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  ANNEX 4 TANZANIA  
 
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  CONTENTS  
1   ECONOMIC ENVIRON MENT  ................................ ................................ ......................  243  
1.1   Main Features of the Economy  ................................ ................................ ...................  243 
1.2   Recent Economic Developments  ................................ ................................ .................  243 
1.2.1    Monetary policy  ................................ ................................ ................................ ..... 246 
1.2.2    Fiscal policy  ................................ ................................ ................................ ..........  246 
1.3   Developments in Trade and Investment  ................................ ................................ ...... 247 
1.3.1    Trends and patterns in merchandise and services trade  ................................ ..............  247 
1.3.1.1    Merchandise trade  ................................ ................................ ...............................  247 
1.3.1.2    Services trade  ................................ ................................ ................................ .... 250 
1.3.2    Trends and patterns in FDI ................................ ................................ .....................  251 
2   TRADE AND INVEST MENT REGIMES ................................ ................................ .........  253  
2.1   General Framework  ................................ ................................ ................................ .. 253 
2.2   Trade Policy Formulation and Objectives  ................................ ................................ ...... 254 
2.2.1    Private sector involvement  ................................ ................................ ......................  255 
2.3   Trade Agreements and Arrangements  ................................ ................................ .........  256 
2.3.1   WTO ................................ ................................ ................................ ....................  256 
2.3.2    Regional and preferential agreements  ................................ ................................ ...... 257 
2.4   Investment Regime  ................................ ................................ ................................ .. 257 
2.4.1    Overview  ................................ ................................ ................................ ..............  258 
2.4.2    Investment restrictions  ................................ ................................ ...........................  259 
2.4.3    Incentives and promotion  ................................ ................................ .......................  259 
2.4.4    Special Economic Zones (SEZs) and Export Processing Zones (EPZs)  ...........................  261 
2.4.5    Business environment and taxation  ................................ ................................ ..........  264 
3   TRADE POLICIES A ND PRACTICES BY MEAS URE ................................ ......................  267  
3.1   Measures Directly Affecting Imports  ................................ ................................ ............  267 
3.1.1    Customs procedures, valuation, and requirements  ................................ .....................  267 
3.1.1.1    Customs valuation  ................................ ................................ ..............................  269 
3.1.2    Rules of origin  ................................ ................................ ................................ ....... 269 
3.1.3    Tariffs  ................................ ................................ ................................ ..................  269 
3.1.4    Other charges affecting imports  ................................ ................................ ...............  270 
3.1.4.1    VAT ................................ ................................ ................................ ...................  271 
3.1.4.2    Excise  ................................ ................................ ................................ ................  272 
3.1.5    Import prohibitions, restrictions, and licensing  ................................ ..........................  274 
3.1.6    Anti-dumping, countervailing, and safeguard measures  ................................ ..............  275 
3.1.7    Other measures affecting imports  ................................ ................................ ............  275 
3.2   Measures Directly Affecting Exports  ................................ ................................ ............  276 
3.2.1    Customs procedures and requirements  ................................ ................................ ..... 276 
3.2.2    Taxes, charges, and levies  ................................ ................................ ......................  276 
3.2.3    Export prohibitions, restrictions, and licensing  ................................ ...........................  276 WT/TPR/S/384 • Tanzania  
 
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  3.2.4    Export support and promotion  ................................ ................................ .................  278 
3.2.5    Export finance, insurance, and guarantees  ................................ ................................  279 
3.2.5.1    Finance and insurance  ................................ ................................ .........................  279 
3.2.5.2    Guarantees  ................................ ................................ ................................ ........  279 
3.3   Measures Affecting Production and Trad e ................................ ................................ ..... 279 
3.3.1    Incentives  ................................ ................................ ................................ .............  279 
3.3.2    Standards and other technical requirements  ................................ .............................  280 
3.3.3    Sanitary and phytosanitary requirements  ................................ ................................ .. 281 
3.3.4    Competition policy and price controls  ................................ ................................ ....... 282 
3.3.4.1    Competition  ................................ ................................ ................................ ....... 282 
3.3.4.2    Price controls ................................ ................................ ................................ ...... 283 
3.3.5    State trading, SOEs, and privatization  ................................ ................................ ...... 283 
3.3.5.1    State trading  ................................ ................................ ................................ ...... 283 
3.3.5.2    Privatization  ................................ ................................ ................................ ....... 284 
3.3.5.3    State -owned enterprises (SOEs)  ................................ ................................ ...........  284 
3.3.6    Government procurement  ................................ ................................ .......................  284 
3.3.7    Intellectual property rights  ................................ ................................ ......................  286 
4   TRADE POLICIES B Y SECTOR  ................................ ................................ ...................  289  
4.1   Agriculture, Forestry, and Fisheries  ................................ ................................ .............  289 
4.1.1    Agriculture  ................................ ................................ ................................ ............  289 
4.1.1.1    Production  ................................ ................................ ................................ .........  289 
4.1.1.2    Trade  ................................ ................................ ................................ ................  291 
4.1.1.3    Policy  ................................ ................................ ................................ ................  293 
4.1.1.3.1    Overview  ................................ ................................ ................................ ........  293 
4.1.1.3.2    Taxation ................................ ................................ ................................ ..........  294 
4.1.1.3.3    Support programmes and initiatives  ................................ ................................ ... 295 
4.1.1.3.4    Marketing boards  ................................ ................................ .............................  297 
4.1.1.4    Major agricultural subsectors  ................................ ................................ ................  298 
4.1.1.4.1    Cashew nuts  ................................ ................................ ................................ .... 298 
4.1.1.4.2    Livestock  ................................ ................................ ................................ .........  300 
4.1.1.4.3    Cloves  ................................ ................................ ................................ ............  302 
4.1.2    Forestry  ................................ ................................ ................................ ................  302 
4.1.3    Fisheries  ................................ ................................ ................................ ...............  306 
4.1.3.1    Framework and fisheries management ................................ ................................ ... 306 
4.1.3.2    Production and trade  ................................ ................................ ...........................  308 
4.2   Mining  and Energy  ................................ ................................ ................................ .... 309 
4.2.1    Mining  ................................ ................................ ................................ ..................  309 
4.2.1.1    Developments  ................................ ................................ ................................ .... 310 
4.2.1.2    Production and trade  ................................ ................................ ...........................  312 
4.2.2    Energy ................................ ................................ ................................ .................  314 WT/TPR/S/384 • Tanzania  
 
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  4.2.2.1    Petroleum and natural gas  ................................ ................................ ...................  315 
4.2.2.2    Electricity  ................................ ................................ ................................ ...........  317 
4.3   Manufacturing  ................................ ................................ ................................ ..........  320 
4.4   Services  ................................ ................................ ................................ ..................  323 
4.4.1    Financial  ................................ ................................ ................................ ...............  323 
4.4.1.1    Banking  ................................ ................................ ................................ .............  323 
4.4.1.2    Insurance  ................................ ................................ ................................ ..........  326 
4.4.1.3    Capital markets  ................................ ................................ ................................ .. 328 
4.4.2    Telecommunications  ................................ ................................ ...............................  331 
4.4.3    Tourism  ................................ ................................ ................................ ................  334 
4.4.3.1    Overview  ................................ ................................ ................................ ...........  334 
4.4.3.2    Framework and policy ................................ ................................ ..........................  335 
4.4.4    Transport  ................................ ................................ ................................ ..............  337 
5   APPENDIX TABLES  ................................ ................................ ................................ .. 340  
 
CHARTS  
 
Chart 1.1 Direction of merchandise trade, 2012 and 2017  ................................ .....................  248 
Chart 1.2 Composition of merchandise trade, 2012 and 2017  ................................ ................  250 
Chart 3.1 Tariff lines (at the 8 -digit level) with national rates different from the CET rates  
due to stays of application  ................................ ................................ ................................  270 
Chart 4.1 Electric power generation by source, 2016 -17 ................................ .......................  319 
Chart 4.2 Tanzania's electricity sector structure, 2017  ................................ ..........................  319 
Chart 4.3 Businesses by type of ownership, Mainland, 2014 -15 ................................ .............  322 
 
TABLES  
 
Table 1.1 Selected macroeconomic indicators, 2012 -17 ................................ ........................  244 
Table 1.2 BOP, 2012 -17 ................................ ................................ ................................ .... 245 
Table 1.3 Trade in services, 2012 -17 ................................ ................................ ..................  251 
Table 1.4 FDI stock in Tanzania, by source and by activity, 2012 -15 ................................ ...... 252 
Table 2.1 Union and non-Union matters  ................................ ................................ ..............  253 
Table 2.2 Selected notifications to the WTO, 1 January 2012 -October 2018  .............................  256 
Table 2.3 BITs, as at November 2018  ................................ ................................ .................  258 
Table 2.4 List of services offered by the TIC, by timeframe and cost, 2016 ..............................  260 
Table 2.5 Number of projects approved through the TIC by sector, M ainland, 2012 -13 .............  260 
Table 2.6 Approved investment projects, by sector, Zanzibar, 2015 -17, cumulative  .................  261 
Table 2.7 SEZs and Business Industrial Parks registered under the EPZA, 2018  .......................  262 
Table 2.8 Incentives, Mainland, 2018  ................................ ................................ .................  262 
Table 2.9 Incentives, Zanzibar, 2018  ................................ ................................ ..................  263 
Table 2.10 Taxation in Tanzania, 2018 ................................ ................................ ................  265 WT/TPR/S/384 • Tanzania  
 
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  Table 3.1 Key customs figures, 2012 -16 ................................ ................................ .............  267 
Table 3.2 VAT exemptions, Mainland, 2018  ................................ ................................ .........  271 
Table 3.3 VAT exemptions, Zanzibar, 2018  ................................ ................................ .........  272 
Table 3.4 Excise taxes on goods and services, Mainland, 2018 ................................ ...............  273 
Table 3.5 Products subject to prohibition, restriction, or licensing, 2018  ................................ . 274 
Table 3.6 Export prohibitions, restrictions or licensing, 2018  ................................ .................  277 
Table 3.7 Guarantee schemes, 2016  ................................ ................................ ...................  279 
Table 3.8 Competition, performance highlights, 2012 -17 ................................ ......................  283 
Table 3.9 Government re -purchases or sales of entities, 2012 -17 ................................ ..........  284 
Table 3.10 Overview of SOEs  ................................ ................................ .............................  284 
Table 3.11 Public procurement methods and thresholds, 2018  ................................ ...............  285 
Table 3.12 Overview of public procurement, 2012 -16 ................................ ...........................  286 
Table 3.13 Main IP legislation and reg ulations, 2018  ................................ ............................  287 
Table 4.1 Production of main crops, 2014 -17 ................................ ................................ ....... 290 
Table 4.2 Production of livestock and poultry products, Mainland, 2012 -17 .............................  290 
Table 4.3 Major exported agricultural products, 2012 -17 ................................ ......................  291 
Table 4.4 Major imported agricultural products, 2012 -17 ................................ ......................  292 
Table 4.5 Overview of main legal instruments, 2018 ................................ .............................  294 
Table 4.6 Government support for agriculture, 2017 -18 ................................ ........................  297 
Table 4.7 Overview of agricultural marketing boards, 2018  ................................ ...................  298 
Table 4.8 Overview of the cashew industry, 2012 -17 ................................ ............................  300 
Table 4.9 Overview of the clove industry, 2012 -17 ................................ ...............................  302 
Table 4.10 Forest area by category, use, and legal status, Mainland, 2013 -14 .........................  305 
Table 4.11 Exports of forest products, 2014 -17 ................................ ................................ ... 305 
Table 4.12 Number of registered fishermen, vessels and catches in marine and  
fresh waters, Mainland, 2012 -17 ................................ ................................ ........................  309 
Table 4.13 Fisheries trade, 2012 -17 ................................ ................................ ...................  309 
Table 4.14 Mining licences and  requirements, 2018  ................................ ..............................  312 
Table 4.15 Production of selected minerals, Mainland, 2012 -17 ................................ .............  313 
Table 4.16 Quantity and value of selected minerals exported, 2012 -17 ................................ ... 313 
Table 4.17 Production and revenue of natural gas, Mainland, 2012 -17 ................................ .... 317 
Table 4.18 Imports, local and transit, o f petroleum products, 2012 -17 ................................ ... 317 
Table 4.19 Electricity installed capacity, generated and sold, Mainland and Zanzibar, 2012 -16 .. 320 
Table 4.20 Industrial activity, Mainland, 2013 -16 ................................ ................................ . 322 
Table 4.21 Banking sector overview, 2012 -17 ................................ ................................ ..... 324 
Table 4.22 Overview of the insurance sector, 2012 -16 ................................ ..........................  326 
Table 4.23 Overview of capital markets, 2012 -17 ................................ ................................ . 329 
Table 4.24 Capital market incentives, 2018  ................................ ................................ .........  330 
Table 4.25 Telecommunications operators and operations, Mainland, 2012 -17 .........................  333 
Table 4.26 Overview of tourism, Mainland, 2012 -17 ................................ .............................  334 
Table 4.27 Overview of tourism, Zanzibar, 2012 -17 ................................ .............................  335 WT/TPR/S/384 • Tanzania  
 
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  Table 4.28 Transport statistics, Mainland, 2012 -16................................ ...............................  339 
 
BOXES  
 
Box 4.1 New mining acts or regulations, 2012 -18 ................................ ................................  311 
Box 4.2 New electricity rules, orders, and regulations, 2012 -18 ................................ .............  320 
Box 4.3 New banking regulations and guidelines, 2012 -17 ................................ ....................  325 
Box 4.4 New telecommunications regulations, 2018  ................................ .............................  333 
 
APPENDIX TABLES  
 
Table A1. 1 Merchandise domestic exports by destination, 2012 -17 ................................ ....... 340 
Table A1. 2 Merchandise domestic exports by group of products, 2012 -17 ..............................  341 
Table A1. 3 Merchandise exports by destination, including re -exports, 2012 -17 .......................  342 
Table A1. 4 Merchandis e exports by group of products, including re -exports, 2012 -17 ..............  343 
Table A1. 5 Merchandise imports by group of products, 2012 -17 ................................ ...........  344 
Table A1. 6 Merchandise imports by origin, 2012 -17 ................................ ............................  345 
 
Table A3. 1 Excise taxes on goods and services, Zanzibar, 2017  ................................ ............  346 
Table A3. 2 State enterprises, 2014  ................................ ................................ ...................  348 
 
 
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  1  ECONOMIC ENVIRONMENT  
1.1  Main Features of the Economy  
1.1.  The United Republic of Tanzania (comprising mainland Tanzania and the islands of Zanzibar) 
is endowed with a number of  important natural resources. The Republic consists of mainland 
Tanzania with its varied terrain, including a coastline of about 1,424 km, and the islands of 
Unguja, Pemba, and Mafia, including other small islands surrounding them and the territorial 
water s. The mainland is mountainous and densely forested in parts, provides arable farmland and 
savannas in others, and also gives access to three of Africa's Great Lakes that offer a multitude of 
fisheries and water resources. Tanzania also has three main sea ports plus a number of smaller 
ones, offering a transport corridor to neighbouring landlocked countries. It has the largest 
population in East Africa, with 51.0 million in 2017, and is expected to grow considerably in the 
years to come. The population is d ominated by young persons, with about 44% of the population 
is under the age of 15. Tanzania has one of the highest growth rates in the world, at 2.7%.1 
Another trend shaping its economy is the continuous growth in urbanization, which was at about 
33% in 2 017.2 This, in turn, has implications for Tanzania's infrastructure and transport sectors. 
Economic growth has been strong and sustained over the period under review, averaging 6.75% 
per year in real terms , and one of the highest in sub -Saharan Africa (Table 1.1). However , 
Tanzania remains an LDC  with a GDP per capita of USD 1,021. It was also one of the largest 
recipients of FDI in the region during the review period.  
1.2.  Tanzania benefits from a diverse economic base in which services account for the largest 
share, at 40%, followed by agriculture at 32%, construction at 16%, manufacturing at 6% and 
mining at 5% (Table 1.1). The structure of the economy regarding percentage of GDP remained 
stable during the review period, with the exception of construction, whi ch nearly doubled from 
8.7% to 16.2%, and manufacturing, which declined slightly from 8% to 5.9%.  
1.2  Recent Economic Developments  
1.3.  Economic growth has been particularly strong during the last five years, at 7% or higher 
(Table 1.1). The growth in real GDP in recent years has been driven by the construction, transport 
and storage, wholesale and retail trade, information and communication , and manufacturing  
sectors. Growth in the construction sector was strong, even in the early part of the period, due to 
major construction projects such as power plants and pipelines. This has since declined in relative 
terms, but remains high compared to other sectors, and is expected to pick up again in the coming 
years, as several large infrastructure projects are in the pipel ine.  
1.4.  Tanzania's inflation has been on a downward trend to near its annual target rate of 5% in the 
most recent years (Table 1.1). This decline has been attributed to prudent monetary policy and 
lower food prices. It is furthermore expected to stay at arou nd 5% due to a stable food supply, low 
world oil prices, and stable exchange rates of the Tanzanian shilling (TZS) against major 
currencies. The Tanzanian shilling has remained quite stable since 2015, when it depreciated 
against many currencies.  
1.5.  As part o f its macroeconomic objectives, and in line with its Second Five -Year Development 
Plan, the Government expected to attain the following goals for the fiscal year (FY) 2017/18:  
• Real GDP growth of 7.2 % in 2017/18 based on the projected growth of 7.1 % in 2017  and 
7.3% in 2018 ; 
• Maintaining a single -digit annual inflation rate by end -June 201 8; and  
• Budget deficit , including grants , of 3.8 % of GDP (including clearance of arrears) in 
2017/18 .3 
                                                
1 "Statistical Abstract 2016". Tanzania National Bureau of Statistics online information. Viewed at: 
https://nbs.go.tz/ nbs/takwimu/Abstracts/Statistical_Abstract_2016.pdf .  
2 World Bank online information. Viewed at: https://data.worldbank.org/indicator/sp.urb.totl.in.zs .  
3 BOT, Monetary Policy Stateme nt 2017/18. Viewed at: 
https://www.bot.go.tz/Publications/MonetaryPolicyStatements/MPS%20ENG%20JUNE%202018.pdf .  WT/TPR/S/384 • Tanzania  
 
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  Table 1.1 Selected macroeconomic indicators, 2012 -17 
  2012  2013  2014  2015  2016  2017a 
Mainland  
Nominal GDP (TZS billion)  61,434.2  70,953.2  79,718.4  90,863.8  103,168.6  116,101.9  
Nominal GDP (USD million)  39,087.8  44,413.6  48,219.7  45,628.3  47,388.4  52,090.3  
Real GDP (% change at 2007 
constant prices)  5.1 7.3 7.0 7.0 7.0 7.1 
Per capita GDP (nominal USD)  896.0  990.8  1,046.7  963.6  973.5  1,021.0  
Per capita GDP (at constant 2007 
prices USD)  661.6  690.6  718.8  748.1  778.4  795.4  
Population (million)  43.6 44.8 46.1 47.4 48.7 51.0 
Inflation (CPI, % change)  16.0 7.9 6.1 5.6 5.2 5.3 
Zanzibara 
Nominal GDP (TZS billion)  1,552.5  1,856.1  2,135.5  2,309.5  2,627.8  3,100.6  
Nominal GDP (USD million)  987.8  1,161.8  1,291.7  1,159.7  1,207.0  139.1  
Real GDP (% change at 2007 
constant prices)  4.8 7.2 7.0 6.5 6.8 7.5 
GDP by type of expenditure (% of current GDP)b 
Final consumption  81.2 85.4 78.0 74.2 75.6 76.3 
Government final consumption  14.7 16.3 13.8 13.7 12.8 13.7 
Household final consumption  66.2 68.8 63.9 60.3 62.5 62.4 
Non-profit institutions serving 
households  0.3 0.2 0.2 0.2 0.3 0.2 
Gross capital formation  28.5 30.3 30.1 27.2 25.0 26.1 
Gross fixed capital formation  30.6 30.5 32.6 34.3 33.9 33.1 
Changes in inventories  -2.1 -0.2 -2.4 -7.0 -8.9 -7.0 
Exports of goods  and services  21.3 17.7 19.4 21.6 19.6 15.1 
Imports of goods and services  33.1 31.1 29.8 24.8 22.7 17.5 
Errors and omissions  2.1 -2.3 2.3 1.8 2.5 -0.1 
GDP by economic activity (% of GDP at current basic prices)b 
Agriculture, forestry and fishing  33.2 33.3 31.4 31.5 31.7 32.4 
Crops  19.2 18.7 17.5 16.9 16.9 18.3 
Livestock  9.0 8.8 8.0 8.5 8.4 7.4 
Forestry  2.6 3.3 3.4 3.8 4.2 4.3 
Fishing  2.4 2.6 2.4 2.2 2.2 2.4 
Mining and quarrying  5.2 4.5 4.0 4.4 5.2 5.1 
Manufacturing  8.0 6.9 6.1 5.7 5.3 5.9 
Electricity supply  0.9 0.8 1.2 1.1 0.8 0.6 
Water supply; sewerage, waste 
management  0.5 0.5 0.5 0.5 0.4 0.5 
Construction  8.7 11.5 13.5 14.8 15.2 16.2 
Services, of which:  44.7 43.8 44.5 43.4 42.5 40.3 
Wholesale and retail trade; repairs  11.1 10.9 11.4 11.6 11.6 11.8 
Transport and storage  4.7 4.5 4.7 4.6 4.7 4.6 
Information and communication  2.5 2.4 2.3 2.2 2.1 2.1 
Financial and insurance activities  3.6 3.5 3.7 3.9 3.9 3.6 
Real estate  4.5 4.0 4.0 3.5 3.2 2.9 
Administrative and support service 
activities  2.5 2.6 2.7 2.6 2.4 2.3 
Public administration and defence  7.0 7.4 7.1 7.0 6.8 5.8 
Education  2.8 2.8 3.0 2.8 2.5 2.3 
Human health and social work 
activities  1.6 1.5 1.6 1.5 1.5 1.5 
Financial intermediation services 
indirectly measured (FISIM)  -1.1 -1.3 -1.1 -1.2 -1.1 -1.0 
Public finance (% of GDP) (FY basis)b,c 
Domestic revenue (including revenue 
from local government authorities)  12.8 13.5 12.8 14.5 15.6 .. 
Domestic revenue  12.4 13.1 12.4 14.1 15.1 .. 
Tax revenue  11.7 12.3 11.6 12.9 13.1 .. 
Import duty and excise duty  2.8 3.0 2.9 3.2 2.9 .. 
Value added tax (VAT)  3.6 3.5 3.6 3.7 3.7 .. 
Imports  1.9 1.8 1.8 1.8 1.7 .. 
Domestic  1.7 1.7 1.8 1.9 2.0 .. 
Income tax  4.6 5.0 4.4 4.8 4.5 .. 
Other taxes  1.1 1.5 1.5 2.0 2.1 .. 
Refunds accounts  -0.4 -0.7 -0.8 -0.8 -0.1 .. 
Non-tax revenue  0.7 0.8 0.8 1.3 1.9 .. 
Revenue from local government 
authorities  0.3 0.4 0.4 0.4 0.5 .. 
Total expenditure  20.5 18.5 17.1 18.4 17.7 20.5 
Recurrent expenditure  13.7 13.3 12.8 13.9 10.9 12.9 
Development expenditure  6.8 5.2 4.4 4.5 6.8 7.6 
Deficit/surplus  -7.7 -5.0 -4.3 -3.8 -2.1 -1.9 
Total debt stock (USD million) (FY 
basis) b c 16.0 18.2 19.7 21.8 23.8 27.8 
% of GDP  38.2 39.1 40.6 48.3 48.9 47.2 
Domestic debt (% of GDP)  8.4 8.5 7.9 10.2 10.9 11 
External debt (% of GDP)  29.8 30.6 32.7 38.1 38.1 36.2 WT/TPR/S/384 • Tanzania  
 
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    2012  2013  2014  2015  2016  2017a 
Memorandum  
TZS per USD, period average  1,571.7  1,597.6  1,653.2  1,991.4  2,177.1  2,228.9  
Real effective exchange rate (% 
change - = depreciation)  16.3 7.2 2.4 -4.5 -2.9 -1.1 
Nominal effective exchange rate (% 
change - = depreciation)  3.2 2.0 -0.8 -7.4 -5.8 -3.6 
Gross official reserves (USD million)  4,068.1  4,676.2  4,377.2  4,093.7  4,325.6  5,906.2  
Reserves months of imports  3.6 4.1 4.2 4.6 5.0 6.1 
FDI in Tanzania (USD million)        
Flow 1,799.6  2,130.9  1,416.1  1,560.7  .. .. 
% of GDP  4.6 4.8 2.9 3.4 .. .. 
Stock  9,949.0  10,851.4  11,897.3  12,146.8  .. .. 
% of GDP  25.5 24.4 24.7 26.6 .. .. 
.. Not available.  
a Provisional figures for 2017.  
b Figures refer to mainland Tanzania.  
c FY, i.e. 2012 is FY 2012 -13 ending June 2013.  
Source:  Office of the Chief Government Statistician Zanzibar "Zanzibar Statistical Abstract 2017", May 2018; 
IMF online information. Viewed at: http:// elibrary -data.imf.org/DataExplorer.aspx ; and information 
provided by the authorities.  
1.6.  Tanzania's balance of payments (BOP) has fluctuated from surplus levels in 2012 -13 to deficit 
levels in the following years, until 201 6-17 when it returned to surplus.  The recent improvement in 
the BOP can be attributed to  the decline in  the current account deficit, due to falling imports of 
both goods and services (Table 1.2). Imports of goods have generally declined over the period, as 
a result of lower fuel costs. As a result, the stock of official reserves has increased and is expected 
to now cover  about six months of imports of goods and services.   
Table 1.2 BOP, 2012 -17  
(USD million)  
Item  2012  2013  2014  2015  2016  2017  
Current account  -3,769.6  -4,988.5  -4,843.9  -3,610.7  -2,107.9  -1,726.2  
  Goods: exports f.o.b.  5,889.2  5,258.1  5,194.1  5,316.8  5,661.2  4,827.8  
  Traditional  956.7  868.9  828.8  793.3  885.6  1,020.2  
  Non-traditional  4,164.4  3,703.3  3,798.6  4,040.1  4,260.9  3,368.7  
   of which:  gold 2,117.4  1,644.8  1,324.1  1,183.3  1,449.4  1,541.1  
  Unrecorded trade  768.2  685.8  566.8  483.3  514.7  438.9  
  Goods: imports f.o.b.  -10,319.1  -11,029.1  -10,917.8  -9,843.1  -8,463.6  -7,551.7  
  Services: credit  2,786.4  3,201.7  3,396.0  3,412.4  3,599.3  3,842.3  
  Transport  641.1  811.8  902.6  1,024.9  1,053.6  1,140.6  
  Travel  1,712.7  1,880.4  2,010.1  1,902.0  2,131.6  2,261.2  
  Other  432.6  509.5  483.2  485.5  414.1  440.5  
  Services: debit  -2,358.9  -2,488.5  -2,668.7  -2,629.1  -2,176.4  -2,039.9  
  Transport  -1,046.9  -1,137.8  -1,163.0  -1,047.0  -893.7  -800.3  
  Travel  -967.0  -1,033.9  -1,101.6  -1,195.3  -922.3  -807.3  
  Other  -344.9  -316.7  -404.1  -386.8  -360.4  -432.3  
  Primary income  -574.0  -705.7  -324.8  -348.1  -1,109.7  -1,206.6  
Credit  131.1  130.1  118.4  110.3  98.5 125.3  
Debit  -705.1  -835.8  -443.2  -458.4  -1,208.3  -1,332.0  
Secondary income  806.8  775.1  477.3  480.4  381.5  402.0  
Credit  912.3  836.9  535.5  560.5  452.7  485.2  
Debit  -105.4  -61.8 -58.2 -80.2 -71.2 -83.2 
Capital account  777.2  658.8  522.2  354.4  420.4  351.0  
Financial account, excl. 
reserves and related 
items  -3,879.6  -5,021.0  -3,244.5  -2,874.4  -2,321.9  -2,349.6  
Direct investments  -1,799.6  -2,087.3  -1,416.1  -1,560.6  -1,365.4  -1,180.2  
Portfolio investment s -6.1 -4.5 -11.5 -27.6 5.0 -2.9 
Other investment s -2,073.9  -2,929.3  -1,816.9  -1,286.1  -961.5  -1,166.5  
Net errors and omissions  -561.1  -183.4  825.5  182.9  -328.9  675.1  
Overall balance  326.2  507.9  -251.8  -199.1  305.5  1,649.5  
Indicators (%)        
Current account 
balance/GDP  -9.6 -11.2 -10.0 -7.9 -4.4 -3.3 
Overall balance/GDP  0.8 1.1 -0.5 -0.4 0.6 3.2 
Source:  Bank of Tanzania, Economic Bulletin , June 2018.  WT/TPR/S/384 • Tanzania  
 
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  1.7.  According to the Government's recent 2018/19 budget proposal, the overall emphasis is to 
build an industrial economy that will stimulate employment and sustainable social welfare, in 
accordance with the Tanzania Development Vision 2025. As such, its targets include increasing 
GDP slightly to 7.2%, containing inflation at a single -digit level, and increasing tax revenues to 
13.9% o f GDP, with the expectation of a budget deficit of 3.2% of GDP. The priority areas for the 
2018/19 budget include agriculture, industry, social services, and infrastructure projects.  
1.2.1   Monetary policy  
1.8.  Tanzania's monetary policy has remained unchanged during the review period and it has 
focused on price stability. It mainly aims at keeping core inflation low and stable, and providing 
enough official reserves to finance at least four months of imports of goods and services. For the 
latest period 2016/17, the Ba nk of Tanzania (BOT) had the following targets:  
• Annual growth of average reserve money of not more than 12.0 %; 
• Annual growth of broad money (M3) of not more than 12.3 %; 
• Annual growth of private sector credit of not more than 12.5 %; and  
• Maintaining gross official reserves at levels adequate to cover at least four months of 
projected imports of goods and services, excluding foreign direct investment (FDI) -related 
imports .4 
1.9.  The instruments used to manage Tanzania's monetary policy have not changed either, and 
mainly include indirect instruments such as open market operations for government securities and 
the purchase of foreign securities through foreign exchange market operations. The BOT also uses 
the discount rate, repurchase agreements a nd reverse repos, and may adjust minimum reserve 
requirements as part of its monetary policy.  
1.10.   One development during the period has been the planned migration to an interest rate -
based monetary policy framework . This is expected to begin in 2018 -19, with t he move towards 
short-term interest rates as the operational target for monetary policy . As of October 2018, this 
migration had not yet taken place.  
1.11.   Also, in December 2017, the Ministry of Finance put in place a Directive that came into force 
on 1 January  2018 to limit the use of foreign currency in domestic transactions.5 Thus, for 
Tanzanian residents, domestic transactions are required to be in shillings. However, foreigners and 
non-residents may conduct transactions in any foreign currency.  
1.2.2   Fiscal policy  
1.12.   Tanzania's fiscal balance has shown steady improvement over the period, although it 
remains in deficit; it decreased from 7.7% of GDP in 2012 to 1.9% of GDP in 2017  (Table 1.1).  
The improvements were attributed to better revenue collection, including limi ting tax exemptions, 
raising taxes in certain areas, e.g. tourism, and work on preventing evasion and corruption. In 
terms of spending, improvements were seen in the reduction of recurrent expenditures through 
reductions in the civil service workforce and limitations on allowances. Even though improvements 
have been seen in recent years, a large debt stock of about USD 27.8 million remained in 2017 , 
that accounted for nearly 47.2% of GDP. Spending on development has ranged from 4.4% to 
7.6% of GDP during th e period (Table 1.1).  
1.13.   Government revenue in Tanzania has two main sources - taxes and foreign assistance, 
mainly grants and loans. Tax revenues are the most significant, accounting for about 85% of the 
total. According to the authorities, so far, governme nt policy has been to put in place a taxation 
policy that does not detract from  growth in business and investment, and that is equitable and 
fairly applied.  It aims to raise domestic revenue s through a combination of tax and policy 
measures  (Section 2.4.5). However, according to the International Monetary Fund (IMF), further 
fiscal reforms are needed, in particular with respect to addressing the debt stock arrears, 
                                                
4 BOT, Monetary Policy Statement 2017/1 8. Viewed at: 
https://www.bot.go.tz/Publications/MonetaryPolicyStatements/MPS%20ENG%20JUNE%202018.pdf .  
5 Ministry of Finance online information. Viewed at: www.mof.go.tz/docs/TANGAZO  MATUMIZIYA 
DOLA.pdf . WT/TPR/S/384 • Tanzania  
 
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  broadening the tax base through less exemptions and simplification, and stren gthening debt 
management.6  
1.3  Developments in Trade and Investment  
1.3.1   Trends and patterns in merchandise and services trade  
1.14.   As of 2017, Tanzania ranked 112th in the world in terms of merchandise exports, and 97th in 
terms of merchandise imports; regarding comme rcial services, it ranked 89th as an exporter and 
116th as an importer.7 It accounts for a relatively small share of world trade, about 0.03% of 
exports and 0.06% of imports.8 Its trade is highly concentrated; for goods, exports are mainly 
agricultural raw  commodities and gold, while for services, they consist of travel and transport 
services for the tourism sector. Given its concentration in commodity exports, Tanzania remains 
vulnerable to world commodity prices, which have an impact on its export earning s. In terms of 
imports, goods were mainly fuels, chemicals, and agricultural products, while services were mainly 
travel and transport services.  
1.3.1.1   Merchandise trade  
1.15.   During the review period, Tanzania's merchandise export figures continued to increase in 
terms of TZS but declined in USD (Chart 1.1), in part reflecting the depreciation of the shilling 
against the dollar since about mid -2015. Tanzania's export markets are relatively concentrated 
and the top ten destinations account for about three quarters of al l exports.9 In 2017, the main 
destinations were India, South Africa, and Viet Nam (Table A1.1 and Table A1.3). EAC partners 
accounted for about 10% of Tanzania's exports in 2017.  
1.16.   There were some significant shifts in the destination of exports during the p eriod, in 
particular a decline in exports to Switzerland and an increase in those to India. Exports to 
Switzerland declined by more than half, and can be attributed to the shift in gold exports to other 
countries, including India. Exports to India increase d nearly threefold, mainly due to the growth in 
cashew nut exports but also those of gold. Exports to Viet Nam also rose significantly , from 0.5% 
to 7.3% of total exports,  on account of cashew nut exports.  Exports to China contracted over the 
period, from 9.2% to 3.3% of total exports (Table A1.1 and Table A1.3).  
1.17.   Tanzania 's re-exports are  significant , and accounted for about 16% of 2016 exports , rising 
from 3% of 2012 exports.10 According to the authorities, this increase can be attributed to a large 
increas e in the use of Export Processing Zones (EPZs) and Special Economic Zones (SEZs) during 
the review period.  
1.18.   Tanzania 's imports in 2017 originated mainly from three countries: China, South Africa, and 
India (Chart 1.1 and Table A1.6). There were a number of shifts in the origin of imports during the 
period, as imports from China and India increased significantly, while those from Switzerland 
declined. Imports increased from India on account of fuel and chemicals, mainly pharmaceuticals; 
and from China due to the growth in imports of capital goods, i.e. machinery of HS chapters 84 
and 85. Imports from Switzerland declined on account of lower fuel purchases.  
                                                
6 IMF online information. Viewed at: 
http://www.imf.org/en/Publications/CR/Issues/2018/01/16/Republic -of-Tanzania -Seventh -Review -Under -the-
Policy -Support -Instrument -Press -Release -Staff-45565 .  
7 WTO online information. Viewed at: 
http://stat.wto.org/CountryProfile/WSDBCountryPFView.aspx?Language=E&Country=TZ .  
8 WTO online information. Viewed at: 
http://stat.wto.org/CountryProfile/WSDBCountryPFView.aspx?Language=E&Country=TZ . 
9 BOT online information. Viewed at: 
https://www.bot.go.tz/Publications/EconomicAndOperationsAnnualReports/BOT%20Annual%20Report%20201
6-17.pdf .  
10 Statistical Abstract 2016 . Tanzania National Bureau of Statistics online information. Viewed at:  
https://nbs.go.tz/nbs/takwimu/Abstracts/Statistical_Abstract_2016.pdf . WT/TPR/S/384 • Tanzania  
 
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  Chart 1.1 Direction of merchandise trade, 2012 and 2017  
 
Note:  SITC Rev.3 for product groups.  
Source:  WTO Secretariat's calculations, based on data provided by the authorities.  
1.19.   Tanzania's composition of exports has remained heavily concentred in two areas, 
agricultural commodities and gold, which together accoun ted for 78% of total exports in 2017 
(Chart 1.2). Compared to 2012, the amount of gold exports remained relatively stable, while that 
of agricultural products increased from 31.5% to 42.5% of total exports (Tables A1.2 and A1.4). 
Chart 1.[TZA] Composition of merchandise trade, 2012 and 2017
2012 2017
Exports (f.o.b.), including re -exports
Agriculture  
42.5%Food 38.9%
Agricultural raw 
material
3.6%Ores and other 
minerals 
2.0%Gold, 
non-monetary
35.7%Manufactures
18.1%Other mining
1.7%
Mining 
incl. gold 
(non-
monetary)
39.4%
Total:   USD 5,733.1 million
(TZS 9,010.6 billion)Total:  USD 4,314.1 million
(TZS 9,615.5 billion)
Imports (c.i.f.)
Chemicals 10.5%
Iron and steel 
4.1%Other 0.9% 
Non-electrical 
machinery
9.9%Other manufactures
5.0%Electrical 
machines 6.5%Transport 
equipment
11.9%
Manufactures
68.1%
Chemicals 
19.4%Iron and steel 
4.0%Other 1.0% 
Non-
electrical 
machinery
12.1%Other 
manufactures
7.3% Electrical 
machines 
7.8%Transport 
equipment
9.8%
Fuels
19.7%Other semi -
manufactures
7.8%Agriculture
11.2%
Total:   USD 11,715.7 million
(TZS 18,413.6 billion)Total:   USD 7,761.3 million
(TZS 17,298.2 billion)Agriculture  
31.5%
Source:  WTO Secretariat's calculations, based on data provided by the authorities.Agriculture
11.1%Food 26.0%
Manufactures
55.4%
Fuels
32.6%Other semi -
manufactures
7.4%
Note:      SITC Rev. 3. for product groups.Agricultural raw 
material
5.5%Ores and other 
minerals 
15.6%Gold, 
non-monetary
32.5%Manufactures
18.9%Other mining
1.5%
Mining 
incl. gold 
(non-
monetary)
49.6%WT/TPR/S/384 • Tanzania  
 
- 249 - 
 
  Most of this increase for agriculture can be attributed to higher world commodity prices for key 
export crops such as cashew nuts.11  
1.20.   There was a substantial decrease in the export of ores and other minerals during the period, 
from 15.6% in 2012 to 2.0% in 2017 (Chart 1.2). This was  due to the export prohibition put in 
place on mineral concentrates in 2017 (Section 4.2.1). Exports of manufactured goods remained 
about the same as in 2012; the main exports were semi -manufactured goods, chemicals, and 
textiles and clothing.  
1.21.   The composit ion of Tanzania's imports did not change significantly since 2012 ; fuels, 
chemicals, and agricultur al products  were the main imported goods (Table A1. 5). Fuel imports , 
however , did decline, mainly due to lower world oil prices and not lower volumes importe d. 
Chemical imports mainly  comprised  medicaments and fertilizers, and agricultural imports were 
dominated by palm oil.  
                                                
11 Most prices of commodities  increased but there were decreases in some areas such as tea and sisal. 
Taken overall, the increase in commodity prices outweighed the decline.  WT/TPR/S/384 • Tanzania  
 
- 250 - 
 
  Chart 1.2 Composition of merchandise trade, 2012 and 2017  
 
Source:  WTO Secretariat's calc ulations, based on data provided by the authorities.  
1.3.1.2   Services trade  
1.22.   Tanzania maintained a surplus in trade in services during the period. This surplus widened 
significantly from USD 428 million in 2012 to USD 1,802 million in 2017, due to higher rates of 
growth of exports over imports (Table 1.3). Travel and transport services dominate Tanzania's 
services trade, at over 80%. For both imports and exports of services, transport and travel 
services were attributable to the tourism sector and to the transit of goods to neighbouring 
countries , both of which showed continued strong growth over the period. The number of tourist 
arrivals continued to climb, due to increased promotional efforts by the sector, despite increased 
Chart 1.[TZA] Direction of merchandise trade, 2012 and 2017
2012 2017
Exports (f.o.b.), including re -exports (f.o.b.)
Democratic 
Rep. of the 
Congo
3.9%
South Africa
16.4%Africa 
38.5% EU-28
11.0%Middle -East
3.3%
Other Africa
11.1%
Kenya 7.2%Asia 
39.0%
Switzerland
6.1%China 3.3%Japan 1.7%India 
22.8%
Vietnam 7.3%
Other Asia
3.8%
Other 2.2%
Total:   USD 5,733.1 million
(TZS 9,010.6 billion)Total:  USD 4,314.1 million
(TZS 9,615.5 billion)
Imports (c.i.f.)
China 9.9%
Americas 4.7%Other Asia
8.4%
United Arab 
Emirates
8.8% 
Africa 
15.8%
EU-28
12.4%India
7.5%
Asia 
36.3%
Other 2.7%
South Africa
8.0%Saudi Arabia, 
Kingdom of
2.0%
Kenya 4.8%Other Africa 3.0%
Switzerland
13.5%Japan 4.4%
Middle
East 
20.7%Other Middle East 
10.0%China 17.5%
Americas 
4.0%Other Asia
9.4%
United Arab 
Emirates
6.7% Africa 
19.4%
EU-28
14.0%India
12.7%
Asia 
44.6%
Other 2.9%
South Africa
13.7%Saudi Arabia, 
Kingdom of
5.2%
Kenya 2.5%Other Africa 3.2%
Switzerland
2.2%Japan 5.1%
Middle
East 
13.0%Other Middle 
East 1.1%
Total:   USD 11,715.7 million
(TZS 18,413.6 billion)Total:   USD 7,761.3 million
(TZS 17,298.2 billion)Democratic Rep. 
of the Congo
3.3%
Source:  WTO Secretariat's calculations, based on data provided by the authorities.South Africa
17.3%Africa 
40.6%
EU-28
13.6%Middle -East
2.3%
Other Africa
13.6%
Kenya 6.4%Asia 
27.1%
Other 2.5%
Switzerland
13.9%China 
9.2% Japan 
5.2%
India 8.4%
Vietnam 0.5%
Other Asia
3.8%WT/TPR/S/384 • Tanzania  
 
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  taxation that was expected to dampen gro wth (Section 4.4.3). The other major category of 
services trade was 'other business services'; the export of these declined over the period, while 
their imports increased.  
Table 1.3 Trade in services, 2012 -17 
(USD million and %)  
  2012  2013  2014  2015  2016  2017  
Exports (USD million)  2,786.4  3,201.7  3,396.0  3,412.4  3,599.3  3,842.3  
(% of total exports)  
Transport  23.0 25.4 26.6 30.0 29.4 29.8 
Travel  61.5 58.7 59.2 55.8 59.1 58.7 
Other services, of which:  15.5 15.9 14.2 14.2 11.5 11.5 
 Insurance and pension  1.4 1.2 1.0 1.3 1.3 0.9 
 Financial  0.4 0.9 0.7 0.5 0.5 0.7 
 Telecommunication, computer, and 
 information  1.5 1.6 1.4 1.5 0.8 0.4 
 Other business  10.9 11.0 10.4 9.7 8.2 8.9 
 Government goods and services n.i.e. 1.2 1.0 0.5 1.1 0.6 0.5 
Imports (USD million)  2,358.9  2,488.5  2,668.7  2,629.1  2,176.4  2,039.9  
(% of total imports)  
Transport  44.4 45.7 43.6 40.7 42.5 39.1 
Travel  41.0 41.5 41.3 44.8 41.3 39.7 
Other services, of which:  14.6 12.7 15.1 14.5 16.2 21.2 
 Construction  0.6 0.7 0.5 0.5 1.0 1.9 
 Insurance and pension  3.1 2.1 1.7 1.9 1.0 1.8 
 Financial  0.2 0.2 0.3 0.2 0.3 0.7 
 Telecommunication, computer, and 
information  2.0 1.7 1.5 2.1 1.7 1.3 
 Other business  6.6 5.7 8.5 7.1 9.3 12.0 
 Government goods and services n.i.e. 2.1 2.1 2.6 2.5 2.7 3.2 
Source:  BOT, Economic Bulletin , June 2018; and IMF online information. Viewed at: http://elibrary -
data.imf.org/DataExplorer.aspx . 
1.3.2   Trends and patterns in FDI  
1.23.   Tanzania generally recorded growing inflows of FDI in 2011 -13, after which there have been 
declines. Despite th ese recent decline s, Tanzania remains a top recipient of FDI in East Africa and 
one of the top ten in Africa.   
1.24.   The main sources of FDI during the period were the United Kingdom, South Africa and 
Canada,  and the sectors  that attracted the most FDI  were mining and quarrying, manufacturing, 
and financial services, including insurance activities (Table 1.4).  In general, FDI inflows are heavily 
concentrated among only a few countries, whereby the top three  sources have generally 
accounted for about 50%  of total FDI inflows  over recent years . 
1.25.   The slowdown in FDI in recent years is likely due to policy changes in the extractive sector, 
whereby new rules on local content and licensing, and restrictions on exports have been put in 
place by the Government (S ection 4.2).  According to an annual survey of mining companies, 
Tanzania's  investment attractiveness ranking dropped from 59th in 2016 to 78th in 2017.12 
1.26.   During the review period, portfolio investments have remained very low, at less than 1% of 
inflows.13 However, with developments in, and liberalization of, the capital markets, Tanzania is 
expected to attract more in the future, in particular from the EAC (Section 4.4.1.3).  
1.27.   In Zanzibar, FDI flows have generally increased over the period. The main sectors att racting 
the most investment inflows were hotels and restaurants, followed by real estate.  
                                                
12 Fraser Institute online information. Viewed at: https://www.fraserinstitute.org/studies/annual -survey -
of-mining -companies -2017.  
13 BOT online information. Viewed at : 
https://www.bot.go.tz/publications/TZInvestmentReports/TIR2013%20FINAL%20PUBLISHED%20REPORT.pdf .  WT/TPR/S/384 • Tanzania  
 
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  Table 1.4 FDI stock in Tanzania, by source and by activity, 2012 -15 
 2012  2013  2014  2015  
Total ( USD billion)       9.9     10.9     11.9     12.1  
  (% of total)  
By source country      
United Kingdom  18.3 22.8 22.3 26.6 
South Africa  25.3 19.6 19.1 16.9 
Canada  10.5 11.0 11.0 4.3 
Norway  1.6 4.9 7.3 9.5 
Mauritius  4.8 5.3 5.3 4.5 
Netherlands  2.5 4.9 4.3 6.3 
Kenya  4.9 3.9 4.2 3.3 
Switzerland  4.4 2.3 1.3 1.4 
United States  2.1 2.2 2.1 1.2 
Australia  0.7 2.7 2.5 1.4 
Luxembourg  0.7 2.7 2.4 0.7 
China  0.4 1.7 1.6 1.3 
Nigeria  0.1 0.3 0.4 3.9 
Memo:      
   SADC  31.3 26.2 25.5 22.8 
   EAC 5.4 3.9 4.2 3.5 
By activity      
Mining and quarrying  ..     45.0      44.3      54.8  
Manufacturing  ..     12.7      11.5      12.5  
Financial and insurance activities  ..     11.2      11.7       9.9  
Electricity and gas  ..      9.2      11.3       1.8  
Information and communication  ..      6.5       6.4       6.2  
Wholesale and retail trade  ..      4.2       4.0       4.5  
Agriculture, forestry and fishing  ..      4.7       4.1       3.0  
Accommodation and food service activities  ..      1.5       1.5       1.8  
Real estate activities  ..      1.3       1.6       1.3  
Other  ..      3.7       3.6       4.4  
.. Not available.  
Source:  Information provided by the authorities.  
 WT/TPR/S/384 • Tanzania  
 
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  2  TRADE AND INVESTMENT  REGIMES  
2.1  General Framework  
2.1.  The Act of the Union of the Tanganyika and Zanzibar of 1964 established the United Republic 
of Tanzania in 1964.1 It provided the framework for the Government, and also  for the modification 
and amendment of the Constitution to give effect to the Union and for matters incidental thereto. 
The schedule attached to the Act gives the Articles of the Union. For administrative reasons, 
Tanzania is divided into 30 regions, 25 on  the mainland and 5 on the islands of Zanzibar.  
2.2.  The country continues to be guided by its Constitution of 1977, which outlines the United 
Republic, fundamental objectives, basic rights and duties, the executive, the legislature, the 
Revolutionary Governmen t of Zanzibar, dispensation of justice, human rights, finances, public 
authorities, and the armed forces.2 The Constitution has been amended 14 times, most recently in 
2005.  
2.3.  Article 4 of the Constitution sets out state authority or powers among the Govern ment. It 
provides that two organs are vested with powers in each area, i.e. the judiciary, legislative, and 
executive areas. Thus, the executive powers are shared between the Government of the United 
Republic and the Revolutionary Government of Zanzibar; t he judicial powers are divided between 
the Judiciary of the United Republic and the Judiciary of the Revolutionary Government of 
Zanzibar; and the legislative and supervisory powers over public affairs are shared between the 
Parliament of the United Republ ic and the House of Representatives of Zanzibar. Article 4 further 
sets out the distinction between Union and non -Union matters, with Union matters being 
designated in the First Schedule to the Constitution and all others being designated as non -Union 
matters (Table 2.1).  
Table 2.1 Union and non -Union matters  
Union matters  Non-Union matters  
1. The Constitution of Tanzania and the Government of 
the United Republic  All other matters not listed (e.g. local government, 
investment, government procurement, competition, 
intellectual property, road maintenance, agriculture, 
prisons, land, tourism, etc.)  2. Foreign affairs  
3. Defence and security  
4. Police  
5. Emergency powers  
6. Citizenship  
7. Immigration  
8. External borrowing and trade  
9. Service in the Government of the United Republic  
10. Income tax payable by individuals and by 
corporations, customs duty and excise duty on goods 
manufactured in Tanzania collected by the Customs 
Departm ent 
11. Harbours, matters relating to air transport, post and 
telecommunications  
12. All matters concerning coinage and currency for the 
purposes of legal tender (including notes), banks 
(including savings banks) and all banking business; 
foreign excha nge and exchange control  
13. Industrial licensing and statistics  
14. Higher education  
15. Mineral oil resources, including crude oil, other 
categories of oil or products, and natural gas  
16. The National Examinations Council of Tanzania and all 
matters connected with its functions  
17. Civil aviation  
18. Research  
19. Meteorology  
20. Statistics  
21. The Court of Appeal of the United Republic  
22. Registration of political parties and other matters 
related to political parties  
Source:  The Constitution. Ministry of Constitutional and Legal Affairs online information. Viewed at: 
http://www.sheria.go.tz/uploads/publications/en1499671152 -
the%20constitution%20of%20the%20united%20republic%20of%20tanzania%201977.pdf . 
                                                
1 WIPO online information. Viewed at: http://www.wipo.int/wipolex/en/details.jsp?i d=11127 .  
2 Ministry of Constitutional and Legal Affairs online information. Viewed at: 
http://www.sheria .go.tz/uploads/publications/en1499671152 -
the%20constitution%20of%20the%20united%20republic%20of%20tanzania%201977.pdf .  WT/TPR/S/384 • Tanzania  
 
- 254 - 
 
  2.4.  There have been no significant changes in the government framework since t he last Review, 
except for the composition of the National Assembly. The executive consists of the President, the 
Vice-President, the P rime Minister, the C abinet and the Government . The President of the United 
Republic is elected by popular vote every five years, and is the Head of State, the Head of the 
Government and the Commander -in-Chief of the armed forces, and also appoints the Prime 
Minister. The Vice -President must come from  the other part of the Union. The Cabinet consists of 
the Vice -President, the Prime Minister, the President of Zanzibar, and all the ministers.3 
2.5.  Tanzania's legislative branch is comprised of the Parliament, which consists of the President 
of the Republic a nd the National Assembly. The National Assembly currently has 393 seats; 10 are 
appointed by the President, 5 are appointed by the House of Representatives of Zanzibar, 113 are 
allocated to women nominated by their respective parties, 1 is the Attorney Gen eral, and the 
remainder are elected by popular vote.4 In the legislative process, a bill must be drafted and 
approved by Cabinet before being published and read before the Assembly. After the readings and 
general debate, the bill must be passed and assente d to before becoming an Act of Parliament. 
Acts regarding Union matters passed by the National Assembly are valid for the Republic. The 
Zanzibar House of Representatives enacts legislation on non -Union matters.  
2.6.  The judiciary is separate for the Mainland an d Zanzibar but they are similar in structure and 
function. The Court of Appeal, the highest level, exists only on the Mainland, as per Article 108 of 
the Constitution; thus, Zanzibar appeals at that level are heard by this Court of Appeal. There are 
four l evels of courts below the Court of Appeal: primary courts, district courts, resident magistrate 
courts, and the High Court.5 The High Court has special divisions for commercial, land, and labour 
matters, but the lower courts are not specialized. The legal system is largely based on common 
law but also accommodates Islamic and customary laws.  
2.2  Trade Policy Formulation and Objectives  
2.7.  The main overall government policy is guided by the Tanzania Development Vision 2025 and 
the Zanzibar Development Vision 2020. Tanzania continues to work towards raising the general 
standards of living of Tanzanians, with the goal of achieving the level of a medium -income 
developing country and the Millennium Development Goals. A ccord ing to  the National Development 
Vision 2025, th e goal of trade policy is to raise efficiency and widen linkages in domestic 
production , and build a diversified competitive export sector to stimulat e higher rates of growth 
and development . The Government has furthermore identified the following trade pr iorities for the 
period under review:  
• To increase GDP and trade growth rates;  
• To enhance standards, trade rules and regulations;  
• To develop the private sector and formalize the economy;  
• To improve participation in the rules based multilateral trading system;  
• To address cross -cutting issues: e.g. environment, gender and HIV -AIDS;  
• To develop infrastructure;  
• To develop different services, such as financial, communication, health, tourism, education 
and transport;  
• To improve intellectual property rights (I PRs), traditional knowledge and technology 
transfer;  
• To improve trade, investment and global value chains;  
• To develop the domestic market and integrate into the international market; and  
• To develop fiscal policy.6 
 
