ANNEX 2 
TANZANIA  EAC-Tanzania WT/TPR/S/171/TZA 
 Page A2-129 
 
 
 CONTENTS 
Page 
I. ECONOMIC ENVIRONMENT 133 
(1) M AJOR FEATURES OF THE ECONOMY  133 
(2) R ECENT ECONOMIC DEVELOPMENTS  134 
(3) T RADE AND INVESTMENT PERFORMANCE  136 
(i) Trade in goods and services 137 (ii) Investment 141 
(4) O
UTLOOK  142 
II. TRADE AND INVESTMENT REGIMES 143 
(1) G ENERAL FRAMEWORK  143 
(2) P OLICY OBJECTIVES  145 
(3) T RADE AGREEMENTS  146 
(4) I NVESTMENT FRAMEWORK  147 
(i) Mainland Tanzania 147 
(ii) Zanzibar 149 
III. TRADE POLICIES AND PRACTICES BY MEASURE 151 
(1) I NTRODUCTION  151 
(2) M EASURES DIRECTLY AFFECTING IMPORTS  151 
(i) Business registration, customs procedures, and valuation 151 
(ii) Tariffs 153 (iii) Other duties and charges 154 
(iv) Import prohibitions, restrictions, and licensing 155 
(v) Contingency trade remedies 155 (vi) Standards and other technical requirements 156 
(vii) Other measures 159 
(3) M
EASURES DIRECTLY AFFECTING EXPORTS  159 
(i) Registration and documentation 159 
(ii) Export taxes 160 
(iii) Export prohibitions, rest rictions, and licensing 160 
(iv) Export subsidies, finance, and promotion 160 
(v) Export processing zones 161 
(4) M EASURES AFFECTING PRODUCTION AND TRADE  163 
(i) Incentives 163 
 (ii) Government procurement 164 
(iii) State trading enterprises, stat e ownership, and privatization 165 
 (iv) Competition policy and price controls 167 
 (v) Intellectual property rights 168 
IV. TRADE POLICIES BY SECTOR 170 
(1) I NTRODUCTION  170 
 (2) A GRICULTURE AND RELATED ACTIVITIES  170 
(i) Main features 170 WT/TPR/S/171/TZA Trade Policy Review 
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 Page 
(ii) Policy developments 171 
(iii) Selected products 174 
 (3) M INING AND ENERGY  180 
(i) Mining 180 
(ii) Energy 183 
(4) M ANUFACTURING  185 
(5) S ERVICES  186 
(i) Financial services 187 
(ii) Telecommunications and postal services 189 (iii) Transport 191 
(iv) Tourism 194 
REFERENCES   197 
APPENDIX TABLES  201 
 
 EAC-Tanzania WT/TPR/S/171/TZA 
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 CHARTS 
Page 
I. ECONOMIC ENVIRONMENT 
I.1 Structure of merchandise trade, 1999-04 138 
I.2 Direction of merchandise trade, 1999-04 140 
TABLES 
I. ECONOMIC ENVIRONMENT 
I.1 Selected economic indicators, 1999-04 134 
I.2 Balance of payments, 1999-04 136 
I.3 Investment, 1985-04 141 
II. TRADE AND INVESTMENT REGIMES 
II.1 Trade-related laws, 2006 144 
II.2 Tanzania's notifications to the WTO, as of July 2006 146 II.3 Investment incentives in mainland Tanzania to lead and priority sectors, 2006 148 
II.4 Minimum investment levels for Zanzibar, 2006 150 
III. TRADE POLICIES AND PRACTICES BY MEASURE III.1 Tanzania's EPZ programmes 162 
III.2 Investment structure in mainland Tanzania's EPZs, April 2006 162 
III.3 Tanzania's SOEs, 2005 166 
IV. TRADE POLICIES BY SECTOR 
IV.1 Main features of the agriculture sector, July 2006 171 
IV.2 Fisheries exports, 1998-04 178 
IV.3 Fishing licence fees, July 2006 178 
IV.4 Exports of forestry products and beekeeping, 1999/00 to 2002/03 179 IV.5 Mineral production, 2002-05 180 
IV.6 Electricity sales by type of use, 1999-04 184 
IV.7 Manufacturing production index, 1999-05 186 IV.8 Tanzania's GATS specific commitments, 2006 187 
IV.9 Capital requirements for insurers and brokers, July 2006 189 
IV.10 Selected telecommunication indicators, 2000-04 190 IV.11 Tourism in Tanzania, 1995 and 1999-04 195 
APPENDIX TABLES 
I. ECONOMIC ENVIRONMENT 
AI.1 Structure of exports, 1999-04  203 
AI.2 Structure of imports, 1998-04  205 
AI.3 Destination of exports, 1999-04 206 AI.4 Origin of imports, 1998-04 207 
 EAC-Tanzania WT/TPR/S/171/TZA 
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 I. ECONOMIC ENVIRONMENT 
(1) MAJOR FEATURES OF THE ECONOMY  
1. The United Republic of Tanzania has a landmass of 883,749 square km (of which 46% is 
arable land);  in 2002, around 76% of its 34.4 million people were living in rural areas.1  It borders 
Kenya and Uganda to the North;  Malawi, Mozambi que and Zambia to the South;  the Democratic 
Republic of the Congo (formerly Zaire), Burundi, and Rwanda to the West; and the Indian Ocean to 
the East.  Tanzania includes the islands of Unguja and Pemba, which together  constitute Zanzibar, and 
other offshore islands in the Indian Ocean.  The capital is Dodoma, while Dar es Salaam is the 
commercial centre and most populated city (about 2.5 million).2  Tanzania's estimated annual 
population growth rate was around 2.1% during 2000-04.3  In 2002, 44.2% of the population was in 
the 0-14 age group, 43% in the 15-44 group, and the remaining 12% were 44 or older.4   
2. With a per capita income of US$302 in 2004 (up from US$242 in 1999), Tanzania remains 
one of the world's least-developed countries.  Tanzania ranked 164th out of 177 countries in the UNDP 
Human Development Index in 2003.  Estimated life expectancy at birth was 46 years in 20035;  and in 
2000-01, about 20% of its population lived on US$1 or less a day, mostly in rural areas.6  Agriculture 
is the main sector (46.4% of GDP in 2004), accounti ng for almost two thirds of merchandise exports 
on average during 1999-04, and employing over 80% of the labour force.   Services account for about 
35% of Tanzania's GDP, and are characterized predominantly by public services and tourism, which generate around 30% of the country's foreign exch ange earnings.  The manufacturing sector is still 
underdeveloped (about 9% of GDP), and suffers from a variety of inefficiencies, such as poor 
infrastructure, and high energy and transport co sts. As at 2005, Tanzania's prospects depended 
significantly on the development of its mining an d quarrying, and agriculture;  Tanzania has 
significant mineral resources, notably gold and diamonds. 
3. Tanzania accepted the obligations of Article V III of the IMF Agreement in July 1996.  The 
national currency is the Tanzanian Shilling (T Sh), w ith official exchange rates determined through 
the interbank market for foreign ex change.  The exchange rate was T Sh 1,043 per U.S. dollar at end 
2004 (compared with T Sh 737.0 per U.S. dollar on  30 June 1999).  There are no restrictions on 
payments and transfers for current international transactions.
7 
4. On 29 July 2005, the IMF completed the fourth  review of Tanzania 's economic performance 
under a three-year Poverty Reduction and Growth Facility (PRGF) arrangement, and approved the 
disbursement of about US$4.1 million under the arrangement.8 Tanzania is also under the World 
Bank's Country Assistance Strategy (CAS), and the IMF and World Bank's enhanced Heavily 
Indebted Poor Countries (HIPC) initiative. These pr ogrammes, along with the National Strategy for 
                                                      
1 National Bureau of Statistics online information.   Available at:  http://www.nbs.go.tz.  In 1964, 
Tanganyika and Zanzibar came together to form the United Republic of Tanzania.  For a description of the developments in Tanzania from independence to 1999, see WTO (2000). 
2 The population of Zanzibar (Unguja and Pemba) is estimated at around 1 million. 
3 World Bank (2005). 
4 National Bureau of Statistics (2002). 
5 UNDP (2005). 
6 World Bank (2005b), p. 259;  and Treichel (2005), p. 17. 
7 IMF (2005b). 
8 Tanzania has received about US$20.2 milli on under the Poverty Reduction Growth Facility 
programme (IMF Press Release No. 05/177, 29 July 2005). WT/TPR/S/171/TZA Trade Policy Review 
Page A2-134 
 
 
 Growth and Reduction of Poverty (NSGRP) 2005-10, provide the policy context for poverty reduction 
initiatives in Tanzania. 
(2) RECENT ECONOMIC DEVELOPMENTS  
5. Since 1999, Tanzania has continued its progr amme of macroeconomic stabilization and 
structural reform;  this has allowed it to tran sform the economy into a more outward-looking and 
market-oriented one.  As a result, Tanzania has c ontinued to grow, expanded the role of the private 
sector, consolidated its macroeconomic st ability, and reached debt sustainability.9  During 1999-04, 
the non-monetary economy in mainland Tanzania was around 30% of total GDP, while savings, as a 
proportion of GDP, were almost non-existent (Table I.1).  Tanzania also has a significant informal 
sector, estimated at over 50% of GDP in 2002.10  The agriculture sector (including forestry and 
fishing) and the services sector continued to be the largest contributors to real GDP growth.  
6. Mainland Tanzania's annual real GDP growth ra te averaged 5.8% during 2000-04 (6.8% in 
Zanzibar), a significant increase compared with the 3.6% growth during 1987-99.  An IMF study found that economic growth was higher in urban than in rural areas during 1999-04.
11  T h i s  w a s  
spurred particularly by an increase in total fact or productivity (related to higher foreign direct 
investment), and the recovery of some commodity prices.12  Moreover, past structural reforms and 
policies sheltered the Tanzanian economy from we ather-related phenomena thus providing it with 
resilience and enabling it to grow at a "floor" of 3% annually.13  As a result, poverty in Tanzania is 
estimated to have decreased over the last few years.14   
7. Inflation continued to decrease during the peri od under review, from an average of over 30% 
during the previous two decades to 4.1% in 2004 (Tab le I.1).  Prudent monetary policy and relatively 
stable foreign exchange rates are largely behind the reduction in inflation in Tanzania. Relying 
increasingly on sterilization of excess liquidity throu gh the sale of large foreign exchange proceeds 
from aid inflows, the Bank of Tanzania (BT) ha s pursued growth targets in the money supply 
consistent with strong private sector de mand for credit and subdued inflation.15  
Table I.1 
Selected economic indicators, 1999-04  
  1999 2000 2001 2002  2003  2004a 
National account (T Sh billion)        
GDP at factor costs 6,114.1 6,865.0 7,811.4 8,918.2  10,060.0  11,587.1 
GDP at market prices 6,432.9 7,267.1 8,274.6 9,445.5 10,692.4 .. 
Final consumption 6,118.6 6,552.3 7,433.9 8,098.6 9,463.3 .. 
   Private 5,667.4 6,069.6 6,917.6 7,499.6 8,765.5 .. 
   Public 451.1 482.7 516.3 598.9 697.8 .. 
Gross fixed capital formation 989.3 1,266.7 1,390.6 1,789.9 1,974.1 .. 
Change in inventories 10.3 14.4 15.7 17.9 17.5 .. 
Table I.1 (cont'd) 
                                                      
9 African Development Bank (2003), p. i;  and Treichel (2005), p. 3. 
10 World Bank (2005b). 
11 Real GDP growth over the past five years was es timated to have been more than 6% annually for 
Dar es Salaam but only 4% annually for the whole of Tanzania (IMF, 2005a). 
12 Treichel (2005), pp. 10 and 12-14. 
13 Economist Intelligence Unit (2005b), pp. 4-5. 
14 In Dar es Salaam, poverty is estimated to have declined from 28% to 18% during the last decade 
(IMF, 2004). 
15 During 2005/06, the BT's M3 and reserve money gr owth targets were 27% an d 26.6%, respectively; 
these targets were expected to allow an increase in credit to the private sector by about 32% (IMF, 2005b). EAC-Tanzania WT/TPR/S/171/TZA 
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   1999 2000 2001 2002  2003  2004a 
Exports of goods and services 885.9 1,064.8 1,284.7 1,520.5 1,900.0 .. 
Imports of goods and services 1703.8 1,676.3 1,962.8 2,106.9 2,857.4 .. 
Discrepancy 132.5 45.4 112.5 125.5 195.0 .. 
GDP per capita (US$)        
Mainland 242.6 261.7 252.9 265.2  269.9  302.1 
Zanzibar 198.4 216.4 222.5 235.0  268.9  303.0 
Real GDP  (percentage change) 
Mainland 4.7 4.9 5.7 6.2  5.7  6.7 
Zanzibar 7.6 3.6 9.1 8.5  6.7  6.2 
Non-monetary GDP/Nominal GDP, mainland  0.29 0.29 0.29 0.29  0.29  0.29 
Total credit/GDP  10.5 9.8 7.6 8.8  8.7  8.5 
Savings/real GDP, mainland  0.05 0.11 0.13 0.15  0.14  .. 
Consumer price index (end of period) 7.9 5.9 5.2 4.5  3.5  4.1 
Exchange rate (T Sh/US$, end of pe riod) 797.3 803.3 916.3 976.3  1,063.6  1,043.0 
Current account/GDP -11.3 -6.2 -5.3 -2.5 -4.1 -4.8 
Monetary sector (percentage change) 
Broad money (M2) 15.0 12.5 12.8 22.2 14.2 19.2 
Gross official reserves (US$ million) 776.0 974.0 1157.0 1529.0 2037.8 2296.1 
Gross official reserves (months of total imports) 4.2 5.7 6.3 8.4 8.9 8.4 
Share of real GDP (per cent) 
Agriculture, livestock, forestry, and fishing 48.9 48.1 48.0 47.5 46.7 46.4 
Mining and quarrying 2.1 2.3 2.5 2.7 3.0 3.2 
Manufacturing 8.3 8.3 8.3 8.4 8.6 8.8 
Electricity, gas, and water supply 1.7 1.7 1.7 1.6 1.6 1.6 
Construction 4.5 4.6 4.8 5.0 5.2 5.5 
Services (including public administ ration) 34.5 35.0 34.7 34.8 34.9 34.5 
Government finance 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 
Overall balance (including grants) to GDP, mainland -1.6 -0.8 -0.5 -0.8 -0.6 -5.2 
Total public debt stock (US$ mi llion) 8773.9 8401.2 8328.5 8109.7 8742.1 9087.4 
Memorandum        
Grants to GDPb 4.1 3.7 4.3 3.2 3.7 6.7 
External debt stock (per cent of GDP) 89.5 80.7 78.5 75.9 78.4 77.5 
External debt service as percentage  of exports 19.7 9.4 6.2 7.2 5.4 4.9 
Total external debt disbursement (U S$ million) 267.7 169. 7 184.8 277.3 317.3 190.2 
.. Not available. 
a Provisional. 
b Calculated using GDP measured at market prices. 
Note: Zanzibar's GDP represented around 2.4% of Tanzania's GDP  during 1999-04.  Mainland Tanzania's real GDP figures are 
calculated based on 1992, whilst Zanzibar's are based on 2001. 
Sources : Bank of Tanzania, Economic Bulletin for the Quarter ending in June 2005 , Vol. XXXVI, No.2;  for the Quarter 
ending in September 2002 , Vol. XXXIII, No.3;  Annual Report 2003/04 ;  data available at:  http://www.bot-tz.org; 
and IMF (2004), Tanzania:  Selected Issu es and Statistical Appendix , Country Report No. 04/284, September. 
8. Fiscal policy in Tanzania is aimed at reduc ing poverty, while maintaining macroeconomic 
stability within the context of Tanzania's Nationa l Strategy for Growth and Reduction of Poverty 
(NSGRP);  about 50% of the fiscal budget over 2005/06 was set aside for the implementation of the NSGRP.  Government expenditure increased from 19% of GDP in 1999/00 to 28% in 2004/05, mainly 
reflecting higher outlays for improving overall infrastructure, fighting HIV/AIDS, and implementing 
the Public Service Reform Programme.
16  Domestic fiscal revenues have risen over the last few years, 
in part due to the implementation of a new Income  Tax Act (particularly improvement in income and 
sales tax collection), the graduation of a number of tax-exempted companies into the tax net, and the 
                                                      
16 Bank of Tanzania (2005a). WT/TPR/S/171/TZA Trade Policy Review 
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 reforms of both the Tanzanian Revenue Authority and customs administration.17  Between 1999/00 
and 2004/05, grants almost tripled to reach T Sh 808 million.  Nevertheless, public expenditure grew 
at a higher rate than revenues, thus increasing the ov erall fiscal deficit (including grants) from 2% in 
1999/00 to around 6% in 2004/05. 
9. Total public debt stock increased from US$8. 7 billion in 1999/00 to US$9.1 billion in 
2004/05 (approximately 82% of GDP).18  Government debt constitutes 85% of total debt;  the 
remaining 15% is private debt. Around 68% of di sbursed debt in 2004/05 was multilateral while 22% 
was bilateral.  The remaining debt was sp lit between commercial debt, which constituted  6% of total 
disbursed debt, and export credits with 2%.  Th roughout the period under review, a large part of 
public debt was used in support of the balance of payments (22% on average). As at 2004/05, public 
debt (including public corporations) accounted for 93%  of total debt; whilst private debt accounted for 
the remaining 7%.  Debt service/paymen t still limits Tanzania's economic growth.19 
(3) TRADE AND INVESTMENT PERFORMANCE  
10. During 1999-04, Tanzania's overa ll balance of payments registered deficits in each year 
(except in 2003), with a peak of US$809.6 million in 2001 (Table I.2). The current account deficit 
contracted as a proportion of GDP from 10% to 4% , due mainly to an expansion of non-traditional 
exports.  However, this was offset by significant reductions in the capital account as well as in the 
financial account (annual average growth (a.a.g.) of -6% and -66% respectively over the period under 
review).  Current transfers, as a proportion of GDP, remained stable at around 5.2% during the same period.   
Table I.2 
Balance of payments, 1999-04 
(US$ million)  
 1999 2000 2001 2002 2003 2004a 
Current account -761.9 -495.8 -436.7 -214.7 -384.2 -456.7 
Goods:  exports f.o.b. 542.8 663.3 776.4 902.5 1,129.2 1,334.9 
    Traditional 301.2 292.8 231.1 206.1 220.5 292.3 
    Non-traditional 242.1 370.5 545.3 696.5 908.7 1,042.6 
Goods:  imports f.o.b. -1,368.2 -1,367.6 -1,560.3 -1,511.3 -1,933.5 -2,281.2 
Services:  credit 622 627.3 679.3 668.6 686.6 885.9 
Services:  debit -873.2 -682.4 -642.1 -668.5 -769.5 -1,002 
Income:  credit 43.1 50.4 55.3 67.9 87.1 81.8 
Income:  debit -191 -180.4 -140.5 -90.6 -131 -122.1 
Current transfers 462.6 393.6 395.3 416.6 546.9 646.1 
    Current transfers:  credit 553.3 472.1 474.8 477.9 609.9 711.4 
    Current transfer:  debit -90.7 -78.5 -79.5 -61.3 -63 -65.3 
Capital account 399.7 330.4 361.5 355.4 358.2 293.6 
Capital transfers:  credit 399.7 330.4 361.5 355.4 358.2 293.6 
    Other  0 15.7 22.3 30.1 37.3 39.9 
Financial account, excl. res erves and related items 706 369.2 -501.9 0 -5.6 3.2 
Direct investment in Tanzania 516.7 463.4 327.2 240.4 247.8 260.2 
Other investment 188.6 -94.2 -829.1 -240.4 -253.4 -257 
    Assets 14.8 -134 -76.7 2.9 -59 -11 
    Liabilities 173.7 39.9 -752.5 -243.3 -194.4 -245.9 
Table I.2 (cont'd) 
                                                      
17 IMF (2005b).  
18 Bank of Tanzania (2005a). 
19 In this regard, the Government has continued negotiations with both Paris and non-Paris Club 
bilateral creditors for debt relief, but progress has been slow (IMF, 2005b). EAC-Tanzania WT/TPR/S/171/TZA 
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  1999 2000 2001 2002 2003 2004a 
Net errors and omissions -421 -290.3 -232.5 -253 101.6 61.8 
Overall balance -77.3 -86.3 -809.6 -112.4 69.9 -98.1 
Reserves and related items 77.3 86.3 809.6 112.4 -69.9 98.1 
Reserve assets -175.4 -198.8 -182.2 -372.4 -508.8 -258.4 
Use of Fund credit and loans 51.3 49.4 15.6 26 -2.9 -33.8 
Exceptional financing 201.4 235.7 976.2 458.8 441.8 390.2 
    Rescheduled debt 130 10.1 131.4 9.8 86.6 106.3 
    Interest arrears 92.7 81.2 67.4 18.4 29.5 18.2 
    Principal arrears 55.9 95 135.2 0.4 6.2 0.0 
a Provisional. 
Source : Bank of Tanzania, Economic Bulletin for the Q uarter ending in June 2005 ;  and for the Quarter ending in 
September 2002 . 
(i) Trade in goods and services 
11. During 1999-04, the value of exported goods more  than doubled to reach 12% of GDP in 
2004, due mainly to an annual increase of 34% in  non-traditional exports (Table I.2), such as 
minerals, especially gold;  floricu lture and horticulture products;  fish , notably Nile perch;  and certain 
manufactured products. The merchandise trade account, however, remained in deficit of around 8% of 
GDP (after 1999), although the value of exports increased  faster than that of imports.  The deficit in 
services trade (as a proportion of GDP) shrank from 3% to 1% during the same period, owing to 
performance in transport and other services (e.g. financial services and tourism). 
12. Exports plus imports of goods and services increa sed slightly to reach 50% of GDP in 2003.  
The increase in imported goods in 2003 was due la rgely to the expansion of certain economic 
activities, such as mining, manufacturing, tourism, and construction.  In general, services receipts 
have come primarily from tourism, which has grow n markedly since 2000.  In 2003, Tanzania ranked 
106th amongst world merchandise exporters (considering the EC as one entity and excluding intra-EC 
trade), and 98th amongst importers.  For trade in services, it ranked 83rd as an exporter and 88th as an 
importer.20 
13. During 1999-04, Tanzania's export base change d significantly (Chart I.1).  Agricultural 
exports as a proportion of total expor ts, particularly coffee (a traditional export products), decreased at 
an annual average of 13% (Table AI.1).  Ores (toge ther with concentrates of precious metals), and 
gold exports grew significantly during the period, reaching US$113 million and US$525 million, respectively, in 2004.  Manufactured exports remained  at about the same level, at an annual average 
of 13% of total exports.   
14. Total merchandise imports increased each year durin g 1999-04 (except in 2002), at an a.a.g. 
rate of 10%, in part reflecting Tanzania's macro economic consolidation and the gradual opening of its 
domestic markets (Table AI.2).  Manufactured goods continued to be the ma in import product (around 
68% of total imports during 1999-04);  machiner y and transport equipment were the principal 
imported merchandise (an average of 34% of total im ports) (Chart I.1).  During the period, the share 
of mining imports increased significantly at an annua l average rate of 14% (US$ 440 million in 2004), 
mainly reflecting higher world oil prices in recent year s.  Imports of fuels increased almost six-fold in 
2003, and have remained at around this level (U S$401 million in 2004), while motor vehicle imports, 
both as a proportion of total imports and in value, remained roughly the same during the review period. 
                                                     
