ensuring the application of fair, competitive, tr ansparent, non-discriminatory, and value-for-money 
procurement standards and practices.  The Governme nt Procurement Services Agency of the Ministry 
of Finance was re-established in 2007, replacing th e Government Stores Depa rtment.  The Agency's 
functions include procurement and distribution of supplies to regional offices across the country and 
arranging procurement of "common us ed items and services" by PEs through framework contracts, as 
well as provision of warehousing and storage facilities.     
157. Competitive tendering is the default method of procurement.  However, PEs may restrict 
tenders in certain circumstances, such as unforeseeable urgency111, or where there is a "need to 
achieve certain social objectives by calling for th e participation of local communities".  The 
                                                      
107 PPRA (2011). 
108 PPRA (2011). 
109 Public Procurement (Goods, Works, Non-Consultancy Services and Disposal of Public Assets by 
Tender) Regulations 2005 (Government Notice No 97);  Public Procurement (Selection and Employment of 
Consultants) Regulations 2005 (Government Notice No . 98);  and Local Government Authorities' Tender 
Boards (Establishing and Pr oceedings) Regulations 2007. 
110 The defence and national security organs must comply with the 2011 Act in managing their 
procurement of non-restricted items, a list of which is to be agreed annually with the procurement authority. 
111 The conditions for emergency procurement are established in section 65 of the 2011 Act. WT/TPR/S/271/TZA Trade Policy Review 
Page A4-426 
  
 conditions and thresholds for usin g procurement methods other than competitive tendering are set out 
in the 2011 Act and specified in the regulations.112   
158. Six procurement methods may be used (Table III.4):  (i) international competitive tenders, 
open to any supplier, are used when the payment may be made in whole or in part in foreign currency 
or the estimated cost of the procurement exceeds cer tain pre-established thr esholds;  (ii) national 
competitive tenders, open to any supplier, are used when, inter alia , the payment may be made in 
local currency (up to pre-established thresholds),  or the goods, works or services are available 
domestically at prices below the international market113;  (iii) restricted tenders, where only pre-
qualified candidates are invited to submit tenders114;  (iv) competitive quotations, where the PE 
negotiates with at least three suppliers;  (v) single source, where the PE negotiates the contract clauses 
with a single supplier (used for emergency situations);   and (vi) minor-value procurement.  In the case 
of projects funded by international institutions, the procurement regulations of  those organizations are 
followed. 
159. The PPRA has reported that for the FY 2010/11, domestic firms accounted for 37.2% of the 
total value of awarded contracts, foreign firm s for 62.5%, and joint ventures between local and 
foreign firms for 0.3%.115 
Table III.4 
Public procurement methods and thresholds, 2012  
(T Sh) 
Method of tendering Goods 
(T Sh) Works 
(T Sh) Non-consultancy 
services 
(T Sh) Disposal of assets 
(T Sh) 
International competitive tendering No limit No limit No limit No limit 
National competitive tendering Up to 
800,000,000 Up to 
3,000,000,000 Up to 
500,000,000 Up to 
3,000,000,000 
Restricted tendering Up to 
400,000,000 Up to 
1,500,000,000 Up to 
200,000,000 Up to 
100,000,000 
Competitive quotations Up to 
80,000,000 Up to 
100,000,000 Up to 
50,000,000 n.a 
Single-source procurement Up to 
500,000,000/- Up to 
800,000,000 Up to 
100,000,000 n.a 
Minor-value procurement Up to 
10,000,000 Up to 
20,000,000 Up to 
10,000,000 n.a 
n.a. Not applicable. 
Source: Public Procurement (Goods, Works, Non-Consultancy Se rvices and Disposal of Public Assets by Tender) 
 Regulations 2005 (Government Notice No. 97).   
160. The 2011 Act and the regulations set out proce dures and time limits for dealing with tender 
notices and documents, and with submission, receipt , and opening of tenders.  They also contain 
provisions on the content of tender documents, and th e use of standard tender documents (STDs) and 
neutral specifications.  The PPRA has issued STDs (e .g. for the procurement of goods and works), as 
well as procurement guidelines (e.g. for evaluation of  bids and preparation of responsive bids) and 
other standard forms.  Competitive tenders must be advertised at least twice in newspapers of nation-
wide circulation for national competitive bidding, and in international trade journals for international 
competitive bidding.  The evaluation criteria must be  specified in the tender document, including the 
                                                      
112 Public Procurement (Goods, Works and Non-Consultancy Services) Regulations, Part VI. 
113 Public Procurement (Goods, Works and Non-Consultancy Services) Regulations, Section 66 (2). 
114 The Act and regulations contain provisions on how prequalification procedures are to be conducted. 
115 PPRA (2011). EAC-Tanzania WT/TPR/S/271/TZA 
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 factors to be taken into account;  the lowest su bmitted price may not necessarily be the basis for 
awarding a contract.  Procuring entities must notify all non-successful bidders of the results of the tender within a week.  The award of contract must be published in the Government Gazette , the 
PPRA's journal and website, and in at least  one local newspaper of wide circulation.
116  The PPRA's 
Procurement Journal  (TPJ) was established in 2007 and has b een published weekly since July 2010.  
Key procurement information, including awarded cont racts, is also published in the PPRA's website 
and associated tender portal.117 
161. In order to increase participation of local firms in public procurement, a preferential margin of 
15% is to be given for goods manufactured or mi ned in Tanzania, and a margin of up to 10% for 
domestic contractors and service providers.  Exclusiv e preference for local suppliers is mandatory for 
procurement below the following thresholds:  go ods, T Sh 200 million;  non-consultancy services, 
T Sh 250 million;  consultancy services, T Sh  500 million; and works, T Sh 1 billion. 
162. The Public Procurement Appeals Authority (PPAA), established in 2005, is the highest 
instance for administrative review of complaints and disputes arising from the procurement process.  
There is a three-tier complaints system, under whic h a supplier may lodge a complaint to:  (i) the 
accounting officer of the relevant PE;  (ii) the PPRA; and (iii) the PPAA.  There are time limits for a 
decision to be made in each stage, and in case the three levels fail to produce a decision within the 
prescribed time limits, the complainant may seek judicial review. 
163. Tanzania's public procurement system has been  the object of several external and internal 
assessments.118  In general, while Tanzania has a s ound and modern regulatory framework covering 
all aspects of the procurement process, it still faces a number of challenges to ensure its effective 
implementation.  The PPRA recognizes that the PEs' performance needs to be improved in procurement planning, establishment of procurem ent management units, publication of awards, 
compliance with tender preparation times, contr act management, record keeping, and professional 
skills.
119  The PPRA is implementing the Medium-Term Master Plan (2009-13), the main objectives 
of which are to: strengthen the linkage between the public procurement system and the economic 
growth objectives; improve PEs' compliance w ith procurement legislation; harmonize the 
procurement regulatory regime; professionalize th e procurement function;  and strengthen PPRA's 
operational and financial capacity.  
(iii) State trading, state-owned enterprises, and privatization 
164. Tanzania has made no notifications to the WTO regarding state-trading enterprises as defined 
in GATT Article XVII.  According to the authorities,  neither SOEs nor private companies officially 
hold any exclusive trade privileges or rights.  Ho wever, companies such as TANESCO, the Tanzania 
Post Corporation (for reserved services), Tanzania Telecommunications Corporation Ltd. (for international and domestic basic voice services on th e mainland), the crops marketing boards, and 
other public companies are operating under monopoly or hold exclusive rights in their respective field 
of activity (Chapter IV).   
165. In the early 1990s, Tanzania embarked in a pr ivatization and parastatal reform programme 
aimed at increasing the efficiency of the economy, reducing the fiscal burden of state-owned 
                                                      
116 Regulation 67 (2), Government Notice No. 98 of 2005;  and Regulation 97(11) and (12), 
Government Notice No. 97 of 2005. 
117 PPRA online information. Viewed at: http://www.ppra.go.tz. 
118 See World Bank (2003); and PPRA (2007). 
119 PPRA (2010). WT/TPR/S/271/TZA Trade Policy Review 
Page A4-428 
  
 enterprises (SOEs)120, and promoting private-sector development.  The World Bank provided 
technical and financial support for implementation of the privatiza tion programme.  The Parastatal 
Sector Reform Commission (PSRC), created in 1992, was responsible for executing the national 
privatization programme, which envisaged the dives titure of some 400 SOEs, until its legal existence 
ended in December 2007.  As of that date, the C onsolidated Holding Corporation (CHC) took over the 
PSRC's mandate, including the disposal of residual assets, divestitures, liquidation of public enterprises, monitoring and evaluation of privat ized entities, and coor dination of regulatory 
authorities.  Additionally, the Treasury Registra r, under the Ministry of Finance, manages and 
oversees the performance of SOEs in which the G overnment still has interests, and of other public 
bodies and so-called "executive agencies" (e.g. TANESCO).     
166. The choice of divestiture methods depends on the particular operating conditions and/or 
financial strength of the company to be divested.  The methods include:  sale of assets, sale of shares, 
joint ventures, liquidation, concessions (long-term contracts), leases and management contracts.
121  
There are no restrictions to foreign participation in the privatization process.    
167. Up until December 2009, 331 SOEs had been priva tized.  As of February 2011, 34 were in 
the process of privatization.122  During the period under review, privatization lost some momentum 
and has shown mixed results.  Whereas privatizat ion of manufacturing, ba nking, hotels, and other 
commercial activities has been mostly successful, priv atizations of utilities and infrastructure has been 
less so.  In some instances, the pr ivatized enterprises have been re verted back to public management 
or repossessed by the Government, as improvements under private management failed to materialize.  
This was the case for key infrastructure enterprises,  including Air Tanzania Company Ltd (ATCL), 
Tanzania Railways (TRL), DAWASCO (Water and Sewerage Corporation), Tanzania Telecommunications Company Ltd (TTCL), and Tan zania Electricity Supply Company (TANESCO).  
The latter has now been withdrawn from the privatization list, as have other agencies such as Tanzania Port Authority (TPA), Mbozi Maize Farm  Ltd, and Mbagala Sheet Glass Factory.  By 
contrast, the lease contract of the container terminal at Dar es Salaam Port (TICTS) is so far an 
example of a successful divestiture (Chapter IV).  
168. According to the World Bank, the impact of the privatization programme on aspects such as 
fiscal revenues and the reduction of fiscal burden were also mixed.  For example, heavy debt burdens and large retrenchment costs claimed a large share of the receipts obtained from privatization.  And 
while, overall, the divestiture programme led to a net reduction of the fiscal burden of SOEs on the 
budget, the Government is still paying important  amounts in loans and subsidies to the SOEs.
123  
Given these mixed results, the Government has ta ken a more cautious approach in re-admitting 
private investment in utilities and infrastructure.  The Public Private Partnerships Act, adopted in 
2009, and its supporting policy, is  aimed at facilitating private investment in utilities.   
169. Although the number of SOEs has been reduced significantly, they still have a major presence 
in the Tanzanian economy.  Tanzania has about 238 public enterprises, of which more than half are 
majority government-owned (Table III.5).124  The Government has a total equity of T Sh. 10.3 trillion 
in SOEs, which amounts to 30% of GDP at current prices.  Some 60% of the Government investment 
is in ten corporations, including TANESCO, Na tional Housing Corporation (NHC), Tanzania 
                                                      
120 The term SOE is used here to include all enterprises where the Government has full ownership, or 
majority or minority shares. 
121 For more details on the divestiture methods s ee http://www.chc.co.tz/Priv atisation/process.htm. 
122 United Republic of Tanzania (2010). 
123 World Bank (2010). 
124 Kabwe (2011). EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-429 
 
 
 Investment Bank, Tanzania Ports Authority (TPA), and Railway Assets Holding Company Limited 
(RAHCO).125 
Table III.5 
Tanzania: Government ownership in selected companies/institutions, 2009   
SOE Area of activity State share 
2009 (%) Status 2009 
Abood Soap Industries  Soap manufacturing 20 Joint venture 
Air Tanzania Company Ltd. Ai r services 100 Parastatal 
Arusha International Conference Centre 
(AICC) Conference services 100 Parastatal. Capital fund. 
BP (Tanzania) Ltd.  Petroleum 50 Joint venture with BP Africa Ltd. 
Carmatec  Agriculture mechanisation 100 Parastatal 
Zain/Celtel Tanzania Ltd.  Telecommunications 40 Joint venture with CELTEL International Ltd. 
(Now Zain) 
Chinese Tanzania Shipping Company Ltd.  Shipping  50 Joint venture with Chinese Government  
Datel Tanzania Limited   Telecommunications  35 Joint venture (under privatization) 
DAWASCO  Water supply and sewerage 100 Operator 
East African Cables   Cable manufacturing 29 Joint venture with E.A. Cables Co. Ltd. 
Kenya (51%), TDFL (10%) and TANESCO 
(10%) 
Friendship Textile Co. Textile manufacturing 49 Joint venture: Dleqlu Textile Dyeing and 
Printing Group Co. Ltd. 51% 
General Tyre EA Ltd. Tyres manufacturing 74 Joint venture with Continental NA(26%), 
under liquidation by CHC.  
Inflight Catering Services Co./LGS Sky Chef Airline catering services 21 Joint venture 
Kariakoo Market Corporation Traditional market 100 Parastatal 
Keko Pharmaceuticals Ltd.  Pharmaceuticals 40 Joint venture with Diocare Ltd. (60%); sale of 
Government shares in progress 
Kisarawe Bricks Company (KIBRICO) Brick factory 30 Sale of Government shares in progress 
Kilimanjaro Airport  Development Co.  Lt d. Airport services 24 Joint venture 
Kilombero Sugar Co.   Cane sugar refining 25 Joint venture with Illovo & ED & F. Mar 
(75%) 
Kiwira Coal Mines  Mining 30 Government to repossess 70% shares from 
TAN Power Resources Company Ltd.   
Mbeya Cement Co. Ltd.  Cement production 25 Joint venture 
Mbinga Coffee Curing Co. Ltd.  Coffee curing 43 Government shares proposed for sale 
Mbozi Coffee Curing Co. Ltd. Coffee curing 32 Government shares proposed for sale 
Mikumi Wildlife Lodges  Tourist accommodati on 100 Not operating. Under privatization 
Moshi Leather Industries Ltd. Leather and footwear 25 25% of shares are held by TIB on behalf of 
the Government 
Mwananchi Engineering and Construction 
Company (MECCO) Engineering and construction 
services 25 Sale of Government shares in progress
National Bank of Commerce (NBC) Ltd. Financial servi ces 30 Sale of Government shares in progress 
National Housing Corporation  Real estate  developer 100 Parastatal. Capital fund. 
National Insurance Corporation (NIC) Ltd. In surance services 100 Under restructuring. 
National Micro Finance Bank (NMB)  Micro finance 30 Sale of Government shares in progress  
New African Hotel Tourist accommodation 23 Sale of Government shares in progress 
TANALEC Ltd.  Transformers and switch gears 30 Joint venture with TRANS CENTURY Ltd of 
Kenya (70%) 
TANICA Ltd. Instant coffee 10 Joint venture. Other shares held by Unions 
TANSCAN Timber Company Ltd Timber 49 Joint venture. Other shares held by Unions 
Sale of Government shares in progress 
   Table III.5 (cont'd)
                                                      
125 Figures provided in Kabwe (2011). WT/TPR/S/271/TZA Trade Policy Review 
Page A4-430 
  
 SOE Area of activity State share 
2009 (%) Status 2009 
Tanzania Automobile Technology Centre 
(NYUMBU) Automotive engineering  100 Parastatal 
Tanzania Building Agency   Building industry 100 Accounts for year 2007/08 are still with the 
auditors 
Tanzania Development Finance Ltd.  Financial se rvices 32.1 All Government shares to be sold 
Tanzania Electric Supply Co. Ltd. 
(TANESCO)  Electricity supply 100 Parastatal.  Not for privatization  
Tanzania Fertilizer Company (TFC) Ltd. Fe rtilizer trading 100 State trading company 
Tanzania Fishing company (TAFICO)  Fishing (shrimp) 100 Not operating; repossessed by Government. 
Disposal of assets in 2008. 
Tanzania Investment Bank (TIB)  Fi nancial services  99 Parastatal 
Tanzania Petroleum Development Corporation Oil and gas exploration 100 Parastatal  
Tanzania Pharamaceutical Indutries (TPI ) Ltd.  Pharmaceuticals production 40 Joint venture with Pharamaceutical 
Investment Ltd. (60%) 
Tanzania Planting Company (TPC) Ltd.  Sugar production 25 Joint venture with Sukari Investment Co. Ltd. 
(75%) 
Tanzania Ports Authority (TPA)  Port se rvices and management 100 Parastatal 
Tanzania Postal Bank  Financial services 45.3 To be restructured  
Tanzania Posts Corporation  Postal serv ices 100 To be privatized ("specified") 
Tanzania Railways Corporation (TRC) Railway trans port  49 Repossessed by the Government in 2011  
Tanzania Standard Newspapers (TSM)  Media 100 Parastatal 
Tanzania Telecom Company Ltd. (TTCL) Telecommunications 65 Public corporation 
Tanzania Zambia Railways Authority 
(TAZARA) Railway transport 50 Joint venture with Zambian Government 
TAZAMA Pipelines Ltd  Pipelines 33 Join t venture with the Government of Zambia
TIPER Oil refining 50 Joint venture with Agip 
Twiga BankCorp Banking services 100 Parastatal 
Usafiri Dar-Es-Salaam (UDA)  Bus trans port services 49 To be privatized 
Williamson Diamond Mines  Mining 25 Join t venture with Petra Diamonds Ltd. 
Source: Tanzania, Ministry of Finance and Ec onomic Affairs, Treasury Registrar:  Statement of Government Investment 
and Public Interest as of 30 June 2009; and World Bank (2010), Implementation Completion and Results Report on 
a Credit to the URT for a Privatizati on and Private Sector  Development Project . Report No. ICR00001459.  
(iv) Competition policy and price controls 
170. The Fair Competition Act of 2003 (FCA 2003), whic h entered into force in May 2004, is the 
main legal instrument governing competition matters in Tanzania.126  It is aimed at promoting and 
protecting competition in markets and preventing unfa ir and misleading market conduct, in order to 
increase economic efficiency, promote innovation, ma ximize efficient allocation of resources, and 
protect consumers.  The FCA 2003 applies to all activities that affect Tanzanian markets.127  It allows 
for co-existence with the competition prov isions of sectoral regulatory authorities.128 
171. The FCA 2003 prohibits anticompetitive agreements  (i.e. price fixing; collective boycott by 
competitors; output restrictions between competitors ; and collusive bidding or tendering), abuse of 
market power (dominant position per se  is not prohibited), and mergers that create or strengthen a 
                                                      
126 Zanzibar has no competition legislation.  
127 The FCA 2003 does not apply to agreements that  relate to employment, agreements to ensure 
adherence to official stan dards, and actions in compliance with international treaties.         
128 These are the Energy and Water Utilities Regulat ory Authority Act of 2001 (EWURA Act);  the 
Surface and Marine Transport Regulatory Act of 2 001 (SUMATRA Act);  the Tanzania Civil Aviation 
Regulatory Act of 2003 (TCAA Act);  and the Tanzania Communications Regulatory Act of 2003 (TCRA Act). EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-431 
 
 
 position of dominance in the market.  Both in th e case of dominant position and mergers, a test of 
legality (i.e. whether they harm competition) is applied when the market shares of the relevant 
companies is greater than 35%.  Prior notification is required for mergers above  certain thresholds, as 
determined and published by the competition regulator.129  In deciding on the legality of an action, the 
competition regulator may take into account any poten tial benefits arising from it, such as greater 
efficiency in production, distribution or the alloca tion of resources;  technical or economic progress; 
or protection of the environment.  If the benefits are deemed greater than the harm to competition, a 
temporary exemption may be granted to carry out the action.  The Fair Competition Act of 2003 is 
currently being revised to include a leniency progra mme, which should facilitate cartel investigations.   
172. The Fair Competition Commission, a five-m ember collegiate body set up under the FCA 
2003, is the main body responsible for implemen ting competition law.  The Commission may launch 
an investigation to assess possible anti-competitive behaviour on its own initiative, upon request by a 
complaining party, or at the behest of the re levant Government Minister.  The Commission has 
punitive powers :  financial penalties cannot be less than 5% of the company's annual turnover, but 
not more than 10%.  The Commission lacked staff capable of carrying out its full mandate until 
mid-2007. Since then, it has investigated anti- competitive and un-notified cases, and abuse of 
dominant position involving:  beer, tobacco cigarettes,  outdoor advertising, powder soap, and dairy 
products.  Some cases have been concluded and parties found guilty of misconduct have been 
imposed penalties;  other cases await determination by the Commission.  
173. The FCA 2003 also established the Fair Compe tition Tribunal, which hears appeals against 
decisions by the Commission and by the sectoral regulatory bodies (EWURA, SUMATRA, TCAA, 
and TCRA).  The decision of the Tribunal may:  confirm, set aside, or amend the Commission's decision, or send the case, in whole or in part, back  to the Commission.  Any remedial action is stayed 
while the appeal procedure takes place.  
174. While focussing on competition, the FCA 2003 also regulates fair business practices and 
consumer protection.  It deals with mislead ing and deceptive conduct, unfair business practices, 
unconscionable conduct, implied c onditions in consumer contract s, manufacturers' obligations, 
product safety, and product information.  Adjudicatio n of these issues is in the normal courts.   
175. The EAC Protocol provides the legal basis for competition policy within the region.  
Implementation of the EAC Competition Act, adopted  in 2006, awaits the es tablishment of national 
competition laws and institutions in three of  the EAC members states (Common Report, 
Chapter III (3)(i)).   
176. The Tanzanian authorities have indicated that the Government applies reference/indicative 
prices for certain products and services, including petroleum, electricity, water, crops regulated by marketing boards, and bus and maritime transport fa res.  The rationale for setting indicative prices is 
to ensure that the economy remains competitive (espec ially where there are few suppliers), to protect 
consumers, and to prevent formation of cartels.  In the telecommunication sector, dominant operators 
must submit their tariffs for approval by the sector regulator (Chapter IV(5)(iii)).   
(v) Intellectual property rights 
177. Protection of intellectual property rights (IPRs) is not a Union matter, hence mainland 
Tanzania and Zanzibar have different IPRs legisl ation and institutions.  Nevertheless, the United 
                                                      