2.8.  In addition, the Mainland  is still guided  by its National Trade Policy, 2003, whose main 
objective is "to identify ways and means of navigating through a viable and steady path towards 
competitive export -led growth for the realisation of the goal of poverty eradication".7 This policy 
identifies a  number of issues and developments, and outlines the policy environment and 
                                                
3 The Constitution. Ministry of Constitutional and Legal Affairs online information. Viewed at: 
http://www.sheria.go.tz/uploads/publications/en1499671152 -
the%20constitution%20of%20the%20united%20republic%20of%20tanzania%201977.pdf .  
4 Parlia ment of Tanzania online information. Viewed at: http://www.parliament.go.tz/pages/structure .  
5 The United Republic of Tanzania Judiciary online information. Viewed at: 
http://www.judiciary.go.tz/judiciary -hierarchy/ .  
6 Information provided by the authorities.  
7 TZOnline online information. Viewed at: 
http://www.tzonline.org/pdf/tradepolicyforacompetitiveeconomy.pdf .  WT/TPR/S/384 • Tanzania  
 
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  instruments to address them. It furthermore presents an implementation matrix and action plan. 
Some of the issues raised in the policy to be addressed include: trade -related enviro nmental and 
labour issues; trade and electronic commerce; the tourism services industry; intellectual property 
(IP) services; regional economic cooperation; the improvement of participation in the multilateral 
trading system; liberalization and globaliz ation; and trade development and promotion.  
Implementation of many of these issues is being undertaken under sectorial initiatives.   
2.9.  In 2013, Zanzibar reviewed its Trade Policy of 2006 , to evaluat e its implementation and 
identify gaps that needed  to be filled . Zanzibar's policy has focused on creating a globally 
competitive export -oriented economy,  and generating higher -level and sustainable livelihoods 
through trade that recognizes the role of micro -, small - and medium -enterprises (MSMEs) and 
vulnerable group s through structural transformation and by integratin g them into regional and 
global value chains . Thus, its trade priorities for 2012 -17 were to create a  conducive environment 
for industries, SMEs and related  entities; reform the business licensing regime;  implement the 
Business Environment Strengthening for Tanzania (BEST)  project; c onstruct an International Trade 
Fair Ground s and Exhibition Centre ; establish the Start-up Technology and Business Incubator  
project; and implement an SEZ Development Strategy. These elements have been achieved , inter 
alia, through the establishment of a n SME industrial development agency for promoting and 
supporting SMEs; t a Business Licensing Regulatory Council under the Busines s Lice nsing 
Regulatory System Act No. 13 of 2013 for streamlining the business licensing regime; and 
business incubators.  
2.10.   During the review period, Tanzania implemented the Tanzania Trade Integration Strategy, 
2009-13, to strengthen trade sector developmen t and identify development needs and priorities 
within the Tanzanian trade sector.8 An export strategy was also developed in 2009 for the period 
2010-14, in order to support export -led growth and to build upon the National Trade Policy.9 The 
policy targete d a number of priority sectors, including agriculture, tourism, mining, and forestry 
and bee -keeping, to increase export competitiveness and boost exports. A separate Export 
Development Strategy was developed for Zanzibar. According to the authorities, bot h strategies 
continue to guide Tanzania in their respective areas.  
2.11.   Tanzania's Ministry of Industry, Trade, and Investment (MITI) has been the key ministry 
involved in developing Tanzania's main trade policy instruments. Other ministries and government 
agencies have also aided in the development of these and related policies. The MITI also oversees 
investment policy. Other ministries oversee many of the sectoral issues (Section 4). The Ministry 
of Trade and Industry in Zanzibar is the key ministry in Zanzib ar involved in trade policy 
formulation and the implementation of trade policy instruments for Zanzibar.  
2.2.1   Private sector involvement  
2.12.   In 2001, pursuant to Presidential Circular No. 1, Tanzania established the Tanzania National 
Business Council (TNBC) as an i nstitution providing public -private sector dialogue. It is established 
under the President of the Republic of Tanzania, and has a Council, Executive Committee, and a 
number of working committees. It is comprised of 20 members from the Government and 20 fro m 
the private sector, i.e. a total of 40 members.10 The TNBC has created a number of working -level 
dialogue groups to carry out its functions, in particular, the Local Investors Round Table, the 
International Investors Round Table, and the Smart Partnership  Dialogue.11 The various groups 
have taken up matters to improve the business environment, promote investment, and provide 
input into government policies. While trade has not been the focus, the groups have nevertheless 
provided a forum for raising trade is sues and discussing matters with the Government. For 
example, matters have been raised with respect to the EAC CET.12 
                                                
8 Development Partners Group Tanzania online information. Viewed at: 
http://www.tzdpg.or.tz/fileadmin/_migrated/content_uploads/MIT_Trade_Integration_Strategy_2009_ -
_2013.pdf .  
9 Development Partners Group Tanzania online information. Viewed at: 
http://www.tzdpg.or.tz/fileadmin/_migrated/content_uploads/Tanzania_National_Export_Strategy_ -
_Draft_Final_Report_May_2009.pdf .  
10 TNBC online information. Viewed at:  http://tnbc.go.tz/v2/?page_id=656 .  
11 TNBC online information. Viewed at: http://tnbc.go.tz/v2/?page_id=893 .  
12 TNBC online information. Viewed at: http://tnbc.go.tz/v2/wp -content/uploads/2015/06/6th -IIRT-
Meeting -Proceedings.pdf .  WT/TPR/S/384 • Tanzania  
 
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  2.13.   In 2017, Zanzibar established the Zanzibar National Business Council (ZNBC) pursuant to 
the National Business Council Act.13 The Council ini tiates dialogue between the public and the 
private sectors, particularly on matters relating to economic management and development.14 Its 
remit is to promote public -private partnerships (PPPs), conduct research and surveys, provide a 
platform for dialogue,  provide recommendations on policies or proposals for business and 
economic development, liaise with other business councils outside Zanzibar, and establish 
committees to carry out specific functions. One of the committees established under the Act is the 
Economic, Trade, Investment, and Tax Committee, which is tasked with making proposals to 
enhance the trade, industry, and investment regimes. The ZNBC is financed from appropriated 
funds from the House of Representatives of Zanzibar, and donations and cont ributions from the 
private sector. A  number of international trade matters have been taken up by the Council , such 
as EAC customs matters , in order to get the  private sectors ' views and develop a position on the 
matter.  
2.3  Trade Agreements and Arrangements  
2.3.1   WTO  
2.14.   The United Republic of Tanzania has been a Member of the WTO since 1995, and has 
participated in various work of the WTO, including committees, dispute settlement, and 
negotiations. It was last reviewed by the TPRB in 2012, and has undergone three Revi ews thus far. 
During the review period, Tanzania did not submit any formal documents to the WTO negotiating 
groups, but has been involved in informal discussions in the Rules or Origin Committee regarding 
Paragraph 1.1 of the Nairobi Decision on preferenti al rules of origin. Tanzania has been active in 
the TBT Committee by submitting a joint document with other EAC partners.  
2.15.   The acceptance of the Trade Facilitation Agreement remains an outstanding issue 
(Section  3.1.1.1). Tanzania notified the WTO of its ac ceptance of the Protocol amending the TRIPS 
Agreement in March 2016.15  
2.16.   Tanzania did not use the WTO's Dispute Settlement process during the review period and 
has never been a complainant nor a respondent; however, it participated as a third party to three 
disputes in the past, the latest in 2006.16. 
2.17.   Tanzania's notifications during the review period cover mainly standards, whereby 
approximately 184 notifications have been received (Table 2.2). There is, however, room for 
improvement in several areas where not ifications have never been made or have been outstanding 
for many years. Tanzania completed the procedures to implement the HS2007 and HS2012 
changes into its WTO schedule of commitments during the period, and these have been certified.17 
Table 2.2 Selected notifications to the WTO, 1 January 2012 -October 2018  
WTO 
Agreement  Description  Document symbol  Date  
Agreement on Sanitary and Phytosanitary Measures  
Article 7 
Annex  B Sanitary and phytosanitary  
regulations  G/SPS/N/TZA/2  24/07/2017 
 
Agreement on Technical Barriers to Trade  
Article 2.9  Technical regulations  Approximately 184 notifications 
received as of 23 October 2018, 
please see http://tbtims.wto.org/   
Trade Facilitation Agreement  
Section II, 
para. 2.1  Notification of Category A 
commitments  WT/PCTF/N/TZA/1  13/05/201 5 
                                                
13 Zanzibar Act No. 10/2017. Zanzibar House of Representatives online information. V iewed at: 
http://www.zanzibarassembly.go.tz/act_2017/act_10.pdf .  
14 The new Council has been re -established pursuant to the new Act; a similar Council was in operation 
previously.  
15 WTO document WT/Let/1139.  
16 WTO online information. Viewed at: 
https://www.wto.org/english/thewto_e/countries_e/tanzania_e.htm .  
17 WTO documents WT/Let/1299 and WT/Let/901.  WT/TPR/S/384 • Tanzania  
 
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  WTO 
Agreement  Description  Document symbol  Date  
Agreement on Subsidies and Countervailing Measures  
Article 25.11 - 
semi-annual 
report  Countervailing duty actions (taken 
within the preceding six months)  G/SCM/N/ 235/Add.1  
 24/04/201 2 
 
Source:  Notifications to the WTO compiled by the WTO Secretariat.  
2.3.2   Regional and preferential agreements  
2.18.   Tanzania  participates in a number of regional trade agreements, including the East African 
Community (EAC);  the South African Development Community ( SADC ); and the EAC-COMESA -
SADC  Tripar tite framework  (see main report). As of October 2018, Tanzania had not signed the 
Economic Partnership Agreement with the European Union.18 Tanzania is a beneficiary of non -
reciprocal unilateral trade preferences , such as Everything But Arms (EBA) by the European Union, 
the African Growth and Opportunity Act (AGOA) of the United States,  GSP schemes  from several 
countries, and d uty-free quota-free marke t access for LDCs from a number of  countries . All these 
arrangements provide Tanzania with varying levels of improved market access opportunities into 
the respective markets.  In March 2018, Tanzania signed the Kigali Declaration for the launch of 
the Afric an Continental Free Trade Agreement (AfCFTA).19  
2.19.   In January 2017, Tanzania and Zambia signed and implemented a Simplified Trade Regime 
Agreement .20 The Agreement is similar to the regime of the EAC (see main report), in that it is a 
simplified trade regime ( STR) aimed at facilitating cross -border trade for small scale traders. The 
thresholds are similar, i.e. duty -free imports for goods with a total value of USD 2,000 or less.21 
However, there are some differences, in that the list of products covered is consi derably less, 
comprising 22 items, compared to that of the EAC (370), and the products are subject to the rules 
of origin as defined in the Protocol on Rules of Origin of SADC.22 Goods traded under the regime 
are still subject to fiscal charges and must be compliant with any relevant standards; however, 
they are generally not subject to quantitative restrictions (QRs). Safeguard measures, anti -
dumping, and countervailing measures may be applied to the products if the Parties follow the 
procedures pursuant to  WTO rules. The Agreement also has provisions for cooperating on customs 
matters, cooperation on and reducing smuggling, and settlement of disputes.23 
2.4  Investment Regime  
2.20.   Attracting foreign investment remains a priority for Tanzania as it pursues its developm ent 
agenda and it encourages in particular industrialization. It has put in place framework agreements 
on investment, and offers various incentives and the services of investment promotion agencies. 
Investment in the United Republic of Tanzania is mainly a  non-Union matter, thus there are 
different laws, policies, and practices for the Mainland and Zanzibar. However, international 
agreements on investment are covered as Union matters and therefore apply to both regions. 
Policy matters concerning investment are handled by the MITI on the Mainland and by the Ministry 
of Finance and Planning for Zanzibar. Both the Mainland and Zanzibar have their respective 
investment promotion bodies, the Tanzania Investment Centre (TIC) and the Zanzibar Investment 
Promotion A uthority (ZIPA).  
                                                
18 Viewed at: https://www.tanzaniainvest.com/industry/interview -adelhelm -meru-permanent -secretary -
ministry -industry -trade-investment . 
19 Tralac online information. Viewed at: https://www.tralac.org/resources/by -region/cfta.html .  
20 MITI online information. Viewed at: 
http://www.mit.go.tz/uploads/files/Simplified%20Trade%20Regime%20(STR)%2027.01.2017%20Signed.pdf .  
21 Tralac online information. Viewed at: https://www.tralac.org/publications/article/12825 -informal -
cross-border -trading -review -of-the-simplified -trade-regimes -in-east-and-southern-africa.html .  
22 The list of products covered, as defined in the Appendix, includes: animal neck bells, bananas, 
cabbages, carrots, cassava meal, clay pots, curios, groundnuts, handicrafts, hoes/axes, instrumental drums, 
iron drums, millet, onions, plo ughs and parts, potatoes, rice, tomatoes, sardines, beans, finger millet, and bar 
soap.  
23 MITI online information. Viewed at: 
http://www.mit.go .tz/uploads/files/Simplified%20Trade%20Regime%20(STR)%2027.01.2017%20Signed.pdf .  WT/TPR/S/384 • Tanzania  
 
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  2.4.1   Overview  
2.21.   Investment laws and a number of bilateral investment treaties comprise the main elements 
of Tanzania's investment framework. The Mainland's Investment Act of 1997 continues to provide 
the main legal structure for the investment re gime, by making provisions related to: the 
establishment of the TIC; investment opportunities; investment benefits and guarantees; transfer 
of capital profits; guarantees against expropriation; dispute settlement; and technology transfer 
agreements.24 The E AC has developed a Model Investment Code that provides a framework for 
EAC partners to incorporate into their national laws (see main report). There have been  a number 
of amendments  to the Act  in recent years but most were minor.  However, the 2014 amendmen ts 
changed the benefits for strategic or major investors.  Thus, to qualify as a strategic investor  on 
the Mainland , the threshold remained at  USD 20 million for a Tanzani an enterprise but was 
increased to  USD 50 million for a for eign investor or joint vent ure.25 For Zanzibar, the threshold 
for strategic investors is USD 100 million or USD 50 million for disadvantaged regions. The Act also 
has a number of regulations that further expand on the provisions in the Act.  
2.22.   Zanzibar's Investment Promotion and Protect ion Act (ZIPPA), 2004 provides a similar legal 
framework for investment in Zanzibar.26 There are provisions for the establishment of the ZIPA, 
the treatment of investors, the issuance of certificates to approved enterprises, benefits and 
incentives, benefit s and guarantees for investors, and the establishment of free ports and free 
economic zones. Two minor amendments were made to the Act in 2013 and 2016. Section 19 was 
amended to reduce the gra ce period for the payment of the land lease from 18 months to 6  
months and Section 20 was amended regarding  administrative matters.  
2.23.   Tanzania has 11 bilateral investment treaties (BITs), the most recent of which entered into 
force in 2014 with China (Table 2.3). According to the authorities, new agreements have been 
concluded but have not yet entered into force with Oman, Singapore, Thailand, Kuwait, Iran, and 
Zimbabwe. As of August 2018, negotiations were ongoing with Algeria, Bangladesh, Belgium -
Luxembourg, France, India, Japan, Libya, Malawi, Malaysia, Qatar, the Slo vak Republic, the United 
Arab Emirates, and Vietnam. A number of double taxation agreements are also in place.27 All these 
agreements are applicable to both the Mainland and Zanzibar. Tanzania is also a member of the 
Multilateral Investment Guarantee Agency  (MIGA) , the Convention of Recognition and Enforcement 
Arbitration Award, and the International Centre for Settlement of Investment Disputes (ICSID).   
Table 2.3 BITs, as at November 2018  
Partner  Date of entry  into force  
Canada  09/12/2013  
China  17/04/2014  
Denmark  21/10/2005  
Finland  30/10/2002  
Germany  12/07/1968  
Italy 25/04/2003  
Mauritius  02/03/2013  
Netherlands  01/04/2004  
Sweden  01/03/2002  
Switzerland  06/04/2006  
United Kingdom  02/08/1996  
Source:  Information provided by the authorities , and UNCTAD online information. Viewed at: 
http://investmentpolicyhub.unctad.org/IIA/CountryBits/222 .  
2.24.   The Mainland's National Investment Prom otion Policy dates from 1996 and continues to 
provide policy direction for the sector, although the authorities have recognized a number of short -
comings with the passage of time. As such, they are working on a new investment policy; as of 
August 2018, it was still a work in progress. The 1996 Policy provides a vision for future 
investments that focuses on building local capacity, promoting export -led investments, alleviating 
poverty, and exercising good governance.  
                                                
24 The Tanzania Investment Act, 1997. eRegulations online information. Viewed at : 
http://tanzania.eregulations.org/media/INVESTMENT%20ACT.pdf . 
25 The Finance Act, 2014. Tanzania Revenue Authority (TRA) online information. Viewed at: 
http://www.tra.go.tz/tax%20laws/finance%20act%202014.pdf .  
26 ZIPA online information. Viewed at: http://www.zanzibarinvest.org/zipanew/pdf/ZIPA_act_2004.pdf .  
27 Canada, Denmark, Fi nland, India, Italy, No rway, South Africa, Sweden, and Zambia. TRA online 
information. Viewed at: https://www.tra.go.tz/index.php/double -taxation -agreements .  WT/TPR/S/384 • Tanzania  
 
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  2.25.   The Zanzibar Investment Policy (ZIP) was formulated in 2004 with the aim of diversifying 
the economy and obtaining high sustainable growth to enable Zanzibar to reach its Zanzibar 
Development Vision 2020 goals. The policy sets out  general  and sector -specific investment policy 
objectives and strat egies. It also contains many of the same visions for the future on investment 
as the Mainland's policy.  
2.4.2   Investment restrictions  
2.26.   In general, the investment climate remains open, and there are no overriding rules that 
prohibit foreigners from investing. Furt hermore, for inward investment, Tanzania allows foreign 
exchange and capital transactions with few restrictions, and profits, dividends and capital may be 
repatriated. However, there remain some restrictions on outward investments, e.g. on capital 
controls .28 However, Tanzania does have some laws or other rules that prevent foreigners from 
operating in certain sectors or put restraints on company operations. Also, the licensing 
requirements in many sectors add additional costs or fees for foreign licensees c ompared to 
Tanzanian nationals, as the fee structure is often higher for foreigners.  
2.27.   The Tanzania Investment Act and the Land Act of 1999 restrict the purchase of land by non -
citizens, thus the occupation of land by non -citizen investors is restricted to l ands for investment 
purposes. Land may be leased for up to 99 years, and there are a number of opportunities for 
foreigners to lease land, including through the TIC, which has designated specific plots to be made 
available to foreign investors. Zanzibar ha s similar land restrictions prohibiting foreign ownership.  
2.28.   There are a number of other areas where foreign investors may not operate or do business 
in Tanzania, or where restrictions are prohibitive. In the tourism sector, certain operations are 
restricted  to Tanzanians or Zanzibaris (Section 4.4.3). Investment in the extractive sectors, i.e. 
mining and energy, is increasingly subject to local content requirements and the mandatory listing 
of shares on the capital markets (Section 4.2). The fisheries sector  has discriminatory treatment 
on fishing vessels and licensing practices that make foreign involvement in the sector difficult or 
prohibitive.  
2.29.   Investment restrictions have traditionally limited foreigners' ability to purchase shares on 
the Dar es Salaam St ock Exchange (DSE) to a maximum ceiling of 60% of total securities issued. 
The Foreign Exchange (Listed Securities) (Amendment) Regulations 2014 (FELSAR) and the 
Foreign Exchange (Amendment) Regulations 2014 (FEAR) have partially lifted this restriction (s ee 
capital market, Section 4.1.1.3) but restrictions still remain on Government securities except with 
respect to EAC residents.  
2.30.   In Zanzibar, certain businesses are reserved for Zanzibaris, these include barbershops, 
hairdressing, retail shops, beauty salo ns, tour operations, and restaurants, but ZIPA may set aside 
further sectors to only local investors. Further, the Zanzibar Investment Promotion and Protection 
Act requires that all foreign investors open a resident bank account in foreign currency with a bank 
in Zanzibar and if foreign currency transactions are conducted, they shall be through a foreign 
currency account established with a bank in Zanzibar. The Mainland also has similar restrictions on 
the operation of small businesses, i.e. barbershops, et c. 
2.4.3   Incentives and promotion  
2.31.   TIC and ZIPA are the key organisations involved in investment promotion for the Mainland 
and Zanzibar, respectively. They both promote and facilitate investment and aid investors in many 
areas, e.g. obtaining permits, acquiring land, and problem solving. TIC and ZIPA both offer "one 
stop shops " for investors to get all the regulatory and other processes done for their investment 
project. They also provide a host of other services (Table 2.4).  
2.32.   Once a company submits its proposal a nd paperwork to TIC or ZIPA and it is approved, an 
investment certificate will be issued that provides a number of services and incentives. For the 
Mainland a minimum investment threshold of USD 100,000 applies  for Tanzanian citizens and 
USD 500,000 for fo reign investors in order to obtain a certificate. In Zanzibar, for the hotel and 
tourist sector the minimum investment is USD  2.5 million for foreigners and USD  300,000 for 
citizens; all other sectors the minimum investment is USD  300,000 for foreigners an d 
USD 100,000 for citizens. There is also a second category, strategic investor, in which the 
thresholds are much higher but a more generous incen tive package is available (Section  2.4.1).   
                                                
28 Information provided  by the authorities.  WT/TPR/S/384 • Tanzania  
 
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  2.33.   There is a package of incentives for investors that includes access to the one stop shop, 
zero import  duties on project capital goods and certain other designated articles, 10% import duty 
on semi -processed goods, t he recognition of private property and protection against any non -
commercial risks , refund scheme for excise duty paid on fuel purchased , 100% capital expenditure 
for the m ining and a gricultural  sectors, VAT deferment on capital goods, and 50% capital 
allowances under income tax law for the first year under certain conditions.29 Separate incentives 
are avai lable to mining and energy investors through the Mining Act and Petroleum Act (Sections 
4.2.1 and 4.2.2). The Mainland typically approves about 800 investment projects per year and 
these have been concentrated in the communication, manufacturing, and econo mic infrastructure 
sectors (Table 2.5). Since its inception ZIPA has approved 677 investment projects with a capital 
investment of about USD 5.8 billion.30 Most of these have been concentrated in hotels & 
restaurants, and t ransport, storage, and communicati ons sectors (Table 2.6).  
2.34.   On the Mainland there are 21 sectors designated as priority sectors in which the 
Government is focusing its promotional efforts, these include: agriculture and livestock 
development, natural resources, tourism, manufacturing, oil a nd gas exploration and production, 
mining, transportation, real estate, services, information and communication technologies, 
financial institutions, telecommunication, energy, broadcasting, education sector, health sector, 
insurance services, security ser vices, construction industry, water and sanitation, and integrated 
waste management.  
2.35.   During the review period there have been several amendments to the incentive scheme of 
the Mainland. Some exemptions  were reduced or removed such as cement and steel roun d rods 
were no longer  deemed capital goods under the TIC. Also, all tax exemptions on investments 
granted to telecommunication firms were removed .31  
Table 2.4 List of services offered by the TIC, by timeframe and cost, 2016  
Service  Delivery timeframe  Feea 
TIC application form  Immediately  USD 100  
Investment guide  Immediately  Free  
Provision of Investment Act  Immediately  Free 
Certificates of incentives  7 days  USD 1,000  
VAT registration  7 days  Free 
Tax clearance  1 day  Free 
Tax identification number  1 day  Free 
Customs approval import list  14 days  Free 
Business name search  1 day  Free 
Business licensing  1 day  Fee varies  
Company registration  3 days  TZS 50,000 - 371,200  
Residence permit Class A (East African nationals)  14 days  USD 1,705  
Residence permit Class A (other East African nationals)  14 days  USD 3,355  
Residence permit Class B (East African nationals)  14 days  USD 605  
Residence permit Class B (other East African nationals)  14 days  USD 2,255  
Special pass for Classes A and B  1 day  USD 660  
Work permit Class B - labour  7 days  Free 
Linkages with government institutions  7 days  Free 
a 10% of all fees paid to the TIC go towards respective costs for all services.  
Source:  TIC. 
Table 2.5 Number of projects approved through the TIC by sector, Mainland, 2012 -13  
 2012  2013  
Projects  
Employment  
Investment 
(TZS mill.)  Projects  
Employment  
Investment 
(TZS mill.)  Total  
Local  
Foreign  
Joint  
Total  
Local  
Foreign  
Joint  
Agriculture and 
livestock  60  28  19  13  51,939  821.8  43  15  12  16  20,635  529.2  
                                                
29 TIC online information. Viewed at: http://www.tic.co.tz/selectedIncentives .  
30 ZIPA online information. Viewed at: http://www.zanzibarinvest.org/zipanew/pdf/investguide2018.pdf .  
31 Tanzania Revenue Authority ( TRA) online information.  Viewed at: 
http://www.tra.go.tz/publications/Taxes%20and%20Duties.pdf .  WT/TPR/S/384 • Tanzania  
 
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   2012  2013  
Projects  
Employment  
Investment 
(TZS mill.)  Projects  
Employment  
Investment 
(TZS mill.)  Total  
Local  
Foreign  
Joint  
Total  
Local  
Foreign  
Joint  
Natural 
resources  2  2  0  0  110  5.6  6  2  3  1  2,526  73.3  
Tourism  209  144  31  34  10,788  741.2  186  93  38  55  10,745  664.3  
Manufacturing  225  86  74  65  24,039  2,976.4  258  95  75  88  26,927  2,343.4  
Petroleum 
products and 
mining  1  0  0  1  64  8.1  2  -  -  2  98  2.6  
Commercial 
buildings  128  78  30  20  57,541  838.9  132  77  20  35  9130  1,728.0  
Transport  163  92  35  36  17,076  855.0  182  107  24  51  16,473  842.4  
Services  15  1  7  7  1,892  424.3  8  1  3  4  570  29.9  
Computer  2  1  0  1  67  7.0  1  -  1  -  50  1.9  
Financial  7  3  2  2  755  67.1  4  1  -  3  6,979  9.9  
Communication  4  2  0  2  803  2,969.7  9  1  2  5  2,244  944.7  
Human 
resources  33  20  4  9  1,781  95.0  32  14  5  13  2,813  177.2  
Energy  7  2  2  3  4,529  1,344.1  8  4  -  5  2,593  823.1  
Economic 
infrastructure  7  5  1  1  2,901  261.5  7  2  -  5  100,369  80,035.1  
Broadcasting  6  5  0  1  127  4.5  7  5  1  1  335  31.3  
Total  869  469  205  195  174,412  11,420.1  885  417  184  284  202,487  88,236.3  
Source:  TIC. 
Table 2.6 Approved investment projects, by sector, Zanzibar, 2015 -17, cumulative  
(USD 1,000 )  
Sector  2015  2016  2017  
 No. Capital  No. Capital  No. Capital  
Agriculture, hunting, forestry  30 55,973  30 55,973  32 136,818  
Fishing  2 2,669 3 12,669  4 62,669  
Manufacturing  50 204,988  51 205,958  56 209,884  
Electricity, gas and water supply  1 2,394  1 2,394  1 2,394  
Construction  5 4,075  6 6,375  6 6,375  
Wholesale and retail trade  54 73,858  54 73,858  54 73,584  
Hotels and restaurants  335 2,070,707  344 2,200,785  361 2,309,293  
Transport, storage, and 
communications  35 1,355,645  35 1,355,645  36 1,361,345  
Financial intermediation  6 639,345  6 639,345  6 639,345  
Real estate renting and business 
activities  34 743,382  39 .. 43 675,543  
Education  8 9,287  8 9,287  8 9,287  
Health and social work  9 45,928  9 45,928  9 45,928  
Recreational and sporting  32 15,276  32 15,276  32 15,276  
Tour operation  7 5,972  9 6,292  9 6,292  
Total  608 5,229,499  627 4,629,785  657 5,554,033  
.. Not available.  
Source:  ZIPA online information. Viewed at: http://www.zanzibarinvest.org/zipanew/pdf/byregion.pdf , and 
information provided by the authorities.  
2.4.4   Special Economic Zones (SEZs) and Export Processing Zones (EPZs)  
2.36.   EPZs, and more recently, SEZs have been an important part of the Mainland's investment 
and promotion policies in recent years. Both offer different incentives, both tax and non -tax, and a 
simplified regulatory regime; however, SEZs offer a wid er range of allowable activities. In 
Zanzibar, there are Freeport Zones and Free Economic Zones.  
2.37.   The EPZ Act of 2002 and the SEZ Act of 2006  form the legal frameworks for EPZs and SEZs, 
respectively, on the Mainland. The EPZ Act was amended in 2012 to limi t the amount of production 
destined for the domestic market to 20%; 80% must be for export. The SEZ Act, Cap. 420 R.E. of 
2012 allows SEZ -licensed companies to operate in domestic and regional markets without export 
limits, unlike EPZ-licensed companies ; it also allows investors , both foreign and local, to develop 
SEZ infrastructure in the form of industrial parks which can be rented to EPZ -licensed companies . 
Both programmes operate under the Export Processing Zone Authority (EPZA). For Zanzibar, the WT/TPR/S/384 • Tanzania  
 
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  ZIPPA  also contains provisions for Free Economic Zones and Freeport Zones. As of September 
2018, there were four SEZs in operation, and another ten in various stages of development on the 
Mainland (Table 2.7). As of 2018, Zanzibar had five Free Economic Zones, two of which were  
freeports .32 
2.38.   For the Mainland, there are certain minimum requirements for investors in EPZs and SEZs, 
as well as the requirement that it be a new investment. EPZs require  a minimum annual export 
turnover of USD 100,000 for local investors and USD 500,000 for foreign investors ; and SEZs have 
a minimum capital  requirement  of USD 100,000 for local investors and USD 500,000 for foreign 
investors .33 In addition, companies in EPZs must have value addition, and export 80% of the 
goods, and those in  SEZs must be located in the zones. There are different licensing structures for 
SEZs and EPZs,  offering different incentives. For SEZs, there are developer/operator licenses, user 
licenses, and permits; and for EPZs, there is a user license.34 There are a range of tax and non -tax 
incentives for EPZ and SEZ investors (Table  2.8). Zanzibar also offers different incentives for 
Freeport Zones and Free Economic Zones  (Table 2.9).  
2.39.   The cumulative amount of exports from SEZs up to 2016 stood at USD 1,100 million , an 
increase of USD 306 million from 2015 . In 2012, the figure was about USD  357 million .35 
Table 2.7 SEZs and Business Industrial Parks registered under the EPZA, 2018  
SEZ/Industrial park Location  Ownership  Status  
Benjamin William Mkapa SEZ (BWM -
SEZ) Dar es Salaam  Government -EPZA Operational  
Bagamoyo SEZ Coast region  Government -EPZA Development stage 
Mtwara Freeport Zone (Oil and gas 
supply base ) Mtwara  Government -
Tanzania Port 
Authority /EPZA  Development stage 
Hifadhi EPZ  Dar es Salaam  Public N ational 
Social Security 
Fund Operational  
Kisongo EPZ  Arusha  Private  Operational  
Kamal Industrial Estate  Bagamoyo, Coast 
Region  Private  Partially completed  
Global Industrial Park  Mkuranga  Private  Development stage 
Kigamboni SEZ Company Limited  Morogoro  Private  Development stage 
Kigoma SEZ (Ki-SEZ) Kigoma Ujiji/Kigoma 
Region  Government  Development stage 
Kilwa Business Park  Kilwa District/  Lindi 
Region  Private  Development stage 
Ming Xin Company Limited  Mlandizi, Coast Region  Private  Development stage 
Mkinga SEZ Mkinga District/Tanga 
Region  Private  Development stage 
Star City SEZ Tungi Estate, Morogoro 
Region  Private  Development stage 
Vigor SEZ Company Limited  Kisarawe District, 
Coast Region  Private  Development stage 
Source:  EPZA.  
Table 2.8 Incentives, Mainland, 2018  
EPZ U ser license  SEZ U ser license  
Subject to compliance with applicable conditions and 
procedures, accessing the export credit guarantee 
scheme  Exemption from payment of taxes and duties for 
machinery, equipment, heavy duty vehicles, building and 
construction materials and any other goods of a capital 
nature to be used for purposes of development of the 
SEZ infrastructure  
Remission of customs dut y, VAT and any other tax 
charged on raw materials and goods of a capital nature 
related to production in the EPZs  Exemption from payment of corporate tax for an initial 
period of ten years and, thereafter, a corporate tax 
charged at the rate specified in t he Income Tax Act  
Exemption from payment of corporate tax for an initial 
period of ten years and, thereafter, corporate tax to be 
charged at the rate specified in the Income Tax Act  Exemption from payment of withholding tax on rent, 
dividends and interest  for the first ten years  
Exemption from payment of withholding tax on dividends 
and interest for the first ten years  Exemption from payment of property tax for the first ten 
years  
                                                
32 Fumba Zone, Micheweni Zone, Amaan Industrial Park, Maruhubi Free Port, and Airport Free Port.  
33 EPZA online information. Viewed at: http://epz a.go.tz/licens.php?p=237 .  
34 EPZA online information. Viewed at: http://www.epza.go.tz/files/e -brochure.pdf .  
35 Information provided by the aut horities.  WT/TPR/S/384 • Tanzania  
 
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  EPZ U ser license  SEZ U ser license  
Exemption from payment of all taxes and levies imposed 
by local government authorities for products produced in 
the EPZs for a period of ten years  Remission of customs duty, VAT and any other tax 
payable in respect of the importation of one 
administrative vehicle, ambulances, fire -fighting 
equipment and fire -fighting vehicles and up to two buses 
for employee transportation to and from the SEZ  
Exemption from pre -shipment or destination inspection 
requirements  Exemption from the payment of stamp duty on any 
instrument executed in or outside of the SEZ relating to 
the transfer, lease or hypothecation of any movable or 
immovable property in, or situated within, the SEZ, or 
any document, certificate, instrument, report or record 
relating to any activity, action,  operation, project, 
undertaking or venture in the SEZ  
On-site customs inspection of goods in the EPZs  Entitlement to an initial automatic immigrant quota of up 
to five persons during the start -up period and, 
thereafter, any application for extra persons to be 
submitted to the Authority which shall, in consultation 
with the Immigration Department, authorize any 
additional persons deemed necessary, taking into 
consideration the availability of qualified Tanzanians, the 
complexity of the technology employed by the investor, 
and the agreements reached with the investor  
Provision of business visas at the point of entry to key 
technical, management and training staff for a maximum 
of two months; thereafter, the requirement to obtain a 
residence permit, accordin g to the Immigration Act, shall 
apply;  Exemption from payment of VAT on utility charges  
Remission of customs duty, VAT and any other tax 
payable in respect of the importation of one 
administrative vehicle, ambulances, fire -fighting 
equipment vehicles and up to two buses for employee 
transportation to and from the EPZs  Exemption from pre -shipm ent or destination inspection 
requirements  
Treatment of goods destined for the EPZs as transit 
cargo  On-site customs inspection of goods within SEZs  
Exemption from VAT on utility and wharfage charges  Treatment of goods destined for the SEZs as transit 
cargo 
Entitlement to an initial immigrant quota of up to five 
persons during the start -up period and, thereafter, any 
application extra persons to be submitted to the 
Authority which shall, in consultation with the 
Immigration Department and the Commissione r for 
Labour, authorize any additional persons deemed 
necessary, taking into consideration the availability of 
qualified Tanzanians, the complexity of the technology 
employed by the investor, and the agreements reached 
with the investor   
Access to competi tive, modern and reliable services 
available within the EPZs   
Unconditional transferability through any authorized 
dealer bank in freely convertible currency of:  
i. Net profit or dividends attributable to the 
investment;  
ii. Payments in respect of loan servici ng where a 
foreign loan has been obtained;  
iii. Royalties, fees and charges in respect of any 
technology transfer agreement;  
iv. The remittance of proceeds (net of all taxes and 
other obligations) in the event of the sale or 
liquidation of the business enterprises or any 
interest attributable to the investment; and  
v. Payments of emoluments and other benefits to 
foreign personnel employed in Tanzania in 
connection with the business enterprise   
Source:  EPZA Brochure. Viewed at: http://www.epza.go.tz/files/e -brochure.pdf . EPZ Act Cap 373 R.E. of 
2012 and SEZ Act Cap 420 R.E. of 2012 . Viewed at http://www.epza.go.tz .  
Table 2.9 Incentives, Zanzibar, 2018  
Free Economic Zones  Freeport Zones  
Ten-year corporate tax holiday and 25% tax for the 
subsequent ten years  Exemption from the payment of import duty, excise duty, 
sales tax, VAT and any other import levy on all goods 
imported into the Freeport Zones  
Ten-year withholding tax holiday on dividends to non -
residents  Exemption from any tax on all goods destined for re -
export  
Duty and VAT exemption on raw materials, machinery, 
equipment and other inputs  Exemption from local  taxes on all exported goods 
produced in the Freeport Zone  WT/TPR/S/384 • Tanzania  
 
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  Free Economic Zones  Freeport Zones  
Stamp duty exemption  Exemption from the payment of corporate tax for the 
first 20 years  
100% investment deduction on capital expenditure 
within 20 years  No limit to the duration that goods may b e stored in the 
Freeport Zones  
Exemption from tax on dividends for ten years  100% retention of all profits  
Duty- and tax -free import of goods from domestic tariff 
area permissible  100% foreign ownership allowed  
Duty-free import of materials for the construction of 
factory buildings  Free repatriation of profit  
Duty-free export of goods produced  20% of total turn -over allowed for sale to the local 
market, subject to the payment of all taxes  
Exemption of income tax on interest on borrowed capital   
Exemption from the payment of all taxes and levies 
imposed by local government authorities for goods and 
services produced in Free Economic Zones   
On-site customs inspection of goods in lieu of off -port 
inspection   
Source:  ZIPA online information. Viewed at: http://www.zanzibarinvest.org/zipanew/pdf/ZIPA_act_2004.pdf . 
2.4.5   Business environment and taxation  
2.40.   The Business Licensing Act 1972 provides a framework for business operations in the 
Mainland and, thus, commercial business es in Tanzania be registered with the Business 
Registration and Licensing Agency (BRELA).  The BRELA does the registration and also handles 
applications for business names. In recent year s, the BRELA has undertaken the move to 
electronic filing methods, to speed up the registration process and improve efficiency and 
accuracy. After business registration with the BRELA, a company must obtain a business licence 
from the MITI. A similar agenc y for business registration on Zanzibar is the  Business and Property 
Registration Agency  (BPRA). The BPRA is not only involved with the registration of businesses but 
also oversees the Companies Act, 2003; the Societies Act, 1995; the Business Names Regist ration 
Decree; and the Transfer of Properties Decree.36 
2.41.   The Business Names (Registration) Act of 1930  and the Companies Act of 2002 also provide 
legal frameworks for the establishment of businesses on the Mainland. The Business Names Act 
formerly required t hat all businesses register the name of their enterprise. However, it was 
amended in 2012 to widen its scope, through the amendment of the definition of business, and to 
provide for more modern means of communication to register the names.37 The Companies A ct 
was also amended in 2012, to introduce a new type of company structure, the single individual 
shareholder company, in which one shareholder can hold 100% of the shares. For -profit 
businesses can be established either under the  Business Names (Registrati on) Act o r the 
Companies Act . Collectively, they provide for different types of business establishments, including: 
sole proprietorships, partnerships, trusts, societies, and companies.  
2.42.   The regulatory framework on the Mainland to encourage private partici pation across 
infrastructure sectors was established with the Public Private Partnership (PPP) Act 2010 and its 
regulations from 2011. The PPP Act establishes various public -sector bodies for the PPP process, 
and targets 12 sectors for PPP projects.38 The initial PPP projects included mostly port and road 
infrastructure projects. As of July 2018, there were a number of proposed amendments to the Act. 
In 2015, Zanzibar also passed its Public -Private Partnership (PPP) Act, thereby creating a 
framework for attr acting private capital to develop infrastructure and services.  
2.43.   In 2018, Tanzania ranked 137th in the World Bank's Ease of Doing Business rankings, and 
was 15th among sub -Saharan African countries.39 Tanzania's position has gradually deteriorated 
over the review period; Tanzania was ranked 127th in 2012.40 In the sub -categories of starting a 
business, getting electricity, protecting investors, paying taxes, trading across borders, and 
enforcing contrac ts, Tanzania's situation deteriorated; however, some improvements were seen in 
                                                
36 BPRA online information. Viewed at: http://www.bpra.go.tz/ .  
37 Business Laws (Miscellaneous Amendments) Act No. 3 of 2012.  
38 These include: agriculture, education, energy, environment and waste management, exploration and 
mining, health, industry and manufact uring, information and communication technology, infrastructure, natural 
resources and tourism, trade marking, and sports and recreation.  
39 World Bank's Doing Business online information. Viewed at: 
http://www.doingbusiness.org/rankings?region=sub -saharan -africa .  
40 World Bank's Doing Business online information. Viewed at: 
http://www.doingbusiness.org/reports/global -reports/doing -business -2012.  WT/TPR/S/384 • Tanzania  
 
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  dealing with construction permits, registering property, getting credit, and resolving insolvency. 
The sub -categories with the largest deteriorations were with respect to tradin g across borders 
(Section 3.1.1), starting a business, and protecting investors. The Government has recognized this 
situation and has identified four areas in particular for improvement - business licensing, land 
reforms, registration of businesses , and registration of persons.41 Reforms have already taken 
place with respect to streamlining the business registration processes at the BRELA (see above).  
2.44.   According to a 2017 survey of the business sector, taxation, and in particular high taxes, 
was the top conc ern of the business sector, followed by the need to improve the infrastructure.42 
The World Bank's Tanzania Economic Update report also cites the private sector's main areas of 
concern as: overzealous tax collection, delays in VAT refunds and payments to co ntractors and 
other suppliers, and the proliferation of regulatory authorities, licenses, taxes and charges.43 The 
Tanzania  Chamber of Commerce,  Industry and Agriculture 's (TCCIA) report from 2016 cites that 
multiple regulatory authorities contribute to the  complexity and/or higher costs of establishing a 
business. In December 2017, the Government published its Blueprint for Regulatory Reforms to 
Improve the Business Environment , in order to establish a business -enabling environment for the 
private sector an d address some of the concerns of the business sector.44 This policy produces a 
reform matrix and identifies areas for 'quick -win' reforms.  
2.45.   Tanzania remains highly reliant on indirect taxes for its government revenues. During the 
review period, indirect ta xes, which include taxes on international trade, domestic consumption 
taxes, and other domestic taxes, made up about 63% of central government revenues on the 
Mainland, compared to about 37% of revenues from direct taxation.45 There are a number of taxes 
at various levels of government on the Mainland and in Zanzibar (Table 2.10). Various 
amendments to the taxation system on the Mainland have taken place over the review period. For 
Zanzibar, there were two new acts with respect to taxation in recent years - the Infrastructure Tax 
Act, 2015, that taxes mainly the tourism and transport sectors46; and the Stamp Tax Act, 2017, 
that establishes stamp duties on documents, leases, etc., and also on bills of lading and electronic 
records.47 
Table 2.10 Taxation in Tanzania, 2018  
Mainland  Zanzibar  
Central government taxation  Local taxation  
(rates vary depending on the local authority)   
a. Direct taxes  
Payroll and workforce  
Basic skills and development 
levy 
Taxes on profits  
Taxes on income  
Withholding tax  
Rental tax  
Gaming tax  
Other income taxes  
 
b. Indirect taxes  
i. Consumption taxes ; a. Taxes on property  
Property rates ; 
b. Taxes on goods and services  
Crop cess;  
Forest produce cess ; 
c. Taxes on specific services  
Guest house levy ; 
d. Business and professional licences  
Commercial fishing license fee ; 
Intoxicating liquor license fee ; 
Private health facility license fee ; 
Taxi license fee ; 
Plying permit fee ; a. Direct taxes  
b. Indirect taxes  
VAT on imports and local 
purchases ; 
Excise on imports and 
local purchases ; 
Hotel levy ; 
Restaurant levy ; 
Tour operation levy  
Stamp duty ; 
Airport service cha rge; 
Seaport service charge  
Road development fund ; 
                                                
41 AllAfrica online information. Viewed at: https://allafrica.com/stories/201610270150.html .  
42 Tanzaniainvest online i nformation. Viewed at: https://www.tanzaniainvest.com/economy/business -
environment -survey -2017.  
43 World Bank online information. Viewed at: 
https://openknowledge.worldbank.org/bitstream/handle/10986/28867/120954 -NWP-PUBLIC -p156957 -
p164469 -86p-WorldBankNovFR.pdf? sequence=1&isAllowed=y .  
44 Velma Law online information. Viewed  at: https://www.velmalaw.co.t z/wp-
content/uploads/2018/05/Blueprint -for-Regulatory -Reforms -to-Improve -the-Business -Environment -dated -
December -2017.pdf .  
45 Tax Statistics Report, 2015/16, Tanzania Mainland . Viewed at: 
https://nbs.go.tz/nbs/takwimu/Tax/Tax_Statistics_Report%20_2015_16_Tanzania_Mainland.pdf . 
46 Hotel stay (USD 1 or TZS equivalent per person per day); passenger embarking from a sea port in 
Zanzibar to another seaport in Zanzibar  (TZS 1,000 per person ); passenger embarking from a sea port in 
Zanzibar to another seaport in Tanzania  (TZS 2,000 per person ); passenger arriving via  airport to the United 
Republic of Tanzania ( TZS 2,000 per person ); petroleum products, a) diesel,  b) petrol  (TZS 100 per litre ); and 
purchases of electricity  (2% of the net value ). 
47 Zanzibar Revenue Board online information. Viewed at: 
http://www.zanrevenue.org/uploads/INFR ASTRUCTURE_TAX_2015.pdf  and 
http://www.zanrevenue.org/sw/resources/view/stamp -duty-act-no.7-0f-2017.  WT/TPR/S/384 • Tanzania  
 
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  Mainland  Zanzibar  
- Domestic excise ; 
- VAT on domestic products 
and services ; 
ii. International trade taxes  
- Import duties ; 
- VAT on imports ; 
- Excise duties ; 
- Fuel levy ; 
- Petroleum fee ; 
- Skills development levy ; 
- Stamp duty ; 
iii. Other domestic taxes ; 
- Business licensing ; 
- Airport departure charges ; 
- Motor vehicle taxes ; 
- Stamp duties ; 
 Other business § license fee ; 
e. Motor vehicles, other equipment and ferry 
licences  
Vehicle license fees ; 
Fishing vessel license fees ; 
f. Other taxes on the use of goods, 
permission to use goods  
Forest produce license fee ; 
Building materials extraction li cense fee ; 
Hunting licenses fee ; 
Muzzle loading gun license fee ; 
Scaffolding/Hoarding permit fee ; 
g. Turnover taxes  
Service levy ; 
h. Entrepreneurial and property income  
Dividends ; 
Other domestic property income ; 
Interest ; 
Land rent ; 
i. Administrative fees and charges  
e.g. meat inspection charge, building permit 
fee, livestock dipping fee, abattoir slaughter 
service fee, fish landing facilities fee, fish 
auction fee, clean water service fee, market 
stall dues, insurance commission service fee, 
sale of seedlings, livestock market fee, 
revenue from renting houses, etc.  Petroleum levy ; 
Motor vehicle registration ; 
Road licence;  
Driving licence ; 
Airport safety fee ; 
Infrastructure tax  
 
Source:  Ministry of Finance online information. Viewed at: 
http://www.mof.go.tz/mofdocs/revenue/revlocal.htm , and Tanzania National Bureau of Statistics 
online information. Tax Statistics Report, 2015/16, Tanzania Mainland . Viewed at: 
https://nbs.go.tz/nbs/takwimu/Tax/Tax_Statistics_Report%20_2015_16_Tanzania_Mainland.pdf . WT/TPR/S/384 • Tanzania  
 
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  3  TRADE POLICIES AND P RACTICES BY MEASURE  
3.1  Measures Directly Affecting Imports  
3.1.1   Customs procedures, valuation, and requirements  
3.1.  The main law governing customs procedures and imports in Tanzania is the East African 
Community Customs Management Act (EACCMA), 2004, and its various amendments and 
regula tions, including  manuals and other customs laws of the Community as specified in Article 39 
of the Protocol establish ing the EAC Customs Union (see main report). The Commissioner of 
Customs, within the Tanzania Revenue Authority (TRA) , manages customs and administers the Act 
at the national level.1  
3.2.  The TRA outlines the procedures for importation on its website, as the EACCMA only specifies 
customs control, arrival procedures and the entry of cargo.2 Importation requires a declaration at 
least seven days in  advance of the arrival of the vessel, and the clearance process must be carried 
out by a licensed clearing and forwarding agent (CFA) who sends the documentation through the 
electronic system (see below). The documentation required includes the final invo ice, agent's 
authorization letter from the importer, the packing list, and the transport documents (bill of 
lading/airway bill/road consignment note); and may include import permits and exemption 
documents, if applicable. While the TRA is the main enforcer  of customs rules at the border, other 
government agencies are involved in the customs control of certain goods. These include: t he 
Tanzania Food and Drugs Authority, the Tanzania Bureau of Standard s (TBS), the Tanzania Atomic 
Energy Commission (TAEC), the Ministry of Agriculture , and the Tanzania Pesticides Research 
Institute (TPRI) . 
3.3.  In 2014 , the Mainland  launched the Tanzania Customs Integrated System  (TANCIS). It is a 
web-based system that was fully implemented at all customs posts in June 2015. It has 
progressively replaced paper documents with a paperless environment, leading to significant cost 
and time savings. It also allows customs to perform real -time monitoring, risk management and 
intelligence operations. However, for goods entering through Zanzi bar, importers must use its 
electronic system, ASYCUDA++ . The TANCIS and ASYCUDA++ allow transferability of information 
to other EAC partner countries. Tanzania 's single window system (eSWS)  is expected to be 
finalized by the end of 2018.  As of August 2018, the TANCIS had incorporated about ten other 
government institution operations into the system.   
3.4.  Tanzania Mainland charges a customs processing fee of 0.6% of the f.o.b.  value on imports 
of dry cargo , or TZS 4.8 per litre on wet cargo . The fees are remitted to the consolidated fund for 
dry goods or to the Rural Energy Authority (REA)  for liquid cargo.3 Similar fees are also collected in 
Zanzibar.  
3.5.  There have been no significant improvements in customs clearance times during the review 
period and, in some cases, some deterioration has occurred (Table 3.1). For example, the average 
time to clear goods through Dar es Salaam port increased from 9 to 11 days during the review 
period. This can be attributed to changes in moving from an outside co mpany to insourcing all 
customs processing, larger volumes of trade, and more goods in transit.   
Table 3.1 Key customs figures, 2012 -16 
 2012 /13a 2013 /14a 2014 /15a 2015 /16a 
Average time to clear goods ( days) :     
 Land borders  1 2 2 n.a. 
 Dar es Salaam port  9 11 11 n.a. 
 JNIA Airport  3 4 4 n.a. 
% of customs manifest submitted before 
arrival:      
 JNIA Airport  0 0 2 n.a. 
 Dar es Salaam port  89 91 93 n.a. 
Customs clearance within 24 hours (%):     n.a. 
 Land borders  91 81 86 n.a. 
                                                
1 As a member of the SADC, Tanzania also follows t he SADC Protocol  on Trade that provide s for 
cooperation in customs matters, trade facilitation, and transit trade  matters.  
2 TRA online information. Viewed at: https://www.tra.go.tz/index.php/import -procedure .  
3 TRA online information. Annual Report 2014 -15. Viewed at: 
http://www.tra.go.tz/index.php/publications/501 -annual -report-2014-2015. WT/TPR/S/384 • Tanzania  
 
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   2012 /13a 2013 /14a 2014 /15a 2015 /16a 
 Dar es Salaam port  40 36 82 n.a. 
 JNIA Airport  80 78 64 n.a. 
Revenues collected , Mainland (TZS billion)  2,971.8  3,627.3  4,138.4  5,351.1  
 Import duties  610.9  766.7  910.9  1,344.3  
 Excise duty  697.4  761.9  916.9  1,275.8  
 VAT on imports  1,213.4  1,329.7  1,329.7  1,727.2  
 Fuel levy and petroleum fee - REA 436.3  750.3  750.3  750.3  
Revenues collected , Zanzibar (TZS billion)   63.8   87.6   87.9   103.3  
 Import duties   24.9   33.8   33.4   34.8  
 Excise duty   8.4   10.9   10.3   12.2  
 VAT on imports   26.9   38.3   38.8   41.5  
 Others   3.7   4.7   5.4   14.8  
a FY basis.  
n.a. Not available.  
Source:  TRA online information. Annual Report 2014 -15. Viewed at: 
http://www.tra.go.tz/index.php/publications/501 -annual -report -2014-2015; and National Tax 
Statistics . Viewed at: http://www.tra.go.tz/images/uploads/Laws/NationalTaxStatistics2015 -16.xls . 
TRA, 2015.  Tanzania National Bureau of Statistics online information. Tax Statistics Report 2 015/16 . 
Viewed at: 
https://nbs.go.tz/nbs/takwimu/Tax/Tax_Statistics_Report%20_2015_16_Tanzania_Mainland.pdf .  
3.6.  With the help of the African Development Bank (ADB) and other donors to the Central 
Corridor Transit Transport Facilitation Agency (CCTTFA), Tanzania and its EAC neighbours have 
five fully operational one-stop border posts (OSBPs).4 These have reportedly cut transit truck 
crossing times by 55%. Other OSBPs are at different stages of implementation.  Tanzania and its 
EAC partners are also in the process of implementing the EAC Single Customs Territory (see main 
report).  
3.7.  Certain customs procedures require licensing by the TRA pursuant to the framewo rk provided 
for in the EACCMA on matters including: c ustoms clearing and forwarding agents, customs bonded 
warehouses/manufacture under b ond operators, t ransporters of goods under customs c ontrol , and 
inland container depots/container freight stations o perators. The TRA sets a number of general 
conditions for licensing, such as having a relevant business license and taxpayer identification 
number, and a number of specific conditions depending on the type of license, including an 
examination.  
3.8.  In Zanzibar, im portation and exportation procedures are specified in the Trading Act, which 
was revised in 2013 as the Trade Act No. 14 of 2013 . Its regulations, the  Trade Transaction 
Regulation s were established in 2016  to further expand upon the provisions in the Act.5 Together, 
they require any importer or exporter to be registered in order to conduct this business. This 
requires obtaining an Import or Export Registration Certificate  from the ministry responsible for 
trade;  this must be renewed annually.  
3.9.  Since 2012 , the Mainland has been implementing pre -shipment inspections and assessments 
of conformity for certain categories of imported goods , known as the pre -shipment verification of 
conformity (PVoC) . The scheme seeks to regulate the importation of certain goods r elative to 
Tanzanian and other internationally accepted standards ; it was subsequently implemented in  
Zanzibar in 2016. Under the scheme, goods that pass the inspection are issued with a certificate of 
compliance (CoC), a prerequisite for customs clearance  for certain goods .6  
3.10.   During most of the review period, the TRA has been operating under its Fourth Corporate 
Plan (CP4), whereby certain targets have been set for its future direction. Due to a number of 
developments, the TRA embarked on its Fifth Corpora te Plan (CP5) early, and this was put in place 
in July 2017 until 2021/22.7 Some of the achievements of CP4 included the TANCIS, the OSBPs, 
and the implementation of a Business Continuity Management System. For CP5, the TRA has a 
                                                