 
20 WTO (2005). WT/TPR/S/171/TZA Trade Policy Review 
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 0%20%40%60%80%100%
1999 2000 2001 2002 2003 2004
0%20%40%60%80%100%
1999 2000 2001 2002 2003 2004Chart I.1
Structure of merchandise trade, 1999-04
(a) Exportsa
(b) Imports
a
Source:Includes re-exports.
WTO Secretariat calculations, based on UNSD, Comtrade database (SITC Rev.3 data).Coffee, not roasted
Electrical machines Iron and steelFood Chemicals Transport equipment
Other semi-manufactures Fuels OtherFish fillets and other fish meat Other food
Edible nuts, fresh or dried Agricultural raw materials
Tobacco, wholly or partly 
stemmed or stripped
Other primary products
Non-electrical machinery Other primary productsOther manufacturesPrecious stones
Ores and concentrates of 
precious stonesGold
 EAC-Tanzania WT/TPR/S/171/TZA 
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 15. During 1999-04, Europe consolidated its position as Tanzania's main export market while the 
rest of the world, with the exception of Afri ca, absorbed increasingly fewer Tanzanian exports 
(Table AI.3).  In 2001, the share of Europe peaked  at almost 60% of total exports;  exports to the 
United Kingdom increased more than seven-fold duri ng the period, partly due to rising exports of 
gold, fish and fish products, as well as floricu lture and horticultural products. Apart from Africa, 
where Tanzanian exports expanded slightly (as a proportion of total expor ts) to US$273 million in 
2004, the proportion of exports to the rest of the worl d contracted at an annual average rate of 7.7%;  
Asia's share contracted the most, at an annual average rate of 7.5% (Chart I.2). 
16. Between 1999 and 2004, Asia strengthened its position as the principal exporting region to 
Tanzania, increasing its share to 50% of total imports  in 2004, up from 37% in 1999 (Table AI.4).  
During the same period, Europe's share decreased to  20% (from 33.3%) and Africa's remained at 20% 
(Chart I.2).  As a single source, however, South Af rica became the main exporter to Tanzania, with a 
total of US$331 million in 2004, followed by India and the United Arab Emirates, with 
US$218 million and US$185 million, respectively.   
17. During 1999-04, the services account fluctuated, w ith deficit in each year, except 2001 and 
2002.  Exports of transport services increased at an annual average rate of 8.1% (US$80 million), 
while imports decreased until 2002 and then incr eased to US$250 million in 2004.  These were due 
mainly to increases in exports of passenger transport services and in imports of freight services.  Personal travel services were significant, both in exports and imports, with estimated averages of 
US$462 million and US$362 million, respectively, dur ing 1999-04;  these represented the principal 
post of the balance of payments.  The value of fina ncial services (excluding insurance) is low both in 
exports and imports, with an estimated yearly total of US$4 million each.  Exports and imports of insurance services each increased more than seven-fold annually, to cap an estimated US$55 million 
and US$80 million, respectively.  Rising foreign in vestment inflows and the expansion of economic 
growth in general may explain the increase in dema nd for insurance services.  Exports of government 
services increased significantly in 2000, after whic h they remained steady (around US$57 million) 
until 2004;  imports decreased until 200, then  increased to about US$42 million in 2004. 
 WT/TPR/S/171/TZA Trade Policy Review 
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 0% 20% 40% 60% 80% 100%199920002001200220032004Chart I.2
Direction of merchandise trade, 1999-04
0% 20% 40% 60% 80% 100%199920002001200220032004(a) Exportsa
(b) Imports
a
Source:Includes re-exports.
WTO Secretariat calculations, based on UNSD, Comtrade database (SITC Rev.3 data).South Africa IndiaOther Asia Other EU(15)United Kingdom Kenya China
Japan The Netherlands Uganda
Other Asia IndiaBahrain Other EU(15)
South Africa United Arab EmiratsChina United Kingdom Other Africa
OtherAmerica Japan KenyaOther Africa
Other
 EAC-Tanzania WT/TPR/S/171/TZA 
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 (ii) Investment 
18. Tanzania continued to be successful in attrac ting foreign direct investment (FDI) during the 
period under review, although some challenges rema in.  During 1999-04, FDI was associated mainly 
with the privatization of numerous state-owned co mpanies and the exploitation of mineral resources 
(particularly gold) (Chapter III(4)(iii)).21  As a result, FDI inflows increased from an annual average 
of US$30 million during 1985-95 to an average of US$462 million over 1999-04 (Table I.3).  In 2004, 
Tanzania's FDI stock reached 48% of GDP (US $5,203 million), well above the average of African 
countries as a whole (27.8%) and of deve loping countries in general (26.4%).22 
Table I.3 
Investment, 1985-04 
(US$ million) 
 1985/95a 1999 2000 2001 2002 2003 2004 
FDI inflows 30 542 338 467 430 527 470 
FDI inflows (% of gross fixed capital formation) 3.6 .. 21.3 29.4 23.2 27.7 21.9 
FDI inward stock 388b 2,496 3,038 3,776 4,206 4,733 5,203 
FDI inward stock (% of GDP) 9.1b 28.9 33.4 39.9 44.7 47.2 48.0 
.. Not available. 
a Annual average. 
b Data for 1990. 
Source:  UNCTAD (2005), World Investment Report .  Available at:  http://www.unc tad.org/sections/dite_dir/docs/ 
 wir05_fs_tz_en.pdf. 
19. FDI inflows to Tanzania totalled US$467 milli on in 2001, a contraction of US$75 million in 
comparison with the 1999 level; FDI was concentrated in communication services (34%), manufacturing (12%), and agriculture (10%), with th e latter recording an increase in FDI inflows after 
years of subdued investment level.
23  Inflows in 2001 originated principally from South Africa 
(US$179 million), followed by the United Kingdom (US$83 million), and Switzerland 
(US$24 million).  During 1999-01, mainland Tanzania  accounted for about 95% of FDI stock, and 
Zanzibar for the remaining 5%;  in terms of FDI flows, the proportion was around 99% to 1% in 
favour of mainland Tanzania.24  In general, in 2004, Tanzania ranked 36th out of 140 countries in 
UNCTAD's Inward FDI Performance Index, compared with 58th place in 200325;  it ranked 126th in 
2003 (128th in 2000) in UNCTAD's Inward FDI Potential Index.26 
20. A 2002 study found that Tanzania had opportunities fo r future FDI, but some issues needed to 
be tended.27  These were:  completing the privatization programme, improving infrastructure, 
expanding and consolid ating international markets, improving domestic competitiveness, and 
implementing technology policy catering to the private sector's needs.  The harmonization of 
mainland Tanzania and Zanzibar's foreign investment  regimes would also help to attract further FDI 
(Chapters II(4) and III(4)(i)). 
                                                      
21 Missions économiques (2005). 
22 UNCTAD (2005). 
23 Bank of Tanzania (2004).  
24 Bank of Tanzania (2004). 
25 UNCTAD's Inward FDI Performance Index measures  the extent to which host countries receive 
inward FDI and ranks countries by the amount of FDI they receive re lative to their economic size.  
26 UNCTAD's Inward FDI Potential Index measures the extent to which host countries receive inward 
FDI and ranks countries by the amount of FDI th ey receive relative to their potential.   
27 UNCTAD (2002), pp.1-2. WT/TPR/S/171/TZA Trade Policy Review 
Page A2-142 
 
 
 21. Some measures have been implemented to impr ove the investment climate.  A new business 
licensing system that substantially reduces the a pproval period was approved recently;  the National 
Anti-Corruption Strategy and Action Plan (NACSAP)  is under way;  and the Investment Act was 
amended to further improve the incentives schemes available to investors (Chapter II(4)).  Other 
measures taken by Tanzania to improve its inv estment regime include transforming the Tanzania 
Investment Center (TIC) into a one-stop cen tre, implementing the Business Environment 
Strenghtening for Tanzania (BEST), and the formati on of the Tanzania National Business Council 
(TNBC). 
(4) OUTLOOK  
22. Real GDP growth is expected  to increase to 7% in 200628;  and to remain at this level under 
the NSGRP, until 2010.  Tourism-related activities29, and mining are expected to contribute to this 
performance.  Inflation (measured by changes in the consumer price index) is expected to decrease to 
4% by 200630, and to remain between 4% and 5% in the medium term, with lower food prices 
offsetting higher fuel costs.  The  public deficit (including grants) is expected to be at around 5% of 
GDP because of increased expenditure for poverty reduction, despite the positive impact of tax 
reforms on public revenue.  The current account deficit (i ncluding transfers) is expected to deteriorate 
further to 6-7% of GDP, mainly because of project ed increases in the merchandise trade deficit, as a 
result of, inter alia , surges in world prices of petroleum products. 
23. FDI is expected to increase as Tanzania  moves along its privatization programme. 
Hydrocarbons can be expected to further boost FDI into the country, and thereby economic growth, if 
discovered in quantities that can be commercialized.  Further investment in infrastructure should be 
expected, particularly in rural areas.31  However, further deterioration of Tanzania's terms of trade, 
with decreasing commodity prices, might increase th e external trade and current account deficits, and 
further  endanger its debt repayment capability.  The full establishment of the EAC customs union 
should foster the harmonization of trade policie s between the members, and between mainland 
Tanzania and Zanzibar; this is likely to increase regional trade. 
                                                      
28 IMF (2004), p. 23. 
29 Economist Intelligence Unit (2005b), p. 5. 
30 IMF (2005c). 
31 The Government is trying to make rural areas more  accessible in order to boost farm gate prices and 
reduce prices of manufactured goods.  A number of ro ads and bridges are being built for this purpose.  EAC-Tanzania WT/TPR/S/171/TZA 
 Page A2-143 
 
 
 II. TRADE AND INVESTMENT REGIMES  
(1) GENERAL FRAMEWORK  
1. The United Republic of Tanzania was formed by the union of Tanganyika (now mainland 
Tanzania) and Zanzibar on 26 April 1964.32 All state authority is exercised and controlled by the 
Government of the United Republic of Tanzan ia (Union Government) and the Revolutionary 
Government of Zanzibar.33 The first has authority over all union matters in the United Republic and 
over all subjects concerning mainland Tanzania, while  the latter has authority in Zanzibar over all 
non-union matters. Issues such as investment, govern ment procurement, privatization, competition, 
intellectual property, and sectoral strategies (e.g. agriculture, tourism, communications, transport, 
finance and land) are considered non-union matters  and therefore fall under the prerogative of the 
Zanzibar Government. Defence, hom e and foreign affairs, and fore ign trade policy fall within the 
purview of the Union Government. However, Zanzib ar has its own framework for domestic trade and 
export promotion strategies. 
2. The Tanzanian legal system is based on British common law.34 In general, policies are 
formulated and implemented by means of laws. The le gislative process calls for bills to be introduced 
by the Executive. Committees with jurisdiction review  proposed legislation prior to its tabling.  
Legislation goes through three readings in Par liament. Once a bill is passed, Presidential assent is 
required for enactment. The President can withhold assen t, but if the Parliament resubmits the bill for 
Presidential assent after a six month waiting period, the President must either grant assent or dissolve Parliament and call for new elections. When assen t is given, legislation is published in the Official 
Gazette  and implemented by the relevant minister ial authorities. Zanzibar's own House of 
Representatives can make laws for Zanzibar wit hout the approval of the Union Government.  
3. The bulk of Tanzania's trade legislation has rema ined largely unchanged since its last Review. 
Tanzanian legislation relating to international trade is  contained in a variety of statutes (Table II.1).  
In the hierarchy of Tanzanian legal in struments, the Constitution is supreme
35, followed by Acts of the 
National Assembly, subsidiary legislation, minist erial orders, regulations, and rules promulgated 
under specific laws. Treaties/international agreem ents, including the WTO Agreements, do not have 
the force of law, but rather are implemented through the normal national legislative process. In case of inconsistency between national la w and treaties/international agre ements, the national provisions 
prevail. 
4. Since 1 January 2005, some of Tanzania's tr ade policy instruments, customs tariffs in 
particular, have been set at the East A frican Community (EAC) level (Common Report, 
Chapter III(2)).  Otherwise, Tanzania's overall ins titutional framework is broadly unchanged since its 
previous Review.
36 The Ministry of Industry, Trade and Marketing (MITM), previously the Ministry 
                                                      
32 Tanganyika became independent on 9 December 1961, and a Republic in 1962. Zanzibar became 
independent on 10 December 1963, and the People's Repub lic of Zanzibar was estab lished on 12 January 1964. 
(Government of Tanzania online information. Availa ble at: www.tanzania.go.tz/government/index.html). 
33 The Union Government and Zanzibar's Government each have executive, judiciary, and legislative 
organs.  In addition, loca l government authorities assist  each central government. 
34 The legal system in Tanzania evolved largely from British common law as a result of British rule 
over Tanganyika from 1919 until independence in 1961.  Th e legal system of Zanzib ar has evolved from both 
British common law and Islamic law. 
35 The Constitution of the United Republic of Tanzania was adopted in 1977, and has since been 
amended.  Zanzibar's Constitution dates back  to 1985, and has since been amended. 
36 See WTO (2000). WT/TPR/S/171/TZA Trade Policy Review 
Page A2-144 
 
 
 of Industry and Trade (MIT), continues to have th e leading role in formulating, implementing, and 
coordinating Tanzania's trade-related policies. De pending on the nature of the issue, the MITM 
consults with relevant ministries a nd other institutions that also take part, directly or indirectly, in 
trade policy formulation and/or implementation, including:  the Ministry of Finance, including the 
Tanzanian Revenue Authority;  Ministry of Foreign Affairs and International Co-operation;  Ministry 
of Agriculture, Food Security and Co-operatives;  Mi nistry of Livestock Development;  Ministry of 
Infrastructure Development;  Ministry of Energy and Minerals;  Ministry of Natural Resources and 
Tourism;  Ministry of Health and Social Welfare;  President's Office;  Bank of Tanzania;  Board of 
External Trade; Parastatal Sector Reform Commission;  Tanzania Petroleum Development 
Corporation;  Tanzania Communications Regulatory Au thority;  Tanzania Civil Aviation Authority;  
and Surface and Marine Trans port Regulatory Authority. 
Table II.1 
Trade-related laws, 2006  
Area Law 
Customs EAC Protocol, 2005 
 EAC Customs Management Act, 2005 
 Customs Tariff Act, 1976 
 Excise Tariff Ordinance, Cap 332 
 Finance Act, 1999 
Licensing of businesses Business Licensing Act, 1972 
 Companies Ordinance, Cap 212 
Taxation Value Added Tax Act, 1997 
Import/Export control Import Control Ordinance 
 Export Control Act 
 Foreign Exchange Act, 1992 
 Anti-dumping and Counter vailing Measures Act, 2004 
Sanitary and phytosanitary measures  Food, Drugs and Cosmetics Act, 2003 
 Animal Disease Act, 2003 
 Veterinary Act, 2003 
 Plant Protection Act, 1997 
Foreign investment Mainland Ta nzania Investment Act, 1997 
 Zanzibar Investment Promotion and Protection Act, 2004 
Mining Mining Act,1998 
Petroleum  Petroleum Exploration and Production Act, 1998 
Export processing zones Mainland Tanzan ia Export Processing Zones Act, 2002 
 Zanzibar Free Economic Zones Acts, 1992 (amended in April 1997) 
Government procurement Public Procurement Act, 2004 
Competition Fair Competition Act, 2003 
Intellectual property rights Main land Tanzania Patents Act, 1987 
Zanzibar Decree on Patents, 1932 
 Mainland Tanzania Trade and Service Marks Act, 1986 
 Mainland Tanzania Copyright Act, 1989 
Financial services Financial Laws Act 
 Banking and Financial Institutions Act, 1991 
 Insurance Act, 1996 
Telecommunications and postal services Communications Act, 1993 
 Telecommunication Incorporation Act, 1993 
 Tanzania Telecommunications Regulations Authority Act, 2003 
Transport Transport License Act, 1973 
 Surface and Marine Transport Regulatory Act, 2001 
 Railways Act, 2003 
 Ports Act, 2004 
Source : WTO Secretariat, based on information provided by the Tanzanian authorities.  EAC-Tanzania WT/TPR/S/171/TZA 
 Page A2-145 
 
 
 5. The private sector and NGOs continue to provide input into trade policy formulation 
primarily through trade associations (e.g. Confed eration of Tanzanian Industries, and Tanzanian 
Chamber of Commerce, Industry and Agriculture). Th ese associations participate, for example, in the 
negotiations regarding the EAC by presenting their in terests or concerns. The views of the private 
sector, including NGOs, are customarily taken into  consideration throughout the process, on an ad hoc  
basis. There are no independent bodies with a fo rmal mandate to carry out public review or 
assessment of the Government's trade policy. 
6. The judiciary is headed by the Court of A ppeal, which has jurisdiction over the United 
Republic of Tanzania.37  Under the Court of Appeal there are two high courts, one for mainland 
Tanzania and the other for Zanzibar. The United Re public of Tanzania has a five-level judiciary 
combining tribal, Islamic, and British common law.  Appeal is from the primary courts through the 
district courts, resident magistrate courts, to the high courts, and Court of Appeal.  Judges are 
appointed by the President.   
(2) POLICY OBJECTIVES  
7. The main objectives under both the National Stra tegy for Growth and Reduction of Poverty 
(NSGRP), the centrepiece of Government policy during 2005-10, and the Tanzanian Development 
Vision 2025, are:  accelerating GDP growth to between 8-9% during 2005- 10 and 10% after 2010; 
increasing GDP per capita to about US$3,000 by 2025;  reducing poverty, particularly in rural areas 
(around 80% of the poor live in rural areas)38; improving quality of life and social well-being;  and 
good governance and accountability.  The private sector is envisaged as the engine of growth, while 
the Government is to continue to implement the Public Service Reform Programme (PSRP) in order 
to improve public services.39 
8. The National Trade Policy (NTP) was launched in February 2003 for competitive and export-
led growth, where trade liberalization and investme nt promotion are key elements of Tanzania's 
overall development framework.  The main goal of Tanzania's NTP is "to facilitate smooth integration 
into the multilateral trading system and roll back  the gradual descent towards marginalisation".40   
9. One of the main objectives under Tanzania's Sustainable Industrial Development Policy 
(SIDP) for 1996-2020, is the streamlining of me chanisms for export development strategy by:  
improving the infrastructure;  strengthening the institutional reform;  deepening the macroeconomic and legal framework;  and enhancing the competiti veness in areas where Tanzania has comparative 
advantages by, inter alia , addressing supply-side constraints. Other key objectives include transit and 
border trade, importation management, internal mark eting and distribution, fair competition law, and 
business licensing and related institutional framework.
41 
                                                      
37 All cases tried in Zanzibar, except those involv ing constitutional issues and Islamic law, can be 
appealed to the Court of Appeal. 
38 Some of the targeted specific constraints to GDP growth and poverty reduction are poor 
infrastructure, limited access to credit, structural impediments to agriculture  and exports (e.g. inefficient crop 
boards, cumbersome business licensing requirements, and substandard technology), and generally low 
productivity and capacity constraints (UNCTAD and ICC, 2005). 
39 IMF (2005b). 
40 Ministry of Industry and Trade (2003). 
41 Ministry of Industry and Trade (1996).  WT/TPR/S/171/TZA Trade Policy Review 
Page A2-146 
 
 
 (3) TRADE AGREEMENTS  
10. Tanzania participates in the multilateral tr ading system. Tanzania's most recent WTO 
notifications are listed in Table II.2.42  An Inter-Institutional and Technical Committee on the WTO 
meets annually to review issues pertaining to the multi lateral trading system.  Tanzania's trade-related 
technical assistance needs are broadly similar to those of the other EAC members (Common Report, 
Chapter II(1)). 
Table II.2 
Tanzania's notifications to the WTO, as of July 2006  
WTO Agreement WTO document Requirement 
Sanitary and Phytosanitary Measures   
Article 7, Annex B  G/SPS/N/TZA/1, 8 January 1999  
+ Corr.1, 20 April 1999 Transparency of Regulations 
– Regarding Harmonized East African Standards 
Article 7, Annex B 
(para 3)  G/SPS/ENQ/18, 20 December 2004 National Enquiry Point 
Technical Barriers to Trade   
Annex 3 (c)  G/TBT/CS/N/78, 2 September 1997 Acceptance of Code of Good Practice on Voluntary 
Standards 
Article 10.7  G/TBT/10/7/N/19, 27 January 1999 Agreement with another country on TBT issues 
Articles 10.1 and 10.3  G/TBT/ENQ/26, 7 March 2005 National Enquiry Point 
Customs Valuation   
Article 20.1  WT/LET/120, 13 November 1996 Deferred application 
Article 23 G/VAL/N/2/TZA/1, 3 March 2004 Answers to questions on the checklist of issues  
Anti-dumping Measures   
Article 16.4  G/ADP/N/126/Add.1, 1 April 2005 Semi-a nnual report on anti-dumping actions 
Subsidies and Countervailing Measures   
Article 25.11  G/SCM/N/106/Add.1/Rev.2, 7 April 2005 Semi-annual repor t on countervailing actions 
General Agreement on Tariffs and Trade (GATT 1947)   
Article XXIV (para 7)  WT/COMTD/N/3, 29 June 1995 Treaty establishing the Common Market for Eastern and 
Southern Africa 
Source : WTO documents.  
11. Tanzania is a member of the EAC, the Regiona l Integration Facilitation Forum (RIFF), and is 
granted non-reciprocal trade preferences by the EC  under the Cotonou Agreement and the Everything-
but-Arms (EBA) initiative, the U.S. AGOA, and th e GSP schemes of mainly Australia, Canada, EC, 
Japan, New Zealand and the United States (Common Report, Chapter II(4)).  Tanzania is also 
engaged in the Southern African Development Co mmunity (SADC) (Common Report, Chapter II(3)).  
Tanzania is considering re-entering the Co mmon Market for Eastern and Southern Africa 
(COMESA), from which it withdrew in 2000 (Common Report, Chapter II(2)).43  In addition, 
Tanzania has participated in the Agreement on the Global System of Trade Preferences among 
Developing Countries (GSTP) since 19 April 1989.  Under the GSTP, India and Turkey grant 
preferential access to Tanzania.44 
                                                      
42 Tanzania's latest notification status is indicated in WTO document G/L/223/Rev.13, 
28 February 2006. 
43 Tanzania decided to leave COMESA  mainly because its regional in tegration interests were thought 
to be better served by its membership in SADC.  Concerns about revenue losses as a result of ongoing 
COMESA trade liberalization are also believed to have contributed to the decision. Nevertheless, Tanzania 
continues to be influenced by trade policy developments in COMESA, not least because the two other current 
EAC members, Kenya and Uganda, are bo th members of COMESA (WTO, 2000). 
44 WTO documents WT/LDC/HL/20, 23 October 1997; and WT/COMTD/W/39, 30 March 1998. EAC-Tanzania WT/TPR/S/171/TZA 
 Page A2-147 
 