129 The Fair Competition Threshold for Notification of a Merger Order of 2006 set the threshold at 
T Sh 800 million (around US$550,000). WT/TPR/S/271/TZA Trade Policy Review 
Page A4-432 
  
 Republic of Tanzania, as a single entity, is responsible  for matters covered under international treaties.  
The United Republic of Tanzania is a member of  WIPO and has signed se veral WIPO conventions, 
including the Paris Convention for the Protection of  Industrial Property, the Berne Convention for the 
Protection of Literary and Artistic Works, the Ni ce Agreement on the International Classification of 
Goods and Services for the Purposes of the Regist ration of Marks, the Patent Co-operation Treaty 
(PCT), the WIPO Performance and Phonogram Tr eaty, and the WIPO Copyright Treaty (WCT).  
Tanzania is also a member of the African Regiona l Industrial Property Organization (ARIPO) and its 
protocols. 
178. The main laws governing IPRs in mainland Ta nzania are the Trade and Services Marks Act 
No. 12 of 1986 as revised in 2002, the Patent Regi stration Act No. 1 of 1987 as revised in 2002, the 
Patents Regulations of 1994, the Copyright and Neighbouring Rights Act of 1999 as revised in 2002
130, the Traditional and Alternative Medicines Ac t No. 23 of 2002, the Protection of New Plant 
Varieties Act No. 22 of 2003, the Seeds Act, the Merchandise Act of 1963, and the Fair Competition 
Act of 2003.  Aside from the Merchandise Marks Regul ations of 2008 (below), there were no major 
reforms to the IPR legal framework during the review period.  The authorities have indicated that they 
are currently developing a national IPR policy a nd reviewing all IPRs laws with a view to 
consolidating them into one piece of legislat ion, making them fully TRIPs compliant, and 
incorporating TRIPs flexibilities.  The new bill is intended to cover all IPRs, including geographical 
indications, which are not currently regulated in ma inland Tanzania.  It also envisages the creation of 
an intellectual property office.  As of June 2012, the legislative process regarding the new IPRs bill 
was in progress.   
179. In Zanzibar, the Industrial Property Act No. 4 of  2008, which entered into force in September 
2008, repealed the Patents Decree (1932) and the Trade Marks Decree (1932).  The Industrial Property Act of 2008 consolidates and codifies in a single statute the laws for the protection of trade and services marks, patents, geographical indications, industrial designs, layout designs of integrated 
circuits, and utility models.  The Zanzibar C opyright Act of 2003 remains in force.    
180. The Business Registration and Licensing Agency (BRELA), under the MIT, is the main 
agency responsible for patents and trade-marks admi nistration in mainland Tanzania.  The Copyrights 
Society of Tanzania (COSOTA), also under the MIT, is  in charge of copyright protection and, at the 
same time, is a copyright collective management or ganization.  The Plant Breeders Registrar in the 
Ministry of Agriculture is responsible for the protection of plant breeders' rights and oversees 
application of the Convention on the Protection of  New Plant Varieties (UPOV), and the Tanzania 
Seeds Agency administers IPRs for seeds.
131  In Zanzibar, the Copyright Society of Zanzibar 
(COSOZA) is responsible for the administration of  copyrights, and the body in charge of patent 
protection is the Registrar General's Office.   
(a) Trade-marks 
181. The Trade and Services Marks Act No. 12 of 1986 provides for the registration of 
trade-marks that meet the requirement of distin ctiveness for goods or services.  A mark may be a 
word, a combination of words (including personal nam es and slogans), a figure, a picture, a colour or 
                                                      
130 Implementing regulations of the Copyright and Neighbouring Rights Act of 1999 as revised in 2002 
are the Copyright and Neighbouring Rights (Production and Distribution of Sound and Audiovisual Recordings) 
Regulations of 2006, and the Copyright and Neighbouring Rights (Registration of Member and Their Works) Regulation of 2005.  
131 Other public bodies involved in IPRs protection are the Attorney General's Chambers, the police 
force, Customs, the FCC, the TBS, the TFDA, and the Commission on Science and Technology (COSTECH). EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-433 
 
 
 combination of colours, the shape of goods or packaging, or any combination of the above.  
Registration of trade-marks is granted for seven year s, and may be renewed indefinitely for ten-year 
periods.  Certification and collective marks may also  be registered.  A trade-mark registered by 
ARIPO is also protected in Tanzania.  Registration by ARIPO is for ten years. 
182. The Merchandise Marks Regulations of 2008, wh ich allowed for the implementation of the 
Merchandise Marks Act (1963), provide for streng thened provisions to fight counterfeiting and 
piracy.  For example, the regulations grant powers to the chief inspector under the Act to investigate 
counterfeit activities, initiate proceedings before  the courts, conduct searches, seize and destroy 
suspected counterfeit products, and request the Customs Commissioner to suspend release of 
suspected counterfeits.  The 2008 Regulations also authorize Customs to seize any goods imported or 
exported that are reasonably suspected to be co unterfeit or violate other IPRs.  Moreover, the 
Regulations provide a mechanism for criminal pr osecution for IPR violations and prescribe penalties 
and fines for counterfeiting offences.  The maximum fine is T Sh 50 million.       
(b) Patents 
183. Patents and utility models are protected under th e Patent Registration Act No. 1 of 1987 and 
the Patent Regulations of 1994.  An invention, whet her for a product or process, is patentable if it is 
new, involves an inventive step and is industriall y applicable.  Patents are granted for ten years, 
renewable for two terms of five years each, subject to payment of annual fees.  Protection for utility 
models is for seven years.  Since Tanzania is a part y to the PCT, it is possible to designate Tanzania in 
international patent applications filed under the PCT.  Also, a patent granted by ARIPO designating 
Tanzania qualifies for protection in Tanzania once BRELA has been notified.  In the case of 
infringement, a patent holder may initiate court pro ceedings for an injunction, damages, and other 
remedies provided for in civil law.  The legisla tion provides for three types of compulsory licences.132 
The authorities have indicated that no co mpulsory licences have been granted. 
(c) Industrial designs 
184. Tanzania does not have an industrial design regi stration system.  However, the Patents Act of 
1987 provides that the protection of industrial desi gns registered in the United Kingdom are extended 
to Tanzania during the term of design registrati on.  Also, designs registered by ARIPO designating 
Tanzania are protected for ten years.  Design protection may be renewed by ARIPO for further 
periods up to a maximum of 25 years from the date of filing.  New legislation on industrial designs is 
in the process of being prepared. 
(d) Copyrights  
185. Under the Copyright and Neighbouring Rights Act of 1999, copyright protection is granted 
for the life of the author plus 50 years.  In the case of joint authorship, protection extends through the 
life of the surviving author plus 50 years, and anonymously published works and audio-visual works 
are protected for 50 years from the date of publicatio n.  A draft for a new Copyright Act (based on the 
African Copyright Law) proposes extending protection from 50 to 70 years in all three cases.  The 
draft Act also envisages ending the conflicting du al role of COSOTA and establishing it as the 
copyright regulatory body with powers to licence pr ivate collective management organizations, such 
as the Tanzania Reproduction Rights Society (Kopitan), which is already operating.  In addition, the 
draft Act increases penalties for copyright infringement  (a minimum fine of T Sh 5 million, and at 
least three years in case of imprisonment);  grants  prosecution powers to the copyright office;  and 
                                                      
132 Part IX of the Patent Regulations of 1994. WT/TPR/S/271/TZA Trade Policy Review 
Page A4-434 
  
 provides for obligatory involvement of the police for ce in the enforcement of copyrights.  COSOTA is 
a member of the International Confederation of Societies of Authors and Composers (CISAC). 
186. There are no restrictions on parallel imports of goods and services containing any form of 
IPRs in mainland Tanzania or Zanzibar.   
(e) Enforcement 
187. Although some improvements have been made in recent years, the enforcement of IPRs laws 
continues to be a challenge both in mainland Ta nzania and Zanzibar.  In 2010, the authorities 
estimated that infringement was as high as 95% of all copyrighted works.133  The Confederation of 
Tanzanian Industries estimated that counterfeit a nd pirated goods represented about 40% of the local 
market.134  
188. Tanzania does not have a special tribunal for IPRs.  Legal enforcement is through direct 
submission to Tanzanian courts.  The High Court's Commercial Division has the authority to deal 
with intellectual property issues and to impose penalties for IPR violations.  The High Court has handed down decisions in several  cases involving trade-marks.
135  The Tanzanian Fair Competition 
Commission has taken action to fight counterfeits:  it has apprehended importers of fake products, and 
seized and destroyed counterfeit goods.136  However, the FCC's limited resources do not allow it to 
carry out effective investigations nation-wide .  The Tanzanian Food and Drug Authority has 
impounded and banned anti-malarial and other drugs considered substandard or counterfeit.  The 
Copyright and Neighbouring Rights Act (1999) allows COSOTA to institute criminal cases for copyrights infringement at the district court level.   
189. According to the authorities, the judiciary's limited knowledge of IPR issues is among the 
many factors that stand in the way of effective IPR enforcement.  In addition, the complexity of the 
legal system, high litigation costs, and insufficient remedies against IPR infringement result in few IPRs cases being taken to the courts.  Other factors identified as constraining IPR enforcement 
include:  the lack of an intellectual property polic y, limited public awareness and understanding of the 
economic value of IPR protection, low penalties fo r infringements, limited capacity of governmental 
agencies responsible for IPR enforcement, coordina tion problems, and lack of IP infrastructure and 
financial resources.
137  Tanzania has notified to the WTO its priority needs for technical assistance 
and financial cooperation to im plement the TRIPS Agreement.138   
190. The EAC Treaty and the EAC Common Market Protocol provide the framework for regional 
cooperation and harmonization of IPRs polices.  Acco rdingly, a draft EAC Regional IP Protocol and 
Policy on the utilization of public health-relate d WTO TRIPS flexibilities, and a draft EAC Anti-
Counterfeiting Bill were being finalized at the time of writing this report (Common Report, 
Chapter III(3)(ii)). 
                                                      
133 WTO document IP/C/W/552, 21 October 2010, and information provided by the Tanzanian 
authorities. 
134 Managing Intellectual Property online information, "Tanzania's IP Changes Good for Business", 
1 October 2009.  Viewed at:  http://www.managingip. com/Article/2306571/Tanzania s-IP-changes-are-good-for-
business [March 2012]. 
135 Commercial cases:  No. 31 of 2004 and No. 8 of 2008, and Commercial Application No. 29 of 2011.  
136 According to the Director of Compliance of th e FCC, between May 2007 and March 2010, the FCC 
destroyed counterfeit goods worth more than T Sh. 3 billion.  AllAfrica.com online information, "Tanzania:  
U.S. Hails Region's Fight against Counterfeited Trade", 10 March 2010.  Viewed at:  http://allafrica.com/stories/printable/201003100999.html [March 2012]. 
137 United Republic of Tanzania and WIPO (2012). 
138 WTO document IP/C/W/552, 21 October 2010. EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-435 
 
 
 IV. TRADE POLICIES BY SECTOR 
(1) I NTRODUCTION  
191. Sectoral policies in mainland Tanzania and Zanzibar differ in, inter alia , agriculture, energy, 
telecommunications, and tourism. Agriculture rema ins a key sector of the Tanzanian economy.  
Currently, Tanzania is implementing a 15-year agricultural development programme aimed at 
increasing productivity and farm incomes through greater  private-sector participation.  Average tariff 
protection for agriculture (ISIC, division 1) is 17. 7%.  Commodity boards are still operating, although 
there has been some restructuring since 2006.  Tanzania maintains several support measures for 
agriculture, including input subsidies, concessional credit, and a warehousing system.  It also 
maintains price stabilization mechanisms for certain  food crops, a strategic grains reserve, and 
temporary export restrictions on maize for food secur ity reasons.  Exports of raw fish are banned in 
order to encourage local processing.   
192. The mining industry continued to boom during the review period, with the value of exports 
benefiting from rising international gold prices.  Th e sector underwent legal reform, and royalties and 
taxes were increased in an attempt to maximize th e sector's contribution to the economy.  MFN import 
tariffs in mining and quarrying products (ISIC, divi sion 2) average 4.8%.  During the review period, 
institutional and legal reforms took place in the en ergy sector, designed to ensure availability and 
affordability of energy supplies, and foster priv ate-sector participation.  Nevertheless, power 
shortages and periodic failures, as well as relatively hi gh electricity tariffs remain a key constraint for 
the development of economic activities.   
193. Tanzania's manufacturing sector remains small and is dominated by agri-processing activities.  
An integrated industrial development strategy, announ ced in 2011, aims at diversifying the sector and 
fostering growth and value addition by, inter alia , developing industrial cl usters and large-scale 
special economic zones.  Targeted subsectors include  fertilizers and chemicals, iron and steel, textiles, 
agri-processing, and light machinery.  Severa l manufacturing industries benefit from incentive 
programmes both on the mainland and Zanzibar.  Manufactured goods (ISIC, division 3) attract an 
average tariff of 12.5%, with rates ranging up  to 100% on certain food products (e.g. sugar). 
194. The services sector grew steadily during 2005-10.  Tourism remains a key subsector, 
generating 28% of foreign exchange earnings and some 11% of total employment, while 
communications is the most dynamic, with an averag e growth rate of 21%.  During the review period, 
Tanzania undertook reforms aimed at increasing effi ciency in the services sector.  In 2006, the 
telecommunications regulatory body introduced a new licensing regime, under which many new 
players have entered the market, making it one of the most competitive areas of the economy.  The 
banking and insurance regulatory frameworks were revi sed with a view to strengthening and bringing 
them in line with international best practices.  A number of development projects and increasing funds 
have been devoted to improving and expanding the transport network.  However, more efforts are 
needed to improve the country's overall infrastru cture and its capacity to deliver good quality and 
affordable services.  Further liberalization of services should enhance the economy's efficiency and 
competitiveness.  Tanzania's GATS commitments c over only hotels of four-stars and above.   
(2) A GRICULTURE AND RELATED ACTIVITIES  
(i) Main features 
195. Agriculture is one of the key sectors of the Ta nzanian economy in terms of its contribution to 
GDP and export earnings (Chapter I).  Moreover, agriculture accounts for 75% of rural household WT/TPR/S/271/TZA Trade Policy Review 
Page A4-436 
  
 incomes and has linkages with the rest of the economy, providing inputs and raw materials for 
agri-processing activities and other industries.  The sector  is, therefore, at the core of national-growth 
and poverty-reduction strategies.  Nevertheless, with average annual growth rates of 4% during 
2005-10, the agriculture sector has not kept pace with  the growth trajectory of the economy nor has it 
had a noticeable impact on poverty reduction.  More over, agriculture's share in foreign exchange 
earnings has declined, as other economic sectors, such as mining and tourism, have increased their 
participation.  FDI inflows into agricultu re represent only 2.1% of the total.  
196. Tanzania has 44 million hectares of arable la nd (Table IV.1), of which only 21% is under 
cultivation, predominantly by subs istence farmers cultivating farms of  between 0.9 and 3.0 hectares, 
using traditional agricultural methods.139  Production is highly dependent on rainfall and only 2%-3% 
of arable land is irrigated; use of fertilizer and improved seeds remain s limited.  Productivity is low 
and declining, and farmers' yields re present only 20%-30% of potential yields.140   
Table IV.1 
Main features of the agric ulture sector, October 2011 
(Million ha) 
Total land 94.5 
Arable land 44.0 
Cultivated land 9.5 
Area suitable for irrigation 29.4 
Planted area under irrigation 0.2 
Area of high development potential 2.3 
Area of medium development potential 4.8 
Land under medium- and large-scale farming 1.5 
Range land 50.0 
Land under livestock 26.0 
Tsetse infested area 24.0 
Total land allocated to smallholders  11.9 
Source:  The United Republic of Tanzania, Ministry of  Agriculture, Food Security and Cooperatives, Agricultural Policy 
Framework . Viewed at http:/ /www.kilimo.go.tz/help.htm [October 2011]. 
197. Overall, Tanzania is self-sufficient in food141, but there are significant differences in food 
security among regions, and problems in distributing foodstuffs from surplus to deficit areas often 
arise due to inadequate infrastructure.  When th ere are good rainfall conditions , Tanzania exports food 
surpluses (grains and cereals) to ne ighbouring countries.  In poor seasons, the country as a whole is 
vulnerable to food shortages, and imports of certain food crops may be required. 
198. Some of the main constraints on the growth of the agriculture sector include low use of 
technology, excessive reliance on rain-fed agriculture , inadequate storage facilities, limited access to 
inputs and finance, deficient transportation and ma rketing infrastructure, high production costs and 
taxes, insufficient extension services, and unsecured land property rights.  
199. Foreigners may not own land in Tanzania ( section 20 of the Land Act No. 4 of 1999).   
However, land may be leased to non-citizens for investment purposes under the Tanzanian Investment 
Act.   
                                                      
139 Only 10% of the arable la nd is ploughed by tractor. 
140 Sharma (2011). 
141 The national food self-sufficiency ratio fluctuated between 88% in 2003/04 and 112% in 2009/10 
(MAFC, 2010). EAC-Tanzania WT/TPR/S/271/TZA 
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 (ii) Institutional and policy framework 
200. The 2001 Agricultural Sector Development St rategy (ASDS) remains the main policy 
framework for agriculture.  Its overall objective is to achieve sustained sectoral growth and reduce 
rural poverty, in line with the National Strate gy for Growth and Poverty Reduction (NSGPR).142  The 
ASDS's main strategies are:  transforming the sector from subsistence to commercial agriculture; 
increasing private-sector participation, with the go vernment providing an enabling environment for 
commercial activities; deregulating the delivery of support services with a delineation of public and 
private roles; improving the functioning of output and input markets; strengthening the institutional framework; and decentralizing implementation to the local level.   
201. The ASDS is implemented through the Ag ricultural Sector Development Programme 
(ASDP), a sector-wide, 15-year investment progr amme launched in 2006.  The first phase of the 
ASDP (2006-12) is being implemented, while its second phase is being developed.  The main 
objective of the ASDP is to increase productivity, profitability and farm incomes by:  (i) improving farmers' access to, and use of, agricultural kn owledge, technologies, marketing systems and 
infrastructure;  and (ii) promoting private invest ment in agriculture, based on an improved regulatory 
and policy environment.
143  The ASDP comprises a national and a local sub-programme, providing 
policies and actions for agricultural support at each le vel, as well as measures on cross-sectoral issues 
(i.e. managing links between agriculture and other sectors).   
202. An evaluation commissioned found mixed results in the fifth year of ASDP's implementation.  
The programme succeeded in introducing a sector-wid e approach in agriculture, streamlined planning 
and reporting systems, and achieved some increases in crop production (rice and maize).  However, 
the adoption of improved technologies and productivity  gains remained limited, and while the area 
under irrigation had increased, the productivity of irri gated land was still low due to insufficient use of 
improved agricultural inputs.144  The move towards greater participation of the private sector has been 
slow.  Most significantly, there has been little change  in agricultural growth rates and in rural poverty 
reduction.145  The next phase of the ASDP is to address such shortcomings. 
203. Five ministries are involved in the implementation of the ASDP:  Agriculture, Food Security 
and Cooperatives (MAFC); Livestock Developmen t and Fisheries (MLF); Water and Irrigation 
(MWI); Industry and Trade (MIT); and the Pr ime Ministers' Office/Ministry of Regional 
Administration Local Government (PO-MRLAG).  Local government authorities (LGAs) are responsible for coordinating progra mme implementation at the district level.  An ASDP basket fund 
has been established with resources from the government and donor partne rs;  75% of funds are 
allocated to the Local Level Sub-programme and the rest is used by the National Level Sub-
programme.  Funding has been channelled mainly to irrigation programmes, agricultural extension 
services, and research and training.  
                                                      
142 The NSGPR is commonly known as MKUKUTA.  Th e NSGPR set a target of  10% annual growth 
for the agriculture sector.  
143 United Republic of Tanzania (undated). 
144 The area with irrigation infrastructure increased from 264,388 ha to 399,775 ha in 2006/07-2009/10. 
145 "Evaluation of the performance and Achievemen ts of the Agricultural Sector Development 
Programme (ASDP)", 12 June 2011.  Viewed at:  
http://www.kilimo.go.tz/attached% 20web%20pages/ASDP/Documents/ ASDP%20FINAL %20DRAFT.doc 
[8 November 2011]. WT/TPR/S/271/TZA Trade Policy Review 
Page A4-438 
  