4 In Namanga, Lungalunga and Isebania at the border with Kenya, in Mutukula with Uganda, and in 
Rusuma with Rwanda. ADB online information. Viewed at: 
https://www.afdb.org/fileadmin/uploads/afdb/Documents/Project -and-
Operations/Country_results_brief_2017_TANZANIA_en.pdf , and Central Corridor online information. Viewed at: 
http://centralcorridor -ttfa.org/news/one -stop-border -posts -cut-trucks -border -crossing -time-by-55/.  
5 Zanzibar Assembly online information. Viewed at: http://www.zanzibarassembly.go.tz/acts -2013.php . 
6 For Zanzibar, g oods subject to this include toys and sports equipment, and electrical and electronic 
products.  
7 TRA online information. Viewed at: https://www.tra.go.tz/images/uploads/Laws/1CP5TRAB5.pdf .  WT/TPR/S/384 • Tanzania  
 
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  number of goals or objecti ves, including: enhancing trade facilitation through a single window port, 
implementing phase II of the EAC's AEO scheme, and strengthening marine and border patrol 
operations.  
3.11.   The most recent Doing Business Report from the World Bank saw Tanzania's rank 1 37th, but 
in terms of the trading across borders sub -category, it ranked even lower, at 182nd, its lowest 
among all the sub -categories.8 The particularly low ranking is attributed mainly to the high costs 
for importation and exportation associated with bor der compliance. There seems to be room for 
improvement, and the Government has recognized this (Section 2.4.5). According to the 
authorities, full implementation of the single window is expected to address some of these issues 
by lowering costs and inc reasing efficienc y. 
3.12.   As of August 2018, Tanzania had not yet ratified the Trade Facilitation Agreement (TFA) . 
According to the authorities, the Government is expected to ratify it by the end of FY 2018/19.  In 
May 2015, Tanzania notified its Category A commitmen ts to the WTO.9  
3.13.   The authorities have indicated that an AEO programme is underway at the EAC level (see 
main report), and Tanzania has implemented phase I of this programme and is starting to 
implement phase II . As of October 2018, Tanzania had two nationa l compliant AEOs.  
3.14.   Tanzania has an informal procedure for issuing advance rulings on customs classification 
matters. Advance rulings are issued by letter upon request by importers, and there is no central 
database or disclosure of them to the public. At pre sent, it is not possible to perform a search or 
identify the number in existence. Tanzania may also issue advance rulings on origin matters.  
3.1.1.1   Customs valuation  
3.15.   Valuation of goods for customs purposes is contained in the EACCMA  Fourth Schedule, and 
is harmonized at the level of the EAC (see main report). According to the authorities, the main 
issues Tanzania faces on customs valuation are with respect to under -invoicing problems on used 
motor vehicles.  
3.1.2   Rules of origin  
3.16.   Rules of origin are harmonized at the level of the EAC through the EAC Customs Union 
(Rules of Origin) Rules, 2015 (see main report). Tanzania also applies the SADC  Protocol on Trade  
Rules of Origin regulations for preferential imports from SADC countries.  Accordin g to the 
authorities, no other rules of origin are applied by Tanzania.  
3.1.3   Tariffs  
3.17.   As a member of the EAC, Tanzania applies the EAC CET (see main report). Customs import 
duties remain an important source of revenue for the Government; for the Mainland, they 
accounted for 10% of total revenues in 2015/16, and for Zanzibar, 20%. However, when 
associated taxes on imports, e.g. VAT, excise, and other import taxes, are also taken into account, 
they provide 40% of the Mainland's annual revenues, and 60% of Zanzibar' s.10  
3.18.   While the CET provides harmonization of most tariffs for all EAC partners, it does allow for 
some country -specific deviations through "stays of application " and duty remissions. The duty 
remissions scheme is designed for export promotion, and EAC part ners may request annual 
specific product exemptions for duty -free imports used in manufacturing. The provision on stays of 
application was initially designed as a temporary transitional measure to help with the 
implementation of the CET, but its original p urpose has been enlarged to encompass a wider use. 
Any change or derogation from the CET requires approval from the Council of Ministers. There has 
been an increase in the use of these two procedures to deviate from the CET by Tanzania and 
other EAC partne rs during the review period, which has prompted some concerns over the rising 
                                                
8 World Bank's Doing Business online information. Viewed at: 
http://www.doingbusiness.org/data/exploreeconomies/tanzania#trading -across -borders .  
9 According to this notification, Arts. 1.4, 5.2, 7.5, 9, 10.5, and 10.6 were expected to be implemented 
upon the entry into force of the Agreement for Tanzania. WTO document, WT/PCTF/N/TZA/1.  
10 TRA online information. Viewed at: https://www.tra.go.tz/index.php/tax -collection -statistics .  WT/TPR/S/384 • Tanzania  
 
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  instability it lends to the CET.11 A compilation of the stays of application indicates that, for 
Tanzania, there were seven cases in 2011, all involving lower rates of duty from the CET. 
However, in 2018, the situation had changed significantly, and there were nearly 100, with over 
90 invo lving higher rates of duty (Chart 3.1). The authorities attribute this large increase to their 
policies on promoting domestic production of these goods.  Furthermore, with respect to duty 
remissions, these have also showed a marked increase during the perio d, due to Tanzania's 
policies to encourage exportation. Products subject to d uty remission generally have  a zero rate of 
duty but may be subject to  a 10% rate of duty if they are subsequently  sold within the EAC region.   
Chart 3.1 Tariff lines (at the 8 -digit level) with national rates different from the CET 
rates due to stays of application  
(Number of tariff lines)  
 
Note:  The fiscal year runs from 1 July to 30 June.  
Source:  WTO Secretariat calculations, based  on data provided by the EAC Secretariat and EAC Gazette Vol. 
AT1-No. 8, 30 June 2018.  
3.19.   Tanzania has a flat rate of bindings in its WTO tariff schedule of 120%; all agricultural 
products but only 0.3% of industrial products are bound. Some tariff lines with  mixed or compound 
duty rates may exceed the bindings (see main report). All other duties and charges are bound at 
zero in Tanzania's schedule but some are imposed (Section 3.1.4).  
3.1.4   Other charges affecting imports  
3.20.   Mainland Tanzania and Zanzibar charge a num ber of other taxes, fees and levies on 
imported goods and services. The main ones are customs processing fees (Section 3.1.1.), VAT 
and excise but there are also others, including a fuel levy, a petroleum fee, a trade levy, and a 
railway development levy.  
3.21.   In 2015, the Mainland introduced the Railways Development Levy on all imports, except 
EACCMA -exempted goods, to help finance the development of railway projects. The Levy amounts 
to 1.5% of the customs value. For Zanzibar, a trade levy of 5% of customs val ue is charged on the 
c.i.f. value of non -petroleum imports. For all types of fish and fish products imported and intended 
as food, the Fisheries Act and its Regulations charge a specific rate of USD 0.25 perkg.12  
3.22.   The Mainland has a fuel levy on imported pe troleum and diesel, at a rate of TZS 313 per 
litre. There is also a petroleum fee on petroleum and diesel , of TZS 100 per litre , and on kerosene , 
of TZS 150 per litre . Zanzibar also has similar fees on petroleum products. Fees  collected on 
imports in Zanzibar remain in Zanzibar, while those on the Mainland go to the general budget 
(consolidated fund) and are distributed through the normal processes to the Mainland and 
Zanzibar. The revenue collected from these two fees increase d signif icantly during the period 
                                                
11 Sage Journals online inf ormation. Viewed at : 
http://journals.sagepub.com/doi/full/10.1177/2158244017748235 .  
12 Informea online information. Viewed at: 
https://www.informea.org/sites/default/files/legislation/tan171548.pdf . 
2391
712
105
020406080100120
2011 2017 2018Chart 3.[TZA] Tariff lines (at the 8 -digit level) with national rates different from the CET rates
Changes to EAC CET rates:
Reduced rates 
Increased rates 
Different type of duty rates applied 
(switches from ad valorem to non -ad valorem rates, and vice versa)
WTO Secretariat calculations, based on data provided by EAC Secretariat; and EAC Gazette Vol. AT1 -No.8, 30 June 
2018.Source:[Fiscal year runs from 1st July to 30th June.] Note:(Number of tariff lines)
Total: 7Total: 34Total: 98WT/TPR/S/384 • Tanzania  
 
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  under review, from  TZS 391  billion in 2011/12 to TZS 1.1 trillion in 2016/17.13 According to the 
authorities, this increase can be attributed to transit trade and the move to the single customs 
territory.  
3.23.   In 2013, Tanzania issued regulations that impact the import and export of films and music 
products; it exempts goods in transit.14 It requires importers and exporters of these products to 
register and receive approval from the licensing authorities in order to import or expo rt. Further, a 
tax stamp must be paid for and affixed to the products.  
3.24.   The Mainland's stamp duty tax is pursuant to the 1972 Stamp Duty Act; payment and 
stamping of a variety of documents, such as agreements, leases, property transfers, etc., are 
required . The fee varies considerably depending on the type of document; it is sometimes paid as 
a fixed fee and sometimes ad valorem  (a percentage of the value of the transaction).15 In 2017, 
Zanzibar passed a new Stamp Duty Act that requires a stamp duty receipt for all money 
exchanged in excess of  TZS 1,000 for the sale of any goods or services in Zanzibar16  
3.1.4.1   VAT 
3.25.   VAT in Tanzania is an important source of revenue for the Government, as it provided the 
largest share, about 27%, of total government revenues in 2015/1 6. Of this amount, 14% was 
collected on domestic goods, and 13% on imports.17 
3.26.   VAT in Mainland Tanzania is charged at 18% for most goods and services, including imports, 
and is zero -rated for exports of goods and services.18 There is a list of specific exempt ions that is 
quite extensive (Table 3.2). The Mainland's VAT is governed by the VAT Act, 2014 and its 
regulations, and the VAT (General) Regulations, 2015.19 Annual amendments since then have 
mainly altered the exemptions. As of 2018, there were 24 categori es of exemptions , plus a list of 
specific import exempt ions (Table  3.2).  
3.27.   Similar to the Mainland, Zanzibar has a VAT rate of 18% on the importation and supply of 
taxable goods, and a zero rate on the export of goods and services. There are also a number of 
zero-rated VAT supplies, exemptions, and special relief provisions (Table 3.3).  
Table 3.2 VAT exemptions, Mainland, 2018  
Category  Description or HS codes  
Agricultural implements  Ch. 82, 84, 87, 40, 5, 94  
Agricultural inputs  Ch. 31, 38  
Livestock, basic agricultural products and foods for human consumption  Ch. 1 -12, 53  
Fisheries implements  Ch. 70, 56, 89, 84  
Bee-keeping implements  Ch. 61, 63, 84  
Medicine or pharmaceutical products, not including food su pplements or 
vitamins  Ch. 84, 39, 40  
Articles designed for people with special needs  Ch. 90, 33, 84, 87  
Dairy equipment   
Education materials  Ch. 49  
Health care   
Immovable property   
Educational services   
Intermediary services  Financial services  
Government entity or institution   
Petrolelum products  Ch. 27  
Supply of water, except bottled or canned water or similarly presented water   
                                                
13 Tanzania National Bureau of Statistics online information. Tax Statistics Report, 2015/16, Tanzan ia 
Mainland . Viewed at: 
https://nbs.go.tz/nbs/takwimu/Tax/Tax_Statistics_Report%20_2015_16_Tanzania_Mainland.pdf . 
14 The Films and Music Products (Tax S tamps) Regulations, 2013. TRA online information. Viewed at: 
https://www.tra.go.tz/tax%20laws/The%20excise%20(Management%20and%20Tariff)%20Act.pdf .  
15 TRA online information. Viewed at: https://www.tra.go.tz/index.php/stamp -duty.  
16 Zanzibar Revenue Board online information. Viewed at: 
http://www.zanrevenue.org/tax/category/stamp -duty.  
17 TRA online information. Viewed at: https://www.tra.go.tz/index.php/tax -collection -statistics . 
18 TRA online information. Viewed at: http://www.tra.go.tz/index.php/value -added -tax-vat/99 -rate-
structure .  
19 TRA online information. Viewed at: 
https://www.tra.go.tz/tax%20laws/THE%20VALUE%20ADDED%20TAX%20ACT,%202014.pdf  and 
https: //www.tra.go.tz/tax%20laws/Value%20Added%20Tax%20(General)%20regulations,%202015.pdf .  WT/TPR/S/384 • Tanzania  
 
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  Category  Description or HS codes  
The transportation of person by any means of conveyance other than taxi 
cabs, rental cars or boat charters   
Supplies of arms and ammunitions, parts and accessories thereof, to the 
armed forces   
Funeral services ; for the purpose s of this item , funeral services include: coffin, 
shroud, transportation, mortuary and disposal services of human remains   
Gaming suppl ies  
Supply of tourist guid es, game driving, water safaris, animal or bird watching, 
park fees, and ground transport services   
Supply of solar panels, modules, solar charger controllers, solar inverter s, 
solar lights, vacuum tube solar collectors and solar batter ies  
Supply of air charter services   
Imports exempt from VAT   
Source:  VAT Act. TRA online information. Viewed at: 
https://www.tra.go.tz/tax%20laws/THE%20VALUE%20ADDED%20TAX%20ACT,%202014.pdf . 
Table 3.3 VAT exemptions, Zanzibar, 2018   
Category  
Zero-rated  
Locally manufactured goods from Zanzibar delivered to, or made available for enjoyment and consumption 
in, Mainland Tanzania  
The supply of goods , including food and beverages for consumption or duty -free sale on aircraft or ships , 
on journey s to destinations outside the United Republic of Tanzania  
The supply of services, compris ing the handling, parking, pilotage, salvage, or towage of any foreign -going 
ship or aircraft , while in Zanzibar  
Exempt supplies and imports  
Food, crops and livestock supplies  
Pesticides, fertilizers, etc.  
Health supplies  
Educational supplies  
Veterinary supplies  
Books and newspapers  
Passenger transportation services  
Land 
Water  
Funeral services  
Crude oil petroleum products  
Agriculture and livestock implements  
Postal supplies  
Computers  
Packing materials  
Financial services  
Solar power equipment  
Unprocessed seaweed  
Special relief 
Different organizations or persons  
Source : Zanzibar Revenue Board online information. Viewed at: 
http://www.zanrevenue.org/resources/view/the -value -added -tax-act-no.-4-of-1998.  
3.1.4.2   Excise  
3.28.   Excise duties in Mainland Tanzania are charged on certain imported or domestic goods and 
services. Typically,  there are annual changes in the list of products covered a nd level of the rates. 
On many products, there are differing rates for imported versus domestic goods. The list of 
products subject to excise on the Mainland, compared to that of Zanzibar, is similar but there are 
differences (Tables  3.4 and A3.1).  
3.29.   As exc ise duty amendments are numerous each year on the Mainland, it is difficult to 
enumerate all the changes; thus, the yearly Finance Acts should be consulted.20 However, excise 
duty revenue collection indicates a significant increase in excise duty collected on imports during 
the review period, from TZS 583.6 trillion in 2011 -12 to TZS 1,276 trillion in 2015/16 for the 
Mainland.21 Another trend has been the steady increase in receipts from non -petroleum imports 
                                                
20 TRA online information. Viewed at: https://www.tra.go.tz/index.php/laws .  
21 TRA online information. Viewed at: https://www.tra.go.tz/index.php/tax -collection -statistics .  WT/TPR/S/384 • Tanzania  
 
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  during the period up until 2015/16 and, at the sam e time, the steady decrease in receipts from 
petroleum imports. These trends for both were somewhat revers ed in 2016 -17.22  
Table 3.4 Excise taxes on goods and services, Mainland, 2018  
HS Description  Unit Rate 
20.09; 2009.11.00  
2009.12.00; 2009.19.00  
2009.21.00; 2009.29.00  
2009.31.00; 2009.39.00  
2009.41.00; 2009.49.00  
2009.50.00; 2009.61.00  
2009.69.00; 2009.71.00  
2009.79.00; 2009.81.00  
2009.89.00; 2009.90.00  Locally produced fruit juices manufactured 
from domes tic fruits under heading  L TZS 9.00 per litre  
Imported fruit juices under the heading  L TZS 232.00 per litre  
2201.10.00  Locally produced, bottled  L TZS 58.00 per litre  
Imported, bottled  L TZS 64.05 per litre  
2201.90.00  Locally produced, bottled  L TZS 58.00  
Imported, bottled  L TZS 64.05 per litre  
2202.10.00  Waters, including mineral waters and 
aerated waters, containing added sugar or 
other sweetening matter or flavoured  L TZS 61.00 per litre  
2202.91.00  Locally produced  L TZS 561.00  per litre  
Imported  L TZS 589.05  per litre  
2202.99.00  Locally produced  L TZS 561.00  per litre  
Imported  L TZS 589.05  per litre  
2203.00.10  Locally produced  L TZS 765.00  per litre  
Imported  L TZS 803.25  per litre  
2203.00.90  Locally produced  L TZS 765.00  per litre  
Imported  L TZS 803.25  per litre  
2204.10.00  With the domestic grape content 
exceeding 75%  L TZS 200.00 per litre  
Other  L TZS 2,466.45 per litre  
2204.21.00  With the domestic grape content 
exceeding 75%  L TZS 200.00 per litre  
Other  L TZS 2,466.45 per litre  
2204.22.00  With the domestic grape content 
exceeding 75%  L TZS 200.00 per litre  
Other  L TZS 2,466.45 per litre  
2204.29.00  With the domestic grape content 
exceeding 75%  L TZS 200.00 per litre  
Other  L TZS 2,466.45 per litre  
2204.30.00  Other  L TZS 2,466.45 per litre  
2205.10.00  With the domestic grape content 
exceeding 75%  L TZS 200.00 per litre  
Other  L TZS 2,466.45 per litre  
2205.90.00  Other  L TZS 2,466.45 per litre  
2206.00.10  Cider L TZS 2,466.45 per litre  
2206.00.20  Beer made from 100% local unmalted 
cereals  L TZS 450.00 per litre  
2206.00.90  Other  
Wines produced from locally grown fruits , 
such as banana s, tomato es, rosella, etc. , 
other than grapes , with domestic content 
exceeding 75%  L TZS 200.00 per litre  
22.08  Locally produced products of this heading  L TZS 3,315.00 per litre  
2208.20.00  Spirits obtained by distilling grape wine or 
grape marc  L TZS 3,655.05 per litre  
2208.30.00  Whiskies  L TZS 3,655.05 per litre  
2208.40.00  Rum and other spirits obtained by distilling 
fermented sugar –cane products  L TZS 3,655.05 per litre  
2208.50.00  Gin and Geneva  L TZS 3,655.05 per litre  
2208.60.00  Vodka  L TZS 3,655.05 per litre  
2208.70.00  Liqueurs and cordials  L TZS 3,655.05 per litre  
2208.90.10  Distilled spirits ( e.g. Uganda Waragi)  L TZS 3,655.05 per litre  
2208.90.90  Other  L TZS 3,655.05 per litre  
2402.10.00  Cigars, cheroots and cigarillos, containing 
tobacco  kg 30% 
                                                
22 Tanzania National Bureau of Statistics online information. "Tax Statistics Report, 2015/16, Tanzania 
Mainland". Viewed at: 
https://nbs.go.tz/nbs/takwimu/Tax/Tax_Statistics_Report%20_2015_16_Tanzania_Mainland.pdf . WT/TPR/S/384 • Tanzania  
 
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  HS Description  Unit Rate 
2402.20.10  Without filter tip and containing over 75% 
domestic tobacco  mil TZS 12,447.00 per mil  
With filter tip and containing over 75% 
domestic tobacco  mil TZS 29,425.00 per mil  
Other  mil TZS 55,896.75 per mil  
2402.20.90  Without filter tip and containing over 75% 
domestic tobacco  mil TZS 12,447.00 per mil  
With filter tip and containing over 75% 
domestic tobacco  mil TZS 29,425.00 per mil  
Other  mil TZS 55,896.75 per mil  
2403.19.00  Other (for example cut rag/filler)  kg TZS 28,232.40 per kg  
Source:  The Finance Act, 2018. TRA online information. Viewed at: 
https://www.tra.go.tz/images/uploads/FINANCEACT2018.pdf .  
3.1.5   Import prohibitions, restrictions, and licensing  
3.30.   The EAC prohibits or restricts the importation of about 44 categories of good s, as listed in 
the Second Schedule of the EAC Customs Management Act, 2004 as revised (see main report). As 
such, these import prohibitions and restrictions are implemented by Tanzania and other EAC 
partner States. Prohibited goods are not allowed to ente r or exit Tanzania under any circumstance . 
For restricted goods, special additional requirements  must be fulfilled to import, e.g. permits or 
licenses.  In addition to these harmonized restrictions, Tanzania has a number of  other prohibitions, 
restrictions, and licensing requirements at the national level (Table 3.5). Many of these restraints 
are due to the procedures put in place by the acts relating to the various agricultural marketing 
boards; in many cases, they involve licensing requirements.  
3.31.   In addition to these prohibitions or restrictions that are set out in laws or regulations, 
Tanzania has taken other measures during the period to control the movement of food crops . This 
has occurred periodically for agricultural p roducts such as maize, and may involve  a seasonal 
import restriction on food security grounds (Section 4.1.1.3.2).  
Table 3.5 Products subject to prohibition, restriction, or licensing, 2018  
Product  Type of 
restriction  Legal instrument  Overview  
Mainland  
Tobacco  Licence Tobacco Industry Act , 
2001 Section s 19 and 20 require persons to have 
an import license from the Tobacco Board  
Tobacco seed  Licence Tobacco Industry Act , 
2001 Import license from the Tobacco Board 
required  
Hazardous wastes  Prohibition  Bamako Convention  The Convention prohibits the importation of 
hazardous wastes and dumping at sea and 
internal waters  
Sugar  Licence Sugar Industry Act, 2001  All imports of sugar must be licence d by the 
Sugar Bo ard 
Sugar cane, seed s, 
cuttings, and 
seedlings  Permit  Sugar Industry Act, 2001  Importation, breeding or modifying (by 
genetic engineering) sugar cane or seed 
(fuzz), cuttings, and seedlings is subject to 
authori zation   
Seeds  Permit  Seed Act  All seeds require a permit  
Raw tea  Permit  Tea Act, 1997  Permission from the Tea Board for the  export 
or import of tea seeds or any living parts of a 
tea plant  is required  
Milk Licence Dairy Industry Act , 2004 Importation requires a permit from the Dairy 
Board  
Fish  Licence  Fisheries Act, 2003  Licence required to import fish  
Forest products  Permit   Permit from the Forest Service  to import 
forestry products  
Radiation devices  Licence  Atomic Energy Act , 2003 Licence required from the Tanzania Atomic 
Energy Commis sion 
Radioactive 
materials  Licence  Atomic Energy Act , 2003 Licence required from the Tanzania Atomic 
Energy Commission  
Coffee seeds or 
seedlings or plants  Permit  Coffee Industry Act, 2001  Restricted unless authori zed by the C offee 
Board  
Cotton seeds or 
plants  Licence Cotton Industry Act, 2001  Importation requires a permit from the 
Tanzania Cotton Board  
Sisal Licence Sisal Industry Act No. 2 , 
1997 Licence required from the Tanzania Sisal 
Board  WT/TPR/S/384 • Tanzania  
 
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  Product  Type of 
restriction  Legal instrument  Overview  
Pesticides  Permit  Pesticide Control 
Regulations, 1984, Plant 
Protection Act , 1997, and 
Plant Protection 
Regulations , 1999 Importation requires a permit from the 
Registrar of Pesticides , and the Topical 
Pesticide Research Institute  
Motor vehicles, 
motorbikes, 
bicycles, tractors, 
machinery and 
machinery 
equipment, spare 
parts Permit  n.a. Requires authorization from the Tanzania 
Bureau of Standards  or the Fair Competition 
Commission  
All animals, birds, 
fish, poultry and 
their products  Permit  n.a. Permit from the Ministry of Agriculture , the 
Ministry of Livestock and Fisheries,  the 
Tanzania Bureau of Standards , the Tanzania 
Food and Drug Authority , the Meat Board or 
the Dairy Board  
Processed foods, 
drugs, cosmetics 
and vegetables  Permit  n.a. Permit from the Tanzania Bureau of 
Standards , or the Tanzania Food and Drug 
Authority  
All plants and plants 
products  Permit  Plant Protection Act , 
1997, and Plant Protection 
Regulation , 1999 Permit from the Ministry of Agriculture , or the 
Tanzania Bureau of Standards  
Agricultural products  Permit  Plant Protection Act , 
1997, and Plant Protection 
Regulation , 1999 Permit from the Ministry of Agriculture , or the 
Tanzania Food and Drug Authority  
Firearms and 
ammunition  Permit  Firearms and Ammunition 
Control Act, 2015  Importation requires a permit from the 
Registrar of Firearms  
Zanzibar  
Chainsaws  Import and use 
ban Banning of the Chainsaw 
Regulations, 2015  Prohibition on the  import or use of chainsaws 
unless falling under certain specific 
exemptions. Importation permit fee and 
operation permit fee apply when approved  
Sand Permit  Environment Management 
Act, 2016 Permission needed  
Used cargo vehicles  Permit  Zanzibar Trading Act , 
2013 The item is restricted and is subject to 
permission or other approval  
Used underwear, 
mattresses, and 
pillows  Prohibited  Zanzibar Trading Act , 
2013 The items may not be imported  
Used goods  Permit  Zanzibar Trading Act , 
2013 The item is restricted and is subject to 
permission or other approval  
Beach seine, fishing 
weir or spear gun s Prohibited  Fisheries Act , 2010 Importation, selling, offering to sell, 
possess ion, or making of is prohibited  
n.a.  Not available  
Source:  Compiled by the Secretariat from various acts, as noted in the Table, and information provided by 
the authorities.  
3.1.6   Anti-dumping, countervailing, and safeguard measures  
3.32.   Tanzania, as part of the EAC, is working towards establishing trade remedies at the regional 
level (see main report). However, since 2004, Tanzania has specific legislation on contingency 
measures. The Anti -dumping and Countervailing  Measures Act No. 1, 2004 is the Mainland's 
legislation on anti -dumping and countervailing measures.23 According to the authorities, the Act 
has never been applied, as it has faced a number of implementation challenges and the Committee 
necessary to impleme nt the Act has never been established. As of 2018, Tanzania was reviewing 
the Act. The Act has not been notified to the WTO.  
3.1.7   Other measures affecting imports  
3.33.   Tanzania has certain local content rules that apply to certain sectors of its economy, mainly 
in the extractive sectors (Sections 4.2.1, 4.2.2, 4.4.1.2). The relevant laws and regulations have 
been strengthened during the review period to increase local content requirements, require 
technology transfer, or otherwise put conditions on foreign operation s, e.g. to use domestic banks, 
insurers, and service providers. According to the authorities, the National Economic Empowerment 
                                                
23 The Law Reform Commission of Tanzania online information. V iewed at: 
http://www.lrct.go.tz/download/laws_2004/1 -2004%20Anti%20Dumping.pdf .  WT/TPR/S/384 • Tanzania  
 
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  Council (NEEC) is the coordinator, supervisor, and facilitator , and monitors local content 
implementation  measures.  
3.34.   The authori ties report that Tanzania does not have any trade sanctions in place.  
3.2  Measures Directly Affecting Exports  
3.2.1   Customs procedures and requirements  
3.35.   The export procedure is similar to that for importation. Exporters must use a l icensed CFA 
to clear goods for expo rt through the electronic customs systems, i.e. the TANCIS for the Mainland 
and ASYCUDA++ for Zanzibar. The documents required for export include: invoice, packing list, 
taxpayer (TIN) certificate, authorization letter, and possibly export certificates fro m relevant 
agencies, depending on the type of goods to be exported; all of which are to be submitted through 
the electronic system by the CFA. Thereafter, the shipping agent should submit information on the 
shipping vessel, and the export manifest informat ion should also be sent to the TRA.24 
3.2.2   Taxes, charges, and levies  
3.36.   Tanzania continues to apply export levies on a few exported products, which deviates from 
EAC practice in this matter. According to the TRA, at present, there is an export levy on raw 
cashew n uts of 15% of f.o.b.  value or USD 160 per metric ton , whichever is higher ; on wet blue 
leather of 10% on f.o.b.; and on raw hides and skins of 80% of f.o.b.  value or USD 0.52 per kg , 
whichever is higher .25 Tanzania added the export levy on semi -processed we t blue leather in 2015 
in order to encourage local manufacturing and, at the same time, increased the rate of the levy on 
raw hides and skins from the previous level of 60% f.o.b. or TZS 600 per kg to the current level.26 
Prior to this, the levy on raw hide s and skins was 90% in 2012, then it was lowered in 2014 for 
one year, before rising again. According to the authorities, the levies remain in place to encourage 
value added processing in Tanzania. These levies are collected by the TRA upon export and 
deposited into a consolidated fund.  
3.37.   In addition to those levies charged by customs, the Fisheries Act and its Regulations provide 
for an export royalty to be paid on all fish and fish products.27 This fee is generally specific (USD 
per kg) , although for a few products, e.g. aquarium fin fish and sea shells, it is 6% (ad valorem ) of 
the f.o.b.  value. The  specific  royalty varies between 0.009 and 1.80 USD per kg, based on the type 
of fish product, its grade, and , for some items , whether it was frozen at sea or on shore.28  
3.38.   In 2017, it was announced that the Government would impose a 1% clearing fee on mineral 
exports; this was put in place in July 2017 through the Finance Act 2017.29  
3.2.3   Export prohibitions, restrictions, and licensing  
3.39.   At the EAC level, Tanzania and th e other members prohibit or restrict certain exports, as 
outlined in the Third Schedule to the EACCMA, 2004 (Main Report).30 In addition to the EAC 
prohibitions or restrictions, Tanzania prohibits, restricts, or otherwise requires licensing for a 
number of other products (Table 3.6). As with import restrictions, many of these provisions result 
from licensing requirements by the agricultural marketing boards for the various commodities.  
3.40.   Since 2003, Tanzania has been part of the Kimberly Process Certification Scheme for the 
export of rough diamonds. According to its reports to the Kimberly Process, Tanzania exported all 
of its production of rough diamonds in 2016 to 64 countries, an amount of 241,669 carats , valued 
at USD 86.6 million .  
                                                
24 TRA online information. Viewed at: https://www.tra.go.tz/index.php/export -procedures .  
25 TRA online information. Viewed at: http://www.tra.go.tz/index.php/export -procedures .  
26 The Finance Act, 2015. TRA  online information. Viewed at:  
http://www.tra.go.tz/tax%20laws/Finance%20Act%202015.pdf .  
27 Farmed seaweed is not subject to an export royalt y, and aqua products from large -scale aqua farm s 
are charge d for services at a rate of USD 0.009 per kg . 
28 Informea online information. Viewed at: 
https://www.informea.o rg/sites/default/files/legislation/tan171548.pdf . 
29 Tanzaniainvest online information. Viewed at: https://www.tanzaniainvest.com/mining/1 -percenyt -
clearing -fee-mineral-export .  
30 TRA online information. Viewed at: 
https://www.tra.go.tz/tax%20laws/EAC_Customs_Management_Act_(Revised)[1].pdf .  WT/TPR/S/384 • Tanzania  
 
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  3.41.   During the review period, the Ministry of Agriculture also imposed seasonal restrictions on a 
number of exported food products, due to concerns about rising prices and food security . The 
Minister of Agriculture has the power to invoke this provision when n eeded. Maize was one product 
particularly affected during the review period (Section 4.1.1.3.2). Other bans have been put in 
place on a sectoral basis, i.e. minerals (Section 4.2.1).  
Table 3.6 Export prohibiti ons, restrictions or licensing, 2018  
Product  Type of 
restriction  Legal instrument  Summary  
Mainland  
Unprocessed tobacco  Prohibited  Tobacco Industry Act, 2001  Section 15 prohibits the 
export of unprocessed 
tobacco  
Tobacco  Licence  Tobacco Industry Act, 2001 Sections 20 and 21 
require persons to have a 
licence to export  
Unprocessed gold and 
copper ore and mineral 
concentrates of metallic 
minerals  Prohibited  March 2017  Unprocessed gold and 
copper ore and mineral 
concentrates of metallic 
minerals  
Diamonds  Licence  Kimberley Process  Diamonds  
Face-table (transparent) 
rough tanzanite 
gemstones weighing 1 g 
and more  Prohibited  Gazette of the United Republic of 
Tanzania No. 14 Vol. 91 dated 
2 April 2010 and Government 
Notice No. 146 published on 
2 April 2010  Prohibition on the export  
Minerals  Licence  Mining Act, 2010  Minerals require a licence 
to export or trade  
Sugar  Licence  The Sugar Industry Act, 2001  All exports of sugar must 
be licensed by the Sugar 
Board  
Milk Licence  Dairy Industry Act, 2004  Exportati on requires a 
permit from the Dairy 
Board  
Fish Licence  Fisheries Act, 2003; Fisheries 
Regulations, 2009  Requires an export permit 
from the Ministry of 
Livestock and Fisheries; 
only foreigners with an 
approved shore -based fish 
processing establishment 
are allowed to export fish  
Forest products  Licence  .. Processed logs require a 
permit  
Raw tea  Permit  Tea Act, 1997  Permission from the Tea 
Board for the export or 
import of tea seeds or any 
living parts of a tea plant 
is required  
Seeds  Permit  Seed Act  All seeds require a permit  
Radiation devices  Licence  Atomic Energy Act, 2003  Licence required from the 
Tanzania Atomic Energy 
Commission  
Radioactive materials  Licence  Atomic Energy Act, 2003  Licence required from the 
Tanzania Atomic Energy 
Commission  
Coffee  Licence  Coffee Industry Act No. 23, 2001  Licence required from the 
CBT 
Cotton lint and seed 
cotton  Licence  Cotton Industry Act, 2001  Licence required from the 
Tanzania Cotton Board  
Pyrethrum  Licence  Pyrethrum Act, 1997  Licence required from the 
Tanzania Pyrethrum Board  
Sisal Licence  Sisal Industry Act No. 2, 1997  Licence required from the 
Tanzania Sisal Board  
Firearms and ammunition  Permit  Firearms and Ammunition Control 
Act, 2015  Exportation requires a 
permit from the Registrar 
of Firearms  
Zanzibar  
Sand Permit  Environment Management Act, 
2016 Subject to permission  
Marine mollusc shells/sea 
shells  Certain restrictions 
apply  .. .. 
Waste and scraps of 
ferrous cast iron  Prohibited  Zanzibar Trading Act, 2013  Prohibits exportation  WT/TPR/S/384 • Tanzania  
 
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  Product  Type of 
restriction  Legal instrument  Summary  
Timber from  any wood 
grown in Zanzibar and 
wood charcoal  Prohibited  Zanzibar Trading Act, 2013  Prohibits exportation  
Any product subject to 
import restrictions (i.e. all 
products in the EACCMA 
Second Schedule)  Restricted  Zanzibar Trading Act, 2013  Those subject to import 
restrictions are also 
subject to export 
restrictions  
Used cargo vehicles  Restricted  Zanzibar Trading Act, 2013  The item is restricted and 
is subject to permission or 
other approval  
Used underwear, 
mattresses, and pillows  Prohibited  Zanzibar Tradin g Act, 2013  The items may not be 
exported  
Used goods  Permit  Zanzibar Trading Act, 2013  The item is restricted and 
is subject to permission or 
other approval  
Food security and price 
sensitive items: rice, 
sugar, wheat flour, petrol, 
diesel, and kerosene  Permit  Trade Transaction Regulation, 
2016 Controlled, and subject to 
permission  
.. Not available.  
Source:  Compiled by the Secretariat from various acts, as noted in the Table, and information provided by 
the authorities.  
3.2.4   Export support and promotion  
3.42.   Since 2010, the Tanzania Trade Development Authority (Tan Trade) has provided a number 
of services to exporters. According to its mandate, Tan Trade is involved in regulatory, executive, 
advisory, and consultative matters for both the internal and external  trade of Tanzania.31 Its 
mission is "to enhance Tanzania' s economic performance through trade development and 
promotion of goods and services for both local and foreign markets ". As such, it is involved in 
providing trade information, capacity building and  SME development, product and market 
development, market research and development (R&D), organizing and coordinating participation 
in trade fairs, providing advice on trade policy and facilitation, branding of Tanzanian goods and 
services, and providing ad visory services on business competitiveness.32 Tan Trade has a 
department on trade policy matters, as it recommends policy measures, prepares position papers, 
advises the Government on when to initiate trade remedies, and contributes to the implementation 
of integrated programmes in Tanzania. According to the Act establishing Tan Trade, the provisions 
therein apply to Mainland Tanzania and Zanzibar, except for internal trade matters.33  
3.43.   The MITI is also responsible for promoting both traditional and non -traditional exports, by 
encouraging producers to increase their export volumes, broaden export product and market 
coverage, and diversify the production base of the economy. It has special programmes for 
assisting SMEs, mainly to assist them in participating in  trade fairs both inside and outside the 
country. It also, in collaboration with private sector organizations, has a special programme to 
assist exporters in obtaining information concerning opportunities in potential export markets.34 
3.44.   On the Mainland, inte rnational trade fair exhibitions were held regularly during the review 
period, often coordinated by Tan Trade or the private sector. For Zanzibar, the Government is in 
the process of constructing a trade fair and exhibition grounds, with the main objective  of 
promoting trade through the organization of trade fairs and exhibitions to improve the marketing 
position of Zanzibar in the region.  
                                                
31 The Tanzania Trade Development Authority Act, Parliament Act No. 4 of 2009 and the Tanzania Trade 
Development Authority Regulations, 2010. Tan Trade online information. Viewed at: 
http://tantrade.or.tz/sites/all/public_files/docs/The_Tanzania_Trade_Development_Authority_Act__sw.pdf ; 
and http://tantr ade.or.tz/sites/all/public_files/docs/TanTrade%20Regulation.pdf .  
32 Tan Trade online information. Viewed at: 
http://tantrade.or.tz/sites/all/public_fi les/docs/CORPORATE%20PROFILE%20%28English%29.pdf . 
33 For Zanzibar, its Ministry of Trade and Industry handles internal trade matters.  
34 Information provided by the authorities.  WT/TPR/S/384 • Tanzania  
 
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  3.2.5   Export finance, insurance, and guarantees  
3.2.5.1   Finance and insurance  
3.45.   According to the authorities , there are no government  finance or insurance schemes for 
exports.  
3.2.5.2   Guarantees  
3.46.   Tanzania has a number of export guarantee schemes in operation, some under the 
Government, others operated by commercial banks, regional organizations, or foreign donor 
governments (Table 3.7). The Gove rnment operates two main guarantee schemes in the last 
decade, the Export Credit Guarantee Scheme (ECGS) and the Small and Medium Enterprises Credit 
Guarantee Scheme (SME -CGS). When established, the goal of the Schemes was " to support 
development of financ ing infrastructure in the economy that improve credit environment in order 
to support exporters with viable export business, but lacking adequate collateral to secure bank 
financing ".35 The SME -CGS specifically targets SMEs with capital requirements of from  TZS 5 
million to TZS 500 million.  
3.47.   The ECGS guarantees up to 75% of short -term loans , and up to 50% of long -term credits , 
in respect of all export -oriented businesses and development projects . To be eligible, a borrower 
must be a locally registered compan y with the  majority  of shares  owned by Tanzanian citizens;  be 
engaged in the export business, value addition or employment generation  with proven expertise in 
the field ; have an economically and financially viable project  assessed by a financial institutio n; 
and offer an appropriate security . 
Table 3.7 Guarantee schemes, 2016  
Guarantee scheme name  Source of funds  Participating 
financial 
institution  SME or 
agriculture  Estimated size of 
fund in Tanzania 
(USD ) 
SME-CGS Government of  
Tanzania  Various  SME .. 
Sustainable Agriculture 
Guarantee Fund (SAGF)  Rabobank  NMB Bank Agriculture  1.3 million  
ARIZ AFD Bank of Africa  Both 15 million (est.)  
Agricultural Credit 
Guarantee (AGC)  AGRA/Kilimo 
Trust/OFID  Stanbic Bank Agriculture  2.5 million  
ECGS  Government of 
Tanzania  Various  Both 35 million  
PASS  
DANIDA  Various  Agriculture  25 million  
SME and microfinance CGS  CRDB  Bank SME 7 million  
Women 's access to finance  CRDB  Bank Both 1.25 million  
African Guarantee Fund 
(AGF)  DANIDA/Spanish 
Government/AfDB  Various  Both 5 million (est.)  
USAID/AfDB  USAID/AfDB  CRDB  Agriculture  20 million  
USAID -DCA-NBC USAID -DCA National Bank of 
Commerce  Both 10 million  
Estimated total guarantee capital  122 million  
.. Not available.  
Source:  Financial Sector Deepening Trust (FSDT) online information. Viewed at: http://www.fsdt.or.tz/wp -
content/uploads/2016/06/Review -of-Guarantee -Schemes-small.pdf .  
3.3  Measures Affecting Production and Trade  
3.3.1   Incentives  
3.48.   Tanzania's main incentives are provided by the TIC, the EPZA, and the ZIPA, to attract 
foreign investors, or through the related export processing or SEZs for both the Mainland and 
Zanzibar  (Section 2.4). Certain duty or tax remissions have been offered to a variety of sectors 
during the review period, i.e. minerals, energy, and tourism (Section 4) or, more broadly, to 
others through VAT exemptions, i.e. agriculture and agricultural inputs ( Section 3.1.4). Also in the 
area of agriculture, there is the provision of subsidized inputs for farmers on fertilizer and seed 
(Section 4.1).  
                                                
35 Ministry of Finance and Planning online information. Viewed at: 
http://www.mof.go.tz/mofdocs/Disbursements/debt/ecg/ecgspolicy.doc .  WT/TPR/S/384 • Tanzania  
 
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  3.3.2   Standards and other technical requirements  
3.49.   Development of standards and technical regulations is a non -Union matt er, thus there are 
different laws, standards organizations, and procedures for the Mainland and Zanzibar. There has 
been increased harmonization of standards at regional level during the review period. As an EAC 
member (partner State), Tanzania has  impleme nted its standardi zation, quality assurance, 
metrology and testing (SQMT) pursuant to  the EAC SQMT Act of 24 May 2006  (see main report). 
The conformity assessment marks  for each partner State are now recognized , allowing for easier  
cross-border trade. Also, as a Member of the SADC , Tanzania adheres to  the SADC Protocol on 
Trade and its TBT Annex . There have been a few developments in this area during the review 
period.  
3.50.   The Tanzania Bureau of Standards  (TBS)  is a key body in Mainland  Tanzania's standards  
field. It issues certification of standards , mainly for manufactured products ; it is a member of the 
International Organization for Standardization (ISO) , and serves as the n ational enquiry point 
under the  WTO TBT Agreement  for Tanzania. The TBS is also r esponsible for manag ing information 
on technical regulations, proposing  and adopting standards, conformity assessment procedures, 
and sanitary and phytosanitary measures . 
3.51.   Zanzibar is similar organized, and established the Zanzibar Bureau of Standards (ZBS)  in 
2012 as its main standards organization; it was established pursuant to the Zanzibar Standards 
Act, 2011.36 The ZBS' main role is to develop, promote, and enforce standards on goods and 
services in Zanzibar. It operates three main product certification schemes — the standards mark of 
quality certification scheme, the batch certification scheme, and the tested product certification 
scheme.37 Zanzibar is particularly keen on ensuring that products, when they enter the Zanzibar 
market, comply with Zanzibar s tandards or other national or international standards. As such, a 
number of regulations have been issued pursuant to the Act, including the Certification, 
Compulsory Batch Certification of Imports, and Tested Products Regulations. The ZBS does not 
maintain  a separate enquiry point ; rather , all such work is conducted through the TBS enquiry 
point for Tanzania.  
3.52.   The main laws governing the sector on the Mainland include the Standards Act 2009 and the 
Food, Drugs, Cosmetics and Medical Devices Act. A number of  new regulations were issued under 
the latter during the review period, including: the Tanzania Food, Drugs and Cosmetics (Marketing 
of Foods and Designated Products for Infants and Young Children) Regulations, 2013; the 
Scheduling of Medicines Regulations , 2015; the Control of Medical Devices Regulations, 2015; the 
Registration of Premises, Importation and Exportation of Pharmaceutical Products and Raw 
Materials Regulations, 2015; and the Registration of Pharmaceutical Products Regulations, 2015.  
3.53.   Regarding  standards and conformity assessment procedures, the TBS performs 
standardization, conformity assessment (inspection, testing and certification), accreditation and 
metrology services based on ISO/International Electro Technical Commission (IEC) internation al 
best practices. The Mainland's standardization process involves technical committees, supervisory 
committees, and working groups that prepare preliminary draft standards. There are 8 supervisory 
committees and over 100 technical committees in place. Pur suant to the EAC SQMT Act, Tanzania 
issues national standards within six months that emanate from the harmonized EAC standards that 
are used by partner States for trade. These national standards are provided to the industry, 
traders and authorities for tra de and for regulatory purposes.  
3.54.   The TBS maintains a database, or Standards Catalogue, that compiles the information on its 
standards. It has over 1,722 standards (voluntary) or technical regulations.38 As of 2012, there 
were 136 national standards  or techn ical regulations; this figure has grown significantly during the 
review period, and has more than doubl ed, to 396 standards as of 2016 -17. The 
standards/technical regulations cover areas such as electrical engineering, mechanical 
engineering, civil enginee ring, environment, agriculture and food, packaging, labelling, textiles, 
building and construction, manufacturing, information and communication technologies (ICT), 
energy, quality management, conformity assessment, and services. Many are based on 
internat ional or regional standards/technical regulations. According to the authorities, about one 
                                                
36 ZBS online information. Viewed at: http://www.zbs.go.tz/acts_regulations.pdf .  
37 ZBS online information. Viewed at: http://www.zbs.go.tz/brochures_1.pdf .  
38 TBS online information. Viewed at: http://www.tbs.go.tz/standards/ .  WT/TPR/S/384 • Tanzania  
 
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  third are technical regulations ( 633 as of May 2018 ), often dealing with health and safety issues, 
and the remainder are voluntary standards.39 
3.55.   The TBS has nine testi ng laboratories covering sectors such as civil (building and 
construction), mechanical, and electrical, engineering; food and microbiology; textiles, leather and 
condoms; chemistry; metrology; cotton; and packaging. As of 2018, four have been accredited 
ISO 17025. The TBS also performs calibration and testing services; destination inspections; 
certification; and management of its TBS mark scheme. The TBS operates two types of control 
programmes, the Certificate of Conformity (CoC ) for imports, and the Pre-Shipment  Verification of 
Conformity (PVoC)  for exports (see also Section 3.1.1), with the view to ensuring compliance with  
the relevant  Tanzanian technical regulations . The CoC programme commenced in 2012, and the 
TBS has since issued 28,366  CoCs. The TBS contracted two private inspection companies to 
conduct the process. In 2018, Tanzania imposed a prohibition on the import and use of plastic 
bags of a certain thickness , except for emergency or medical reasons.40  
3.56.   According to the authorities, Tan zania, through the TBS, accepted and complies with the 
Code of Good Practice for the Preparation, Adoption and Application of Standards in Annex 3 to the 
TBT Agreement. During the review period, Tanzania submitted 184  new or revised technical 
regulations t o the TBT Committee; many refer to East Africa standards. During the review period, 
two specific trade concerns were raised in the TBT committee with respect to alcoholic beverage 
products.41 
3.57.   The TBS is a member of the Food and Agriculture Organization and the World Health 
Organization (FAO/WHO) Codex Alimentarius Commission; the East African Standards Committee 
(EASC); the SADC Committee of Experts for Standardization, Quality Assurance, Accreditation and 
Metrology (SQAMEG); the ISO; and the IEC.  
3.3.3   Sanitary and phytosanitary requirements  
3.58.   A significant amount of harmonization of SPS matters has been undertaken at the EAC level 
since the last Review (see main report). Tanzania has harmonized its SPS rules,  based on a 
number of EAC instruments , including Article s 105 to 110 of the Treaty . The EAC SPS Protocol 
covers p hytosanitary measures for fish and fishery products, food and feed safety measures , and 
sanitary measures for mammals , birds and bees. The process of ratification of the EAC Sanitary 
and Phytosanitar y Protocol (2013) by the Tanzania n Parliament is still in progress. However, 
Tanzania has taken steps to implement it by establishing a technical working group and thoroughly 
reviewing the Protocol.  As an SADC member, Tanzania subscribes to the SADC Protoc ol on Trade 
and its SPS Annex .  
3.59.   At the domestic level, the same laws and regulations remain in place.  However , Tanzania 
has been taking many steps to move forward, especially to prepare for the EAC  Phytosanitary 
Protocol. As such, it has been reviewing the Plant Protection Act , with a view to making 
amendments and taking steps to establish the necessary infrastructure.  
3.60.   The Ministry of Agriculture and the Ministry of Livestock and Fisheries of the Mainland are 
the main ministries involved in SPS measures, and oversee a number of acts and regulations 
concerning SPS matters, in particular the Plant Protection Act (1997) and the Plant Regulation Act, 
1999, which provide the rules for the import and export of plants, and p rocedures and conditions 
to be met before importation . Conditions for biological control agents are outlined in the Plant 
Regulation Act.  In addition, all pesticides to be imported and used in Tanzania must be registered 
by the R egistrar of the Tropical Pesticides Research Institute.    
3.61.   The Plant Quarantine and Phytosanitary Services  of the Ministry of Agriculture are 
responsible for SPS matters, including quarantine. For the period 2015/16, they inspected a total 
                                                
39 TBS online information. Viewed at: 
http://www.tbs.go.tz/images/uploads/LIST_OF_COMPULSORY_TANZANIA_STANDARD_AS_OF_MAY_2018.pdf .  
40 Those less than 30 microns are prohibited.  
41 Viewed at: http://tbtims.wto.org/en/specifi cTradeconcerns/View/507  and 
http://tbtims.wto.org/en/specificTradeconcerns/View/516.  WT/TPR/S/384 • Tanzania  
 
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  of 175,289.5  tonnes of imported crops and 714,372.4  tonnes of exported crops. Also , 5,516 
phytosanitary certificates and 635 import permits were issued.42 
3.62.   In the case of Zanzibar , SPS measures for exported agriculture products are pursuant to the  
Zanzibar Plant Protection A ct No. 9 0f 1997. Under this Act, the products are inspected or tested 
by the P lant Protection Division of the Ministry of Agriculture , according to appropriate official 
procedure s, before an export permit is granted , to ensure that the products are free f rom the 
quarantine pest specified by the importing countr y and that they conform with the current 
phytosanitary requirement s of the importing country . 
3.63.   SPS measures on food safety are implemented under the Tanzania Food, Drugs and 
Cosmetics Act, and are gui ded by the National Health Policy under the ministry responsible for 
health, in collaboration with other ministries and stakeholders. The government policy stipulated 
the establishment of a law for food safety, and the Tanzanian Food, Drugs and Cosmetics A ct, 
2003 was enacted; subsequently, the Public Health Act was enacted in 2009 to regulate all issues 
related to environmental health. In line with food security, this is regulated by the Ministry of 
Agriculture. To ensure the effective enforcement of the l aw, food safety control in Tanzania is 
carried out on a number of levels.  
3.64.   At the national level, policies related to food safety are formulated by the national 
regulatory authority, the Tanzania Food and Drugs Authority (TFDA). It has overall responsibilit y 
for all matters related to food safety, i.e. regulating manufacturing, import and export control, 
distribution of food products, monitoring of food contaminants, and conducting analyses of food 
products. The government Chemist Laboratory Agency is also i nvolved as a referral body in food 
safety analyses.  
3.65.   The local government authorities are responsible for routine enforcement of laws related to 
food safety control and environmental issues. The TFDA works with the TRA, health officers for 
plants and plant products,  and zoo sanitary inspectors for livestock and fisheries , to control 
imports and exports of food and related products.  
3.66.   During the review period, Tanzania has made one notification to the WTO SPS Committee. 
In 2017, it notified its Seeds (Amendment ) Regulations, that impose certain rules on the trade of 
seeds. Importation or exportation of seeds requires a licence or other permit from the Ministry of 
Agriculture (see also Sections 3.1.5 and 3.2.3).  
3.3.4   Competition policy and price controls  
3.3.4.1   Competition  
3.67.   Mainland Tanzania has a Fair Competition Commission (FCC) that has the overall regulatory 
authority and aim of  promoting and protecting effective competition in trade and commerce , 
including protecting consumers from unfair and misleading market conduct. Its ultimate goal is to 
increase efficiency  in the markets it regulates. In addition to the main competition act, the FCC 
also administers the Merchandise Marks Act, 1963, for the enforcement of trademarks (Section 
3.3.7), and oversees consumer protection m atters.  
3.68.   Competition matters on the Mainland are governed by the Fair Competition Act , 2003 (FCA), 
which entered into force in May 2004 . In Zanzibar, the Fair Competition and Consumer Protection 
Act is the main act governing competition matters on the isla nds.43 The FCA aims at promoting 
and protecting competition in markets , and preventing unfair and misleading market practice s, in 
order to increase economic efficiency, promote innovation, maximize efficient allocation of 
resources , and protect consumers . As such, it regulates mergers and acquisitions, abuse of 
dominan t practices , and anti -competitive behaviour between competitors , i.e. price fixing, bid 
rigging, etc. 
3.69.   The Act provides that all commercial activities and bodies are subject to its provisions, 
including state -owned enterprises (SOEs) engaged in commerce. Although state enterprises are 
covered, they are not liable for penalties or offenses under the Act. The FCA does not control anti -
                                                