 
 (4) INVESTMENT FRAMEWORK  
12. Tanzania has concluded bilateral treaties for th e promotion and protection of foreign direct 
investment with: Denmark (not yet in force), Egypt (not yet in force), Finland, Germany, Italy, Republic of Korea (not yet in force), Mauritius,  the Netherlands, Switzerland, the United Kingdom, 
and Zimbabwe.  Tanzania has also  signed bilateral investment tr eaties for the avoidance of double 
taxation with Canada, Denmark, India, Italy,  Kenya, Norway, Sweden, Uganda, and Zambia.
45 
13. Tanzania is a signatory of the Convention Esta blishing the Multilateral Investment Guarantee 
Agency (MIGA).46  It is a member of the International Centre for the Settlement of Investment 
Disputes. 
14. Investment (local and foreign) is consider ed a non-Union matter and therefore mainland 
Tanzania and Zanzibar continue to ha ve different investment programmes. 
(i) Mainland Tanzania 
15. The institutional and legislative framework gove rning investment in mainland Tanzania has 
remained basically unchanged since its last Review.  It is still based on the Tanzania Investment Act, 
No. 26 of 1997, which established the Tanzanian Inv estment Centre (TIC) as the agency responsible 
for administering the Act, and as a one-stop centre to  deal with both foreign and local investment. An 
entity needs to be legally establis hed and registered as a Tanzanian business with the Registrar of 
Companies and the Tanzania Revenue Authority befo re the TIC can issue certificates of investment.47 
The threshold for TIC involvement is US$300,000 fo r foreign investment and US$100,000 for local 
investors.48  The TIC currently charges fees for: certif icates of incentives (US$750); application forms 
(US$100); and other services, such as work permits (10% of what is charged by the relevant 
department). With a few exceptions, 100% foreign ownership is permitted in most sectors. Between 
1990 and May 2003, the TIC registered 2,288 project s with total investment of US$11.9 billion;  
manufacturing projects represented 43.1% of the total number of projects, followed by tourism (16.2%), construction (7.8%), and agriculture and livestock (7.1%).
49 
16. Special duty and tax incentives are granted to lo cal and foreign companies involved in "lead" 
and "priority" activities (Table II.3). Lead activities include: agriculture, agri-based industries, mining, 
petroleum and gas, tourism, and economic infra structure (e.g. road, railway, port facilities, 
telecommunication). Priority activities include: ma nufacturing, natural resources (e.g. fishing and 
forestry), aviation, commercial building, financia l services, transport, broadcasting, human resource 
development, and export-oriented projects.50 
17. The Investment Act also allows for enhanced in centives for investments th at are considered to 
be strategic to the economy.  The additional in centives are at the discret ion of the responsible 
Minister. The Act does not define the term "strateg ic investment" but, currently, investment in the 
sugar industry would fall under this provision. 
                                                      
45 UNCTAD (2005). 
46 MIGA online information.  Available at:  http://www.miga.org. 
47 Part III, Section 17 (1-8) of the Act. 
48 The TIC has no legal authority to deny investment, but no benefits are granted under the Investment 
Act unless the investment is above the threshold. 
49 Tanzanian Investment Centre online information.  Available at: www.tic.co.tz/Ipa. 
50 Tanzanian Investment Centre online information.  Available at: www.tic.co.tz/Ipa. WT/TPR/S/171/TZA Trade Policy Review 
Page A2-148 
 
 
 Table II.3 
Investment incentives in mainland Tanzan ia to lead and priority sectors, 2006 
  Duty (%) VAT Other (%) 
Lead sectors    
  Agriculture    
    All capital goods 0 Deferred  
    Agricultural machiner y/equipments 0 Exempt  
    Fertilizers and pesticides 0 Exempt  
    Farms implements a nd other inputs 0 Exempt  
    One non-utility administrative vehicle 0 Deferred  
    Corporate tax   30 
    Capital allowance   100 
    Withholding tax on interest on foreign-sourced loan   0 
    Withholding tax on dividends   10 
    Losses carried forward for five years     
  Mininga, petroleum, and gasb    
    All capital goods 0 Relieved  
    Spare parts 0 Relieved  
    Explosive and other supplies 0 Relieved  
    Fuel and oils 0 Relieved  
    Corporate tax   30 
    Capital allowance   100 
    Resident and non-resident wit hholding tax on technical services   3 
  Economic infrastructurec    
    All capital goods 0 Deferred  
    Spare parts 0 Deferred  
    Vehicles 0 Deferred  
    Corporate tax   30 
    Capital allowance   100 
    Withholding tax on dividends   10 
    Withholding tax on interest on foreign-sourced loan   0 
    Losses carried forward for five years    
  Tourism    
    All capital goods 0 Deferred  
    Hotel facilities, e.g. carp ets, furniture, etc. 0 Deferred  
    One non-utility administrative vehicle 0 Deferred  
    Vehicles for tour operators 0 Deferred  
    Corporate tax   30 
    Capital allowance   100 
    Withholding tax on dividends   10 
    Withholding tax on interest on foreign-sourced loan   0 
    Losses carried forward for five years    
Priority sectors    
Capital goods 0 Deferred  
Raw materials 0 20%  
One non-utility administrative vehicle 0 Deferred  
Replacement industrial parts for the rehabilita tion of privatized enterprises 0 Deferred  
Corporate tax   30 
Capital allowance   100 
Withholding tax on dividends   10 
Withholding tax on interest on foreign-sourced loan   0 
Losses carried forward for five years    
a Additional incentives are available under the Mining Act (Chapter IV(3)(i)).  
b See Chapter IV(3)(ii)(b )) for details on incentives available for investments in petroleum and gas activities. 
c Other incentives, as applicable in the mining sector, and provisi on of strategic investors status with incentives beyond thos e 
provided to normal investors. 
Source:  Information provided by the Tanzanian authorities.  EAC-Tanzania WT/TPR/S/171/TZA 
 Page A2-149 
 
 
 18. Enterprises engaging in the mining sector are required to follow the approval process 
contained in the 1998 Mining Act. Ownership of minera ls is vested in the State, and mining activities 
are subject to licensing requirements (Chapter IV(3)(i)). There is no requirement for local participation or equity ownership in a foreign inv estment in mining. Royalties in the sector are set at 
3% of the netback sales value (in U.S. dollars), except for diamonds on which a 5% royalty is in 
effect.  
19. Petroleum exploration and development are gove rned by the 1980 Petroleum Exploration and 
Production Act, and the 1981 Petroleum Conservation Act. The legislation vests title to petroleum 
deposits within Tanzania in the State, and is d esigned to create a favourable legal environment for 
exploration by oil companies.  It permits the Gove rnment to enter into a petroleum agreement under 
which an oil company may be granted exclusive ri ghts to explore for and produce petroleum. On the 
basis of the Model Production Sharing Agreement of  1995, the Ministry of Energy and Minerals, 
operating through the Tanzania Petroleum Developm ent Corporation (TPDC), participates in five 
production sharing agreements (PSAs) with oil co mpanies (Chapter IV(3)(ii)). No royalties are 
imposed on oil companies.  All royalties and income  tax are paid by the TPDC through its share as 
part of the PSA.
51  
20. Under the 1999 Land Act, all land in mainland Ta nzania belongs to the State. However, there 
are three types of land ownership:  (i) the governme nt grants right of occupancy to nationals (from 
5 to 99 years, renewable);  (ii) TIC derivative rights range between 5-98 years (foreign investors can 
acquire land under these provisions);  and (iii) sub-l eases created out of granted right of occupancy by 
the private sector.52 
(ii) Zanzibar 
21. Zanzibar has its own investment provisions; these are governed by the Investment Act of 
2004, which provides for investment procedures, and o ffers incentives to invest ors. Zanzibar's highest 
priority in promoting foreign investment is to st rengthen capital inflows.  Accordingly, enterprises 
that are net foreign exchange earners are given the highest priority. The Zanzibar Investment 
Promotion Authority (ZIPA) provides a focal point for prospective investors and a necessary link to 
government. ZIPA acts as a one-stop facilitator fo r investors, and is also responsible for 
administration, control, and management of  Zanzibar's Freeport and Free Economic Zones 
(Chapter III(3)(v)). 
22. Although 100% foreign ownership is permitted in most sectors, Zanzibar maintains some 
restrictions in small retail businesses and tourist oper ations, and in small-scale fishing. Investments in 
Zanzibar must be approved by ZIPA. The minimum foreign direct investment necessary to benefit from incentives ranges from US$150,000 for services to  US$4 million for hotels (Table II.4).  All 
capital goods brought in during the start-up of an inv estment are assessed free of charge, but a service 
fee of 5% of the duty payable is levied. Zanzibar's Minister of Finance has the discretion to grant tax 
holidays of between one and five years.   
23. The Zanzibari Government has identified the following sectors as deserving particular 
attention: agriculture (food crops, tropical fruit, spices, rubber, tobacco, and sugar); livestock and 
animal husbandry; fisheries (fish farming, canning, and deep sea fishing); tourism; agri-industries; 
manufacturing industries; construction (industr ial and commercial buildings); transport and 
                                                     
 
51 WTO (2000). 
52 Tanzanian Investment Centre online information.  Available at: www.tic.co.tz/Ipa. WT/TPR/S/171/TZA Trade Policy Review 
Page A2-150 
 
 
 communications; services sector (e.g. mechanical repair, crop protection, machinery hire, financial 
services, health); and general import/export trade. 
Table II.4 
Minimum investment levels for Zanzibar, 2006 
Proposed capital Project sector 
Foreigners (US$) Tanzanians (T Sh) 
Hotel 4,000,000 300,000,000 
Agriculture 500,000 50,000,000 
Fisheries 1,000,000 100,000,000 
Industries 1,000,000 100,000,000 
General business ventures and trading 500,000 50,000,000 
Services 150,000 22,000,000 
Source :  Zanzibar Investment Promotion Authority.  
24. The incentives offered to these sectors include:  (i) exemption from corporate tax for declared 
re-investment (at proposal stage);  (ii) investment  allowance on capital investment during the project 
cycle;  (iii) exemption from customs and import duties on capital goods and machinery during 
construction, and on materials for trial production in manufacturing ventures;  (iv) exemption from 
import duties on goods for the personal use of expatriat es for six months from the date of first arrival 
in Zanzibar;  and (v) 49-year renewable leases on la nd, with no rent during the construction period. EAC-Tanzania WT/TPR/S/171/TZA 
 Page A2-151 
 
 
 III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) I NTRODUCTION  
1. Since January 2005, the EAC common external ta riff (CET) has been Tanzania's main trade 
policy instrument. The adoption of the EAC CET in  January 2005 led to a reduction in Tanzania's 
applied MFN tariffs from an average rate of 13.5%  at the end of 2003 to 12.9%.  Nonetheless, in 
addition to customs tariffs, certain imports are now subject to a destination inspection fee of 1.2% on 
the f.o.b. value, and to a US$10 customs processi ng fee, although Tanzania bound other duties and 
charges on the products covered by its tariff binding co mmitments at zero.  Imports, as well as locally 
produced goods, are also subject to a VAT at a standard rate of 20%, and to excise duties.  Tanzania's 
tariff bindings cover 13.5% of all its tariff lines, w ith bound ceiling rates of 120% for both agricultural 
and non-agricultural products. 
2. There are export processing zones programmes in mainland Tanzania and in Zanzibar, each 
providing different incentives.  Mainland Tanzania is expected to introduce a broader special 
economic zones (SEZs) programme.  Other major incentive programmes to promote exports are a 
Duty Drawback Scheme and a Manufacturing Under Bond Scheme. 
3. The EAC Protocol provides the legal basis fo r contingency trade remedies at the regional 
level. Nevertheless, mainland Tanzania enacted  its own Anti-dumping and Countervailing Measures 
Act in 2004.  Tanzania does not currently have na tional legislation on safegua rds measures.  It has 
never applied contingency trade remedies.  Nationa l standards in Tanzania are reported to follow 
international norms;  furthermore, 566 joint EAC standards are in place. 
4. Government procurement, privatization, co mpetition, and intellectual property rights are 
considered non-Union matters and, there continues to  be different legislati ons in mainland Tanzania 
and Zanzibar. New public procurem ent Acts and regulations were issued in 2005 by both mainland 
Tanzania and Zanzibar;  a preferential margin of 10% applies to local suppliers.  A new competition 
law was enacted by mainland Tanzania in 2003 (Zanzibar has no competition legislation).  An 
ambitious privatization programme has led to th e divestiture of 357 enterprises. Both mainland 
Tanzania and Zanzibar are currently revising their legal provisions on patents and trade marks to align 
them on the WTO TRIPS Agreement. 
(2) M EASURES DIRECTLY AFFECTING IMPORTS  
(i) Business registration, customs procedures, and valuation 
5. In order to trade, all companies must be registered with the Business Registration and 
Licensing Agency (BRELA) of the Ministry of Industry, Trade and Marketing (MITM). Private 
companies must have at least two directors. After obtaining name clearance from BRELA, a foreign-based company is issued a certificate of compliance for a fee of US$1,100;  a local company is issued a certificate of incorporation for a minimum fee of T Sh 121,200 (this varies with the amount of capital).
53 
6. The following documents are required to obtai n a business licence from MITM:  certificate of 
incorporation; memorandum and articles of associat ion; tax-payer identification number; residence 
permit Class A; proof of business premises; proof of inspection of premises by the land and health 
                                                      
53 Tanzania Investments Centre online information.  Available at: http://www.tic.co.tz/ 
IPA_Information.asp?hdnGroupID=3&hdnLevelID=8.1. WT/TPR/S/171/TZA Trade Policy Review 
Page A2-152 
 
 
 officer (for business under Schedule B, licensed by c ity, municipal, and district councils); and any 
additional requirements for specific classes of businesses regulated by sectoral Ministries. 
7. There have been some significant customs reforms in Tanzania since its last TPR, notably: the 
gradual introduction of the Automated System fo r Customs Data (ASYCUDA++) to streamline the 
operation of customs; the establishment of a destin ation inspection regime; and developments in the 
implementation of the 2004 EAC Customs Manageme nt Act (in force since 1 January 2005). The 
main problem for Tanzania's customs service is reportedly in its admini strative and operational 
capacity. The authorities are taking steps to facilita te trade, including accelerating clearance of goods, 
and reducing smuggling and corruption. 
8. Currently, most customs offices in Tanzania use ASYCUDA 2.7.  On 13 June 2005, the 
Customs and Excise Department of the Tanz ania Revenue Authority (TRA) launched the 
ASYCUDA++ at the pilot site of Dar es Salaam Inte rnational Airport (DIA).  For clearance at DIA, 
agents are required to present to customs two si gned copies of the new simplified Tanzania Single 
Administrative Document (TANSAD) together w ith the necessary documents, such as the bill of 
landing, and invoice (original or copy).54 ASYCUDA++ is being implemented throughout Tanzania 
(including Zanzibar);  it provides for, inter alia , electronic submission of all entries through direct 
trader input (DTI)55, and self-assessment of duty and taxes.  
9. Tanzania moved from a preshipment inspecti on (PSI) process to a destination inspection 
scheme (DIS) on 1 July 2004.56  For this purpose, the TRA signed a seven-year contract with Tiscan, 
a subsidiary of Cotecna Inspection S.A..  Under th e DIS, import declaration forms (IDFs), which are 
free of charge, and supporting documents must be su bmitted to Tiscan well before the arrival of the 
goods.57  The DIS fee of 1.2% of the f.o.b. value of imports, is payable on all imports except for those 
that are non-commercial in nature, have no commercial value, are being re-imported, or if exemption 
from the fee is in the interests of Tanzania.58  As from 3 October 2005, the DIS fee is payable directly 
to customs at the time duties and taxes are paid.59  A US$10 processing fee is also due on all 
declarations processed by Customs unless they re late to goods imported into Zanzibar or 
                                                      
54 TANSAD is generated by ASYCU DA++ during the assessment of the declaration.  It replaced the 
single bill of entry used by ASYCUDA 2.7. 
55 ASYCUDA++ allows agents and importers to input details of their imports directly to Customs 
through their own DTI facility (i.e. at their own premises using a personal computer with a link to the 
ASYCUDA++ customs server), or via the DTI Bureau at the customs offices. 
56 The PSI regime required import consignments ex ceeding US$5,000 to be inspected and contents 
verified by the representatives of Cotecna Inspection S.A. prior to loading for Tanzania.  See WTO (2000). 
57  For example, in the case of DIA, the IDF and supporting documents should be submitted five days 
before shipment to allow Tiscan enough time to  complete its clearance process (TRA, 2005c). 
58 Exemptions from the DIS fee include: consignments imported for ultimate consumption in Zanzibar;  
imports of less than US$500;  goods imported by parcel post or registered express couriers of less than 
US$5,000 per consignment;  emergency medical, drought, flood, famine or other natural disaster relief supplies airlifted into Tanzania, under US$10,000 per consignment, or as may be approved by the Commissioner for 
Customs and Excise from time to time;  goods entered fo r transit;  zero-rated materials;  gold, precious stones, 
precious metals, objects of art; medicines or vaccines with a shelf-life of less than 30 days;  aircraft and aircraft 
engines, parts, accessories for use by an airline designated under an air serv ice agreement or a foreign chartered 
aircraft;  imported newspapers or periodicals;  supplies imported for the use of diplomatic missions, the UN, and 
specialized agencies;  explosives an d pyrotechnic products, implements of war, ammunition or weapons;  live 
animals, fresh chilled or frozen fruits, vegetables, fish, meat, or eggs; and scrap metals (TRA, 2005a). 
59 Until 2 October 2005, agents/importers had to pay DIS fees at commercial banks in advance of 
Tiscan or customs processing (TRA, 2005b). EAC-Tanzania WT/TPR/S/171/TZA 
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 consignments imported by air or land that are valu ed below US$500 or contain previously owned and 
used personal and household effects.60 
10. Imports into Tanzania may now be channelled into a red line (high risk) for document and 
physical inspection before clearance (41.2% of im ports in 2005 at Mwalimu J.K. Nyerere Airport 
(MJKNA), and 40.3% of imports at Dar es Salaam  Customs Centre (DCC)); a yellow line (medium 
risk) for document inspection and x-ray scanning (23. 8% and 46.5% of imports, respectively, at 
MJKNA and DCC in 2005); and a green line (low risk) for automatic customs clearance (36% and 
13.2% of imports, respectively, at MJKNA and DCC in 2005). The customs line is recommended on the basis of Tiscan Computerized Risk Management System (CRMS).
61  Import clearance at DCC has 
been reduced from nine days before ASYCUDA+ + to an average of two hours, while at DIA 
clearance went from three days to 22 minutes. 
11. On 1 January 2001, Tanzania reportedly aban doned the Brussels Definition of Value (BDV) 
for the provisions of the WTO Agreement on Im plementation of Article VII of the GATT 1994 
(Customs Valuation Agreement).62  According to the authorities, th e values declared by importers are 
accepted for 60-70%  of all transactions.  
12. International trade operators can appeal agains t customs decisions to:  (a) the Commissioner 
General (a response is due within 30 days  from the date of notice of objection)63;  (b) if not satisfied, 
to the Tax Revenue Appeal Board (TRAB)64;  (c) if not satisfied, to the Tax Revenue Appeal Tribunal 
(TRAT)65;  and (d) if not satisfied, to the Court of Appeal.66 
(ii) Tariffs 
(a) MFN applied tariff structure 
13. The move from the national tariff to the EAC common external tariff (CET) in January 2005 
resulted in an overall decrease of average tariffs on imports into Tanzania.67  As at December 2003, 
Tanzania's average MFN tariff rate was 13.5%, wh ile the average MFN rate of the CET is 12.9% 
(Common Report, Chapter III(3)(i)). 
                                                      
60 TRA (2005a). 
61 In principle, the Customs and Excise Department of TRA has the power to alter the risk status 
recommended by Tiscan.  However, this is rare for goods under US$5,000 (Integrated Framework, 2005). 
62 In accordance with the provisions of Article 20 (special and differential treatment) of the WTO 
Customs Valuation Agreement, Tanzania had de layed the implementation of the Agreement. 
63 If the Commissioner General fails to respond within this period, the decision will automatically be in 
favour of the taxpayer. 
64 Before the determination of their case, the taxpa yer, for the purpose of the customs appeal, is 
supposed to pay the taxes under dispute or apply for waiver of taxes to the Commissioner General.  The 
taxpayer also is required to pay a fee of up to T Sh 50,000. Thereafter, the taxpay er files all the necessary 
documents for the determination of the case. Normally, th e appeal decision at the TRAB stage is made within 
two to three days. 
65 At the TRAT stage, there is a fee of up to T Sh 50,000. 
66 There is no fee at the Court of Appeal stage. 
67 Zanzibar is allowed to continue importing certain st aple food (flour, rice and sugar) at tariffs lower 
than the CET rates until 2010. WT/TPR/S/171/TZA Trade Policy Review 
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 14. Import duties contribute about 50% of to tal tax revenue collected by the TRA.68  T h e  
authorities indicate that fiscal revenue from import duties increased from T Sh 2,752 billion in 2004 to T Sh 3,447 billion in 2005. 
(b) MFN tariff bindings 
15. Tanzania's tariff bindings cover 13.5% of all its tariff lines: all tariff lines for agricultural 
products (WTO definition) and 0.1% of lines for non-agricultural products.
69  The bindings are at 
ceiling rates of 120% for both agricultural and non-agricultural products.  
16. Other duties and charges are bound at zero, except for silk and woven fabrics (84%), and 
dummies and other figures (56%). 
(c) Tariff preferences 
17. Tanzania grants tariff preferences (on a recipr ocal basis) to Kenya and Uganda under the 
Protocol on the Establishment of the EAC Cust oms Union (Common Report, Chapter III(3)(ii)), and 
to members of the SADC. Under SADC, Tanzania gr ants duty-free access (on a reciprocal basis) to 
imports of Category A products from othe r members (Common Report, Chapter II(3)). 
(d) Duty and tax exemptions and concessions 
18. Under the EAC, Tanzania is allowed to appl y duty and tax concessions for two years, ending 
on 30 June 2008, on RBD palm oil (HS 15) used as an input for industrial purposes.  
19. The Duty Drawback Scheme and the Manufact uring Under Bond Scheme are in place for 
exporters (section (3)(iv) below).  Goods in transit are exempt from customs duties. 
(iii) Other duties and charges 
20. In addition to customs tariffs, certain imports ar e also subject to a destination inspection fee 
of 1.2% on the f.o.b. value, with some excep tions (section (i) above);  and a US$10 customs 
inspection fee (which includes the ASYCUDA++ f ee) (section (i) above).  Imports and locally 
produced goods are subject to internal taxes, in cluding VAT, and excise duties. However, Tanzania 
bound other duties and charges on products c overed by its binding commitments at zero 
(section (b) above). 
21. VAT is levied at a standard rate of 20% on the sale price of locally produced goods and 
services, and on the customs-duty inclusive c.i.f. value of imports.  Exports of goods and services, and certain charges related to international transport are zero rated for VAT.
70  VAT exemptions apply to 
food crops and livestock supplies (unprocessed); p esticides and fertilizers; health supplies and 
                                                      