 204. The Kilimo Kwanza (Agriculture First), a high-le vel initiative launched in 2009, is expected 
to bring about green revolution to Tanzan ia and boost private-sector participation.146  Kilimo Kwanza 
envisages increased government intervention in food markets, for instance, by establishing production 
arrangements for cash crops and food price stabilizati on mechanisms, and by strengthening the role of 
the National Food Reserve Agency, which manages the Strategic Grains Reserve (SGR).  In 
particular, the initiative calls for maintaining food stocks  for 6 to 12 months to ensure market stability.  
Other proposed actions for the development of  agri-processing include measures to discourage 
exports of raw materials;  implementing a "Buy  Tanzanian" campaign starting with government 
procurement; providing incentives and other support to local agri-processors; and applying strict 
measures to curb the dumping of low-quality processed agri-products.147  Some of these measures, 
such as input subsidies (see below) and measures to  encourage local processing (e.g. of raw hides and 
skins) are already being implemented.   
205. The Zanzibar Agricultural Tran sformation Initiative (ATI) 2010-2020 aims to make Zanzibar 
an agriculture-driven economy, self-sufficient in f ood, and a major agricultural exporter based on its 
comparative advantage in the production of cloves,  tropical fruits, spices, and essential oils.  ATI's 
specific objectives are to increase public and priv ate investment in agriculture; enhance the 
productivity and competitiveness of the sector; promot e export diversification; create employment and 
wealth; and deepen linkages with other growth sectors of the economy.148  The ATI is in line with the 
Zanzibar Development Vision 2020 and Zanzibar's St rategic Plan for the Development of Agriculture 
(2005-10).149  
206. Under the CET, the average applied MFN ta riff on agricultural goods (WTO definition) 
remains relatively high at 20.2%, with rates ra nging from zero to 100%.  Using the ISIC (Rev. 2) 
sectorial definition, agriculture (i ncluding hunting, forestry and fi shing) has an average tariff of 
17.7%, with rates ranging from zero to 75%.  Tan zania's average bound tariff for agricultural products 
is 120%.   
207. Tanzania applies an export tax on raw cashew nut s of either 15% of the f.o.b. value or 
US$160/tonne, and a cess of 40% of the f.o.b. va lue on raw hides and skins, to encourage local 
processing.  There are local taxes on some cereal s as well as agricultural services fees.  For food 
security reasons, temporary restrictions may apply on exports of certain crops,  such as maize, rice, 
and beans; while exports of unprocessed fish are banned. 
208. Tanzania maintains several support measures for agriculture, including input subsidies, 
concessional credit, a warehousing system, and ex tension services.  In 2003/04 the Government 
restored subsidies for the transport of fertilizers150, and in 2005 for maize and sorghum seeds.  Since 
2008, input subsidies have been delivered throug h the National Agricultural Input Voucher Scheme 
(NAIVS).  The scheme provides vouchers for a 50% subsidy on a package of fertilizers and improved 
seeds for maize and rice growers in high potential ar eas.  Inputs are distributed through private 
supplier networks, hence promoting private particip ation in the market.  The Fertilizers Act (2009) 
established the Tanzania Fertilizer Regulatory Aut hority, whose responsibilities include registering 
                                                      
146 The initiative originates from the Tanzania National Business Council, the top consultative body 
between the private and public sectors.   
147 "Ten Pillars of Kilimo Kwanza (Impl ementation Framework)". Viewed at: 
http://www.tzonline.org/pdf/tenpillarsofkilimokwanza.pdf [8 November 2011].  See also Sharma (2011). 
148 See Ministry of Agriculture and National Resources Zanzibar online information.  Viewed at: 
http://www.kilimoznz.or.tz/images/Agri ctransform/Agrictransform.pdf. 
149 On the Strategic Plan for the Devel opment of Agriculture see WTO (2006). 
150 General fertilizer subsidies was removed in the early 1990s as part of liberalization reforms. EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-439 
 
 
 and licensing all fertilizer suppliers; issuing pe rmits for import and export of fertilizers; and 
implementing policies and programmes to develop th e industry.  The scope of the NAIVS has been 
expanded since its inception to crops such as sor ghum, sunflower, cotton, cashew nuts, coffee, and 
tea.  The amount of fertilizer sold through the NAIVS increased from 108,703 tonnes in 2006/07 to 
141,050 tonnes in 2009/10, but supply is s till at around 60% of what is required.151  Overall, fertilizer 
use remains very low (at 9-10 kg per ha) and use of improved seed represents only 7% of the needs.152  
On the other hand, input subsidies are quite costly.  In 2009, the Government borrowed US$144 million from the World Bank/IDA to expand the schem e, and disbursed a similar amount from its own 
budget.
153  
209.  The Agricultural Inputs Trust Fund (AGITF) provides smallholder farmers and agri-input 
dealers/stockers with loans at concessional rates be tween 6% and 8% (market rates are usually above 
20%) for the purchase of inputs and equipment (e.g. tr actors, power tillers, etc.).  This is done in 
collaboration with local government authorities a nd micro-finance institutions.  In 2009/10, the 
AGITF provided loans worth T Sh. 7.42 billion.154  Although availability of small farm loans has 
increased through savings and credit cooperative organizations (SACCOs) and other credit 
associations, access to credit and financial services is still a serious constraint for many farmers.  The 
2004 Land Act (Amendment) allowed for land to be  used as collateral, however commercial banks 
remain reluctant to grant loans to  agriculture as it is seen as a relatively risky sector.  Moreover, land 
titles are required to secure a loan, but the formaliz ation of property rights has been slow and only a 
small percentage of land is registered.  Hence, in formal lending institutions, which tend to have higher 
interest rates, remain the major source of farm credit. 
210. In 2007, the Government introduced the warehou se receipt system (WRS) in an effort to 
ensure fair and stable market c onditions and liquidity for farmers, by enabling them to store their 
produce in warehouses and sell it at a later stage when prices are higher.  The scheme is implemented either through primary cooperatives, farmers' organi zations or SACCOs.  These pay farmers upfront a 
percentage of the price (50% or 70%), less the pr ice of the subsidized inputs for the next season.  
After storage and sale at auction by the warehous e manager, the farmer is paid the remaining 
percentage plus any bonus (less interest and admini stration costs).  The system has been applied for 
cashew nuts and rice.  A recent study found that the WRS was catalytic in improving marketing, 
production, and productivity of farm  products, farmers' confidence, stability of producer prices, and 
technological update, as well as reducing the anti-compe titive behaviour of large buyers.  It has been 
suggested that the system should be extended to other crops.
155     
211. In general, agriculture is receiving increased attention and funding, and some improvements 
have been made in research and extension servi ces. A programme to train additional agriculture 
extension officers was put in place in 2009, but there are still only a fraction of what is required; most 
training has concentrated on crops and livestock, but training on marketing and business remains 
weak.156  Overall, extension servi ces fall short of growing demand.157    
                                                      
151 Ministry of Finance and Economic Affairs (2010). 
152 Msuya and Isinika (2011). 
153 Sharma (2011). 
154 MAFC (2010). 
155 Mashindano et al. (2011).   
156 MAFC (2010). 
157 According to a recent study, 34% of households receive extension services  for crop pr oduction and 
about 15% receive services for livestock production (Mashindano et al. , 2001).   WT/TPR/S/271/TZA Trade Policy Review 
Page A4-440 
  
 212. In Zanzibar, support for farmers includes provisi on of cheaper agricultu ral inputs (fertilizers 
and seeds), reduced-cost tractors for land prepar ation, and agricultural extension services. 
(iii) Selected products  
(a) Crops 213. Tanzania's traditional cash crops are coffee, cash ew nuts, tobacco, cotton, sugar, tea, sisal, 
and pyrethrum.  Their share in total exports has d eclined in recent years, and their production has 
fluctuated significantly with a number of instances of  negative growth (Table IV.2).  By contrast, 
output of non-traditional export crops, such as hortic ulture and floriculture products, oilseeds, and 
spices has expanded rapidly in recent years.  The main food crop is maize, the staple food in most of 
the country; other food crops include cassava, sweet potatoes, banana, paddy rice, sorghum, millet, 
and beans.   
214. Zanzibar's main crop is cloves, which accounts fo r over a quarter of the Island's merchandise 
exports.  The government-owned Zanzibar State Tr ading Corporation (ZSTC) is by law the sole 
exporter of cloves and clove pr oducts.  ZSTC provides financial support for the domestic purchase 
and distribution of clove tree seedlings.  Other importa nt crops in Zanzibar are coconuts, spices, rice, 
cassava, bananas, sweet potatoes and vegetables. 
215. In mainland Tanzania there is a commodity bo ard for each of the eight traditional cash crops 
(coffee, cashew nuts, cotton, sugar, tobacco, tea,  sisal, and pyrethrum).  Among other functions, the 
boards regulate products, inspect their quality, announ ce indicative prices (i.e. minimum farm prices), 
issue import and export permits, and collect and disseminate statistics.
158  In the past, commodity 
boards have been criticized for distorting pri ces and markets to the detriment of farmers,159 as well as 
for applying restrictive buying rules and increasing transaction costs.160  To address such concerns, the 
Government has taken measures to rationalize the rol es, functions and funding of the crop boards.  In 
July 2006, it abolished the 2% levy on crop exports  applied by the boards, as well as the licence fees 
and obligatory contributions to crop development f unds for research, training, and inputs.  These 
changes were formalized through amendments to legislation in 2009, which also included a new 
definition of the boards' regulatory functions, now encompassing the protection of farmers' interest 
against syndicates of buyers, and of the stakeholde rs' functions and their funding.  New provisions 
also allow for contract farming between farmers a nd buyers, processors or bankers, and for the boards' 
monitoring of contract implementation.161 
216. Heavy taxation (estimated at about 20% of the sal e prices) has been identified as an additional 
constraint on export crops.  Local taxes vary by  district creating uneven incentives, and are often 
collected as a cess on volume, thus resulting in higher  per unit/price rates in low-price years.  The 
Prime Minister's Office has issued  a directive that local cess should not exceed 5%, however local 
taxes remain high, are, apparently, often renamed,  and local authorities retain the power to introduce 
new levies.  High taxes result in negative nomin al rates of protection and discourage production.162    
                                                      
158 WTO (2006). 
159 Integrated Framework (2005).  
160 Rutabanzibwa (2006). 
161 Crops Laws (Miscellaneous Amendments) Act, No. 20 of 2009, passed on 31 October 2009. 
162 Sharma (2011). EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-441 
 
 
 Table IV.2 
Selected food crop production in Tanzania, 2005-10 
('000 tonnes) 
Crop type 2005 2006 2007 2008 2009 2010 
Food crops       
Maize 3,219 3,423 3,302 3,556 3,326 4,475 
Cassava 5,539 6,158 5,199 5,392 5,916 4,392 
Sweet potatoes 2,793 4,189 3,965 4,138 3,729      .. 
Banana 2,972 3,507 3,083 2,947 3,219 2,925 
Paddy 1,168 1,239 1,342 1,346 1,334 1,105 
Sorghum    935    712    971    861    709    789 
Wheat    102     110       83      92        95       97 
Cash crops        
Seed cotton     378    131     131     201     369     268 
Green tea leaves    133     123     159    148     142     151 
Cashew nuts      90       88      91      98      49     119 
Tobacco       57      51      51      55     163      94 
Sisal fibre       28      31      33      34      26      42 
Coffee      34      46      55      44      69      35 
.. Not available. 
Source:  National Bureau of Statistics (2011), CountrySTAT (Food & Agri culture Statistics).  Viewed at: 
http://www.countrystat.org/tza/cont/incTables/pageid/ 8_mega/en; and National Bureau of Statistics (2011), 
Tanzania in Figures 2010.   Viewed at: http://www.nbs.go. tz/pdf/Tanzania_in_Figures2010.pdf. 
Cashew nuts  
217. Cashew nuts exports showed an increasing trend during the period under review.  They 
overtook coffee to become Tanzania's main export crop in 2010 (Table IV.3).  Production of cashew 
nuts fluctuated over the period, owing in part to inadequate processing capacity.  Nevertheless, output 
more than doubled in 2010 to 119,000 tonnes (Table IV.2).  Around 98% of the production is on small-scale farms, providing income for some 250, 000 farmers.  Processing capacity has expanded in 
recent years but remains insufficient and out-dated.  Small-scale processing techniques fall short of ensuring consistent high quality produce for export, often resulting in international buyers rejecting 
the nuts.  Most production is exported in raw form (mainly to India). 
Table IV.3 
Export value of crops in Tanzania, 2005-10  
('000 U.S. dollars) 
Crop type 2005 2006 2007 2008 2009 2010 
Cashew nuts  46,959 50,608   41,284   69,374   90,225 125,144 
Coffee 79,460 75,094 116,278 104,899 115,196 117,300 
Cotton 68,839 45,933   40,409   80,899    89,040    72,444 
Tea 26,677 33,099   39,748   42,545    68,140    49,214 
Wheat flour      846   1,123        367        647    17,225    35,965 
Rice milled    5,000   7,271     1,186     9,820      7,673    10,387 
Sisal    8,309   7,577     6,337    15,691      8,550      8,182 
Cloves    8,535    8,050     8,621    13,524     14,314      8,142 
Other cereals        10        25          18            8     29,954      4,099 
Source:  National Bureau of Statistics (2011), CountrySTAT (Food & Agri culture Statistics).  Viewed at: 
http://www.countrystat.org/tza/co nt/incTables/pageid/8_mega/en. WT/TPR/S/271/TZA Trade Policy Review 
Page A4-442 
  
 218. The Cashewnut Industry Act (No. 18 of 2009)163 established the Cashewnut Board of 
Tanzania (CBT) as a corporate body responsible  for regulating the cashew sector.  Among other 
functions, the CBT advises the Government on polic ies and strategies for the development of the 
cashew industry; regulates and controls the quality  of cashew nuts, kernels, and cashew nut by-
products; and implements regulations in respect of farming, marketing, processing, transportation, and 
storage.  The CBT is also responsible for maintain ing a register of cashew nut growers and dealers, 
and for granting licences for buying, processing, and exporting cashew nuts.   
219. The price of raw cashew nuts is set by interna tional buyers in the Tanzanian market, whereas 
the price of the processed nuts is set through global competition for various grades.  Farmers sell their 
produce to primary cooperatives, which collect the nu ts from their members and sell them to buyers.  
The price is negotiated between fa rmers' cooperatives and buyers on the basis of the indicative price 
(minimum producer price) announced by the CBT at the beginning of each buying season.164   
220. The 2010/11 budget raised the export levy on raw cashew nuts from 10% to 15% of the f.o.b. 
value or US$160/tonnes, whichever is higher, in order to discourage the export of raw nuts and 
promote local value addition.  District and other levies are also collected.165  On the other hand, 
cashew nut growers are eligible for subsidized  fertilizers and improved seeds under the NAIVS 
voucher system.  In addition, since 2007, cashew fa rmers in some growing districts benefit from the 
WRS system, which enables them to store their pr oduce in warehouses and sell it at a later stage when 
prices are more attractive (section (ii) above).   Under the CET, imports of raw cashew nuts are 
subject to a 25% tariff.    
Coffee 
221. Coffee remains one of Tanzania's most impor tant export crops, reaching US$117.3 million in 
export earnings in 2010 (Table IV.3).  However, its  share in total merchandise exports declined from 
4.7% in 2005 to 3.0% in 2011 (Table AI.1).  Co ffee is grown predominantly  by small-scale farmers 
(90%), and an estimated 2.1 million people derive their livelihoods from its cultivation.166  Tanzania's 
coffee harvest in 2009/10 was 63% Arabica and 37 % Robusta (in volume terms);  Arabica fetched 
almost double the price of Robusta on world markets.   Main export markets for coffee include Japan, 
Germany, Belgium, Italy, the Netherlands, Saudi Arabia, Russia, Australia, and Canada.  Under the 
CET, a tariff of 25% is applied on imports of  coffee, and tariffs between 20% and 25% on coffee 
products (e.g. extracts and essences).  
222. Tanzania is the fourth-largest producer of coff ee in Africa.  Over the review period, coffee 
production showed significant fluctuations, reachi ng a peak of 69,000 tonnes in 2009/10 but only 
35,000 tonnes in 2010/11 (Table IV.2).  About 93% of coffee production is exported.  The government-run Tanzania Coffee Board (TCB) regul ates all coffee industry activities, controls 
standards and quality, and is responsible for licensi ng all operators (including exporters) involved in 
                                                      
163 The Cashew Industry Act 2009 repealed the Tanzania Cashewnut Marketing Board Act of 1984. 
164 The minimum price is calculated on the basis of the raw cashew nut prices prevailing in various 
markets (e.g. India and Indonesia).  The agreed price must ensure farmers at least 60% of the f.o.b. price for raw 
cashew nuts. Once the minimum price has been set, actual market prices are set through competition between buyers.  If there is a wide fluctuation between the mark et and the minimum prices, fa rmers and buyers meet to 
review the situation and set another price agreeable to  both parties but not below 60% of the f.o.b. price. 
165 These are:  warehouse operator contribution (T Sh 21 per kg); cooperative union contribution 
(T Sh 21 per kg); and primary society contribution (T Sh 50 per kg).   
166 East and Southern Africa Agribusiness Network online information.  Viewed at: 
http://ntwk.esaanet.com/index.php?option=com_content& view=article&id=258:coffee.  [14 November 2011]. EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-443 
 
 
 the business.167  The Moshi Coffee Auction, managed by the TCB, remains the major channel for 
selling Tanzanian coffee to the global market;  it handled 65% of export sales in 2011/12, while the 
remaining 35% were direct exports.168 
223. Direct exports are permitted only for top quality coffees (Premium green coffee) that meet the 
criteria set by the TCB .  Cooperative societies,  farmers associations, individual farmers, and 
companies that have entered into farming contracts with farmers may qualify as direct coffee exporters;  they must obtain an export permit and a quality certificate for every lot to be exported.  
Most clean coffee for export is still sold through auc tions carried out twice a month at the head office 
of the TCB in Moshi (Kilimanjaro region); only licensed coffee exporters may participate as 
bidders.
169  In the internal market, coffee is bought from farmers at designated posts.  Farmers are free 
to sell their coffee in cherry or parchment to an y licensed coffee buyer.  The buyer must send any 
parchment and/or cherry to a licensed coffee-pr ocessing factory and notify the TCB.  Prices are 
negotiated between farmers and coffee buyers. 
Maize 
224. Maize is Tanzania's main staple food. It is pr edominantly grown by sma llholders and is highly 
dependent on rainfall.  Changing weather cond itions and supply constr aints result in seasonal 
surpluses and deficits, and may lead to food shorta ges in some areas.  In 2009/10, maize production 
amounted to 4.4 million tonnes, the largest harvest during the review period (Table IV.2). 
225. During the harvest season, farmers sell maize directly  to traders, either at the farm level or at 
the village market.  Farmers' returns are low ow ing to high transactions costs and their lack of 
bargaining power.  This is compounded by insuffi cient price information, inadequate marketing 
infrastructure, and the lack of standardized weight s and measures facilities.   Traders transport maize 
to main urban markets and/or deficit areas within the country, or sell it to neighbouring countries often at more attractive prices.   
226. There are no formal restrictions on exports of maize.  However, the Government may apply 
temporary export-bans to respond to emergency food shortages, in which case it must notify the 
measure to the EAC Council of Ministers.
170  In practice, exports of maize are allowed only when 
food security has been ensured in all regions of Ta nzania, and since there ar e frequent food shortages 
in certain regions of the country, exports of ma ize are subject to export bans on a regular basis.171  
This keeps domestic prices low, increases pri ce volatility between harvesting and planting seasons, 
and discourages local producers by precluding them from taking advantage of better prices offered in 
neighbouring countries.  However, as porous borders  make export bans difficult to enforce, cross-
border trade is reported to have taken place through unofficial routes.172   
227. Tanzania maintains a strategic grain reserve managed by the National Food Reserve Agency 
(NFRA) under the MAFC.  Its objectives are to stabili ze grain prices, supply food in emergencies, and 
advise the government on food security policy. The NFRA purchases grains (mostly maize) in the 
                                                      
167 According to the Coffee Industry Regulation of 2003, all people involved in the marketing chain 
must register with the TCB and obtain a licence.   
168 Information provided by the Tanzania Coffee Board. 
169 Coffee is traded in U.S. dollars.  Prior to the au ction session, the TCB sets a "reserve price" for each 
lot, based on expected prices in London and New York.  Bids are made orally until the highest bidder is found.  
170 Article 19 of the EAC Customs Union Protocol. 
171 Economic and Social Research Foundation (2010).    
172 Economic and Social Research Foundation (2010). WT/TPR/S/271/TZA Trade Policy Review 
Page A4-444 
  
 market on the basis of forecast national food requirement s, with a view to maintaining stocks for three 
months' consumption.  It has been argued that due  to the relatively small scale of its purchases, the 
NFRA's intervention has not had a noticeable impact in stabilizing grain prices.173  The Minister of 
Agriculture sets minimum prices for maize in order to protect smallholder farmers' income.     
228. Imports of maize (from outside the EAC market) require an import permit from the MAFC.  
To obtain an import permit, importers must have a tr ading licence and be registered with the Tanzania 
Revenue Authority.  Maize is a sensitive product un der the EAC's tariff and is subject to a common 
50% import duty to protect local producers.  Howeve r, in order to address food shortages, in recent 
years the Tanzanian Government has waived impor t duties on maize temporarily, in accordance with 
the provisions of the EAC Customs Union Protocol.  Maize growers in high-potential areas benefit 
from subsidies for fertilizers and improved seeds under the NAIVS scheme (section (ii) above).  
229. The Cereals and Other Produce Act (No. 19) of  2009 provides for the establishment of the 
Cereals and Other Produce Board as a corporate bod y for the promotion and development of edible 
grains (maize, oat, wheat, rice, millet and sor ghum). The Board has been given wide commercial 
functions, including purchasing, selling, importing,  exporting, processing, and providing warehousing 
of cereals.  The Act also provides for the registra tion of cereals growers and dealers with the Board 
and for the licensing of all operators involved in  the commercialization of cereals, as well as rules 
governing contract farming by registered farmers.  According to the authorities, the main objective of 
the Board is to provide coordination and linkages between farmers and the market.  At the time of 
writing this report, the Board had not yet been established.    
(b) Livestock  
230. The livestock sector grew at an average a nnual rate of 2.9% between 2005 and 2010174, below 
the target of 9% set by the national strategy for gr owth and poverty reduction.   Nonetheless, Tanzania 
is one of Africa's largest cattle producers and liv estock keeping a key agricultural activity, providing 
the livelihood of an estimated 1.7 million househol ds.  Most smallholder farmers keep a small 
inventory of livestock.   
231. Tanzania has 50 million hectares of range land,  of which only half is used for livestock 
farming, mainly due to tsetse fly infestation.  Three livestock production systems are commonly distinguished in the range land areas: pastoralis m, commercial ranching, and agri-pastoralism.  
Pastoralism, mostly for livestock subsistence, is concentrated in the northern regions, where climatic 
and soil conditions are not suitable for crop producti on.  Most livestock keeping households have a 
stock of less than ten head.  Commercial ranching accounts for about 2% of the total cattle herd and 
7% of the milk marketed, and is practiced ma inly by the state-run National Ranching Company 
(NARCO).  Agri-pastoralism combines livestock keep ing with crop cultivation; it is practised in the 
low rainfall areas of the western and central re gions, along with shifting cultivation of sorghum.
175  
232. Livestock production increased slightly over the review period.  In 2009, there were 
19.1 million cattle, 13.6 million goats, and 3.6 milli on sheep;  poultry and pig numbers increased 
                                                      