42 Ministry of Agriculture online information. Viewed at: 
http://www.kilimo.go.tz/index.php/en/resources/view/annual -report -for-financial -year-2014-15.  
43 Zanzibar Assembly online inform ation. Viewed at: 
http://www.zanzibarassembly.go.tz/files/documents/bills/2018/A -fair-competition -bill.pdf .  WT/TPR/S/384 • Tanzania  
 
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  competitive practices in a number of sectors where there is a re gulator. These include the Energy 
and Water Utilities Regulatory Authority (EWURA) for the energy and water sectors; the Surface 
and Marine Transport Regulatory Authority (SUMATRA) for surface and marine water transport; 
the BOT for banking services; the T anzania Civil Aviation Authority for civil aviation; and the 
Tanzania Communications Regulatory Authority for electronic and postal matters.  
3.70.   The main elements covered in the FCA are the prohibition of anti -competitive agreements, 
mergers, the misuse of ma rket power, and consumer protection. In terms of dominance in the 
marketplace, the Act considers that a person or firm that restrains the market is one that has a 
market share that exceeds 35 %, and this dominance is restricted to a single firm or person. A  
similar threshold is applied in the area of mergers, where the substantive test is that a merger is 
prohibited if it creates a position of dominance with a 35% threshold.  
3.71.   In 2017, the FCC established the Fair Competition ( Threshold for Notification of a Merger) 
(Amendment) Order, 2017 , which amended the previous Order from 2006. The Order specifies  the 
thresholds for a merger that are notifiable to the FCC ; the new notifiable threshold is much higher, 
at TZS 3.5 billion , compared to the previous level of TZS 800 million . The increase in the threshold 
is to avoid capturing small acquisitions and mergers with no anti -competitive effects on the 
economy , and to reflect exchange rate depreciation.  
3.72.   One of the challenges reported by the FCC is the general lack of knowledge of competition 
matters by the general public. To address this, the FCC continues to undertake a number of public 
awareness initiatives.  
3.73.   The number of cases regarding competition ove r the review period was 25.  There has been 
a steady rise in the number of merger applications dealt with, rising from 24 in 2012 to 61 in 
2017. The FCC has also seen a significant increase in the number of advocacy and public 
awareness programmes, which in creased from 13 to over 2 50 between 2012 and 2017 
(Table  3.8). 
Table 3.8 Competition, performance highlights, 2012 -17  
Key result area  Item description  2012  2013  2014  2015  2016  2017  
Competition 
protection and  
promotion  Number of cases 
handled  3 5 2 7 6 2 
Number of advocacy 
and public awareness 
programmes  13 18 22 49 121 259 
Number of mergers 
applications received 
and dealt with  24 31 4 42 69 61 
Consumer 
protection  Number of consumer 
complaints handled  42 .. 34 72 83 114 
Fight against 
counterfeit ing  Number of containers 
seized  211 .. .. 103 213 500 
.. Not available.  
Source:  FCC, Annual R eport and Audited Accounts, 2012 -18, and information provided by the authorities.  
3.3.4.2   Price controls  
3.74.   A number of  price controls are in place on the Mainland and in Zanzibar for a number of 
products. On the Mainland, gasoline, diesel, kerosene and electricity are subject to price controls 
(see also Section 4.2.3). In Zanzibar, the Zanzibar Utilities Regulatory Author ity (ZURA) regulates 
prices of petrol, diesel, kerosene, water, and electricity.44 Ceiling prices are also set for rice, sugar, 
and wheat flour in Zanzibar.  
3.3.5   State trading, SOEs, and privatization  
3.3.5.1   State trading  
3.75.   Tanzania has not made any notifications to the WTO since its inception regarding state -
trading enterprises pursuant to Article XVII:4(a) of GATT 1994 and paragraph 1 of the 
                                                
44 ZURA online information. Viewed at: www.zura. go.tz/resource -center/ .  WT/TPR/S/384 • Tanzania  
 
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  Understanding on the Interpretation of Article XVII. Nevertheless, it would appear that there are 
several enterprises that meet th e definition of state trading enterprise pursuant to the WTO rules, 
such as many of the marketing boards outlined in Section 4.1.1.3.4 and Table 4.7, including the 
Zanzibar State Trading Corporation. Certain other SOEs outlined in Section 3.3.5.3 and Table  A3.2 
appear to also have exclusive rights.  
3.3.5.2   Privatization  
3.76.   The Government of Tanzania pursued a number of privatizations in the 1990s but has not 
pursued any in recent years, nor does it have a policy on the matter. On the other hand, the 
Government has dec ided to buy back shares in companies that were once at least partially 
privatized. The main companies that have been re -nationalized include Tanzania Railway Limited, 
Air Tanzania, and Tanzania Telecommunications Company Limited  (Table 3.9). According to t he 
authorities, the Government is examining whether the privatized firms are operating per their 
agreements and, thus, whether to re -nationalize or not.  
Table 3.9 Government re -purchases or sales of entities, 2012 -17  
Company  Details (purchased or sold)  
Re-purchases  
Tanzania Railway Limited  RITES -INDIA (51% shares)  
Kilimanjaro Airport Development Company  Mott McDonald International (41.4%), South African 
Infrastructure Fund (30%), and Inter Consult Limited  
(4.6%)  
Tanzania Telecommunications Company Limited 
(TTCL)  BHART AIRTEL (35%)  
Kiwira Coal Mine  Tan Power Resources (100%)  
General Tyre  Continental AG (26%)  
Air Tanzania Company Ltd  South African Airways (51%)  
Privatization  
Tanzania Breweries Ltd  Government sold a 4% share  
Tanzania Cigarette Company  Government sold a 0.3% share  
Source:  Information provided by the authorities.  Treasurer Registrar Office.  
3.3.5.3   State -owned enterprises (SOEs)  
3.77.   Tanzania maintains a significant number of public enterprises or parastatals under the 
Government's control, often with the State holding a majority share (Table 3.10, Table  A3.2). Most 
of the Government's participation is in non -profit institutions that r eceive government subventions 
(130) but there are nearly 50 businesses in which the Government participates. The State 
continues to play an important role in many sectors of the economy, in particular the energy and 
transport sectors (Table  A3.2).  
Table 3.10 Overview of SOEs  
Organization type  Number  
Mainland  
Non-profit institutions which receive government subventions  130 
Business -oriented institutions , of which the Government is a minority shareholder  31 
Business -oriented institutions owned 100% by the Government  17 
Zanzibar  
Central government units  8 
Public non -financial corporations  11 
Other corporations  8 
Note:  The other category of state enterprises under the authority of the Treasury Registrar, " Non-business 
oriented institutions which do not receive government subventions" , comprise 20 enterprises but , 
due to their non -business nature and non -funding status, they are not included here.  
Source:  Office of the Treasury Registrar online information.  Viewed at: 
http://www.tro.go.tz/index.php?option=com_jdownloads&task=download.send&id=4&catid=4&m=0
&Itemid=174&lang=en .  
3.3.6   Government  procurement  
3.78.   Public procurement in Mainland Tanzania has been carried out on a decentralized basis since 
2004 with the enactment of the Public Procurement Act (PPA) at that time, which moved the 
country from a centralized system to a decentralized one. Thu s, ministries, departments, agencies WT/TPR/S/384 • Tanzania  
 
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  (MDAs) and local government authorities (LGAs) could carry out their procurement without any 
financial thresholds  under the PPA. As part of these reforms, the Central Tender Board was 
abolished, along with its functions , and a regulatory body for public procurement, the Public 
Procurement Regulatory Authority (PPRA) was established in 2005. The main function of the PPRA 
is to ensur e that MDAs and LGAs adhere to the provisions of the Act . It also sets standards, 
monitors compliance, and builds procurement capacity.  
3.79.   Government procurement for the  Mainland is carried out using procedures stipulated in the 
PPA 2016, as amended , and its Regulations.45 For Zanzibar , the Public Procurement  and Disposal 
of Public Assets  Act, 2016  governs this area, and the Zanzibar Public Procurement and Disposal of 
Public Assets Authority (ZPPDA) was created as an autonomous body to oversee all public 
procurement and disposal activities.46 The PPA covers procurement of goods, works, services, and 
non-consultancy services, and disposal by public bodies and other bodies mandated by 
government to carry out public functions; non -government entities, when financed from public 
finances; and PPP projects in their relevant stages. These procuring entities ( PEs) have certain 
responsibilities under the Act, such as preparing an annual procurement plan, ensuring fairness, 
and following the rules in the Act. They are also required to use competitive tendering, using the 
methods prescribed in the Regulations, dep ending on the type and value of the procurement.  
3.80.   The Regulations prescribe nine main tendering methods - international competitive 
tendering, national competitive tendering, restricted tendering, competitive quotations (shopping), 
single source procuremen t, minor value procurement, micro value procurement, force account, 
and direct from manufacturer, dealer, or service provider procurement (Table 3.11). According to 
the PPRA, by default, competitive tendering is the main method of tendering. The Act and it s 
Regulations provide that foreign firms are allowed to participate in tendering except where the 
procuring entity has limited participation in procurement proceedings on the basis of nationality. 
The Act provides that PEs may grant a margin of preference for the benefit of tenders for certain 
goods, works, or services provided by Tanzanians, if it is clearly stated in the tender documents 
subject to the provisions of the Act. A margin of preference of up to 10% can be given to local 
firms for contracts for  works, and consultancy or non -consultancy services; and a margin of 
preference of up to 15% for domestically manufactured or produced goods and related services. 
Regarding Zanzibar, the procurement authority is currently being established and is starting to be 
operational.   
Table 3.11 Public procurement methods and thresholds, 2018  
Tendering method  Goods  Works  Non-consultancy 
services  Disposal of public 
assets  
International 
competitive tendering  No limit  No limit No limit  No limit  
National competitive 
tendering  Up to TZS  5 billion  Up to TZS 15 
billion  Up to TZS 5 billion  Up to TZS 5 billion  
Restricted tendering  No limit, but shall 
be justified  No limit, but shall 
be justified  No limit, but shall 
be justified  No limit, but shall 
be justified  
Competitive 
quotations 
(shopping)  Up to TZS  120 
million  Up to TZS 200 
million  Up to TZS 100 
million  - 
Single source 
procurement  No limit, but shall 
be justified  No limit, but shall 
be justified  No limit, but shall 
be justified  - 
Minor value 
procurement  Up to TZS 10 
million  Up to TZS 20 
million  Up to TZS 10 
million  - 
Micro value 
procurement  Up to TZS 5 million  Up to TZS 10 
million  Up to TZS 5 million  - 
Force account  - No limit, but shall 
be justified  - - 
Direct from 
manufacturer, dealer, 
or service provider 
procurement  No limit, but shall 
be justified  No limit, but shall 
be justified  No limit, but shall 
be justified  - 
- Not applicable.  
Source:  The Public Procurement Amendment Regulations, 2016. PPRA  online information. Viewed at: 
https://www.ppra.go.tz/phocadownload/attachments/Regulations/regulations_amendment2016.pdf .  
                                                
45 PPRA online information. Viewed at: https://www.ppra.go.tz/index.php/2012 -03-07-08-56-44/public -
procurement -act and https://www.ppra.go.tz/index.php/2012 -03-07-08-56-44/public -procurement -act.  
46 Zanzibar Assembly online information. Viewed at: 
http://www.zanzibarassembly.go.tz/act_2016/act_11.pdf .  WT/TPR/S/384 • Tanzania  
 
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  3.81.   The PPRA is the sectors' main regulatory body ; it has regulatory functions and oversight 
powers. While there is no overriding government procurement policy, the PPRA is currently guided 
by its second Medium -Term Strategic Plan (MTSP), 2015/16 –2019/20 .47 The Plan builds  on the 
objectives and achievements of the first MTSP, and sets five s trategic objectives for this period, as 
follows: improved HIV/AIDS reduction programme; the implementation of the National Anti –
Corruption Strategy; improved performance in public procur ement; enhanced outreach capacity 
and visibility; and strengthened capacity to deliver quality services.  
3.82.   The PPRA had ov ersight over 493 PEs in FY 2015 -16, of which about 65%, or 322, 
submitted information on their award of contracts for the year. Thus, it  is not possible to get exact 
figures on the size of public procurement. However, according to the PPRA, it is estimated that the 
reporting covers more than 85% of government expenditure on procure ment because the 
25 largest public procurers have provided the required information. Tanzania report ed about 
TZS 3 trillion in public procurement in 2015/16 , a trend that has continued to decline during the 
review period (Table 3. 12). Public procurement is highly concentrated in the top few procurers, as 
the top t hree (TANESCO, Tanroads, and PPF -pension fund) account for over one third of the 
reported total, and the top 25 about 75% of the total.  
3.83.   There have been several developments during the period under review. One of the most 
significant was the amendment of th e Act and Regulations in 2016.48 These amendments were 
aimed at making improvements in a number of areas, such as increasing transparency and 
accountability, minimizing transaction costs and processing times, increasing benefits to special 
groups such as wo men, improving the ability to purchase directly from manufacturers and 
wholesalers, reducing corruption loopholes, and enhancing the participation of local firms.  
Table 3.12 Overview of public procurement, 201 2-16  
 2012 -13 2013 -14 2014 -15 2015 -16 
No. of procuring entities whose contract details 
were received  265 235 267 322 
% of procuring entities who sent in details  67.3%  .. 57% 65% 
Number of contracts whose details were received  78,738  74,208  75,509  109,575  
Value of contracts received (TZS billion)  4,884  4,859  4,349  3,001  
Total budget (TZS billion)  15,120  18,249  19,853  22,496  
.. Not available.  
Source:  PPRA Annual Reports. Viewed at:  http://tenders.ppra.go.tz/tanzania -procurement -journal.php?id=2 .  
3.84.   The Procurement Management Information System (PMIS) facilitates the online submission 
of procurement informatio n to the PPRA. In 2016, the PMIS was further improved to accommodate 
new features and legal requirements on reporting, thus reducing reporting times and improving 
efficiencies. As of 2016, the PPRA was in the process of developing an e -procurement system.  
3.85.   Disputes concerning public procurement can be addressed to a two -tiered mechanism, as 
outlined in the PPA. A first step involves an administrative review by the PE. If the case is not 
resolved, can be brought to the Public Procurement Appeals Authority ( PPAA). The PPAA is an 
independent review body set up to handle disputes under the PPRA. If the matter is still not 
resolved, it can be brought to the High Court for judicial review . In 2015/16, the PPAA handled 20 
appeal cases.49 
3.3.7   Intellectual property rights  
3.86.   Intellectual property rights (IPRs) are a non -Union matter, thus different laws and 
protections are in place for the Mainland and Zanzibar. Not many developments took place in the 
intellectual property (IP) area during the review period, as most of the ma in laws did not undergo 
substantial revision. One development has been new legislation on plant breeders' rights for both 
the Mainland and Zanzibar.  
                                                
47 PPRA online information. Viewed at: 
https://www.ppra.go.tz/index.php/component/phocadownload/category/2 -medium -term-strategic -
plan?download=10:Medium%20Term%20Strategic%20Plan .  
48 PPRA online information. Viewed at: 
https://www.ppra.go.tz/phocadownload/attachments/PPA_Ammendment_Act_2016.pdf ; and 
https://www.ppra.go.tz/ phocadownload/attachments/Regulations/regulations_amendment2016.pdf .  
49 PPRA online information. Viewed at: 
http://tenders.ppra.go.tz/model/tpj/annualPerf ormanceEvaluationReport2015_16_main.pdf .  WT/TPR/S/384 • Tanzania  
 
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  3.87.   The main IP laws for Mainland Tanzania are the Trade and Service Marks Act , 1986, the 
Patents (Registration ) Act, 2002, and the Copyright and Neighbouring Rights Act , 1999. The IP  
legal regime in Zanzibar is based on three main laws : the Zanzibar Industrial Property Act No. 4,  
2008, the Copyright Act No. 14,  2003, and the Plant Breeders' Rights Act No. 1, 2014  
(Table  3.13).  
3.88.   For the Mainland, t he BRELA , an Executive Agency under the MITI, is  responsible for trade 
and service marks registration, granting of patents , and administration of the registration of 
copyrights. The Copyright Society of Tanzani a (COSOTA ) is an institution set up under the 
Copyright Act to protect copyright and related rights, including right holders , by reducing piracy, 
and collecting and distributing  royalties or other remunerations. The Ministry of Agriculture is the 
main agency involv ed in the oversight of plant breeders' rights. The BRELA  has undertaken a 
number of initiatives during the review period,  including introducing the Industrial Property 
Automation System (IPAS)  to allow for electronic submissions and a more efficient regist ration 
process.  
3.89.   In Zanzibar, the Zanzibar Business and Property Registration Agency (BPRA) is the main 
government body for IP registration. The BPRA is conferred with powers under the Zanzibar 
Industrial Property Act No. 4 , 2008 to administer industrial p roperty titles including trademarks, 
patents, industrial designs, geographical indications  (GIs), layout designs of integrated circuits , 
etc. It does not have powers for copyright or p lant varieties and breeders ' rights.  
3.90.   Both the Mainland and Zanzibar have no separate legislation governing the protection of GIs 
of origin, but Zanzibar's Industrial Property Act contains certain sections on GIs. It provides for 
remedies ; the availability of protection regardless of registrat ion and presumption;  the exclusion 
from protection ; the application for registration and the right to file an application ; the 
examination, opposition and registration of GIs; the right of use ; and the invalidation and 
rectification of registration . Furthermore,  efforts are underway , through the African Regional 
Intellectual Property Organization (ARIPO)  to coordinate and develop GI legislation and 
infrastructure in the African States it represents. Tanzania has undertaken initiatives to develop a 
national branding strategy. Zanzibar , in cooperation with governmental and non -governmental 
international organizations like WIPO and Light Year , has taken initiatives to brand its cloves and 
spices. The governing laws towards the move for Zanzibar are the Industrial Property and the 
Copyright Act No. 14 of 2003.  
3.91.   In 2016, Mainland Tanzania was starting to develop a national IP  strategy to coincide with 
its National Intellectual Property Policy . According to the authorities, as of October 2018, both the 
strateg y and policy were still works -in-progress. Zanzibar  has developed its IP strategy under the 
Ministry of Trade , and is currently working on its IP policy.  
Table 3.13 Main IP legislation and regulations, 2018  
Title Subject  
Mainland  
Trade and Service Marks Act , 1986 Trade and service marks  
Trade and Service Marks Regulations  Trade and service marks  
Patents (Registration) Act , 2002  Patents and utility models  
Patents Regulations, 1994  Patents and utility models  
Copyright and Neighbouring Rights Act No. 7 , 1999 Copyright  
Copyright (Licensing of Public Performances and Broadcasting) 
Regulations , 2003, GN No. 328  Copyright  
Copyright and Neighboring Rights (Production and Distribution of 
Audio and Audio – Visual Recordings) Regulations, 2006 , GN No.  18 Copyright  
Copyright and Neighboring Rights (Reproduction and Rental Rights) 
Regulations,  2014 Copyright  
United Kingdom Designs (Protection) Ordinance of 1936, Chapter 
219 of the Laws of Tanzania  Industrial designs  
Merchandise Marks Act , 1963  Trade names, trademarks  
Merchandise Marks Regulations , 2008  Trade names, trademarks  
Plant Breeders Act , 2012 Plant varieties  
Zanzibar  
Industrial Property Act , 2008 Trademarks, patents, industrial 
designs, layout designs of integrated 
circuits  
Copyright Act No. 14 , 2003 Copyright  
Zanzibar Plant Breeders Rights Act , 2014 Plant varieties  
Source:  WTO Secretariat , compiled from various sources.  WT/TPR/S/384 • Tanzania  
 
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  3.92.   The Mainland's patent legislation provides for the protection of inventions by patent, if they 
meet certain patentable criteria, for an initial period of ten years, which can be extended twice to a 
maximum of 20 years. Utility models are subject to a protection period of seven years. They  are 
eligible for registration i n Mainland Tanzania under the Patents Act . In Zanzibar, there are 
provisions for utility models but the BPRA office lack s qualified examiners for patent examination, 
so it only file s application s done outside the territory but there is no equivalent for th eir 
registration in Zanzibar.  
3.93.   Trade and service mark registration is governed by the Trade and Service Marks Act , 1986, 
which provides protection for a trademark if it is distinctive. The period of protection is for an initial 
period of seven years, and may be renewed for further periods of ten years indefinitely.  
3.94.   The Copyright and Neighbouring Rights Act provides copyright protection for the duration of 
the life of the author plus 50 years after his/her death and, in the case of joint authorship, it 
applies to the life of the last surviving author plus 50 years. Copyright protection is available to 
authors who are Tanzanian nationals or have their habitual residence in Tanzania. One new 
development during the period was the issuance of the Copyright and N eighboring Rights 
(Reproduction and Rental Rights) Regulations,  2014.50 
3.95.   The new legislation in 2012 on plant breeders' rights for the Mainland created a n ew and 
independent protection system for plant varieties that were not registrable under the Patents Ac t. 
It establishes a Plant Breeders ' Rights Registry  for the  grant ing of plant breeders' rights  and for 
the facilitat ion of the  transfer and licensing of plant breeders' rights . It also sets out criteria or 
conditions for varieties that may be protected.51 The Zanzibar Plant Breeders Rights Act , 2014 
mirrors the Mainland's Act, and basically contains the same or similar provisions.52  
3.96.   In terms of enforcement of IPRs, several entities may be involved, including the customs 
authorities (the TRA), the police, qua si-judicial bodies, and the court system.  
3.97.   Tanzania is a member of WIPO and ARIPO. It is a party to the following WIPO treaties: the 
Nice Agreement Concerning the International Classification of Goods and Services for the Purposes 
of the Registration of Ma rks, the Patent Cooperation Treaty, the Berne Convention for the 
Protection of Literary and Artistic Works, and the Paris Convention for the Protection of Industrial 
Property . During the review period, Tanzania adopted t he Arusha Protocol for the Protectio n of 
New Varieties of Plants  and joined the International Convention for the Protection of New Varieties 
of Plants (UPOV) . 
                                                
50 COSOTA online information. Viewed at: http://www.cosota.go.tz/wp -
content/Regulations/Reproduction%20and%20Re ntal%20Rifgts.pdf .  
51 WIPO online information. Viewed at: http://www.wipo.int/wipolex/en/text.jsp?file_id=409784 .  
52 WIPO online information. Viewed at: http://www.wipo.int/wipolex/en/details.jsp?id=16192 .  WT/TPR/S/384 • Tanzania  
 
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  4  TRADE POLICIES BY SE CTOR  
4.1  Agriculture, Forestry, and Fisheries  
4.1.1   Agriculture  
4.1.  Agriculture continues to be one of the  most important sectors in Tanzania, despite recent 
policy emphasis on industrialization. It is an important contributor to GDP, at approximately 
30.1%1 in 2017, and is the main sector for employment and foreign exchange earnings.2 Tanzania 
has a total are a of 947.3 thousand km2, of which 46% is considered arable land.3 Most farms 
remain small and are farmed by smallholders. The terrain is varied and has a number of different 
climatic zones, and is thus suitable to many varieties of crops and seasonal agric ultural 
productions. The sector can also be divided into cash crops for export (e.g. cashews, tobacco, 
coffee, etc.4) that have traditionally been the most important, and food for domestic consumption. 
There is increasing awareness in the Government to pro mote the downstream food processing 
sector in Tanzania, in order to increase the value added in the country and increase export 
earnings (Section 4.3). Tanzania remains a net exporter of agricultural products.  
4.2.  The agriculture sector in Zanzibar can also be  distinguished between two main sectors — food 
for domestic consumption and for export. There are three main crops for export - cloves, seaweed, 
and spices (e.g. pepper,  cinnamon, ginger, saffron), of which cloves dominate in terms of the 
value of exports . In 2017, clove exports amounted to TZS 121.8 billion out of total goods' exports 
of TZS 145.8 billion.5  
4.1.1.1   Production  
4.3.  Tanzania produces a wide variety of crops, for both domestic consumption and export (Table 
4.1). The largest crops in terms of quantity ar e maize, rice, and cassava, generally destined for 
domestic or regional consumption. There has been a general increase in agricultural production 
during the period 2012 -17. Among the cash crops, there has been an overall increase in output 
during the perio d for most, with the exception of pyrethrum and sisal, where production levels 
declined. The output declined mainly due to inadequate varieties of seed s, and deficiencies in 
marketing struct ures. In terms of value, there was an increase in agricultural cash crops during 
the period 2012 -17 for tobacco , coffee and cashew nuts ; but in 2017-18 the value of cashew nuts 
increased even more, followed by tobacco and coffee . Despite the increase in product ion for most 
crops, Tanzania 's agriculture sector remains vulnerable , due to its dependence on rainfall and 
limited irrigation, its limited use of improved yield varieties, and high costs of fertili zer and other 
agricultural chemical treatments.6 
4.4.  The outpu t of meat and dairy on the Mainland increased steadily during the review period, 
with production in Zanzibar varying more (Tables 4.2). Livestock production is concentrated in 
beef and chicken meat, and nearly all livestock production is destined for domes tic consumption.  
                                                
1 The primary sector that includes agriculture and mining is reported at 29% by the Government, but 
the Agricultural Council of Tanzania reports 25% for the sector. Agricultural Council of Tanzania online 
information. Viewed at: http://actanzania.or.tz/publication/multiple -regulations -agricultural -sector -research -
study/ .  
2 Tanzania National Bureau of Statistics online information, 2016/17 Annual Agri culture Sample 
SurveyInitial Report . Viewed at: https://nbs.go.tz/nbstz/index.php/english/st atistics -by-subject/agriculture -
statistics/1002 -2016-17-annual -agriculture -sample -survey -initial -report .  
3 Tanzania National Bureau of Statistics online information. Tanzania in Figures, 2016 . Viewed at: 
https://nbs.go.tz/nbs/takwimu/references/Tanzania_in_Figures_2016.pdf  and 
http://tanzania.countrystat.org/home/en/ .  
4 Also including sugar, pyrethrum, tea, cotton,  and sisal.  
5 Zanzibar Statistical Abstract 2017 , Office of the Chief Government Statistician Zanzibar online 
information. Viewed at: http://www.ocgs.go.tz/publication.php# .  
6 ReportLinker online infor mation. Viewed at: https://www.reportlinker.com/p02798355/The -Agri-
Business -Sector -in-Tanzania.html .  WT/TPR/S/384 • Tanzania  
 
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  Table 4.1 Production of main crops, 2014 -17 
  Year 2014 -15a Year 2016 -17a  
Quantity harvested 
('000 tonnes)  
Quantity sold  
('000 tonnes)  
Average price 
(TZS/kg)b 
Estimated value sold  
(TZS billion)d 
Quantity harvested 
('000 tonnes)  
Quantity sold  
('000 tonnes)  
Average price 
(TZS/kg)b 
Estimated value sold  
(TZS billion)d 
Maize  7,764  2,060  529 1,089  5,767  1,269  565 717 
Paddy  2,486  717 944 677 1,383  562 860 483 
Cassava  1,099  321 550 176 629 287 582 167 
Bananas  631 100 849 85 488 193 1,825  352 
Sorghum  532 99 703 70 465 45 699 31 
Sugarcane  493 490 444 218 447 236 694 164 
Cashew nuts  193 179 1,335  239 388 380 2,815  1,069  
Beans  394 134 1,184  158 379 142 1,364  193  
Sunflowers  29c 16c 473c 8c 353 195 698 136 
Tomatoes  218 125 681 85 247 228 718 164 
Groundnuts  380 142 1,116  158 216 77 1,137  87 
Cotton  525 336 883 297 195 187 1,162  217 
Pigeon peas  102 69 1,381 -
1,705  95-118 141 43 584 25 
Tobacco  167 112 2,154  241 128 99 4,231  421 
Onions  24 17 1,431  25 118 106 833 88 
Sisal 60 57 2,015  115 64 61 2,356  143 
Sesame  204 149 1,594 -
1,639  231-244 57 52 1,441  76 
Amaranths  4 4 443 2 52 47 407 19 
Coffee  108 69 2,437  168 43 36 2,388  85 
Tea 92 92 311 29 28 27 224 6 
Wheat  52 27 750 20 24 17 820 14 
Cacao  .. .. .. .. 20 20 1,865  37 
Palm oil  4 4 904 3 17 13 1,313  17 
Okra 22 13 758 10 17 15 1,191  18 
Chilies  2 2 798 1 14 14 1,863  26 
Cloves  4 3 11,096  31 6 6 13,807  86 
Cinnamon  1 1 3,201  3 1 0 2,664  0 
Black pepper  .. .. .. .. 0 0 1,308  0 
.. Not available.  
a Covering production in both Mainland Tanzania and Zanzibar during the short and long rainy 
seasons.  
b Averages over short and long rainy seasons.  
c Withheld to avoid disclosing data for individual operations. In the case of sunflowers, o nly the short 
rainy season data is available.  
d Figures are estimated as quantity sold multiplied by average price.  
Source:  Tanzania National Bureau of Statistics' Annual Agricultural Sample Survey Reports, 2014 -15 and 
2016-17 online information. Viewed at: 
https://www.nbs.go.tz/nbs/takwimu/Agriculture/Annual_Agricultural_Sample_Survey_Report2014_1
5.pdf and https://nbs.go.tz/nbs/takwimu/Agriculture/2016_17_AASS_%20report.pdf .  
Table 4.2 Production of livestock and poultry products, Mainland, 2012 -17 
  2012  2013  2014  2015  2016  2017  
Milk production  
('000 litre s) 1,853,099  1,921,640  1,990,183  2,058,726  2,127,267  2,987,000  
Meat production  
('000 tonne s) 533  553  599  598 649  558  
  Beef 290  300  309  319  324  395  
  Goat/sheep  111  116  120  125  129  81  WT/TPR/S/384 • Tanzania  
 
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    2012  2013  2014  2015  2016  2017  
  Pork 47  51  74  54  91  19  
  Chicken  85  87  95  100  104  64  
Egg production  
('000) 3,495  3,725  3,900  4,154  4,353  2,758  
Source:  Statistical Abstract 2016 . Tanzania National Bureau of Statistics online information. Viewed at: 
https://nbs.go.tz/nbs/takwimu/Abstracts/Statistical_Abstract_2016.pdf , and information provided by 
the authorities.  
4.1.1.2   Trade  
4.5.  Agriculture continues to be the most important exp ort sector for Tanzania, and its importance 
grew over the period; it accounted for 28% of total exports in 2012, and 38% in 2017 (Table  4.3). 
This growth is largely attributed to the export of cashew nuts (see also Section 4.1.1.4.1), which 
overtook the ot her main export crops, tobacco and coffee, during the period. This growth, 
however, was only partially attributed to increased output; the larger gains in value were due to 
higher export prices. There has been a significant drop in cotton exports over the period, due to 
declining world prices.  
4.6.  Imports  of agricultural products remained relatively flat during the review period, accounting 
for about 10% of total imports. Further, they were highly concentrated in three main products — 
palm oil, wheat, and suga r (Table 4.4). In recent years, there has been a shift from being an 
exporter to an importer of sugar. According to the authorities, this is attributed to a growing 
demand for industrial sugar for the food and beverage industry. There is also a lack of cap acity to 
refine sugar in Tanzania.  
Table 4.3 Major exported agricultural productsa, 2012 -17 
HS 
codes  Product description  2012  2013  2014  2015  2016  2017  
  Value in T ZS billion  
Agriculture (WTO definition)  2,475.9  2,133.3  4,078.1  4,470.4  3,735.2  3,496.9  
% of total exports (excl. re -exports)  28.4%  25.8%  43.0%  38.3%  36.0%  37.5%  
0801 Fresh or dried cashew nuts  256.3  302.8  654.9  500.8  760.6  1,207.5  
2401 Unmanufactured tobacco; tobacco refuse  296.2  160.3  320.9  431.2  787.7  436.4  
090111  Coffee (excl. roasted and decaffeinated)  276.9  256.3  201.1  308.7  329.6  276.5  
0713 Dried leguminous vegetables, shelled  158.8  137.4  295.2  529.5  347.7  206.8  
120740  Sesamum  seeds  125.3  199.0  538.9  258.4  283.4  165.3  
0712 Dried vegetables  3.7 7.1 10.5 180.4  11.2 146.1  
1101 Wheat or meslin flour  66.3 61.9 26.8 38.7 16.5 121.8  
010290  Live bovine animals (excl. cattle and 
buffalo)  0.1 0.8 0.3 10.8 0.5 117.5  
0902 Tea, whether or not flavoured  88.0 87.3 73.1 92.2 97.4 109.1  
1007 Grain sorghum  8.6 0.1 0.2 0.0 0.3 51.4 
2302 Bran, sharps and other residues  20.1 21.9 38.2 555.1  61.0 48.1 
2402 Cigars, cheroots, cigarillos and cigarettes, 
of tobacco or of tobacco substitutes  54.5 51.6 215.4  152.6  22.2 46.7 
5203 Cotton, carded or combed  57.4 25.9 23.4 18.4 29.9 42.9 
5201 Cotton, not carded or combed.  198.6  138.4  64.3 39.5 71.8 38.7 
1801 Cocoa beans, whole or broken, raw or 
roasted  32.4 26.1 36.8 46.1 46.4 37.3 
230630  Oilcake and other solid residues, resulting 
from the extraction of sunflower seeds  70.8 39.8 108.9  13.9 44.8 28.9 
0907 Cloves, whole fruit, cloves and stems, 
neither crushed nor ground  58.7 68.8 51.1 5.8 22.6 18.5 
230610  Oilcake and other solid residues, resulting 
from the extraction of cotton seeds  11.1 12.6 41.1 10.5 328.4  9.9 
  Net weight ( '000 tonne s) 
0801 Fresh or dried cashew nuts  134.8  155.0  199.6  171.5  219.3  331.1  
2401 Unmanufactured tobacco; tobacco refuse  107.6  71.3 76.5 65.7 74.3 48.3 
090111  Coffee (excl. roasted and decaffeinated)  50.6 61.8 44.0 57.8 57.9 41.4 
0713 Dried leguminous vegetables, shelled  164.3  175.8  228.5  196.7  319.2  160.8  
120740  Sesamum  seeds  76.7 87.7 116.9  135.1  133.8  80.4 
0712 Dried vegetables  7.6 13.6 19.1 18.0 43.2 47.5 
1101 Wheat or meslin flour  68.8 67.0 18.5 39.6 17.9 36.4 
010290  Live bovine animals (excl. cattle and 
buffalo)  0.1 0.3 0.1 1.0 0.3 7.1 
0902 Tea, whether or not flavoured  27.8 26.4 27.8 29.3 26.3 27.5 
1007 Grain sorghum  15.9 1.4 0.7 1.1 1.0 0.6 
2302 Bran, sharps and other residues  136.3  138.9  148.2  151.0  146.0  171.4  
2402 Cigars, cheroots, cigarillos and cigarettes, 
of tobacco or of tobacco substitutes  3.1 4.3 3.6 3.6 1.1 2.7 WT/TPR/S/384 • Tanzania  
 
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  HS 
codes  Product description  2012  2013  2014  2015  2016  2017  
5203 Cotton, carded or combed  30.7 16.4 47.6 7.3 8.5 12.8 
5201 Cotton, not carded or combed  92.8 68.3 35.7 23.6 24.5 12.6 
1801 Cocoa beans, whole or broken, raw or 
roasted  8.9 9.9 11.0 11.3 9.3 10.1 
230630  Oilcake and other solid residues, resulting 
from the extraction of sunflower seeds  88.8 93.8 64.1 35.3 67.4 73.6 
0907 Cloves, whole fruit, cloves and stems, 
neither crushed nor ground  6.0 4.1 2.8 0.3 1.3 1.0 
230610  Oilcake and other solid residues, resulting 
from the extraction of cotton seeds  51.3 66.6 32.2 12.2 30.7 22.8 
a Major products are identified by the size of exported values in 2017.  
Source:  WTO Secretariat's calculations, based on trade data provided by Tanzania National Bureau of 
Statistics . 
Table 4.4 Major imported agricultural productsa, 2012 -17 
HS code  Product description  2012  2013  2014  2015  2016  2017  
   Value in TZS billion  
Agricultural imports (WTO definition)  1,955.1  1,636.3  1,953.3  1,713.3  1,877.9  1,798.6  
% of total imports  10.6%  8.2%  9.6%  5.8%  10.9%  10.4%  
151110  Crude palm oil  237.4  194.1  300.4  211.1  365.5  352.7  
1001 Wheat and meslin  (excl. seed 
for sowing, and durum wheat)  652.9  497.9  511.2  444.5  413.5  345.4  
1701 Cane or beet sugar and 
chemically pure sucrose, in solid 
form 265.6  212.3  154.6  196.9  283.7  238.4  
151190  Palm oil and its fractions, 
whether or not refined  152.0  113.7  288.0  250.3  228.2  210.5  
100590  Maize (excl. seed for sowing)  42.3 24.2 0.7 1.2 0.3 49.4 
100510  Maize seed for sowing  19.7 37.1 31.1 58.9 24.6 47.1 
2203 Beer made from malt.  8.0 6.7 8.8 19.0 29.3 35.6 
1704 Sugar confectionery, not 
containing cocoa.  18.0 20.0 28.7 25.1 35.4 32.1 
110710  Malt (excl. roasted)  43.6 31.9 37.0 28.0 25.2 29.9 
2207 Undenatured ethyl alcohol  34.8 36.3 21.6 22.7 21.6 24.4 
2106 Food preparations n.e.s.  17.3 15.1 12.0 16.7 19.7 22.1 
1901 Malt extract; food preparations 
of flour, groats, meal, starch or 
malt extract  7.5 11.5 9.9 11.0 10.8 19.2 
    Net weight ('000 tonne)  
151110  Crude palm oil  144.8  160.7  224.0  163.9  234.5  207.5  
1001 Wheat and meslin (excl. seed 
for sowing, and durum wheat)  1,115.9  793.2  901.2  846.2  816.0  618.4  
1701 Cane or beet sugar and 
chemically pure sucrose, in solid 
form 266.4  222.1  175.0  212.5  274.0  238.6  
151190  Palm oil and its fractions, 
whether or not refined  91.9 85.4 205.5  177.4  147.3  130.6  
100590  Maize (excl. seed for sowing)  61.9 48.9 3.0 9.0 1.8 93.8 
100510  Maize seed for sowing  12.6 27.1 12.0 13.3 7.6 22.4 
2203 Beer made from malt  4.9 3.8 6.3 11.4 16.4 19.7 
1704 Sugar confectionery, not 
containing cocoa  51.0 10.1 12.5 7.8 12.6 36.7 
110710  Malt (excl. roasted)  37.8 25.4 32.2 26.4 22.4 24.7 
2207 Undenatured ethyl alcohol  21.2 25.4 14.9 12.5 12.0 12.7 
2106 Food preparations n.e.s.  6.9 5.0 3.9 4.4 4.6 5.0 
1901 Malt extract; food preparations 
of flour, groats, meal, starch or 
malt extract  3.3 4.1 3.4 112.6  3.2 9.2 
a Major products  are identified by the size of imported values in 2017.  
Source:  WTO Secretariat's calculations, based on data provided by the Tanzania National Bureau of 
Statistics.  WT/TPR/S/384 • Tanzania  
 
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  4.1.1.3   Policy  
4.1.1.3.1   Overview  
4.7.  Mainland  Tanzania's policy on agriculture, the National Agriculture Policy , 2013, provides the 
overall  framework and objectives for steering agricultural policy towards its main objective of 
developing an efficient, competitive and profitable agricultural sector that contributes to the 
improvement of the livelihoods of Tanzanian s and the attainment of broad based economic growth 
and poverty alleviation.7 It further outlines challenges, opportunities, and ten specific objectives. 
Some of the challenges identified include low productivity, inadequate agricultural support 
services, poor infrastructure including reliance on rainwater, weak agro -industry value  chains, and 
low participation of the private sector. In order to address these and other weaknesses, some of 
the policy initiatives include: strengthening and transforming agricultural extension services, 
promoting p rivate sector partici pation in irrigati on development and agriculture mechanization, 
improving land law awareness and enforcement, encouraging agro -chemical and fertilizer 
manufacturing to improve cost -effective agricultural inputs, improving commodity standards to 
meet international norms, and  enhancing agricultural marketing efficiencies. Some sectors, e.g. 
coffee, have their own sectorial development policies as well. Zanzibar also has an Agricultural 
Sector Policy from 2002, which is currently under a review process,  and a Livestock Policy 
from 2011.8 
4.8.  In addition to the main policy, the Mainland has the Agricultural Sec tor Development 
Strategy (ASDS). Originally established in 2001, with its first phase operating during 2006 -16, the 
ASDS highlighted constraints in achieving agricultural growt h targets, and focused on an enabling 
environment for improving the sector.9 Since 2016, the ASDS has entered Phase II, with a new 
direction for the development of the sector; it integrates the Comprehensive Africa Agriculture 
Development Programme (CAADP)  objectives, and incorporates the principles in the Tanzania 
Agriculture and Food Security Investment Plan (TAFSIP).10 The overall goal is to "contribute to the 
national economic growth, reduced rural poverty and improved food security and nutrition in 
Tanzania". The main focus of ASDS II is to have an enabling policy and regulatory framework; 
increase production, productivity, and trade; stimulate an inclusive private sector; and strengthen 
institutional capacities and coordination.  
4.9.  Tanzania's legal framewo rk for agriculture has undergone some revisions during the review 
period (Table 4.5). There is no overriding act for agriculture, rather different acts depend on the 
subject (see acts for specific agricultural products, Table 4.5). The Land Act was amended  in 2017 
by the Written Laws (Miscellaneous Amendments) (No. 5) Bill, 2017 , to change how land can be 
mortgaged, in particular with regard to a mortgage being held by a local or foreign bank/financial 
institution; it protect s customary rights  and is now se en as one of the most important keys to 
ensuring security of tenure, particularly for the poor . It also assist s landowners in mortgaging land 
acquired under a Certificate of Customary Right of Occupancy (CCRO) . According to the Land Act, 
only Tanzanians ma y own land but foreigners may apply for derivative rights to use land for 
periods of time, generally between 33 and 99 years.  
                                                
7 Development Partners Group Tanzania online information.  Viewed at: 
http://ww w.tzdpg.or.tz/fileadmin/documents/dpg_internal/dpg_working_groups_clusters/cluster_1/agriculture
/2._Ag_policies_and_strategies/National_ag_policies/1._2013_NATIONAL_AGRICULTURAL_POLICY_ -
_FINALFebruari_2013.pdf .  
8 Zanzibar Ministry of Agriculture, Natural Resources, Livestock and Fisheries online information. Viewed 
at: http://www.kilimoznz.go.tz/policy/agriculture_policy.pdf ; and 
http://www.kilimoznz.go.tz/policy/livestock_policy.pdf .  
9 Development Partners Group Tanzania online information. Viewed at: 
http://www.tzdpg.or.tz/fileadmin/documents/dpg_internal/dpg_working_groups_clusters/cluster_1/agriculture
/2._Ag_policies_an d_strategies/National_Ag_strategies/1._ASDS___2001.pdf .  
10 Development Partners Group Tanzania online information. Viewed at: 
http://www.tzdpg.or.tz/fileadmin/documents/external/national_development_frameworks/ASDP2_Final_Docum
ent_20_May._2016__after_edit__1_.pdf .  WT/TPR/S/384 • Tanzania  
 
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  Table 4.5 Overview of main legal instruments, 2018  
Law Reference  
Mainland  
Land Act (Miscellaneous Amendments) (No. 5) Bill  2017 
National Irrigation Act  2013 
Coffee Industry Regulations  2013 
Cooperatives Societies Act  2013 
Plant Breeders' Rights Act  2012 
Fertilizer (Bulk Procurement) Regulations  G.N. 49 of 2017  
Cereals and Other  Produce Regulations  2011 
Cotton Regulations  2011 
Fertilizer Regulations  2011 
Sisal Industry Regulations  2011 
Crop Laws (Miscellaneous Amendments) Act  2009 
Cashew nut Industry Act  2009 
Cereals and Other Produce Act  2009 
Fertilizers Act  2009 
Seed Act Act No. (1) 18 of 2003  
Protection of New Plant Varieties (Plant Breeders Rights) Act  2002 
Animal Welfare Act  2008 
Warehouse Receipts Act  2005 
Food Security Act  1991 
Produce Export Act  2002 
Coffee Industry Act  2001 
Cotton Industry Act  2001 
Sugar Industry Act  2001 
Tobacco Industry Act  2001 
Tea Industry Regulations  1999 
Plant Protection Regulations  1999 
Cashew nut Industry Regulations  1998 
Plant Protection Act  1997 
Tea Act  1997 
Pyrethrum Act  1997 
Pyrethrum Regulations  1997 
Sisal Industry Act  1996 
Agriculture Inputs Trust Funds  1994 
Agricultural Development Funds Act  1984 
Tropical Pesticides Research Institute Act  1979 
Tropical Pesticides Research Institute Regulations  1979 
Rufiji Basin Development Authority  1975 
Zanzibar  
Food Security and Nutrition Act  Act No.  7 of 2011  
Plant Protection Division (PPD) Act  Act No. 7 of 1998  
Plant Breeders Rights (PBR) Act  Act No. 7 of 2012  
Animal Resources Management Act  Act No. 11 of 1999  
Zanzibar Agricultural Research Institute (ZARI)  Act Act No. 8 of 2012  
Source:  Revolutionary Government of Zanzibar, Ministry of Agriculture, Natural Resources, Livestock and 
Fisheries online information. Viewed at: http://www.kilimoznz.go.tz/act.php . Ministry of Agriculture 
online information. Viewed at: 
http://www.kilimo.go.tz/index.php/en/resources/category/regulations .  
4.1.1.3.2   Taxation  
4.10.   Tanzania has traditionally charged a  cess on agricultural produce on farm gate prices to 
buyers of agriculture commodities. This revenue can be significant to many local areas, and it is 
reported that, since 2003, it is the most important source of local revenue.11 Reforms at that time 
capped  the cess at 5% but local municipalities have varying rates. The industry sector had 
recognized this, and requested policy reform due to sometimes high and discriminatory cess rates 
and issues related to collection, e.g. lack of infrastructure which led to  low collection rates. Thus, 
in 2017, the Finance Act, 2017 amended the Local Government Finance Act to change the cess on 
agricultural products. As a result,  the cess on cash crops was reduced from 5% to 3%, and the 
                                                
11 The United Republic of Tanzania Prime Ministers' Office, Agricultural Produce Cess in Tanz ania: Policy 
Options for Fiscal Reforms , AgriKnowledge online information. Viewed at: 
https://agriknowledge.org/downloads/tq57nr00k .  WT/TPR/S/384 • Tanzania  
 
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  cess on food crops from 5% to 2%.12 More recently, the cess has been the second largest revenue 
source for local governments, with TZS 90.8 billion collected in FY 2015/16; this amounted to 
about 20% of total local government revenues.13 Tanzania also charges a milk cess on traded or 
processed mi lk and milk products of TZS 10 per litre or kilogram , or 1.5% , whichever is high er, of 
the ex-factory  and "ex-traded " price per litre or kilogram of the milk or designated milk  product.14 
The cess is remitted to the Dairy Board.  
4.11.   As part of a policy reform t o make certain agricultural subsectors more export competitive, 
the Government abolished a number of agricultural levies and taxes, in particular on cash crops 
such as coffee, tobacco, sugar, in 2017. The fees on export licences, processing licences, and 
other fees were impacted.15  
4.12.   The ad valorem  component of the EAC CET rates on imports of agricultural products ranges 
from zero to 100% (see main report). Tanzania does not have tariff quotas or use the special 
agricultural safeguard (SSG ). The highest tariff protection is on sugar and confectionary, dairy, 
and rice. However, there is currently a duty remission in place on sugar, so actual imports do not 
face the EAC CET tariff rates.  
4.13.   During the review period, the Ministry of Agriculture has periodically  restricted (through 
bans and taxation) trade of certain agricultural products, on food security grounds. These are 
generally seasonal restrictions that are put in place and removed during the year as food crops 
become scarce or abundant.  The Minister of Agriculture has the power to invoke this provision as 
needed (Sections 3.1.5 and 3.2.3).  
4.1.1.3.3   Support programmes and initiatives  
4.14.   The main support programmes for agriculture continue to be research and extension 
services, infrastructure developmen t, irrigation projects, and the Bulk Procurement System (BPS) 
(Table 4.6). Fertilizer is one of the most important inputs for increasing crop yield. Because  of this, 
for more than half a century, the Government has deployed a variety of approaches to overc oming 
the challenge of high prices that inhibit access to fertilizers by small scale farmers (SSF s). Some of 
the approaches were: input subsidies ( transport, direct price subsidies , etc.); input loans by crop 
buyers ( factories, millers, agribusinessmen , etc.); and input loans by banks through guarantees 
from crop buyers and/or cooperative unions. Tanzania introduced the fertilizer BPS following the  
Fertilizer (Bulk Procurement) R egulations, 2017. Through these Regulations, all importers submit 
their require ments to the regulator , the Tanzania Fertilizer Regulatory Authority  (TFRA) , whereby 
thereafter  a tender is announced and one pre -qualified successful bidder will import all the 
fertilizer on behalf of others using his own source of funds.  
4.15.   The Tanzania Agr icultural Development Bank (TADB) was established in 2012 and became 
operational in 2016 as a state -owned development financial  institution  to provide  short-, medium - 
and long -term credit facilities for the development of agriculture in Tanzania. It is exp ected to help  
transform agriculture from subsistence farming to a commercial  basis through financing  and 
related capacity -building initiatives. During 2016 -20, the TADB is focusing on 1 4 initial agriculture 
value chains within eight agricultural sub -catego ries as part of its  national priorities ; these include: 
cereals, industrial commodities, oilseeds, horticulture, livestock, poultry, fisheries, and forestry.16 
The TADB offers a variety of financial products, such as refinancing, trade finance, direct lendi ng, 
funds management, co -financing, infrastructure loans, agricultural equipment financing, and 
                                                
12 The Finance Act, 2017. TRA online information. Viewed at: 
https://www.tra.go.tz/Images/headers/THE -FINANCE -ACT-2017-CHAPA -Final.pdf .  
13 Tanzania National Bureau of Statistics online information. Tax Statistics Report, 2015/16, Tanzania 
Mainland . Viewed at: 
https://nbs.go.tz/nbs/takwimu/Tax/Tax_Statistics_Report%20_2015_16_Tanzania_Mainland.pdf . 
14 The Dairy Industry A ct 2004 Regulations. Tanzania Dairy Board online information. Viewed at: 
http://tdb.go.tz/uploads/documents/en/1460548388 -Regulations.doc . 
15 African Farming online information. Viewed at: https://www.africanfarming.com/tanzania -scraps -17-
coffee -levies -stimulate -production/ . Ministry of Agriculture online information. Viewed at: 
http://www.kilimo.go.tz/uploads/dasip/Hotuba_ya_Wizara_ya_Kilimo_Mifugo_na_Uvuvi_final_Mei_13.05.2017.
pdf.  
16 TADB online information. V iewed at: https://www.tadb.co.tz/products -services/ .  WT/TPR/S/384 • Tanzania  
 
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  guarantee and leveraging facilities. After three years of operation, the TADB has financed TZS 39.3 
billion, mainly in industrial commodities and grains.17  
4.16.   The Agricultural Inputs Trust (AGITF)  was established by the Agricultural Inputs Trust Act, 
1994 to import and distribute affordable agricultural inputs, such as tractors and similar 
equipment, in particular to smallholder farmers.18 The AGITF  is financed by government funds and 
it provides soft loans to farmers and similar beneficiaries for the acquisition of the goods. For FY 
2014/15, the AGITF provided loans for the purchase of 84 new tractors, farm inputs and other 
farm implements, to the t une of TZS 5.182 billion.19 
4.17.   The Warehouse Receipt System (WRS) was established in 2007 by the Warehouse Receipts 
Act, 2005 (WRS Act), with the main objective of formalizing existing marketing systems that 
aimed to minimize the various constraints on the pro duction and marketing of agricultural 
produce.20 Some of the issues or constraints facing agricultural marketing in Tanzania at the time 
were significant post -harvest losses, poor quality, large price fluctuations, lack of reliable market 
information, poor finance and polarized trade.21 The WRS operates by storing commodities in a 
licensed warehouse on behalf of the owner, who receives warehouse receipts certifying title of the 
deposited commodities.22 Furthermore, the WRS facilitates storage, future trading ( by auction) of 
the commodity, and access to credit by the farmer. The WRS Regulatory Board was created to 
have oversight of the process, including licensing and registering the different actors in the 
process, and collaborating with other national and inte rnational bodies.  
4.18.   The WRS Act was amended in 2015 to address weaknesses in the original Act, in particular 
to restrict the transfer of warehouse operating licences to other persons, and to increase the 
responsibilities of the WRS Regulatory Board.23 The WR S Regulations were also amended in 2016 
to incorporate provisions of the amendments to the Act.24  
4.19.   Other developments have been made to improve finance and insurance for farmers. The 
Private Agricultural Sector Support (PASS) Trust  was established in 2000 a s a non -profit 
organization to provide financial and business development services to the agricultural sector.25 It 
also focuses on 12 key sectors, and provides business development services, financial services, 
credit guarantees, portfolio guarantees, and traditional guarantees.  
4.20.   One of the other developments during the period was the promotion of PPPs in the 
agricultural sector. In 2010, the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) 
initiative  was launched to improve  agricultural productiv ity and food security, while at the same 
time providing for environmental sustainability through the commercialization of smallholder 
agriculture . Through strategic partnerships comprised of businesses, farmers, organizations, and 
the Government, SAGCOT wo rks to develop or improve value chains, to date, in the sectors of 
soya, rice, t ea, dairy, beef cattle, t omatoes , and potatoes .26 SAGCOT is supported by the 
Government and the World Bank, along with a number of international donors; and the SAGCOT 
Investmen t Project is funded through the World Bank's International Development Association.  
                                                