68 Tanzania Revenue Authority online information.  Available at: http://www.tra.go.tz/info_admin.htm. 
69 WTO definition of agriculture:  HS Chapters 01-24 less fish and fishery products (HS 0301-0307, 
0509, 0511.91, 1504, 1603-1605 and 2301.20) plus some selected products (HS 2905.43, 2905.44, 2905.45, 
3301, 3501-3505, 3809.10, 3823.11-3823.19, 3823.6 0, 3823.70, 3824.60, 4101-4103, 4301, 5001-5003, 5105-
5103, 5201-5203, 5301, and 5302). 
70 These are supplies of: some goods, including food and beverage for consumption or duty-free sale on 
aircraft or ships on journeys to destinations outside Tanzania; transport or any an cillary transport service or 
loading, unloading, wharfage, shore handling, storage, warehousing and handling supplies; services (e.g. 
handling, parking, towage) of any foreign ship or airc raft while in mainland Tanzania; and agricultural produce 
intended for export by cooperative unions registered with the TRA (Tanzania Investments Centre, 2002). EAC-Tanzania WT/TPR/S/171/TZA 
 Page A2-155 
 
 
 hospital equipment; educational services/equipmen t; veterinary supplies;  books and newspapers; 
public transport services; housing and land; finance and insurance services; water, except bottled or 
canned; funeral services; petroleum products; agri cultural implements; tourist services; postal 
supplies; fishing gear; aircraft; computers, printers and accessories; locally manufactured yarn; games 
of chance; and the supply of packing materials to  registered milk processors or manufacturers. 
Companies with a turnover of less than T Sh 40 million per year are exempt from registration requirements for VAT purposes. Fiscal revenue from VAT was T Sh 726.3 billion in 2004/05, of 
which T Sh 437.7 billion came from imported goods. 
22. Excise duties are charged either at specific or ad valorem  rates on imports of certain 
consumer goods.  Specific rates apply to cigarettes, tobacco, wines, spirits, beer, soft drinks (including 
water), and petroleum products.  The ad valorem  rates are: 7% on mobile phone services; 10% on 
saloon cars, station wagons and four-wheel-drive ve hicles with engine capacity exceeding 2,000 cc; 
120% on plastic shopping bags; and 30% on mostly "l uxury goods" (e.g. cigars, hard drinks). In 
2004/05, revenue from excise duties amounted to T Sh 238 billion, of which T Sh 127.6 billion came from imports. 
(iv) Import prohibitions, restrictions, and licensing 
23. Tanzania maintains import prohibitions on pr oducts such as narcotic drugs, tear gas 
substances, and subversive/pornogr aphic materials or literature. Impor ts of firearms and ammunitions 
are prohibited in Zanzibar, while in mainland Tanzan ia they are subject to permits from the Ministry 
of Public Safety and Security. The Ministry of Health issues permits for medicines, while the 
Tanzania Food and Drugs Authority is sues permits for certain food items. 
24. A list of prohibited and restricted imports is provided for by the Second Schedule of the EAC 
Customs Management Act (Common Report, Chapter III(5)). 
(v) Contingency trade remedies 
25. The EAC Protocol provides the legal basis for contingency trade measures at the regional 
level (Common Report, Chapter III(4)).  Neverthe less, Tanzania enacted its own Anti-dumping and 
Countervailing Measures Act (Act No. 14) in 2004 .  Tanzania does not currently have national 
legislation on safeguards measures. 
26. Act No. 14 entered into force on 30 April 2004;  it applies only to mainland Tanzania. Anti-
dumping duties may be imposed to any dumped impor t when it causes injury to Tanzanian producers, 
and when there is a link of causality between dump ing and injury. A product is considered to have 
been dumped if its export price to Tanzania is less than the normal value of the like product or directly 
competitive product. A countervailing duty may be imposed for the purpose of offsetting any subsidy 
granted, directly or indirectly, in the country of origin or export, upon the manufacture, production, 
export or transport of goods that are imported into  Tanzania and that cause injury. A provisional duty 
may be imposed where preliminary investigation s hows that dumping or a subsidy exists and that 
there is sufficient evidence of injury.  Provisional anti-dumping or countervailing duties must not be 
applied sooner than sixty days from the date of in itiation of the investigation, and have a maximum 
period of validity of six months.
71  Review of decisions on final anti-dumping or countervailing duties 
                                                      
71 Article 47 of the Act. WT/TPR/S/171/TZA Trade Policy Review 
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 may take place a reasonable period after the date of the decision.72  Anti-dumping or countervailing 
duties must not be kept in force longer than necessary, and in any case no more than five years.73 
27. The Anti-dumping and Countervailing Measures Advisory Committee (ACMAC), under the 
MITM, is responsible for, inter alia , carrying out anti-dumping and coun tervailing investigations in 
order to protect domestic industries. Actions can  be initiated through a written complaint by or on 
behalf of a domestic  industry, or by a member of ACMAC.74  The decision to impose anti-dumping or 
countervailing actions is made by the Minister of Industry, Trade and Marketing on advice of 
ACMAC. 
28. No anti-dumping, countervailing or safeguard me asures have ever been taken by Tanzania.  
(vi) Standards and other technical requirements 
(a) Standards, testing, and certification 
29. The Tanzania Bureau of Standards (TBS), established in 1976, is responsible for the 
promotion of standardization and quality assurance. The TBS, a parastatal entity under the MITM, operates under budget from the Government and whatever  revenue it can generate for the services it 
provides.  The TBS has four main areas of activity :  preparation of national standards; product and 
systems certification;  provision of testing services;  and training for industry quality management and 
other areas.  The TBS is not a union entity, but it is used by Zanzibar companies.  Zanzibar follows 
the system used in mainland Tanzania;  it does not have its own regime on standards. 
30. Tanzania has continued to harm onize its national standards wi th international or regional 
standards, in particular with those of the EAC.  As at December 2005, 566 joint standards had been 
adopted by the EAC (Common Report, Chapter III(6)).   Whenever there is an existing international 
standard or technical regulation, it is adopted in  its totality. Standards are typically adopted from 
either European or international norms (e.g. th e British Pharmacopoeia is used for pharmaceutical 
products). At end December 2005, a total of 1,506 st andards were in force in Tanzania, of which 
940 were national standards (321 compulsory and 619 voluntary), and 566 were EAC standards.
75  At 
the end of 2005, voluntary standards represented 78. 7% of total standards, the remainder were 
compulsory standards, mainly relati ng to food and agriculture products. 
31. Tanzanian standards and technical regulations  (compulsory standards) do not distinguish 
between imported and domestically produced goods.76  Upon conformity, Tanzanian products are 
issued a "TBS" mark certificate, and imports are is sued a batch certificate.  TBS generally does not 
test exports unless specifically requested by the e xporter.  TBS has mutual recognition agreements 
with Kenya and Uganda. All imports subject to compulsory standards must go through compliance 
certification (except those certified by Kenya and Uganda); the certification fee is 0.2% of the cost and freight. 
32. The TBS issues a Standard Mark of Quality available equally to domestic and foreign 
producers. It may also certify a product for wh ich a national standard does not exist; undertake 
                                                     
 
72 Article 64 of the Act. 
73 Article 65 of the Act. 
74 Article 27 of the Act. 
75 A list of 41 harmonized EAC standards have been notified to the WTO (WTO document 
G/SPS/N/TZA/1, 8 January 1999). 
76 Government Notice No. 56 of 18 May 1984 and No. 195 of 30 August 1996.   EAC-Tanzania WT/TPR/S/171/TZA 
 Page A2-157 
 
 
 compulsory inspection/clearance for imported or exported  goods that could affect health, safety, or the 
environment; or certify a company's compliance with ISO quality assurance (ISO 9000), or environmental management (ISO 14000) systems.  At  the end of 2004, 15 companies in Tanzania had 
been certified to ISO 9000, and 4 companies to ISO 14000.
77  
33. The TBS has seven laboratories that undertak e tests in relation to legal metrology, 
engineering, chemicals, textiles, and food products. It  is also developing a laboratory for packaging, 
which will be part of the Pack aging Technology Centre (PTC).78 None of these laboratories is 
internationally accredited. However, a programme  is being implemented for the accreditation of 
priority laboratories by the South African National Accreditation System (SANAS).  
34. The TBS has been notified to the WTO as the national enquiry point for technical barriers to 
trade79, and for sanitary and phytosanitary measures.80  The TBS has also notified its acceptance of the 
Code of Good Practice for the Preparation,  Adoption, and Application of Standards.81  It is a member 
of the International Organization for Standardiza tion (ISO), of the Codex Alimentarius Commission, 
and of the tripartite East African Standards Committee. 
(b) Marking, labelling, and packaging 
35. To ensure consumer protection, quality require ments apply to certain domestically produced 
and imported products sold on the domestic mark et. Labels on both imports and local goods must 
describe the main characteristics of the product (e.g . period of validity, possible interdiction of use, 
and main components).  Currently, the TBS, the Tan zania Pesticide Research Institute, the Pharmacy 
Board, and the National Food Control Commission regulate various products. 
36. Tanzania's marking, labelling, and packagi ng requirements cover three broad categories of 
products: food, non-food, and dange rous goods. Sensitive products su ch as food, pharmaceuticals, and 
dangerous goods (e.g. explosives, flammable liqui ds, and oxidizing substances) must be "well 
packaged, labelled, and marked".  The marking/la belling information requirements include:  the name 
of the product, date of manufacture and expiry, cont ents or ingredients, directions for use, storage 
conditions, warning/safety information and symbols, lot identification, country of origin, and name 
and address of the manufacturer. The design and c onstruction of packaging varies depending on the 
intended end-use. The container should perform th e functions of preservation and protection of the 
contents for the required shelf and use life; it sh ould safeguard the contents from deterioration, 
damage, or loss.  The package should be such that  contents are easily removed or poured, and should 
ensure consumer protection.  Marking and labe lling must be in Swahili or English, or both.82 
(c) Sanitary and phytosanitary regulations 
37. SPS issues are considered a non-union matter. Multiple disruptions and partial 
implementation of reforms had bro ught Tanzania's animal-health services delivery to the brink of 
                                                      
77 Integrated Framework (2005). 
78 The main functions of the PTC will be: (i) testing packages and packaging material to ensure quality; 
(ii) training in structural and grap hic design of packages; (iii) certificati on of packaging materials and packages 
to acceptable established standards; and (iv) acting as a data bank for information on packaging standards, 
requirements, and technology. 
79 WTO document G/TBT/ENQ/26, 7 March 2005. 
80 WTO document G/SPS/EN Q/18, 20 December 2004. 
81 WTO (2000). 
82 Any other supplementary language may be used in addition. WT/TPR/S/171/TZA Trade Policy Review 
Page A2-158 
 
 
 collapse in the late 1990s. As a result, Tanzania ha s introduced some changes to its institutional and 
legislative SPS framework since its last TPR.  For in stance, (i) the main legislative basis for animal 
disease control and overall veterinary activity is now the 2003 Animal Disease Act and the 2003 
Veterinary Act;  (ii) livestock produc tion and animal health matters have  been shifted to the Ministry 
of Livestock Development (MLD), from the former Mi nistry of Agriculture and Co-operatives; and  
(iii) the Tanzania Food and Drugs Authority (TF DA), under the Ministry of Health, was created 
through the Tanzania Food, Drugs, and Cosmetics Act (No. 1 of 2003). 
38. The 2003 Animal Disease Act has provisions on, inter alia , general and compulsory animal 
disease control measures, protection of consumer s against diseases found in animals or animal 
products, and the powers of inspectors. The 2003 Veterinary Act provides for, inter alia , the 
registration of veterinarians, enlistment of pa ra-professionals, establishment of the Veterinary 
Council, and regulation of animal-health service deliv ery. Many specific regulations associated with 
these two Acts are still under preparation, including for the processing and marketing of meat, animal breeding, and regulation of the animal feed industry. 
39. Phytosanitary regulations are grouped under thr ee categories, depending on the distribution 
and type of pest:  (i) permitted under certain conditions, i.e. plants  and plant products, living cultures 
of fungi, bacteria, and all beneficial organi sms including biological control agents and bio-
pesticides
83;  (ii) subject to quarantine (e.g. seeds, plants or non-native crops)84;  and (iii) prohibited, 
such as vegetative parts of plants (stems, leav es), soil, weeds, and other narcotic plants.85  Domestic 
crops are not subject to phytosanitary certification unless there is a localized pest outbreak in their 
production region. All imports are subj ect to inspection and certification. 
40. The Directorate of Veterinary Services (DVS ) in the livestock section of the MLD is the 
leading agency on animal health matters, with a ma ndate to control (and where feasible to eradicate) 
animal diseases, protect consumers against livestock-borne diseases, and support the provision of animal health services.  It has insp ectors to inspect animals or animal products at 22 ports of entry.  
The DVS estimates that the number of government ve terinarians (about 130) is around half of that 
needed to properly coordinate animal health  services and undertake effective disease surveillance.
86  
The DVS is the contact point for the World Organization for Animal Health (OIE ). 
41. Tanzania is struggling to control or eradicate several OIE List A epidemic diseases, which are 
severely restricting its access to international market s.  The DVS has prioritized rinderpest, contagious 
bovine pleuropneumonia (CBPP), and foot and mouth disease (FMD) in its programme of 
surveillance and international collaboration. In order to increase its livestock exports, Tanzania 
                                                      
83 Phytosanitary certificates declaring the phytosan itary status of the consignment should accompany 
these products. The plant import permits prescribe the conditions for import depending on the plant or plant product and its use. Plant products for human consumptio n require a phytosanitary cer tificate declaring that the 
product is free from pests;  these products include maize, rice, beans, wheat, and sorghum.  
84 Seeds are regarded as high-risk materials because they are planted and remain  in the environment for 
a longer period of time, th erefore exposing the country to a higher risk  in case of seed-borne diseases. Such 
high-risk materials will be under confined or open quaran tine.  Imported seed beads must be tested and may be 
subjected to quarantine before  they are released to the owner.  Pl ants or non-native cr ops are subject to 
quarantine to determine their phytosanitary status.  For plants that are vegetatively propagated, such as cassava 
and sweet potatoes, some flowers are imported as  tissue culture and planted under quarantine. 
85 Vegetative parts of plants are prohibited unless they are imported as propagative materials. Soil, 
weeds, and other narcotic plants are also prohibited. However, soil can be imported for research purposes only, 
under special arrangements between the respective institutions. 
86 Integrated Framework (2005). EAC-Tanzania WT/TPR/S/171/TZA 
 Page A2-159 
 
 
 envisions creating specific disease-free zones, which would be recognized by its trading partners in 
accordance with the OIE Terrest rial Animal Health Code.87 
42. Under the Plant Protection Act of 1997, Tanzania aims, inter alia , to: prevent the introduction 
and spread of harmful organisms, ensure sustaina ble plant and environmental protection, control the 
import and use of plant protection substances, and regulate exports and imports of plants and plant 
products.  The Ministry of Agriculture, Food S ecurity, and Co-operatives (MAFC) undertakes risk 
analysis on imported/exported products  before issuing the respective  permit;  the consignment must 
be accompanied by the phytosanitary certificate.  The MAFC inspects the consignment at the 
entry/exit points to make sure the pr oduct meets the required standards.  
43. Tanzania's official system of food safety cont rols and promotion rests on several pieces of 
legislation, and involves multiple institutions; this  complicates coordination.  The TFDA's main task 
is to protect domestic consumers, while the TBS is responsible for inspection and certification of 
processed food products.  In addition, the Fisheries Department of the Ministry of Natural Resources 
and Tourism carries out testing and certification of hygienic processing/handling practices for fresh 
and frozen fish.  None of these institutions monitors food for export.  
44. Two separate entities, the Plant Health Service (PHS) in the Crop Development Department 
of the Ministry of Agriculture and Food Security , and the Tropical Pesticides Research Institute 
(TPRI), are involved in inspections and issuance of import permits for food/plant product imports and 
phytosanitary certificates for exports. All imported pl ants and plant products must be accompanied by 
a phytosanitary certificate. Inspection of imported/expor ted plants and plant products is carried out by 
the plant health inspectors at  the entry and exit points.  
(vii) Other measures 
45. According to the authorities, Tanzania do es not have any local-content requirements. 
46. Tanzania has no agreements w ith foreign governments or enterprises designed to influence 
the quantity or value of goods and services exporte d to Tanzania. Furthermore, the authorities are 
aware of no such agreements between companies operating in Tanzania and foreign enterprises. 
47. Tanzania applies no trade sanctions, either nati onally or internationally, other than those 
endorsed by the UN Security Council or other re gional organizations of which it is a member. 
48. Compulsory reserve stocks are set mainly for maize and sorghum, although the Department of 
Strategic Grain Reserve of the MAFSC may have r eserve stocks for all types of grain grown in 
Tanzania. The minimum reserve stock for wheat and sorghum is set at 150,000 million tonnes; 
however, due to limited production and financial resour ces, Tanzania has never reached such a stock. 
(3) M EASURES DIRECTLY AFFECTING EXPORTS  
(i) Registration and documentation 
49. Similar registration and documen tation requirements apply to exporters and importers in 
Tanzania (section (2)(i) above). Nevertheless, cert ain export products require specific licences/permits 
issued by relevant government agencies (e.g. the Agriculture Department for food products; Fisheries 
                                                      
87 Integrated Framework (2005). WT/TPR/S/171/TZA Trade Policy Review 
Page A2-160 
 
 
 Department;  Forestry Department;  Wildlif e Department;  and Mining Department for 
minerals/gemstones). 
(ii) Export taxes 
50. Tanzania applies an export tax on raw cashew nut, and a cess of 20% on raw hides and skins, 
to encourage local processing of these goods.  
51. According to the authorities, all crop board  levies were removed as from 1 July 2006 
(Chapter IV(2)(iii)(a)).88 
(iii) Export prohibitions, restrictions, and licensing 
52. Since June 1998, export restrictions in the agri culture sector have b een in place for white 
maize, rice, cereals, beans, and unprocessed fish  products; these are due to the precarious food supply 
situation brought about by the ongoing drought  conditions.  Crop boards also enforce quality 
standards before commodities can be exported. Furthe rmore, exports of fish products are subject to 
landing requirements.  There is a ban on charcoal exports. 
53. Exports of the following product categories are subject to licensing by the relevant 
authorities:  forestry (Forestry Department); fi sheries (Fisheries Department); wildlife (Wildlife 
Department); minerals/gemstones (Mining Department ); and food/staple (Ministry of Agriculture). 
54. A list of prohibited and restricted exports is provided for by the Third Schedule of the EAC 
Customs Management Act (Common Report, Chapter III(7)). 
(iv) Export subsidies, finance, and promotion 
55. According to authorities, Tanzania does not s ubsidize any exports of goods or services. The 
National Bank of Commerce (NBC) offers some expor t finance facilities at different stages of export 
operations. In addition, the Manufacturing Under Bo nd Scheme and the Duty Drawback Scheme are 
in place for exports. These export schemes also appl y to Zanzibar.  Exports are zero-rated for VAT 
refund purposes. 
56. Under the Manufacturing Under Bond Scheme, ta x-free entry is allowed for all capital 
equipment and all imported inputs used in the manuf acture of exports. It is intended to meet the 
immediate need of companies producing only for ex port.  Under the Duty Drawback Scheme, duties 
paid on inputs for the production of exports ar e refunded so that the export is not rendered 
uncompetitive as a result of the duties.  The scheme is  intended to meet the needs of exporters of 
agricultural, and fishery, and manufactured products  who do not rely on a large quantity of imported 
inputs.   
57. In 2005, the Export Credit Guarantee Scheme (ECGS) was introduced to improve credit 
conditions of viable natural or juridical persons (b orrowers) engaged in exports that lack adequate 
collateral to secure bank financing.89  It has three types of credit gu arantees to protect participating 
                                                      
88 The Government is to meet all the operational costs of the crop boards in order to reduce the burden 
on producers and hence improve farmers' earnings. 
89 To be eligible, a natural or juridical person should be:  privately owned, controlled, and operated in 
Tanzania;  organized and authorized to conduct business in Tanzania;  engaged in production and export of EAC-Tanzania WT/TPR/S/171/TZA 
 Page A2-161 
 
 
 financing institutions against non-payment due to in solvency or protracted default:  pre-shipment90; 
post-shipment91;  and export production.92  The Bank of Tanzania, under an Agency Agreement, is to 
develop and implement the scheme, pending the form ation of a fully fledged ECGS institution.  The 
ECGS also applies to Zanzibar. 
58. The Board of External Trade (BET), under the MITM, was established in 1998 to promote 
exports in both mainland Tan zania and Zanzibar through, inter alia , workshops, seminars, trade fairs, 
and exhibitions.  The BET also carries out mark et research activities (e .g. supply and demand 
surveys) for non-traditional export products; pr ovides exporters with information on trade 
opportunities; and participates in the formulation a nd implementation of trade policy, including export 
development strategies (e.g. for fish, textiles and cl othing, leather, and spices).  About 60% of the 
BET's budget is financed by its own activities (e.g. Dar es Salaam's internati onal trade fair), 20-25% 
from government subsidies, and the remaining resources are obtained from the donor community. 
59. Both the EAC Protocol and the EAC Customs Management Act provide the legal basis for 
export assistance schemes (Common Report, Chapter III(8)). 
(v) Export processing zones 
60. At the time of Tanzania's last TPR, there were no export processing zones (EPZs) in mainland 
Tanzania, while Zanzibar had three.  Now, EPZ programmes exist in both mainland Tanzania and 
Zanzibar, each providing different incentives (Tab le III.1).  Mainland Tanzania established its EPZ 
programme under the 2002 EPZ Act and the 2 003 EPZ Regulations, aiming to: promote export-
oriented investment, mainly in manufacturing and value-added industries; stimulate international 
competitiveness; spur export-led economic growth; increase foreign exchange earnings; create new 
employment; transfer skills, knowledge, and tec hnology; and reduce poverty. It is open to both 
foreign and local investors, but is restricted to new investments so as to limit the loss of existing 
industrial tax revenues in Tanzania.93 
61. The EPZ Council is responsible fo r developing the EPZ programme.94 Legal authority for 
declaring EPZs has been delegated to the Minister  of Industry, Trade and Marketing, with the EPZ 
Authority being the authorizing body for implemen ting, managing, facilitating, and promoting the 
programme. 
                                                                                                                                                                     
goods and services from Tanzania;  and granted a credit facility (by a financing institution) related to export 
production or pre- or post-shipment finance (Ministry of Finance, 2005).   
90 Preshipment credit guarantee is issued for a maximum of 270 days, and covers the advances made by 
the financing institution to the borrower within an approved limit.  It will end once the goods are shipped or 
after 270 days have lapsed (Ministry of Finance, 2005). 
91 Post-shipment credit guarantee is issued for a ma ximum of 60 days, and covers advances made by 
the financing institution to the borrower within an approved limit. It will end after 60 days (Ministry of Finance, 
2005). 
92 Export production credit guarantee is issued for a maximum of one year, and covers advances made 
by the financing institution to the borrower within an approved limit. It will end once the goods are shipped or 
after the lapse of one year (Ministry of Finance, 2005). 
93 Industries already benefiting from investment incentives under other schemes are not eligible. 
94 The EPZ Council consists of six members: the Minister of Industry, Trade and Marketing as the 
Chairman, the Minister of Finance, th e Minister of Lands, the Attorney Ge neral, the Governor of the Central 
Bank, and the Managing Director of the National Development Corporation. WT/TPR/S/171/TZA Trade Policy Review 
Page A2-162 
 
 
 Table III.1  
Tanzania's EPZ programmes 
 Tax rate Sector Other incentives 
Tanzania 
(mainland) Rate applicable  Manufacturing Withholding tax exemption 
Local tax exemption 
Exemption from destination inspection 
20% of output can be sold locally US$100,000 minimum annual turnover 
Tanzania (Zanzibar) 0% for 10 years;  25% 
thereafter Manufacturing 20% of output can be sold locally 
Personal effects imported duty free Exemption from withholding tax on loan interest 
Exemption from withholding tax on technical services 
Tanzania 
(Zanzibar) 0% for 20 years;  tax holiday 
may be renewed Services 
Transit trade warehouse Repackaging simple assembly 20% of output can be sold locally 
Output/services exempt from local taxes if exported Unlimited storage time without paying duties 
Source:  Information provided by the Tanzanian authorities.  
62. Industries selected to benefit from the programme , although not specifically stated in the EPZ 
Act or its regulations, are:  agri-processing; te xtiles and garments; fish processing; leather goods; 
lapidary;  wood products;  electrical appliances and electronics; and information and communication technology.  Nine regions have been targeted for EPZ activities, selected on a "gateway" approach 
(e.g. close to airports, ports), or within areas where industrial growth is expected.
95 However, these 
locations are only guidelines for investors since all areas of mainland Tanzania are open to EPZ 
investment. Under the EPZ regime, 20% of the goods  produced can be sold on the domestic market,  
subject to payment of the relevant import duties and charges (on an MFN basis). 
63. Since 2003, the NDC has issued li cences to eight operators.  By April 2005, total investments 
in EPZ had reached US$81.1 million (Table III.2).  Around 65% of total investments are loans and equity from domestic sources;  the remainder are fr om foreign companies.  Until 2004, total exports 
from manufacturing entities in EPZ amounted to US$7,613 million;  the main markets were the 
United States, South Africa, and the EC.  
Table III.2 
Investment structure in mainla nd Tanzania's EPZs, April 2006 
(US$ million) 
Source Loans Percentage Equity  Percentage Total Percentage 
Domestic 29.6 55.9 22.7 80.6 52.3 64.5 
Foreign 23.3 44.1 5.5 19.4 28.8 35.5 
Total 52.9 100.0 28.2 100.0 81.1 100.0 
Source:  Information provided by the Tanzanian authorities. 
64. Some of the main problems facing EPZs in mainla nd Tanzania are lack of access to water and 
power, high rental/leasing rates, and institutional issu es (e.g. no on-site management office or customs 
office, and cumbersome reporting requirements).  
65. Mainland Tanzania is expected to introdu ce a special economic zones (SEZs) programme, 
which will be broader based than the EPZs .  According to NDC, the SEZ programme will,  inter alia : 
include non-manufacturing and production of goods a nd services for both local and foreign markets; 
                                                      