173 Minot (2010). 
174 National Bureau of Statistics (2011). 
175 FAO (2005). EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-445 
 
 
 faster, reaching 56 million and 1.5 million, respectively.176  Total meat production was 
422,230 tonnes, and milk production was 1.6 billion litres.177 
233. Under the CET, imports of live animal are subj ect to tariffs ranging from 0 to 25%, with an 
average tariff of 18.3%.  A 25% tariff applies to all imports of meat and edible offal.  Dairy products 
are in the sensitive products category and are subject to import duties of up to 60%.  In addition, SPS 
measures are maintained on live animal and animal products (Chapter III (2) (vii) (c)).  Tanzania's 
exports of livestock products, mostly hides and skins,  peaked at over T Sh 20 billion in 2007/08, but 
decreased sharply to just above T Sh 10 billion in 2008/09.178  An export tax of 90% on the f.o.b. 
value or T Sh 900/kg, whichever is higher, is applie d on exports of raw hides and skins, with the aim 
of encouraging local processing and value added.   
234. The Ministry of Livestock Development and Fisheries is responsible for regulating and 
coordinating the livestock industry.  Agencies under the Ministry's remit include veterinary 
laboratories, science organizations, and industry trad e groups.  Reflecting the fundamental ideas of the 
ASDS, a new National Livestock Policy (NLP) w as launched in 2006, aimed at promoting the 
development of the sector in order to increase livest ock keepers' income, atta in self-sufficiency in 
food production of animal origin, and raise livestocks' contribution to GDP.179  The Livestock Sector 
Development Strategy to implement the NLP was comple ted at the end of 2010.  In addition, several 
laws were enacted during the reviewed period, incl uding the Meat Industry Act (No. 10 of 2006), the 
Hides, Skins and Leather Trade Act (No. 18 of 20 08), the Animal Welfare Act (No. 19 of 2008) and 
the Livestock Identification, Registration and Traceab ility Act (No. 12 of 2010 ).  The latter created a 
national livestock identification and registration system with the purpose of controlling animal 
diseases and livestock theft, enhancing food safet y, regulating the movement of livestock, and 
improving livestock products and their access to markets. 
235. Eradicating livestock diseases that adversely aff ect access to external markets, remains a 
major challenge for Tanzania's livestock industry.180  Currently, most production is for the domestic 
market.  Other major challenges facing the sector  include inadequate veterinary services, poor 
infrastructure, lack of reliable markets, low le vels of investment, and insufficient processing 
industries.  The Government is seeking to boost pr oduction in the sector through a loan facility by 
Tanzania Investment Bank. 
236.  Zanzibar has a predominantly agri-pastoralis t livestock sector, characterized by the use of 
traditional methods, low productivity, poor processing and marketing infrastructure, and a large 
deficit in livestock products, which is addressed by imports.  However, according to the Agriculture 
Transformation Initiative (ATI), Zanzibar has si gnificant potential for market-led commercialization 
of livestock products, driven by domestic urban demand and the expansion of tourism.  To realize this 
potential, the ATI calls for increasing investment in  areas such as processing and value-added animal 
products, large-scale production of da iry cattle and poultry, processing and marketing of dairy, beef, 
and poultry products, provision of support services, and breed-improvement programmes.  Zanzibar 
has an estimated 170,000 cattle, 53,00 0 small stock (goats and sheep) and 1 million poultry.      
                                                      
176 MAFC (2009). 
177 Ministry of Livestock Development and Fisheries online information.  Viewed at: 
http://www.countrystat.org/tza/ cont/pxwebquery/ma/215cpd050/e n. [16 November 2011]. 
178 MAFC (2009). 
179 Issues addressed by the NLP include animal registration and traceability , indigenous  technical 
knowledge, emerging diseases, livestock products, regula tory institutions, and veterinary laboratory systems.  
180 Foot-and-mouth disease is a severe problem; and th ere are many livestock d eaths from such diseases 
as helminthiosis and pleu ral pneumonia every year. WT/TPR/S/271/TZA Trade Policy Review 
Page A4-446 
  
 (c) Fisheries 
237. The contribution of fisheries to Tanzania's GD P declined during the reviewed period, as the 
shares of other economic sectors increased.  Annual av erage growth in the sector was 3.7%.  Fish is 
the major source of protein for almost a third of the population.  It provides direct employment to 
about 121,000 people in the mainland and 25,000 people in Zanzibar. 
238. Total fish catch was 344,567 tonnes in 2009.181  The sector is dominated by artisanal inland 
fishing, with lakes Victoria, Tanganyika, and Nyasa providing the bulk of the catch.  Nile perch is by 
far the main commercial catch, followed by tilapia and dagaa.  Marine fisheries include sardinellas, 
mackerel, and tuna from the Indian Ocean.  Shallo w water shrimp farming is still being developed, 
but has good potential.  Also, in recent years sm all-scale seaweed farming has expanded in coastal 
areas as a means of generating income.  
239. Between 2005 and 2008, fish expor ts averaged nearly US$160 million a year, but declined 
sharply in 2009 (to US$72.9)182, largely due to the negative impact of the global financial crisis on 
external markets for Tanzanian fish, and to declin es in catches.  Exports of fish products accounted 
for 2.5% of total merchandise exports in 2011 (Table  AI.1).  Europe and Asia are the main markets 
for Nile perch and shrimp, while neighbouring coun tries, including the SADC region, are important 
markets for dagaa.  In order to promote local processi ng, exports of raw fish are prohibited.  Under the 
CET, imports of raw fish and crustaceans are subject to a tariff of 25%;  and tariffs range between 10% and 25% for processed fish.  
240. Fisheries are not a Union matter, therefore in stitutions and regulations differ between the 
mainland and Zanzibar, although they have a common regime for deep-sea fishing.  In mainland 
Tanzania the sector is managed by the Ministry of Livestock and Fisheries and by district authorities 
at the local level.  The Fisheries Act No. 22 of 2003 and its 2009 Regulations  provide the main legal 
framework.  The Act makes provisions for sustai nable development, protection, conservation, 
aquaculture development, regulation and control of fish, fish products, aqua tic flora and its products, 
and related matters.  The Fisheries Development Fund envisaged by the Act to promote and assist the 
fisheries industry has not been established.   The Act is currently being revised. 
241. The Deep Sea Fishing Authority Act was amende d in 2007 (Act No. 17/2007);  changes relate 
mainly to institutional aspects of th e deep-sea fishing regime.  In particular, the Deep Sea Fishing 
Authority based in Zanzibar became operational and is  responsible for the management of fisheries in 
the Exclusive Economic Zone (EEZ) of  the United Republic of Tanzania. 
242. Primary (artisanal) fishing is reserved for Tan zanian nationals, but there are no restrictions on 
FDI in the related secondary or tertiary activ ities, such as fish-processing facilities.  There are 
16 processing facilities in operation.  Every fish ing vessel must be registered and assigned an 
identification mark.  A licence is required for any vessel engaging in fishing activities.  Owners of 
foreign fishing vessels require prior approval from the Director of Fisheries before they are allowed 
entry into Tanzania.  Fishing licence fees for foreign investors are, in general, higher than for national 
investors, and were increased in September 2008.   Licences for foreign investors and for fishing 
vessels over 11 metres are issued by the Ministry of Livestock and Fisheries in Dar es Salaam, while 
licences for national investors and vessels under 11 metr es are issued through regional/district offices.  
Licences for vessels to fish in the EEZ must be obt ained from the Deep Sea Fishing Authority.  In 
                                                      
 181 Bank of Tanzania (2011). 
182 National Bureau of Statistics online information, "CountrySTAT (Food & Agriculture Statistics)".  
Viewed at:  http://www.countrystat.org/tza/cont/incTab les/pageid/1_core/m_fisheries/en [November 2011]. EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-447 
 
 
 general, the fees for foreign vessel s are double those for local vessels.183  Fees for export licences vary 
according to the type of product and whether the app licant is a Tanzanian citizen or a foreigner. An 
export royalty is charged according to the weight and grade of the product, except for seashells and 
aquarium fish, for which the royalty is on f.o.b. basis.184    
243. The challenges facing the fishing sector include  high government royalties on fish products, 
duplication and multiplicity of taxes, surcharges a nd levies on fish produce impose by various levels 
of government, and lack of effective stimulus pack ages.  Other problems are declining catches of Nile 
perch (the major export product), l ack of technology for deep-sea fishing, high transport costs, regular 
power cuts and insufficient storage and processing facilities.185    
244. In Zanzibar artisanal fisheries dominate the sector, mostly producing for the national market. 
There are no large-scale commercial inshore fisher ies, but the EEZ fishing activity is relatively 
important.  The main export product is dried seaweed from extensive small-scale marine aquaculture, 
which accounted for about 14% of Zanzibar's me rchandise exports in 2010, while fish and fish 
produce accounted for an additional 1.8%.  The fisher ies sector is managed by the department of 
Fisheries and Marine resources of the Ministry of  Agriculture and Natural Resources.  Zanzibar's 
exports of fish and fish produce amounted to US$0. 4 million in 2010 (provisional figure), the same as 
in 2006.186  According to the Agricultural Transformati on Initiative, Zanzibar's marine resources in 
both territorial and EEZ waters are still under-utilized, hence the need to support and facilitate private 
investment in fish production, aquaculture, a nd handling and processing activities, such as smoking, 
sun-drying, freezing, and packaging.187 
(3) M INING AND ENERGY  
(i) Mining 
245. Tanzania has abundant mineral resources, main ly gold, diamonds, and gemstones, but also 
copper, silver, salt, phosphate, bauxite, uranium, and other minerals.  The mining industry has 
boomed in both mineral exploration and mining activities for over a decade.  During the review 
period, the mining regime underwent legal reform, with increases on royalties and taxes, essentially 
with the aim of collecting a greater share of the country's mineral wealth and maximizing its 
contribution to the economy.  Although the mining se ctor accounts for almost a third of merchandise 
exports, its contribution to GDP remain s small (Chapter I, Table I.1).   
246. The value of mineral exports, principally gold, doubled between 2005 and 2010 (Table IV.4).  
Exports of minerals increased by almost 23% in 2010 on account of rising gold prices in the world 
market and an increase in gold production in Tanzan ia.  Most exports are generated by large-scale 
foreign-owned companies.  FDI in mining totalle d 1.6 billion in 2008, accounting for 27% of total 
FDI stock in Tanzania.188  In the last few years, mineral explor ation has increased in several parts of 
                                                      
183 Deep Sea Fishing Authority Regulations, 2009.  Viewed at:  
http://www.mifugo.go.tz/documents_sto rage/DSFA_REGULA TIONS_2009.pdf 
184 Regulations Pertaining to Trade and Business of Tanzania Mainland Fisheries Resources.  Viewed 
at:  http://www.iornet.com/iorarc/studies/Regulations _Pertaining_to_Trade_and_Business_of_Tanzania_ 
Mainland_Fisheries_Resources.pdf  [December 2011]. 
185 UNIDO (2009). 
186 Bank of Tanzania (2011a). 
187 For details of the ATI, see Ministry of Agriculture and Natural Resources Zanzibar online 
information.  Viewed at: http://www.kilimoznz.or .tz/images/Agrictransform/Agrictransform.pdf. 
188 Tanzania Investment Centre (2009). WT/TPR/S/271/TZA Trade Policy Review 
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 the country and recent discoveries of nickel, uran ium, and coal deposits have spurred increased 
interest by investors.  
247. The Tanzanian mining industry is regulated at the Union level.  The principal regulatory body 
is the Ministry of Energy and Minerals (MEM).  The sector is governed by the Mining Act 2010 and 
supporting Regulations, which replaced the Mi ning Act 1998 and the 1999 Regulations and 
introduced a number of significant changes (see be low).  Mining companies benefit from various 
investment incentives, such as exemption of import duties and VAT on equipment and essential 
materials.  MFN customs tariffs in mining and qua rrying (ISIC division 2) average 4.8%, and range 
from zero to 25%.  
Table IV.4 
Value of mineral exports, 2005-10  
('000 U.S. dollars) 
Mineral 2005 2006 2007 2008 2009 2010a 
Gold  643,640 772,059 888,873 992,802 1,039,456 1,436,233 
Diamonds 25,350 25,913 28,913 22,238 22,727 16,294 
Gemstones 40,530 10,256 35,582 49,850 20,674 6,119 
Copper 12,620 19,896 21,063 21,063 11,499 36,710 
Silver 2,990 5,540 5,317 6,680 4,961 7,673 
Salt 1,630 1,998 2,174 2,380 1,738 4,038 
Phosphate 638 275 715 280   148 470 
Gypsum 50 28 74 650  84 126 
Bauxite 30 51 571 480 2,127 1,050 
Total 727,478 836,016 983,282 1,076,423 1,103,414 1,508,713 
a Provisional data. 
Source: Tanzania Ministry of Energy an d Minerals, Minerals Department. 
248. Under the mining legislation, the United Republic of Tanzania owns the rights to minerals in, 
on or under all land, which may be licensed to mining companies by the MEM.  Licences must be 
obtained for all mining activities, some of which ma y be granted only to Tanzanian citizens and/or 
companies incorporated locally.  There are various types of licences.189  Mining licences for minerals 
(other than building materials and gemstones) are granted for a maximum area of 10 km2 and a period 
of ten years, renewable.  Special mining licences for superficial or non-superficial deposits are 
granted for a maximum period of 25 years.  Prosp ecting licences provide for exclusive prospecting 
rights for minerals in defined areas.  Retention li cences protect an identified mineral deposit within a 
licensed area that is potentially of commercial significance but cannot be developed immediately due 
to technical constraints or market conditions of a temporary nature. Primary prospecting licences and 
primary mining licences are reserved exclusively for Ta nzanian citizens.  Ther e are also licences for 
dealers, brokers, and exporters of minerals.  The Government may also enter into specific mineral 
development agreements in accordance with the Mi ning Act, mainly for purposes of determining tax 
incentives and fiscal stabilization. 
249. In order to ensure security of tenure and tran sparency of mineral rights, the MEM introduced 
the Mining Cadastre Information Management System in 2004.  In addition, the Licensing and Mineral Rights Management Section was established within the MEM to enha nce efficiency in the 
                                                      
189 For the conditions and fees for each type of licence, see Tanzania Investment Centre online 
information.  Viewed at: http ://www.tic.co.tz/TICWebSite.nsf. EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-449 
 
 
 processing and granting of licences.  In 2010, a to tal of 5,294 mining and prospecting licences were 
issued, of which 586 were for prospecting.190 
250. The Mineral Policy of 2009, based on an evalua tion of ten years of implementation of the 
Mineral Policy of 1997, seeks to redress the per ceived low contribution of the mining sector to 
Tanzania's GDP.  It is regulated by the Mini ng Act 2010, which increased the level of royalties 
payable to the Government and placed restrictions on foreign participation in small-scale mining, to 
accommodate artisanal mining communities.   
251. Some of the main changes introduced by the Mi ning Act 2010 are:  (i) licences for dealing in 
minerals are now reserved exclusively to Tan zanians and corporate bodies under the control of 
Tanzanian citizens191;  however, the agreements and licences previously granted to 
non-Tanzanian-controlled mining companies remain unc hanged;  (ii) licences to mine for gemstones 
are reserved to Tanzanians192, but where projects require specialized skills, technology or a high level 
of investment the Minister (under MEM) may grant a licence to non-citizens provided their 
participation does not exceed 50% of the shares;  (iii ) the Government is to hold a stake in all future 
mining projects and will have a free carried share, the level of which is to be set on a case-by-case 
basis;  (iv) the Minister is given the power to prescribe a standard model mining development 
agreement for all projects exceeding US$100 million;  (v) royalties are now based on the gross value 
of minerals rather than on their net va lue, and their rates have been increased193; and (vi) mineral 
rights holders are subject to greater information di sclosure requirements and may be required to list on 
the Dar es Salaam Stock Exchange.  In addition,  the revised Mining Act 2010 introduced a ban on the 
exportation of unprocessed gemstones and ores in a bid to spur local value addition, and the 
requirement that mining companies procure locally produced goods and services, so long as they meet 
international standards. 
252. In June 2011, the Tanzanian parliament appr oved a new super-profit tax on the mining sector 
in an attempt to claim a greater sh are of the country's mineral wealth.194  However, the Government 
has not yet indicated the rate of this tax or on which level of profits.  It has not been clarified when the 
planned super-tax will be introduced or whether it wi ll be levied solely on new mining sector entrants 
or on all mining companies currently operating in Tanzania.  
253. The Sustainable Management of Mineral Resources Project (SMMRP) is a five-year 
(2010-14) programme co-financed by the International Development Association and the 
Tanzanian Government. The programme is designed to help the Government strengthen its 
capacity to manage the mineral sector and increase its competitiveness.   SMMRP has four 
components: (i) improving the benefits of the mine ral sector for Tanzania through promoting artisanal 
and small-scale mining, increasing linkages between the sector and the local economy, and 
                                                      
190 Ministry of Finance and Economic Affairs (2011).  
191 This restriction applies only to "primary mining  licences", which are granted to small-scale mining 
operations involving capital of less than US$ 100,000.   
192 Under the Act, gemstones include diamonds, tan zanite, emerald, ruby, sa pphire, turquoise, and 
topaz. 
193 The new royalty rates are:  uranium (5%), gemstones and diamonds (5%), metallic minerals such as 
copper, gold, silver and platinum (4%), industrial minerals (3%).     
194 According to a June 2011 report, annual gold exports tripled over the previous five years, to around 
US$ 1.5 billion, but government revenues from the mining sector remained static, at around US$ 100 million a 
year.  WT/TPR/S/271/TZA Trade Policy Review 
Page A4-450 
  
 developing skills;  (ii) strengthening governance and transparency in mining;  (iii) stimulating 
investment in the mineral sector; and (iv) pr oject coordination, monitoring, and evaluation.195    
(a) Gold 
254. Gold production has boomed over more than a decad e, and Tanzania is now the fourth largest 
gold producer in Africa, after South Africa, Ghana, and Mali.  This is the result of new discoveries as 
well as further exploration of some historical pros pects. The main operating mines and prospects are 
located in northern Tanzania, around Lake Victoria, and in the south-west of country.  Multinational 
companies active in gold mining in Tanzania incl ude African Barrick Gold, AngloGold Ashanti, 
Minières du Nord, IAMGOLD, Resolute Mining, and Randgold.  Following new discoveries of gold 
deposits, Tanzania could become the largest produ cer of the precious metal in Africa.  Gold 
production is forecast to rise to 1.55 million oun ces in 2012, before reaching a peak in 2016.196  In 
2010, the value of gold exports increased by 38. 1% to US$1,435.5 million, mainly due to the 
significant increase in the world market price of gold.   Imports of (non-monetary) gold are subject to a 
CET tariff of 25%.  
(b) Diamond and other gemstones 
255. Tanzania is an important producer of diam onds, with the bulk of production coming from the 
Williamson Diamond Mine (WDM) at Mwadui, an  operating open-pit mine owned by Petra 
Diamonds Ltd (75%) and the Tanzanian Government  (25%).  Diamond production and exports fell in 
2010, owing to the temporary closure of the WDM pl ant for expansion works.  However, once mining 
resumes, diamond output at the mine is expected to increase substantially, with a yield of 600 carats a 
year over the medium-term.   
256. Coloured gemstones are also mined extensively in  the country.  Tanzania is best known for its 
tanzanite, which is unique to the country, but it also produces ruby, sapphire, emerald, garnet, tourmaline, and other gemstones.  Over 1,000 to nnes of gemstones (excluding tanzanite) are produced 
annually.  Tanzanite production was some 10 tonnes in 2009.
197  The Mining Act of 2010 restricts the 
exportation of rough gemstones, with the aim of promoting local processing and employment.  Under 
the CET, imports of gemstones are subject to an average tariff of 20%, with rates ranging from zero to 
25%.     
(ii) Energy 
257. Biomass (firewood and charcoal) accounts for so me 90% of total energy consumption in 
Tanzania.  The remaining 10% is supplied from co mmercial sources, of which petroleum accounts for 
8% and electricity for 2%.198  Tanzania has diverse energy resources, most of which remain untapped.  
Hydropower potential is estimated at 4,700 MW, but onl y about 12% of it has been developed.  Coal 
reserves are estimated at about 1,200 million tonnes,  of which 304 million tonnes are proven.  An 
estimated 4,635 billion cubic feet of natural gas has been discovered, of which about a third are 
                                                      