17 TADB online information. Viewed at: https://www.tadb.co.tz/tumeti miza-miaka -mitatu -ya-mafanikio/ .  
18 Ministry of Agriculture online information. Viewed at: 
http://www.kilimo.go.tz/index.php/en/stakeholders/view/ag ricultural -inputs -trust-fund-agitf.  
19 Ministry of Agriculture online information. Viewed at: 
http://www.kilimo.go.tz/index.php/resources/view/annual -report -for-financial -year-2014-15, and information 
provided by the authorities.  
20 Warehouse Receipts Regulatory Board online information. Viewed at: 
http://www.wrs.go.tz/downloads/resources/Warehouse%20Receipt%20Act%20No%2010 -2005.pdf .   
21 Warehouse Receipts Regulatory Board online information. Viewed at: https://www.wrs.go.tz .  
22 The commodities include: coffee, raw ca shew nuts, maize, paddy, sesame, sunflowers, pigeon peas 
and cotton.  
23 Law Reform Commission of Tanzania online information. Viewed at: 
http://www.lrct.go.tz/download/laws_ 2015/ActNo -3-2015-Book-1-10.pdf .  
24 Warehouse Receipts Regulatory Board online information. Viewed at: 
http://www.wrs.go.tz/downloads/resources/WRS%20Regulations%202016.pdf .  
25 PASS online information. Viewed at: http://www.pass.ac.tz/index.php/coverage .  
26 SAGCOT online information. Viewed at: http://sagcot.co.tz/index.php/who -we-are/.  WT/TPR/S/384 • Tanzania  
 
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  Table 4.6 Government support for agriculture, 2017 -18 
 (TZS billion)  
Programmes  2017/18  
Agricultural research development and extension services  377.5  
Agricultural infrastructure development  308.2  
Large -scale commercialized agriculture and industrial development support  98.9 
National food security and nutrition  81.0 
Development of market and micro -financial infrastructure s 49.4 
Livestock and fisheries development  46.8 
Agricultural inputs (e.g. fertilizer, improved seed, irrigation, tractors)  43.8 
Implementation of irrigation projects  38.8 
Total  1,044.0  
Source:  Ministry of Finance and Planning online information. Viewed at: 
http://www.mof.go.tz/mofdocs/budget/Citizens%20Budget/CITIZEN S%20BUDGET%202017_18%20
%20%20%20%20%20(Eng_Final).pdf .  
4.1.1.3.4   Marketing boards  
4.21.   Tanzania continues to maintain marketing boards for many of its main export crops. During 
the review period, the number of boards has remained the same; 12 boards cover various crops or 
livestock subsectors  (Table 4.7). According to a 2008 report by the Government, Tanzania has a 
long-standing history of government involvement in agricultural marketing boards in order to 
counteract constraints regarding access to local markets and depr essed global commodity prices.27 
The monopolies held by marketing boards in Tanzania in terms of marketing of food, traditional 
export crops, and non -traditional export crops were gradually liberalized in the 1980s -90s, and 
were replaced by cooperatives, th e WRS, and private traders, for most crops. However, the 
expected gains were not realized, as orderly marketing systems were not achieved, mainly for 
food and non -traditional crops. As such, there are still issues, constraints, and concerns with many 
of the agricultural marketing systems in Tanzania (Section 4.1.1.3).  
4.22.   Today, many of the marketing boards operate in the same way, although there are some 
differences. Nearly all have regulatory, quality control, and a promotional aspect for the sector 
that they  cover. The regulatory aspect is often wide, with the board controlling the production, 
selling, dealing, trading, and import/export of products through licences, permits, or registration. 
Some are directly involved in price setting, warehousing and storag e, while a few are directly 
involved in marketing. Concerns have been raised in some sectors, regarding the high costs, fees 
and bureaucracy under which the boards operate, thus rendering the crops less competitive on 
world markets.28 
4.23.   The Finance Act, 2018 made changes to the Cashewnut Industry Act, concerning the 
collection and deposit of the export levy (Section 3.2.2).29 Previously, according to the Act, 65% of 
the export levy revenues on raw cashew nuts were remitted to farmers, in order to develop their 
crops via the Cashewnut Board, and the remaining 35% was retained by the Government. After 
these most recent changes, 100% of the levy is deposited in the Government's Consolidated 
Fund.30  
4.24.   The Sugar Industry Act, 2001 was amended in 2017, and several impor tant changes were 
implemented regarding the sugar sector and the operation of the Sugar Board.31 The amendments 
created the new Section 11A that provides that the Sugar Board will determine the minimum and 
                                                
27 Development Partners Group Tanzania online information. Viewed at: 
http://www.tzdpg.or.tz/fileadmin/documents/dpg_internal/dpg_working_groups_clusters/cluster_1/agriculture
/2._Ag_policies_and_str ategies/National_ag_policies/5._National_agricultural -marketing -policy.pdf .  
28 Tanzanian Coffee Board online information. Viewed at: 
http://www.coffeeboard.or.tz/News_publi cations/startegy_english.pdf .  
29 The Finance Act, 2018. TRA online information. Viewed at: 
https://www.tra.go.tz/images/uploads/FINANCEACT2018.pdf .  
30 The Finance Act, 2018. TRA online  information. Viewed at: 
https://www.tra.go.tz/images/uploads/FINANCEACT2018.pdf . 
31 Law Reform Commission of Tanzania online information. Viewed at: 
http://www.lrct.go.tz/download/laws_2015/ACT -THE-WRITTEN -LAWS -MISCELLANEOUS -AMENDMENTS -ACT-
2017-final-Chapa..pdf . WT/TPR/S/384 • Tanzania  
 
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  maximum prices for sugar; Section 17A that requires  sugar manufacturers to submit development 
and expansion plans to the Board; and Section 34A that prohibits sugar blending.  
Table 4.7 Overview of agricultural marketing boards, 2018  
Board  Crop  Legal reference  Overview  
Cashewnut Board of 
Tanzania  Cashew nuts  Act No. 18 , 2009 To regulate the development of the 
cashew industry , including issuing 
licences  
Cereals and Other 
Produc e Board of 
Tanzania  Cereals  Cereals and Other 
Produce Act No.  19, 
2009 To provide for the promotion and 
development of cereals and other 
agricultural produce. Operation of 
flour and seed oil milling operations  
Tanzania Dairy Board 
(TDB)  Milk Dairy Industry Act , 
2004 To manage dairy imports and exports; 
to develop standards a nd inspection; 
oversee dairy cess; to regist er farmers  
Tanzania Meat Board  Meat Meat Industry Act , 
2006 To register livestock, meat processors, 
importers,  and exporters , and to 
monitor and perform regulatory 
functions for the sector  
Sugar Board of Tanzania 
(SBT)  Sugar  Sugar Industry Act 
No. 26 , 2001 To licences the  importation and 
exportation of sugar; all sugar farmers 
must be registered with the Board; to 
restrict the importation, breeding, 
multiplication of sugarcane cuttings; 
to set minimum and maximum prices  
Tanzania Coffee Board 
(TCB)  Coffee  Coffee Industry Act 
No. 23 , 2001 To promote and regulate the coffee 
sector, including registration of coffee 
producers, licensing for export, 
conduct coffee auctions, appoint ment 
of inspectors, etc.  
Tanza nia Cotton Board 
(TCB)  Cotton  Cotton Industry Act, 
2001 To promote the development of the 
cotton industry, to educate 
stakeholders, to make regulations, 
and to license buyers and exporters  
Tanzania Pyrethrum 
Board (TPB)  Pyrethrum  Pyrethrum Act, 1997  To promot e, develop and regulat e the 
pyrethrum industry , including making 
regulations and issuing export licen ces 
Tanzania Tobacco Board 
(TTB)  Tobacco  Tobacco Industry Act 
No. 24 , 2001 To provide registration or licen ces to 
tobacco growers, sellers, and 
processors. To grant licen ces for the 
exportation or importation of tobacco. 
To inspect tobacco premises. To 
oversee contract farming for tobacco 
production  
Tanzania Sisal Board 
(TSB)  Sisal Sisal Industry Act 
No. 2 , 1997 To develop and improve the sisal 
industry, issue export and import 
licences, regulate and control the 
quality, marketing and export of sisal, 
etc. 
Tea Board of Tanzania 
(TBT)  Tea Tea Act No.  3, 1997 To regulat e the tea industry , including 
the processing, exportation and 
storage of tea and tea by -products  
Zanzibar State Trading 
Cooperation (ZSTC)  Cloves and 
allied products  Act No. 11 , 2011 To determine quality, to set purchase 
price. Is the sole exporter of cloves 
and allied prod ucts. To provide 
seedlings to farmers  
Source:  Ministry of Agriculture online information. Viewed at: 
http://www.kilimo.go.tz/index.php/en/stakeholders/category/boards  and M inistry of Livestock and 
Fisheries online information. Viewed at: http://www.mifugouvuvi.go.tz/ .  
4.1.1.4   Major agricultural subsectors  
4.1.1.4.1   Cashew nuts  
4.25.   Tanzania is one of the world's top cashew nut producers, and the large st in East Africa. 
Cashew nuts became an even more important subsector to Tanzania during the review period. 
They have become the largest agricultural export crop, and contributed to about 13% of WT/TPR/S/384 • Tanzania  
 
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  Tanzania's total 2017 exports. Despite its generally increas ed growth and export earnings over the 
period, the subsector is reportedly the most regulated one; it still mainly exports unprocessed in -
shell cashew nuts. The subsector is still dominated by smallholder producers concentrated in the 
southern coastal regi ons of the country. Tanzania is known to produce high -quality cashews, as it 
has suitable climate and soil conditions for the crop.  
4.26.   The Cashewnut Industry Act, 2009 remains the main legislation governing the subsector.32 
It provides for the establishment of  the Cashewnut Board of Tanzania (CBT), the registration of 
growers and traders, the licensing of activities, marketing and inspection activities, and financial 
provisions. The CBT is established as the subsector's main regulator, and it carries out other 
functions in the interests of the cashewnut industry. The Act provides that all buyers, sellers, 
processors, exporters, importers, warehouse owners and operators be licensed. The Act was 
amended in 2018 to change the way the export levy is distributed (Sec tion 4.1.1.3.4).  
4.27.   The Government has been keen to promote more value added and increase manufacturing 
in Tanzania. As such, it charges an export duty on raw cashew exports to encourage domestic 
processing. The fee gradually increased during the period 2000 -10 but the outcome was rather the 
opposite, and processing in Tanzania decreased during the same period.33 There have been 
initiatives to promote FDI for establishing  cashew processing plants in recent years.34 However , 
cashew processing in Tanzania remains minimal , and exports continue to be mainly unprocessed 
cashews to other countries that process and re -export them to world markets.  
4.28.   Tanzania's cashew nut subsector has a number of  other challenges. There are concerns that 
the complex, rigid, and costly marketing process has hindered the subsector. The CBT is involved 
throughout the value chain, including in transport, distribution, price setting, and providing 
subsidized inputs.35 Furthermore, all farmers must sell their cashews through agricultural 
marketing cooperative societies and the WRS, through an auction system. This also includes all 
cashews for export. Sales through the cooperative/WRS system and the related logistical cost s and 
taxes reportedly result in the highest handling costs among cashew -producing countries, especially 
compared to West Africa where cashew sales operate on an open market.36 
4.29.   The subsector had generally increasing levels of production during the period, a nd the 
majority of production is exported (Table 4.8). The vast majority of exports, about 90%,  are in -
shell or unprocessed nuts. The volume of exports has increased gradually over the period but 
revenues generated from exports have more than tripled due to higher global prices, increased 
competitiveness, movements in the exchange rate, and bumper ha rvests. The major export 
markets for Tanzanian cashews are few and India dominates, although there was a significant and 
sustained increase in exports to Viet Nam over the period. Raw cashew exports are subject to a 
tax of 15% of f.o.b. value, or USD 160 p er metric to nne, whichever is higher  (Section 3.2.2).  
                                                
32 Cashewnut Industry Act, 2009. Law Reform Commi ssion of Tanzania online information. Viewed at: 
https://www.lrct.go.tz/download/laws_2009/18 -
2009%20The%20Cashewnut%20Industry%20Act,%202009.pdf .  
33 Development Partners Group Tanzania online information. Viewed at: 
http://www.tzdpg.or.tz/fileadmin/_migrated/content_uploads/Cashew_Value_Chain_Diagnostics.pdf .  
34 TanzaniaInvest online information. Viewed at: https://www.tanzaniainvest.com/agriculture/tanzania -
government -in-search -for-investors -to-establish -cashew -nut-processing -plants -locally .  
35 BEST-Dialogue online information. Viewed at: http://www.best -dialogue.org/wp -
content/uploads/ANSAF -PB-Cashew -2013-10.pdf?x82837 .  
36 BEST-Dialogue online information. Viewed at: http://www.best -dialogue.org/wp -
content/uploads/ANSAF -PB-Cashew -2013-10.pdf?x82837 . WT/TPR/S/384 • Tanzania  
 
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  Table 4.8 Overview of the cashew industry, 2012 -17  
 2012  2013  2014  2015  2016  2017  
Quantity (tonnes)  
Production  121.7  127.9  123.4  197.9  155.4  265.2  
Exports  130.9  147.3  172.2  171.7  169.2  329.5  
Value (TZS million)  
Productiona .. .. .. 239,000  .. 1,069,000  
Exports  221,971  301,212  647,936  497,299  756,941  .. 
.. Not available.  
a Estimated value sold during crop years 2014 -15 and 2016 -17 (figures are estimated as quantity sold  
multiplied by average price ). 
Source:  Tanzania National Bureau of Statistics online information. Viewed at: 
https://nbs.go.tz/nbs/takwimu/Abstr acts/Statistical_Abstract_2016.pdf .  
4.1.1.4.2   Livestock  
4.30.   As with many other subsectors, Tanzania possesses an abundance of natural resources to 
support a livestock subsector, whereby about two thirds of its land area is suitable for grazing.37 Of 
about 8.7  million farmers in Tanzania, 2.4% (213,600) were solely dedicated to livestock 
production, while 41.8% (3.7 million) were involved in mixed crop and livestock farming, in 
2016/17.38 As this indicates, most of the livestock subsector, like crop s, is smallholder production 
or, more particularly, pastoral farming, which is estimated to account for over 95% of livestock 
production.39 Livestock also has a dual function and is often used as collateral for populations with 
limited access to financial s ervices, and where women often do not have land rights.40 The 
livestock subsector is quite diverse, with production of meat, dairy, poultry, eggs, and downstream 
leather products (see Table 4.2). It is estimated that the livestock sector contributes to betw een 
7% and 10% of GDP.41 
4.31.   The livestock subsector is overseen by the Ministry of Livestock and Fisheries, which 
provides the overall policy direction. It is guided by the National Livestock Policy, 2006, that 
outlines the importance of having a commercially -driven livestock subsector; developing 
programmes to increase productivity, especially for pastoralists; and creating policies and 
institutions that will sustainably manage livestock resources.42 The main laws have not undergone 
any substantial revision dur ing the review period, and remain the Animal Welfare Act, 2008; the 
Animal Disease Act No. 17, 2003; the Grazing -Land and Animal Feed Resources Act, 2010; the 
Livestock Identification, Registration and Traceability Act , 2010; and the Veterinary Act, 2003.43 A 
number of regulations exist with respect to these Laws, including: veterinary standards to be met 
for meat inspectors, artificial inseminators, and laboratory technicians; licensing criteria for meat 
inspectors and artificial inseminator technicians; an d codes of conduct.44 
4.32.   While Tanzania has an abundance of cattle, reportedly the third -largest herd in Africa after 
Sudan and Ethiopia, it remains dependent on meat imports to meet domestic demand.45 It 
generally maintains traditional breeds and processes for  the subsector. Some of the main 
                                                
37 Livestock, Livelihoods, and Health online information. Viewed at: 
http://livestocklivelihoodsandhealth.org/wp -
content/uploads/2015/07/Tanzania_Livestock_Modernization_Initiative_July_2015.pdf . 
38 Tanzania National Bure au of Statistics online information. Viewed at: 
https://nbs.go.tz/nbs/takwimu/Agriculture/2016_17_AASS_%20report.pdf .  
39 Landlinks online information. Viewed at: https://land -links.org/country -
profile/tanzania/#1528466759272 -b7553177 -5a69.  
40 TDB online information. Viewed at: 
http://www.tdb.go.tz/uploads/files/TZ_LIVESTOCK_DEV_FINAL_COMMUNIQUE.pdf  
41 TDB online information. Viewed at: 
http://www.tdb.go.tz/uploads/files/TZ_LIVESTOCK_DEV_FINAL_COMMUNIQUE.pdf  
42 TDB online information. Viewed at: http://tdb.go.tz/uploads/documents/en/1460617246 -Livetock -
Policy.pdf .  
43 Ministry of Livestock and Fisheries online information. Viewed at: 
http://www.mifugouvuvi.go.tz/publications/30 .  
44 Minist ry of Livestock and Fisheries online information. Viewed at: 
http://www.mifugouvuvi.go.tz/publications/31 .  
45 TDB online information. Viewed at: 
http://www.tdb.go.tz/uploads/files/TZ_LIVESTOCK_DEV_FINAL_COMMUNIQUE.pdf .  WT/TPR/S/384 • Tanzania  
 
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  bottlenecks indicated are a lack of meat processing facilities and a lack of distribution to wider 
areas of the country. The subsector is also reportedly constrained by a lack of extension services, 
a lack of veterinary car e, limited access to more productive breeds, and challenges in meeting 
sanitary requirements.46 
4.33.   Regarding the dairy subsector , it is noted that the majority of  milk produced is consumed in 
the same household, with relatively little reaching commercial markets. During the review period, 
there has been increased output of milk (see Table 4.2) but it is not adequate to meet rising 
demand due to the increase in popu lation and the recommendation to consume more dairy 
products. Furthermore, the increased output has been attributed to increases in cattle numbers 
but not in productivity per cow.47 As such, Tanzania has been increasingly turning to imports to 
meet its dome stic demand for milk and milk products, in particular for value -added products.48 At 
present, approximately half of its milk consumption is being met by imports, which have increased 
by about 9% annually.49 At the same time, there are issues in the milk proc essing sector, and 
plants have been closing. Some of the concerns regarding the milk processing sector are that it 
produces a limited range of products50; has significant underutilized capacity, with only 24% used; 
and faces collection bottlenecks. As such,  the largest milk processor is now using 100% imported 
milk powder and reconstituting it into UHT and other milk products for the domestic market. 
Reported impediments to growth of the dairy sector include inadequate milk collection 
infrastructure, cumbers ome and overlapping licensing and inspection requirements, variable 
seasonal supply issues, and regulatory complexity and costs.51 
4.34.   In 2015, the Ministry of Livestock and Fisheries launched the Tanzania Livestock 
Modernisation Initiatives (TLMI) for the peri od 2015 -21, with the overall goal of improving food, 
nutrition security and food safety; creating employment opportunities; and contributing to the 
national economy, social stability and sustainable environment of Tanzania.52 The Government is 
focusing its efforts and priorities on 13 key strategic areas during the period, often to address 
shortfalls or longstanding issues in the subsector.53 Some of the many elements contained in the 
Initiative are: approving a Tanzania Animal Breeding Act for a breed improv ement program me; 
using certified livestock production systems in lieu of disease -free zones to promote beef export s; 
establishing a Tanzanian Livestock Development Investment Facility within the TIC; initiating a 
branding campaign for Tanzania Zebu Beef ; and improving the dairy value chain.54 
4.35.   Both main subsectors for livestock, i.e. meat and dairy, have their respective marketing 
boards, i.e. the TDB and the Tanzania Meat Board, both of which have certain regulatory, 
development, and promotional functions re lative to the sector (see Table 4.7). The Boards have a 
number of functions impacting trade, including the registration of producers, the issuance of 
licences for import and export, and publishing price lists.  
                                                
46 TDB online information. Viewed at: 
http://www.tdb.g o.tz/uploads/files/TZ_LIVESTOCK_DEV_FINAL_COMMUNIQUE.pdf . 
47 Agricultural Council of Tanzania online information. Viewed at: http://actanzania.or.tz/wp -
content/uploads/2018/06/Status -and-critical -susccess -fators -Tanznia -Dairy -2018-29.pptm .  
48 Milk powder, infant formula, UHT milk, butter, and cheese.  
49 Exports of milk are minimal and declining. TDB online information. Viewed at: 
http://tdb.go.tz/uploads/documents/en/1479717031 -TAMPA%20 -%20MILK%20STUDY%20REPORT%20 -
%20Final%20Revised%20Report.doc .  
50 90% is fresh or fermented milk.  
51 Agricultural Council of Tanzania online information. Viewed at:  http://actanzania.or.tz/wp -
content/uploads/2018/ 06/TDB -Conference -2018-ArushaPresentation.pptx .  
52 Livestock, Livelihoods, and Health online information. Viewed at: 
http://livestocklivelihoodsandhealth.org/wp -
content/uploads/2015/07/Tanzania_Livestock_Modernization_Initiative_July_2015.pdf .  
53 The 13 key strategic areas are: (i) Tanzania rangelands conservation and management; (ii) sustained 
genetic gains in Tanzan ian livestock breeds; (iii) improving Tanzanian beef cattle; (iv) improving the Tanzanian 
poultry industry; (v) improving the Tanzanian dairy industry; (vi) promoting Tanzanian livestock markets; (vii) 
responsive veterinary systems to improve animal health  and human welfare; (viii) livestock research and 
extension through modern information systems; (ix) resilient Tanzanian pastoral communities; (x) conflict to 
coexistence: livestock and conservation; (xi) investment drive for Tanzanian livestock sector dev elopment; 
(xii) mainstreaming livestock sector development in national agriculture and rural development initiatives; and 
(xiii) cross –cutting issues.  
54 Livestock, Livelihoods, and Health online information. Viewed at: 
http://livestocklivelihoodsandhealth.org/wp -
content/uploads/2015/07/Tanzania_Livestock_Modernization_Initiative_July_2015.pdf . WT/TPR/S/384 • Tanzania  
 
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  4.1.1.4.3   Cloves  
4.36.   Tanzania is the third -largest clove pro ducer in the world.55 Cloves dominate  merchandise 
exports by Zanzibar;  in 2017, they accounted for 84% of Zanzibar's total exports (TZS 121.8 
billion of TZS 145.8 billion). While cloves have been the mainstay of this island economy for over 
150 years, their  importance for exports has generally increased; in 2012, clove exports accounted 
for 64% of total merchandise exports. The export base has further concentrated during the review 
period and is currently even more reliant on cloves.56 Exports of cloves mirro r production levels 
and, as such, have fluctuated somewhat during the period 2012 -17; however, prices have 
remained steady, at  about TZS 14,000 per kg (Table  4.9). The two major export markets in recent 
years were Singapore, accounting for about 60% in 201 7, and India, at about 32%.57 
4.37.   Similar to other cash crops in Tanzania, the trade of cloves is governed by a marketing 
board, the Zanzibar State Trading Cooperation (ZSTC) (Section 4.1.1.3.4). The ZSTC is the sole 
exporter of cloves, and sets a fixed price f or purchases from farmers.58 There have been calls by 
the clove industry association, Zanzibar Clove Growers Organization (ZACPO), in recent years to 
liberalize the trading monopoly of ZSTC to allow open trade in cloves to spur further growth 
potential and increase investment while also reducing the temptation for illegal exports.59 In recent 
years, with the help of the ITC and WIPO, the ZSTC has developed a certification scheme and 
branding for organic clove production, with a view to expanding exports to se lected European 
markets at prices generally higher than non -organic cloves.60  
Table 4.9 Overview of the clove industry, 2012 -17 
 2012  2013  2014  2015  2016  2017  
Quantity (tonnes)  
Production  1,755  5,733  4,153  3,322  4,679  8,277  
Exports  4,468  3,866  2,777  3,263  3,721  7,077  
Value (TZS million)  
Production  24,699  78,782  58,174  46,542  65,575  115,530  
Exports  42,965  66,487  50,849  24,825  64,723  121,789  
Source:  Zanzibar Statistical Abstra ct, 2017 , Office of the Chief Government Statistician Zanzibar online 
information. Viewed at: 
http://www.ocgs.go.tz/php/ReportOCGS/Zanzibar%20Statistical%20Abstract%2 02017.pdf . 
4.1.2   Forestry  
4.38.   Tanzania has vast forest resources; they are a key part of the numerous ecosystems and an 
important natural resource contributing to the economy. In 2017, the forestry subsector 
contributed to about 4.3% of Tanzania's GDP. Covering abou t 48.1 million hectares (ha) of the 
Mainland, forests account for 55% of the total surface area.61 Of this, the majority is considered 
woodlands (93%) and the rest (7%) consists of mangroves, coastal forests, catchment forests, 
and government forest plantat ions (Table 4.10). The types of forest vary by location, but are 
mainly miombo woodland , acacia woodland, and mangrove or coastal forests. Most forests  remain 
                                                
55 Worldatlas online info rmation. Viewed at: https://www.worldatlas.com/articles/the -world -s-top-clove-
producing -countries.html .  
56 Zanzibar Statistical Abstract, 2017 , Office of the Chief Government Statistician Zanzibar online 
information. Viewed at: 
http://www.ocgs.go.tz/php/ReportOCGS/Zanzibar%20Statistical%20Abstract%2 02017.pdf .  
57 Zanzibar Statistical Abstract, 2017 , Office of the Chief Government Statistician Zanzibar online 
information. Viewed at: 
http://www.ocgs.go.tz/p hp/ReportOCGS/Zanzibar%20Statistical%20Abstract%202017.pdf . 
58 The fixed price for farmers is 80% of the market price. In addition, the ZSTC provides 1 million 
seedlings free of charge; provides soft loans to facilitate harvesting; provides clove -buying cen tres to facilitate 
transport; and provides weighing scales and other facilities in the clove service centres. ZSTC online 
information. Viewed at: http://www.zstcznz.org/in dex.php/2014 -12-12-14-07-23/zanzibar -cloves .  
59 ZACPO online information. Viewed at: 
http://www.tzdpg.or.tz/fileadmin/_migrated/content_uploads/ZACPO_Fa ct_Sheet_2013 -07.pdf . Citizen online 
information. Viewed at: 
http://www.tzdpg.or.tz/fileadmin/_migrated/content_uploads/ZACPO_Fact_Sheet_2013 -07.pdf .  
60 Development and Cooperation (D+C) online information. Viewed at: 
https://www.dandc.eu/en/article/zanzibar -promotes -locally -grown -organic -cloves -world-market .  
61 National Environment Statistical Report - Tanzania Mainland . National Bureau of Statistics online 
information. Viewed at: http://nbs.go.tz/nbs/takwimu/Environment/NESR_201 7.pdf.  WT/TPR/S/384 • Tanzania  
 
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  under government control , with 35% managed by the Mainland Government  and 49% under 
village or local government  management. Of the remainder, about 6% is general land and 7% is 
private sector forests. Zanzibar has about 86,182 ha of native forests, 16,488 ha of mangrove 
forests, and 3,788 ha of tree plantations .62 They are divided into the conservati on areas, forest 
plantations, rubber plantations, mangrove forests and community forest management area s. 
Conservation areas allow little or no forestry activities, as they are preserved ecosystems, but 
forest plantations and community forest management ar eas are managed by government or local 
authorities, mainly for the production of firewood and timber.  
4.39.   Tanzania's forestry subsector is estimated to have a total wood volume or growing stock of 
3.3 billion m3, of which 97% is from natural growth and only 3%  from planted trees. Most of the 
forest is production forest (32%), followed by wildlife reserves (23%), and protected forests 
(15%). It is estimated that Mainland Tanzania has a total commercial volume of 1 billion m3. The 
main products on the Mainland ar e firewood and production wood, and in Zanzibar they are 
firewood and withe.63 Due to the increasing demands for firewood, and its derivative charcoal that 
is used in nearly all households in Tanzania, there is increasing pressure on forest resources as the  
population grows. Thus, the subsector faces concerns of unsustainability and increasing 
deforestation.64 
4.40.   The policy and oversight of the forestry sector on the Mainland are under the Ministry of 
Natural Resources and Tourism; however, the main forestry ope rations are overseen by the 
Tanzania Forest Services Agency (TFS), which is tasked with achieving efficient and effective 
management of forest and bee resourc es. The Tanzania Forest Fund's main functions are 
conservation efforts and sustainable forest management .65 The Mainland has a forestry policy 
dating from 1998 , and Zanzibar has a separate forestry policy from 1995; both are still applicable.  
4.41.   The main forestry law in Tanzania Mainland is the Forest Act, 2002 and its related 
regulations; these provide th e overall framework for the sector, and aim to promote and enhance 
the contribution of the forest sector to the sustainable development of Tanzania.66 The Act sets out 
four main types of forests (national forest reserves, local authority forests, village fo rests, and 
private forests); provides for their management; provides licences and permits for forestry 
activities; establishes rules for trade in forest products; provides for conservation; oversees fire 
management; establishes a forest fund; and issues of fences and penalties. When enacted in 2002, 
the Act put an emphasis on local authorities having a greater role in the management of their 
forest resources. Nearly all forestry activities in forest reserves require a permit or licence, e.g. to 
cut and extra ct timber, to import or export, to gather and take forest produce, to operate sawmills 
or similar industrial processes, to plant trees, to camping, and to undertake tourist activities. The 
Act gives the Minister wide powers to prohibit or restrict the move ment of timber. also provides for 
sovereignty of biological resources; the biological resources, and their intangible products, 
including genetic resources, belong to the Government, and are to be conserved and utilized for 
the Tanzanian people.  
4.42.   The Forest  Ordinance of Tanzania, 1957 continues to provide for the creation of forest 
reserves and for the protection of forests and forest products within the reserves.67 The Forest 
Regulations, 2004 provide further clarifications on the use of forests for multiple  purposes, and 
licensing procedures, including many schedules setting out the associated fees and royalties.68 In 
2015, the Regulations were amended to change the fees for recreational activities in forests and 
fees for permits, licences or certificates for  felling trees, collecting forest produce and other 
                                                
62 Zanzibar Ministry of Agriculture, Natural Resources, Livestock and Fisheries, Department of Forestry 
and Non -Renewable Natural Resources online information. Viewed at: 
http://forestryznz.or.tz/index.php/component/content/category/2 -uncategorised .  
63 NAFORMA Report 2015. TFS online information. Viewed at: 
http://www.tfs.go.tz/uploads/NAFORMA_R EPORT.pdf .  
64 Africa Forest online information. Viewed at: http://www.africaforest.org/country -profiles/country -
profiles -tanzania.html .  
65 Tanzania Forest Fund online information. Viewed at: http://www.forestfund.go.tz/ .  
66 The Forest Act, 2002. The Forest Regulations, 2004. TFS online information. Viewed at: 
http://www.tfs.go.tz/uploads/Forest_Act_2002.pdf .  
67 TFS online information. Viewed at: http://www.tfs.go.tz/uploads/Forest_Ordinance_1957.pdf .  
68 Forest Regu lations, 2004.  WT/TPR/S/384 • Tanzania  
 
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  services.69 The first set of fees were generally higher for Tanzanian citizens and lower for expats 
and non -residents; and there were significant increases in most of the fees  the second set of fees. 
According to the authorities, these changes were implemented to protect and conserve the forest 
environment.  
4.43.   In Zanzibar, the main legislation is the Forest Resources Management and Conservation Act 
No. 10, 1996, the accompanying Forest Resources Management and Conservation Act Regulations, 
and the Forest Import and Export Regulations,  2014.70 The Act sets out the different forest 
management areas, licensing procedures, conservation and protection measures, and provisions 
on fires and offences, and establishes a forestry development fund; and the Regulations set out 
fees, compensation, and prices of forest products and activities.  
4.44.   In 2014, with the help of international donors, the Private Forestry Programme (PFP) was 
established in Tanzania's southe rn highlands, to promote commercial management of smallholder 
plantations and wood processing companies.71 The 16 -year programme also aims to promote 
market -based log pricing and further develop mature timber markets. As of August 2018, a 
number of phase 1 goals had been achieved, such as establishing long -term private forestry 
funding and an effective extension mechanism, as well as preparing a strategy.  
4.45.   In July 2016, the Prime Minister suspended harvesting and terminated permits on a number 
of state -owned  forestry plantations.72 The reasons for this move was to conserve forests, improve 
the environment, and help re -establish and rejuvenate forests . In a related development, the 
Government has worked over the review period to establish a national campaign on  re-forestation , 
in order to make forests more sustainable. As a result, trees cannot be felled unless they are 
replaced.73 
4.46.   The subsector faces certain taxes, fees, royalties, and inspections on production and trade. 
A forest cess of 5% of the harvest is pa id to local governments  on the Mainland, as well as various 
royalty or licence fees for forestry and related activities.74 For import and export, a licence is 
required. Based on the latest information available for 2014/15, annual revenues collected were 
TZS 587 million for import/export licenses , TZS 61 billion in forest royalties, TZS 870 million in the 
forest cess75, TZS 55 million in forest entrance fees, and TZS 1.9 billion in registration fees.76 
Wood products are graded (for timber) or certified (for ot her products) so that they meet certain 
standards before exportation. The authorities indicate that no international certification schemes 
are in operation.  Exportation of forestry products takes place only through designated ports.  
4.47.   Wood product imports f ace escalatory EAC CET rates (based on the level of processing). 
Unprocessed wood, or wood in the rough77, has a zero rate of duty; semi -processed sawn wood, 
10%; and processed wood, such as sheets and board, face the highest tariffs, at 25%. Tanzania's 
exports of forestry products have been variable during the review period but have generally 
increased in value and quantity. The main products exported are teak, other hard woods, wattle 
bark, bees wax, and sandal wood oil (Table  4.11). Pursuant to the EACCMA , the export of raw 
timber is prohibited. According to the authorities, there is relatively little importation of forestry 
products except for wood furniture.  
4.48.   One of the challenges facing the sector is the substantial amount of illegal or unreported 
trade in forestry products, particularly between neighbouring countries.78 To combat this, 
                                                
69 Nature Reserves online information. Viewed at: http://nature -
reserves.go.tz/attachments/FULL%20SIGNED%20GN.%20324%2014 -08-2015.pdf .  
70 Ministry of Agriculture, Natural Resources, Livestock and Fisheries online information. Viewed at: 
http://www.kilimoznz.go.tz/Regulation/Forest_regulation.pdf  and http://www.kilimoznz.go.tz/acts/forest.pdf .  
71 PFP online information. Viewed at: http://www.privateforestry.or.tz/en .  
72 TFS online information. Viewed at: http://www.tfs.go.tz/index.php/en/resources/view/waziri -mkuu -
asitisha -mgao -kwenye -mashamba -ya-miti-yanayomilikiwa -na-serikal .  
73 Information provided by the authorities.  
74 See Forestry Regulations 2004 and amendments.  
75 In 2012 -13. 
76 Brief Report on TFS 2011 -15. TFS online information. Viewed at: 
http://www.tfs.go.tz/uploads/BRIEF_REPORT_ON_TFS_2011_ -_2016.pdf .  
77 Including fuel wood and wood charcoal.  
78 Tanzania Natural Resource Forum online information. Viewed at: https://www.tnrf.org/files/TNRF -
EAWLS%20report%20FINAL.pdf .  WT/TPR/S/384 • Tanzania  
 
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  Tanzania, along with Kenya, Madagascar, Mozambique, and Uganda, signed the Zanzibar 
Declaration on Illegal Trade in Timber Products in September 2015.79 This Declaration set s up a 
unifying strategy to help Eastern and Southern African countries curb illegal trade in timber, by 
making a number of recommendations. Many of the recommendations encourage more 
cooperation between SADC and EAC countries on the matter, and the contin ued raising of the 
concern in other forums. One recommendation encourages States that have not yet done so to 
progressively implement the export ban on raw logs. At the international level,  Tanzania has 
participated in the UN's Reducing Emissions from Defo restation and Forest Degradation (REDD) 
and the Conservation of Forest Stocks, Sustainable Management of Forests and Enhancement of 
Forest Carbon Stocks (REDD+)  during the period 2009 -13, to help reduce greenhouse gases and 
reduce deforestation.80 Tanzania' s participation in REDD/REDD+ continues.  
Table 4.10 Forest area by category, use, and legal status, Mainland, 2013 -14 
('000 ha)  
Category  2013/14  
Type : 
Forests ( mountain, lowland and plantation)   3,206    
Mangrove forests  158  
Woodlands  44,736  
Total  48,100  
Use of forest land:   
Production forest area  29,004  
Protection forest area (mostly catchments areas)  19,096  
Total  48,100  
Legal status:   
Forest reserves  18,711  
Forest/woodlands in national parks, etc.  11,207  
Non-reserved forest land  18,182  
Total  48,100  
Source:  Ministry of Natural Resources and Tourism, Forestry and Beekeeping Department. Statistical 
Abstract 2016 . Tanzania National Bureau of Statistics online information. Viewed at: 
https://nbs.go.tz/nbs/takwimu/Abstracts/Statistical_Abstract_2016.pdf . 
Table 4.11 Exports of forest products, 2014 -17 
(USD ) 
 2014 -15a 2015 -16a 2016 -17a 
 Quantity  Value  Quantity  Value  Quantity  Value  
Hard woods (other) 
(m3) 8,995  3,275,245  280,789  16,459,941  9,452  2,999,333  
Teak (m3) 67,609  5,773,028  .. ..  717,340  8,236,140  
Mpingo clarinets (m3) 76  456,880  73,004  264,296  252  1,202,131  
Wattle bark (kg)  2,056,612  3,885,721  690,965  2,475,867  2,423,390  3,744,952  
Sandal wood oil (kg)  7,700  2,428,540  .. 2,416,206  75,750  1,456,934  
Sandal wood spent 
dust (kg)  158,124  86,950  18,745  ..  .. ..  
Handcraft (kg)  2,592  89,492  5,336  157,634  9,467.  105,801  
Veneer (m3) 1,586  41,780  .. .. 2,781  247,200  
Gum arabica (kg)  300,003  244,620  .. .. 202,000  181,430  
Poles (m3) 512  72,459  74  12,268  .. .. 
Wild fruits (kg)  51,300  ..  .. -  .. .. 
Carvings (kg)  16,537  81,489  5,004  47,395  9,486  28,345  
Furniture (kg)  489 17,151  525. 23,163  14,199  22,495  
Baobab (kg)  15,000  30,000  1,007  116,365  29,864  40,527  
Medicinal (kg)  .. .. .. .. 84,834  1,474  
Withies (m3) .. .. .. .. 100  278,700  
Cinchona (kg)  .. .. 19,720  27,411  2 15  
Cinnamon (kg)  .. .. .. .. 10 ..  
Wooden sample (m3) .. .. .. .. 0  405  
Softwood (m3) .. .. .. .. 149  33,253  
Raffia (kg)  .. .. 1,480  97,536  .. ..  
                                                
79 Trafficj online information. Viewed at: http://www.trafficj.org/publication/15_Zanzibar -
Declaration.pdf .  
80 UN-REDD online information. Viewed at: 
https://www.unredd.net/index.php?option=com_country &view=countries&id=24&Itemid=582 .  WT/TPR/S/384 • Tanzania  
 
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   2014 -15a 2015 -16a 2016 -17a 
 Quantity  Value  Quantity  Value  Quantity  Value  
Honey (kg)  152,600  574,966  259,860  617,992  240,780  580,682  
Bees wax (kg)  220,220  1,923,049  251,930  2,228,637  203,850  3,091,762  
Total  3,059,955  18,981,370  1,608,439  24,944,711  4,023,706  22,251,579  
a Fiscal year basis.  
.. Not available.  
Source:  TFS. Statistical Abstract 2016 . Tanzania National Bureau of Statistics online information. Viewed at: 
https://nbs.go.tz/nbs/takwimu/Abstracts/Statistical_Abstract_2016.pdf .  
4.1.3   Fisheries  
4.49.   Tanzania has a diverse variety of fish species. It possesses inland freshwater lakes, a 
territorial sea, and an Exclusive Economic Zone (EEZ), and ranks as one of the largest  fishing 
nations in Africa in terms of capture fishing. Approximately 6% of its land mass is covered by 
freshwater, most of which is in the three large lakes shared with neighbouring countries — Lake 
Victoria, Lake Tanganyika, and Lake Nyasa. Together with  its territorial sea of 64,000 km2 and its 
EEZ of 223,000 km2, Mainland Tanzania possesses over 346,337 km2 of fishing waters, with a 
resource base estimate of 2.7 million tonnes of fish.81 In addition, the islands of Zanzibar have an 
exclusive  fisheries  area in the territorial water , as well as  internal waters.   
4.50.   Fisheries is an important sector for Tanzania, contributing between 2% and 2.4% to GDP, 
and directly employing about 183,800 fishermen on the Mainland and 34,000 on Zanzibar.82 The 
sector can be divi ded into inland and marine capture fisheries, aquaculture, and fish processing. 
The operators range from small -scale subsistence fishermen to large industrial fish processors. 
Inland fisheries constitute the largest subsector, with 85% of output volume, fo llowed by marine, 
with 14%, and aquaculture, 1%.83 Zanzibar has an aquaculture sector for seaweed harvesting.  
4.1.3.1   Framework and fisheries management  
4.51.   The legal framework for fisheries has not undergone any significant changes since the last 
Review,  and is formed  by the Deep Sea Fishing Authority Act , 1998 which applies to both the 
Mainland and Zanzibar; the Deep Sea Fishing Authority Regulations, 2009 , which apply to the EEZ 
shared by the Mainland and Zanzibar; the Fisheries Act, 2003 and its 2009 Regulations84, which 
apply to the Mainland; and the Zanzibar Fisheries Act, 2010, which applies to Zanzibar.85 In 2016, 
the Government passed a new act for the Tanzania Fisheries Research Institute, giving it new 
powers and a renewed mandate.86 As of August 2018, the Minist ry of Livestock and Fisheries was 
reviewing the Fisheries Act , 2003 and its Regulations , with a view to amending or replacing 
them.87  
                                                
81 Ministry of Livestock and Fisheries.  
82 The Tanzanian Fisheries Sector, Challenges and Opportunities . Ministry of Agriculture, Livestock and 
Fisheries online information. Viewed at:  
http://tanzania.um.dk/~/media/Tanzania/Documents/Business%20Sector/The%20Tanzanian%20Fisheries%20
Sector%20 -%20Challenges%20an d%20opportunities.pdf?la=en .  
83 The Tanzanian Fisheries Sector, Challenges and Opportunities . Ministry of Agriculture, Livestock and 
Fisheries online information. Viewed at:  
http://tanzania.um.dk/~/media/Tanzania/Documents/Business%20Sector/The%20Tanzanian%20Fisheries%20
Sector%20 -%20Challenges%20and%20opportunities.pdf?la=en  
84 Informea  online information. Viewed at: 
https://www.informea.org/sites/default/files/legislation/tan171548.pdf .  
85 Zanzibar Ministry of Agriculture, Natural Resources, Livestock  and Fisheries online information. 
Viewed at: http://www.kilimoznz.go.tz/acts/Fisheries.pdf , 
http://www.kilimoznz.go.tz/ Regulation/DSFA_regulation.pdf , and 
http://www.kilimoznz.go.tz/acts/DeepSea.pdf . Ministry of Livestock and Fisheries online information. Viewed 
at: http://www.mifugouvuvi.go.tz/uploads/publications/en1516090248 -Fisheries -Act-No.-22-of-2003.pdf  and 
http://www.mifugouvuvi.go.tz/uploads/publications/en1516090441 -FISHERIES_REGULATIONS_2003.pdf .  
86 The Tanzania Fisheries Research Institute Act, 2016 . Law Reform Commission of Tanzania online 
information. Viewed at: http://www.lrct.go.tz/download/laws_2016/11 -TANZANIA -FISHERIES -RESEARCH -
INSTITUTE -ACT2-PRINTING -final.pdf .  
87 AllAfrica online information. Viewed at: https://allafrica.com/stories/201806270620.html .  WT/TPR/S/384 • Tanzania  
 
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  4.52.   The Mainland's Fisheries Policy 2015 provides the overall framework for inland fishing in 
Tanzania, including the development of the fishing industry, aquaculture development, fisheries 
management, fish quality management and standards, and enforcement and penalties.88 The Act 
prescribes that all persons involved in fishing, the processing or manufacturing of fish prod ucts, 
the selling or marketing of fish or fish products, and the import or export of fish or fish products is 
required to have a licence.89 Fishing vessels are required to be registered and licensed. The Act 
restricts foreign fishing vessels from using Tanz ania's territorial waters, although there is a limited 
exception for sport fishing and scientific research, which must be approved by the Minister. The 
Act and its Regulations distinguish licensing for citizens and non -citizens, both persons and 
companies.  In many cases, licensing for non -citizens is prohibited, but may be allowed in some 
areas where the individual or company has an approved shore -based fish processing 
establishment.90 When non -citizens are permitted to obtain licences, they are charged high er fees, 
often many times higher, than those for citizens.91 Licensing fees for Tanzanian citizens and firms 
also often differentiate between those with an approved shore -based fish processing establishment 
and those without, with higher fees being charged to the latter.  
4.53.   In Zanzibar, the Fisheries Act, 2010 requires that all foreigners92 obtain written permission 
from the Minister responsible for fisheries to carry out any fishing activities in Zanzibar. The Act 
also allows for the Minister to impose conditions on fishing; collecting, gathering or manufacturing 
of fish products; selling o f fish, or fish products; and importing or exporting fish or fish products.93 
Fishing in the EEZ is regulated by the Deep Sea Fishing Authority (DSFA)  pursuant to the 
provisions in the Deep Sea Fishing Authority Act  and its Regulations. The DSFA may issue l icences 
to foreign fishing vessels but the fees are much higher than for Tanzanian vessels.94  
4.54.   Fishing is regulated at different levels in Tanzania. A number of fishing methods, catch 
sizes, and fishing gear provisions are laid out in the respective Fisheri es Acts. The Act of the 
Mainland gives the Minister powers to impose seasonal restrictions and prohibit fishing in 
designated areas. Local community -based institutions are extensively used for fisheries 
management; these are beach management units in the i nland lakes of the Mainland, and fishing 
village communities on Zanzibar. They typically monitor or enforce environmental provisions and 
use of illegal gear or fishing practices.  
4.55.   The Marine Parks and Reserve Act, 1994 plays a role in conservation measures for fisheries 
within certain marine parks that have been created.95 For the Lake Victoria area, the EAC Lake 
Victoria Fisheries Management Plan III is applicable for the fishing and management of this 
resource (see main report). Tanzania, as part of the South West Indian Ocean  region participates 
in the World Bank's South West Indian Ocean Fisheries Project (SWIOF ish), to improve the 
governance of selected fisheries at the regional, national and community levels .96  
4.56.   The industry association, the Tanzania Indu strial Fishing a nd Processors Association 
(TIFPA), has established a self -regulatory mechanism in order to prevent the further decline of Nile 
perch. This mechanism requires a minimum size  of fish for processing by member companies , and 
there is a penalty system for violating  it. Following its success, it has been implemented at the 
regional level with the help of other industry associations in Kenya and Uganda, and the Lake 
Victoria Fisheries Organization.97 
                                                
88 Ministry of Livestock and Fisheries online information. Viewed at: 
http://www.mifugouvuvi.go.tz/uploads/publications/en1516090248 -Fisheries -Act-No.-22-of-2003.pdf .  
89 Fish products include aquatic flora.  
90 Licences for collecting and fishing fish are generally prohibited to foreigners; however, they are 
permitted if the person owns an onshore processing establishment for certain types of fish only: seaweed, 
prawns, Nile perch, fish skins, and certain other fish. 
91 Informea online information. Viewed at: 
https://www.informea.org/sites/default/files/legislation/tan171548.pdf . 
92 Persons who are not citizens of Tanzania and co mpanies not incorporated under the laws of Zanzibar.  
93 Including aquatic flora.  
94 Zanzibar Ministry of Agriculture, Natural Resources, Livestock and Fisheries online information. 
Viewed at: http://www.kilimoznz.go.tz/Regulation/DSFA_regulation.pdf . 
95 Marine Parks and Reserve Act, 1994. FAO online information. Viewed at: 
http://extwprlegs1.fao.org/docs/pdf/ta n8959.pdf .  
96 World Bank online information. Viewed at: http://projects.worldbank.org/P132123/south -west-indian -
ocean -fisheries -governa nce-shared -growth?lang=en .  
97 TIFPA online information. Viewed at: http://www.tifpa.org/sustainability.html .  WT/TPR/S/384 • Tanzania  
 
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  4.57.   The Mainland has a new National Fisheries Policy,  2015, which replaced the old policy from 
1997.98 In Zanzibar, the 2014 Zanzibar Fisheries Policy is the main policy instrument for the 
sector.99 As identified in both Policies, the sector still has a number of issues to address in order 
for the sector to co ntinue to grow and develop. The Policies establish specific policy objectives and 
ways of addressing them. Some of the challenges addressed by the Policies: effective 
management and sustainability of fisheries, combat of illegal fishing, enforcement measur es, 
infrastructure, large post -harvest losses, investment in deep sea fishing, aquaculture 
infrastructure, and strengthening regional and international cooperation.  
4.1.3.2   Production and trade  
4.58.   For Mainland Tanzania, the fisheries subsector has shown a slight incr ease in registered 
fishermen and vessels during the period, but declines in the fish catch in 2012 -17 (Table 4.12). 
This decline is attributed to the decline in Nile perch which, in turn, is at least partially due to the 
open access for the inland fisherie s; the granting of licences to new entrants and the ensuing 
pressures this created increased competition for limited resources. Mainland fishing takes place 
mainly in Lake Victoria and consists mainly of Nile perch, Nile tilapia, and freshwater sardine. Th e 
trends for Zanzibar were slightly more favourable during the period, with increasing fish catches 
during the period, including increases in the value of the catch; however, the Zanzibar fisheries 
subsector is about one tenth the size of the Mainland, and  supplies different types of fish species 
from the sea, in particular tuna, goat fish, sturgeon, and lobster.  
4.59.   Regarding trade, Tanzania has consistently exported about 40,000 tonnes per year during 
the review period, or about 10% of its production, althoug h exports declined to about 36,000 
tonnes in 2017 (Table 4.13). While the volume has remained steady, the export value more than 
doubled between 2012 and 2016, due to some increases in export volumes and to exportation of 
higher value species, such as live  products. Imports have been rising, and increased almost 
fourfold between 2012 and 2015, reaching 16,700 tonnes, before declining thereafter. Despite a 
large increase in imports, Tanzania remains a net exporter of fish and fish products.  
4.60.   The main exports are frozen filleted Nile perch and shellfish to the European Union, the 
Middle East, Japan, and the United States; higher quality fish is used and value is added in 
Tanzania, thus earning higher export revenues. Dried freshwater sardine is also exported in  
significant quantities but it is still mainly an artisanal production and destined to neighbouring 
countries, in particular the Democratic Republic of the Congo, as a food source or for use as 
animal feed.100 Certain provisions in the EACCMA pertain to trad e in fish products (Main R eport).101 
4.61.   The sector charges an import royalty and an export royalty on almost all traded fish and fish 
products. The import royalty is charged on all fish imports intended as food, at a rate of USD 0.25 
per kg, and the export roya lty ranges between USD 0.009 and USD 1.80 per kg for most types, 
although a 6% ad valorem  fee on f.o.b. is charged for aquarium fin fish and sea shells (Sections 
3.1.4 and 3.2.2).  
4.62.   During the review period, the Government put in place some restrictions on t he production 
or trade of fish. Since 2007, there has been a ban on prawn fishing in the sea, due to over -
exploitation, resulting in the establishment of a management plan.102 Restrictions are also in place 
on the export of Nile t ilapia  as a food security me asure, although privately -farmed tilapia may be 
exported. Local authorities charge a levy on fish products landed in their area of jurisdiction.  
                                                
98 Ministry of Livestock and Fisheries online information. Viewed at: 
http://www.mifugouvuvi.go.tz/uploads/publications/en1517554984 -National -Fisheries -Policy -of-2015-Final-
version -1-1.pdf.  
99 Zanzibar Ministry of Agriculture, Natural Resources, Livestock and Fisheries, online information. 
Viewed at: http://www.kilimoznz.go.tz/policy/fisheries_Policy_.pdf .  
100 Country Review/Smartfish  Programme/Tanzania . FAO online information. Viewed at: 
http://www.fao.org/3/a -br800e.pdf .  
101 The fifth schedule facilitates trade in fish between partner States. The third schedule restricts exports 
of fre sh unprocessed Nile perch and tilapia.  
102 "The Tanzanian Fisheries Sector, Challenges and Opportunities". Ministry of Agriculture, Livestock 
and Fisheries online information. Viewed at:  
http://tanzania.um.dk/~/media/Tanzania/Documents/Business%20Sector/The%20Tanzanian%20Fisheries%20
Sector%20 -%20Challenges%20and%20opportunities.pdf?la=en . AllAfrica online information. Viewed at: 
https://allafrica.com/stories/201507100400.html . , WT/TPR/S/384 • Tanzania  
 