95 These areas are: Dar es Salaam, Mtwara, Tanga , Mwanza, Arusha, Kilimanjaro, Kigoma, Manyara, 
and Coast Region. EAC-Tanzania WT/TPR/S/171/TZA 
 Page A2-163 
 
 
 offer an improved incentive package; and involve  more economic sectors than the EPZ programme.96 
Implementation of the SEZs will be under the Tanzan ia Mini-Tiger Plan 2020, and will focus initially 
on developing SEZs in Dar es Sala am, Tanga, and Kilimanjaro. A new regulatory body is expected to 
take charge of SEZ responsibilities.97 
66. The Zanzibar Investment Promotion Author ity (ZIPA) owns and operates three export 
processing zones (EPZs).  The ZIPA is also respons ible for Zanzibar's Freeport. Enterprises that 
export 80% or more of their output are eligible to operate in the EPZs. Investment in the EPZs 
amounted to US$859.5 million in 2005 (up from about US$363.6 million in 2000), most of which 
came from the Gulf States.  Bu sinesses currently operating in the EPZ include video and audio 
cassette manufacturing, garments, and fish processing.   Products are primarily exported to the EC, the 
United States, and Hong Kong, China. Trans it trade is also permitted within the EPZ. 
67. The incentives granted by the ZIPA under the EPZ and Freeport regimes include:  
(i) exemption from import duties, exercise duties, sales tax, (VAT) and any other import levy on all imported goods;  (ii) exemption from any tax on a ll goods destined for re-exports;  (iii) exemptions 
from local taxes on all goods produced and exported;   (iv) exemption from payment of corporate tax 
for the first 20 years;  (v) no limit on the duration th at goods may be stored in the Freeport;  (vi) 100% 
retention of profits;  (vii) 100% fo reign ownership allowed;  (viii) fr ee repatriation of profit;  and (ix) 
20% of total turnover allowed for sale to the local market, subject to the payment of the relevant 
(MFN) import duties and charges. 
68. The incentives offered by ZIPA in free economic zones include:  (i) ten-year corporate tax 
holiday and 25% tax thereafter;  (ii) ten-year w ithholding tax holiday on dividend for non-residents;  
(iii) tariff and VAT exemption on raw materials, mach inery, equipment, and other inputs;  (iv) stamp-
duty exemption;  (v) 100% investment deduction on capital expenditure within 20 years;  (vi) tax 
exemption on dividends for ten years; (vii) dut y- and tax-free imports of goods from the customs 
territory;  (viii) duty-free imports of materials fo r construction of factory buildings;  (ix) duty-free 
exports of goods produced;  (x) exemption of income tax on interest on borrowed capital;  
(xi) exemption from payment of all taxes and levies imposed by local government authorities for 
goods and services produced in free economic zones;  and (xii) on-site customs inspection of goods in 
lieu of off-port inspection. 
(4) M
EASURES AFFECTING PRODUCTION AND TRADE  
(i) Incentives 
69. In addition to the export-oriented incentives, mainland Tanzania and Zanzibar continue to 
grant different incentive programmes, to both national and foreign investors to,  inter alia : encourage 
and orient investments; promote the country's deve lopment objectives; foster the utilization of and add 
value to local products; and introduce new industri es, products, and technologies.  Various duty and 
tax incentives are offered to lead and priority activitie s in mainland Tanzania (Chapter II(4)(i)), and in 
different sectors in Zanzibar (Chapter II(4)(ii)). 
                                                      
96 These include energy, commercial  cash crop farming, jewellery (cutting and polishing projects), and 
national/cultural parks. 
97 Bank of Tanzania (2005b). WT/TPR/S/171/TZA Trade Policy Review 
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 (ii) Government procurement 
70. A new law on government procurement (Public Procurement Act No. 21/2004) entered into 
force on 8 February 2005. The supporting public  procurement regulations became effective on 
15 April 2005.98  The Act and its regulations apply only in mainland Tanzania (Zanzibar has its own 
Public Procurement Act No. 9 of 2005);  they pe rtain to all procurement undertaken by public 
institutions99, except for financially independent par astatal organizations and for defence 
procurement;  defer to Tanzania's international obligations at the in tergovernmental and international 
levels;  take into account certain differences betw een the procurement of goods, works, and selection 
and employment of consultants;  provide for the establishment of the Public Procurement Appeals 
Authority to settle procurement disputes before j udicial review process; and establish several tender 
boards with the responsibility for procurement, revi ew of tender documents, and contract awards in 
accordance with pre-determined thresholds.  
71. Several institutions are involved in Tanzania 's public procurement, notably the Public 
Procurement Regulatory Authority (PPRA), as well as procurement management units in ministries, 
government departments, district a nd urban authorities, and tender boards.100  Under the Act and its 
regulations, every ministry in Tanzania has establis hed its tender board with the following thresholds: 
works (up to US$500,000);  goods ( up to US$300,000); and consulta ncy services (up to US$100,000). 
Technical agencies, such as the Tanzania National Roads Agency (TanRoads), have higher thresholds 
than ministries as follows: works (up to US$5 m illion); goods (up to US$3 million); and consultancy 
services (up to US$1 million).  TanRoads regional offices have same thresh olds as ministries. In 
addition, procurement from Government Stores Departments (Government Stores, Maji Stores 
Department, Government Press/Printer, Veterinary Stores, and Medical Stores Department) can only 
be made if the prices offered by these institutions are lower than or equal to the market prices. 
Accounting or chief executive officers are r esponsible for the procurement functions.  
72. The PPRA has issued standard bidding documents for, inter alia : the procurement of goods 
and works; standard request for proposals and guide lines; standard forms for the evaluation of bids; 
and the evaluation of proposals for the selection and employment of consultants. A preferential 
margin of 10% applies to local suppliers (previously 7.5%). 
73. The procurement procedure may be101:  (i) international competitive tenders, where any 
supplier, contractor or services provider is a llowed to submit tenders. These are used when, inter alia , 
the payment may be made in whole or in part in foreign currency (no financ ial limit); (ii) national 
competitive tenders, where any supplier, contractor or  services provider is allowed to submit tenders. 
These are used when, inter alia , the payment may be made wholly in Tanzanian shillings (up to 
T Sh 800 million for goods, and up to T Sh 3 billion for works);  (iii) restricted tenders, where only 
                                                      
98 The Public Procurement (Goods, Works, Non-consultant Services and Disposal of Public Assets by 
Tender) Regulations. 
99 The Act allows local government authorities to carry out their procurement under the Local 
Authority Financial Memorandum of 1997, and the establishment of local government tender boards under Act 
No. 9/1982. Currently, the Ministry of Finance and the President's Office, Regional Administration and Local 
Government, through the Local Government Reform Project, are reviewing the memorandum to correct its weaknesses and inconsistencies, as well as revising the new Act. 
100 Government institutions with fairly well established procurement management units include: the 
Ministry of Works, TanRoads, Ministry of Water an d Livestock Development (Urban Sector Rehabilitation 
Project and Rural Water Supply Division), President's Office (Regional Administration and Local Government), 
Ministry of Energy and Minerals (Songosongo Gas Project), and Ministry of Agriculture and Food Security. 
101 Part VI of the Procurement of Goods and Works Regulations. EAC-Tanzania WT/TPR/S/171/TZA 
 Page A2-165 
 
 
 candidates pre-selected by the contracting auth ority are invited to submit tenders (up to 
T Sh 400 million for goods, and up to T Sh 1.5 billion for works)102;  (iv) competitive quotations, 
where the contracting authority negotiates with at l east three suppliers, contractors or providers (up to 
T Sh 80 million for goods, and up to T Sh 100 million for works);  (v) single source, where the 
contracting authority negotiates the contract clauses with a single supplier, contractor or provider (no 
limit for goods, and up to T Sh 800 million for works)103; and (vi) minor value procurement (up to 
T Sh 10 million for goods, and up to T Sh 20 million for works). Because most of the major projects in Tanzania are typically funded by donor institu tions, the procurement regulations of those 
organizations are usually followed. 
74. Tanzania is reviewing its public procurement regime in order to:  further combat corruption, 
unethical behaviour, and abuse of power;  clarif y the role, responsibilities, and accountability of the 
PPRA;  implement a training and human resource development programme to enhance skill levels, 
and improve performance.  In addition, the new Act should cover all public institutions irrespective of 
the level of funding from the central government.
104 
75. Tanzania is neither an observer nor a signatory  to the Plurilateral Agreement on Government 
Procurement. 
(iii) State trading enterprises, state ownership, and privatization 
76. In 1992, the Tanzanian Government issued its  Policy Statement on Parastatal Reform, which 
set the direction for an ambitious privat ization and reform programme aimed at, inter alia :  improving 
the operational efficiency of the economy;  reduci ng the burden of state-owned enterprises (SOEs) on 
the budget;  and expanding the role of the private sect or.  At the end of the process, all SOEs will be 
privatized or liquidated.  Prior to the commencem ent of the privatization process, SOEs contributed 
about 90% to Tanzania's GDP. 
77. The Tanzania Parastatal Sector Reform Commissi on (PSRC) is the privatization agency for 
mainland Tanzania;  there is no privatization body in Zanzibar.  Created in 1992, the PSRC has been 
charged with divestiture of approximately 400 SO Es.  The PSRC is also responsible for overseeing 
improvements in the efficiency of the remaining pa rastatals. The PSRC acts as the principal advisor to 
the Tanzanian Government on policy and legislation affecting parastatal business enterprises. Privatization in Tanzania has been carried out with support from the World Bank, which has provided 
funding as well as technical assistance. 
78. Up to July 2006, 357 out of 394 SOEs had been privatized (227 parastatals were divested 
either by joint venture partnership or outright sales, 65 were liquidated through the Loans and 
Advances Realisation Trust (LART), and the remainde r were privatized through other means).  The 
complexity and sensitivity of the remaining SOEs, which involve utilities and infrastructure, are being 
taken into account.  Some of the main privatizati ons include the National Bank of Commerce;  49% of 
Air Tanzania Corporation (the remaining stake w ill be offloaded through the Dar es Salaam Stock 
                                                     
 
102 Bids are accepted from entities that are on an op en list of pre-qualifiers. The relevant ministry is 
charged with evaluating the qualifications of bidders and notifying them of their eligibility to bid on specific 
contracts.  Typically, the lowest bid is successful, alth ough a secondary, technical evaluation may be conducted, 
depending on the nature of the contract. 
103 Single tendering is permitted for emergency situations. 
104 The new act makes exceptions for public authorities/enterprises that  do not receive subvention from 
the Government (Nkinga, 2003). WT/TPR/S/171/TZA Trade Policy Review 
Page A2-166 
 
 
 Exchange);  35% of the Tanzanian Telecommunicati on Company;  and the port container terminal at 
Dar es Salaam.105  
79. Privatization has already had some impact on th e economy.  For example, the privatized firms 
are now paying taxes to the Government and 16 of them are among the top 100 taxpayers in the 
country.106  Among the most important SOEs that remain  in the privatization portfolio are:  the 
National Microfinance Bank (NMB)107, the largest bank in the country;  the Tanzanian Electric 
Supply Company (TANESCO);  and Tanzania Fertilizer Company (Table III.3).   
Table III.3 
Tanzania's SOEs, 2005 
SOE  State share
(%) Total value of shares 
(T Sh)  Status  
Air Tanzania Corporation 51  8,289,000,000 Joint venture 
Arusha International Conference Centre (AICC) 100  260,340,486  Capital structure to be firmed up  
Mikumi Wildlife Lodges 100  ..  Under privatization  
Twiga BankCorp  100  2,500,000,000  Parastatal  
National Housing Corporation  100  485,554,095  Parastatal  
National Insurance Corporation  100  1,000,000,000  Under privatization  
National Micro Finance Bank (NMB)  100  20,000,000,000  Under privatization  
Mbinga Coffee Curing Company  43.46  559,322,000  Joint venture  
Mbozi Coffee Curing Company  31.73  286,054,848  Joint venture  
Tanzania Central Freight Bureau  100  8,036, 675  Capital structure to be firmed up  
Tanzania Electric Supply Co. Ltd.  100  ..  Parastatal  
Tanzania Fertilizer Company  100  ..  Parastatal  
Tanzania Harbours Authority  100  9,060,000,000  Parastatal  
Tanzania Posts Corporation  100  2,216,553, 564  Capital structure to be firmed up  
Tanzania Railways Corp.  100  10,000,000,000  Parastatal  
Tanzania Standard Newspapers (TSN )  100  1,000,000,000  Parastatal  
KIBRICO 30  120,000,000  Joint venture  
General Tyre EA Ltd  74  318,200,000  Under privatization  
Tanzania Oxygen Ltd  71.14  2,275,454,900  Under privatization  
Tanzania Telecommunication Company Ltd  65  191,012,000,000  Joint venture  
Embassy Hotel. Company Ltd.  40  20,000,000  Joint venture  
Chinese Tanzania Shipping Company Ltd  50  7,615,256,175  Joint venture  
Tanzania Zambia Railways (TAZARA)  50  4,074,000,000  Capital structure to be firmed up  
Friendship Textile Co.  49  5,035,630,000  Joint venture  
Light Source Manufacturers  49  262,000,000  Under privatization  
Teleshop Co. Limited  49  ..  Joint venture  
Usafiri Dar es Salaam.  49  348, 865,100  Under privatization  
Tanzania Postal Bank  45.3  471,500,000  Under privatization  
Keko Pharmaceuticals Ltd  40  133,725,000  Joint venture  
Kiwira Coal Mines  40  120,000,000  Joint venture  
Tanzania Pharmaceutical Ltd  40  152,971,000  Joint venture  
Tanzania Portland Cement Ltd.  30  1,079,508,000  Joint venture  
National Bank of Commerce (NBC)  30  3,000,000,000  Joint venture  
Table III.3 (cont'd) 
                                                      
105 Government of Tanzania online information. Available at: www.pressnet-dc.com/Tanzania/ 
privatization.asp. 
106 UNCTAD and ICC (2005). 
107 In April 2005, the Government announced that a consortium led by Rabobank Nederland was the 
winner of the technical evaluation bids for NMB. The co nsortium is expected to complete the purchase of the 
49% stake in NMB soon, and to assume its management control (Economist Intelligence Unit, 2005a). EAC-Tanzania WT/TPR/S/171/TZA 
 Page A2-167 
 
 
 SOE  State share
(%) Total value of shares 
(T Sh)  Status  
Williamson Diamod Mines  25  10,000,000  Joint venture  
TANICA 64.53  716,496,880  Joint venture  
Tanzania Daesung Cables  29  92,222,000  Joint venture  
Kilimanjaro Airport Development Company Ltd  28  1,568,070,000  Joint venture  
Kilombero Sugar Co.  25  61,000,000  Joint venture  
Mbeya Cement Company Ltd.  25  ..  Joint venture  
Mwananchi Engineering And Construction 
Company(MECCO)  25  443,732,000  Capital structure to be firmed up  
Tanzania Planting Co.(TPC)  25  ..  Joint venture  
New African Hotel  23  5,000,000,000  Joint venture  
Abood Soap Oil Industries  20  550,000,000  Joint venture  
Tanzania Breweries Co. Ltd  4  1,179,713,900  Joint venture  
Tanzania Cigarette Co. Ltd  2.5  50,000,000  Joint venture  
Total  n.a.  837,768,737,462  n.a.  
.. Not available. 
n.a. Not applicable. 
Source:  Information provided by the Tanzanian authorities.  
80. Tanzania's choice of divestiture methods, whic h are not necessarily mutually exclusive, 
include: asset sale, share sales, and liquidation.108 Other divestiture methods include concessions (for 
long-term contracts) and leasing (for short-term app lication), where the private sector is allowed to 
operate certain activities (e.g. services and infrastru cture), but the Government retains ownership.  
The privatization method depends on the particular state/condition or financial strength of the 
company.  Tanzania does not restrict any fore ign participation in the privatization process. 
81. Tanzania has made no WTO notifications regard ing state-trading enterprises as defined in 
GATT Article XVII.  According to the authorities, SOEs or pr ivate companies do not officially hold 
any exclusive trade privileges or rights. 
(iv) Competition policy and price controls 
82. Competition policy in Tanzania is now regulated  by the Fair Competition Act of 2003, which 
repealed the Fair Trade Practices Act of 1994.  The 2003 Act prohibits the abuse of dominant position 
(dominant position per se , i.e. one third of market share, is not prohibited), anti-competitive 
agreements, misuse of market power, and mergers and acquisition that create or strengthen a position 
of dominance in a market.  
83. The Fair Trade Practices Act of 2003 establis hed a Fair Competition Commission (FCC), a 
five-person collegiate body to promote and protect effective competition in trade and commerce, and 
protect consumers from unfair and misleading mark et conduct.  The Act also established a Fair 
Competition Tribunal (FCT), an appellate body for the FCC and the regulatory bodies (i.e. Energy 
and Water Utilities Regulatory Authority (EWURA ), Surface and Marine Transport Regulatory 
                                                      
108 Asset sale is used when the company is not opera ting and when the value of assets of the company 
is greater than the value of its liabilities.  Share sale is mainly used when the company is operating.  Liquidation 
is used when the value of assets of a comp any is far less than that of its liabilities. WT/TPR/S/171/TZA Trade Policy Review 
Page A2-168 
 
 
 Authority (SUMATRA), Tanzania Communication Regulatory Authority (TCRA), and Tanzania 
Civil Aviation Authority (TCAA)).109 
84. The EAC Protocol provides the legal basis fo r competition policy within the region (Common 
Report, Chapter III(9)). 
(v) Intellectual property rights 
85. Intellectual property rights (IPRs) are consider ed a non-union matter and therefore mainland 
Tanzania and Zanzibar continue to have different le gislation.  IPRs legislation in mainland Tanzania 
comprises:  the Patents Act No. 1 of 1987, the Trade and Service Marks Act No. 2 of 1986, and the Copyright and Neighbouring Rights Act No. 7 of 1999.
110  Zanzibar main IPRs legislation is the 1932 
Decree on Patents.  Neither has legislation on geog raphical indications.  Parallel imports of goods and 
services containing any form of intellectual propert y rights are allowed in both mainland Tanzania 
and Zanzibar. 
86. Both mainland Tanzania and Zanzibar are curren tly revising their legislation with respect to 
patents and trade marks to meet WTO commitments by 1 July 2013.111 Tanzania has received 
technical assistance from the WIPO and other entiti es with respect to intellectual property, and 
anticipates the need for continued assi stance to comply with its WTO obligations. It has also received 
recommendations from WIPO on implementing protecti on for geographical indications as well as 
layout designs and topographics of integrated circuits. 
87. The Business Registration and Licensing Agency  (BRELA) continues to administer mainland 
Tanzania's IPR protection.  Patents protection is granted for ten years, and can be renewed for two 
terms of five years each;  trade and service marks prot ection is for seven years, renewable for ten-year 
periods.  Copyright protection is for the life of th e author plus 50 years.  In the case of joint 
authorship, protection extends through the life of the surviving author plus 50 years.  Anonymously published works and audio-visual works are protected for 50 years from the date of publication.  Applied art works are protected for a period of 25 years from the creation of the work.   
88. The Copyright and Neighbouring Rights Act No . 7 of 1999 established the Copyright Society 
of Tanzania (COSOTA), a copyright  office for mainland Tanzania.  
89. The Copyright Board of Zanzibar, established under Act No. 14 of 2003, aims to protect right 
holders and right users.  The body in charge of pate nts protection in Zanzibar is the Registrar General; 
patents must be protected first in England, then in Zanzibar. 
90. Tanzania (including Zanzibar) is a member of the African Regional Intellectual Property 
Organization (ARIPO), which grants patents and design registrations effective in the 14 ARIPO 
member countries.
112 Patents applications submitted in Tanzania are referred to ARIPO for 
preliminary and substantive examination.  Although Tanzania can grant patents, it has never done so; 
it has registered patents granted elsewhere. 
                                                      
109 Competition policy in the regulated areas is dealt w ith by the regulatory authorities with advice from 
the Competition Commission. 
110 Act No. 7 was drafted with th e technical assistance of WIPO. 
111 WTO document IP/C/40, 30 November 2005. 
112 In addition to Tanzania, the other ARIPO countri es are: Botswana, the Gambia, Ghana, Kenya, 
Lesotho, Malawi, Sierra Leone, Somalia, Suda n, Swaziland, Uganda, Zambia, and Zimbabwe. EAC-Tanzania WT/TPR/S/171/TZA 
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 91. Tanzania does not currently have the resources to  enforce its intellectual property laws but is 
moving toward active enforcement both domestically and at the border. It is working with the 
Copyright Collective Management Association on enforcement issues. Legal enforcement is possible through direct submission to Tanzanian courts.  Tanzania has established a Commercial Court, which 
has authority to deal with a variety of commercial matters, including intellectual property issues, and 
to impose penalties for actions inconsistent with Tanzanian laws. 
92. Tanzania (including Zanzibar) is a member of various international organizations that deal 
with intellectual property rights protection:  WIPO
113;  the International Union for the Protection of 
Industrial Property (Paris Union), founded by the Paris Convention for the Protection of Industrial 
Property;  and the International Union for the Pr otection of Literary and Artistic Works (Berne 
Union), founded by the Berne Convention for the Protec tion of Literary and Artistic Works.  Tanzania 
became a member of the Patent Cooperation Treaty on 14 September 1999,  and is a signatory to the 
Harare Protocol on Patents and I ndustrial Designs, and the Banjul Pr otocol on Trademarks.  COSOTA 
became a member of the International Confederati on of Societies of Authors and Composers (CISAC) 
in 2002. 
                                                      