195 Ministry of Energy and Minerals, SMMRP Brief.   Viewed at:  http://www.mem.go.tz/minerals/dev-
projects.php. [November 2011]. 
196 African Barrick Gold ABG online information.  Viewed at:  
http://www.africanbarrickgold.com/operations/tanzania.aspx [November 2011]. 
197 Bank of Tanzania (2011a). 
198 Ministry of Energy and Minerals (2009b). EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-451 
 
 
 exploitable.199  The other, alternative energy resources (m ini-hydro, geothermal, solar, and wind) have 
not been commercially exploited so far.  
258. Power generation increased at an average annua l rate of 6.5% between 2005 and 2010, and 
contributed some 2% to GDP each year.  Nevert heless, it fell short of meeting growing demand, 
mainly from urbanization, rapid population growth , and the mining industry boom.  The challenges 
facing the power sector include:  shortage of genera tion; high system losses due to an aged network; 
inadequate maintenance and lack of investment; poor quality of supply with voltage fluctuations; high 
international fuel prices; and recurrent breakdown of facilities.200  Overall, power shortages and 
periodic failures, as well as relatively high electrici ty tariffs impede the development of economic 
activities.  
259. Several institutional and legal reforms took place during the review period, in line with the 
National Energy Policy of 2003, whose main objec tive is to develop the energy sector to ensure 
availability of reliable and affordable energy s upplies.  The Energy and Water Utilities Regulatory 
Authority (EWURA) became operational in 2006 to undertake regulatory and oversight functions.  
Under the Rural Energy Act (2005), the Rural Ener gy Agency and the Rural Energy Fund became 
operational in 2007, with responsibilit y to promote access to electricity services in rural areas.  A new 
Electricity Act and a new Petroleum Act were introdu ced in 2008 (see (a) and (b) below).  In 2009, 
the Power System Master Plan (2010-33) was put in place with the objective of meeting electricity demand over the short-, medium- and long-term th rough the expansion of generating capacity and 
transmission.  The Power Sector Reform Strategy (2009) aims to restructure the country's electricity 
supply industry through greater private-sector involve ment, promote regional electricity trading, and 
improve the performance of the energy sector.  
(a) Electricity 
260. Only about 14% of Tanzanian households have a ccess to electricity, of which more than 80% 
are in urban areas (Table IV.5);  this coverage is  way below the Poverty Reduction Target, set at 20% 
by 2010.
201  Electrical power consumption was 84 kWh per capita in 2008, up from 69 kWh in 
2006.202  Industrial users account for 50% of total c onsumption, households and business for 40%, and 
public lighting for 10%.  About 60% of total electricity delivered to the national grid comes from hydropower plants; the rest comes mainly from th ermal generation, while natural gas generation has 
been increasing gradually since 2008.  Tanzania im ports electricity from Uganda and Zambia to 
supply regions of the country that are not connected to the national grid. 
261. Until 2008 the state-owned company TANESCO had a legal monopoly in the generation, 
transmission, and distribution of electricity.  Unde r the Electricity Act 2008, which seeks to attract 
private investment to the sector, independent pow er plants (IPPs) are allowed to generate and 
distribute electricity directly to end-users, provi ded they obtain a licence.  Nevertheless, TANESCO 
has the right of first refusal for the supply of elect ricity to all intensive electrical energy consumers.
203  
Although a few IPPs are currently operating, the electri city industry remains vertically integrated with 
TANESCO retaining a dominant position. 
                                                      
199 Mkawakupi et al. (2010). 
200 Mkawakupi et al. (2010). 
201 Ministry of Energy and Minerals (2009a). 
202 World Bank online information.  Viewed at:  http://data.worldbank.or g/indicator/EG.USE.ELEC. 
KH.PC. 
203 The Act Establishing TANESCO, Part VII section 41(b). WT/TPR/S/271/TZA Trade Policy Review 
Page A4-452 
  
 Table IV.5 
Selected indicators of electr ification in Tanzania, 2005-09 
(Million KWh) 
 2005 2006 2007 2008 2009 
Peak demand (MW) 552 603 653 694 755 
Installed capacity (MW) 953 958 1,226 905 1,051 
Generation (GWh), of which 3,665 3,588 4,212 4,422 3,834 
- hydro 1,781 1,439 2,524 2,649 2,242 
- thermal  1,884 2,149 1,688 1,773 1,592 
Imports (Uganda, Zambia) (GWh) 50 61 60 52 41 
Cumulative losses as % of generation 30 26 24 25 26 
Number of customers 605,246 654,180 686,000 725,000 750,000 
Electrification rate per popula tion (%) 8.2 10 10.6 12 14 
Source:  TANESCO (2009), Power System Master Plan , June 2009, and MEM (2009), Joint Energy Sector Review Report .  
262. The Electricity Act 2008 established the separation of powers between the MEM and 
EWURA.  The MEM is responsible for policy fo rmulation and is required to prepare a Rural 
Electrification Plan, while EWURA has regulatory powers, including setting tariffs, issuing licences, dealing with technical and safety standards, and approving power purchase agreements for electricity 
sales to TANESCO's national grid and mini-grids .  EWURA is currently working on a methodology 
to determine tariffs for each segment of the industry , i.e. generation, transmission, and distribution.  
At present, there are five tiers of electricity tariffs for end-users:  (i) low domestic use; (ii) general use 
(light industry, commercial activities, and public lightni ng); (iii) low voltage suppl y;  (iv) high voltage 
supply;  and (v) bulk sales to Zanzibar.  The authoriti es have indicated that electricity tariffs are based 
on a cost-recovery approach.  In 2012, electricity  tariffs were increased by an average 40%.   
263. The Rural Energy Agency (REA) provides subs idies to TANESCO in order to extend grid 
electricity to rural areas where it would otherwise be  unprofitable to invest.  A 3% levy is added on 
electricity tariffs to pay for this subsidy.  The Electricity Act 2008 increased penalties for 
non-compliance with its provisions, and established th at all electricity-related disputes be settled by 
the EWURA, 
264. Zanzibar buys its electricity from TANESCO.   Electricity is supplied through the 100% 
government-owned Zanzibar Electricity Corporatio n, which replaced the Zanzibar State Fuel and 
Power Corporation in 2006.  Currently, there are no private suppliers.  The Department of Energy and 
Minerals in the Ministry of Water, Construction,  Energy and Lands is responsible for energy policy 
formulation in Zanzibar.  Electricity tariffs are se t by the Ministry.  A new Energy Policy, approved in 
2009, provided for the liberalization of the energy mark et and the participation of the private sector in 
power generation and distribution.  The po licy has yet to be implemented.    
(b) Petroleum 
265. Tanzania does not produce petroleum or gas. It imports oil and petroleum products for 
domestic consumption and for transit to countries in th e region.  From July 2009 to June 2010, a total 
of 1,557.8 million litres of petroleum products were  imported for the local market, and 797.9 million 
litres for neighbouring countries.
204   
266. The up-stream petroleum industry is governed by the Petroleum Exploration and Production 
Act of 1980.  The state-owned Tanzania Petroleu m Development Corporation (TPDC), a non-Union 
                                                      
204 EWURA (2010). EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-453 
 
 
 institution, is responsible for overseeing the deve lopment of petroleum and gas exploration and 
production activities.205  It also participates in production-sharing agreements with foreign companies.  
Some 14 exploration companies are active in th e country.  Incentives available for exploration 
projects and the development of wells include: tax exemption on equipment and material used for 
exploration; recovering costs for exploration, deve lopment, and production; an d negotiated levels of 
profit oil/gas split.  No liquid hydrocarbons have been  found so far, but several gas-fields have been 
discovered (e.g., Songosongo, Mnazi Bay, Mkuranga, and Kilwa).   
267. Since the liberalization of the downstream petroleum industry in 2000, oil marketing 
companies operating in Tanzania are allowed to im port, store, transport, and distribute petroleum 
products.  The petroleum downstream industry was th e object of legal and institutional reform during 
the reviewed period.  The Petroleum Act, appr oved in 2008, separated the responsibilities of the 
MEM from those of EWURA.  The MEM is responsible mainly for policy formulation, whereas EWURA has regulatory functions.  The Act also introduced provisions for public safety and environmental protection, increased penalties for non -compliance, and provided that disputes related 
to petroleum be settled by EWURA.  
268. EWURA's functions include licensing of opera tors, product quality inspection, standard 
setting, and rule making.  In addition, EWURA sets  cap prices for petrol, diesel, and kerosene, which 
are reviewed and published monthly.  In recent years, the EWURA has stepped up actions to curb illegal practices, such as adulteration of finish ed petroleum products, trading without a licence, 
overpricing
206, and under-delivery (e.g., use of un-calibrated pu mp meters).  It has also monitored the 
quality of products and issued new rules on marki ng, quality, testing, and sampling of petroleum 
products.  As of June 2010, EWURA had grante d 60 wholesale licences and 775 retail licences, and 
was processing over 300 more applications.207   
269. EWURA also regulates downstream natural g as activities in mainland Tanzania, including 
processing, transportation, storage, and distributi on.  Marketing and sales of natural gas are not 
regulated.  The exploration, field development, and production of natural gas are regulated by the 
MEM.  The Songosongo and Mnazi Bay fields are current ly producing gas.  Gas is used for electricity 
generation and thermal application in over 25 major industries in Dar es Salaam.    
270. In Zanzibar the import and distribution of petroleum and gas are handled by the private 
sector. Importers and distributors set prices for thes e products and submit them to the Government for 
approval.  The government-owned Petroleum Trade Corporation was closed in March 2006.  Ten 
fuelling stations are currently being operated by private dealers.  There is no proper regulatory body 
for hydrocarbons in Zanzibar;  th e Department of Energy and Minerals oversees the sector.  Zanzibar 
is seeking to attract foreign invest ors to engage in oil and gas explor ation in its territorial waters.  
Issues pertaining to revenue sharing and the envi ronmental effects of hydrocarbon exploration are 
being considered by the governments of Zanzibar and the mainland.   
(4) M ANUFACTURING  
271. The manufacturing sector grew at an annual average rate of 8.6% during 2005-10.  
Manufacturing exports, mostly directed to the East  African Common market, have surged in recent 
years and now account for over a quarter of total e xports.  Nevertheless, despite the implementation of 
industrial development programmes and incentives , the sector remains underdeveloped and its 
                                                      
205 Prior to 2000, TPDC was the sole company dealing with petroleum products. 
206 A fine of T Sh 3,000,000 is imposed on traders involved in overpricing. 
207 EWURA (2010). WT/TPR/S/271/TZA Trade Policy Review 
Page A4-454 
  
 contribution to GDP is limited (Chapter I, Ta ble I.1).  The manufacturing sector employed over 
108,000 people in 2010.     
272. Manufacturing is dominated by agri-based industr ial activities, which constitute about 70% of 
industrial output.  The sector exhibits little diversific ation and a low level of value addition.  The most 
important industries include food-processing, bevera ges, and tobacco; textiles and leather products; 
non-metallic minerals; chemical, r ubber, and plastic products; cement; and oil refining.  Some 
industries have been particularly dynamic in recen t years, including production of Konyagi (a local 
spirit), wheat flour, pyrethrum, iron sheets, cement, and batteries.  On the other hand, production of 
aluminium, textiles, wood products, certain foodstuffs, beer, and cigarettes has been declining, in part 
due to the impact of the global economic recession.   
273. The major challenges facing Tanzania's manufacturing sector include high production costs 
and taxes, lack of modern technologies and equi pment, limited access to long-term financing, 
insufficient industry linkages, low labour productivity, shortages of electricity supply, and under-developed physical infrastructure.
208  Most manufacturing activities are located in Dar es 
Salaam and around the larger cities, particularly Arusha.  About 97% of manufacturing concerns are 
micro and small enterprises with less than ten workers. 
274. Under the CET, manufactured goods (ISIC 3, Revisi on 2) are subject to an average tariff of 
12.5%, with rates ranging up to 100% on certain  food products such as sugar (Common Report, 
Table III.1).  Tanzania's manufacturing sector relie s on imported industrial inputs and intermediate 
products.  Under the EAC Customs Management Act 2004, the Council of Ministers may approve 
temporary duty remissions for certain industrial inputs imported by EAC states.  In the case of 
Tanzania, the Council of Ministers approved a customs duty remission for one year (1 July 2011 to 30 June 2012) for palm stearin-RBD (HS Code  1511.90.40), a solid substance obtained from 
fractioning palm oil.
209  Also, under the Protocol on the Establishment of the EAC Customs Union, 
Tanzania obtained waivers, until July 2012, allowing it to apply lower customs duties of 0% and 10% 
on road tractors, and for certain motor vehicles for the transport of people and goods.  
275. The Ministry of Industry and Trade (MIT) is  responsible for policy formulation and the 
overall running of the manufacturing sector.  Other institutions involved in promoting the industrial 
sector include the National Development Corporat ion (NDC), the Small Industries Development 
Organization (SIDO), the Tanzania Industrial Rese arch Development Organization (TIRDO), and the 
Export Processing Zones Authority (EPZA).  The Business Registration and Licensing Agency 
(BRELA), a semi-autonomous agency under the MI T, is responsible for business regulation and 
facilitation.     
276. According to the National Development Vision 2025, the industrial sector is to play a leading 
role in transforming Tanzania fro m an agricultural economy into a semi-industrialized one by 2025.  
The Sustainable Industrial Development Policy (SIDP, 1996-2020) declared the Government's 
decision of withdrawing the public sector from produ ctive activities and enabling the private sector to 
become the principal vehicle for economic growth.   
277. The Integrated Industrial Development Strate gy (IIDS), announced by the MIT in 2011, 
provides a road map for carrying forward the implem entation of SIDP objectives in the new economic 
environment.  The IIDS's target is for the manufact uring sector to diversify and grow by an average 
                                                      
208 Ministry of Industry, Trade and Marketing (2010). 
209 Legal Notice No. EAC/29/2011, East African Community Gazette , Vol. AT 1-No. 08, Arusha, 
30 June 2011. EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-455 
 
 
 15% per annum, to reach 23% of GDP by 2025.  Its strategic objectives are to build-up an 
internationally competitive industry through the deve lopment of industrial clusters and large-scale 
special economic zones; to make Tanzania an indus trial and logistic hub in East and Central Africa 
through the improvement of the existing developm ent corridors and the creation of a new gateway 
port; to promote rural and resource-based industria lization; to strengthen the SME sector; and to 
provide adequate infrastructure facilities for industr y.  Several manufacturing subsectors have been 
targeted under the IIDS on the basis of their potenti al market size, value addition, and impact on 
poverty reduction:  i.e. fertilizers and chemicals, iron and steel, textiles, agri-processing (edible oil, 
cashew nuts, fruit processing, and milk products ), leather products, and light machinery.210  The IIDS 
is already being implemented in some subsectors su ch as leather, textiles, garments, iron, and coal. 
(5) SERVICES  
(i) Overview 
278. Services are the leading sector of the Tanzan ian economy in terms of GDP contribution. 
Trade and repairs is the single most important cont ributor, while the communications subsector is the 
most dynamic.  During the review period, Tanzan ia's services trade account showed a consistent 
surplus, which amounted to US$197 million in 2011 (Chapter I, Table I.2).   
279. Between 2005 and 2010 , Tanzania's services sector grew re latively robustly, at an average of 
8% per year.  Several institutional and legal refo rms aimed at increasing efficiency were introduced, 
including the restructuring or concession of some st ate-owned enterprises in the sector.  Nevertheless, 
more efforts are needed to improve the country's overall infrastructure and its capacity to deliver good 
quality, affordable services.  Further liberali zation of services should enhance the economy's 
efficiency and competitiveness, in particular by reducing costs related to financial services, 
telecommunications, and transport. 
280. Under the General Agreement on Trade in Serv ices, Tanzania scheduled commitments only 
on four-star hotels and above (Table IV.6).  It did not participate in the GATS Fourth and Fifth 
Protocols, on basic telecommunications and financial services, respectively.    
Table IV.6 
Tanzania's GATS specific commitments, 2012 
Sector or subsector Limitations on market access Limitations on national 
treatment Additional 
commitments 
Tourism and travel-related services   
Hotels of four stars and 
above (1) None (1) None  
 (2) None (2) None  
 (3) Acquisitions of domestic firms and mergers by 
foreigners are subject to approval (3) Unbound  
  The acquisition of land by foreigners or 
 domestic companies which are deemed foreign 
 because of foreign equity ownership is subject to 
 approval   
 (4) Unbound except for measures concerning senior 
managers that possess skills not available in 
Tanzania (4) Unbound  
Note: Mode of supply:  (1) Cross-border supply;  (2) Consumption abroad;  (3) Commercial presence;  and (4) Presence of natural  
persons.  
Source:  WTO document GATS/SC/84, 15 April 1994. 
                                                      
210 Ministry of Industry and Trade (2011). WT/TPR/S/271/TZA Trade Policy Review 
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 (ii) Financial services 
281. Since its liberalization in 1991, Tanzania's financial sector has undergone substantial 
structural change and legal reform, including th e strengthening of its institutional and regulatory 
framework.  Financial intermediation grew by an  average annual rate of 10.5% between 2005 and 
2010. The financial sector's assets totalle d T Sh 10,040 billion in December 2009.211  Banking 
institutions dominate the financial landscape, accounti ng for some 75% of the sector's assets, followed 
by pension funds (21%), insurance companies (2%) , and remaining financia l intermediaries (2%).212     
282. At end 2011, the financial sector compri sed 30 fully fledged commercial banks and 
14 financial institutions.  Of the 44 institutions, 22 were locally owned and the rest were owned by 
foreign entities.  Five institutions were majority st ate-owned and 39 were majority privately owned.  
There were 179 foreign exchange bureaux, and a numb er of other informal financial intermediaries, 
such as savings and credit cooperatives (SACCOs).213  In addition, there were 27 licensed insurance 
companies.214   
(a) Banking 283. The banking system continues to show a significant, albeit decreasing concentration of total 
assets.  The six largest banks held about 66% of all banking assets at end 2011
215, down from 90% in 
2005.  While some state-owned banks have been privatized, significant state-ownership still exists in 
certain major banks, notably the NBC, the NMB, and the Peoples Bank of Zanzibar.  The central bank, the Bank of Tanzania (BOT), is responsib le for supervising bank s and other financial 
institutions, including mortgage fina ncing, development financing, a nd lease financing.  A separate 
regulator oversees the insurance industry (section (b) below).   
284. Tanzania's banking system remained resilient to  the recent global financial crisis due to its 
limited exposure to international capital and financ ial markets, and the progressive strengthening of 
its regulatory and supervisory framework.  The banki ng industry is sound, adequately capitalized and 
has high liquidity levels, but asset quality and ea rnings have deteriorated somewhat.  As of 
31 December 2010, the ratio of core capital to tota l risk weighted assets plus off balance sheet was 
18.2% (i.e. above the minimum regulatory ratio of 10 .0%);  the ratio of non-performing loans to gross 
loans was 9.3% (up from 6.7% at end 2009);  the retu rn on assets was at 2.1%;  and the ratio of liquid 
assets to demand liabilities was 45.2%, well above  the minimum regulatory ratio (20.0%).
216   
285. The credit market has been very dynamic in recen t years.  Lending to the private sector grew 
by 16.2% in 2009 and 20.0% in 2010, and accounted  for about 20% of GDP at end-December 2010.217  
The sectoral distribution of commercial banks' cr edit in 2009 was:  trade, 19.01%; mining and 
manufacturing, 12.11%; agriculture, 10.35%; tran sport and communication, 9.29%; building and 
                                                      
211 Bank of Tanzania (2010). 
212 Tanzania Review 2011/2012 . 
213 Information provided by the Bank of Tanzania. 
214 Tanzania Insurance Regulatory Authority online information.  Viewed at:  
http://www.tira.go.tz/licensed/co mpanies [27 January 2012]. 
215 The six largest banks were the Cooperative and Rural Development Bank (CRDB), the National 
Microfinance Bank (NMB), the National Bank of Comm erce (NBC), Standard Chartered, Exim Bank, and 
Stanbic Bank. Information provided by the Bank of Tanzania. 
216 Bank of Tanzania (2011b). 
217 Bank of Tanzania (2011b). EAC-Tanzania WT/TPR/S/271/TZA 
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 construction, 5.07%; education, health a nd other services, 11.1%; and others, 33.07%.218  
Nevertheless, access to financial services remains very limited, even by regional  standards, with only 
12.4% of the adult population using banks and other formal financial institutions.219  Moreover, 
commercial banks' lending rates are still too high, and the spread between lending and deposit rates, at 
12.18% (December 2009), needs to be further reduced.   
286. In a bid to increase access to financial ser vices, Tanzania launched mobile phone payment 
services; by mid 2010 these were provided by two commercial banks and four mobile network 
operators.  Given the importance of developing a supervisory framework for this fast-growing 
industry, the BOT has signed an MOU with th e Tanzanian Communication Regulatory Authority, 
providing a mechanism for regulatory and supervisory coordination between the two regulators.      
287. During the review period, Tanzania contin ued to reform its banking regulatory and 
supervisory framework with a view to bringing it in  line with modern busin ess practices and the Basle 
Committee's Core Principles for effective banking supe rvision.  Two major pieces of legislation were 
passed:  the Banking and Financial Institutions Act 2006 (BFIA 2006), which replaced the BFIA 
1991, and the Bank of Tanzania Act 2006, whic h amended the BOT Act 1995, specifying the 
objectives and functions of the BOT, including in re lation to the regulation and supervision of banks 
and financial institutions.   
288. The BFIA 2006 consolidated laws relating to banki ng so as to harmonize the operations of all 
financial institutions, foster s ound banking activities and regulate cr edit operations.  It strengthened 
the BOT's independence by giving it enhanced powers to grant, suspend, and revoke banking licences, 
and to prescribe and enforce prudential controls fo r capital adequacy, minimum reserve requirements, 
liquidity ratios, credit concentration, foreign ex change exposure, asset classification, provisioning, 
and stricter financial reporting requirements.  The 2006 Act also established a Credit Reference 
Bureau.  The 2008 Banking and Financing Institutions Licensing Regulations set out the minimum conditions for entry/exit into the banking syst em, establishing subsidiaries, new branches and 
representative offices, and cover all aspects of the banking licensing application process.      
289. In order to establish a bank or a financial in stitution in Tanzania, a licence must be obtained 
from the BOT;  no distinction is made between lo cal and foreign entities.  Under the BFIA 2006, the 
minimum core capital requirement for a commercial ba nk to start operations is T Sh 5 billion;  this 
was increased to T Sh 15 billion in July 2010.  A financial institution (other than a community bank, 
microfinance company or financial cooperative) must  have start-up core capital of not less than T Sh 
2.5 billion or such higher amount as the BOT may de termine.  In addition, commercial banks and 
financial institutions must maintain, at all times, co re capital of not less than 10% of their total risk-
weighted assets and off-balance-sheet exposure, and total capital of not less than 12% of total risk-
weighted assets and off-balance-sheet exposure.
220  The minimum capital requirement for community 
banks is being reviewed, with the purpose of incr easing it from T Sh 250 million to T Sh 2 billion. 
290. The BFIA 2006 introduced new provisions to re duce the level of risks banks and financial 
institutions incur, by restricting their credit expos ure to individual customers and lending to connected 
parties.  Banks and financial institutions are pr ohibited from lending to a single person any amount in 
excess of the equivalent of 5% of their core capita l; for a micro-finance institution the maximum is 
                                                      