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  Table 4.12 Number of registered fishermen, vessels and catches in marine and fresh 
waters, Mainland, 2012 -17 
 2012  2013  2014  2015  2016  2017  
No. of registered fishermen  182,741  183,431  183,800  183,800  200,579  203,529  
No. of vessels  56,985  57,385  57,291  57,291  59,338  59,338  
Fish catchesa  
Weight (tonnes)  365,023  375,160  365,974  362,645  362,595  387,543  
Value (TZS million)  1,307,132  1,473,306  1,494,898  1,481,750  1,486,377  1,743,942  
a The major types of fish are Nile perch, Nile tilapia, and freshwater sardine s for inland catches, and 
octopus, lobster, and crab for marine fishing.  
Source:  Ministry of Livestock and Fisheries Department, Fisheries Development Division. Statistical Abstract 
2016. Tanzania National Bureau of Statistics online information. Viewed at:  
https://nbs.go.tz/nbs/takwimu/Abstracts/Statistical_Abstract_2016.pdf . 
Table 4.13 Fisheries trade, 2012 -17  
 2012  2013  2014 2015  2016  2017  
Imports   
Weight 
(tonne s) 4,886  6,642  6,792  16,744  13,918  .. 
Value  
(TZS 
million)  5,507  9,027  9,890  32,211  26,774  .. 
Exportsa  
Weight 
(tonne s) 41,394  38,574  43,354  41,059  39,691  36,063  
Value  
(TZS 
million)  254,901  234,885  314,490  547,228  526,228  407,205  
a Mainly comprise Nile perch, freshwater sardines, crabs, prawns, fish maws, octopus, seashells, live 
lobsters, squid, seaweed and ornamental fish.  
.. Not available.  
Source:  Ministry of Livestock and Fisheries. Statistical Abstract  2016. Tanzania National Bureau of Statistics 
online information. Viewed at: 
https://nbs.go.tz/nbs/takwimu/Abstracts/Statistical_Abstract_2016.pdf . 
4.2  Mining  and Energy  
4.2.1   Mining  
4.63.   There have been many developments in recent years in Tanzania's mining sector, as several 
new Acts and regulations were put in place, that were aimed at addressing a number of issues of 
concern to the Government. New local content and technology tra nsfer provisions have been 
introduced, as well as restrictions on exports and mandatory equity listings on the Dar es Salaam 
Stock Exchange (DSE) for certain foreign mining companies. The regulatory environment for 
mining has also undergone change, as new regulators and new enforcement provisions have also 
been put in place.  
4.64.   Mining has traditionally been one of the most important export sectors for Tanzania in terms 
of export revenue; in 2012, it accounted for about 50% of total merchandise exports but has 
declined somewhat throughout the period, in part due to export restrictions put in place. The 
mineral wealth of the country is vast, and a multitude of precious stones and minerals are being 
mined; these include gold, diamonds, nickel, copper, uranium, tan zanite, gypsum, titanium, 
cobalt, salt, pozzolana, and kaolin. Mining activities are not concentrated in one area but are 
spread throughout the country .  
4.65.   The sector is under the Ministry of Minerals, which determines policies and related matters. 
Recent le gislative changes have established the Mining Commission as the main regulatory body 
for the mining sector; it carries out most functions prescribed in the Mining Act, such as issuing 
licences and monitoring the sector on behalf of the Ministry.103 The Gover nment also participates 
                                                
103 Pursuant to Section 22 of the Written Laws (Miscellaneous Amendments) Act, 2017.  WT/TPR/S/384 • Tanzania  
 
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  directly in the mining sector through two state -owned enterprises. The State Mining Corporation 
(STAMICO) is involved in gold and tin mining, and also holds a number of prospecting licences for 
projects that may be developed in the future. The National Development Corporation (NDC) is also 
100% owned by the State and is involved mainly in iron ore and coal mining.  
4.2.1.1   Developments  
4.66.   The Mining Act, 2010 remains the main law for the mining sector; it was amended several 
times during the re view period. It still provides the overall framework, including different types of 
licences and their requirements, royalties and fees, restrictions, and dispute settlement.104 In 
2015, it was revised to increase the capital investment for a primary mining l icence, to subject 
decisions of the Ministry to judicial review, to establish the Tanzania Minerals Audit Agency, to 
increase penalties for unauthorized prospecting, and to establish provisions for the conversion of 
licenses.105 
4.67.   In recent years, the Governme nt has focused on fair tax revenue collection and an increase 
in regulation. Changes introduced in the  Finance Act , 2017 amended the Mining Act, restricting 
exportation or domestic use of minerals and requiring exporters  to pay a 1% clearing fee of the 
gross value of the minerals before expor tation.106 
4.68.   Significant changes in policy towards the mining sector, particularly regarding foreign firms, 
have also occurred. In 2017, three laws, the Natural Wealth and Resources (Permanent 
Sovereignty) Act, the Natural Wealth and Resources Contracts (Review and Re -Negotiation of 
Unconscionable Terms) Act, and the Written Laws (Miscellaneous Amendments) Act were put in 
place to increase Tanzania's sovereignty over its natural resources (Box 4.1).107 The three Laws 
are wide in scope, but some of the key elements introduced are:  
• The Government may render existing mining contracts null and void;  
• Royalty tax rates were increased;  
• The country's natural resources are to be held in trust by the President on behalf of the 
citizens;  
• It provides for the establishment of the Mining Commission and for the review of existing 
natural resource contracts;  
• It gives the Government a non -dilutable interest of at least 16% in mining projects, the 
possibility of acquiring up to 50% of the shares ;  
• The adjudication of investment disputes in domestic courts; and  
• The advancement of local beneficiation and procurement.  
4.69.   The Local Content Regulations, 2018 further expand upon the local content provisions 
contained in the Mining Act, through the amendm ents introduced by the Written Laws 
(Miscellaneous Amendments) Act, 2017. The local content provisions provide that mining 
companies must ensure that preference is given to Tanzanian citizens and firms. A Local Content 
Committee was established for the mon itoring and oversight of the local content requirements. 
Mining companies must submit a local content plan to the Mining Commission, which, inter alia , 
must specify the role of Tanzanians, their equity participation, and the strategy to transfer 
technology  or know -how to Tanzanian citizens. For the purchase of goods and services, the firm is 
required to give preference to Tanzanians. Where a Tanzanian firm cannot provide the goods or 
services, the Regulations provide that a joint venture company be establis hed with the foreign 
provider, whereby Tanzanians own at least 25% of the equity. For insurance, legal, and financial 
                                                
104 Ministry of Mineral s online information. Viewed at: https://www.madini.go.tz/wp -
content/uploads/2017/12/The -Mining -Act-2010.pdf .  
105 Tanzania Extractive Industries (Transparency and Ac countability) Act, 2015. Tanzania Parliament 
online information. Viewed at: http://parliament.go.tz/polis/uploads/bills/acts/1452053429 -ActNo -23-2015-
Book-21-25.pdf .  
106 TRA online information. Viewed at: http://www.tra.go.tz/Images/headers/THE -FINANCE -ACT-2017-
CHAPA -Final.pdf .  
107 Ministry of Minerals online information. Viewed at: https://www.madini.go.tz/wp -
content/uploads/2017/12/Miscellaneo us-amendment -no.-7-of-2017-clean-copy-final-Hansard -CHAPA.pdf , 
https://www.madini.go.tz/wp -content/uploads/2017/12/Review -and-Re-Negotiation -of-Unconscionable -Terms -
Act-2017.pdf , and https://www.madini.go.tz/wp -content/uploads/2017/12/Natural -Wealth -and-Resources -
Permanent -Sovereignty -Act-2017.pdf .  WT/TPR/S/384 • Tanzania  
 
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  services, and bank accounts used by mining companies, the requirements are more stringent and 
the company generally needs to use the servi ces of a Tanzanian firm.  
4.70.   Furthermore, the Mining (Minimum Shareholding and Public Offering) Regulations, 2016 
were established to require Special Mining Licence holders to issue a minimum of 30% of their 
shares to the public on the DSE within one year of r eceiving a new licence or within two years for 
existing licence holders. As of October 2018 , this was a work -in-progress , with some starting to list 
and others not yet at that stage.  A number of other important acts and regulations were also put 
in place  for the sector  during the period . 
4.71.   The Mining Act, 2010 and its Regulations set out eight different types of licences for mining 
activities. A licence is required for prospecting, mining, or trading or dealing in minerals. The 
export of minerals is restric ted to Tanzanian nationals, or joint ventures with a minimum of 25% of 
the shares held by Tanzanians due to the requirement to obtain a dealer or broker licence. Certain 
types of mining licences are reserved for Tanzanian citizens, and mining large mines t ypically 
requires a large initial investment, thus Tanzanian nationals tend to be involved in small mining 
operations and operate through a primary mining licence. The vast majority of active licences in 
place and issued each year are Primary Mining Licenc es, and the next largest type are Prospecting 
Licences (Table 4.14). In July 2017, the Government suspended the issuance of new Special 
Mining Licenses and the renewal thereof.  
4.72.   The sector faces a number of royalties, taxes, and fees. In addition to the fe es for a licence 
for import or export ( Section 4.2. 1.2) and the new clearing fee (S ection s 3.2.3 and 4.2.1.1), 
royalties are charged on the gross value of production,108 there are licensing fees for operations, 
and VAT must be paid (except for prospecting). However, imports of mining equipment by mining 
companies are generally exempt from customs duties. Pursuant to memoranda of understanding 
(MOUs) that are still in place with a number of large mining exploration companies, there are  
general exemptions on ca pital goods, exemptions from VAT, deferments, etc.  In 2016, about TZS 
158 billion was collected in mineral royalties.109 
Box 4.1 New mining acts or regulations, 2012 -18 
The Mining Act Amendments , 2017 The Executive Agency (Tanzania Mineral Audit Agency), 
(Disestablishment): Order, 2018  
The Natural Wealth and Resources Act , 2017 The Executive Agency (Geological Survey Agency) 
(Disestablishment): Order, 2018  
The Mining (Mineral Beneficiation) Regulations , 
2018 The Mining (Minerals and Mineral Concentrates Trading) 
(Revocation of the First Schedule) Regulations , 2018  
The Mining (Audit and Inspection Records) 
Regulations , 2018  The Written Laws (Miscellaneous Amendments) Act, 
2017 
The Mining (Geological Surve y) Regulations , 2018  The Tanzania Extractive Industries (Transparency and 
Accountability) Act, 2015  
The Mining Act (Mineral Rights) Regulations , 2018  The Mining (Minimum Shareholding and Public Offering) 
Regulations, 2016  
The Mining (Radioactive Minerals) Regulations , 
2018 The Mining (Local Content) Regulations , 2018  
The Mining (Minerals and Mineral Concentrates 
Trading) Regulations , 2018  The Mining (Integrity Pledge) Regulations  
The Tanzania Extractive Industries (Transparency 
and Accountability) Act, 2015 (TEIA)  Mining (Minimum Shareholding  and Public O ffering) 
Regulations , 2016 
Source:  Tanzania Chamber of Mines online information. Viewed at: 
http://www. tcme.or.tz/resources/category/acts -and-regulations .  
                                                
108 The increased royalty fees are  now 6% for all minerals, i.e. gemstones, diamonds, gold and other 
metals.  
109 Ministry of Minerals online information. Viewed at: https://www.madini.go.tz/wp -
content/uploads/2018/04/TANZANIA -EITI-2015-2016-FINAL -REPORT.pdf . WT/TPR/S/384 • Tanzania  
 
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  Table 4.14 Mining licences and requirements, 2018  
Type of licen ce Description  Active licen ces 
2014  Licen ces issued 
2016  
Prospecting 
Licence A Prospecting Licence (PL) is issued for an initial period 
of 4 years , for a maximum area of 300 km2. It may be 
renewed for a 3 -year period , followed by a final 2 -year 
period. Following each renewal period, 50% of the 
licence area must be relinquished. A PL for gemstones 
cannot exceed two years , and is not subject to renewal. 
A maximum area of 10 km2 is allowed for a PL for 
gemstones and building materials.  2,973  144 
Retention 
Licence A Retention Licen ce (RL) is issued to a holder of a PL, 
other than a PL for building materials or gemstones. It is 
issued when a significant ore body has been identified 
through a feasibility study and cannot be developed due 
to difficult market conditions. The RL is granted for a 
period not exceeding 5 years , and may be rene wed for 
an additional single period of 5 years.  .. 0 
Special Mining 
Licence A Special Mining License (SML) is issued only to large 
mining operations with over USD 100 million 
investments , for the purpose of producing minerals. The 
licence allows the extra ction of minerals in an area of a 
minimum size of 35 km2 other than superficial , and 70 
km2 superficial. It is granted for a period covering the 
life of the mine or a period not  exceeding 25 years. The 
SML can only be renewed for a period not exceeding 25 
years.  .. 1 
Mining Licence Covering an investment of between USD 100,000 and 
USD 100 million , a Mining Licen ce (ML) is granted for a 
period not exceeding 10 years , and may be renewed for 
the same duration. The Mining Act requires that the size 
of each mine shall be 10 km2 for all minerals except 
gemstones and building materials. The ML allocates a 
maximum area of 1  km2 for building materials.  263 17 
Primary Mining 
Licence A Primary Mining License (PML) is only granted to 
Tanzanian nationals. It is granted for a period of 
5 years , and may be renewed for the same amount of 
time. The Mining Act allows the conversion of a PML or 
several PMLs into a n ML. PML holders are allowed to 
undertake mining activities in an area a the maximum of 
10 ha, for all min erals excluding gemstones , or 5 ha for 
building materials.  28,502  5,849  
Broker Licence A Broker Licen ce (BL) is only issued to Tanzanian 
nationals , and allows them to buy minerals and sell to 
dealers within the country.  .. 0 
Dealer Licence  A Dealer Licence (DL) allows the buying of minerals 
within the country and their export. It may be granted 
to Tanzanians , or joint ventures where the local 
shareholding constitutes not less than 25% of the 
company.  .. 0 
Smelting  Licence  A Smelting Licen ce (SL) is issued to companies or 
individuals interested in establishing metal smelting 
facilities. In the same vein, the Act also allows the 
issuing of a Refining Licen ce to process minerals.  .. 0 
.. Information not available.  
Source:  Ministry of Minerals online information. Viewed at: https://www.madini.go.tz/wp -
content/uploads/2018/04/TANZANIA -EITI-2015-2016-FINAL -REPORT.pdf  and Extractive Industries 
Transparency Initiative (EITI) online information. Viewed at: 
https://eiti.org/sites/default/files/documents/2014 -2015_tanzania_eiti_r eport.pdf .  
4.2.1.2   Production and trade  
4.73.   There has been a general increase in mining during the period, as many types of minerals 
have seen an increase in production levels, with the exception of phosphate and bauxite 
(Table  4.15). Significant increases in product ion took place for coal for diamonds  during the 
period.  Most of Tanzania's production of minerals is exported.  
4.74.   The export of minerals remained relatively strong during the review period and has mirrored 
production trends (Table 4.16). The export value has fluctuated with respect to world prices f or WT/TPR/S/384 • Tanzania  
 
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  some minerals, in particular gold which had increasing production and export quantity but lower 
value s of exports during the period. Gold is by far Tanzania' s most important mineral export, often 
accounting for a bout 90% of the annual export value of all minerals during the period (Table 
4.16).  Other important mineral exports include diamonds, gemstones, and industrial minerals.  
4.75.   The import and export of all minerals require a permit from the Ministry of Minerals.  An 
import permit costs TZS 100,000 and an export permit costs TZS 50,000. For non -residents, the 
exporter fee is USD 1,000.110 Additional requirements for exportation are a certificate of origin for 
tanzanite minerals and a Kimberley Process Certificate for diamonds.  
4.76.   In March 2017, the Government put in place  an export ban on gold and copper mineral 
concentrates, after an examination found mineral concentrates were undervalued for export.111 
The policy was put in place, as the Government wanted to encourage va lue-added processing in 
Tanzania, and discourage the export of raw minerals. As at October 2018, the ban remained in 
place, and has had an impact on Tanzania's mineral ore exports, which have declined from 16% to 
2% of total exports during the period (Tabl e A1.2 and Chart 1.2) . However, exports of gemstones 
and other finished minerals remain largely unaffected (Table 4.16).  
Table 4.15 Production of selected minerals, Mainland, 2012 -17 
Mineral (unit)  2012  2013  2014  2015  2016  2017  
Diamond (carat) 127,174  179,633  252,875  216,491  237,685  304,456  
Gold (kg) 39,012  42,534  40,481  43,293  45,155  43,490  
Gemstone (kg) 1,237,625  1,692,436  3,083,765  1,872,915  2,554,932  1,186,237  
Salt (tonne ) 34,016  36,032  54,757  92,158  145,718  100,017  
Phosphate (tonne ) 570,626  39,702  738,000  222,800  23,658  1,351 
Gypsum (tonne ) 91,610  171,567  200,179  239,302  213,744  123,645  
Coal (tonne ) 78,672  84,772  246,128  257,321  276,030  563,053  
Pozzolana (tonne ) 75,193  79,452  68,925  342,628  230,045  79,085  
Kaolin (tonne ) 1,422  907 3,809  1,953  605 13,816  
Silver ore (kg) 11,227  12,159  14,493  15,569  17,984  10,911  
Copper (lb) 12,426,025  12,749,548  14,027,008  14,252,341  15,762,430  2,933,941  
Bauxite (tonne ) 28,433,930  39,977,300  25,641,201  204,956  72,779  12,090  
Note:  Carat=0.205 g. 
Source:  Ministry of Energy and Minerals. Statistical Abstract 2016 . Tanzania National Bureau of Statistics 
online information. Viewed at: 
https://nbs.go.tz/nbs/takwimu/Abstracts/Statistical_Abstract_2016.pdf , and information provided by 
the authorities.  
Table 4.16 Quantity and value of selected minerals exported, 2012 -17  
  2012  2013  2014  2015  2016  2017  
Mineral  Unit Quantity  
Diamonds (rough)  '000 
carats  127,000,  180,000  252,875  216,491  239,305  304,456  
Gold '000 g  39,012  42,534  40,481  43,358  45,155  43,490  
Gemstones  '000 g  - 1,086,532  3,083,765  1,872,915  2,944,107  1,185,697  
Salt Tonnes  32,004  33,210  54,757  92,158  145,718  100,017  
Phosphate  Tonnes  570,626  397,020  738,000  222,800  23,658  1,351  
Tin Tonnes  48 - 79 179 138 91 
Gypsum  Tonnes  71,610  - 200,179  235,920  213,744  123,645  
Graphite  Tonnes  - - 25 30 1,180  128 
Silver  '000 g  11,227  11,013  14,493  15,569  17,984  10,911  
Copper  '000 lbs  12,426  112,654  14,027  14,252  16,247  2,934  
Industrial minerals  Tonnes  - - 98 151,297  4,769,577  708,047  
Bauxite  Tonnes  28,433,930  39,977,300  25,647,201  204,956  74,660  12,090  
Mineral  Unit Value (USD '000)  
Diamonds (rough)  '000 
USD  33,827  46,013  82,053  56,003  85,090  67,510  
Gold '000 
USD  2,161,520  1,735,708  1,640,072  1,609,392  1,824,815  1,636,575  
                                                
110 The Mining (Minerals and Mineral Concentrates Trading) Regulations, 2018 . Tanzania Chamber of  
Mines online information. Viewed at: http://www.tcme.or.tz/resources/view/the -mining -minerals -and-mineral -
concentrates -trading -regulations -2018.  
111 Ministry of Minerals online information. Viewed at: https://www.madini.go.tz/wp -
content/uploads/2018/04/TANZANIA -EITI-2015-2016-FINAL-REPORT.pdf .  WT/TPR/S/384 • Tanzania  
 
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    2012  2013  2014  2015  2016  2017  
Gemstones  '000 
USD  32,570  62,453  49,146  46,067  60,483  53,596  
Salt '000 
USD  3,408  3,785  5,275  5,071  4,806  3,803  
Phosphate  '000 
USD  277 225 140 126 721 585 
Tin '000 
USD  732 .. 907 959 1,499  1,037  
Gypsum  '000 
USD  215 231 2,518  4,445  23,792  3,187  
Graphite  '000 
USD  .. .. 3 5 2,132  18 
Silver  '000 
USD  12,682  17,214  10,283  7,626  9,901  5,850  
Copper  '000 
USD  44,816  42,134  43,675  35,658  35,421  7,741  
Industrial minerals  '000 
USD  .. .. 9 3,254  78,473  29,896  
Bauxite  '000 
USD  12,479  35,827  20,014  325 1,242  898 
Total  '000 
USD  2,302,526  1,943,590  1,854,095  1,768,930  2,128,372  1,802,955  
.. Not available.  
Source:  Ministry of Energy and Minerals. Statistical Abstract 2016 . Tanzania National Bureau of Statistics 
online information. Viewed at: 
https://nbs.go.tz/nbs/takwimu/Abstracts/Statistical_Abstract_2016.pdf , and information provided by 
the authorities.  
4.2.2   Energy  
4.77.   Tanzania has a variety of potential energy source s, including petroleum, natural gas, coal, 
uranium, hydro, biomass, solar, wind, geothermal, tidal and waves. However, its energy usage at 
present is highly concentrated, and comes mainly from biomass112 (85%), followed by petroleum 
(9%), electricity (4.5%) and renewable energy sources (1.2%).113 The energy is mainly consumed 
by residential households (72.5%), industry (14.4%), transportation (5.8%), agriculture (4.2%) 
and others (3.1%).114 Tanzania is dependent on imports of petroleum and products to meet its 
growing need for energy, in particularly for the transportation sector. The sector has seen many 
developments during the review period, including many new laws and regulations, for exa mple, 
the new Petroleum Act, improvements in the regulatory environment, exploration of petroleum, 
the commercial production of natural gas both onshore and offshore, and the development of an 
LNG project for export.  
4.78.   The energy sector is currently guided b y the National Energy Policy 2015 for the 
Mainland.115 The main goals of the Policy are to improve performance and promote the efficient 
use of energy resources, as well as remove bottlenecks in the sector. Some of the bottlenecks 
identified include: low pri vate-sector participation in large -scale power generation, over -reliance 
on a few generation sources, unreliable and expensive energy supply, and overdependence on 
government subsidies.116 The policy lists a number of objectives under each subject, and outli nes 
the Government's approach in policy statements. For example, to improve the supply of electricity, 
the Government is pursuing cross -border power trading. Currently , the Government is developing  
some important cross -border 400 kV transmission line proje cts, including the Singida –Arusha –
Namanga project , which will connect Kenya and Tanzania;  the construction of the Rusumo 80 MW 
hydro project , in which power will be shared equally betwe en Tanzania, Rwanda and Burundi;  and 
                                                
112 Mainly firewood and charcoal.  
113 TanzaniaInvest online information. Viewed at: https://www.tanzaniainvest.com/energy .  
114 Ministry of Energy online information. Viewed at: https://www.nishati.go.tz/wp -
content/uploads/2018/03/National -Energy -Policy -December -2015.pdf . 
115 Ministry of Energy online information. Viewed at: https://www.nishati.go.tz/wp -
content/uploads/2018/03/National -Energy -Policy -December -2015.pdf .  
116 Others include: low access to modern energy servi ces; inadequate human resources with the 
requisite skills and knowledge; low participation of the Government and Tanzanians in the petroleum value and 
supply chain; inadequate financial resources to develop the sector; and inadequate research and developme nt. 
National Energy Policy, 2015. Ministry of Energy online information. Viewed at: https://www.nishati.go.tz/wp -
content/uploads/2018/03/National -Energy -Policy -December -2015.pdf . WT/TPR/S/384 • Tanzania  
 
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  the North West 400 kV Extension Ir inga–Mbeya –Tunduma –Sumbawanga –Nyakanazi  project,  which 
will connect T anzania and Zambia.  
4.79.   Tanzania Atomic Energy Commission (TAMC) was established pursuant to the Atomic Energy 
Act, 2003, to provide regulatory and radiation protection and to promote the pea ceful use of 
nuclear science.117 
4.2.2.1   Petroleum and natural gas  
4.80.   Mainland  Tanzania's petroleum sector is in the exploratory phase; a number of exploration 
licences have been issued but production on a large commercial scale has not yet commenced. In 
Zanzibar, the sector is in its infancy; negotiations regarding exploratory contracts for oil and gas 
are underway. It is expected that  commercial oil and gas production could begin around 2025.118 
However, recent discoveries of oil and natural gas are changing Tanzania's energy landscape. The 
total amount of natural gas discovered  stands at 57.55 trillion cubic feet, with the large st area 
(47.13 trillion cubic feet) being off -shore. The first natural gas commercialization projects began in 
2004 but , with the identification  of additional reserves , there is now renewed interest regarding  
foreign investment , and this has prompted a new policy, law , and regulations  for the sector . 
4.81.   Tanzania's natural gas sector is comprised of numerous projects in various stages of 
development. Three major offshore blocks are under development by international oil companies, 
each of which are regulated by a Production Sharing Agreement (PSA).119 Output of natural gas 
from these fields during the review period has increased (Table 4.17) but their vi ability reportedly 
remains linked to the possibilities to export LNG, as there are high costs associated with their 
offshore extraction and limited possibilities to recoup the investment on the domestic market. The 
natural gas infrastructure consists of fo ur gas processing facilities and one major state -owned 
pipeline.  Tanzania also has an interest in energy infrastructure in neighbouring countries, as it 
owns one third of the Tanzania -Zambia -Mafuta oil pipeline that passes through its territory, and is 
constructing the Uganda -Tanzania crude oil pipeline  with neighbouring Uganda.120 An Inter -
Governmental Agreement (IGA) was signed between the two countries in May 2017, and 
negotiations between the Government and investors regarding  the Host Government Agreemen t 
are ongoing. The project is expected to be completed by June 2020.121 
4.82.   In Mainland Tanzania, the newly established Ministry of Energy122 provides the main policy 
direction for the sector. The upstream petroleum and gas sector is regulated by the Petroleum 
Upstream Regulatory Authority (PURA), and the downstream sector by the Energy and Water 
Utilities Regulatory Authority (EWURA) .123 The Tanzania Petroleum Development Corporation 
(TPDC) is a wholly -owned parastatal, responsible for  petroleum exploration and deve lopment.124 
The Petroleum Bulk Procurement Agency (PBPA)  bulk-purchases petroleum and petroleum 
products (imports).  Tanzania's Rural Energy Agency (REA) was created in 2007 as an autonomous 
body under the Ministry; it is tasked with improving energy services  to rural Mainland Tanzania.125  
4.83.   In 2015, Tanzania introduced the new Petroleum Act that replaced the earlier one from 
2010; it provides the main overarching framework for the sector for upstream, mid -stream and 
down -stream petroleum activities, including na tural gas.126 The Act clarifies petroleum activities 
                                                
117 TAMC online information. Viewed at: http://localhost/atomic/wp -
content/uploads/2018/06/atomic_energy_act_2003.pdf .  
118 AllAfrica  online information. Viewed at: https://allafrica.com/stories/201705100430.html .  
119 Tanzania Extractive Industries Transparency Initiative  - Final Report for the Period July 1 , 2015 to 
June 30 , 2016  Ministry of Minerals online information. Viewed at: https://www.madini.go.tz/wp -
content/uploads/2018/04/TANZANIA -EITI-2015-2016-FINAL -REPORT.pdf .  
120 EACOP online information. Viewed at: http://eacop.com/ .  
121 AllAfrica online information. Viewed at: 
https://allafrica.com/view/group/main/main/id/00042686.html .  
122 Split from the Ministry of Energy and Minerals.  
123 PURA online information. Viewed at: http://www.pura. go.tz/ . EWURA online information. Viewed at: 
http://www.ewura.go.tz/ .  
124 TPDC online information. Viewed at: http://tpdc.co.tz/aboutus.php .  
125 REA online information. Vie wed at: www.rea.go.tz .  
126 TNDC online information. Viewed at: http://www.tpdc.co.tz/wp -content/uploads/2016/02/SHERIA -
PETROLEUM -ACT-2015-Updated -version -15-6.pdf.  WT/TPR/S/384 • Tanzania  
 
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  between the Mainland and Zanzibar, and puts in place a number of local content provisions .127 
Under the Act, licences are issued , upon advice from  PURA , by the Ministry of Energy  to the TPDC 
that is designat ed as the national oil company, who then enters into  exploration, development or 
production  activities with private firms through a PSA. Unless otherwise specified, the TPDC retains 
a 25% participating interest. Furthermore, in the natural gas area, the TP DC was given exclusive 
rights as the aggregator to purchase, collect and sell natural gas from producers , with the 
exception of LNG designated for export. The 2015 Petroleum Act, Section 47, was amended by the 
Natural Wealth and Resources Contracts (Review  and Renegotiation of Unconscionable Terms) Act , 
2017 and the Natural Wealth and Resources (Permanent Sovereignty) Act , 2017; changes were 
made regarding provisions on contract transparency and accountability, approval of contracts by 
the National Assembly , and royalty payments.  
4.84.   The 2015 Oil and Gas Revenues Management Act was enacted to establish the Oil and Gas 
Fund and provide for its fiscal rules.128 The Fund is financed mainly by royalties, dividends, profit -
sharing arrangements, and corporate income ta x on oil and gas companies, so that it can provide 
financing for oil and gas investment as well as macroeconomic stability and social and economic 
development.  
4.85.   The petroleum and natural gas sector is guided by the 2015 National Petroleum Policy, 
which aims  to conserve the natural resource wealth for the nation while promoting the 
development of the sector. The policy states the importance of striking a balance between 
domestic and export -oriented natural gas  but affirms that the domestic market be given pri ority 
over the export market.  
4.86.   A number of new laws and regulations in the last two years are having an impact on the 
sector, and potentially have an impact on future investment. The Petroleum (Local Content) 
Regulations, 2017 govern local content matters r elated to upstream, midstream and downstream 
petroleum activities in Mainland Tanzania and, in essence, require investors in  the oil or gas 
industry to give preference to local Tanzanian companies when procuring goods, works or services 
of any kind .129 If a local company cannot provide such goods or services, preference is given to a 
non-local company with a joint venture agreement with a local company. The Natural Wealth and 
Resources Contracts (Review and Renegotiation of Unconscionable Terms) Act, 201 7 and the 
Natural Wealth and Resources (Permanent Sovereignty) Act, 2017 (Section 4.2.1) also apply to 
the oil and gas sector, although, to date, no oil or gas agreements have been re -negotiated 
pursuant to the Review and Renegotiation Act. The Petroleum ( Natural Gas Pricing) Regulations , 
2016 apply in Mainland Tanzania,  and govern pricing of natural gas for domestic and cross -border 
markets , i.e. by pipeline. They provide for a cost -plus profit margin approach to natural gas 
pricing, while also providing a  number of reference price methodologies.  
4.87.   In 2016, Zanzibar enacted its first upstream energy legislation, the Zanzibar Oil and Gas 
(Upstream) Act, 2016.130 The Act created the Zanzibar Petroleum Regulatory Authority  (ZPRA)  and 
the Zanzibar Petroleum Develop ment Company  (ZPDC); reserves petroleum rights for the 
Government within its territory; established the procedures and types of permits or licences for 
upstream petroleum activities; provides safety and environmental principles; includes local content 
and corporate responsibility provisions; and provides for offences, penalties, and dispute 
settlement.  
4.88.   In 2013, the Zanzibar Utilities Regulatory Authority Act established the Zanzibar Utilities 
Regulatory Authority (ZURA).131 It is an autonomous government bod y with widespread authority 
to regulate, issue and revoke licences, set rates, and ensure quality control and standards for the 
                                                
127 Some of these local content provisions have been further clarified through the Rregulations  
128 TNDC online information. Viewed at: http://www.tpdc.co.tz/wp -content/uploads/2016/02/SHERIA -
OIL-AND-GAS-REVENUE -.pdf.  
129 EWURA online information. Viewed at: http://www.ewura.go.tz/wp -content/uploads/2015/03/GN -
Petroleum -Local-Content -Regulations -2017-GN-197.pdf .  
130 Zanzibar Assembly online information. Viewed at: 
http://www.zanzibarassembly.go.tz/files/documents/bills/2016/OIL -AND-GAS-ZURA -Press.pdf .  
131 ZURA online information. Viewed at: www.zura.go.tz/2017/11/02/zanzibar -utilities -regulatory -
authority -act-no-7-2013/ .  WT/TPR/S/384 • Tanzania  
 
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  petroleum (downstream), electricity, and water sectors of Zanzibar. Its petroleum operations are 
further clarified in the Act's regulation, the Petroleum Supply Regulations, 2016.132 
4.89.   Pursuant to the Petroleum Act, 2015, Tanzania issued the Petroleum (Bulk Procurement) 
Regulations, 2017 that, together with the Executive agency, the Petroleum Bulk Procurement 
Agency) (Establishment) Or der, established the PBPA in 2015.133 It replaces th e Petroleum 
Importation Co -ordinator Ltd . (PICL) . The Regulations require the importation of petroleum 
products through a proficient procurement process, essentially requiring all imported petroleum 
product s (motor fuel, automotive gasoil, kerosene, heavy fuel oil, jet fuel, LPG, etc.) be procured 
in bulk through the PBPA. The PBPA traditionally issued monthly tenders for all petroleum product 
needs, and the winning bidder then supplied all petroleum product s for that month . However, 
changes were proposed and implemented in 2016 to make tenders on a cargo -by-cargo basis, to 
enable smaller firms to compete, as they could not supply all the products .134 The Regulations also 
give priority berthing to Bulk Procurem ent vessels. Petroleum product imports increased during the 
review period, with the majority going to the local market (Table 4.18). Tanzania does not export 
oil, natural gas, or petroleum products, except for re -exports. However, a significant amount of 
imported goods are in transit to neighbouring landlocked countries; these must be accounted for 
by the relevant authorities, including the EWURA.  
4.90.   Mainland Tanzania's natural gas prices are determined by the  Tariff Application Guidelines 
for Electricity and Natural Gas , 2017 and the EWURA (Tariff Application and Rate Setting) Rules , 
2017.135 These regulations set prices, according to the different types of users. P ower generat or 
prices are determined based on a  cost-plus-margin basis . Other users are based on the market 
price of alternative fuels discounted by a certain percentage, and special strategic invest ors have 
special gas prices based on the Petroleum (Natural Gas Indicative Prices) (Special Strategic 
Investments) Order, that gives specific indicative prices, including floor and ceiling, for investors in 
fertilizers and in other sectors, e.g. cement manufacturing.136  
Table 4.17 Production and revenue of natura l gas, Mainlanda, 2012 -17  
 2012  2013  2014  2015  2016  2017  
Quantity  
('000 cubic feet)  36,906,880  35,933,353  33,845,095  37,176,242  48,323,025  53,174,710  
Value (USD)  36,551,396  52,175,264  60,524,096  45,776,201  51,991,433  153,559,451  
a At Songosongo, Mnazi  Bay and Kiliwani North.  
Source:  TPDC, and information provided by the authorities.  
Table 4.18 Imports, local and transit, of petroleum products, 2012 -17  
('000 litres)  
 2012  2013  2014  2015  2016  2017  
Total  3,661,685  4,678,129  4,406,786  5,163,565  5,486,931  5,361,446  
 Local imports  2,667,2 60 3,125,688  2,844,194  3,338,097  3,302 ,299 3,193,253  
 Transit imports  994,425  1,552,441  1,562,592  1,825,468  2,185,151  2,168,193  
Source:  Downstream Petroleum Subsector Performance Review Reports . EWURA online information. Viewed 
at: http://www.ewura.go.tz/?page_id=867 .  
4.2.2.2   Electricity  
4.91.   Tanzania's electricity capacity was 1,458 MW in 2017, generated mainly from natural gas 
and hydro; liquid fuel and biomass also have a small share (Chart 4.1). Of a total availability of 
                                                
132 ZURA online information. Viewed at: www.zura.go.tz/2017/11/02/zanzibar -utilities -regulatory -
authority -regulation/  . 
133 EWURA online information. Viewed at: http://www.ewura .go.tz/wp -content/uploads/2015/04/PBPA -
REGULATION -2017.pdf .  
134 EWURA online information. Viewed at: http://www.ewura.go.tz/wp -content/uploads/2015/04/2017 -
PETRO LEUM -REPORT -web.pdf .  
135 EWURA online information. Viewed at: http://www.ewura.go.tz/?page_id=307 .  
136 EWURA online information. Viewed at: http://www.ewura.go.tz/wp -
content/uploads/2015/03/Petroleum -Natural -Gas-Indicative -price-ORDER -2017.pdf .  WT/TPR/S/384 • Tanzania  
 
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  7,100 GWh in 2017, only 100 GWh was attributed to cross -border imports.137 Electricity demand is 
increasing rapidly , due to  increasing industrialization and pop ulation growth. T he overall national 
electricity access rate was 67.5%, with urban areas at 97.3 % and rural areas at 49.5% . Zanzibar 
is reliant on the Mainland for its electricity, as there is  no generation on the islands. It is supplied 
by the Zanzibar E nergy Utility (ZECO), Zanzibar's state -owned electricity distribution company, 
through underground cables. A re -organization of the electricity sector is currently ongoing. This 
has resulted in a number of changes in the regulations impacting the sector.  
4.92.   The main player in Tanzania's electricity sector is the Tanzanian Electric Supply Company 
Ltd. (TANESCO), the state enterprise involved in nearly all aspects of the electricity sector 
including generation, transmission, and downstream distribution (Chart 4. 2). In 2017, it accounted 
for 85% of the country's electricity generation. TANESCO also sells bulk power to ZECO. As at end -
2017, there was  also one independent power producer (IPP) and a number of small power 
producers in both grid and off -grid areas . The EWURA is the sector's regulatory arm, and it has a 
broad mandate, including licensing or registration of power projects, determining prices, and 
enforcing quality standards. The Tanzania Geothermal Development Company (TGDC) was 
established in 2013 as a 1 00% state -owned enterprise, to explore, drill, and harness geothermal 
energy for power generation.  
4.93.   The main law for the electricity sector continues to be the Electricity Act, 2008, which 
regulates all upstream and downstream electricity activities.138 It also regulates operating licences, 
tariffs, monitoring and inspection, rural electrification, and dispute settlement. Part VIII of the Act 
foresaw the reorganization of the electricity market within one year of its issuance, but this did not 
occur until 2014 , when the Electricity Supply Industry Reform Strategy and Roadmap 2014 –2025 
was published.139 The Strategy and Roadmap outline a number of proposed reforms, and the paths 
for achieving them, but the main elements include increased efficiency, improved quali ty of goods 
and services, the availability of affordable power, increased transparency and competition, and the 
abolition of subsidies in the electricity subsector.  
4.94.   The Electricity (Market Re -organization and Promotion of Competition) Regulations, 2016 
are one of the most important regulations for carrying out the electricity sector reforms as outlined 
in the Strategy and Roadmap.140 They set out a time -frame for the necessary re -organization. The 
first major event was the unbundling of generation from the tr ansmission and distribution activities 
of TANESCO, which was due to occur in December 2017 but, as of October 2018, had not yet 
taken place. A number of other events, such as the designation of a systems operator, the 
unbundling of the distribution and tra nsmission activities, and the establishment of a mechanism 
of determining wheeling charges, were to have taken place as of June 2018 but have also not yet 
been achieved. The next phase is the establishing of a mechanism for determining retail tariffs in 
2021, and the final unbundling of distribution activities and listing of generation companies and 
distribution companies on the capital markets by 2025. As a result of the reorganization of the 
electricity sector, the EWURA has issued a number of other regul ations or rules in the last few 
years that have an important impact on the sector (Box 4.2).  
4.95.   There is minimal trade in electricity. Tanzania imported about 100 GWh of electricity from 
neighbouring Uganda, Zambia, and Kenya  in 2017, which accounted for less  than 2% of its 
electricity consumption. Tanzania also exports about 1 MW of power to Kenya through the 
Namanga border . The EWURA continues to set or control prices of electricity for the Mainland, and 
ZURA does the same for Zanzibar.  
                                                
137 EWURA Annual Report 2017 . View ed at: http://www.ewura.go.tz/wp -
content/uploads/2018/03/Annual -Report -for-the-Year-Ended -30th-June-2017.pdf .  
138 Ministry of Energy online  information. Viewed at: https://www.nishati.go.tz/wp -
content/uploads/2018/02/Electricity -Act-2008.pdf .  
139 TANESCO online information. Viewed at: 
http://www.tanesco.co.tz/index.php/media1/downloads/announcements/12 -electricity -supply -industry -reform -
strategy -and-roadmap-2014-2025. Ministry of Energy online information. Viewed at: 
https://www.nishati.go.tz/wp -content/uploads/2018/ 03/Electricity -Supply -Industry -Reform -Strategy -and-the-
Roadmap -ESI-RSR.pdf . TPDC online information. Viewed at: http://tpdc.co.tz/wp -
content/uploads/2015/04/ROADMAP.pdf . 
140 Ministry of  Energy online information. Viewed at: https://www.nishati.go.tz/wp -
content/uploads/2018/03/The -Electricity -Market -Re-Organization -and-Promotion -of-Competition -Regulations -
2016.pdf .  WT/TPR/S/384 • Tanzania  
 
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  Chart 4.1 Electric power generation by source, 2016 -17 
 
Source:  EWURA Annual Report, 2017 . 
Chart 4.2 Tanzania's electricity sector structure, 2017  
 
Source:  EWURA  Annual Report, 2017 . 
Natural Gas
59%Hydro
35%Liquid fuels
6%Biomass
0.3%Chart 4.[TZA] Electric power generation sources, 2016/17
Source:  EWURA Annual Report 2017.
Chart 4.[TZA] Tanzania's electricity sector structure, 2018
Source:  EWURA Annual Report 2017.Ministry of Energy
TANESCO
Generation
TANESCO
Transmission
TANESCO
DistributionZanzibar 
Electricity 
Corporation 
(ZECO)Tanzania Geothermal 
Development 
Company Energy and Water 
Utilities Regulatory 
Authority (EWURA)12 power
generation 
suppliers
Mwenga 
Hydropower 
Ltd. and
small power 
producersImports
= Government agencies
= IPP or private
= Monopoly
TANESCO= Tanzanian Electric Supply Company Limited, State -owned enterprise. WT/TPR/S/384 • Tanzania  
 
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  Box 4.2 New electricity rules, orders, and regulations, 2012 -18 
The Electricity (Market Re -Organization and 
Promotion of Competition) Regulations, 2016  The Electricity (Tariff Setting) Rule s, 2016  
The Electricity (Electrical Installation Services) Rules, 
2015 The Electricity (Market Operations) Services Rules, 
2016 
The Electricity (System Operations) Services Rules, 
2016 The Electricity (Licensing Fees) Rules, 2016  
The Electricity (Procurement of Power Projects and 
Approval of Power Purchase Agreements) Rules, 2017  The Electricity (Supply Services) Rules, 2017  
The Electricity (Grid Distribution Codes) Rules, 2017  The EWURA (Tariff Application and Rate Setting) 
Rules, 2017  
The Electricity (Development of Small Power Projects) 
Rules, 2018  The Electricity (NET -METERING) Rules, 2018  
The Electricity (Standardised Small Power Projects 
Tariff) Order, 2017   
Source:  EWURA online information. Viewed at: http://www.ewura.go.tz/?page_id=293 . 
Table 4.19 Electricity installed capacity, generated and sold, Mainland and Zanzibar, 
2012 -16 
 2012  2013  2014  2015  2016  
Mainland  
Generated (GWh)  5,859.9  5,997.4  6,285.0  6,457.4  7,092.2  
Sold (GWh)  4,145.0  4,606.4  4,703.0  4,952.6  5,496.9  
Total 821.2  884.2  884.2  1,034.2  1,063.5  
Zanzibar  298.6  218.7  348.5  344.6  375.6  
Note:  GWh Gigawatt hour = million KWh.  
Source:  TANESCO.  
4.3  Manufacturing  
4.96.   The manufacturing sector in Tanzania has continued to grow during the period under 
review, but at a slightly slower pace than in the period 2006 -13. It contributed to about 5.6% of 
GDP on average during the last three years, a slight deterioration from 6% -8% during 2012 -14 
(Table 1.1). As such, there has been a significant push by the Government in recent years to 
promote more manufacturing and industrialization by 2025. In order to do this, it has been putting 
in place new incentives to attract investment,  reviewing policies for export processing zones and 
special economic zones, and re -examining the tax system.  
4.97.   According to Tanzania's Bureau of Statistics, the manufacturing sector had 54,017 business 
enterprises in 2014/15.141 It is comparable with many of i ts African neighbours, as most of the 
manufacturing in Tanzania is concentrated in the area of processed food and beverages.142 It has 
been suggested that the manufacturing sector needs to diversify. Other important manufacturing 
subsectors include mineral p rocessing, chemicals, rubber and plastics, and textiles (Table 4.20). 
Zanzibar presents a similar situation, with processed food and beverages as the main industries, 
followed by clothing and plastic processing.  
4.98.   In terms of ownership, the vast majority of manufacturing in Tanzania is held by small 
enterprises that are sole proprietorships (77.3%). This is followed by public ownership (13.2%) 
and companies (4.5%) (Chart 4.3). Furthermore, nearly all small manufacturing establishments 
                                                
141 Statistical Business Register Report, 2014/15 . Bureau of Statistics online information. Viewed at: 
www.nbs.go.tz/nbs/takwimu/Br/2014_15_SBR.pdf . 
142 National Bureau of Statistics online information. Viewed at: 
http://www.nbs.go.tz/nbs/takwimu/Industry/2013_Census_of_Industrial_Production_Analytical_Report.zip .  WT/TPR/S/384 • Tanzania  
 
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  are owned by Tanzanians (99.9%); foreign ownership is concentrated in large establishments, with 
13% being foreign owned, and 9% owned jointly by foreigners and Tanzanians.143 
4.99.   In 2011, Tanzania created its Integrated Industrial Development Strategy 2025, to 
stimulate the economy, h elp achieve the Millennium Development Goals (MDGs), and help 
transform its market -dependent agricultural economy into a semi -industrial one by 2025. Its aim 
is that the manufacturing sector grow 15% per year on average, and take a 23% share in GDP by 
2025.144 This policy, along with other government policies in the Five -Year Development Plan, the 
Sustainable Industrial Development Policy 1996 -2020, and its Industrial Competitiveness Report 
2015, emphasize exploiting Tanzania's comparative advantage in natura l resource -based sectors 
(agriculture and mineral), capturing opportunities in light -manufacturing industries, improving 
infrastructure and the business environment, and encouraging the private sector to lead the way, 
through investment and innovation, to grow the manufacturing sector.145 A number of key 
industries are targeted: sunflower oil, cotton apparel, leather and leather products, automotive, 
chemicals and fertilizers, iron and steel, and other agro -processing subsectors.  
4.100.   In 2016, there were reports that Tanzania would launch an industrial development bank to 
help the industrial sector with financing and development, as mentioned in the Strategy.146 The 
aim was to help fast -track industriali zation in Tanzania. As at 2018, the idea of an industrial 
development bank was still under discussion.  
4.101.   The MITI remains the main Ministry involved in industrial policy and programmes in 
Tanzania. Together with the ITC and private -sector stakeholders, it has produced four sectoral 
development strategies for the pe riod 2016 -20. These are for cotton -to-clothing, sunflowers, 
pulses, and leather.147 These strategies involve the Government and the private sector working 
together, to achieve their successful implementation. For the past two years , duty exemption s 
have been  put in place  for imported machinery , directed at investment in these industries, as 
implemented through the annual Fi nance Acts.148 
4.102.   The Confederation of Tanzanian Industries advocates on behalf of the sector, and has 
identified a number of issues that are k ey to improving industrial development; these include the 
availability and reliability of power; a high level of taxation overall, including numerous and 
nuisance taxes; and regional integration and trade agreements.149 The Government has recognized 
that fin ding appropriate land for establishing factories is also an impediment. As such, the MITI 
has been strengthening SEZs, and setting aside land for industrial parks (Section 2.4.4).150 
4.103.   Tanzania launched its SME Development Policy in 2003 to aid in revitalizing  the sector and  
to help achieve the objectives within the Tanzania Development Vision 2025; its overall objective 
is to "foster job creation and income generation through promoting the creation of new SMEs and 
improving the performance and competitiveness  of the existing ones to increase their participation 
and contribution to the Tanzanian economy." 151 The main aim was to review policies and 
                                                
143 Census of Industrial Production, Tanzania Mainland, 2013 . Bureau of Statistics online information. 
Viewed at: http://nbs.go.tz/nbstz/index.php/english/statistics -by-subject/industrial -statistics/782 -census -of-
industrial -production -reports-published -on-september -2016.  
144 Development Partners Group Tanzania online information. Viewed at: 
http://www.tzdpg.or.tz/fileadmin/_migrated/content_uploa ds/IIDS_Main_Report.pdf .  
145 Ministry of Finance online information. Viewed at: 
http://www.mof.go.tz/mofdocs/msemaji/Five%202016_17_2020_21.pdf . UNIDO online information. Viewed  
at: https://www.unido.org/sites/default/files/2016 -05/TICR_Summary_Report_ -_FINAL_25Apr16_0.pdf . 
Tzonline information. Viewed at: http://www.tzonline.org/pdf/sustainableindustrial.pdf .  
146 TanzaniaInvest online information. Viewed at: https://www.tanzaniainvest.com/ind ustrialisation .  
147 MITI online information. Viewed at: 
http://www.mit.go.tz/uploads/files/Tanzania%20Roadmap%20for%20Pulses.pdf , 
http://www.mit.go.tz/uploads/files/Tanzania%20Cotton%20To%20Clothing%20Strategy.pdf , 
http://www.mit.go.tz/uploads/files/Tanzania%20Leather%20Strategy.pdf , 
http://www.mit.go.tz/uploads/files/Tanzania%20Sunflower%20Strategy.pdf .  
148 TRA online i nformation. Viewed at: https://www.tra.go.tz/index.php/laws .  
149 Annual Report 2015 . Confederation of Tanzanian Industries online information. Viewed at: 
https://silkstart.s3.amazonaws.com/a288ae4f -178e-4428-8966-8fd7095f8c42.pdf .  
150 TanzaniaInvest online information. Viewed at: https://www.tanzaniainvest.com/industry/interview -
adelhelm -meru-permanent -secretary -ministry -industry -trade-investment .  
151 Development Partners Group Tanzania online information. Viewed at: 
http://www.tzdpg.or.tz/fileadmin/_migrated/content_uploads/sme.policy.2002.pdf .  WT/TPR/S/384 • Tanzania  
 
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  regulations that may hinder the sector, enhance growth in the sector, and develop new strategies 
and institutions to  support the sector. UNIDO performed an implementation review in 2012 that 
noted that the key pillars still remain valid and, notwithstanding achievements, certain gaps in 
implementation remained.152 
Chart 4.3 Businesses by type of ownership, Mainland, 2014 -15 
(% of total number of establishments)  
 
Source:  Statistical Business Register Report, 2014/15 . Bureau of Statistics online information. Viewed at: 
www.nbs.go.tz/nbs/takwimu/Br/2014_15_SBR.pdf .  
Table 4.20 Industrial activitya, Mainland, 2013 -16 
(TZS million)  
ISIC 
Rev.4  Industrial activity  2013  2014  2015  2016  
10  Manufacture of food products  3,953,075  4,010,367  4,054,713  4,113,478  
11  Manufacture of beverages  1,743,089  1,768,352  1,787,906  1,813,818  
12  Manufacture of tobacco products  655,603  665,105  672,459  682,205  
13  Manufacture of textiles  404,590  410,454  414,992  421,007  
14  Manufacture of wearing apparel  24,619  24,976  25,252  25,618  
15  Manufacture of leather and related products  55,042  55,840  56,457  57,276  
16  Manufacture of wood and of products of wood 
and cork, except furniture; manufacture of 
articles of straw and plaiting materials  124,421  126,224  127,620  129,470  
17  Manufacture of paper and paper products  96,703  98,104  99,189  100,627  
18  Printing and reproduction of recorded media  177,532  180,105  182,097  184,736  
20  Manufacture of chemicals and chemical 
products  554,111  562,142  568,358  576,595  
21  Manufacture of basic pharmaceutical products 
and pharmaceutical preparations  60,170  61,042  61,717  62,612  
22  Manufacture of rubber and plastic products  631,542  640,694  647,779  657,167  
23  Manufacture of other non -metallic mineral 
products  759,228  770,231  778,748  790,035  
24  Manufacture of basic metals  170,807  173,283  175,199  177,738  
25  Manufacture of fabricated metal products, 
except machinery and equipment  115,917  117,597  118,897  120,620  
27  Manufacture of electrical equipment  36,456  36,984  37,393  37,935  
28  Manufacture of machinery and equipment 
n.e.c.  102,967  104,460  105,615  107,145  
19 
29 
30  
31 
32  Other manufacturing  548,827  556,780  562,937  571,096  
33  Repair and installation of machinery and 
equipment  70,301  71,320  72,108  73,153  
 Total manufacturing  10,284,999  10,434,060  10,549,438  10,702,331  
a Gross output in industrial establishments with 10 or more workers, by industrial activity.  
Source:  Annual Survey of Industrial Production.  Bureau of Statistics.  
                                                
152 Development Partners Group Tanzania online information. Viewed at: 
http://www.tzdpg.or.tz/fileadmin/_migrated/content_uploads/130324_Tanzania_SME_Policy_Review_Final.pdf .  
Public
13.2%
Public 
organization 
0.4%
Religious institution 2.0%Sole proprietor
77.3%Cooperative
1.9%
Company  4.5%
NGO 0.5%
Mixed 0.2%Chart 3.[TZA] Establishments by type of ownership in Tanzania mainland, 2014/15
Source:  Statistical Business Register Report 2014/15 Tanzania Mainland.(% of total number of establishments)WT/TPR/S/384 • Tanzania  
 
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  4.4  Services  
4.4.1   Financial  
4.4.1.1   Banking  
4.104.   Tanzania's banking sector growth has slowed in recent years but remains relatively 
healthy, with adequate capitalization, despite a number of internal and external shocks and an 
increase in the number of non -performing loans (NPLs). With the overall sector  exhibiting limited 
growth, there were some brighter spots, as high growth rates were achieved in mobile money 
services and microfinance/microlender services.153 Also, access to financial services markedly 
improved during the review period but there is still  relatively low penetration among the low -
income population. In terms of formal banking services, 65% of the population had access in 
2017, compared to 58% in 2013. Of the remaining 35%, about 7% use informal financial services, 
and about 28% remain exclud ed.154 Tanzania's banks have been liberalized since the early 1990s 
but a number of parastatals still operate in the sector, and there is also a significant informal 
subsector.  
4.105.   The legal framework governing the banking sector has not changed significantly du ring the 
review period, and the main acts remain the Bank of Tanzania Act, 2006; the Banking and 
Financial Institutions Act, 2006; and the Foreign Exchange Act, 1992. However, the new National 
Payment Systems Act, 2015 came into force, to address safety is sues and improve efficiencies and 
innovations in digital services.155 Most of the developments in the sector are due to the 24 new 
regulations that have come into force (Box 4.3). Most of these update  and replace previous 
regulations, and do not depart subst antially therefrom; however, rules or benchmarks have been 
tightened or adjusted in a number of areas. With respect to foreign exposure, additional 
obligations have been added; and, on capital adequacy, some tightening has also taken place and 
the level of  the requirements has been adjusted, based on the type of bank. Regarding financial 
disclosure obligations, additional transparency requirements have been put in place, and the Risk 
Management Regulations have changed some criteria regarding expired loans and outstanding 
credit. Also in 2016, pursuant to the Finance Act, 2016, the VAT exemption for financial services 
was amended , so as to exempt only financial services supplied free of charge, insura nce premiums 
for aircraft, life or health insurance, and i nsurance for workers' compensation; thus, most financial 
services now face the standard 18% VAT.156 
4.106.   The Bank of Tanzania Act, 2006 established the Directorate of Banking Supervision , under 
the BOT, as the banking regulatory authority.157 It grant s license s, and supervise s and regulate s 
banks and certain other financial institutions operating  in Tanzania, including Zanzibar,  with a view 
to ensuring the safety, soundness and stability of the banking system . BOT supervision extends 
not only to commercial banking i nstitutions, but to microfinance banks, bureaux de change, 
pension funds, credit reference bureaux, mortgage finance businesses, and financial leasing 
businesses. Banking institutions, however, make up the largest subsector and, as at October 2018, 
58 were  operating in Tanzania, of which 30 were majority foreign -owned and 28 were majority 
local-owned (Table 4.21). In addition, three are state -owned by the Governmen ts of either 
Tanzania or Zanzibar.  
                                                