113 Tanzania became a WIPO me mber on 30 December 1983. WT/TPR/S/171/TZA Trade Policy Review 
Page A2-170 
 
 
 IV. TRADE POLICIES BY SECTOR 
(1) I NTRODUCTION  
1. Sectoral policies in mainland Tanzania and Zanzibar differ in selected areas (e.g. on 
agriculture, energy, telecommunications, tourism) .  Agriculture remains the key sector of the 
Tanzanian economy.  Eight commodity boards are still in operation, although steps are being taken to 
give more control to private stakeholders.  Tanzania  is implementing an agriculture strategy aimed at 
improving profitability in the sector as the basi s for enhanced farm incomes and rural poverty 
reduction in the medium and long term.  Average ta riff protection in agriculture (major division 1 of 
ISIC, Revision 2) is 17.3%, with rates ranging from zero to 75%. 
2. Mining is the fastest growing sector in Ta nzania's economy. Gold and diamonds have 
traditionally been the primary minerals produced.  Ta nzania's legislative framework stresses the need 
to foster private-sector-led mining growth. MF N customs tariffs average 5.8% in mining and 
quarrying (major division 2 of ISIC, Revision 2), and range from zero on, inter alia , sulphur, natural 
graphite, natural sands, and quartz, to 25% on salt, asbestos, natural gas, a nd diamonds.  Imports of 
electricity are subject to a tariff rate of 10%. 
3. Tanzania's manufacturing sector is still under-dev eloped. An industrial development strategy 
is being implemented aimed at turning Tanzania  into a semi-industrialized country by 2025 by, inter 
alia, promoting further private sector participati on. A number of manufacturing industries benefit 
from various incentives programmes both in mainland Tanzania and Zanzibar. MFN customs tariffs 
on manufactured goods (major division 3 of ISIC, Revision 2) average 12.8%, with rates ranging up 
to 100% on food products, such as cane sugar and beat sugar. 
4. Tourism is by far the largest component of the services sector.  Several SOEs in the sector 
have been privatized or concessioned (e.g. the Na tional Bank of Commerce, part of the Tanzania 
Telecommunications Company, and the Tanzanian Railw ays Corporation). However, steps need to be 
taken to upgrade Tanzania's overall infrastructure,  and reduce costs related to financial services, 
telecoms, and transport. Under the GATS, Tanzania  scheduled commitments only on four-star hotels 
and above. 
(2) A GRICULTURE AND RELATED ACTIVITIES  
(i) Main features 
5. Agriculture is the leading sector of Tanzania 's economy, in terms of contribution to GDP, 
exports earnings, and employment generation.114  In addition, agriculture h as linkages with the rest of 
the economy through, inter alia , agri-processing activities, and provision of raw materials to several 
industries. FDI inflows into agriculture account for only 5% of the total.115  It is estimated that the 
sector should grow by 10% annually in order to re duce poverty (around 80% of the poor live in rural 
areas); Tanzania's agriculture sector grew at an  average of 3.1% per year during the past two 
decades.116  
                                                      
114 Agriculture accounted for 23.3% of Zanzibar's GDP in 2005, providing 75% of its foreign exchange 
earnings. Roughly 80% of Zanzibar's population derives their livelihood directly or indirectly from the sector. 
115 UNCTAD and ICC (2005). 
116 Ministry of Agriculture and Food Security (2005). EAC-Tanzania WT/TPR/S/171/TZA 
 Page A2-171 
 
 
 6. Tanzania has 44 million ha. of land suitable for agriculture (46% of its total land area), of 
which only 10.1 million ha. is under cultivation (Tab le IV.1), mostly by small-holder subsistence 
farmers.117 The main traditional cash crops are coffee, cash ew nuts, cotton, pyrethrum, sugar, tobacco, 
tea, and sisal.118 Livestock contributes 13% to agriculture and about 6% to Tanzania's GDP. About 
40% of livestock production is from beef, 30% fro m dairy products, and around 30% is poultry and 
small stock production.119  Tanzania is self-sufficient in food,  and is a net exporter of grains and 
cereals provided there is enough rain; this is reversed during droughts, and floods.120  
Table IV.1 
Main features of the agr iculture sector, July 2006 
(Million ha.) 
Total land 95.5 
Arable land 44.0 
Rangeland 50.0 
Land under livestock 24.0 
Tsetse infested area 26.0 
Cultivated land 10.1 
Area suitable for irrigation 1.0 
Area under irrigation 0.2 
Land under medium- and large-scale farming 1.5 
Per capita landholding (hectare/head) 0.1 
Source:  Information provided by the Tanzanian authorities.  
7. Tanzania has about 33.5 million ha. of forests and woodlands. Almost tw o thirds consist of 
woodlands on public property, wh ich lack proper management. About 13 million ha. are identified as 
forest reserves, of which 80,000 ha. are under plan tation forestry.  Deforestation continues to be a 
serious problem: it is estimated that between 130,000 and 500,000 ha. are lost per annum to 
agriculture, overgrazing, and other exploitative activities. 
8. Tanzania is well endowed with water resources, sharing three of the largest inland fresh water 
lakes in Africa (Lake Victoria121, Lake Tanganyika, and Lake Nyasa); it also has a diverse river 
system, numerous wetlands, 800 km of coast line, and an Exclusive Economic Zone in the Indian 
Ocean of about 223,000 square km. Fish exports (over 15% of merchandise exports) are Tanzania's 
second largest export, after gold; the main fishing product being the Nile perch (about 80% of fish 
exports), followed by prawns (5 %), and octopus (4%). Small-scale artisan fishers, using traditional 
methods, account for around 99% of the country's total fish catch.122 
(ii) Policy developments 
9. In 2001, Tanzania unveiled its Agricultural S ector Development Strategy (ASDS), with the 
overall objective of creating "an enabling and conduc ive environment for improving profitability of 
the sector as the basis for improved farm incom es and rural poverty reduction in the medium and 
                                                      
117 Approximately 85% of the arable land is used by smallholders who operate between 0.2 and 2 ha., 
and traditional agri-pastoralists who keep an average of 50 head of cattle. 
118 In Zanzibar, the main crop is cloves, followed by coconuts, spices, rice, cassava, bananas, sweet 
potatoes, yams, legumes, and vegetables. 
119 Ministry of Water and Livestock Development (2005). 
120 Ministry of Agriculture and Food Security (2005). 
121 Lake Victoria, the world's second largest lake, is the source of 70% of Tanzania's total fish 
production. Tanzania owns 51% of Lake Victoria, 45% of Lake Tanganyka, and 20% of Lake Nyasa. In total, 
Tanzania has about 54,000 square km of lakes. 
122 Approximately 150,000 artisan fishermen make their living through fishing. WT/TPR/S/171/TZA Trade Policy Review 
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 long-term".123   The ASDS target for 2005-07 is to achieve  an average annual growth rate of 5% for 
agriculture.  The specific measures of the ASDS include124:  strengthening the institutional 
framework125, including restructuring the Commodity Boards  (section (iii) below);  increasing private 
sector participation through the creation of a favourable climate for commercial activities126;  
clarifying public and private roles regarding su pport services (e.g. R&D, extension, training, 
regulation, and finance);  impr oving net farm returns and comme rcializing agriculture through 
marketing inputs and outputs127;  developing new technologies for increased productivity of labour 
and land;  and mainstreaming planning for agricultural development in other sectors so that due attention is paid to issues such as rural infrast ructure development through the Rural Development 
Strategy (RDS). 
10. Three ministries are mainly responsible for im plementation of the ASDS:  the Ministry of 
Agriculture, Food, and Co-operatives (MAFC), the Mi nistry of Livestock Development (MLD), and 
the Ministry of Industry, Trade, and Marketin g (MITM).  In addition, the Inter-ministerial 
Coordination Committee (ICC), and the Technical Inter-ministerial Committee (TIC) are monitoring the ASDS at the national and district levels, resp ectively, in coordination with the RDS evaluation 
framework.  It is estimated that the cost of implementing the ASDS will amount to US$255 million.
128  
11. Tanzania has various aid and support measures for agriculture, including the Agricultural 
Input Trust Fund, which provides loans at concessi onal interest rates for the purchase of inputs and 
equipment (e.g. tractors).129  A total of 619 low-interest loan s worth T Sh 12.6 billion were issued 
through the Fund between 1995/96 and 2004/04. In 2003/04, for the first time in twelve years, the 
Government provided subsidized fertilizer in th e grain-producing southern highland area of the 
country. In 2004/05, T Sh 7.2 billion were set aside  to subsidize the transport of 80,389 tonnes of 
assorted fertilizers through Tanzania.  The Govern ment, in collaboration with the private sector, has 
also been involved in production and distribution of seeds. Availability of better seeds for grains, 
cowpeas, and oil seeds increased from 2,750 tonnes in  1995/96 to 10,650 in 2003/04. Moreover, the 
Government has been financing other agricultu re-related activities, such as R&D, extension 
services130, pest control131, and training for experts and farmers. 
12. In September 2002, the MAFC launched the National Irrigation Master Plan. A total of 
224,486 ha. were developed for irrigation in 2003/04,  with 143,000 ha. expected to be added in 
                                                      
123 For a description of Tanzania's agricultu ral policies up to 2000, see WTO (2000). 
124 Government of Tanzania (2001). 
125 Farmers' organizations, such as the Tanzania Chamber of Agriculture and Livestock (TCAL) and 
the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA), are to be promoted. 
126 Some of the actions proposed are: monitoring agricultural lending rates; rationalizing the tax 
regime, and devising appropriate investment incentives for the sector; reviewing en ergy tariffs and oil prices; 
formulating and implementing a food security policy; and streamlining pr ocedures for legal access to land. 
127 Proposed actions include: establishing a privat e agri-business sector support unit; promoting agri-
processing and rural industrialization; increasing access to inputs in rural areas; improving rural marketing 
infrastructure; and fostering partnerships between smallholder farmers and agri-business. 
128 Government of Tanzania (2001). 
129 The average interest rate on loans for inputs and equipment went from 20% between 1995/96 and 
1998/99, to 10% in 2004/05 (Ministry of Agriculture and Food Security, 2005). 
130 As a result of extension services, such as "shamb a darasa" (the farm as a classroom), the number of 
farmers preparing their land in time increased from 60% in 1995 to 77% in 2003 (Ministry of Agriculture and 
Food Security, 2005). 
131 The budget for pest control rose from T Sh 945 million in 2003/04 to T Sh 2.2 billion in 2004/05. EAC-Tanzania WT/TPR/S/171/TZA 
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 2005/06. The District Agriculture Development Pr ogramme (DADP) has set aside T Sh 181.1 million 
(equivalent to 5% of the total DSADP's budget), for irrigation in 2005/06.132 
13. Several other policies have, or are expected to  have, a bearing on Tanzania's agriculture: the 
National Land Policy aims to promote and ensure a secure land tenure system, encourage the optimal 
use of land resources, and facilitate broad-based  socio-economic development without endangering 
the environment; the Water Policy, still to be finaliz ed, is to ensure that the interests and rights of 
various water users, particularly the requirement of catchments, crops, and livestock, are taken into 
account when allocating water; and the National Micro -finance Policy, still to be implemented, is to 
provide a framework to empower farmers and livestock keepers through access to credit.133 
14. In order to increase its livestock exports, Tanzania envisions a policy of creating specific 
disease-free zones (Chapter III(2)(vi)(c)). 
15. Most of Tanzania's agricultural parastatals have been divested under the privatization 
programme, while others, such as the National Ag ricultural and Food Corporation (NAFCO), the 
National Ranching Company (NARCO), the Dairy Farming Company (DAFCO), and the National 
Milling Corporation (NMC) are in the process of being divested. However, a number of parastals (e.g. 
commodity boards, National Environmental Mana gement Commission (NEMC), Tanzania Official 
Seed Certification Agency (TOSCA)), continue to play an important role in the sector. 
16. The average MFN tariff in agriculture (ISIC Rev.2 definition) is 17.3%, with rates ranging 
from zero to 75%.  Tariffs are particularly high on dairy products (38.5%), grains (28.3%), and tobacco products (28.0%).  Tanzania applies an  export tax on raw cashew nut, and a cess of 20% on 
raw hides and skins, to encourage local processing of  these goods (Chapter III(3)(ii)). There are other 
taxes/fees in the sector  such as the crop cess
134, agricultural services fees135, and the forest produce 
cess.136 
17. According to Zanzibar's  Strategic Plan for the Development of Agriculture 2005-10137, 
Zanzibar's comparative advantage in the sector lies in the production of cloves, copra, tropical fruits, 
vegetables, spices, and essential oils, and in the e xpansion of food and livest ock production. The Plan 
identifies as major constraints: poor coordina tion and limited capacity, underdeveloped support 
facilities, erosion of the natural resource base, heavy reliance on rain-fed agriculture, lack of 
mechanization, inadequate support services to the sector, reliance on hand hoes as the main 
cultivating tool, poor marketing of agricultural produc ts, lack of proper storage techniques, lack of 
crop diversification, lack of private sector investment, and lack of technical know-how. 
18. The Plan's objectives are: creation of a fa vourable climate for commercial activities and 
increased private sector participation; clarification of the public/private sectors' role in improving 
                                                      
132 Ministry of Agriculture and Food Security (2005). 
133 The National Micro-finance Policy will, inter alia , include a range of financial services to small-
holder farmers. It will establish the Rural Savings and Credit Cooperative Societies (SACCOS), and other 
formal lending institutions to make input and credit facilities availabl e to crop growers. 
134 The crop cess is the only remaining local government tax on crops.  It is alternate;  the highest rate 
is  5% of the farm gate price.  Various crops are su bject to the cess, including cereals (e.g. rice and beans). 
135 Fees for agricultural services (when provided by local authorities) include abattoir slaughter service 
fee, meat inspection fee, artificial in semination fee, and livestock dipping f ees. There is also a livestock market 
fee charged on livestock sold in au ction markets, at points of sale. 
136 The forest produce cess must not exceed 5% of the price and is paid by licensed buyers of forest 
products on sales of timber, charcoal, logs, firewood, and poles. 
137 Ministry of Agriculture, Livestock, and Environment (2004).   WT/TPR/S/171/TZA Trade Policy Review 
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 support services (e.g. research, extension, training, re gulation, information, and technical services and 
finance); improvement of net farm returns thr ough development of marke ting and commercialization 
strategies; mainstreaming planning for agricultural development in other sectoral policies so that due 
attention is paid to crossing issues (e.g. rural infr astructure development, the impact of HIV/AIDS and 
malaria, and environmental management); and strengthening the institutional framework for 
managing agricultural development in Zanzibar by building the capacity of relevant public sector 
organizations and strengthening all form s of community-based organizations.138 
(iii) Selected products 
(a) Crops 19. Production of major the traditional crops in Tan zania has increased in recent years;  these 
include coffee, cashew nuts, cotton, sugar, tobacco, tea, sisal, and pyrethrum. Non-traditional export 
crops are those whose availability depends on su rplus production, primarily oilseeds, pulses, 
horticulture and floriculture, and spices. About 70% of Tanzania's crop area is cultivated by hand hoe, 
approximately 20% by ox-plough, and 10% by tractor.
139  
20. Excessive taxation, and the negative role of co mmodity boards have been identified as the 
main supply-side constraints facing export crops in  Tanzania. Taxes are sometimes levied on transit 
goods, as well as on sales.  Taxes also vary by distri ct;  this creates uneven incentives, and encourages 
producers to transport their products to neighbouring districts with lower local taxes.140 The 
authorities are taking measures to rationalize the ta x regime in agriculture, such as reducing the 
number of local government taxes. 
21. Tanzania has eight commodity boards:  for cash ew, coffee, cotton, pyrethrum, sisal, sugar, 
tea, and tobacco; up to 1 July 2006, the commod ity boards placed a 2% levy on exports (1% to 
promote processing capabilities, and 1% to support research, extension, and training services).141 
Commodity boards, inter alia , regulate products, inspect their quality, announce indicative prices 
(minimum prices to be paid to farmers), and collect and disseminate statistics. Factors that limit their 
capacity include: lack of skills in strategic planning, coordination, and implementation of 
programmes; and inadequate staff and facilities to enforce regulations  and standards, and collect and 
disseminate information.  Moreover, commodity board s have been criticized for intervening in ways 
that distort markets and harm farmers.142  To address such concerns, the authorities are taking steps to 
restructure them, so as to give more control to private stakeholders.143  
Coffee 
22. Coffee is Tanzania's largest export crop (US$63 million in 2003, equivalent to 6% of total 
merchandise exports). Nevertheless, export earnings  from coffee represent only about one third of 
their 1995 level, largely due to lower world pri ces and reduced production. Tanzania produces 0.7% 
of world coffee output;  about two thirds is mild Ar abica, and the rest is hard Arabica and Robusta.  
                                                      
138 Ministry of Agriculture, Livestock, and Environment (2004).   
139 Tanzania National Website online information.  Av ailable at: www.tanzania.go.tz/agriculture.html. 
140 Integrated Framework (2005). 
141 Commodity or crop boards were  formed after the marketing liber alization to replace the monopoly 
of market boards for export crops. They were expected to continue with many of the regulatory, reporting, and services activities of the former market boards (see WTO, 2000). 
142 Integrated Framework (2005). 
143 Government of Tanzania (2001). EAC-Tanzania WT/TPR/S/171/TZA 
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 Only 5% of coffee is grown in estates, while 95% is  grown by smallholders, providing employment to 
400,000 families.  A tariff of 25% is imposed  on imports of coffee and coffee products. 
23. The area under coffee has more than doubled in  the past 20 years, but annual production has 
remained stagnant.144  Production in the traditional coffee growing regions has declined due to a 
variety of factors, including low prices and low yi elds.  About 90% of the national output is sold 
through the Moshi coffee auction, a statutory body  managed and run by the Tanzania Coffee Board 
(TCB).  Direct sales of coffee are only allowed for top quality and special coffees. The buying procedures are still tightly controlled by the TCB.
145  Furthermore, in a reversal of the liberalization 
policy, the Government suspended the buying licences of private traders during 2000-02 seasons to 
bolster cooperative unions, which had incurred a la rge exposure from buying coffee from farmers and 
holding it while world prices collapsed. 
24. The coffee subsector comprises:  small-scale farmers (owning 1–10 acres of land) producing 
about 90% of coffee grown in Tanzania;  large-scal e farmers;  the Coffee Association of Tanzania 
(CAT)146;  coffee processors;  suppliers of fungicid es and insecticides for c ontrolling plant diseases 
and pests affecting the coffee trees and products;  lo cal governments, which are administrators in the 
areas where coffee is grown;  the Tanzania Coff ee Research Institute, which analyses modern farming 
methods, coffee diseases, development of high-yie ld and disease-resistant seeds and seedlings;  the 
TCB, under the MAFC, which is the regulator, prom oter, and developer of the coffee industry in 
Tanzania;  and the MITM, which has an indirect  link with the subsector through coffee processing 
companies and marketing of processed coffee. 
25. Clean coffee (exportable) is predominantly sold  through auctions conducted centrally by the 
TCB147, while in the internal market, coffee is bought  from farmers at designated posts.  Following 
liberalization of coffee trade in Tanzania in 1994/95 , farmers became free to sell their coffee in cherry 
or parchment to any licensed coffee buyer.  Pr ices are negotiated between farmers and buyers. 
Cashew nuts 
26. Cashew nuts are Tanzania's second largest e xport crop (US$60 million in 2003).  Tanzania 
ranks fourth in the world in terms of cashews pr oduction (8% of world production in 2002).  Cashews 
provide income for some 250,000 smallholder farmer s i.e. 98% of cashew production in the country, 
mainly in the southern coastal region.  The 12 larg e factories previously owned by the State, with 
100,000 tonnes processing capacity, have now been privatized.148  Cashews production and exports 
have fluctuated from as low as 63,033 tonnes in 1997 to a peak of 122,288 tonnes (121,379 were 
exported) in 2001. The 2005 production is estimated at around 81,600 tonnes, 86.6% of which were 
exported. 
                                                      
144 Production of clean coffee has fluc tuated from as low as 36,200 tonnes in 2002 to a peak of 
58,100 tonnes in 2001.  Production is estimated at around 54,000 tonnes for 2005 (up from 37,500 tonnes in 
2004). 
145 For quality control purposes, for example, each y ear the Board announces the date on which coffee 
buying should commence. 
146 CAT members are coffee farmers' groups and business people.  CAT advises the Government on 
policy issues affecting the coffee industry. 
147 Licensed coffee exporters particip ate in auctions held weekly at  Moshi Coffee Auction located in 
the Kilimanjaro region. Coffee is traded  in dollars and, prior to the session , TCB sets a "reserve price" for each 
lot. Although "reserve prices" are not  announced in advance, TCB sets them  in accordance with expected prices 
in New York and London.  Bids are presente d orally until the highest bidder is found. 
148 Three more factories, using manual technologies, were established recently with a total operating 
capacity of 17,000 tonnes. WT/TPR/S/171/TZA Trade Policy Review 
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 27. Some of the main problems facing cashew farmer s are: the decline in quality, which occurred 
after the marketing liberalization of 1994/95; diffi culties in obtaining financing for farming and pre-
marketing production activities149;  and old trees and relatively low yields.  Support to cashew 
producers is given mainly through the Cashew Nuts Development Fund.  
28. The cashew nut subsector comprises:  farmers (smallholders owning farms between 1-
2 hectares);  buyers mainly for exports in raw form  to India;  processors who buy raw cashew nuts and 
process locally for export and local consumption;   suppliers of fungicides and insecticides for 
controlling plant diseases and pests affecting the cash ew trees and products; local administrators in 
the areas where cashew nuts are grown;  Naliendele Agricultural Research Inst itute dealing mainly in 
research on modern farming methods, cashew dis eases, development of high-yield and disease 
resistant seeds and seedlings;  cooperative societi es and unions providing marketing links between 
buyers and farmers of cashew nuts;  Cashewnut Bo ard of Tanzania (CBT), under the MAFC, which is 
the regulator, promoter, and developer of the cashew  industry in Tanzania;  and the MITM, which has 
an indirect link with the sector through cashew processing industries and marketing of raw and processed cashew nuts. 
29. The price of raw cashew nuts is set by interna tional buyers in the Tanzanian market;  the price 
of processed cashew nuts is set through global co mpetition for various grades of blanched nuts in 
general, and cashew nuts in particular. Farmers and buyers meet before each cashew buying season 
under the guidance of the CBT and agree on the minimum price at the beginning of the forthcoming season.
150  
Cotton 
30. In 2003, cotton exports from Tanzania reach ed US$45 million (4.5% of total merchandise 
exports). Cotton provides employment to half a million rural households, primarily smallholders. 
Production increased from 60,480 tonnes in 2002/03 to an estimated 104,640 tonnes in 2004/05, partly because of favourable weather conditions.  The import tariff on raw cotton is 0%, while the 
average tariff on cotton products (HS 52.04-12) is 21.1%, with rates ranging from 10% to 50%. 
31. The private sector markets over 90% of the cott on in Tanzania.  Private ginners have also 
expanded into contract farming,  and have taken over input distribution from the Cotton Board. 
Support to cotton producers is given mainly through the Cotton Development Fund, established in 1999. Some of the main functions of the Fund in clude financing R&D, extension services, and 
procurement and distribution of cotton inputs. 
(b) Livestock 
32. The livestock subsector has grown an annual rate  of over 2.7% during the last decade, and 
according to the NSGRP, it is programmed to grow  by around 9% by 2010 in  order to reduce poverty 
in rural areas. Tanzania has about 50 million ha. suita ble for livestock farming, of which only half is 
                                                     