218 Bank of Tanzania (2009a). 
219 Tanzania Review 2011/2012 . 
220 The minimum start-up core capital requirements are: (i) community banks, T Sh 250 million; and 
(ii) microfinance companies or financial cooperatives, T Sh 200 million for a unit microfinance company and 
T Sh 800 million if operating nationwide.  The BOT may determine higher amounts. WT/TPR/S/271/TZA Trade Policy Review 
Page A4-458 
  
 3%.  Exceptions may apply if lending is : (i) guaranteed by the Government of  Tanzania; (ii) secured 
against cash or near cash items; (iii) guaranteed by a first class international bank; or (iv) against 
securities issued by the Government of Tanzania or the BOT.  The BFIA 2006 lists activities that 
banks and financial institutions may undertake, su ch as acceptance of deposits, lending, financial 
leasing, money transfers, issuing credit cards, travelers cheques, banker’s drafts, and financial 
advisory services.   
291. The BFIA also contains provisions allowing the BOT to share information with other 
appropriate supervisory authorities, both within Tan zania and abroad, provided that the exchange of 
information is on a reciprocal basis.  Interna lly, the BOT, the Capital Markets and Securities 
Authorities, the Gaming Board of Tanzania, and the Tanzania Insurance Regulatory Authority 
constituted the Tanzania Financia l Regulators Forum in 2007, with the objective of enhancing the 
effectiveness of regulatio ns, promoting financial stability, and sharing supervisory information.  At 
the regional level, the BOT continues to cooperate closely with the central banks of the EAC member 
states, with which it has signed memoranda of as sociation, with the aim of harmonizing banking 
supervision practices across the region.   
(b) Insurance 
292. Tanzania's insurance sector w as liberalized in 1996.  Since then, the number of insurance 
companies, including several international firms, ha s progressively grown.  As of 31 December 2010, 
there were 27 registered insuran ce companies.  Of these, 22 were privately owned with at least 30% 
Tanzanian ownership; three were 100% owned by  Tanzanian nationals; and two companies were 
100% state-owned (National Insurance Company (NIC ) and Zanzibar Insurance Company (ZIC)).  By 
type of business, there were 18 general insurance companies, 1 long-term (life) insurance business, 
4 composite insurers221, and 1 reinsurance company, as well as 75 registered insurance brokers, 
520 registered insurance agents, a nd 43 registered loss adjusters.222 
293. At the end of 2010, total assets of insurance companies amounted to T Sh 355.7 billion.  Five 
companies held about 70% of the sector's overall assets, with the state-owned NIC accounting for 
some 39%.  The general insurance product mix was:  motor insurance, 31%; fire, 20%; health, 18%; 
accident, 13%; and other classes, less than 7% each.223  The insurance market grew by 24% in 2010 
measured in gross premiums over the previous year .  Nevertheless, Tanzania's insurance penetration 
(premiums as a percentage of GDP) remained low, at 0.86%.224   
294. Tanzanian residents may not be insured by insu rance companies not registered in Tanzania, 
but Tanzanian companies may insure non-residents.    
295. Insurance premiums are set by insurance comp anies and subject to TIRA approval (see 
below).  Insurance against third-party liabilit y is compulsory for automotive vehicles and 
motorcycles.  
296. During the review period, the insurance sector underwent legal and institutional reform.  The 
Insurance Act of 2009, which repealed the Insura nce Act of 1996, introduced some important changes 
in the sector's regulation, geared towards ali gning the Tanzanian insurance market with best 
                                                      
221 Composite insurers undertake both long-term and general insurance. Under the Insurance Act 2009, 
they were given until end-2012 to separate the two businesses. 
222 TIRA (2011). 
223 TIRA (2011). 
224 TIRA (2011). EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-459 
 
 
 international practices.  One of the most importa nt changes was the establis hment of the Tanzania 
Insurance Regulatory Authority (TIRA) as an inde pendent regulator, replacing the former Insurance 
Supervisory Department of the Ministry of Finan ce.  The TIRA's main objectives are to promote and 
maintain an efficient, fair, safe, and stable insurance market, and protect policyholders.  The 
Commissioner of Insurance is the Chief Executive Officer of the TIRA and has powers to ensure 
compliance with the Act by insurers and insuran ce intermediaries, and to issue "cease and desist" 
orders to any registered insurer that, in his/her opinion, is conducting business in an unlawful or 
unethical manner.   
297. The National Insurance Board, established by th e 2009 Act, is responsible for advising the 
Authority on matters pertaining to the regulation and supervision of the insurance business and for 
ensuring that the TIRA undertakes its  activities in a competent manner.225  The 2009 Act also 
established a special Insurance Tribunal and an In surance Appeals Tribunal, as well as new provisions 
on offences and penalties.  Another important cha nge is the prohibition of composite insurance 
businesses (a combination of life and general insura nce); insurers may now transact either general 
insurance or life insurance, or establish two separat e companies.  Existing composite insurers were 
given a transition period of three years (until end 2012) to separate their businesses.  Banks are not 
allowed to supply insurance services. 
298. Under the Insurance Act of 2009, an insurer mu st be a resident company registered under 
Tanzanian law;  at least one third of its controlling interest must be held by citizens of Tanzania, and 
at least one third of the company's board members must be Tanzanian citizens.  On the other hand, 
insurance brokers and agents are not required to be Tanzanian nationals.  The 2009 Act establishes 
prudential requirements for insure rs, and mandates insurance companies to maintain minimum paid-
up capital levels that may vary depending on the t ype of business and must be adjusted yearly to 
inflation (Table IV.7).  It also provides for the establishment of statutory technical reserves, minimum 
solvency margins, adequate reinsurance arrangement s, investment requirements for insurers, as well 
as fit-and-proper criteria for directors of insurance companies.  
Table IV.7 
Minimum paid-up capital requi rements for insurers, 2010-12a 
(T Sh billion) 
Type of business Minimum paid-up capital 
 2010 2011 2012 
Long-term (life) insurance 1 1.25  1.50 
General insurance  1 1.25  1.50 
Composite insurance (long-term and gene ral) (until end 2012)  1.30 1.060  2.00 
a Minimum amounts to be maintained by 31 December of each y ear.  For subsequent years the amounts are adjusted according 
 to inflation (CPI). 
Source: TIRA (2009), Prudential Requirements for Tanzania Insurers . Power point presentation, 1 December, Dar Es 
 Salaam.  
299. The Tanzania National Reinsurance Corpor ation Ltd. (TAN-Re), which commenced 
operations in 2004, is the only reinsurer in the country.  TAN-Re was established to reduce the 
importation of reinsurance cover, so as to incr ease the premium retention capacity of the domestic 
insurance industry.  TAN-Re is mostly owned by  Government and parastatal institutions (53%), 
domestic insurance companies (29%), and a foreign investor (11%).  Until 2004, Tanzanian insurers 
were required to cede to TAN-Re a portion of liabiliti es of every policy issued by them, plus a portion 
                                                      
225 The Board of Insurance consists of a Chairman, a ppointed by the President, and no more than seven 
members appointed by the Minister of Finance and drawn from both sides of the Union.  WT/TPR/S/271/TZA Trade Policy Review 
Page A4-460 
  
 of their treaty reinsurance.  Mandatory cessions no longer apply.  Currently, about 92% of TAN-Re's 
business is in the local market.  At end 2010, its net assets totalled T Sh 18,153 million, up from 
T Sh 13,392.7 million in 2009.226  
(iii) Telecommunications 
300. Telecommunications is one of the most liberal  and fastest growing sectors of the Tanzanian 
economy, with annual growth rates averaging 20. 8% during 2005-10.  The establishment of the 
Tanzania Communications Regulatory Authority (T RCA) in 2003, and subsequent regulatory reforms 
marked a new era for the sector, characterized by the arrival of new entrants, increased competition 
and investment, adoption of new technologi es, and improved penetration rates.   
301. Following the global trend, fi xed-line subscriber numbers showed a modest increase to 
174,511 (0.39 subscriptions per 100 inhabitants) dur ing 2005-10.  By contrast, mobile cellular 
subscriptions grew exponentially, to almost 21 million, reaching a pene tration rate of 46.8% 
(Table IV.8), and the number of internet subscriber s increased 5.2-fold.  The liberalization of VoIP 
telephony, the introduction of 3G broadband services, and the country's  connection to international 
submarine fibre-optic cables227, are boosting the internet sector, which until recently had lagged 
behind due to the low level of development of th e traditional fixed-line network.  Nevertheless, 
internet usage remains low (11%)228 compared with other EAC countries (Kenya 25.9%, Uganda 
12.5%, and Rwanda 13%) and the broadband market is still largely unexploited.      
Table IV.8 
Selected teleco mmunication indicators, 2005-10 
 2005 2006 2007 2008 2009 2010 
Fixed telephone subscribers ('000) 154.3 152.0 163.2 123.8 172.9 174.5 
Fixed telephone subscribers per 100 inhab itants 0.4 0.38 0.4 0.29 0.4 0.39 
Mobile cellular subscribers ('000) 2,964.0 5,609.0 8,252.0 13,006.7 17,469.4 20,983.8 
Mobile cellular subscribers per 100 inhab itants 7.63 14.05 20.09 30.77 40.14 46.8 
Percentage of population using Intern et (%)  4.3 5.8 7.2 9.0 10.0 11.0 
Fixed internet subscribers ('000)  92.0 129.0 181.0 251.8 397.5 487.2 
Fixed internet subscribers per 100 inhabitants 0.24 0.32 0.44 0.6 0.91 1.09 
Fixed broadband subscribers ('000) 1.4 1.7 2.1 2.5 2.8 3.1 
Fixed broadband subscribers per 100 inhab itants 0.0 0.0 0.01 0.01 0.01 0.01 
Source:  ITU online information.  View ed at: http://www.itu.int/ITU-D/ ict/statistics [January 2012].  
302. Tanzania's telecommunication market is very co mpetitive.  There are two fixed-line operators, 
seven active mobile networks229, and over 68 internet/data application services licensees.230  The 
partially government-owned fixed telephone ope rators are the Tanzania Telecommunications 
Company Ltd. (TTCL) and the Zanzibar Telecommunications Company (ZANTEL), which also 
                                                      
226 TIRA (2011). 
227 The submarine cables SEACOM and EASSy landed in the country in July 2009 and April 2010. 
228 The number of internet users, which is greater than the number of suscribers, was estimated to be 
4.8 million in June 2010. TCA (2010). 
229 The mobile operators are TTCL, Zantel, Vodaco m, MIC Tanzania ltd., Airtel Tanzania Ltd., 
Dovetel (T) Ltd., and Benson Informatics Ltd.  Another six licensees are currently not active.  
230 Of the 68 internet/data application services  licensees, 46 were ac tive as of June 2010. EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-461 
 
 
 provide mobile telephone services.  Until February 2005, the TTCL had an exclusive licence to 
provide fixed-line basic telephony on mainland Ta nzania, and a de facto duopoly with ZANTEL in 
Zanzibar.  However, ZANTEL's licence coverage was extended to the mainland in 2006, and it is fast 
increasing its presence, offering lower rates in fixed, broadband, and mobile telephony.  
303. Telecommunications is a Union matter.  Th e Ministry of Communications, Science and 
Technology, established in 2008, is responsible fo r policy formulation and implementation related to 
telecommunications, postal services, and informati on and communications technology (ICT).  Among 
the main policies guiding the sector are the National Telecommunications Policy (NTP) of 1997, and the National ICT Policy of 2003.  The NTP provides a "vision" to 2020 and is aimed at ensuring the 
accelerated development of telecommunications  infrastructure so as to provide access to 
telecommunication services for all sectors of the economy and the population.   
304. The legal framework is provided by the Tan zania Communications Act No. 18 (1993), the 
Tanzania Broadcasting Services Act No. 6 (1993) , the Tanzania Communications Regulatory Act 
No. 12 (2003), and the Universal Communications Service Access Act (2006).  All of these were updated and consolidated in the Electronic and Po stal Communications Act of 2010.  The new Act 
requires all telecom companies to list on the Dar es Salaam Stock Exchange within three years.  A 
wide range of regulations pertaining to the tel ecommunication sector, such as interconnection rates, 
tariffs, competition, accounting separation, etc., have been passed since 2005.  
305. The TCRA is an autonomous agency responsib le for regulating the postal, broadcast and 
electronic communication industries.  It is mandate d to promote competition and economic efficiency, 
manage the radio frequency spectrum, grant licences and enforce licence conditions, set standards for 
equipment and services, regulate rates and tariffs, protect consumer interests, and monitor the 
performance of regulated activities.  In 2006,  the TCRA introduced the Convergence Licensing 
Framework (CLF), under which a larg e number of new players have entered the market.  There are 
four new types of licence:  the Network Fac ilities Licence, the Network Services Licence, the 
Application Services Licence, and the Contents Se rvices Licence (Table IV.9).  Licences may cover 
international, national, regional or district mark et segments.  The licensing regime is technology-
neutral, and therefore includes VoIP services, whic h have been liberalized since 2005.  Companies 
with excess capacity in their private networks (e.g . railway and utility companies) are allowed to 
participate in the market.       
306. Retail tariffs for telecom services are market-deter mined and hence not subject to regulation.  
However, dominant operators are required to submit their tariffs to the TCRA for approval prior to 
application.  Wholesale tariffs, such as interconnec tion rates, are determined by the TCRA based on 
forward-looking long-run incremental-cost (LRIC) methodologies. 
307. Increased market competition, including through the liberalization of international gateways 
since 2005, has led to a reduction of tariffs for all telecommunication services.  For instance, pre-paid 
telephone average tariffs per minute dropped by about 40% in 2009 (from T Sh 359 (US$0.3) to 
T Sh. 216 (US$0.2)); and since the landing of th e SEACOM submarine cable in Dar es Salaam, the 
TTLC has reduced its internet tariffs by more than  50%.  In addition, in order to reduce mobile 
termination rates, the TCRA introduced a stag e decrease of maximum interconnection rates from 
US$0.0783  per minute in early 2008 to US$0.0716 per minute in January 2012.
231  Nevertheless, 
                                                      
231 Vodacom Tanzania took TCRA to the Fair Co mpetition Tribunal over the interconnection rates, 
claiming they would be to the disadvantage of mobile operators.  Other, smaller mobile companies favoured the 
proposed rates. WT/TPR/S/271/TZA Trade Policy Review 
Page A4-462 
  
 Tanzania's telecommunication tariffs are still high by regional standards232, and the regulator's efforts 
to reduce prices are undermined by high import duties,  taxes, and special levies on telecom equipment 
and services, which increase prices for operators a nd end-users.  Telecommunications equipment is 
subject to a 20% import duty and 18% VAT, and an ex cise tax of 10% is imposed on mobile airtime.  
Table IV.9 
Telecommunication licences issued under the Convergence Licensing Framework, 2006 and 2011 
Type of licence Coverage End 2006 End 2011 
Network facilities license To install, own,  control and provide access to electronic 
communication facilities (e.g., fixed links, radio communication transmitters, satellite stations, submarine 
cable, fibre and copper cable, towers, etc.) to other licence 
operators. 5 21 
Network facilities services 
licence To operate and maintain public electronic communication 
networks with various technologies (CDMA, GSM, WCDMA, ADSL) that involve intelligent network platforms.  These 
include mobile services, fixed-line services, bandwidth 
services and broadcasting distribution services 5 16 
Application services licence To provide elect ronic communication services to end-users, 
either through the establishm ent of private facilities and 
networks, or through procurement and reselling of services 
from licensed facilities/network se rvice providers (e.g. internet 
service providers and payphone services). 24 83 
Content services licence To provide content services such as satellite broadcasting, 
broadcasting terrestrial free-to-air TV, and cable TV. .. 72 
.. Not available.  
Source: TCRA online data.  Viewed at: htpp://www.tcra.go.tz/licensing/CL Flicensed_operators.php [2 February 2012].   
308. The TCRA Act gives the telecommunications re gulator the power to deal with competition 
issues, and to investigate and make appropr iate recommendations to the Fair Competition 
Commission (FCC) or any other relevant authority, on issues concerning: (a) any contravention of the Fair Competition Act 2003, the Bureau of Standard s Act 1975, or any other written law; and (b) actual 
or potential competition in any market for regulated se rvices, or additional costs in the market that are 
likely to be detrimental to the public.
233   So far, the TCRA has not  intervened in any competition 
cases or reported any case to the FCC.   
309. Cross-subsidization is regulated through the Electronic and Postal Communications Act of 
2010 and associated regulations.  The latter contain pr ovisions that require tariffs to be transparent, 
objective, cost-oriented and non-discriminatory234, and that prohibit acts of unfair competition, 
including predatory pricing and cr oss-subsidization, among others.235  In addition, the regulations 
require operators to account for revenues and co sts separately for each business unit or service.236  
Respondents to a survey conducted prior to the entr y into force of the regulations noted alleged 
cross-subsidization and predatory low-pr icing practices in the telecom market.237  
310. Number portability has been available in Tan zania since 2008, and its use has been made 
popular by new market entrants.  Given that there is  still room for telecom network deployment in the 
country, local loop unbundling is not considered an  option for the time being, instead, incentives are 
                                                      
232 TCRA (2009). 
233 Tanzania Communications Regulatory Act No. 12 of 2003, Part III, paragraph 19 (2). 
234 Electronic and Postal Communications (Tariff) Regulations, 2011, regulation 4(2). 
235 Electronic and Postal Communications (Competition) Regulations, 2011, regulation 6(a). 
236 Electronic and Postal Communications (Accounting Separation) Regulations of 2011. 
237 Materu-Behista and Diyamett Bitrina (2010). EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-463 
 
 
 offered to operators for infrastructure investment and cost-sharing in backbone network deployment.  
A national fibre-optic backbone infrastructure has re cently been built.  The first phase was completed 
in May 2010, connecting Dar es Salaam with town s and cities in northern and eastern Tanzania, and 
to neighbouring Burundi, Rwanda , Kenya, and Uganda.  The second phase of the network was 
completed in 2012 and connects southern and eastern towns and cities with Zambia and Malawi.  The 
backbone is 100% owned by the G overnment and managed by the TTCL.238     
311. In accordance with the provisions of the Un iversal Communications Services Access Act of 
2006, the Government of Tanzania has establishe d a Universal Communication Access Fund (UCAF) 
to enable accessibility for communicat ion operators in the provision of communications services, with 
the aim of promoting social, econo mic, and educational developmen t in under-served rural and urban 
areas.  The UCAF is financed through appropriati ons by the parliament; money allocated by the 
TCRA via subsidies;  the universal service levy, paid by communication licensees; grants, donations, and contributions from local and foreign entities; and levies and contributions received for services 
provided by the Fund.  In 2009, Tanzania recei ved US$100 million from the World Bank to promote 
affordable communication services across the country.     
(iv) Transport 
312. Tanzania's transport network is crucial to c onnect the country's largely rural population to 
services and economic opportunities in urban areas, and transfer goods and people from local to national and global markets.  It also links Tanzania 's landlocked neighbours to international markets.  
Given its strategic role, the transport sector has b een the object of several institutional reforms and 
development programmes in recent  years, and accounts for a large share of public investment.
239  
Despite progress made, the sector continues to face many challenges, including inadequate network 
length, insufficient rehabilitation a nd maintenance of roads and railways, high costs, lack of efficient 
intermodal connections, and po or urban mobility.     
313. The Ministry of Transport (MOT), established in January 2011, has primary responsibility for 
formulating, planning, and coordinating sectoral  transport policies and for overseeing their 
implementation, in collaboration with other tran sport agencies.  The MOT aims to ensure the 
availability of high quality, safe and cost-effective transport infrastructure and services, to contribute 
to Tanzania's socio-economic development.  The main policy guiding the sector is the 2003 National 
Transport Policy, which is currently being review ed.  The ten-year Transport Sector Investment 
Programme (TSIP), put in place in 2007, provides a ro admap for achieving trans port-related goals.  It 
is being implemented in two phases; the second phase is  due to begin in 2012/ 13 and end in 2016/17.  
More than 60% of the financial requirements for the TSIP have been earmarked for roads 
development.  In order to promote private-sector participation, a Public Private Partnership (PPP) 
Policy and Act have been developed.  
314. Virtually all Tanzania's international trade (e xports, imports, and trans it goods) is transported 
by ocean freight. Air freight transport accounts for less than 1%, and about three quarters of 
international transport via ocean freight is taken by road. Transit trade makes up about a quarter of 
Tanzania's international transport.  
                                                      
238 The national ICT backbone has over 10,000 km of fibre-optic cable, linking nine cross-border points 
and giving access to submarine cables (SEACOM, EASS y, SEAS (Q2, 2012), and TEAMs (via Horohoro). 
239 Allocations of funds to the transport sector incr eased from around T Sh 170 billion in 2001/2002 to 
over T Sh 1,100 billion in 2010/2011.  WT/TPR/S/271/TZA Trade Policy Review 
Page A4-464 
  