153 FinScope 2017. Financial Sector Deepening Trust (FSDT) onlin e information. Viewed at: 
http://www.fsdt.or.tz/wp -content/uploads/2017/09/FinScope -Tanzania -2017-Insights -that-Drive -
Innovation.pdf .  
154 FinScope 2017. Financial Sector Deepening Trust (FSDT) online information. Viewed at: 
http://www.fsdt.or.tz/wp -content/uploads/20 17/09/FinScope -Tanzania -2017-Insights -that-Drive -
Innovation.pdf . 
155 BOT online information. Viewed at: 
https://www.bot.go.tz/PaymentSystem/NPS%20Act%202015.pdf .  
156 Finance Act, 2016. T RA online information. Viewed at: 
https://www.tra.go.tz/images/uploads/statistics/Finance -Act-2016--2.pdf.  
157 BOT online information. Viewed at: https://www.bot.go.tz/AboutBOT/BOTAct2006.pdf .  WT/TPR/S/384 • Tanzania  
 
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  Table 4.21 Banking sector overview, 2012 -17 
 2012  2013  2014  2015  2016  2017  
Banking institutions, by 
category  49 52 53 56 59 58 
 Commercial banks  32 34 34 36 38 37 
 Development financial 
institutions  0 0 0 2 2 2 
 Microfinance banks  1 2 3 3 4 5 
 Community banks  12 12 12 12 12 11 
 Financial institutions  4 4 4 3 3 3 
Branches  556 642 702 728 810 821 
Market share of local 
banks  51.12  52.20  52.65  52.75  56.36  57.43  
Market share of foreign 
banks  48.88  47.80  
 47.35  47.25  43.64  42.57  
Total assets (TZS billion)  16,984.00  19,522.92  22,505.55  27,217.97  27,917.31  29,804.93  
Total liabilities (TZS 
billion)  14,853.02  16,975.95  19,490.40  23,416.25  23,632.00  25,154.29  
Total capital (TZS billion)  2,133.00  2,547.00  2,982.51  3,801.72  4,285.31  4,650.65  
Total earnings (TZS  
billion)  2,027.17  2,437.09  2,798.40  3,333.53  3,841.06  3,961.82  
Microfinance sectora 
Number of banks  .. 2 2 3 4 5 
Total assets (TZS billion)  .. 75.99  122.00  135.69  158.21  .. 
Total capital (TZS billion)  .. 9.77 43.75  45.90  50.85  .. 
.. Not available.  
a Covers only deposit -taking microfinance institutions, commercial banks with microfinance products 
and community banks under the supervision of the BOT.  
Source:  Directorate of Banking Supervision, Annual Report 2016 . BOT online information. Viewed at: 
https://www.bot.go.tz/BankingSupervision/Reports/DBS%20ANNUAL%20REPORT%202016.pdf , and 
information provided by the authorities.  
4.107.   One of the developments during the review period was the rapid increase in mobile 
banking, which also increased the availability of financial services to a population that is widely 
dispersed and often lives in rural areas not in close proximity to formal banking services. There 
was a nearl y three -fold increase in Internet banking over the period, from TZS 17 trillion to TZS 45 
trillion, and even greater gains for mobile payment systems, from TZS 17 trillion to TZS 59 
trillion.158 These developments have, in turn, prompted the Government to en act the National 
Payment Systems Act, 2015 , to regulate these services for both banks/financial institutions and 
non-banks/non -financial institutions.159 Previously, non -bank and non -financial institutions, i.e. 
telecommunications providers, were not covered  by certain BOT guidelines and circulars regarding 
mobile banking. As a result of the new Act and its Regulations, the BOT is now vested with the 
power  to license or approv e; it has the mandate to regulate, supervise, and oversee the operations 
of payment systems  operators. Thus, mobile banking entities must apply for the necessary 
licences, in the case of non -banks/non -financial institutions, or approvals, in the case of 
banks/financial institutions.160 Additionally, for non -banks/non -financial institutions, they must also 
set up a separate legal entity , i.e. a trust, in order to issue  electronic money . Mobile money 
interoperability is now also starting to be achieved with neighbouring EAC countries; it was 
announced in July 2018 that two telecom companies in Tanzania and Rwanda now allow mobile 
money transactions between the two countries.161 
4.108.   Another relatively new development has been the advent of agency banking, in order to 
have greater outreach at a lo wer cost regarding establishing traditional branches.162 This sector 
has also exhibited high growth rates since 2013, when the BOT first authorized it through the 
                                                
158 Directorate of Banking Supervision, Annual Report 2016 . BOT online information. Viewed at: 
https://www.bot.go.tz/BankingSupervision/Reports/DBS%20ANNUAL%20REPORT%202016.pdf . 
159 Transactions involving cryptocurrencies are not covered by the Act.  
160 These are the payment system licence or approval, the pay ment instrument licence or approval, and 
the electronic money licence or approval.  
161 Tanzaniainvest online information. Viewed at: https://www.tanzaniainve st.com/telecoms/mtn -tigo-
mobile -money -rwanda#more -13628 .  
162 This allows licensed banks and financial institutions to appoint retail agents for their banking 
services.  WT/TPR/S/384 • Tanzania  
 
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  Guidelines on Agent Banking for Banking Institutions.163 In 2013, there were 591 registered 
agent s, and, in 2016, 5,676.164 New BOT Guidelines were issued in 2017.165 They do not differ 
significantly from the previous ones, but relatively minor changes were made to the list of 
approved activities, the selection criteria for agents, risk management, and te chnical data and 
security requirements.  
4.109.   In 2017, Tanzania launched its new National Microfinance Policy, to provide guidance on 
new developments in microfinance, address new challenges, and align elements of its policies and 
laws with regional and interna tional protocols.166 At present, Tanzania does not have a dedicated 
microfinance law, although the Financial Laws (Miscellaneous Amendment) Act, 2003  incorporated 
microfinance into the financial system, thus some microfinance institutions are licensed and 
regulated by the BOT.167 Some other microfinance institutions operating as financial cooperatives 
are under the purview of the Tanzania Cooperative Development Commission (TCDC)168 but most, 
including non -deposit taking  microfinance companies and community finan cial groups,  are not 
licensed, regulated or supervised in any way.169 The sector is growing, but it is also noted that 
high interest rates are charged, and there is a general lack of consumer protection. As such, the 
new Policy sets forth seven specific obje ctives aimed at addressing these and other issues, 
including: financial inclusion; the sustainability of microfinance service providers; the regulation of 
microfinance services; the promotion of research, innovation, and product development; the 
strengthen ing of regional and international cooperation; the improvement of good governance; 
and the mainstreaming of disadvantaged groups. To implement these specific objectives within a 
period of ten years, the Ministry of Finance and Planning issued the Implement ation Strategy for 
the National Microfinance Policy 2017, for the period of 2017/18 -2027/28.170 This document lists a 
number of specific strategies and targets, including dates for each objective to be achieved.  
4.110.   According to the authorities, a number of Isla mic banks operate on the Mainland and in 
Zanzibar. There are no specific laws or framework for the establishment of these banks, although 
the BOT has authorized a number of them to operate. There has been some concern that the lack 
of a regulatory framewor k has hampered investment and growth of the sector.171 
Box 4.3 New banking regulations and guidelines, 2012 -17  
Credit Reference Databank Regulation , 2013 Guidelines on Agent Banking for Banks and Financial 
Institutions, 2017  
Bureau de Change Regulation , 2015 Banking and Financial Institutions (Mortgage Finance) 
Regulations, 2015  
Bureau Regulations Amendment , 2017 Social Security Schemes Investment Guidelines, 2015  
Credit Reference Bureau Regulation , 2013 Banking and Financial Institutions (Capital Adequacy) 
(Amendment) Regulations, 2015  
Banking and Financial Institutions (Internal Control 
and Internal Audit) Regulations, 2014  Banking and Financial Institutions (Capital Adequacy) 
Regulations, 2014  
                                                
163 BOT online information. Viewed at: 
https://www.bot.go.tz/BankingSupervision/GUIDELINES%20ON%20AGENT%20BANKING%20FOR%20BANKIN
G%20INSTITUTIONS%202013.pdf .  
164 Directorate of Banking Supervision, Annual Report 2016 . BOT online information. Viewed at: 
https://www.bot.go.tz/BankingSupervision/Reports/DBS%20ANNUAL%20REPORT%202016.pdf .  
165 BOT online information. Viewed at: 
https://www.bot.go.tz/BankingSupervision/Guidelines%20on%20Agent%20Banking,%202017.pdf .  
166 Ministry of Finance and Planning online information. Viewed at : 
http://www.mof.go.tz/docs/Policy%20 -%20Fedha%20English%203%20(2).pdf .  
167 Covering deposit -taking microfinance institutions, commercial banks with microfinance products and 
community banks. BOT online information. Viewed at: https://www.bot.go.tz/mfi/Default.asp?M enu=LEGAL .  
168 Pursuant to the Cooperative Societies Act, 2013.  
169 Ministry of Finance and Planning online information. Viewed at: 
http://www.mof.go.tz/docs/Policy%20 -%20Fed ha%20English%203%20(2).pdf . 
170 Ministry of Finance and Planning online information. Viewed at: 
http://www.mof.go.tz/docs/IMPLEMENTATION%20STRATEGY -English%203.pdf .  
171 The Ci tizen online information. Viewed at: http://www.thecitizen.co.tz/News/ --------- Lack-of-rules-
affects -investors -in-Islamic -banking ---/1840340 -3218352 -qdah3j/index.html .  WT/TPR/S/384 • Tanzania  
 
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  Banking  and Financial Institutions (Management of 
Risk Assets) Regulations, 2014  Banking and Financial Institutions (Credit 
Concentration and Other Exposures Limits) 
Regulations, 2014  
Banking and Financial Institutions (Foreign Exchange 
Exposure Limits) Regulati ons, 2014  Banking and Financial Institutions (Licensing) 
Regulations, 2014  
Banking and Financial Institutions (Physical Security 
Measures) Regulations, 2014  Banking and Financial Institutions (Liquidity 
Management) Regulations, 2014  
Banking and Financial  Institutions (Prompt Corrective 
Actions) Regulations, 2014  Banking and Financial Institutions (Microfinance 
Activities) Regulations, 2014  
Banking and Financial Institutions (Microfinance 
Activities) (Amendment) Regulations, 2015  Banking and Financial Ins titutions (External Auditors) 
Regulations, 2014  
Banking and Financial Institutions (Disclosures) 
Regulations, 2014  Banking and Financial Institutions (Consolidated 
Supervision) Regulations, 2014  
Payment Systems (Licensing and Approval) 
Regulations, 2015  Payment System (Electronic Money) Regulations, 
2015 
Source:  BOT online information. Viewed at: 
https://www.bot.go.tz/BankingSupervision/BankingSupervision.asp .  
4.4.1.2   Insurance  
4.111.   During the review period, the insurance sector continued to grow, almost in parallel with 
that of GDP, but at slower rates in recent years (Table 4.22). The sector remains small, accounting 
for less than 1% of GDP. The number of insurance companies has gradual ly increased from 28 to 
31, with the growth taking place through the addition of three private companies. Two state -
owned companies, the Tanzania National Reinsurance Corporation Limited and the Zanzibar 
Insurance Corporation, continue to operate in the se ctor and are owned 100% by their respective 
governments. In terms of growth, the life insurance subsector slightly outperformed the general 
insurance subsector in 2016 but, within the category of general insurance, insurance for the oil 
and gas sector had the highest growth rate, at 93%.172 This is likely fuelled by recent legal 
changes in the energy and mining sectors (Section 4.2).  
Table 4.22 Overview of the insurance sector, 2012 -16  
 2012  2013  2014  2015  2016  
Market growth (TZS billion)  406.6  474.1  554.4  618.9  660.0  
Growth (%) 18% 17.1%  17% 12% 7% 
Insurers' net worth (TZS billion)  132.7  175.3  218.3  245 268.1  
Insurance companies:  28 29 30 31 31 
 - of which reinsurance  1 1 1 1 1 
 100% ownership by Tanzanians  4 5 5 5 5 
 Privately -owned with Tanzanian citizen 
ownership of at least one third  22 22 23 24 24 
 State -owned  2 2 2 2 2 
Insurance brokers  79 90 112 123 136 
Insurance agents  262 301 398 471 575 
Loss assessors and adjusters  39 44 51 45 52 
Source:  Annual Insurance Market Performance Reports, 2012 -16. Tanzania Insurance Regulatory Authority 
online information. Viewed at: https://www.tira.go.tz/annual -reports .  
4.112.   The framewor k for the insurance sector has not changed considerably during the review 
period but certain restrictions on foreign insurers were put in place in 2017, and new regulations 
for Takaful insurance products (an Islamic cooperative insurance scheme) were imple mented in 
2014 (see section on Banking, above, for changes in VAT for the financial services sector, including 
insurance). The insurance sector has been liberalized since 1996, and is currently governed by the 
                                                
172 "Annual Insurance Market Performance Report for the year 2016". TIRA online information. Viewed 
at: https://www.tira.go.tz/content/annual -insurance -market -performance -report -year-ended -31st-december -
2016.  WT/TPR/S/384 • Tanzania  
 
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  Insurance Act, 2009 and the Insurance Regulati ons, 2009.173 These two pieces of legislation set 
out the main structure and function of the sector, including capital and other requirements, 
registration, third -party rights, mandatory reinsurance cessions, special provisions for long -term 
life insurance, and the establishment of an ombudsman and tribunal. A review of the 2009 
Insurance Act and its Regulations commenced in 2016, with a view to modernizing certain aspects, 
in line with developments in the sector by 2017.  
4.113.   The Insurance Act and Regulations al so created the regulatory authority, the Tanzania 
Insurance Regulatory Authority (TIRA), which remains the sector's main regulatory arm for both 
the Mainland and Zanzibar . It handles the registration of insurance entities (agents, accessors, loss 
surveyors , brokers, companies and reinsurance companies), inspects insurance entities, deals with 
complaints from the public, and creates insurance awareness programmes.  
4.114.   Important changes were introduced in 2017 to the Insurance Act, through the 
Miscellaneous Amend ments Act (No. 2).174 The main changes were:  
• The requirement that insurance brokers be at least two -thirds owned and controlled by 
Tanzanian citizens (previously it was one -third);  
• The requirement that a Tanzanian resident company or person be insured only with a 
Tanzanian registered insurer, in particular for all ground, marine and air cargo insurance 
cover for imports;  
• The payment of premiums directly from customers to insurers; an d 
• The setting of minimum rates of premiums for different types of insurance products, as 
published in the Gazette.  
4.115.   The TIRA also issued a new circular in 2017, putting in place new restrictions on foreign 
reinsurers and reinsurance brokers.175 The main provi sions of the circular are that all foreign 
reinsurance arrangements are subject to prior approval by the TIRA; the externalization of risks at 
100% (fronting) is prohibited176; the creation of insurance pools for market retention; the i rregular 
bundling and repackaging of risks , with the intention of complicating risk exposure and promoting 
unnecessar y externalization, is prohibited; the prohibition of the externalization of long -term 
insurance business; i nsurers facing solvency margin deficiencies are not  allowed to externalize 
insurance risks on a facultative basis177; and insurer s seeking to externalize an insurance risk must 
first attempt  to use the services of locally registered insurance brokers . The circular also 
introduces an additional levy for facultat ive placements outside the country, of 3% of the gross 
premium or USD 200, whichever is greater; plus 20% of the amount of the applicable fronting 
fee/reinsurance commission in excess of 12%.178 
4.116.   The Government now operates a special portal, the Tanzania Impo rts Insurance Portal 
(TIIP), as Tanzania's official import/export insurance marketplace, in order to facilitate the 
changes made in 2017 regarding the requirement for a Tanzanian insurer to insure imports and 
exports.179 The portal works with a number of par tners to automate the process of underwriting 
risks, and offers immediate import/export insurance when needed through the platform once 
payment is received.  
                                                
173 TIRA online information. Viewed at: 
https://www.tira.go.tz/sites/default/files/Insurance%20Regulations%20of%202009.pdf  and 
https://www.tira.go.tz/sites/default/files/Insurance%20A ct%20No%2010%20of%202009.pdf .  
174 Law Reform Commission of Tanzania online information. Viewed at: 
http://www.lrct.go.tz/downlo ad/laws_2017/Miscellaneous -amendment -no.-7-of-2017-clean-copy-final-
Hansard -CHAPA.pdf .  
175 TIRA online information. Viewed at: 
http://www.tira.go.tz/sites/default/files/CIRCULAR%20ON%20REINSURERS%20ACCREDITATION%20%20REL
ATED%20MATTERS%2006122017_V%2010.pdf .  
176 Except under exceptional circumstances, and when inevitable, it must be channelled through a locally 
registered reinsurance company.  
177 Except under exceptional circumstances.  
178 TIRA online information. Viewed at: 
http://www.tira.go.tz/sites/default/files/CIRCULAR%20ON%20REINSURERS%20ACCREDITATION%20%20REL
ATED%20MATTERS%2006122017_V%2010.pdf . 
179 TIIP online information. Viewed at: https://tiip.co.tz .  WT/TPR/S/384 • Tanzania  
 
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  4.117.   The 2015 Regulations on Takaful insurance give structure and provide certain rules on this 
type of insurance.180 Per the Regulations, Takaful insurers must be registered and licensed with 
the TIRA. The Regulations prohibit the mixing of conventional insurers and Takaful insurers; if a 
conventional insurer starts to issue Takaful policies, it has one year to transition fully to Takaful 
business, after which the conventional business will cease. Takaful insurers are required to have a 
shariah supervisory board and a shariah compliance officer.  
4.118.   In 2015, the Government launched the National Insurance Policy, to create an enabling 
environment for the development, promotion and maintenance of an "inclusive, efficient, fair, safe 
and stable insurance sector while at the same time addressing challenges that continue to hinder 
the development of the insurance secto r in Tanzania".181 The Policy notes a number of  shortfalls 
but, in particular, the low uptake of insurance, especially by many subsectors of society in 
Tanzania. Some of the proposed initiatives in the Policy include insuring government assets, 
improving public awareness and capacity building, requirin g compulsory insurance in some 
areas,182 facilitating the establishment of an agricultural insurance fund, and establishing a 
framework for banks to distribute insurance products.  
4.119.   Tanzania has a growing micro -insurance sector that currently represents a very  small 
proportion of the whole insurance market. It is estimated that it covered about 4.5  million people, 
about 18% of the adult population, in 2015, and was supplied by six insurance companies.183 
Micro -insurance is recognized as a significant instrument f or delivering effective and efficient 
insurance , particularly to low -income households.184 In 2015, the main offerings that accounted for 
over 85% of micro -insurance products were life and hospitalization, and embedded funeral 
coverage.185 
4.120.   This insurance subse ctor is currently not regulated in the traditional way by the TIRA but 
operates under guidelines established by the Micro -Insurance Regulations, 2013.186 The 
Regulations provide for certain registrations, reporting and notifications to the Commissioner of 
Insurance of the TIRA. For example, certain conditions must be met in order to register as a 
micro -insurance agent, e.g. the person must be a Tanzanian citizen with a Secondary Education 
Certificate or Certificate of  Proficiency in Insurance, and the types o f micro -insurance products 
offered must be notified. The Regulations also set out rules for underwriting, settlement of claims, 
and procedures for complaints.  
4.4.1.3   Capital markets  
4.121.   Tanzania's capital market, the DSE, has been in existence since the late 1990s, w hen it 
started with the inclusion of several state -owned enterprises (SOEs) that were then privatized. 
Since that time, the capital market has increased slowly but the pace has picked up more recently, 
with a compounded annual growth rate of about 81% duri ng 2012 -16, although it somewhat 
declined thereafter (Table 4.23) .187 The DSE remains the principal exchange, although in 2013 a 
second -tier market, the Enterprise Growth Market (EGM), was launched with lower listing 
requirements, with the aim of providing M SMEs with equity capital.188 As of August 2018, the DSE 
had 28 listed companies with a market capitalization of TZS 22.2 trillion; of these, the majority 
                                                
180 Tanzania Insurance Brokers Association online information. Viewed at: http://tiba.co.tz/wp -
content/downloads/TheInsuranceTakafulRegulations2014.pdf .  
181 Tanzania I nsurance Brokers Association online information. Viewed at: http://tiba.co.tz/wp -
content/downloads/NationalInsurancePolicy2015.pdf .  
182 At present, only certain motor veh icle insurance is compulsory.  
183 FSDT online information. Viewed at: http://www.fsdt.or.tz/wp -content/uploads/2017 /05/FSDT -
Inclusive -Insurance -Focus -Note-Series -Microinsurance -Landscape -2015-.pdf.  
184 TIRA online information. Viewed at: https://www.ti ra.go.tz/content/annual -insurance -market -
performance -report -year-ended -31st-december -2016.  
185 Micro -insurers offer life, hospital, funeral, personal accident, credit life and crop insurances.  
186 TIRA online information. Viewed at : http://www.tira.go.tz/sites/default/files/Micro_Insurance -
Regulations_2013.pdf .  
187 Annual Report and Financial Statements 2016 . DSE online information. Viewed at: 
http://www.dse.co.tz/sites/default/files/dsefiles/ANNUAL%20REPORT%202016%20 -%20Final.pdf .  
188 TZS 200 million paid -up capital requirement. See listing r equirements in Listing Rules for Main 
Investment Market Segment and Enterprise Growth Market Segment . DSE online information. Viewed at: 
https://www.dse.co.tz/sites/default/files/dsefiles/LISTING%20RULES%20FOR%20MIMS%20AND%20EGM_1.p
df.  WT/TPR/S/384 • Tanzania  
 
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  were Tanzanian firms, while a small number  were cross -listings.189 There was a gradual opening of 
Tanzania 's capital markets to foreigners, in particular intra -EAC, during the review period, in part 
driven by the EAC Common Market Protocol.190 
Table 4.23 Overview of capital markets, 2012 -17  
 2012  2013  2014  2015  2016  2017  
DSE 
Listed companies  .. .. .. 21 24 26 
Market capitalization 
(TZS billion)  12,772.79  14,057.92  18,902.16  23,721.49  21,728.57  23,076  
Value of shares traded 
(TZS billion)  44.45  73.00  272.45  879.22  733.66  711 
Value of bonds traded 
(TZS billion)  .. .. .. 459 380 889 
All shares index (DSEI) 
Points  .. 1,582.51  2,172.71  2,726.77  2,481.99  2,396  
Tanzania share index 
(TSI) Points  1,206.99  1,840.11  3,561.62  4,684.09  3,706.15  3,919  
Value of outstanding 
listed bonds (TZS billion)  2,287.31  3,073.59  3,696.15  4,896.85  4,263.67  8,108  
EGM 
Listed companies  n.a. .. .. .. .. 5 
Market capitalization 
(TZS billion)  n.a. .. .. .. .. 120 
.. Not available.  
n.a. Not applicable.  
Source:  Annual Report and Financial Statements 2012 -2016. DSE  online information. Viewed at: 
http://www.dse.co.tz/content/annual -reports .  
4.122.   The main law governing the sector remains the Capital Markets and Securities Act , 1994, 
which applies to both the Main land and Zanzibar. This Act created the Capital Markets and 
Securities Authority (CMSA)  as the main regulatory body for the sector. Since 2003, a number of 
regulations191 have allowed foreigners to acquire shares on the DSE, up to a 60% ceiling, although 
certain other restrictions remain in place on government instruments and initial public offerings 
(IPOs). However, these restrictions were further liberalized in 2014, allowing foreign investors to 
acquire, sell or transf er any securities other than governmen t securities  without a ceiling.192 The 
market for government securities was partially liberalized so that EAC residents could participate 
up to a maximum of 40% of the amounts issued, but EAC resident investors from the same 
country cannot exceed two  thirds of that 40%.  Government securities for investors outside the 
EAC remains prohibited.193 Furthermore, outward investment restrictions were in place, prohibiting 
Tanzanian residents from purchasing, transferring, or selling securities. These have now been 
partially liberalized, allowing for securities to be traded among EAC residents if they are  funded 
exclusively by externally acquired funds .194 
4.123.   Another development during the period was the launch of the demutualization of the DSE 
in 2015, whereby it was transfo rmed and reincorporated  into a public limited company  from a non -
profit, member -owned organi zation. As part of this process, an IPO was issued, raising TZS 35.6 
                                                
189 Firms in a variety of industries are listed, i.e. brewing, tea and coffee, cement, cigarettes, aviation 
and cargo handling, banking, investment, insurance, pub lishing and broadcast media, minin g, oil and gas 
exploration, retail, etc. DSE online information. Viewed at: http://www.dse.co.tz/listed -companies .  
190 USAID online information. Viewed at: 
https://d3n8a8pro7vhmx.cloudfront.net/eatradehub/pages/2998/attachments/original/1485415111/EAC_ -
CMP_RU.pdf?1485415111 .  
191 The Capital  Markets and Securities (Foreign Companies Public Offers Eligibility and Cross Listing 
Requirements) Regulations, 2003, the Capital Markets and Securities (Foreign Investors) Regulations, 2003, 
and the Bank of Tanzania Foreign Exchange (Listed Securities) Regulations, 2003.  
192 Capital Markets and Securities (Foreign Investors) Regulations, 2014. DSE online information. 
Viewed at: http://www.dse.co.tz/sit es/default/files/dsefiles/Foreign%20Investors%20Regulations_0.pdf .  
193 Capital Markets and Securities (Foreign Investors) Regulations, 2014, the Foreign Exchange (Listed 
Securities) (Amendment) Regulations, 2014 (FELSAR), and the Foreign Exchange (Amendment ) Regulations, 
2014 (FEAR).  
194 Foreign Exchange (Amendment) Regulations, 2014 (FEAR).  WT/TPR/S/384 • Tanzania  
 
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  billion.195 DSE shares were then subsequently listed on its own exchange in 2016, and the DSE 
became the third stock exchange in Africa to demutualize. Furthermore, the DSE is a member of 
the East African Securitie s Exchanges Association (EASEA), which has been working towards the 
further integration of exchanges in East Africa. As part of this effort , there is ongoing  work on the 
Capital Markets Infrastructure Project, under the EAC , to allow investors to trade across 
participating bourses.  
4.124.   Tanzania's capital markets are likely to be propelled further by new legislation that has 
come into force in recent years, requiring companies to list on the Exchange in order to improve 
local ownership. In 2016, the Finance Act, 2016  made amendments to th e Electronic and Postal 
Communications Act, 2010 (EPOCA), requiring telecommunications companies to list shares on the 
stock exchange by 1 January 2017 (Section 4.4.2). Pursuant to the Mining Act, 2010 and the 
Mining Regulations, 2017, mining enterprises i n receipt of an SML were required to have 30% of 
their issued and paid -up share capital listed on the DSE by end -August 2017 (Section 4.2.1). A 
similar requirement has been imposed on energy and electricity firms.  
4.125.   Tanzania launched its first commodity exch ange during the period, the Tanzania Mercantile 
Exchange PLC.196 As at August 2018, the exchange was not fully operational. The Exchange was 
established as a public private partnership (PPP), pursuant to the Commodity Exchanges Act, 2015 
and the Commodity Ex changes Regulations, 2016, and is regulated by the CMSA.197 The CMSA 
licenses the entities for the exchange market. There are four categories: commodity broker, 
commodity dealer, commodity trading advisor, and commodity pool operator.198 In order to obtain 
a licence, a company must be a Tanzanian company, or may be a foreign company if additional 
criteria are met that are contained in the Act.199 The Exchange is being set up to initially trade in 
six crops, i.e. cashew nuts, coffee, sesame, rice, sunflower seeds,  and maize, but may add other 
commodities.200  
4.126.   Tanzania has traditionally offered a number of incentives to issuers and investors, in order 
to promote growth of the capital markets. These are tax incentives as contained in the Income Tax 
Act, 2004 (Table 4.2 4). There have been  minimal  changes since 2012.  
Table 4.24 Capital market incentives, 2018  
Incentives for issuers  Incentives for investors  
• Reduced corporation tax, from 30% to 25%, for 
three successive years subsequent to the listing 
of a company that has issued at least 30% of its 
shares to the public  
• Tax deductibility of all IPO costs for the purposes 
of income tax determination. All IPO co sts are 
accepted by the TRA as acceptable expenses used 
in the generation of income and profits, and 
therefore are taken into consideration when 
determining profit for tax purposes  
• Income of the Fidelity Fund is exempt from tax  • Zero capital gain s tax, as opposed to 10% for 
unlisted companies , assuming shares are less 
than 25% of the shareholding  
• Zero stamp duty on transactions executed at the 
DSE, compared to 6% for unlisted companies  
• Withholding tax of 5% on dividend income , as 
opposed to 10% for unlisted companies  
• Income from the Investor Compensation Fund 
(ICF) is exempt from income tax  
• Interest on long -term bonds is exempt from tax  
• Interest on East African Development Bank bonds 
is exempt from tax  
• Certain tax advantages for unit trusts  
Source:  DSE Handbook 2016 . DSE online information. Viewed at: 
http://www.dse.co.tz/sites/default/files/dsefiles/DSE%20HANDBOOK%202016%20NEW.p df and 
http://www.dse.co.tz/content/about -dar-es-salaam -stock-exchange .  
                                                
195 Annual Report and Financial Statements 2016 . DSE online information. Viewed at: 
http://www.dse.co.tz/sites/default/files/dsefiles/ANNUAL%20REPORT%202016%20 -%20Final.pdf . 
196 Tanzania Mercantile Exchange online information. Viewed at: https://www.tmx.co.tz/ .  
197 The shareholders compr ise the Treasury Registrar, the TIB Development Bank, the Public Service 
Pension Fund (PSPF) and the Tanzania Federation of Cooperatives (TFC).  
198 Tanzania Mercantile Exchange online information. Viewed at:  https://www.tmx.co.tz/membership .  
199 Commodity Exchanges Act, 2015, Section 42. CMSA online information. Viewed at: 
http://www.cmsa.go.tz/newupload/Commodity_Exchange.pdf .  
200 TanzaniaInvest online information. Viewed at: 
https://www.tanzaniainvest.com/finance/capitalmarkets/tanzania -capital -markets -report .  WT/TPR/S/384 • Tanzania  
 
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  4.4.2   Telecommunications  
4.127.   Tanzania's telecommunications sector has undergone a number of changes and 
developme nts since the last Review, in part driven by r apid growth in telecom products , significant 
uptake in  smartphone s and mobile broadband technologies , and increased  investment in 
infrastructure . Some of the significant developments for the sector in the last few years include 
implementing a  Converged Licensing Framework (CLF), implementing Analogue Switch Off (ASO) 
to migrate  from terrestrial analogue to digital television broadcasting, installing  a National ICT 
Broadband Backbone  (NICTBB) , improving  telecommu nication networks for rural communities , and 
developing  mobile money services (Section 4.4.1.1). A new ICT policy has been developed, and 
two new acts and many related regulations have also been implemented. Nevertheless, Tanzania 's 
efforts to compel compa nies to list 25% of their shares on the DSE through legislation have 
yielded minimal results, as only one telecommunications company has so far listed its shares 
(Vodacom Tanzania PLC).  
4.128.   The legal framework for telecommunications is comprised of the Tanzani a Communications 
Regulatory Act Act, 2003, and the EPOCA, 2010 and its Regulations, which were reviewed in 2018. 
The legal framework is applicable to both the Mainland and Zanzibar; however, broadcasting 
matters for Zanzibar fall under the jurisdiction of the Zanzibar Broadcasting Commission. The main 
elements of the EPOCA include telecommunication licensing, interconnection, and access; postal 
communications; competitive and anti -competitive practices; enforcement; and offences and 
penalties.201 Tanzania als o has a Universal Communications Service Act, 2006 that establishes a 
Universal Communications Service Access Fund to ensure the availability of communication 
services in rural and under -served areas. It applies to the Mainland and Zanzibar, except with 
respect to broadcasting.202 
4.129.   Tanzania's regulatory environment for telecommunications is through the Tanzania 
Communications Regulatory Authority (TCRA), which was established pursuant to the Tanzania 
Communications Regulatory Act.203 Its main goal is to "enhance  the welfare of Tanzanians through 
an effective and efficient regulatory framework that ensures universal access to communications", 
while regulating Tanzania's electronic communic ations  and postal services, and managing  the 
national frequency spectrum . Its main functions include issuing or cancelling operator licences; 
establishing standards for regulated telecommunication goods and services; regulating tariffs and 
charges; facilitating resolution of disputes; and monitoring performance.204 Pursuant to th e 
changes made under the  CLF, the TCRA issues  four categories of operator licences : Network 
Facilities Providers (NF), Network Service Providers (NS), Application Service Providers (AS) and 
Content Service Providers (CS).205 As at August 2018, there were 23  NF, 14 NS, 81 AS, 154 CS 
(radio), and 28  CS (TV) licensed operators.206 
4.130.   One of the developments during the period was the implementation and enforcement of 
Section 26 of EPOCA on the minimum local shareholding requirement. This required all Tanzanian 
teleco m firms to offer shares to the public  and list them on  the DSE  within three years. The 
respective regulations that were to give effect to this provision were delayed, thus the expected 
2013 implementation was not possible. However, the Finance Act, 2016 ma de certain changes to 
Section 26 of the EPOCA, requiring NF, NS, and AS licence holders to list 25% of their shares 
through public offer, and CS licence holders to maintain at least 51% of their shares owned by 
Tanzanians throughout the life of the license  (but this is not mandatory through listing).207 
Furthermore, the Finance Act, 2017 further amended Section 26, to allow foreigners to buy shares 
of the companies on the DSE, and exempting companies holding an AS license from mandatory 
                                                
201 TCRA online inform ation. Viewed at: https://www.tcra.go.tz/images/documents/policies/epoca.pdf .  
202 TCRA online information. Viewed at: https://www.tcra.go.tz/images/documents/policies/ucsa.pdf .  
203 TCRA online information. Viewed at: 
https://www.tcra.go.tz/images /documents/policies/Tanzania%20Communications%20Regulatory%20Act -
2003.pdf .  
204 TCRA online information. Viewed at: https://www.tcra.go.tz/index.php/about -tcra/tcra -profile .  
205 TCRA onl ine information. Viewed at: https://www.tcra.go.tz/index.php/licensing/licensing -
information/2 -tcra/87 -license -categories .  
206 TCRA online informat ion. Viewed at:  https://www.tcra.go.tz/index.php/licensing/licensed -operators .  
207 TRA online information. Viewed at: http://www.tra.go.tz/images/uploads/statistics/Finance -Act-
2016--2.pdf.  WT/TPR/S/384 • Tanzania  
 
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  listing.208 As a result,  existing telecom companies were supposed to list 25% of their issued and 
paid-up share capital by end -2017 but, as at August 2018, only one company, Vodacom, had done 
so. Others are still undergoing structural arrangement transformation for listing.209 
4.131.   In 2015, Tanzania enacted the Electronic Transactions Act, to give  legal effect and 
recognition to electronic transactions.210 It was important for the expansion of e -Government 
services, for the collection and admissibility of electronic evidence, and for use o f secure electronic 
signatures. The Act also applies to Zanzibar, except with respect to e -Government services. Also, 
in 2015, the Cybercrimes Act  entered into force, which provided for criminal offences committed 
through the use of ICTs.211 The Act, which e ssentially applies to both the Mainland and Zanzibar212, 
has a long list of offences and illegal acts, and also provides for search and seizure. Activities such 
as illegal access, pornography, espionage, computer fraud, cyber bullying, racist or xenophobic 
materials, etc., are all prohibited or punishable under the law.  
4.132.   In March 2018, Tanzania introduced approximately 20 new or revised regulations pursuant 
to the EPOCA (Box 4.4). The EPOCA (Online Content) Regulations were issued and have created 
new rules re gulating content in a wide variety of spheres, including online content hosts, bloggers, 
social media, application service licensees, etc.213 The Regulations also give rather wide powers to 
the TCRA to keep registers of bloggers, online forums, and online ra dio and television, and take 
action against non -compliance. One of the other regulations introduces mobile phone number 
portability.  
4.133.   In May 2016, Tanzania implemented a new ICT Policy, replacing the previous one of 
2003.214 This new Policy's main objective i s to accelerate socio -economic development with the 
potential  to transform Tanzania into an ICT-driven middle -income economy and society .215 The 
Policy outlines 22 specific objectives and the Government's action agenda for their achievement. 
Some of the obje ctives include strengthen ing cooperation and collaboration in regional and 
international ICT development ; having a reliable and sustainable ICT infrastructure; enhancing ICT 
leadership and human capital; improving universal access, to diminish the digital divide; and 
enhanc ing local content in all aspects of ICT value chain s, including  local hosting of electronic 
services . 
4.134.   Tanzania's telecommunications sector has been characterized as competitive and open, 
with a growing market and some of the lowest rates in Africa.216 As at August 2018, seven voice 
operators with two enterprises (Tanzania Telecommunications Corporation217 (state -owned) and 
Zantel (Government -private -owned) ) were operating in both fixed line and mobile 
telecommunications, and the remaining five were operating in mobile telecommunications only 
(Tables 4.25).218 In 2017, the largest market shares were held by Vodacom, Tigo, and Airtel. 
During the review period, telecom services grew from about 28 million subscriptions in 2012 to 
40 million in 2017, with nearly all in the mobile sector, achieving a penetration rate of 78%. Fixed 
line accounted for 127,000, a trend that has been consistently declining throughout the period 
                                                
208 TRA online information. Viewed at: http://www.tra.go.tz/Images/hea ders/THE -FINANCE -ACT-2017-
CHAPA -Final.pdf .  
209 Information provided by the authorities.  
210 e-Government Agency online information. Viewed at: 
http://www.ega.go.tz/uploads/guidelines/4fd7097d1e6199c195def78c66c72149.pdf .  
211 TCRA online information. Viewed at: 
https://www.tcra.go.tz/images/documents/policies/ TheCyberCrimeAct2015.pdf .  
212 Except for the compounding of offences.  
213 Also includes I nternet cafes;  online forums;  online radio or television;  subscribers and users of online 
content; and  any other related online content . 
214 National Information and Communications Technology Policy , e-Gover nment Agency online 
information. V iewed at:  http://www.ega.go.tz/uploads/publications/6014e8602e8d1f61d64798276df47b60.p df.  
215 National ICT Policy 2016 . TCRA online information. Viewed at: 
https://www.tcra.go.tz/images/documents/policies/NATIONAL_ICT_POLICY_2016_2.pdf . 
216 Telecoms  & IT, Oxford Business Group online information. Viewed at: 
https://oxfordbusinessgroup.com/tanzania -2018/telecoms -it.  
217 Tanzania Telecommunications Co mpany Limited  (TTCL) was renat ionalized during the period, see 
Section 3.3.5.2.  
218 In addition to the Tanzania Telecommunications Company Limited (TTCL) and Zanzibar 
Telecommunications Limited (Zantel), the other operators were Airtel, Halotel, Smart, Tigo, and Vodacom. 
Quarterly Commun ications Statistics Report . TCRA online information. Viewed at: 
https://www.tcra.go.tz/index.php/quarterly -telecommunications -statistics#2017 -quarterly -statistics -reports . WT/TPR/S/384 • Tanzania  
 
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  (Table 4.25). Internet services has achieved higher growth rates than telecom, w ith the number of 
users increasing three -fold during the period, mostly through mobile wireless; however, its 
penetration is only 45%.  
Table 4.25 Telecommunications operators and operations, Mainland, 2012 -17  
 2012  2013  2014  2015  2016  2017  
Telecom services (subscriptions)  
Fixed  176,367  164,999  142,950  142,819  129,597  127,094  
Mobile  27,450,789  27,442,823  34,108,851  39,665,600  40,044,186  39,953,860  
 Total 27,627,156  27,607,822  34,251,801  39,808,419  40,173,783  40,080,954  
Penetration %  61 61 71 79 80 78 
Internet services 
(estimated 
users)        
Fixed wireless  777,461  1,056,940  1,913,082  662,882  1,218,693  3,468,188  
Mobile wireless  6,031,323  7,493,823  11,320,031  16,280,943  18,014,358  19,006,223  
Fixed wired  712,095  761,508  984,198  319,698  629,474  520,698  
 Total  7,520,878  9,312,272  14,217,311  17,263,523  19,862,525  22,995,109  
Penetration %  17 21 29 34 40 45 
Type of operator  
Private  
Fixed -line 
operators  .. .. .. .. 0 .. 
Mobile operators  .. .. .. .. 3 .. 
Data operators and 
Internet service 
providers  .. .. .. .. 27 .. 
Television stations  .. .. .. .. 24 .. 
Radio stations  .. .. .. .. 52 .. 
Public  
Fixed -line 
operators  .. .. .. .. 2 .. 
Mobile operators  .. .. .. .. 1 .. 
Data operators and 
Internet service 
providers  .. .. .. .. 12 .. 
Television stations  .. .. .. .. 5 .. 
Radio stations  .. .. .. .. 2 .. 
Public and private  
Fixed -line 
operators  2 2 2 2 2 2 
Mobile operators  7 8 6 7 8 8 
Data operators and 
Internet service 
providers  84 91 .. 83 39 69 
Television stations  26 30 27 30 29 27 
Radio stations  86 85 83 122 54 .. 
.. Not available.  
Source:  Quarterly Communications Statistics Report . TCRA online information. Viewed at: 
https://www.tcra.go.tz/index.php/quarterly -telecommunications -statistics#2017 -quarterly -statistics -
reports . Statistical Abstract 2 016. Bureau of Statistics online information. Viewed at: 
https://nbs.go.tz/nbs/takwimu/Abstracts/Statistical_Abstract_2016.pdf , and information provided by 
the authoritie s. 
Box 4.4 New telecommunications regulations, 2018  
The Electronic and Postal Communications 
(Licensing) Regulations, 2018  The Electronic and Postal Communications (Quality of 
Service) Regulations, 2018  
The Electronic and Postal Communications ( Tariffs) 
Regulations, 2018  The Electronic and Postal Communications (Mobile 
Number Portability) Regulations, 2018  
The Electronic and Postal Communications (Access, 
Co-Location and Infrastructure Sharing) Regulations, 
2018 The Electronic and Postal Communications (Postal) 
Regulations, 2018  
The Electronic and Postal Communications 
(Accounting Separation) Regulations, 2018  The Electronic and Postal Communications (Electronic 
Communications Equipment Standards) Regulations, 
2018  
The Electronic and Postal Communications 
(Competition) Regulations, 2018  The Electronic and Postal Communications 
(Telecommunications Traffic Moni toring System) 
Regulations, 2018  WT/TPR/S/384 • Tanzania  
 
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  The Electronic and Postal Communications 
(Consumer Protection) Regulations, 2018  The Electronic and Postal Communications (Central 
Equipment Identification Registers) Regulations, 2018  
The Electronic and Postal Communica tions (Online 
Content) Regulations, 2018  The Electronic and Postal Communications (Digital 
and Other Broadcasting Networks) Regulations, 201 8 
The Electronic and Postal Communications (Radio and 
Television) Regulations, 2018  The Electronic and Postal Com munications (Computer 
Emergency Response Team) Regulations, 2018  
The Electronic and Postal Communications 
(Interconnection) Regulations, 2018  The Electronic and Postal Communications (Electronic 
Communication Numbering and Addressing) 
Regulations, 2018  
The Electronic and Postal Communications (Value 
Added Services) Regulations, 2018  The Electronic and Postal Communications (Radio 
Communications and Frequency Spectrum) 
Regulations, 2018  
The Electronic and Postal Communications (SIM 
CARD Registration) Regulations, 2018   
Source:  TCRA  online information. Viewed at:  https://www.tcra.go.tz/index.php/regulations .  
4.4.3   Tourism  
4.135.   Tanzania's tourism sector is its most important services sector, and is the largest foreign 
exchange earner for the country. In 2016, tourism's contribution to GDP was about 17%. Tanzania 
has a number of natural and cultural tourist attractions, including 16 national parks, 28  game 
reserves, 42 game controlled areas, and 7 World H eritage sites. It ranked 91st in the 2017 Travel 
& Tourism Competitiveness Report, with an improvement in ranking of 2 since 2015.219 While 
noting that Tanzania has significant untapped potential, the Report states that infrastructure 
remains underdeveloped,  rankings were particularly low for hotel reception capacity, and the 
business environment is slow and costly. Improvements were seen in air and ground transport, as 
well as in health and hygiene conditions.  
4.4.3.1   Overview  
4.136.   The tourism sector continued its growth  during the period. Zanzibar achieved higher rates 
of growth, with international visitor arrivals and visitor receipts more than doubling during the 
review period (Tables 4.26 and 4.27), even though the sector in Zanzibar is about one quarter of 
that of th e Mainland. The major type of tourism in Tanzania is, by far, leisure and holidays; 
visitors' main tourism activity on the Mainland was wildlife, while for Zanzibar it was beaches.220 
According to the authorities, while conference tourism remains small, they  foresee that this will be 
a new area of growth for the sector in the future. In recent years, the largest number of tourist 
arrivals have come from  the United Kingdom, Kenya , India, and the United States, with a 
significant increase in tourists coming fro m Kenya.  
Table 4.26 Overview of tourism, Mainland, 2012 -17 
Description  Unit 2012  2013  2014  2015  2016  2017  
Tourist arrivals  Number  1,077,058  1,095,884  1,140,156  1,137,182  1,284,279  1,327,143  
Tourists in hotels  Number  974,448  1,021,766  1,005,058  1,033,555  1,155,851  1,163,752  
Tourist receipts  TZS billion  1,712.75  1,853.28  2,006.32  1,901.94  2,131.57  2,258.96  
Average days of 
stay in hotels  Days  10  10  10  10  9  10 
Average 
expenditure per 
tourist per day in 
USD  Package 
tours  384  372  277  305  290  410 
Non- 
package 
tours 230  201  117  141  131  139 
                                                
219 World Economic Forum online information. Viewed at: 
http://www3.weforum.org/docs/WEF_TTCR_2017_web_0401.pdf .  
220 The 2016 International Vis itors' Exit Survey Report . Bureau of Statistics online information. Viewed 
at: http://www.nbs.go.tz/nbs/takwimu/trade/The2016_International%20_ Visitors'_Exit_Survey_Report.pdf .  WT/TPR/S/384 • Tanzania  
 
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  Description  Unit 2012  2013  2014  2015  2016  2017  
Tourists in 
national parks  Number  .. 1,036,322  1,005,018  930,205  991,593  1,028,564  
Tourist hotels  Number  .. .. .. .. 174 293 
.. Not available.  
Source:  The 2017 Tourism Statistical Bulletin . Ministry of Natural Resources and Tourism. Statistical Abstract 
2017. Bureau of Statistics online information. Viewed at: 
https://nbs.go.tz/nbs/takwimu/Abstracts/Statistical_Abstract_2017.pdf . 
Table 4.27 Overview of tourism, Zanzibar, 2012 -17  
 2012  2013  2014  2015  2016  2017  
International visitor 
arrivals  169,223  181,301  311,891  294,243  376,242  433,474  
Tourism earnings ( USD 
million)  175.4  210.5  269.3  293.5  383 489 
Number of hotels/guest 
houses  .. 378 406 472 452 473 
 - Five stars  .. 26 26 17 17 19 
 - Four stars  .. 12 12 9 9 10 
 - Three stars  .. 26 26 43 43 43 
 - Two stars  .. 18 18 6 6 7 
 - One star  .. 61 65 0 47 55 
 - AA (upper guest house)  .. 41 42 121 86 87 
 - A (lower guest house)  .. 194 217 276 244 252 
Number of newly 
registered hotels/guest 
houses  .. .. .. .. .. 37 
 -Number of rooms  .. .. .. .. .. 351 
 -Number of beds  .. .. .. .. .. 645 
.. Not available.  
Source:  Zanzibar Commission for Tourism and Department of Immigration Zanzibar.  
4.4.3.2   Framework and policy  
4.137.   Tourism is a non -Union matter;  thus policies and laws differ for the Mainland and Zanzibar. 
There have been no significant changes in the tourism laws or regulations during the review 
period. The sector has faced an increase in taxation in recent years, bo th on the Mainland and in 
Zanzibar, which is expected to increase revenues, and changes in the fee structure for certain 
licences. On the Mainland, changes introduced by the Finance Act, 2016, made effective as of 
1 July 2016, charge VAT on tourism service s that were previously exempt.221 A VAT rate of 18% is 
charged on tourism services that include: tourist guiding, game driving, water safaris, animal or 
bird watching, park fees, and ground transport.222 Also, in January 2013, the Mainland began 
charging a Tou rism Development Levy (TDL), in order to assist in financing activities related to 
tourism development.223 The Levy is comprised of 3% of the National Parks Authority's gross 
revenue; 3% of the Ngorongoro Conservation Area's gross revenue; fees for grading o r re-grading 
accommodation facilities; and a levy on "bed nights" to be collected by every tourism 
accommodation facility. In Zanzibar, the Infrastructure Tax Act, 2015 created a number of new 
taxes that focused, in particular, on the tourist sector (Secti on 2.4.5). In January 2018, the 
Ministry of Natural Resources and Tourism made changes to the licensing structure and associated 
fees for tour operators, in order to make it less costly for local small companies to operate, while 
at the same time increasin g the fee for large foreign operators.224 Despite the significant increase 
in taxation in 2016, tourism remained strong that year, and grew in 2017.  
                                                
221 TRA online information. Viewed at: https://www.tra.go.tz/images/uploads/statistics/Finance -Act-
2016--2.pdf.  
222 TRA online information. Viewed at: https://www.tra.go.tz/IMAGES/random/VAT -ON-TOURISM -
SERVICES.pdf .  
223 The Tourism (Tourism Development Levy) Regulations, 2012. TRA online informa tion. Viewed at: 
http://tra.go.tz/tax%2520laws/GN%2520No%2520218 .  
224 For foreign tour operators with a fleet size greater than 30 vehicles, the fee was increased from 
USD 5,000 to USD 7,500 pe r year and, if over 50 vehicles, it was further increased to USD 10,000. For local WT/TPR/S/384 • Tanzania  
 
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  4.138.   The Government has been working to improve or enlarge the tourist infrastructure in a 
number of ways in rece nt years, by increasing the fleet of Air Tanzania and adding new routes, 
encouraging foreign investment in building new tourist hotels, and promoting the expansion of new 
air connections and direct flights from major tourist markets. The sector also enjoys  some import 
duty relief from the EAC CET, through provisions of the EACCMA on specially designed vehicles for 
tourist transportation (see main report).  
4.139.   The Tourism Act, 2008 and its regulations provide for the establishment of the Tourism 
Board; registration and grading of tourism facilities and activities; licensing of tourism facilities, 
activities, and operators; registration of tour guides; and for of fences and penalties. The Act 
requires all tourism business es to be registered and , thereafter , licensed . The Tourism (Fees and 
Charges) Regulations, 2014 are the main regulations providing the grading scheme and setting the 
fee structure for the tourism i ndustry. As set out in the Act and the Regulations, certain tourism 
services are reserved for Tanzanian citizens/majority -owned companies only; these include 
mountain climbing or trekking, car rental or hire, travel agents, handling agents, tour guiding, a nd 
the operation of campsites.225  
4.140.   Similar to that of the Mainland, Zanzibar 's Tourism Act, No. 6 of 2009 sets out  licensing 
and conditions for tourism business operators, creates the Zanzibar Commission for Tourism, and 
provides for offences and penalties.226 The Act provides that tour operation and shuttle boat 
businesses are reserved exclusively for Zanzibaris, but tour guiding is not restricted. In addition, a 
number of other services, such as entertainment and cultural performances, tourist shops and 
boutiques, Internet services, porters, waiters, and laundry, are reserved for Tanzanian citizens. 
Foreign registered tourist vessels may operate, subject to the necessary authorizations. Zanzibar's 
Tourism Regulations, 2009 set out the licensing requirements an d classification systems for 
different types of accommodation and restaurants.227  
4.141.   Pursuant to the EAC's  efforts to develop a regional tourism marketing strategy, Tanzania 
embarked on the grading and classification of tourist accommodation establishments in 2017, to 
help create a regional single tourist destination and improve tourism services and hospitalit y 
offerings. However, later in 2017, the Minister of Natural Resources and Tourism cancelled the 
exercise, as it was reported to have been improperly carried out, and there were complaints about 
high fees.228 The current grading system in Tanzania is the EAC  classification system for tourist 
establishments.  
4.142.   The main tourism policy for the Mainland is from 1999, and the Tourism Master Plan, 
Strategies and Actions is from 2002.229 According to the authorities, these remain the relevant 
policy documents for the se ctor, although they were working on a new policy in 2018. Zanzibar 
also has a Tourism Policy and it remains the main policy document, although a Strategic Plan was 
put in place for the period 2015 -20, which now sets out eight specific objectives to be met by 
2020.230 Some of these include increasing tourist arrivals and spending to specific targets by 2020, 
implementing appropriate policies and the legal framework, and enhancing the safety and security 
                                                                                                                                                  
operators, the fee was reduced for small operations with 1 - 3 vehicles, to USD 500 from USD 2,000; it remains 
the same for operators with 4 -10 vehicles, at USD 2,000; and in creases to USD 3,000 for those with 11 -50 
vehicles, and to USD 5,000 for those with more than 51 vehicles. Foreign tour operators with less than 
10 vehicles are prohibited.  
225 It is also noted that when non -citizens may obtain licences, the fees are typica lly more than double 
those for citizens.  
226 Zanzibar Commission for Tourism online information. Viewed at:  
http://www.zanzibartourism.go.tz/images/joomla rt/documents/Zanzibar_Tourism_Act2009.pdf .  
227 The classification system is the same as the Mainland and among EAC partners. Zanzibar 
Commission for Tourism online information. Viewed at: 
http://www.zanzibartourism.go.tz/images/joomlart/documents/Tourism_Regulations.pdf .  
228 Eturbonews online information. Viewed at: www.eturbonews.com/170387/tanzania -government .  
229 Ministry of Natural Resources and Tourism online information. Viewed at: 
http://www.mnrt.go.tz/resources/view/tanzania -national -tourism -policy -1999 and Tzonline online information. 
Viewed at: http://www.tzonline.org/pdf/tourismmasterplan.pdf .  
230 Zanzibar Commission for Tourism online information. Viewed at: 
http://www.zanzibartourism.go.tz/images/joomlart/documents/STRATEGIC_PLAN_2015.pdf .  WT/TPR/S/384 • Tanzania  
 