 
149 Most farmers finance through their own savings, or through village lenders, traders, or input 
suppliers. 
150 The basis for the minimum price is the raw cashe w nut prices prevailing in various markets (e.g. 
India (main buyer), and Indonesia).  The agreed price must ensure farmers at least 60% of the f.o.b. price for 
raw cashew nuts. Once the minimum price has been set, actual prices in market are set through competition between buyers.  If there is a wide fluctuation between the market and the minimum prices, farmers and buyers 
meet again to review the situ ation and set another price agreeable to both  parties but not below 60% of the f.o.b. 
price. EAC-Tanzania WT/TPR/S/171/TZA 
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 currently used, mainly due to tsetse fly infesta tion. Tanzania has over 80 million animal units: poultry 
(47 million units, or 57.7% of the to tal), cattle (21.7%), goa ts (15.3%), sheep (4.3%), and pigs (1%). 
Total meat production increased from 244,000 tonnes in 1995 to 348,800 tonnes in 2004, and milk 
production rose from 555 million litres to 1.18 billion litres over the same period. The majority of 
rural farm households own livestock.151 Imports of live animals are subject to an average tariff of 
18.5%, while the tariff rate is 25% for meat and ed ible offal, and 38.5% for dairy products average. 
33. There are three types of livestock production system in Tanzania:  commercial ranching, 
pastoralism, and agro-pastoralism.  Commercial ra nching accounts for about 2% of the total cattle 
herd.  It is practised mainly by  the National Ranching Company (NAR CO), which is in the process of 
being privatized.152  Pastoralism, mainly for livestock subsis tence, is concentrated in the northern 
plains, and is found in traditional grazing areas wher e climatic and soil conditions do not favour crop 
production.  Agri-pastoralism, a combination of cr op cultivation and livestoc k keeping, has increased 
at an annual rate of 2% over the last few years.153  
34. The Ministry of Livestock Development (MLD) is responsible for all livestock matters. In 
2005, MLD launched its livestock policy aimed at s timulating the development of the subsector in 
order to increase the income of livestock keepers, a ttain self-sufficiency in food production of animal 
origin, and raise livestock contribution to GDP. To achieve this, MLD is to build an efficient and 
competitive subsector; to support the emergence of a more diverse structure of production with an 
increase in the number of successful smallholder farming enterprises; and to conserve and promote the sustainable use of livestock resources. 
35. Tanzania is presently struggling to control and er adicate several of the OIE  List A epidemic 
diseases, which are severely restricting its access to  international markets (Chapter III(2)(vi)(c)). 
Consequently, most of the livestock products are for domestic consumption. In order to increase 
livestock exports, MLD envisions a policy of crea ting specific disease-free zones, which would be 
recognized by its trading partners in accordance with the OIE's Terrestrial Animal Health Code.
154 
Livestock exports are currently limited to neighbouring countries. 
36. In Zanzibar, the livestock keeping system can be classified as agri-pastoralism;  it is mostly 
traditional, with low productivity.  However, followi ng the eradication of tsetse flies, Zanzibar now 
has the potential to develop the subsector to meet lo cal needs.  Zanzibar has an estimate 120,000 cattle 
(of which 8,000 are crosses for dairy production) , 45,000 small stock (goats and sheep) and 
700,000 poultry. 
(c) Fisheries 
37. Tanzania has a fishing area of 200 nautical miles (12 nautical miles are territorial waters and 
188 nautical miles are in its Exclusive Economic Z one).  Fisheries contribute approximately 3% to 
Tanzania's GDP.  In 2003, fish exports accounted for 15% of Tanzania's total merchandise exports 
(Table IV.2).  The world market share of Tanzan ia's fish exports increased from 0.02% in 1990 to 
0.25% in 2003, mainly due to strong demand for Nile  perch and prawns. Fish is the main source of 
                                                      
151 Tanzania Ministry of Water and Livestock online information. Available at: 
http://www.mifugo.go.tz/sectorBrief.htm. 
152 NARCO operates 15 ranches with a total land holding of 623,000 ha., and stock-holding capacity of 
155,300 head (Tanzania National Website online information. Available at: www.tanzania.go.tz/ livestock.html). 
153 Out of 3.7 million households in Tanzania, 3% are pastoralists, and 7% are agri-pastoralists. 
154 Integrated Framework (2005). WT/TPR/S/171/TZA Trade Policy Review 
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 protein for nearly one third of the population, and provides employment for about 100,000 fisherman; 
an additional 500,000 derive their economic livelihood from the subsector.  On the basis of ISIC 
(Revision 2) definition, MFN tariffs on fisheries products average 25%.   
Table IV.2 
Fisheries exports, 1998-04 
(Tonnes, T Sh, and U.S. dollars) 
Value Year Quantity 
('000 kg) (T Sh million) (US$ million) Duties 
(T Sh million) 
1998 46.7 54,837.0 83.5 3,290.2 
1999 28.9 44,712.6 61.8 2,687.1 
2000 41.7 51,173.6 64.5 3,071.4 
2001 41.6 82,999.7 95.5 5,244.3 
2002 33.0 88,941.0 94.2 4,981.4 
2003 42.4 132,862.4 129.6 7,790.0 
2004 37.0 98,858.4 92.2 5,718.5 
Source: Information provided by the Tanzanian authorities.  
38. The regime for internal water fishing is differe nt between the mainland and Zanzibar, but they 
have the same regulations for deep-sea fishing.  Tanzania's fisheries are operated wholly by the 
private sector.  Primary fishing is reserved for Ta nzanian nationals, and exports of unprocessed fish 
are prohibited. However, there are no restrictions on FDI in the related secondary or tertiary activities, 
such as fish processing facilities.  Tanzan ia currently has 53 processing facilities.  
39. Licences fees are different for local and forei gn investors (Table IV.3). Licences for foreign 
investors, as well as for fishing vessels of more than 11 metres, are issued in Dar es Salaam only, while nationals can obtain licences through the regi onal/district offices of the Ministry of Natural 
Resources and Tourism (MNRT).  
Table IV.3 
Fishing licence fees, July 2006 
(U.S. dollars) 
 Local Foreign 
Deep-sea fishing   
  Registration fee 200 2,000 
  Licensing fee per year 5,000 16,000 
Fishing vessel registration and transfer fee   
  Fishing vessel (11.0 metres long and more) 4.8-300 6-19,200 
  Sports fishing vessels 6.72 120 
  Vessels between 21 and 159 GRT 68.16 48,000 
Source:  Information provided by the Tanzanian authorities.  
40. During 1997-00, Tanzanian fish exports (as well as those of Kenya and Uganda) were subject 
to a series of restrictions from the EC due to concerns over food safety controls, in particular 
regarding Nile perch.  In response, the Fisheries Department of the MNRT, which is responsible for 
all aspects of fish and fish products management in Tanzania, took several measures to harmonize its 
regulatory controls with those of the EC. As a resu lt, the EC lifted its restrictions, and is now the 
destination for about 80% of Tanzanian fish exports. 
41. The Fisheries Act No. 22/2003 replaced the 1970 Fisheries Act "to make provision for 
sustainable development protection, conservation, a quaculture development, re gulation and control of 
fish, fish products, aquatic flora and its products, and for related ma tters". The Fisheries Development 
Fund is to be established under the Act.  Its main objectives will be to: promote awareness of the 
importance of the sustainable use of fisheri es resources through public education and training; EAC-Tanzania WT/TPR/S/171/TZA 
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 promote and assist community management units by  giving grants and assist ing persons wishing to 
form fisheries conservation and protection groups; pr omote and develop research in fisheries; promote 
fishery products in the external market, and complia nce with international standards of quality for the 
local market. The Fisheries Act a pplies only to mainland Tanzania. 
42. The strengthening of safety and quality capacity is part of the Master Plan on Fisheries 
Development launched in June 2002, which aims to develop the capabilities of artisanal fisheries in 
Tanzania. The Plan includes enhancing export product competitiveness through improvements in, 
inter alia , infrastructure. Other problems facing the subsector include high transport costs, which 
account for nearly 40% of the total cost of frozen  fish production, and 80% for fresh products that 
require air-freighting.  Moreover, it is estimated that  the various taxes, fees, and levies that Tanzanian 
fish processors pay add an additional T Sh 120 to T Sh 200 per kg to the cost of raw fish inputs.155 
43. In Zanzibar, fishing is predominantly an artisan  activity, where operations are limited to near-
shore waters, and boats ar e generally propelled by paddle, sail, outboard engine or a combination of 
these. Fish is mainly used for subsistence, is so ld locally to a wholesaler/transporter, or processed 
with a low level of technology (e.g . smoking, drying) to extend its shelf life. Fish processing (salting, 
home canning, smoking, and drying) may become an important activity in certain fisheries in the 
future. 
(d) Forestry 
44. Tanzania's forestry subsector is estimated to  contribute approximately 3.5% to GDP, and 
constitutes approximately 10% of Ta nzania's exports. Exports of for estry products during 1999/00 to 
2002/03 are shown in Table IV.4. The wood industry accounts for about half of the subsector's 
contribution to GDP. Tanzania has 16 plantations c overing an area of 80,000 ha. Employment in the 
subsector amounts to about 700,000 person years in both formal and informal activities. MFN tariffs 
on forestry products average 4.4%, with rates ranging up to 10%. 
Table IV.4 
Exports of forestry products and beekeeping, 1999/00 to 2002/03 
1999/00 2000/01 2001/02 2002/03 
Products Volume/ 
weight Value 
(US$'000) Volume/ 
weight Value 
(US$'000) Volume/ 
weight Value 
(US$'000) Volume/ 
weight Value 
(US$'000) 
Logs (m3) 1,956.7 585.6 1,724.3 453.4 934.6 299.0 4,556.3 1,154.2 
Timber (m3) 103.7 710.0 511.0 15.5 1,230.0 271.0 3,108.8 3.01 
Ebony (m3) 848.2 1,355.5 62.7 294.3 38.5 368.4 35.0 247.5 
Floor boards (m3) 6,546.2 87.1 157.1 114.0 66.0 46.2 348.9 129.1 
Wood carvings (pcs) 258,494.0 1,210.7 83,746.0 163.5 56,254.0 114.5 120,098.0 1,101.4 
Other (m3) 21.2 9.2 43.0 4.8 .. .. .. .. 
Tree seeds (kg) .. .. 69.0 18.6 80.5 24.1 .. .. 
Beeswax (tons) .. 2,405.6 431.0 1,044.5 109.0 306.7 600 1800 
Honey (tons) .. 167.7 12.0 5.4 1.8 2.3 12 12 
Total n.a. 6,531.4 n.a.  2,114.3 n.a. 1,432.5 n.a. 4,447.3 
.. Not available. 
n.a. Not applicable. 
Source: Information provided by the Tanzanian authorities.  
45. The Ministry of Natural Resources and Tourism (MNRT) is responsible for implementing the 
Tanzania Forestry Action Plan (TFAP).  The overall goal of the policy is to enhance the contribution 
                                                      
155 Integrated Framework (2005). WT/TPR/S/171/TZA Trade Policy Review 
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 of the forest sector to the sustainable developmen t of Tanzania, and the conservation and management 
of its natural resources. MNRT is also responsible  for the regulation of trade in forestry products. 
Private companies dominate forestry in the co untry. Previously, the Tanzania Wood Industry 
Corporation (TWICO), a state-owned enterprise pr ivatized on 30 June 2002, was responsible for 
harvesting and selling wood products.156 
46. Lumber from all species can be exported, but current  restrictions cover the export of all logs.  
Charcoal exports are prohibited.  MNRT grants  licences for product exports. Tanzania does not 
impose any restriction on foreign direct investment in the forestry sector. 
47. Tanzania is a member of the International Tropical Timber Organization.  It is also a member 
of the Convention on International Trade in Enda ngered Species of Wild Fauna and Flora (CITES). 
(3) M INING AND ENERGY  
(i) Mining 
48. Mining is the fastest growing sector in Tan zania's economy:  its contribution to GDP 
increased from 1.5% in 1999 to 3.2% in 2004;  this  share is expected to reach about 10% by 2025 
according to the Development Vision 2025.  Mining export earnings rose from US$185 million in 
2000 to US$693 million in 2004 (52% share of total merchandise exports). About 1.5 million people 
are engaged in mining activities;  90% are small-scal e and artisan miners.  Foreign investment in 
mining totalled US$1.3 billion in 2003.157  Gold and diamonds have traditionally been the primary 
minerals produced in Tanzania;  the others include  gemstones, phosphates, salt, coal, kaolin, building 
materials (gypsum and limestone ), and tin (Table IV.5). 
Table IV.5 
Mineral production, 2002-05 
(US$ million) 
2002 2003 2004 2005 Products 
Weight Value  Weight Value Weight Value Weight Value  
Diamonds (carats) 239.8 28.13 236.6 31.86 303.9 33.68 219.6 25.35 
Gold (kg) 43.3 372.33 48.0 504.14 48.0 596.62 45.3 643.64 
Gemstones (kg) 195.8 19.77 1,531.5 19.05 1,613.8 26.89 627.8 40.33 
Salt (tonnes) .. .. 17.0 1.32 26.2 2.05 17.0 1.63 
Phosphate (tonnes) 0.8 0.04 1.3 0.06 6.2 0.51 0.6 0.03 
Bauxite (tonnes) .. .. .. .. .. .. 1.8 0.03 
Gypsum (tonnes) .. .. .. .. .. .. 2.4 0.05 
Silver (kg)  7.6 0.95 8.0 1.32 13.2 2.95 12.9 2.99 
Copper (pounds) 9,309.0 7.70 8,191.0 7.33 9,348.2 12.17 7,633.0 12.62 
Total value  n.a. 429.76 n.a. 565.07 n.a 674.87 n.a. 726.79 
.. Not available. 
n.a Not applicable. 
Source: Information provided by the Tanzanian authorities. 
49. The Ministry of Energy and Minerals (MEM) is  responsible for regulating, promoting, and 
monitoring mining activities. Mining's legislative frame work is contained mainly in the 1998 Mining 
Act, and the 1999 Mining Regulations. It stresses the need to foster private-sector-led mining growth. 
Encouragement is being given to both small- and large-scale mining with emphasis on safety and 
                                                      
156 Ten logging companies previously owned by TWICO were also privatized.  
157 Ministry of Energy and Minerals (2005). EAC-Tanzania WT/TPR/S/171/TZA 
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 environmental concerns. Various investment incentiv es are available for mining, such as exemption of 
import duties and VAT on equipment and essential materials (Chapter II(3)). 
50. There are various types of mining licences and four fees under the 1998 Mining Act 
(Box IV.1). In addition, the Act provides for th e granting of licences for dealers of raw gold and 
gemstones, as well as for dealers, brokers, and for exporters of minerals. The Minister of Energy and 
Minerals has discretionary authority to designate any vacant area as an area exclusively reserved for 
prospecting and mining operations  by persons holding primary mining licences, reserved exclusively 
for Tanzanians.158  To date, 82 mining licences and over 1,500 prospecting licences have been 
issued.159 
Box IV.1:  Tanzania's mining licences  
Prospecting Licence:  an applicant must fill in form MRF 1 and submit it to the Registrar of Mineral Rights in duplicate.  
The maximum area covered by a prospecting licence with a preliminary reconnaissance period is 5,000 sq. km. The 
application fee for reconnaissance period is US$50, a prospecting licence for a ll minerals, other than gemstones or 
building materials, US$50. Requi rements include:  a plan of a licence area drawn on a topographical map to a scale of 
1:50,000;  evidence of the registration of a company;  a statem ent specifying financial and tec hnical resources available;  
and details of any mineral rights pr eviously granted to the applicant. 
Special Mining Licence:  an applicant must fill in form MRF 3 and pay an application fee of US$1,000. The application 
must be accompanied by:  a statement of the area for which th e licence is sought;  information on the mineral deposits in 
the proposed area;  proposed programme for mining operations;  environmental management plan ;  expected infrastructure 
requirements; employment and training of Tanzanian citizens; and any othe r information as may be required by the 
Minister.  A Special Mining Licence may be granted for a period not exceeding 25 years. 
Mining Licence:  the maximum area for all minerals other than  building materials or gemstones is 10 km2.  The 
application fee is US$500. Every application must be accompanie d by:  the relevant prospecting licence;  description of 
the area and the mineral deposits in it;  feasibility study;  an indication of the duration (not exceeding ten years);  
environmental impact assessment; and any other information as may be required by the Minister. 
Gemstone Mining Licence:  an applicant must fill in form MRF 5 and pa y an application fee of US$500.  The maximum 
area for a gemstone mining licence is 1 km2.  Requirements for successful application include:  a statement on the 
duration, not exceeding ten years;  a description and sketch of the area of land;  description of gemstone deposits in the 
area;  proposed programme for mining operations;  envir onmental impact assessment if it falls under the Mining 
Regulation; and any other info rmation as may be required. 
Retention Licence:  this may be granted for a period not exceeding five  years.  The applicatio n fee is US$1,000.  The 
holder of a prospecting licence may apply for a retention licence on the ground that:  mineral deposits have been identified 
within the prospecting area;  the mineral deposits cannot be  developed immediately becaus e of technical constraints, 
adverse market conditions, etc;  and proof , through studies and assessments by expe rts, acceptable to the Minister, on the 
extent, prospect for recovery, and the commercial significance of the recovery.  An application for a retention licence must 
be submitted to the Mining Advisory Committee for its advice.  
Primary Prospecting Licence:  this is retained exclusively for Tanzanian citizens. An applicant must fill in form MRF 7 
and pay an application fee of T Sh 10,000.  Requirements for a successful application include:  in case of an individual, 
full name and place of residence;  and in case of a company, its corporate name and evidence of registration.  The 
maximum demarcated area for a primary prospecting licence for all minerals other than building materials shall be 
10 hectares. The licence is granted for one year, renewable upon request. 
Primary Mining Licence:   this is retained exclusively for Tanzanian citiz ens and is for a period of five years, renewable. 
Application is made to the Commissione r, using form MRF 8, along with paymen t of the T Sh 10,000 application fee.  
The maximum size for a primary mining licence for all minerals other than building materials is 10 hectares.  
Requirements for a successful application in clude:  a completed application form a nd payment of the fee;  and description 
of the area over which the licence is sought. 
Box IV.1 (cont'd)  
                                                      
158 The 1998 Mining Act, Section 14. 
159 Tanzanian Investment Centre online information.  Available at: www.tic.co.tz/mining. WT/TPR/S/171/TZA Trade Policy Review 
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 Dealers Licence:  an application for a dealer's licence must be submitted in duplicate to the Commissioner, using form 
MTF 5, along with payment of the T Sh 40,000 application fee.   The Mineral Dealer's Licence costs T Sh 250,000 for a 
period of 15 months. Requirements includ e:  information on the names and nationa lity of directors, types of precious 
minerals, experience in dealing with precious minerals, description and addr ess of business premises, details of 
arrangements for safe custody of precious minerals, and evidence of financial reso urces available;  copy of Memorandum 
and Articles of Association;  previous dealer's licence (if any);  and 25% of the shares must be owned by Tanzanian 
nationals.  The licence must be displayed at the place of business and the licensee is liable for the due in lieu of payment 
of royalties and other prescribed fees in respect of all minerals bought, sold, received or exported. 
Mineral Broker's Licence:  this is issued to Tanzanian citizens only.  An application for a broker's licence is made to the 
Commissioner, along with the applicati on fee of T Sh 10,000 and a completed form MTF 8.  The broker's licence costs 
T Sh 100,000 for 12 months.  Requirements in clude: information on the address and na tionality of the applicant, types of 
minerals, experience in dealing with prec ious minerals;  applied zones where th e application is made, and evidence of 
financial resources available;  and if it is a company, a copy of the Memorandum and Artic les of Association must be 
attached.  The licence does not  authorize the licensed broker to export precious minerals. 
Exporting Minerals:   for all mineral exports, authorized miners and/ or licensed dealers, must obtain an export permit 
issued by the Commissioner for Minerals ;  form MTF 1 must be completed. 
Source:  Information provided by the Tanzanian authorities.  
51. MFN customs tariffs average 5.3% in mining and quarrying (major division 2 of ISIC, 
Revision 2), and range from zero on, inter alia , sulphur, natural graphite, na tural sands, and quartz, to 
25% on salt, asbestos, natural gas, a nd diamonds. Imports of electricity ar e subject to a tariff rate of 
10%. 
(a) Gold 
52. Tanzania is expected to become Africa's th ird largest gold producer after South Africa and 
Ghana.160  It has a production capacity of around 1 million ounces (oz)/year, mainly from four mines 
located around Lake Victoria and in the south of the country:  Geita Gold Mine, a joint venture 
between South Africa's Anglogold and Ashantio of Gh ana, with an annual output of 500,000 oz/year;  
Golden Prime Mine, owned by Australia's Resolute , producing 200,000 oz/year;  Bulyanhulu Gold 
Mine owned by Canada-based Barrick Gold Corporation, with projected production of 
400,000 oz/year161;  and since March 2005, the Kahama Mini ng Corporation's Tulawaka Mine, with 
production of 70,000-75,000 oz/year.162 
53. Tanzania has faced significant problems due to gold and gemstone smuggling, which 
undermines tax revenue collection and leads to under-re porting of mineral exports.  Efforts are being 
undertaken to address smuggling through better en forcement of licensing and by simplifying export 
procedures. The viability of Tanzania's gold mines is highly dependent on international gold prices. 
(b) Diamonds and gemstones 
54. Tanzania has been a significant producer of diamonds for several decades.  The bulk of 
production comes from the Williamson Diamonds Mi ne at Mwadui, where commercial production 
began in 1925.  There are over 300 known ki mberlites in Tanzania, of which 20% are 
                                                      
160 In the global mining industry's survey for 2004, Tanzania was considered the eighth-best location in 
the world for mining investments (Economist Intelligence Unit, 2005a). 
161 Bulyanhulu comme nced production in March 2001, a nd became the first post-independence 
underground mine in Tanzania (Tanzanian Investment Centre online information. Available at: 
www.tic.co.tz/mining). 
162 Kahama is owned by Barrick Gold Corporation (70%), and Northern Mining Explorations (30%).  EAC-Tanzania WT/TPR/S/171/TZA 
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 diamondiferous.163  Coloured gemstones (excluding diamonds) are an increasingly important mineral 
product for Tanzania;  it is best known for Tanzanite, but it also produces ruby, sapphire, emerald, garnet, tourmaline, and other gemstones.  About 10 tonnes of precious and semi-precious stones are 
being produced annually.  Most of production continues to be smuggled. 
(ii) Energy 
55. The biomass energy resource, which comprises fuel-wood and charcoal from both natural 
forest and plantations, accounts for more than 93% of  total energy consumption (estimated at more 
than 22 million tonnes of oil equivalent) in Tanz ania. Petroleum, hydropower, and coal are other 
sources of energy in the country.  Energy demand reached about 4,000 GWh in 2003
164;  the current 
growth rate is 7-9% per year  
56. Tanzania has abundant untapped energy resour ces. Coal reserves are estimated at about 
1,200 million tonnes, of which 304 million tonn es are proven; natural gas proven reserves are 
estimated at 45 billion cubic meters;  and hydroelectri c energy has an installed capacity of 4.7GW, of 
which only around 10% is developed. In addition, solar, wind, and geothermal sources remain 
virtually unexploited, and could be used to re duce the use of wood and oil for heating purposes.165 
57. In 2003, a law was enacted to establish the Energy and Water Regulatory Authority 
(EWURA) replacing the Minister of Energy and Mine rals as energy regulator. However, delays in 
establishing EWURA have reduced the supervision capacity in the subsector, including for prices 
regulation.166 
58. In February 2003, MEM launched the National Energy Policy, with the objective of ensuring 
availability of reliable and affordable energy suppl ies and their use in a rational and sustainable 
manner in order to support national development goa ls. It aims to establish an efficient energy 
production, procurement, transportation, distributi on, and end-use systems in an environmentally 
sound and sustainable manner.167  
59. Energy consumption in rural areas accounts fo r about 85% of total energy consumption in 
Tanzania. As a result, Tanzania is estab lishing the Rural Energy Agency aimed at, inter alia , 
increasing availability of energy services in rural ar eas; supporting R&D;  and creating an institutional 
and legal framework to promote renewable energy, and entrepreneurship/private-sector involvement 
in its marketing. 
(a) Electricity 
60. Only around 10% of Tanzania's  population have access to electricity; about 1% of the rural 
population has access to grid electricity.168  Per capita usage is among the lowest in Southern Africa at 
about 46 kWh;  commercial and industrial user s account for about 50% of total consumption 
                                                      