 315. Tanzania has two main transport corridors:  the Central Transport Corridor connects Dar es 
Salaam and the coastal regions to the western and La ke Victoria regions of the country, thereby also 
linking Tanzania's main port to Burundi, Rwanda, Uganda, and the Democratic Republic of Congo.  
The Southern Corridor connects Dar es Salaam to Za mbia in the south-west by rail and road.  The 
Central Transport Corridor is being improved to conn ect Dar es Salaam to Kigoma at the border with 
Burundi.   
(a) Road transport 
316. Tanzania's total road network is estimated to be  86,472 km, of which about 7% is paved.  The 
Tanzania National Roads Agency (TANESCO), under the Ministry of Works, is in charge of 
19,246 km of regional roads and 10,601 km of trunk roads.  The remaining network (56,625 km) of 
urban, district, and feeder roads is under the respons ibility of the Prime Minister's Office for Regional 
Administration and Local Government.   
317. Periodic maintenance, rehabilitation, and upgrad ing of roads have the highest priority under 
the TSIP.  To this end, increasing resources ha ve been channelled through the Road Fund.240  As a 
result, the condition of roads has improved in the l ast five years.  Accord ing to a recent assessment, 
88% of trunk and regional roads and 59% of distri ct, feeder and urban roads were in good or fair 
condition in 2010/11, compared with 79% and 55.5%, respectively in 2006/07.241  Upgrading and 
construction of rural roads have also been undertaken  in Zanzibar (Pemba Island).  Nevertheless, the 
national road network remains inadequate, due  to insufficient funds for rehabilitation and 
maintenance, while traffic has increased substantially. 
318. Road transport is regulated by the 1973 Tr ansport Licence Act.  The Surface and Marine 
Transport Regulatory Authority (SUMATRA) is responsible, among other tasks, for issuing, 
renewing, cancelling, and amending road service licen ces.  Licence fees are different for local and 
foreign carriers.242  The road transport business is dominated by private operators.  Prices are set by 
operators, taking into account their operational costs plus a profit margin, and are subject to approval 
by the Government.  Cabotage is not allowed in road transport.   
(b) Railway transport 
319. Tanzania's railway system is 3,673 km long.  It  consists of two separate railway networks that 
operate on different gauges:  the 2,706-km networ k operated by Tanzania Railways Limited (TRL, 
formerly TRC), and the 975-km line run by Tanzania-Zambia Railway Authority (TAZARA). The two systems connect 14 of the 21 regions of mainland Tanzania and neighbouring countries.  
However, the lack of a standard gauge, makes provi sion of integrated services difficult, both within 
and outside the country.  Overall, the railway syst em is in very poor c ondition, with inadequate 
infrastructure, lack of maintenance and rehabilitati on, outdated equipment, and stiff competition from 
road transport.  As a result, freight volume and passenger numbers have declined in recent years, 
especially in the case of TRL (Table IV.10). 
                                                      
240 The Road Fund is financed mainly through the fuel levy.  In fiscal year 2011/12, the Road Fund 
collected T Sh 316.5 billion, of which T Sh 282 were allocated to road maintenance.   
241 Information provided by the Ministry of Transport. 
242 For details on licence fees and conditions s ee SUMATRA online information.  Viewed at: 
http://www.sumatra.or.tz/index.php?option= content&task=view&id=18&Itemid=2.  EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-465 
 
 
 Table IV.10 
Movement of cargo and passengers by railway, maritime, and air transport, 2005-10 
 2005 2006 2007 2008 2009 2010 
Rail transport:       
Tanzania Railways (TRL)       
 Freight ('000 tonnes) 1,129 775 714 505 453 256 
 Passengers ('000) 674 594 585 459 443 290 
Tanzania Zambia Railways (TAZARA)       
 Freight 632 601 539 528 383 523 
 Passengers 933 890 1,090 1,047 997 767 
Marine transport       
 Dar es Salaam Port       
 Ships calls - costal ships 3,895 4,154 3,038 518 2,169 .. 
 Cargo ('000 DWT) 4,307 6,762 7,426 7,167 8,103 8,814 
 Passengers ('000) 1,072 664 714 310 141 .. 
 T a n g a  P o r t        
 Ships calls - Costa ships 215 281 242 139 221 .. 
 Cargo ('000 DWT) 289 519 542 178 510 .. 
 Passengers ('000) 6.4 6.6 7.1 8.3 0 .. 
 Mtwara Port       
 Ships calls - costal ships 107 110 99 30 20 .. 
 Cargo ('000 DWT) 96 152 147 115 132 .. 
 Passengers ('000) 28 9.4 10 0 0 .. 
Air transport :        
Precision Air and Fly 540        
 Freight ('000 tonnes) 1.2 1.5 1.1 1.0 .. 74 
 Passengers ('000) 602 580 761 737 359 689 
Other internal airlines       
 Passengers ('000) 360 431 313 350 261 763 
.. Not available. 
Source: National Bureau of Statistics (2011), Tanzania in Figures 2010 .  Viewed at:  
 http://www.nbs.go.tz/pdf/Tanzania_ in_Figures2010.pdf. [November 2011]. 
 
320. Under the 2002 Railways Act, the government-own ed Tanzania Railway Corporation (TRC) 
was given in concession to Tanzania Railways Lim ited (TRL) in 2007.  However, as the performance 
of the company in private hands continued to dec line, the Government bought it back in 2011.  TRL's 
interim management has prepared a plan to revita lize the business, and a railways infrastructure fund 
is being planned.  TAZARA, join tly owned by Tanzania and Zambia, has lacked sufficient funds to 
run at a profit.  In 2010, the railway's averag e revenue was around US$3 million per month, but at 
least US$5 million were needed to cover monthly ope rational costs.  Discussions on the restructuring 
of TAZARA are ongoing.243  The Government's short- term priority is to revitalize the existing railway 
infrastructure and replace the rolling stock to bring it back to a sustainable level of operation.  
(c) Air transport  
321. Tanzania has over 60 airports, airstrips, and aerodromes serving domestic and international 
traffic.  The four major international airports ar e Dar es Salaam (JNIA), Kilimanjaro (KIA), Zanzibar 
(ZIA), and Mwanza (MWZ).  The Tanzania Ai rports Authority (TAA), a semi-autonomous 
government agency, manages 62 airports and airstrips.   The Kilimanjaro International Airport is the 
only airport operated by a private company ( KADCO), under a concession.  Handling services at the 
Dar es Salaam and Kilimanjaro International Airports are provided by Swissport.   
322. Under the Civil Aviation Act (revised in 2006), the Tanzania Civil Aviation Authority 
(TCAA) is responsible for the provision of air navi gation services and safety.  It also has regulatory 
functions with respect to the aviation subsector, including licensing of air services and personnel.  
                                                      
243 Tanzania Review 2011/2012 . WT/TPR/S/271/TZA Trade Policy Review 
Page A4-466 
  
 Under the Zanzibar Airport Authority Act of 2011, the Zanzibar Government is to set up its own 
airport authority (ZAA) to operate, manage, control, and develop the airports established in Zanzibar's 
isles (Unguja and Pemba).     
323. In recent years, the TAA and the TCAA have implemented a number of development projects 
with a view to modernizing Tanzania's airports a nd expanding the air transport infrastructure.  Works 
have included rehabilitating taxiwa ys and runaways at the Dar es Salaam International Airport, 
upgrading the Kilimanjaro and Zanzibar Internationa l Airports, and improving the infrastructure of a 
number of domestic airports, including the airpor t on Mafia Island, located off the east coast of 
Tanzania. 
324. Consequently, the local aviation industry has grown in the past few years, new airline 
companies have entered the market, and the numbe r of schedule flights has increased.  As of 
March 2011, 57 air operators had been licensed by  TCAA (up from 46 in 2008), of which 40 were 
operational.244  Nonetheless, Tanzania's air freight volume (1 million tonnes-km in 2009) remains 
quite low, even by regional standards.245  According to data from TAA, 2.27 million domestic and 
international passengers were ser ved through the airports managed by TAA in 2010/11, up from 
1.96 million in 2008/09.  
325. Some major foreign airlines operate in and out of Tanzania.246  Tanzania does not impose 
equity limits or restrictions on foreign companies establishing and providing air transport services.  
However, cabotage is not allowed.  No restrictions apply on the transport of freight from the country.   
326. The national carrier, Air Tanzania Company Ltd. (ATCL), was partially privatized in 2002.  
In March 2006, the Government bought back its 49% stake, because the company had accumulated 
losses of T Sh 24.7 billion.  Despite the Government's efforts to find a new investor to run the national 
carrier, ATCL was grounded in March 2011, after its only remaining operational aircraft was sent for 
extensive maintenance abroad.  Precision Air and Fly 540, both Tanzanian carriers, took over the 
destinations previously served by ATCL.  ATCL resumed service in November 2011 and announced 
plans to increase its fleet over the next five years.   
327. Tanzania is a signatory of the Chicago Conven tion, and abides by the standards and practices 
of the International Civil Aviation Organization.  Tanzania has concluded bilateral air services 
agreements with 48 countries of Africa, Asia, Europe, and America.247  As of March 2011, foreign 
carriers were operating under 21 of these agreements.    
(d) Maritime and lake transport   
328. Tanzania has 63 ports, of which 9 are along the coast of the Indian Ocean and 54 on internal 
lakes.  Four major ports can accommodate deep- sea and costal transport:  Dar es Salaam, Tanga, 
                                                      
244 TCAA online information.  Viewed at:  h ttp://www.tcaa.go.tz/licen sing_airservices.php 
[February 2012]. 
245 Air freight is the volume of freight, express and diplomatic bags carried on each flight stage (from 
takeoff to the next landing) measured in metric tonnes times kilometres travelled.   Kenya's air freight was 272 million tonnes-km, and Uganda's was 27 million tonnes-km.  World Bank online data.  Viewed at:  
http://data.worldbank.org/indicator/IS. AIR.GOOD.MT.K1 [February 2012]. 
246 These include British Airways, Delta Airlines, Egyp t Air, Emirates Airlines, Kenya Airways, KLM, 
Qatar Airways, South African Airways,  Swiss, and Turkish Airlines.    
247 For the list of countries with which the Unite d Republic of Tanzania has signed air service 
agreements, see TCAA onlin e information.  Viewed at:  http:// www.tcaa.go.tz/licensing _bilateral.php.  EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-467 
 
 
 Mtwara and Zanzibar.  During the year ending J une 2011, Tanzanian ports handled over 11 million 
tonnes of cargo.248 
329. The port of Dar es Salaam handles over 90% of the co untry's international trade.  It is also one 
of the EAC's two main ports (the other is Mo mbasa, in Kenya) and an important gateway for 
Tanzania's landlocked neighbours (Burundi, Rwan da, Democratic Republic of Congo, Malawi, 
Uganda, and Zambia).  The Dar es Salaam container terminal is ope rated by Tanzania International 
Container Terminal Services (TICTS), under a leasing arrangement.  As cargo volumes have expanded, the Dar es Salaam port has faced congestion problems.   In the context of this review, the 
authorities indicated that these problems had been so lved.  The Government plans to develop two new 
container terminals to expand cargo-handling capacity. 
330. Tanzanian ports are owned by the State.  The Tanzania Ports Authority (TPA), a parastatal set 
up in 2005, operates most ports and all lake ports.  In Zanzibar, ports are managed by the Zanzibar 
Ports Corporation, which is 100% state-owned.  Th e TPA is implementing a Ports Master Plan with a 
view to moving to a landlord model of port mana gement by 2020.  Hence, the Dar es Salaam 
container terminal, the Kigoma cargo terminal, and a few other ports have been leased out to private 
operators.  Other projects are under way to increase pr ivate-sector participation, taking into account 
commercial viability.  The Government has ended the TICTS's monopoly in an effort to increase 
efficiency by allowing competition in the provision of services. 
331. In the past few years, Tanzania has improved in its capacity to move goods and handle trade 
logistics.  For example, import container dwell time was reduced from an average of 20 days in 
January 2009 to 10 days in June 2011, and ship turn-around time dropped from 18.9 days to 
5.1 days.
249  In addition, the establishment of inland container depots by the TPA has significantly 
facilitated the movement of containers, thus alle viating congestion at the Dar es Salaam port.  
Customs clearance ti mes have also been reduced due to extended working hours at the customs 
department and other improvements.  Nevertheless, challenges remain, such as capacity constraints in 
the face of growing traffic demand, and inadequate  links to other transport modes such as rail and 
road.   
332. Maritime transport is mostly provided by privat e operators.  In addition, Tanzania has a joint 
shipping line with China, the SINOTASIP.  In 2010, the company transported 456,000 tonnes of cargo, up from 132,000 tonnes in 2009.
250  SUMATRA, the shipping subsector regulator is 
responsible for issuing shipping licences, keeping the shipping register, and overseeing ocean freight 
rates.  Under the Merchant Shipping Act 2002, in or der to be registered and obtain a shipping licence, 
an applicant must be a citizen of Tanzania or a company incorporated under Tanzanian law in which 
at least 50% of the share capital is owned directly or indirectly by a Tanzanian citizen.  Companies 
that are wholly owned by Tanzanians must have capital of not less than US$10,000, while companies 
jointly owned by Tanzanian and foreigners must have capital of not less than US$100,000.  In 2011, 
there were 33 licensed shipping agents.  Maritime transport cabotage is not permitted.  Prices of local 
maritime transport services for passengers are subject to approval by the Government.   
333. In Zanzibar, maritime transport services are regulated by the Zanzibar Government.  Some 
maritime transport services are provided by the private sector.  The Maritime Transport Act No. 5, enacted in 2006, provides for the establishment of the Zanzibar Maritime Safety Administration and 
the Tanzania Zanzibar International Register of Sh ipping (TZIRS).  Registration of merchant ships is 
                                                      
248 Information provided by the Ministry of Transport. 
249 Information provided by the Ministry of Transport. 
250 Ministry of Finance and Economic Affairs (2011).  WT/TPR/S/271/TZA Trade Policy Review 
Page A4-468 
  
 open to all national or foreign corporations and indi viduals.  Tanzania Zanzibar ships fly the flag of 
the United Republic of Tanzania but are registered unde r Zanzibar legislation.  The Zanzibar Shipping 
Corporation owns only two vessels and faces the cha llenge of ensuring adequate marine transport 
links in the Zanzibar isles.  
334. Inland water transport is carried out on Lake Victoria, Lake Tanganyika and Lake Nyasa.  
The main lake ports, Mwanza, Kigoma, and Kyela ar e used to transport goods and passengers inland 
and between neighbouring countries.  Lake trans port services are provided by the Marine Services 
Company Limited (MSCL), a state-owned corporation that operates ferries, ca rgo ships, and tankers 
on the three main lakes.251  In 2010, MSCL transported 77,776 tonnes of cargo and 325,595 
passengers.  The company has a fleet of 14 vessels.252  Lake transport services are also provided by 
private operators. 
(v) Tourism 
335. Tourism is a major contributor to the Tanzan ian economy in terms of GDP and employment 
(estimated at around 1.1 million direct and indirect jobs in 2011).253  Moreover, the sector generates 
some 28% of the country's foreign exchange earnings.254  Increased investment in tourism services has 
led to improvements in air access, road networks, and hotel infrastructure, both on the mainland and 
Zanzibar.  The sector received approximate ly 9.6% of total investment in 2011.255 
336. Tanzania has a rich variety of tourist attracti ons, including abundant wildlife, natural beauty, 
unspoiled beaches, and archaeological sites, all of  which make it a unique and fast-growing tourist 
destination.  The country boasts seven UNESC O world heritage sites (Ngorongoro Conservation 
Area, Serengeti National Park, Mount Kilimanjaro, Se lous Game Reserve, Stone Town in Zanzibar, 
and the ruins of Kilwa Kisiwani and  Songo Mnara) , as well as marine parks and other historical and 
cultural sites.  With 16 national parks, 33 game reserves, and 43 game controlled areas, some 28% of 
Tanzania's total land is set aside for conservation.    
337. In 2009, Tanzania's tourism industry suffered as a result of the effects of the global recession 
on its major source markets, but it began to rec over the following year (Table IV.11).  Average 
spending per tourist per day more than doubled be tween 2005 and 2010, boosting tourism earnings.  
Total receipts from tourism rose to US$1.25 billion in 2010, from US$823 million in 2005.  In the year ending October 2011, travel receipts reached US$1.4 billion.
256  The number of hotels and rooms 
has also increased, but average room occupancy per year remains relatively low.  The United States, 
the United Kingdom, Germany, and Italy are Tanzania's major tourist source markets.   
338. The Ministry of Natural Resources and Tourism (MNRT) formulates tourism policy and 
oversees the development of national parks, game park s, beach resorts, and other tourism attractions.  
The first National Tourism Policy (NTP), promul gated in 1991, provided overall objectives and 
strategies aimed at developing sustainable and qual ity tourism (low-volume, high-value tourism).  In 
1999, the NTP was reviewed in order to increase pr ivate-sector participation and address concerns 
                                                      
251 MSCL was the Marine Division of the Tanzania Railways Corporation until 1997. 
252 MSCL online information.  Viewed at:  h ttp://www.mscltz.com/about.h tml [February 2012]. 
253 Data of the World Travel and Tourism Council, cited in  Tanzania Review 2011/2012 . 
254 Bank of Tanzania Monthly Economic Review , November 2011.  Viewed at:  http://www.bot-
tz.org/Publications/MonthlyEconomicReviews/MER_%20Nov_2011.pdf [February 2012]. 
255 Tanzania Review 2011/2012 . 
256 Bank of Tanzania Monthly Economic Review , November 2011.  Viewed at:  http://www.bot-
tz.org/Publications/MonthlyEconomicReviews/MER_%20Nov_2011.pdf [February 2012]. EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-469 
 
 
 related to environmental protection, local communi ty participation, and poverty alleviation.  The 
Tourist Act, passed in 2008, provides for an overall legal and institutional framework for the tourism 
industry, including the administration, registration,  licensing, and control of tourism facilities and 
activities.  The Act established the Tanzania Tour ism Licensing Board, which is responsible for 
issuing licences and advising the Minister on matters rela ted to the Tourism Act.   As of 15 September 
2010, Tanzania had 705 licensed tourism operators.257 
339. The Tanzania Tourist Board (TTB) is the main  body responsible for promoting Tanzania as a 
tourist destination.  Promotion activities include participation in tourism fairs, road shows, 
media/public relations, and advertising in local a nd international media.  The TTB is trying to 
diversify tourism products and markets.  It is fo cussing on niche markets, such as bird watching, 
hunting, fishing, and scuba diving, as well as cultu ral, conference, and eco-tourism.  It is also 
targeting newly emerging source markets, such as China, India, Japan, and Eastern Europe.     
Table IV.11 
Tourism in Tanzania, 2005-10 
 2005 2006 2007 2008 2009 2010 
Number of tourists 613,000 644,000 719,000 765,000 714,367 782,699 
Tourists in hotels 590,000 605,000 673,722 715,000 665,480 719,097 
Earnings (US$ million) 823 950 1,037 1,354.0 1,159.8 1,254.5 
Average earnings per tourist (US$) 1,342 1,475 1,442 1,700.0 1,625.0 .. 
Average number of days per tourist 12 12 12 12 11 11 
Average expenditure per tourist per day (US$) 140 155.1 198.1 265.0 231.0 328.0 
Number of hotels 495 503 515 520 529 .. 
Number of rooms 31,365 31,689 31,870 32,045 32,315 .. 
Number of beds 56,562 56,781 56,995 57,205 58,167 .. 
Number of tourist nights (million) 10.6 11.8 12.7 13.8 10.7 .. 
Average room occupancy per year (%) 48 48 48 49 47 .. 
Total number of employees in tourism  199,000 199,300 250,000 250,500 250,800 .. 
.. Not available. 
Source:  Ministry of Finance and Economic Affairs (2010), The Economic Survey 2009. Viewed at: 
 http://www.tanzania.go.tz/ economicsurvey1/2009/THE%20ECO NOMIC%20SURVEY%202009.pdf;  and 
 Ministry of Finance and Economic Affairs (2011), The Economic Survey 2010 . Viewed at:  
 http://www.mof.go.tz/mofdocs/Micro/eco_re port/KITABU%20CHA%20HALI%20YA%20UCHUMI%20WA%2
 0TAIFA%20KATIKA%20MWAKA%20%202010.pdf. 
  