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  of tourists. Zanzibar also has a Coastal and Marine Touri sm Management Plan from 2012, that 
promotes sustainable tourism in Zanzibar's marine environment.231 
4.4.4   Transport  
4.143.   Transport remains an important sector for Tanzanian development and for the support of 
other key sectors of the economy, in particular tourism, ind ustry, and trade. Roads are the 
mainstay of the transport sector. But Tanzania also has a well -developed maritime or port 
capacity, and this is expected to continue to improve with added investment; it is becoming  a hub 
or corridor for many of its landlock ed neighbours. Tanzania's transport sector continued growing 
during the review period, and has increased capacity and improved infrastructure. Recent policy 
developments have put an emphasis on reviving the rail network. There has also been increased 
investment in the national air carrier and the promotion of new air connections. As at 2017, 
Tanzania had 152,600  km of roads;232 3,676  km of railway lines; 3,937 km -tonnes of cargo 
capacity on its national air carrier; and four international ports (Table 4.28). With the exception of 
the air subsector, most of Tanzania's transport sector is regulated by the Surface and Marine 
Transport Regulatory Authority (SUMATRA)  (Section 4.2.2) . 
4.144.   The rail subsector has seen several developments in recent years. There is renewed  
interest in upgrading lines that are about 100 years old, establishing interconnections in east and 
southern Africa, and encouraging foreign investment in the sector. According to the authorities, 
the countries of East Africa have decided, through the Eas t African Railway Master Plan, to move 
to standard gauge for the construction of new lines and the rehabilitation of existing ones.  At 
present, the Tanzanian lines  (Tanzania Railways Corporation)  are owned by the Reli Assets Holding 
Company (RAHCO) , which has contracted with foreign bidders with a view to construct ing a 300 -
km railway line , to connect with other East African railways. It is expected to be completed by 
2020.   
4.145.   Tanzania has a bilateral agreement with Zambia regarding the Tanzania -Zambia Railway  
(TAZARA). The ownership and operation of the Railway is shared between the two countries. As 
the Railway is Cape gauge, it allows for interconnection with other southern African networks, 
including South Africa, Botswana, Mozambique, Zimbabwe, etc.  but not with the standard gauge 
being constructed within East Africa. In 2016, plans were launched to extend the line to Bagamoyo 
Port, with the help of foreign investors but, to date, it has not received formal approval.233 As part 
of the need to upgrade, TAZARA has been seeking foreign investors to invest in re -building its 
network.  
4.146.   The air services subsector has grown significantly in recent years, as air travel, propelled 
by tourism, has increased. The sector is comprised of four international airports a nd over 100 
smaller airports, of which about half are owned by the Government. The sector is regulated by the 
Tanzania Civil Aviation Authority (TCAA) for air traffic, while the Tanzania Airports Authority (TAA) 
operate s, manage s, and develop s airports and  airstrips the country.234 As at 2014 -15, Tanzania 
had 51 bilateral air service agreements in place, 40 licensed air operators, and 55 ground handling 
services licence holders.235 Air Tanzania, the state -owned national carrier , has been increasing 
capacity dur ing the period but is not a dominant player in the air sector.  The Civil Aviation Act, 
                                                
231 Zanzibar Commission for Tou rism online information. Viewed at: 
http://www.zanzibartourism.go.tz/images/joomlart/documents/Zanzibar_Tourism_Managment_Plan_2012.pdf .  
232 Includes national, regional, and local roads.  
233 Lusakatimes online information. Viewed at: https://www.lusakatimes.com/2018/07/17/zambia -and-
tanzan ia-seek-private -investors -in-tazara/ .  
234 Approximately 60 of the airports and airstrips are under the purview of the TAA, while the rest are 
privately -owned and -operated.  
235 TCAA online information. Viewed at: 
http://www.tcaa.go.tz/files/Economic%20Regulation/Bilateral%20Air%20Services%20Agreements/BASA%20st
atus%20by%2030%20June%202014.pdf , 
http://www.tcaa.go.tz/files/Economic%20Regulation/Licensed%20Air%20Operators/LICENSED%20AIR%20OP
ERATORS.pdf , and 
http://www.tcaa.go.tz/files/Economic%20Regulation/Licensed%20Ground%20Handling%20Companies/GRO UN
D%20HANDLING%20SERVICES%20LICENCE%20HOLDERS%20AS%20OF%2025nd%20DECEMBER%202015%
20(2).docx .  WT/TPR/S/384 • Tanzania  
 
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  2006 remains the main legislation governing the sector.236 It was amended twice during the review 
period, in 2013 and in 2016, to make minor changes.237 
4.147.   Tanzania's roads are  the backbone of its transport infrastructure, transporting over 90% of 
passengers and 75% of freight traffic.238 The responsibility for roads in the Mainland is shared 
between the Tanzania National Roads Agency (TANROADS) for trunk and regional roads, and l ocal 
government authorities for district, urban and feeder roads . Pursuant to the Implementation 
Strategy of the Transport Policy of 2011 to 2025, an increase in  the local roads program me is 
expected to improve roads and provide greater access to agricultu ral areas and areas with 
economic potential. There has been increasing capacity and improvements of roads during the 
review period, a lot of which was supported by projects of the World Bank and the African 
Development Bank.  
4.148.   In 2016, pursuant to a Governm ent Directive , road transport and transit along the central 
corridor was improved , with less time spent at weighbridges. The Directive required only a 
maximum of three  stops at weighbridges , compared to eight previously, thus improving transport 
times.  Tanzania is a member of the Central Corridor Transit Transport Facilitation Agency 
(CCTTFA)  with five neighbouring countries239, that aims to assist in transit trade to the landlocked 
countries. As part of this initiative, the countries are working towards constructing more one -stop 
border posts (OSBPs ), to further reduce the number of checks and transit times. At present, the 
transit time from Dar es Salaam port to the exit borders has been reduced to three days, from five 
in 2014.240  
4.149.   Tanzania has four main international sea ports, at Dar es Salaam, Mtwara, Tanga, and 
Zanzibar. A new port is planned at Bagamoyo but its development was still under discussion and 
negotiation as at mid -2018.241 The ports continued to handle an increasing amount of ships and 
cargo during the review period, with the exception of Tanga port, which has seen some decline 
(Table 4.28).  This decline was due to less wet cargo , due to size restrictions , which means these 
commodities are being moved to Dar es Salaam port.  Not only do the por ts handle the persons 
and cargo for Tanzania but also for many of its landlocked neighbours. Tanzania's ports are under 
the authority of the Tanzania Ports Authority, which is a government parastatal, responsible for 
regulating and licensing port and marin e services and facilities. Since 2011, pursuant to its 
transport policy, Tanzania has target ed a 50% expansion of lake and seaport handling capacity by 
2020. In 2017, a bid was launched for the expansion of Dar es Salaam port, and expansion 
activities were  also planned for Mtwara port. Through TradeMark East Africa (TMEA), an initiative 
of the World Bank and other development agencies, Tanzania is involved in a project to improve 
physical access to markets through modernizing the Dar es Salaam Port.  
4.150.   In a r elated development, Tanzania passed the Tanzania Shipping Agencies Act, 2017 that, 
inter alia , establishes the Tanzania Shipping Agencies Corporation (TASAC), that will take over 
certain regulation of marine transport activities for the Mainland from SUMAT RA. The TASAC will 
also regulate marine transport services and licence shipping agents. The Act specifies that only 
Tanzanian citizens are allowed to be licensed as shipping agents. SUMATRA will retain its 
regulatory role in inland, or non -marine waters. A s at August 2018, the Act and the TASAC were 
not fully  operational.   
                                                
236 TCAA online information. Viewed at: 
http://www.tcaa. go.tz/files/The%20Tanzania%20Civil%20Avitation%20Act%20(Consolidated)_1.pdf .  
237 TCAA online information. Viewed at: 
http://www.tcaa.go.tz/files/W ritten%20Laws%20Miscellaneous%20Amendments%20No%203Act,2013_1.pdf  
and http://www.tcaa.go.tz/files/The%20Written%20Laws%20Miscellaneous%20A mendments% 
20No.3Act,2016.pdf  
238 TanzaniaInvest online information. Viewed at: https://www.tanzaniainvest.com/transport .  
239 Burundi, Democratic Republic of the Congo, Rwanda, and Uganda.  
240 CCTTFA onli ne information. Viewed at: http://centralcorridor -ttfa.org/about -us/achievements/ .  
241 Tanzania also has a number of inland lake ports.  WT/TPR/S/384 • Tanzania  
 
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  Table 4.28 Transport statistics, Mainland, 2012 -16  
Item  Unit  2012  2013   2014  2015  2016  
 RAILWAY  
 Tanzania Railways Limited (TRL)  
Railway length  km 2,707  2,707   2,707  2,707  2,707  
Transportation         
Passengers  '000 339 373  170 196.4  1,707  
Freight  '000 tonnes  154 185  127 282.6  102 
 Tanzania Zambia Railway (TAZARA)  
Railway lengtha km 970 970  1,860 1,860 1,860  
Transportation         
Passengers  '000 678 654  287 327 440 
Freight  '000 tonnes  259 245  33 81 96 
 SHIPPING  
 Dar es Salaam port 
Total number of 
ships Number  1,600  742  1,426  4,028  1,600  
Net registered 
capacity  '000 tonnes  24,496  13,359   23,278  24,506  31,212  
Total passengers  '000 374,530  347  1,000  1,023  1,748  
Total cargo handled  '000 dwt  10,122  5,547   9,082  9,369  10,814  
 Tanga port  
Total number of 
ships Number  232 92  64 63 87 
Net registered 
capacity  '000 tonnes  1,378  700  990 620 945 
Total passengers  '000 2,865  0  0 0 0 
Total cargo handled  '000 dwt  608 271  536 475 500 
 Mtwara port  
Total number of 
ships Number  498 339  428 166 113 
Net registered 
capacity  '000 tonnes  1,557  1,245   1,343  475 778 
Total passengers  '000 0 0  0 0 0 
Total cargo handled  '000 dwt  178 144  248 125 379 
 Zanzibar port  
Trips entry/exit Number  4,992  4,083   9,414  7,812  7,227  
Passengers  '000  2,086  2,862   2,997  2,289  2,461  
Cargo  Tonnes  170,140  196,933   221,262  370,738  402,091  
Container s TEUs 4,992  4,083   9,414  7,812  7,227  
 AIR 
 Air Tanzania Corporation (ATC)  
Tonne -km available   1,932  6,154   3,052  60,042  3,937  
Seats -km available   15,131  54,665   3,680  21,693  37,877  
 ROADS  
Trunk roads         
Paved  Km .. 5,823   5,953  6,390  6,274  
Unpaved  Km .. 4,459   4,054  3,740  3,600  
Sub total  Km .. 10,282   10,007  10,130  9,874  
Regional roads         
Paved  Km .. 831  845 1,012  1,080  
Unpaved  Km .. 20,080   20,644  19,450  20,416  
Sub total  Km .. 20,911   21,489  20,462  21,496  
Total Km .. 31,193   31,496  30,592  31,370  
.. Not available.  
a Includes total length, of which not all is in Tanzania.  
Source:  Tanzania Railway Corporation (TRC); Tanzania Zambia Railway Authority (TAZARA); Tanzania Ports 
Authority; Air Tanzania Corporation Ltd. (ATCL); and TANROADS. Statistical Abstract 2016. Bureau 
of Statistics online information. Viewed at: 
https://nbs.go.tz/nbs/takwimu/Abstracts/Statistical_Abstract_2016.pdf . Zanzibar Port Corporation.  
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  5  APPENDIX TAB LES 
Table A1. 1 Merchandise domestic exports by destination, 2012 -17 
  2012  2013  2014  2015  2016  2017  
Total domestic exports  
(USD million)  5,547.2  5,174.7  5,732.0  5,854.2  4,763.6  4,184.9  
 % of total  
Americas  1.8 1.5 2.9 2.4 1.5 1.7 
 United States  1.3 1.2 2.5 0.9 1.2 1.5 
 Other America  0.5 0.3 0.3 1.6 0.3 0.2 
Europe  28.6 18.1 14.0 13.3 29.6 17.5 
 EU(28)  13.8 10.0 11.2 10.6 13.3 11.0 
  Belgium  2.8 1.7 1.7 2.5 6.0 4.6 
  Netherlands  2.2 1.3 0.9 1.3 1.3 1.7 
  Germany  5.3 3.1 3.9 3.9 2.4 1.2 
  Italy 0.9 1.1 0.9 0.6 0.9 0.9 
 EFTA 14.8 8.0 2.8 2.7 16.2 6.3 
  Switzerland  14.4 7.9 2.6 2.6 16.2 6.3 
 Other Europe  0.0 0.1 0.0 0.1 0.1 0.2 
Commonwealth of I ndependent 
States (CIS)  0.2 0.2 0.2 0.2 0.3 0.3 
Africa  39.1 48.9 38.2 39.3 34.8 37.3 
  South Africa  17.7 14.8 12.1 11.5 13.3 16.7 
  Kenya  6.3 16.7 7.8 13.6 6.6 7.0 
  Democratic Republic of the 
Congo  3.4 4.8 4.9 3.4 6.2 3.7 
  Comoros  0.0 0.0 0.0 3.2 3.6 2.1 
  Malawi  1.9 0.9 0.7 1.0 0.6 1.7 
  Rwanda  1.9 2.2 0.6 0.7 0.1 1.4 
  Burundi  1.0 1.3 0.8 0.7 1.1 1.2 
  Zambia  1.5 1.9 2.4 0.8 0.7 1.1 
  Uganda  1.9 1.5 1.3 0.9 1.2 0.7 
Middle East  2.4 2.4 2.1 7.6 2.1 3.2 
  United Arab Emirates  1.7 1.7 1.5 2.7 1.3 2.1 
Asia 27.9 28.9 42.7 37.2 31.8 40.1 
 China  9.5 6.0 12.0 9.6 7.5 3.4 
 Japan  5.4 4.3 4.3 3.9 2.9 1.8 
 Other Asia  13.1 18.6 26.4 23.6 21.4 34.9 
  India 8.7 14.5 22.0 19.6 14.8 23.5 
  Viet Nam  0.5 0.6 1.2 1.2 3.1 7.5 
  Hong Kong, China  0.4 0.6 0.6 0.6 0.6 1.0 
  Pakistan  0.6 0.2 0.3 0.3 0.3 0.7 
  Korea, Republic of  0.3 0.1 0.1 0.3 0.8 0.6 
Other  0.0 0.0 0.0 0.0 0.0 0.0 
Memo:        
EACa 11.1 21.6 10.5 15.8 9.1 10.4 
a Including all EAC WTO Members.  
Source:  WTO Secretariat's calculations, based on data provided by the authorities.  
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  Table A1. 2 Merchandise domestic exports by group of products, 2012 -17 
  2012  2013  2014  2015  2016  2017  
Total domestic exports ( USD million)  5,547.2  5,174.7  5,732.0  5,854.2  4,763.6  4,184.9  
 % of total  
Total primary products  49.6 40.6 62.3 55.8 48.7 47.2 
Agriculture  32.1 29.2 47.2 43.9 40.4 43.7 
Food 26.4 25.3 44.4 40.6 36.9 39.9 
0577 - Edible nuts, fresh or dried, 
whether or not shelled or peeled  3.0 3.7 7.0 4.3 7.4 13.1 
1212 - Tobacco, wholly or partly 
stemmed/stripped  3.3 1.8 3.2 3.6 7.5 4.5 
0711 - Coffee, not roasted; coffee 
husks and skins  3.3 3.1 2.1 2.6 3.2 3.0 
0542 - Leguminous vegetables, dried, 
shelled, whether or not skinned or split  1.8 1.7 3.1 4.5 3.4 2.2 
0345 - Fish fillets, fresh or chilled, and 
other fish meat  1.1 1.4 1.4 1.8 1.7 2.0 
2225 - Sesame (Sesamum) seeds  1.4 2.4 5.7 2.2 2.7 1.8 
0561 - Vegetables, dried, whole, cut, 
sliced, broken or in powder, but not 
further prepared  0.0 0.1 0.1 1.5 0.1 1.6 
0344 - Fish fillets, frozen  1.5 0.8 1.2 0.7 0.7 1.4 
0461 - Flour of wheat or of meslin  0.8 0.7 0.3 0.3 0.2 1.3 
0011 - Bovine animals, live  0.0 0.0 0.0 0.1 0.0 1.3 
0741 - Tea, whether or not flavoured  1.0 1.1 0.8 0.8 0.9 1.2 
0752 - Spices (except pepper and 
pimento)  0.7 0.8 0.5 0.4 0.2 0.7 
Agricultural raw material  5.7 4.0 2.8 3.4 3.5 3.8 
2690 - Worn clothing and other worn 
textile articles; rags  0.1 0.0 0.0 0.0 0.6 0.7 
Mining  17.5 11.4 15.0 11.9 8.3 3.6 
Ores and other minerals  16.1 8.5 13.1 9.5 7.2 2.1 
2891 - Precious metal ores and 
concentrates  7.6 5.8 9.9 8.0 6.8 1.5 
Non-ferrous metals  0.2 0.2 0.3 0.2 0.2 0.4 
Fuels 1.3 2.8 1.7 2.2 0.9 1.1 
Manufactures  16.8 29.4 14.5 19.7 16.4 15.9 
Iron and steel  0.9 1.0 0.5 0.3 0.2 0.6 
Chemicals  2.8 2.4 2.5 1.9 2.2 3.6 
5541 - Soap; organic surface -active 
products and preparations for use as 
soap 0.4 0.4 0.3 0.3 0.3 1.3 
 Other semi -manufactures  4.2 4.5 3.2 3.9 8.2 4.9 
6672 - Diamonds (other than sorted 
industrial diamonds)  0.0 0.0 0.0 0.0 0.6 1.5 
6414 - Kraft paper and paperboard, 
uncoated, n.e.s., in rolls or sheets  0.3 0.5 0.4 0.4 0.5 0.7 
Machinery and transport equipment  4.9 17.3 2.8 6.9 1.1 0.9 
Power generating machines  0.3 0.5 0.1 0.1 0.1 0.0 
Other non -electrical machinery  2.5 13.2 1.0 0.3 0.3 0.4 
Agricultural machinery and tractors  0.1 0.5 0.0 0.0 0.0 0.0 
Office machines & telecommunication 
equipment  0.2 0.2 0.4 6.1 0.2 0.1 
Other electrical machines  0.4 0.4 0.1 0.4 0.1 0.1 
Automotive products  0.2 0.6 0.3 0.1 0.1 0.1 
Other transport equipment  1.3 2.4 0.7 0.0 0.2 0.2 
Textiles  1.9 2.0 3.2 4.5 1.7 2.9 
6585 - Curtains and other furnishing 
articles, n.e.s., of textile materials  1.0 1.0 1.2 0.5 0.3 0.7 
6575 - Twine, cordage, ropes and 
cables and manufactures thereof  0.2 0.2 1.2 3.0 0.3 0.6 
Clothing  0.2 0.3 0.4 0.4 1.0 1.4 
Other consumer goods  1.8 1.8 2.0 1.7 1.9 1.6 
Other  33.6 30.0 23.2 24.4 34.9 36.8 
9710 - Gold, non -monetary  33.6 29.9 23.2 24.4 34.9 36.8 
Source:  WTO Secretariat's calculations, based on data provided by the authorities.  
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  Table A1. 3 Merchandise exports by destination, including re -exports, 2012 -17 
  2012  2013  2014  2015  2016  2017  
Total exports ( USD m illion)  5,733.1  5,936.8  6,909.7  6,191.7  4,951.4 4,314.1  
 % of total  
Americas  1.8 1.3 2.6 3.0 1.7 1.7 
 United States  1.2 1.0 2.2 1.5 1.4 1.5 
 Other America  0.6 0.3 0.3 1.5 0.3 0.2 
Europe  27.9 16.0 11.7 13.2 28.9 17.2 
 EU(28)  13.6 8.9 9.4 10.2 13.2 11.0 
  Belgium  2.7 1.5 1.4 2.4 5.8 4.6 
  Netherlands  2.2 1.2 0.8 1.3 1.4 1.7 
  Germany  5.1 2.8 3.2 3.7 2.3 1.1 
  Italy 0.9 1.0 0.8 0.6 0.9 0.8 
 EFTA 14.3 7.0 2.3 2.9 15.6 6.1 
  Switzerland  13.9 6.9 2.2 2.5 15.6 6.1 
 Other Europe  0.0 0.1 0.0 0.1 0.1 0.2 
Commonwealth of Independent 
States (CIS)  0.2 0.2 0.1 0.2 0.3 0.3 
Africa  40.6 55.1 46.7 40.9 35.8 38.5 
  South Africa  17.3 13.0 21.3 11.0 13.2 16.4 
  Kenya  6.4 25.2 8.4 13.2 6.8 7.2 
  Democratic Republic of  the 
Congo  3.3 4.3 4.6 4.2 6.1 3.9 
  Comoros  0.1 0.0 0.2 3.0 3.5 2.0 
  Malawi  2.1 0.9 0.6 1.0 0.8 1.8 
  Rwanda  2.4 2.4 0.7 0.7 0.3 1.6 
  Zambia  1.6 1.7 2.1 0.8 0.8 1.4 
  Burundi  1.1 1.5 0.9 0.7 1.1 1.2 
  Uganda  2.4 1.5 1.3 0.9 1.3 0.8 
Middle East  2.3 2.1 2.8 7.3 2.6 3.3 
  United Arab Emirates  1.7 1.5 2.3 2.7 1.7 2.2 
Asia 27.1 25.3 36.0 35.4 30.7 39.0 
 China  9.2 5.3 10.1 9.3 7.2 3.3 
 Japan  5.2 3.7 3.6 3.7 2.8 1.7 
 Other Asia  12.7 16.3 22.4 22.4 20.7 33.9 
  India 8.4 12.7 18.3 18.6 14.3 22.8 
  Viet Nam  0.5 0.5 1.0 1.1 3.0 7.3 
  Hong Kong, China  0.4 0.5 0.5 0.5 0.6 1.0 
  Pakistan  0.6 0.1 0.2 0.3 0.3 0.7 
  Korea, Republic of  0.3 0.1 0.1 0.3 0.8 0.6 
Other  0.0 0.0 0.0 0.0 0.0 0.0 
Memo:        
EACa 12.3 30.6 11.3 15.5 9.5 10.9 
a Including all EAC WTO Members.  
Source:  WTO Secretariat's calculations, based on data provided by the authorities.  
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  Table A1. 4 Merchandise exports by group of products, including re -exports, 2012 -17 
  2012  2013  2014  2015  2016  2017  
Total exports ( USD million)  5,733.1  5,936.8  6,909.7  6,191.7  4,951.4  4,314.1  
 % of total  
Total primary products  48.6 36.3 52.7 54.0 47.4 46.2 
Agriculture  31.5 25.6 39.6 42.5 39.0 42.5 
Food 26.0 22.2 37.2 39.3 35.7 38.9 
0577 - Edible nuts, fresh or dried, 
whether or not shelled or peeled  2.9 3.2 5.8 4.1 7.1 12.7 
1212 - Tobacco, wholly or partly 
stemmed/stripped  3.2 1.6 2.7 3.4 7.3 4.4 
0711 - Coffee, not roasted; coffee husks 
and skins  3.2 2.7 1.8 2.5 3.1 2.9 
0542 - Leguminous vegetables, dried, 
shelled, whether or not skinned or split  1.8 1.4 2.6 4.3 3.2 2.2 
0345 - Fish fillets, fresh or chilled, and 
other fish meat  1.1 1.3 1.2 1.7 1.6 1.9 
2225 - Sesame (Sesamum) seeds  1.4 2.1 4.7 2.1 2.6 1.7 
0561 - Vegetables, dried, whole, cut, 
sliced, broken or in powder, but not 
further prepared  0.0 0.1 0.1 1.5 0.1 1.5 
0344 - Fish fillets, frozen  1.4 0.7 1.0 0.6 0.7 1.4 
0461 - Flour of wheat or of meslin  0.7 0.7 0.2 0.3 0.2 1.3 
0011 - Bovine animals, live  0.0 0.0 0.0 0.1 0.0 1.2 
0741 - Tea, whether or not flavoured  1.0 0.9 0.6 0.7 0.9 1.1 
0752 - Spices (except pepper and 
pimento)  0.7 0.7 0.5 0.4 0.2 0.6 
Agricultural raw material  5.5 3.4 2.4 3.2 3.4 3.6 
2690 - Worn clothing and other worn 
textile articles; rags  0.1 0.0 0.0 0.0 0.6 0.7 
Mining  17.1 10.6 13.2 11.5 8.3 3.7 
Ores and other minerals  15.6 7.4 10.8 9.0 6.9 2.0 
2891 - Precious metal ores and 
concentrates  7.3 5.1 8.2 7.6 6.5 1.5 
Non-ferrous metals  0.2 0.1 0.3 0.2 0.2 0.4 
Fuels 1.3 3.1 2.1 2.3 1.2 1.3 
Manufactures  18.9 37.6 28.0 22.9 19.1 18.1 
Iron and steel  0.9 0.9 0.5 0.5 0.4 0.6 
Chemicals  3.7 2.7 2.3 2.1 2.6 4.2 
541 - Soap; organic surface -active 
products and preparations for use as soap  0.4 0.3 0.3 0.3 0.3 1.2 
5621 - Mineral or chemical fertilizers, 
nitrogenous  0.9 0.5 0.2 0.4 0.4 0.8 
Other semi -manufactures  4.2 4.0 2.9 4.0 8.1 4.9 
6672 - Diamonds (other than sorted 
industrial diamonds)  0.0 0.0 0.0 0.0 0.5 1.5 
6414 - Kraft paper and paperboard, 
uncoated, n.e.s., in rolls or sheets  0.3 0.4 0.3 0.4 0.5 0.7 
Machinery and transport equipment  6.0 26.1 17.3 9.2 3.3 2.4 
Power generating machines  0.4 0.5 0.4 0.1 0.3 0.2 
Other non -electrical machinery  3.0 21.4 1.7 1.5 1.2 1.2 
Agricultural machinery and tractors  0.2 0.8 0.1 0.0 0.0 0.0 
Office machines & telecommunication 
equipment  0.2 0.3 0.4 5.9 0.3 0.2 
Other electrical machines  0.5 0.4 0.3 0.5 0.3 0.2 
Automotive products  0.3 0.7 0.5 0.4 0.5 0.5 
Other transport equipment  1.6 2.9 14.0 0.7 0.7 0.2 
Textiles  1.9 1.8 2.7 4.5 1.7 2.8 
6585 - Curtains and other furnishing 
articles, n.e.s., of textile materials  1.0 0.8 1.0 0.5 0.3 0.7 
Clothing  0.2 0.3 0.5 0.6 1.0 1.4 
Other consumer goods  1.9 1.8 1.8 1.9 2.0 1.7 
Other  32.5 26.2 19.3 23.1 33.6 35.7 
9710 - Gold, non -monetary  32.5 26.1 19.2 23.1 33.6 35.7 
Source:  WTO Secretariat's calculations, based on data provided by the authorities.  
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  Table A1. 5 Merchandise imports by group of products, 2012 -17 
  2012  2013  2014  2015  2016  2017  
Total imports (USD million)  11,715.7  12,525.4  12,288.9  14,784.2  7,913.9  7,761.3  
 % of total  
Total primary products  44.6 48.3 39.7 57.7 31.3 31.9 
Agriculture  11.1 8.6 10.5 6.4 12.0 11.2 
Food 10.3 7.9 9.5 5.7 10.8 10.2 
4222 - Palm oil and its fractions  2.1 1.5 2.9 1.6 3.4 3.3 
0412 - Other wheat (including spelt) 
and meslin, unmilled  3.5 2.5 2.5 1.5 2.4 2.0 
0612 - Other beet or cane sugar and 
chemically pure sucrose  1.3 1.1 0.8 0.7 1.6 1.4 
Agricultural raw material  0.8 0.7 1.0 0.7 1.3 1.1 
Mining  33.5 39.7 29.1 51.3 19.3 20.6 
Ores and other minerals  0.3 0.4 0.3 0.3 0.6 0.4 
Non-ferrous metals  0.5 0.5 0.8 0.4 0.6 0.6 
Fuels 32.6 38.7 28.0 50.6 18.1 19.7 
334 - Petroleum oils and oils obtained 
from bituminous minerals (other than 
crude)  31.0 37.2 26.8 49.8 17.0 18.1 
Manufactures  55.4 51.7 60.3 42.2 68.7 68.1 
Iron and steel  4.1 6.3 4.3 2.4 3.8 4.0 
6732 - Flat-rolled products of iron or 
non-alloy steel, not clad, plated or 
coated  0.2 0.3 0.1 0.1 0.1 1.5 
Chemicals  10.5 11.2 14.5 10.4 16.9 19.4 
5429 - Medicaments, n.e.s.  1.1 1.2 2.5 2.1 3.1 4.0 
5711 - Polyethylene  0.8 1.0 1.2 0.8 1.2 1.2 
5751 - Polymers of propylene or of 
other olefins  1.0 0.9 1.1 0.7 1.1 1.1 
5986 - Organic chemical products, 
n.e.s.  0.2 0.2 0.3 0.2 0.5 1.0 
5629 - Fertilizers, n.e.s.  0.4 0.6 0.4 0.7 0.8 1.0 
5514 - Mixtures of odoriferous 
substances and mixtures  0.4 0.5 0.6 0.4 0.9 0.9 
5621 - Mineral or chemical fertilizers, 
nitrogenous  0.8 0.8 0.6 0.4 0.8 0.9 
5416 - Glycosides; glands or other 
organs and their extracts; antisera, 
vaccines and similar products  0.2 0.5 0.7 0.4 0.6 0.8 
Other semi -manufactures  7.4 7.1 8.8 5.6 9.4 7.8 
6252 - Tyres, pneumatic, new, of a 
kind used on buses or lorries  0.7 0.8 0.8 0.5 0.9 0.9 
Machinery and transport equipment  28.3 22.3 27.0 19.6 31.1 29.7 
Power generating machines  1.3 0.8 1.4 0.6 1.5 3.4 
7148 - Gas turbines, n.e.s.  0.1 0.0 0.6 0.0 0.1 1.2 
Other non -electrical machinery  8.6 5.2 8.1 5.1 9.7 8.7 
7239 - Parts of the machinery of civil 
engineering and contractors' plant 
and equipment, ships' derricks; 
cranes, etc.  2.0 1.1 1.0 0.6 1.2 1.0 
Agricultural machinery and tractors  0.5 0.4 0.6 0.4 0.6 0.8 
Office machines & telecommunication 
equipment  3.7 3.5 3.2 3.7 4.3 3.9 
7643 - Transmission apparatus for 
radio-telephony, radio -telegraphy, 
radio-broadcasting or television  0.2 0.3 0.3 0.2 0.4 1.2 
Other electrical machines  2.8 2.2 3.3 3.3 4.3 3.9 
Automotive products  7.7 7.2 7.3 4.5 7.5 5.9 
7812 - Motor vehicles for the 
transport of persons, n.e.s.  2.6 2.5 2.6 1.6 2.6 2.0 
7821 - Motor vehicles for the 
transport of goods  2.2 2.1 1.8 0.9 1.8 1.6 
7832 - Road tractors for semi -trailers  1.7 1.4 1.3 0.9 1.2 0.8 
Other transport equipment  4.2 3.5 3.6 2.4 3.8 3.9 
7851 - Motor cycles  and cycles fitted 
with an auxiliary motor  0.6 0.8 0.8 0.6 1.1 0.9 
Textiles  1.0 0.9 0.9 0.9 2.0 1.7 
Clothing  0.5 0.6 0.6 0.4 0.9 0.8 
Other consumer goods  3.6 3.3 4.2 3.0 4.7 4.8 
Other  0.0 0.0 0.0 0.0 0.0 0.0 
Source:  WTO Secretariat's calculations, based on data provided by the authorities.  WT/TPR/S/384 • Tanzania  
 
- 345 - 
 
  Table A1. 6 Merchandise imports by origin, 2012 -17  
  2012  2013  2014  2015  2016  2017  
Total imports ( USD million)  11,715.7  12,525.4  12,288.9  14,784.2  7,913.9  7,761.3  
 % of total  
Americas  4.7 3.1 4.2 2.9 5.1 4.0 
 United States  2.0 1.9 2.9 2.2 3.2 2.5 
 Other America  2.7 1.2 1.3 0.7 1.9 1.5 
Europe  27.4 25.8 21.3 10.3 15.0 17.7 
 EU(28)  12.4 9.9 10.4 6.8 12.4 14.0 
  Germany  1.6 1.4 2.0 1.1 2.4 3.8 
  United Kingdom  3.1 2.2 2.1 1.2 2.0 2.1 
  Italy 1.0 0.7 0.6 0.5 1.1 1.3 
  Netherlands  1.4 1.1 1.4 0.6 1.3 1.0 
  France  0.9 0.8 0.6 0.6 0.9 0.9 
  Finland  0.2 0.3 0.5 0.3 0.4 0.9 
  Belgium  1.9 1.2 1.0 0.4 0.8 0.8 
 EFTA 14.0 13.2 7.5 2.9 1.7 2.4 
  Switzerland  13.5 12.9 7.1 2.9 1.6 2.2 
 Other Europe  1.0 2.7 3.4 0.5 0.8 1.4 
  Turkey  1.0 1.0 1.1 0.5 0.8 1.0 
Commonwealth of independent 
states (CIS)  1.1 1.0 1.2 1.1 1.5 1.3 
  Russian Federation  0.7 0.6 1.0 0.8 1.4 1.2 
Africa  15.8 11.4 12.1 6.8 12.5 19.4 
  South Africa  8.0 5.8 4.8 3.5 6.0 13.7 
  Kenya  4.8 2.7 5.2 1.6 3.4 2.5 
Middle East  20.7 14.5 12.3 47.6 11.6 13.0 
  United Arab Emirates  8.8 9.5 9.3 5.7 7.5 6.7 
  Saudi Arabia, Kingdom of  2.0 1.8 1.6 40.6 2.8 5.2 
Asia 30.3 44.3 48.9 31.2 54.2 44.6 
 China  9.9 12.7 16.1 12.6 20.8 17.5 
 Japan  4.4 4.1 4.4 2.7 4.7 5.1 
 Other Asia  15.9 27.4 28.3 15.9 28.7 22.1 
  India 7.5 18.4 19.3 8.6 18.1 12.7 
  Malaysia  0.8 0.9 3.1 1.1 3.3 1.8 
  Korea, Republic of  1.0 1.2 1.3 1.5 2.1 1.6 
  Indonesia  2.0 1.2 0.7 1.0 0.8 1.4 
  Thailand  0.6 0.7 0.8 0.6 1.0 1.1 
  Australia  1.1 1.3 1.1 0.7 0.8 0.8 
Other  0.0 0.0 0.0 0.0 0.0 0.1 
Memo:  
EACa 5.8 3.2 5.6 1.9 3.8 2.9 
a Including all EAC WTO Members.  
Source:  WTO Secretariat's calculations, based on data provided by the authorities.  
  WT/TPR/S/384 • Tanzania  
 
- 346 - 
 
  Table A3. 1 Excise taxes on goods and services, Zanzibar, 2017  
HS Code  Description  Unit Rate  
20.09  Imported fruit juices (including grapes must) and vegetable juices, 
unfermented and not containing added spirit, whether or not containing 
added sugar or other sweetening matter  L TZS 210.00 per litre  
22.02  Water, including mineral waters and aerated waters containing added 
sugar or other sweetening matter of flavoured, and other non -alcoholic 
beverages, not including fruit or vegetable juices of Heading No. 20.09  L TZS 210.00 per litre  
2202.10.00  Waters, including mineral waters and aerated waters, containing added 
sugar or other sweetening matter or flavoured  L TZS 61.00 per litre  
2202.90.00   Other  L TZS 58.00 per litre  
2202.91.00   Non-alcoholic beer  L TZS 561.00 per litre  
2203 Beer made from malt    
2203.00.10  Stout and porter  L TZS 765.00 per litre  
2203.00.90  Other  L TZS 765.00 per litre  
22.04  Wine of fresh grapes, including fortified wines; grape must other than 
that of heading No. 20.09    
2204.10.00   Sparkling wine    
2204.10.10  Beer with the grapes content exceeding 75%  L TZS 2,349.00 per litre  
2204.10.90  Other  L TZS 2,236.00 per litre  
2204.21.00  With the grapes content exceeding 75%  L TZS 2,349.00 per litre  
2204.21.00  Other  L TZS 2,349.00 per litre  
2204.29.00  Other  L TZS 2,349.00 per litre  
2204.30.10  With the grapes content exceeding 75%  L TZS 2,349.00 per litre  
2205.30.90  Other  L TZS 2,349.00 per litre  
2205.10.00  With the grapes content exceeding 75%  L TZS 2,349.00 per litre  
2205.10.90  Other  L TZS 2,349.00 per litre  
2205.90.10  With the grapes content exceeding 75% L TZS 2,349.00 per litre  
2205.90.90  Other  L TZS 2,349.00 per litre  
2206.00.10  Cider L TZS 2,349.00 per litre  
2206.00.20  Beer made from 100% local un -malted cereals  L TZS 429.00 per litre  
2206.00.90  Other  L TZS 2,349.00 per litre  
2208.20.00  Spirits  obtained by distilling fermented sugar cane products  L TZS 3,481.00 per litre  
2208.30.00  Whiskies  L TZS 3,481.00 per litre  
2208.40.00  Rum and other spirits obtained by distilling fermented sugar cane 
products  L TZS 3,481.00 per litre  
2208.50.00  Gin and  Geneva  L TZS 3,481.00 per litre  
2208.60.00  Vodka  L TZS 3,481.00 per litre 
TZS 3,481.00 per litre  
2208.70.00  Liqueurs and cordials  L TZS 3,481.00 per litre  
2208.90.10  Distilled spirits e.g. Konyagi, Uganda waragi  L TZS 3,481.00 per litre  
2208.90.00  Other  L TZS 3,481.00 per litre  
24.02  Cigar, cheroots and cigaritto, containing tobacco  kg 30% 
2402.20.10  Without filter tip and containing domestic tobacco contents exceeding 
75% mil TZS 12,447.00 per mil  
2402.20.90  Without filter tip and the domestic tobacco contents exceeding 75%  mil TZS 29,425.00 per mil  
24.03  Other  mil TZS 53,235.00 per mil  
 Other  mil TZS 53,235.00 per mil  
2403.10.10  Cut rag/filler  kg TZS 26,888.00 per kg  
 Water pipe tobacco specified in sub -heading note one to this chapter  kg 30% 
2403.19.00  Other  kg 30% 
2403.91.00  Homogenized or reconstituted tobacco  kg 30% 
2403.99.00  Other  kg 30% 
2710.12.10  Motor spirit (gasoline) regular  L TZS 379.00 per litre  
2710.12.20  Motor spirit (gasoline) premium  L TZS 379.00 per litre  
2710.19.21  Kerosene type jet fuel  L Nil  
2710.19.22  Illuminating kerosene  L TZS 122.00 per litre  
2710.19.29  Other medium oils and preparations  L TZS 8.7145  per litre  
2710.19.31   Gas oil (automotive, light, amber for high speed engines)  L TZS 255.00 per litre  
2710.19.32  Diesel oils (industrial, heavy black for low speed marine and 
stationary engines)  L TZS 201.00 per litre  
2710.19.41  Residual fuel oils (marine, furnaces and similar fuel oils) of 180 
centistokes  L TZS 97.00 per litre  
2710.19.42  Residual fuel oils (marine, furnaces and similar fuel oils) of 180 
centistokes  L TZS 97.00 per litre  
2710.19.43  Residual fuel oils (marine, furnaces and similar fuel oils) of 280 
centistokes  L TZS 97.00 per litre  
2710.19.49  Other residual fuel oils  L TZS 97.00 per litre  
2710.19.51  Lubricating oils  L TZS 500 per m3  
2710.19.52  Lubricating greases  L TZS 0.75 per kg  
2711.11.00  Natural gas  kg TZS 114.00 per kg  
2711.12.00  Propane  kg TZS 114.00 per kg  
2711.13.00  Butane  kg TZS 114.00 per kg  
2711.14.00  Ethylene, propylene, butylene and butadiene  kg TZS 114.00 per kg  
2711.19.00  Other  kg TZS 114.00 per kg  
3923.21.00  Of polymers of ethylene  kg 120%  
3923.21.10  Shopping bags  kg 120%  
3923.29.10  Shopping bags  kg 120%  
8523.29.90  Recorded video and audio tape u TZS 50.00 per unit  WT/TPR/S/384 • Tanzania  
 
- 347 - 
 
  HS Code  Description  Unit Rate  
8523.40.90  Recorded DVD, VCD, CD  u TZS 50.00 per unit  
8702.10.20  Of cubic capacity of 2,000 or more than seating capacity not exceeding 
10 persons  u 10% 
8703.22.90  Other  u 5% 
8703.23.01  Of a cylinder capacity exceeding 1,500 cc but not exceeding 2,000  cc u 5% 
8703.23.99  Other  u 10% 
8703.24.90  Other  u 10% 
8703.31.91  Of a cylinder not exceeding 1,000 cc  u Nil 
8703.31.99  Other  u 5% 
8703.32.91  Of a cylinder capacity exceeding 1,500 cc but not exceeding 2,000 cc  u 5% 
8703.32.99  Other  u 10% 
 Of a cylinder capacity exceeding 2,500 cc  u 5% 
8703.33.90  Other  u 10% 
8802.11.00  Of an unladen weight not exceeding 2,000 kg  u 20% 
8802.12.00  Of an unladen weight exceeding 2,000 kg  u 20% 
8802.20.00  Aeroplanes and other aircrafts of an unladen weight not exceeding 
2,000 kg  u 20% 
8802.30.00  Aeroplanes and other aircrafts of an unladen weight exceeding 15,000 
kg u 20% 
8802.40.00  Aeroplanes and other aircrafts of an unladen weight exceeding 2,000 
kg but not 15,000 kg  u 20% 
9401.30.00  Swivel seats with variable height adjustment  u 20% 
9401.40.00  Seats other than garden seats or camping equipment, convertible into 
beds u 20% 
9401.51.00  Of bamboo rattan  u 20% 
9401.59.00  Other  u 20% 
9401.61.00  Upholstered  u 20% 
9401.69.00  Other  u 20% 
9401.71.00  Upholstered  u 20% 
9401.79.00  Other  u 20% 
9401.80.00  Other seats  u 20% 
9401.90.00  Parts kg 20% 
9403.10.00  Metal furniture of kind used in offices  kg 20% 
9403.20.00  Other metal furniture  u 20% 
9403.30.00  Wooden furniture of kind used in offices  u 20% 
9403.40.00  Wooden furniture of kind used in the kitchen  u 20% 
9403.50.00  Wooden furniture of kind used in the bedroom  u 20% 
9403.60.00  Other wooden furniture  u 20% 
9403.70.00  Furniture of plastics  kg 20% 
9403.81.00  Of bamboo or rattan  kg 20% 
9403.89.00  Other  kg 20% 
9403.90.00  Parts kg 20% 
 Imported non -utility vehicle of 10 years or more from the year of its 
manufacture  u 25% 
 Imported used spare parts motor vehicle, bicycles, motorcycles and 
used domestic appliances including refrigerators, washing machines, 
electric cookers, microwave ovens, vacuum cleaners, electric fences, air 
conditioners, electric radiators and all other r elated products, electric 
appliances including televisions, cartridges, printers, photocopiers, 
mobile phones and all other related products  u 25% 
 Electronic communication services   17% of the dutiable 
value  
 Pay to view television service provided by licensed cable television 
network or cable operator other than the Government or the Local 
Government Authority Operator   5% of the dutiable value  
 Services provided by financial institutions   10% on charges or fees 
payable by a person 
receiving the servi ce 
 Money transfer and payment services provided by telecommunication 
service provider   10% on charges or fees 
payable by a person 
receiving the service  
 Other imported service   12% of the dutiable 
value  
Source:  Act No. 8 of 2017, Excise Duty Act. Zanzibar House of Representatives online information. Viewed 
at: http://www.zanzibarassembly.go.tz/act_2017/act_8.pdf .  
  
  WT/TPR/S/384 • Tanzania  
 
- 348 - Table A3. 2 State enterprises, 2014  
 
Enterprise  Gvt 
shares  
(%) Ministry oversight  Total income  Gvt subvention  Gain or loss  Total assets  
Business -oriented institutions which the government is minority shareholder  
1 Arusha International Conference Centre (AICC)  100 Foreign Affairs  11,584,862,785.00  0 871,809,271.00  34,944,934,518.00  
2 Business Registrations & Licensing Agency 
(BRELA)  100 Industries and Trade  2,658,812,906.00  0 789,607,460.00  11,699,363,780.00  
3 Consolidated Holdings Corporation  100 Ministry of Finance  15,126,000,000.00  0 7,761,000,000.00  43,080,000,000.00  
4 Contractors Registration Board  100 Ministry of Work  8,895,233,000.00  0 929,975,000.00  10,120,611,000.00  
5 Energy & Water Utilities Regulatory Authority 
(EWURA)  100 Energy & Minerals  29,196,100,000.00  0 8,727,530,000.00  20,708,550,000.00  
6 Medical Store Department (MSD)  100 Health a nd Social Welfare  243,730,243,369.00  0 605,031,619.00  294,852,294,157.00  
7 National Development Corporation  100 Industries Trade & 
Marketing  6,261,639,000.00  0 3,007,857,000.00  135,061,663,000.00  
8 National Institute for Productivity  100 Prime Minister's Office  774,547,266.00  0 (421,421,396.00)  16,376,607,792.00  
9 National Ranching Company Limited (NARCO)  100 Livestock  Development & 
Fisheries  5,914,159,000.00  0 (927,184,000.00)  154,779,817,000.00  
10 Ngorongoro Conservation Area Authority (NCAA)  100 Natura Resources & 
Tourism  60,493,557,032.00  0 10,626,082,227.00  45,247,531,001.00  
11 Sugar Board of Tanzania  100 Agriculture and 
Cooperatives  3,735,012,000.00  0 1,068,723,000.00  29,424,194,000.00  
12 SUMATRA  100 Transport  23,048,771,000.00  0 2,848,483,000.00  24,497,113,000.00  
13 Tanzania Civil Aviation Authority  100 Transport  32,310,691,000.00  0 1,157,229,000.00  36,240,690,000.00  
14 Tanzania Communication Regulatory Authority  100 Science, Communication 
& Technology  73,622,124,207.00  0 12,042,380,296.00  123,632,908,544.00  
15 Tanzania Government Flights Agency  100 Ministry of Transport  16,852,807,466.30  0 18,202,123.38  126,309,055,925.91  
16 Tanzania Insurance Regulatory Authority (TIRA)  100 Ministry of Finance  7,369,317,762.57  0 1,842,212,481.56  13,214,359,604.07  
17 Tanzania National Parks (TANAPA)  100 Natura Resources & 
Tourism  124,805,920,000.00  0 (6,406,083,000.00
) 126,827,524,000.00  
18 TEMESA  100 Work 27,586,170,148.69  0 1,065,014,268.92  63,421,220,023.56  
19 Unit Trust of Tanzania  100 Ministry of Finance  5,964,111,117.00  0 493,681,662.00  33,865,355,400.00  
20 VETA 100 Education & Vocational 
Training  60,511,094,000.00  0 (24,831,000.00)  176,587,502,000.00  
21 Tanganyika Instant Coffee  10 Agriculture and 
Cooperatives  5,595,278,670  0 755,894  824,496,702  
22 Tanganyika Planting Company Ltd (TPC)  25 Agriculture and 
Cooperatives  27,794,607,528  0 1,117,482,742  152,761,464,734  
23 Tanscan Timber Company Ltd  49 Natural Resources & 
Tourism  19,006,700  0 -3,802,400  239,800,451  
24 Tanzania Development Finance Ltd  32.1  4,999,000,000  0 3,256,000,000  26,322,000,000  
25 Tanzania National Reinsurance Corporation Limited  1 
Golden 
Share  Ministry of Finance  60,398,892,592  0 2,237,019,951  64,771,452,182  
26 Tanzania Pharmaceutical Industries Limited  40 Industries Trade & 
Marketing  303,499,691  0 -1,614,919,942  33,219,211,449  
27 Tazama Pipelines Limited  33 Transport  65,819,849,184  0 6,574,644,763  331,604,832,978  
28 TBL 4 Industries and Trade - 904,629,000,000  0 177,128,000,000  738,340,000,000  
29 TCC 2.5 Industries and Trade  452,482,000,000  0 82,852,000,000  248,749,000,000  
30 TOL 9.59 Industries and Trade  10,975,937,000  0 998,495,000  18,276,353,000   
  WT/TPR/S/384 • Tanzania  
 
- 349 -  
Enterprise  Gvt 
shares  
(%) Ministry oversight  Total income  Gvt subvention  Gain or loss  Total assets  
31 Williamson Diamond Limited  25 Energy & Minerals - 21,876,172,500  0 21,876,172,500  0 
Business -oriented institutions owned 100% by the government  
1 Air Tanzania Company Limited  100 Transport  57,077,648,000  0 -17,926,656,000  31,452,967,000  
2 Bank of Tanzania  100 Ministry of Finance  366,632,006,000  0 -16,754,925,000  10,238,994,992,00
0 
3 Dar es Salaam Water & Sewerage (DAWASCO)  100 Water  25,409,371,000  0 -9,996,736,000  14,833,293,000  
4 DAWASA  100 Energy & Minerals  21,360,580,000  3,786,481,000  -17,159,384,000  24,913,968,000  
5 Gaming Board of Tanzania  100 Ministry of Finance  5,464,784,130  0 937,800,433  4,720,179,904  
6 Kilimanjaro Airport Development Company Limited  100 Transport  16,090,060,000  0 220,687,000  10,832,615,000  
7 Marine Service Company  100 Livestock Development & 
Fisheries  12,575,328,016  907,000,000  -1,285,782,277  8,694,432,710  
8 National Housing Corporation  100 Lands, Housing & Human 
Settlement Development  938,763,958,000  0 614,733,981,000  3,017,758,048,000  
9 National Insurance Corporation (NIC)  100 Ministry of Finance  36,613,470,000  0 -7,694,683,000  136,629,605,000  
10 Tanzania Broadcasting Corporation  100 Information Culture & 
Sports  20,741,008,948  9,095,995,370  -109,920,995  53,958,501,586  
11 Tanzania Electric Supply Company Limited 
(TANESCO)  100 Energy & Minerals  1,263,834,000  0 -467,704,000  3,773,862,000  
12 Tanzania Fertilizer Company  100 Agriculture and 
Cooperatives  13,824,691,024  0 -1,815,018,421  28,371,678,873  
13 Tanzania Ports Authority  100 Transport  429,733,234,727  0 111,184,897,472  908,829,685,365  
14 Tanzania Posts Corporation  100 Transport  28,206,283,580  0 1,405,655,978  152,762,126,734  
15 Tanzania Railway Limited  100 Transport  47,337,606,000  18,024,300,000  -23,601,173,000  69,605,897,000  
16 Tanzania Standards Newspaper  100 Information Culture & 
Sports  12,229,749,207  0 -599,398,869  15,641,974,930  
17 Twiga Bancorp Limited  100 Ministry of Finance  9,056,040,000  0 -9,804,550,000  59,185,578,000  
Zanzibar  
 People's Bank of Zanzibar (PBZ)        
 Zanzibar Insurance Corporation (ZIC)        
 Zanzibar Broadcasting Corporation (ZBC)        
 Zanzibar Newspaper Corporation (ZNC)        
 Zanzibar Library Services Board (ZLSB)        
 Zanzibar Ports Corporation (ZPC)        
 Shipping Corporation of Zanzibar (SCZ)        
 Zanzibar Housing Corporation (ZHC)        
Public non -financial corporations  
1 Amani Hotel  100      
2 Bwawani Hotel  100      
3 Furaha ya Visiwani Zanzibar  100      
4 Sauti ya Tanzania Zanzibar  100      
5 Shirika la Bandari  100      
6 Shirika la Biashara va Mazari  100      
7 Shirika la Meli  100      
8 Shirika la Utalii  100      
9 Televison Zanzibar (TVZ)  100      
10 Zanzibar Electricity Company (ZECO)  100      
11 Zanzibar State Trading Company (ZSTC)  100      
Central government units  
1 Balaza la Kiswahili Zanzibar  100       
  WT/TPR/S/384 • Tanzania  
 
- 350 -  
Enterprise  Gvt 
shares  
(%) Ministry oversight  Total income  Gvt subvention  Gain or loss  Total assets  
2 Chuo cha Hoteli -Maruhubi  100      
3 Chuo cha Kiislarn  100      
4 Chuo cha Uturnishi  100      
5 Karume Technical College  100      
6 Mbweni Chuo cha Afva  100      
7 Nkurumah Teachers College  100      
8 Office of Chief Government Statistician (OCGS)  100      
Note:  The other category of state enterprises under the authority of the Treasury Registrar, " Non-business  oriented institutions , which do not receive government 
subventions" comprise 20 enterprises, but due to their non -business nature and non -funding status, they are not included here.  
Source:  Office of the Treasury Registrar online information. Viewed at: 
http://www.tro.go.tz/index.php?option=com_jdownloads&task=download.send&id=4&catid=4&m=0&Itemid=174&lang=en .