340. Notwithstanding its many attractions, Tanzania's  tourism sector remains relatively under-
developed.  Some of the main challenges it faces  are poor infrastructure and high transport costs 
which raise tour operators' costs;  insufficient inte rnational-standard hotels;  high park entrance fees; 
relatively high hotel rates;  limited air connections;  and lack of skilled labour.   
341. There has been significant investment in tour ism facilities in recent years, including the 
construction of several international tourist-class  and luxury hotels.  Efforts are being made to 
introduce a hotel classification standard (under a joint EAC initiative), which should help avoid 
misclassification.  In addition, a project is currently under way to set up a training facility for the tourism industry (National Colle ge of Tourism Project).  
                                                      
257 Ministry of Natural Resources and Tourism online information.  Viewed at:  
http://www.mnrt.go.tz/inde x.php?option=com_phocadownload&view=c ategory&id=1:fees&Itemid=53 [2012]. WT/TPR/S/271/TZA Trade Policy Review 
Page A4-470 
  
 342. Investment in tourism activities (e.g. hotels and lodges, conference and eco-tourism, and tour 
operators and transport) is open to local and fore ign investors, with a few exceptions, and several 
investment incentives are available (C hapter III(3)(v)).  However, in order to register and benefit from 
such incentives, higher levels of investment are requ ired from foreign investors.  Foreigners are only 
allowed to invest in four-star hotels and above, while  travel agent services, trekking and tour guides, 
and car-hire services are reserved for Tanzanian citizen s.  Neither locals nor foreigners may own land 
in mainland Tanzania or Zanzibar for hotel constr uction, but may obtain a lease for up to 99 years.  
Any investor (local or foreign) who wishes to inv est in a wildlife protected area must obtain approval 
from the MNRT.   
343. The tourism sector is subject to numerous taxes and fees, including a Tourist Agency 
Licensing (TALA) fee.  Overall, the hotel subsector  attracts 14 types of taxes/fees, while 11 types of 
taxes/fees apply to the travel and tour subsector. 
344. In Zanzibar, tourism is the leading sector of the economy, contributing 20% to GDP and 
accounting for 80% of foreign exchange.  The industry provides more than 11,500 direct jobs, and another 45,000 indirect jobs.
258  The tourism sector has grown rapidly in recent years, attracting more 
than 58% of all investment projects approved by  the Zanzibar Investment Promotion Authority 
(ZIPA).  In 2010, 132,836 tourists visited Zanzibar, up from 92,161 in  2004. The main source markets 
are Italy, the United Kingdom, the United States, South Africa, Germany, Sweden, and other European countries. At end 2010, Zanzibar had 225 hotels and guest houses, 102 tour operators, and 
500 tour guides.
259 
345. Zanzibar has its own tourism policy, with differe nt tax and incentive regimes.  The industry is 
regulated by the Zanzibar Commission for Tourism.  Policy is guided by the Promotion of Tourism Act (1996), the Zanzibar Tourism Master Plan (200 3), and the Zanzibar Tourism Policy (2004).  The 
main policy objective is to promote the sustainable development of tourism, to provide quality and 
diversified tourism services , and to increase the contribution of to urism to poverty alle viation.  A new 
tourism policy is currently being prepared.  Some of the challenges facing Zanzibar's tourism industry 
are insufficient air connections, poor infrastructure,  multiplicity of taxes, limited access to credit by 
local investors, and inadequate funds for promotion and marketing.  Local and foreign investment is 
encouraged in most tourism activities (except ground handling and tourist guide services), and a range 
of investment incentives are offered by the ZIPA.  However, the minimum capital requirement for a 
foreign firm to establish a hotel in Zanzibar is US$4 million.   
                                                      
258 Information provided by the Zanzibar Commission for Tourism. 
259 Information provided by the Zanzibar Commission for Tourism. EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-471 
 
 
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APPENDIX TABLES  EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-479 
 
 
 Table AI.1 
Structure of exports, 2005-11  
(US$ million and %) 
 2005 2006 2007 2008 2009 2010 2011 
Total (US$ million) 1,672 1,865 2,139 3,121  2,982 4, 051 4,735 
 (%) 
Total primary products 55.7 51.1 53.9 50.3 51.4 55.5 47.4 
   Agriculture 46.2 39.9 41.5 35.4 32.9 29.0 24.1 
      Food 36.6 33.3 33.9 28.3 25.7 23.6 20.5 
         0711 Coffee, not roasted 4.7 4.0 5.3 3.2 3.7 2.5 3.0 
         0577 Edible nuts fresh, dried 2.8 2.7 1.4 2.3 3.1 3.1 2.7 
         1212 Tobacco, wholly or partly  stemmed/stripped 6.2 5. 2 4.0 5.5 3. 0 2.8 2.0 
         2225 Sesame (Sesamum) seeds 1.1 1.1 0.8 1.0 2.2 1.2 1.5 
         0542 Leguminous vegetables, dr ied, shelled 1.8 1.1 2.4 2.1 2.0 2.3 1.4 
         0344 Fish fillets, fr ozen 3.0 2.3 3.1 1.8 1.9 1.8 1.3 
         0345 Fish fillets and fish meat, fresh or  chilled; fish meat frozen 4.8 7.0 3.9 2. 0 1.6 1.1 1.2 
         0741 Tea 1.6 1.8 1.8 1.4 2.3 1.2 1.0 
         0461 Flour of wheat or of meslin 0.8 0.6 1.9 1.2 0.5 1.1 0.8 
         0752 Spices (except pepper and pimento) 0.5 0.4 0.4 0.5 0.6 0.2 0.7 
      Agricultural raw material 9.6 6.6 7.6 7.1 7.1 5.4 3.6 
         2631 Cotton (other than linters), not carded or combed 4.1 2.5 1.9 2.6 3.0 1.8 1.1 
   Mining 9.6 11.2 12.4 15.0 18.5 26.5 23.3 
      Ores and other minerals 6.4 10.1 11.2 12.1 17.7 24.4 22.3 
         2891 Ores and concentrates of precious metals 6.1 9.5 9.4 11.2 16.7 11.4 11.4 
         2877 Manganese ores and concentrates 0.0 0.0 0.0 0.0 0.0 8.8 10.1 
      Non-ferrous metals 0.8 0.2 0.5 0.6 0.2 0.2 0.3 
      Fuels 2.4 1.0 0.7 2.2 0.7 1.9 0.8 
        
Manufactures 11.2 16.1 20.1 23.5 17.9 20.3 16.0 
   Iron and steel 0.9 0.8 0.5 1.8 0.7 1.1 1.0 
   Chemicals 1.5 4.9 2.8 3.0 2.7 4.3 2.8 
   Other semi-manufactures 3.7 3.7 6.7 5.6 3.8 4.5 3.8 
         6673 Precious and semi-precious st ones (excl. diamonds) 1.6 0.7 2.1 1.4 0.7 0.7 0.7 
         6414 Kraft paper, etc., uncoated, n.e.s., rolls/sheets 0.1 0.4 0.5 0.8 0.7 0.5 0.6 
   Machinery and transport equipment 1.9 3.4 4.5 6.4 5.2 4.4 4.0 
      Power generating machines 0.0 0.1 0.7 0.1 1.2 0.7 0.4 
      Other non-electrical machinery 0.7 1.6 1.2 1.8 1.3 1.6 1.5 
         Agricultural machinery and tractors 0.0 0.0 0.0 0.0 0.0 0.1 0.1 
      Office machines & telecommunica tion equipment 0.3 0.2 0.2 0.2 0.4 0.4 0.1 
      Other electrical machines 0.3 0.4 1.3 3.1 1.4 0.9 1.1 
         7758 Electro-thermic applia nces, n.e.s. 0.0 0.1 1.0 1.1 1.1 0.7 0.6 
      Automotive products 0.3 0.5 0.6 0.3 0.4 0.6 0.3 
      Other transport equipment 0.3 0.6 0.5 1.0 0.4 0.2 0.5 
   Textiles 1.8 2.1 2.6 3.6 4. 1 2.9 2.4 
         6585 Curtains and other textile furnishing, n.e.s. 0.5 0.7 0.9 1.8 1.8 1.9 1.4 
   Clothing 0.4 0.2 0.5 0.4 0.3 0.3 0.2 
   Other consumer goods 0.9 1.1 2.6 2.6 1.2 2.8 1.8 
         8933 Floor, wall or ceiling coverings , etc. of plastic 0.1 0.0 1.4 0.2 0.1 0.9 0.6 
        
Other 33.1 32.8 26.0 26.2 30.7 24.1 36.6 
   Gold 33.0 32.8 25.9 24.3 27.4 23.9 36.3 
         9710 Gold, non-monetary (excl. gold or es and concentrates) 33.0 32.8 25.9 24.3 27.4 23.9 36.3 
Source:  WTO Secretariat estimate, based on UNSD, Comtrade database SITC Rev.3 data. WT/TPR/S/271/TZA Trade Policy Review 
Page A4-480 
  
 Table AI.2 
Structure of imports, 2005-11  
(US$ million and %) 
 2005 2006 2007 2008 2009 2010 2011 
Total (US$ million) 3,247 4,527 5,919 8,088  6,531 8, 013 11,184 
 (%)  
Total primary products 33.9 38.1 43.7 39.8 33.5 39.5 43.6 
   Agriculture 10.7 12.9 12.5 8.6 9.8 10.8 10.7 
      Food 9.6 12.1 11.7 7.8 8.9 10.0 9.9 
         0412 Other wheat (including spelt) and meslin, unmilled 2.7 2.5 3.9 2.2 3.2 3.6 3.6 
         4222 Palm oil, fractions 2.7 4.6 3.8 2.2 1.6 2.2 2.5 
         0612 Other beet, cane and chemically pure sucrose,solid form 0.8 0.6 0.7 0.4 0.7 0.9 1.0 
      Agricultural raw material 1.1 0.8 0.8 0.8 0.9 0.9 0.8 
   Mining 23.2 25.2 31.2 31.2 23.6 28.6 33.0 
      Ores and other minerals 0.2 0.2 0.1 0.3 0.3 0.3 0.3 
      Non-ferrous metals 0.7 1.0 1.2 1.5 0.7 0.8 0.6 
      Fuels 22.3 24.0 29.9 29.4 22.6 27.6 32.1 
        
Manufactures 66.0 61.9 55.4 60.1 66.5 60.5 56.3 
   Iron and steel 5.0 4.6 4.1 4.9 5.0 4.3 4.2 
   Chemicals 15.4 11.4 11.5 11.6 12.0 13.1 11.6 
         5711 Polyethylene 1.5 1.3 1.2 1.1 1.3 2.1 1.4 
         5429 Medicaments, n.e.s. 2.2 1.4 2.4 1.3 1.1 1.2 1.4 
         5629 Fertilizers, nes 0.8 0.6 0.4 0.9 0.5 0.7 1.0 
         5751 Propylene polymers or of other olefins 1.1 1.0 1.0 0.9 0.9 1.0 0.8 
         5621 Mineral or chemical fer tilizers, nitrogenous 1.3 0. 7 0.6 1.4 1. 1 0.9 0.7 
   Other semi-manufactures 8.0 8.6 7.0 7.8 8.6 8.1 7.1 
         6612 Portland cement and similar hydraulic cements 0.2 0.2 0.5 0.5 0.6 0.7 0.6 
         6252 Tyres, pneumatic, new, for buses or lorries 1.0 0.9 0.7 0.6 0.7 0.6 0.6 
   Machinery and transport equipment 30.4 31.5 27.5 30.8 35.2 29.7 28.9 
      Power generating machines 1.1 2.5 3.4 1.6 1.1 0.9 3.1 
         7148 Gas turbines, n.e.s. 0.2 0.0 0.8 0.0 0.1 0.0 1.3 
         7165 Generating sets 0.4 1.9 0.9 0.9 0.5 0.6 1.0 
      Other non-electrical machinery 10.4 9.8 6.8 9.8 12.0 9.5 9.3 
         7239 Parts n.e.s., of  machinery of 723 and 744.3 1.3 1.4 1.3 1.8 1.7 1.3 1.8 
         7232 Mechanical shovels, etc ., self-propelled 0.6 0.5 0.4 0.8 0.7 0.8 0.8 
         Agricultural machinery and tractors 0.4 0.3 0.4 0.4 0.5 0.7 0.6 
      Office machines & telecommunica tion equipment 5.8 5.9 5.8 5.0 5.0 3.9 3.7 
      Other electrical machines 2.3 2.5 1.9 2.3 3.9 2.7 2.5 
      Automotive products 8.7 9.0 7.5 8.1 10.2 9.3 7.2 
         7821 Goods vehicles 2.7 2.9 2.5 2.9 3.3 2.8 2.4 
         7812 Motor vehicles for the transport of persons, n.e.s. 3.6 3.7 3.0 2.7 3.7 3.7 2.3 
         7832 Road tractors for semi-trailers 0.4 0.7 0.8 0.6 0.7 0.7 1.1 
         7831 Public-transport type passenge r motor vehicles 0.9 0.9 0.7 1.0 1.5 1.2 0.7 
      Other transport equipment 2.1 1.8 2.1 3.9 2.9 3.4 3.1 
         7851 Motorcycles and side-cars, etc. 0.2 0.2 0.3 0.3 0.5 0.6 0.7 
   Textiles 1.8 1.3 1.3 1.1 1. 2 1.1 1.0 
   Clothing 0.5 0.5 0.4 0.5 0.6 0.6 0.4 
   Other consumer goods 4.9 3.9 3.6 3.4 3.9 3.5 3.2 
        
Other 0.1 0.0 0.9 0.1 0.1 0.1 0.1 
Source:  WTO Secretariat estimate, based on UNSD, Comtrade database SITC Rev.3 data.  EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-481 
 
 
 Table AI.3 
Destination of exports, including re-exports, 2005-11  
(US$ million and %) 
 2005 2006 2007 2008 2009 2010 2011 
Total (US$ million) 1,672 1,865 2,139 3,121  2,982 4, 051 4,735 
 (%)  
  America 3.5 1.6 3.4 2.1 2.0 1.6 1.3 
    United States 1.1 1.2 2.9 1.8 1.6 1.2 1.1 
    Other America 2.4 0.4 0.5 0.2 0.4 0.3 0.3 
        
  Europe 35.4 41.3 40.4 38.2 36.3 30.2 31.6 
    EU(27) 26.4 21.6 19.7 17.2 16.6 12.5 12.1 
      Germany 4.7 6.0 4.7 2.2 1.9 3.4 4.8 
      The Netherlands 6.0 5.6 4.9 5.2 6.1 2.3 2.0 
      Belgium 2.2 1.6 1.8 1.6 2.7 2.4 1.8 
      Italy 2.4 1.9 2.7 2.2 1.8 1.7 1.1 
      United Kingdom 7.9 3.8 1.4 2.7 1.1 0.8 0.6 
    EFTA 8.8 19.3 20.6 20.3 19.7 17.6 19.5 
      Switzerland 8.7 19.3 20.5 20.2 19.6 17.5 19.4 
    Other Europe 0.2 0.4 0.1 0.7 0.1 0.1 0.0 
        
  Commonwealth of Independent States  (CIS) 0.3 0.1 0.6 0.2 0.2 0.1 0.2 
        
  Africa 36.1 34.4 30.9 32.9 25.1 35.2 36.1 
      South Africa 17.6 14.7 9.5 8.5 6.3 10.7 18.1 
      EAC 9.7 10.3 12.1 11.4 9.6 13.8 8.6 
           Kenya 5.6 5.6 5.8 8.1 6.5 8.0 4.7 
           Rwanda 0.4 0.3 0.8 0.7 0.5 2.9 2.0 
           Uganda 2.9 2.4 2.2 1.9 1.7 1.5 1.1 
           Burundi 0.8 2.1 3.3 0.7 0.8 1.4 0.8 
      D.R. Congo 3.7 3.1 3.9 4.6 2.9 3.9 2.7 
      Mozambique 0.5 0.7 1.0 1.1 0.7 0.5 1.4 
      Malawi 0.7 1.1 1.1 1.6 0.9 1.1 1.3 
      Zambia 1.4 1.6 1.4 1.5 1.6 1.5 1.3 
      Congo 0.5 0.3 0.5 1.0 0.6 0.7 0.8 
      Angola 0.1 0.2 0.1 0.0 0.0 0.1 0.6 
        
  Middle East 4.5 3.3 5.8 3.6 4.7 2.1 2.2 
      United Arab Emirates 2.1 2.6 4.6 2.2 3.1 1.5 1.6 
        
  Asia 20.2 19.2 18.9 23.1 31.7 30.9 28.6 
    China 5.9 8.0 7.3 8.7 13.0 16.2 14.3 
    Japan 4.3 4.4 3.0 4.7 6.0 5.4 7.5 
    Six East Asian Traders 3.7 1.4 1.7 1.8 3.9 1.4 0.9 
    Other Asia 6.3 5.4 6.9 7.9 8.8 7.9 5.9 
      India 4.7 3.4 3.7 5.5 6.3 5.6 4.4 
      Indonesia 0.4 0.4 0.7 0.8 0.7 0.4 0.5 
        
  Other 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Source:  WTO Secretariat estimate, based on UNSD, Comtrade database SITC Rev.3 data. WT/TPR/S/271/TZA Trade Policy Review 
Page A4-482 
  
 Table AI.4 
Origin of imports, 2005-11  
(US$ million and %) 
 2005 2006 2007 2008 2009 2010 2011 
Total (US$ million) 3,247 4,527 5,919 8,088  6,531 8, 013 11,184 
 (%)  
  America 5.7 4.5 5.8 4.6 4.2 3.4 5.1 
    United States 3.2 2.8 3.2 2.8 2.2 1.9 2.7 
    Other America 2.5 1.7 2.6 1.8 2.1 1.5 2.4 
      Argentina 0.8 0.3 1.5 0.8 0.6 0.4 1.1 
        
  Europe 20.5 19.5 23.0 19.6 22.6 22.5 25.7 
    EU(27) 19.3 17.2 17.7 16.6 19.1 14.4 14.0 
      United Kingdom 3.8 3.5 2.9 2.2 2.8 2.6 2.6 
      The Netherlands 2.1 1.9 1.4 2.6 1.9 1.8 2.5 
      Germany 2.8 3.4 2.6 2.7 3.5 2.3 1.6 
      Sweden 2.2 1.2 1.8 1.9 1.3 0.8 1.6 
      Belgium 1.5 1.7 1.9 1.8 1.7 1.7 1.6 
      France 2.2 1.3 2.2 2.0 1.7 1.6 1.5 
      Italy 1.3 2.0 1.4 1.2 1.5 1.2 1.3 
    EFTA 0.9 1.7 4.5 2.0 2.3 7.2 10.5 
      Switzerland 0.8 1.5 4.3 1.7 2.1 7.0 9.9 
    Other Europe 0.3 0.7 0.8 1.1 1.2 0.8 1.2 
      Turkey 0.3 0.7 0.8 1.0 1.2 0.7 1.1 
        
  Commonwealth of Independent States  (CIS) 1.5 1.6 2.4 2.2 1.4 2.0 1.2 
      Russian Federation 1.0 1.0 1.2 0.9 1.0 1.3 1.0 
        
  Africa 20.0 20.3 14.2 18.8 17.2 15.6 14.7 
      South Africa 12.4 12.6 10.1 10.3 10.5 9.6 8.8 
      EAC 5.6 4.9 1.9 5.5 4.9 3.7 3.4 
           Kenya 5.4 4.8 1.7 5.3 4.7 3.4 3.0 
        
  Middle East 24.8 26.8 22.0 17.7 14.6 13.0 16.7 
      United Arab Emirates 6.3 11.0 13.2 12.1 9.7 8.4 11.1 
      Bahrain 15.7 9.1 2.9 0.5 0.6 0.7 2.4 
      Saudi Arabia 1.4 5.4 3.7 3.3 2.5 2.5 1.3 
        
  Asia 27.6 27.3 32.7 37.1 40.0 43.5 36.6 
    China 6.9 6.8 7.0 8.9 10.6 10.9 9.4 
    Japan 6.4 5.7 4.4 4.5 6.5 7.1 4.4 
    Six East Asian Traders 3.4 5.1 9.6 9.9 6.9 10.1 4.0 
      Singapore 0.3 0.3 4.3 5.5 2.9 5.5 1.1 
    Other Asia 10.8 9.6 11.7 13.8 16.0 15.4 18.7 
      India 5.9 5.3 8.7 10.7 11.8 11.2 14.0 
      Indonesia 2.8 3.1 2.2 1.2 1.7 1.4 2.3 
      Australia 1.5 0.7 0.5 1.3 1.9 2.0 1.3 
        
  Other 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Source:  WTO Secretariat estimate, based on UNSD, Comtrade database SITC Rev.3 data.  EAC-Tanzania WT/TPR/S/271/TZA 
 Page A4-483 
 
 
 Table AII.1 
Tanzania's notifications to the WTO, 2006-12 
WTO Agreement/description of 
requirement Most recent notification 
Sanitary and Phytosanitary Measures   
Technical Barriers to Trade   
Article 2.9.2 G/TBT/N/TZA/1, 2 September 2009
 G/TBT/N/TZA/2,  2 September 2009 
 G/TBT/N/TZA/3, 2 September 2009
 G/TBT/N/TZA/4, 2 September 2009
 G/TBT/N/TZA/5, 2 September 2009 
 G/TBT/N/TZA/6, 2 September 2009 
 G/TBT/N/TZA/7, 2 September 2009 
 G/TBT/N/TZA/8, 2 September 2009 
 G/TBT/N/TZA/9, 2 September 2009 
 G/TBT/N/TZA/10, 2 September 2009 
 G/TBT/N/TZA/11, 2 September 2009 
 G/TBT/N/TZA/12, 2 September 2009 
 G/TBT/N/TZA/13, 2 September 2009 
 G/TBT/N/TZA/14, 2 September 2009 
 G/TBT/N/TZA/15, 2 September 2009 
 G/TBT/N/TZA/16, 2 September 2009
 G/TBT/N/TZA/17, 7 April 2010 
 G/TBT/N/TZA/18, 19 November 2010 
 G/TBT/N/TZA/19, 19 November 2010 (Article 10.6) 
 G/TBT/N/TZA/20, 19 November 2012 
 G/TBT/N/TZA/20/Corr.1, 7 December 2010 
 G/TBT/N/TZA/21, 19 November 2010 
 G/TBT/N/TZA/22, 19 November 2010 
 G/TBT/N/TZA/23, 19 November 2010 
 G/TBT/N/TZA/24, 19 November 2010 
 G/TBT/N/TZA/25, 19 November 2010 
 G/TBT/N/TZA/26, 19 November 2010 
 G/TBT/N/TZA/27, 19 November 2010 
 G/TBT/N/TZA/28, 19 November 2010 
 G/TBT/N/TZA/29, 19 November 2010 
 G/TBT/N/TZA/30, 19 November 2010 
 G/TBT/N/TZA/31, 19 November 2010 
 G/TBT/N/TZA/32, 19 November 2010 
 G/TBT/N/TZA/33, 19 November 2010 
 G/TBT/N/TZA/34, 19 November 2010 
 G/TBT/N/TZA/35, 19 November 2010 
 G/TBT/N/TZA/36, 19 November 2010 
 G/TBT/N/TZA/37, 25 November 2011
 G/TBT/N/TZA/38, 25 November 2011
 G/TBT/N/TZA/39, 25 November 2011
 G/TBT/N/TZA/40, 25 November 2011
 G/TBT/N/TZA/41, 25 November 2011
 G/TBT/N/TZA/42, 25 November 2011
 G/TBT/N/TZA/43, 25 November 2011
 G/TBT/N/TZA/44, 25 November 2011
Article 15 G/TBT/2/Add.97/Rev.1, 28 October 2010 
Source:  WTO documents.