163 Some 600 dipolar magnetic anomalies with geophy sical characteristics similar to known kimberlite 
pipes have been recorded during recent geophysical surveys.  Alluvial diamonds have also been recorded but a 
large deposit of economic exploitation has not yet been fo und (Tanzanian Investment Centre online information.  
Available at: www.tic.co.tz/mining). 
164 Mining contributed significantly to this demand growth. 
165 Tanzanian Investment Centre online information available at: www.tic.co.tz/Ipa. 
166 Ministry of Energy and Minerals (2005). 
167 Ministry of Energy and Minerals (2003). 
168 Ministry of Energy and Minerals (2005). WT/TPR/S/171/TZA Trade Policy Review 
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 (Table IV.6).  Electricity imports have increased  during the last few years because of insufficient 
capacity (Tanzania's electricity capacity is estim ated at 637 MW; 435MW by hydro and the rest by 
thermal systems).  
Table IV.6 
Electricity sales by type of use, 1999-04 
(kWh million) 
Mainland Tanzania Year 
Public  
lighting Domestic Commercial 
and industrial Zanzibar Total Power 
transmission 
loss Total power 
generated 
1999 2 1,126 566 115 1,809 516 2,325 
2000 2 1,192 614 105 1,913 571 2,484 
2001 4 1,048 836 127 2,015 727 2,742 
2002 0.1 1,120 823 133 2,076 714 2,790 
2003 0.2 1,058 1,190 145 2,393 792 3,185 
2004 0.1 1,163 1,232 161 2,556 841 3,397 
Source:  Information provided by the Tanzanian authorities. 
61. The Electricity Ordinance No. 131 of 1957 is th e main legislation concerning electricity.  
Electricity in Tanzania is dominated by TAN ESCO, a state-owned company, which currently 
produces only half of national electricity needs.169  It has a vertically integrated monopoly in the 
generation, transmission, and distribution of electricity.  Nevertheless, the recent change in 
management of TANESCO has resulted in a significant increase in revenue collection.170 
Furthermore, restructuring of TANESCO is exp ected to involve unbundl ing the company into 
generation, transmission, and distri bution entities before privatizing it.171 A major issue related to 
privatization is how to address the problems of rural electrification.  Creation of a Rural Electrification Fund is also being considered.  There are five tiers of electricity tariffs:  light industry;  
heavy industry;  household;  street lighting;  and bulk sales to Zanzibar. 
62. Tanzania's economy suffers from power s hortages and periodic power failures.
172 The 
manufacturing sector in Tanzania complains, on an ongoing basis, that power costs are too high, 
particularly compared with those in neighbouring countries.  These high costs can be a considerable 
obstacle to the development of economic activities, the manufacturing sector in particular. 
63. In Zanzibar, electricity is generated by TANESC O, but it is supplied by the Zanzibar State 
Fuel and Power Corporation (ZSFPC ), which is 100% state-owned, and sets prices.  The Zanzibar 
Parliament is currently discussing a proposal to liberalize electricity.173  
64. The East African Power Master Plan is be ing implemented under the auspices of the EAC 
Secretariat. Tanzania is also part of discussions with respect to the Southern African Power Pool, 
which is developing an interconnection to Zambia. 
                                                      
169 BBC News , 2 February 2006. 
170 Ministry of Energy and Minerals (2005). 
171 Currently, there are only  two private investors that participate in power generation projects: 
Independent Power Tanzania Limited, and Songas Limited (Ministry of Energy and Minerals, 2003). 
172 As a result of failed rains across East Africa, in ea rly 2006 Tanzania was forced to cut off electricity 
from 8 a.m. to about 5 p.m. each day. Powe r was on at night in order to curb crime ( BBC News , 
2 February 2006). 
173 The proposal calls for the end of ZSFPC's m onopoly, the removal of bureaucracy in selling 
electrical appliances (e.g. meters), and invites the private sector to take part in power generation and distribution 
(TMC Net News , 21 March 2006). EAC-Tanzania WT/TPR/S/171/TZA 
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 (b) Petroleum and gas 
65. Tanzania does not produce petroleum or gas. Nonetheless, various investment incentives are 
available to the subsector (Chapter II(4)), and a to tal of 33 exploration and development wells have 
been drilled, and some gas-fields are being deve loped (e.g. Songo Songo island, and Mnazi Bay). 
66. In January 2000, the Government decided to li beralize the import, storage, transport, and 
distribution of petroleum products, in an effort to  promote competition and increase the efficiency of 
Tanzania's economy. Following this decision, th e Tanzania Petroleum Development Corporation 
(TPDC), which was sole state-owned company dea ling with petroleum products, withdrew from the 
business and was left with the role of basic explor ation and promotion of petroleum areas, as well as 
providing advice to the Government on hydrocarbons i ssues. It also participates in production-sharing 
agreements (PSAs) with foreign companies: Canop Tanzania Corporation (Canada); Dublin 
Petroleum International (Ireland); Gulf Western Mining (Cyprus); Antrim Resources (Canada); and 
Ndovu Resources (Australia).174  In addition, Tanzania has one oil refinery, which is a joint venture 
(50-50) with AGIP (Italy).  
67. Distribution of petroleum and gas is in the hands of the private sector.  Although there are 
controls on the wholesale price for imported product s and those out of the refinery, retail prices for 
petroleum and gas were decontrolled in June 1999. 
68. Incentives available for investments in petrol eum and gas activities include:  tax exemption 
on equipment and material used for exploration; r ecovering costs for exploration, development, and 
production; and negotia ted levels of profit oil/gas split.  
69. In Zanzibar, the import and distribution of petroleum and gas have been handled by the 
Government of Zanzibar. On 1 March 2006, the Govern ment of Zanzibar closed the operations of the 
Petroleum Trade Corporation "after it failed to compete in a free market".  Seven fuelling stations are now under the management of private dealers, while two are still controlled by the Government.
175 
Petroleum and gas prices are set by the Government, taking into account world prices. 
(4) M ANUFACTURING  
70. Tanzania's manufacturing sector remains under-d eveloped.  Its contribution to GDP has 
averaged 8% over the last decade (compared with  13% of GDP in 1976), and it employs over 140,000 
people. Nevertheless, on the basis of the manufacturi ng production index, the sector grew at an annual 
average of over 10% during 1999-05 (Table IV.7), mainly as a result of the establishment of new 
industries, revitalization of production and capaci ty utilization, and increased demand for some 
products. In terms of gross production value, the food, beverages, and tobacco industries have 
accounted, on average, for about 62% of Tanzania's manufacturing sector during the past five years, followed by non-metallic minerals (9.4%), textiles and leather products (8 .4%), and chemicals, 
rubber, and plastic products (7.8%).  Tanzania's manu factured exports contribute about a fifth of its 
foreign exchange earnings. 
                                                     
 
174 According to the PSA, a share of  production is allocated for cost recovery by exploration companies 
and the balance, referred to as profit oil, is shared between TPDC, on behalf of the Government, and the 
exploration company (Ministry of Energy and Minerals, 2005). 
175 Business in Africa online , 7 July 2006. WT/TPR/S/171/TZA Trade Policy Review 
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 Table IV.7 
Manufacturing production index, 1999-05 
Subsector 1999 2000 2001 2002 2003 2004 2005 
Food, beverage and tobacco 146.2 181.1 200.0 211. 5 226.5 257.8 286.8 
Textile and leather 109.3 168.0 185.0 227.3 268.0 287.8 282.5 
Wood and products except furniture 76.0 51.5 32.0 61.3 127.0 75.5 71.8 
Paper and paper products 54. 7 60.3 59.0 64.0 52.8 78.3 80.0 
Chemicals, petroleum, rubber and plastic  products 103.0 96.1 58.0 94.8 124.5 131.3 142.8 
Pottery, china, glass and non-metallic products 200.7 205.6 220. 0 250. 282.5 288.5 315.8 
Basic metal industries 74.6 79.6 85.0 114.5 136.5 127.5 128.3 
Fabricated metal product, machinery, a nd equipment 78.9 52.9 72.0 63.8 74.0 74.5 87.3 
Other manufacturing industries 43.8 59.8 61.0 53.0 92.5 104.5 110.8 
Manufacturing  123.9 142.5 148.0 168.5 189.8 207.8 225.8 
Source:  Information provided by the Tanzanian authorities. 
71. MFN customs tariffs on manufactured goods (major division 3 of ISIC, Revision 2) average 
12.7%, with rates ranging up to 100% on food pr oducts, such as cane sugar and beat sugar 
(Common Report, Chart III.2). 
72. The Ministry of Industry, Trade and Marketing (MITM) is responsible for the overall running 
of the sector. Several other institutions participat e in the promotion of manufacturing in Tanzania, 
including:  the National Development Corporation (NDC) which, inter alia , coordinates and guides 
the implementation of various projects, such as the Mtwara Development Corridor; Small Industries 
Development Organization (SIDO), the leading provi der of business advisory services for small and 
micro-enterprises (SMEs) for 25 years; Tanzania Industrial Research and Development Organization 
(TIRDO), a parastatal established in 1977, which co nducts industrial research, and offers consultancy 
services to industries; and Business Registrations and Licensing Agency (BRELA), a semi-
autonomous agency in  MITM, responsible  for business facilitation and regulation. 
73. The Sustainable Industrial Development Policy (S IDP) 1996-2020, aims to turn Tanzania into 
a semi-industrialized country by 2025, when the sector would account for over 40% of GDP.  SIDP 
envisages promoting further private s ector participation. In this rega rd, manufacturing is considered a 
priority sector in Tanzania, and thus various i nvestment incentives are available (Chapter II(4)). 
Moreover, a number of manufacturing industries ha ve been selected to benefit from the export 
processing zones programme; these include as textil es and garments, leather goods, and electrical 
appliances and electronics (Chapter III(3)(v)). 
(5) SERVICES  
74. The services sector contributes over 40% to Tanzania's GDP;  tourism is overwhelmingly the 
largest component. Balance-of-payments data indi cate that traditionally Tanzania has registered 
services trade account deficits, which rose from US$52.9 million in 2002/03 to an estimated 
US$150 million in 2004/05 (Chapter I(3)(i)). 
75. Several state-owned enterprises (SOEs) in the sect or have been privatized (e.g. the National 
Bank of Commerce, National Microfinance, the port container terminal, and part of the 
telecommunications company), while others have been concessioned, such as the Tanzanian Railways 
Corporation (Chapter III(4)(iii)). However, steps n eed to be taken to upgrade Tanzania's overall 
infrastructure.  Further liberalization of services should improve the efficiency of the economy, especially by reducing costs related to fina ncial services, telecoms, and transport. EAC-Tanzania WT/TPR/S/171/TZA 
 Page A2-187 
 
 
 76. Under the General Agreement on Trade in Serv ices, Tanzania scheduled commitments only 
on four-star hotels and above (Table IV.8). It di d not participate in the GATS Fourth and Fifth 
Protocols, on basic telecommunications and financial services, respectively. Tanzania has yet to table 
its initial conditional offer in th e ongoing services negotiations.  
Table IV.8 
Tanzania's GATS specific commitments, 2006 
Sector or subsector Limitations on ma rket access Limitations on national 
treatment Additional 
commitments 
Tourism and travel-related services   
Hotels of four stars and 
above (1) None (1) None  
 (2) None (2) None  
 (3) Acquisitions of domestic firms and mergers by 
foreigners are subject to approval (3) Unbound  
  The acquisition of land by foreigners or 
domestic companies which are deemed foreign 
because of foreign equity ownership is subject 
to approval   
 (4) Unbound except for measures concerning senior 
managers that possess skills not available in 
Tanzania (4) Unbound  
Note: Mode of supply:  (1) Cross-border supply;  (2) Consumption abroad;  (3) Commercial presence;  and (4) Presence of natural  
persons.  
Source:  WTO document GATS/SC/84, 15 April 1994. 
(i) Financial services 
77. The financial services subsector comprises: 20 licensed commercial banks (17 operating), of 
which 9 are foreign-owned, 6 are joint-ventur es, and 5 are owned by Tanzanians; 6 non-banks176; 
11 insurance companies; 105 foreign exchange bureaux, and a number of other informal 
intermediaries, such as the Savings and Credit Cooperative Societies (SACCOs).  
(a) Banking 
78. The six largest banks (i.e. the National MicroFinance Bank (NMB)177, the National Bank of 
Commerce (NBC), the Cooperative and Rural Deve lopment Bank (CRDB), Citibank, Standard 
Chartered, and Stanbic) hold about 90% of all assets.178 Tanzania has already privatized various 
banks, notably NBC and NMB, and there are plans for the privatization of the People's Bank of 
Zanzibar. 
79. There have been no significant changes to the legal and institutional framework relating to 
financial services in Tanzania since its previous TPR. According to the 1991 Banking and Financial 
Institutions Act, and the 1995 Bank of Tanzania Act,  the Bank of Tanzania (BoT), the Central Bank is 
                                                      
176 Non-banks are not allowed to operate current accounts (e.g. ca nnot issue cheques). The six non-
banks are: Tanzania Postal Bank, plus all community banks, i.e. Mbinga, Mwanga, Kilimanjaro, Kagera, and 
Dar es Salaam. 
177 Among Tanzania's commercial banks, NMB has the largest number of branches, and is one of the 
largest in terms of assets. Its most actively growing loan product is loans to SMEs, though salary loans  
(consumer, school fees, other business)  remain its largest loan category.  
178 In 1967, Tanzania nationalized commercial banks;  until the early 1990s, virtually all financial 
institutions were wholly owned by the Government. Pr ivate-sector banking commenced in 1993 (see WTO, 
2000). WT/TPR/S/171/TZA Trade Policy Review 
Page A2-188 
 
 
 responsible for the supervision of  banks and other financial institu tions. In 2000, BoT replaced the 
People's Bank of Zanzibar as the bank of the Zanzib ar Government. In order to ensure the safety and 
soundness of financial services in Tanzania, the re gulatory and supervisory environment has been 
modernized in line with the Basle Committee's Core  Principles for effective banking supervision.  
80. Other key responsibilities of BoT include:  (i) implementing prudential controls for capital 
adequacy, liquidity, concentration of credit an d risk diversification, asset classification and 
provisioning, and prohibited activities;  (ii) licensing banks and financial institu tions;  (iii) facilitating 
and monitoring a Deposit Insurance Fund, for the prot ection of small depositors;  and (iv) modifying 
and monitoring the minimum reserve require ments and foreign exchange exposure. 
81. To establish a financial institution in Tanzania, authorization must be obtained from BoT; no 
distinction is made between local and foreign en tities.  The minimum core capital requirement for 
commencing operations is T Sh 5 billion for comme rcial banks. In addition, commercial banks must 
always maintain core capital of not less than 10% of their total risk-weighted assets, and total capital 
at not less than 12% of their total risk-weighted assets plus off-balance-sheet exposure.  To encourage 
the development of financial services outside Da r es Salaam, the statutory minimum core capital 
requirement is lower for regional financial institu tions.  The initial capital requirements for non-banks 
are: T Sh 200 million (if located in a municipality) , T Sh 100 million (inside any regional capital), and 
T Sh 50 million (any town outside a regional cap ital). Commercial banks ope rating in Tanzania are 
universal banks (i.e. carry out  all types of banking services). 
82. BoT is cooperating closely with the central ba nks of Kenya and Uganda, the other members 
of the Monetary Affairs Committee of the East Africa Commission, in harmonizing banking 
supervision practices across the region. 
(b) Insurance 
83. Insurance is a Union matter. Insurance services are provided by 14 registered companies in 
Tanzania179, of which 12 are privately owned and 2 are state-owned (National Insurance Company 
(NIC) and Zanzibar Insurance Company (ZIC)). NIC is a parastatal scheduled to be privatized by the 
end of 2006. 
84. Banks are not allowed to supply insurance servic es. Cross-border supply of insurance services 
by companies not registered in Tanzania is not permitted for risks located in Tanzania. Companies 
registered in Tanzania can transact life and/or no n-life insurance business; depending on the type of 
licence held, companies are free to offer different types of insurance policies. 
85. The insurance market in Tanzania is regulated  by the 1996 Insurance Act, which brought to 
an end the government monopoly in insurance services that had existed since 1967. It requires that at 
least one third of the controlling interest of any in surer be held by citizens of Tanzania.  No such 
restriction applies to brokers or agents, which can be non-Tanzanians. The Insurance Act requires 
insurers to maintain minimum paid -up capital levels (Table IV.9). 
                                                      
179 These are: National Insurance Company (NIC),  Jubilee Insurance Company, Royal Insurance 
Company, Alliance Insurance Corporatio n, Heritage AII Insurance Company, Niko Insurance Company, Lion of 
Tanzania Insurance Company, Reliance Insurance Company, Zanzibar Insurance Corporation (ZIC), Phoenix of 
Tanzania Assurance Company, Tanzindia Insurance Company, African Life Assurance Company, Strategies 
Insurance Company, and Prosperity Life Insurance Company. EAC-Tanzania WT/TPR/S/171/TZA 
 Page A2-189 
 
 
 Table IV.9 
Capital requirements for insurers and brokers, July 2006 
(T Sh million) 
Type of business Minimum level  
Long-term (life) insurance business 500 
General insurance (marine and non-marine) 500 
Composite insurance (combination of long-term and general) 1,000 
Non-marine insurance 250 
Marine insurance 250 
Insurance brokers 10 
Loss adjusters, insuran ce surveyors, motor assessors, risk managers 2 
Source: Information provided by the Tanzanian authorities. 
86. Responsibility for the insurance subsector rests with the Insurance Supervisory Department 
within the Ministry of Finance.  The Commission er for Insurance is responsible for the general 
administration of the Act;  a Deputy Commissioner is responsible for its administration in Zanzibar.  
A National Insurance Board, appointed by the Minist er of Finance, is responsible for advising and 
assisting the Insurance Commissioner.   Under the Act, the regulatory function will eventually be 
carried out by the Insurance Commissioner, indepe ndent of the policy-making role, which will be 
maintained by the Ministry of Finance. 
87. Reinsurance services are now available in Tan zania following the incorporation and licensing 
of the Tanzania National Reinsu rance Corporation (Tan Re) in 2004. Tan Re is a reinsurance 
company with shares held jointly by individual persons, Tanzanian corporate bodies, registered Tanzanian insurance companies, insurance brokers and loss assessors, government institutions, and 
foreign investors. The Establishment Order requir es Tanzanian insurance co mpanies to cede to Tan 
Re a portion of liabilities of every policy issued by them, plus a portion of their treaty reinsurance.  Mandatory cessions will apply until 2014 and cease thereafter. 
(ii) Telecommunications and postal services 
88. Since the last Review of Tanzania, its teleco mmunications network has continued to grow, 
with the exception of main telephone lines in service.  These declined from 173,600 in 2000 to 149,100 in 2004, i.e. a teledensity of 0.42 telepho nes per 100 inhabitants (down from 0.53 in 2000), 
compared with 0.92 for Kenya, and 0.27 for Uganda.
180 The expansion of Tanzania's 
telecommunications is more significant in the mobile market, where the number of subscribers 
jumped from 180,200 in 2000 to 1,1640,000  in 2004 (Table IV.10). Similarly, the number of internet 
users increased from 60,000 in 2001 to 333,000 in 2004,  while the number of personal computers rose 
from 120,000 to around 278,000.  
89. The Tanzania Communications Regulatory Authority (TCRA), the communications and 
broadcasting regulator, was established under the Tanzania Communications Regulatory Authority 
Act (No. 12/2003), which merged the Tanzania  Communications Commission and the Tanzania 
Broadcasting Commission.  The TCRA became ope rational on 1 November 2003,  and is responsible 
for, inter alia , establishing standards for regulated equipment  and services181; licensing and enforcing 
licence conditions of broadcasting, postal, and te lecoms operators; regulating rates and tariffs; 
managing the radio frequency spectrum; and monitori ng the performance of the regulated activities.  
                                                      
180 ITU online information.  Available a t: http://www.itu.int/I TU-D/ict/statistics/. 
181 In practice, International Telecommunications Union (ITU) standards ar e applied in Tanzania. WT/TPR/S/171/TZA Trade Policy Review 
Page A2-190 
 
 
 Table IV.10 
Selected telecommunica tion indicators, 2000-04 
 2000 2001 2002 2003 2004 
Telephone subscribers ('000) .. 575.4 921.6 1,040.3 1,189.8 
Telephone subscribers per 100 inhabitants .. 1.71 2.68 2.95 3.37 
Main telephone lines ('000) 173.6 148.5 161.6 149.1 149.1 
Main lines per 100 inhabitants 0.53 0.44 0.47 0.42 0.42 
Cellular mobile subscribers ('000) 180.2 427.0 760.0 891.2 1,640.0 
Cellular subscribers per 100 inhabitants .. 1.27 2.21 2.52 4.35 
Internet users ('000) .. 60.0 80.0 250.0 333.0 
Internet hosts .. 1,478 1,731 5,534 5,908 
Personal computers ('000) .. 120 144 200 278 
Personal computers per 100 inhabitants .. 0.36 0.42 0.57 0.74 
.. Not available. 
Source:  ITU (2005), Telecommunication Indicators , Geneva;  and information provided by the Tanzanian authorities.  
90. The Ministry of Infrastructure Development (MID), formerly the Ministry of 
Communications and Transport, is responsible  for policy related to the development of 
telecommunications and postal services. In 1996, the Ministry issued the National 
Telecommunications Policy (NTP), which outlines th e objectives and strategies for the period 1997-
20.  The NTP is aimed at ensuring the accelerated development of an efficient telecommunications 
network that can provide an info-communicat ions infrastructure and universal access to 
telecommunications services by all sectors of the national economy and segment s of the population. 
91. The 1993 Tanzania Telecommunications Inco rporation Act established the Tanzania 
Telecommunications Company, Ltd. (TTCL).  On 28 February 2001, the Government sold 35% of its 
TTCL shares to a consortium of Detecon (Germany), and MSI (the Netherlands).182 According to the 
authorities, because of the need fo r significant capital investment in TTCL to carry out modernization, 
the consortium was granted a period of exclusivity , and maintained a monopoly in basic telecom 
services until 23 March 2003.183  
92. TTCL and the Zanzibar Telecommunications  Corporation (ZANTEL) operate as a de facto  
duopoly in international and domestic basic voice services both in mainland Tanzania and Zanzibar. 
Although TTCL initially was also granted monopoly rights for basic services in Zanzibar, the Government of Zanzibar created the Zanzibar Telecommunications Corporation (ZANTEL) in 1996, 
which has an operating licence for local and internati onal voice and data services  both in Zanzibar and 
on the mainland.
184  
93. TTCL faces competition from value-added service providers that have been granted licences 
to operate in Tanzania.  On the mainland, some  companies are offering value-added services. Five 
cellular mobile network opera tors have been granted licences (up from three in 2000): 
                                                      
182 Tanzanian Investment Centre online information.  Available at: www.tic.co.tz/Ipa. 
183 Previously, telecommunications services had been provided by the Department of Posts and 
Telecommunications. The commercialization of TTCL, and the separation of postal and telecommunications 
operators were initial steps in preparing the company for privatization:  5% of TTCL was reserved for workers 
and another 10% was reserved for institutional inve stors, primarily the parastatal pension fund. 
184 Emirates Telecommunications Corporation (Etis alat) currently manages ZANTEL, and has a 34% 
stake in the company. The Government  of Zanzibar owns 24% of ZANTEL, while other local and Middle East 
investors hold the remaining shares. EAC-Tanzania WT/TPR/S/171/TZA 
 Page A2-191 
 
 
 TIGO (formerly Mobitel)185, Celtel, ZANTEL, Vodafone, and TTC L. Despite competition in value-
added services, providers are still required to use TTCL's international gateway.  
94. In an effort to boost competition and driv e down prices in the long-term, the TCRA has 
announced that it will introduce a new telecommunica tions licensing framework;  a key element will 
be to allow telecoms companies to lease excess telecoms capacity from other companies that have 
their own internal networks (e.g. TANESCO and Tan zania Railways Corporation).  This should allow 
a fixed-line telephone provider to roll out a networ k in competition with TTCL.  TCRA has also 
indicated that it has received several applications from private organizations to set up radio and TV 
broadcasting services.186 
95. There are four public data communications operato rs: Simbanel, a subsidiary of International 
Communication Systems (ICS); DATEL, a joint vent ure between TTCL and Nexus International;  
Wilken Afsat Tanzania Ltd;  and Equant Tanzania Ltd.  Data serv ice providers have been granted 
permission to bypass TTCL for their international se rvices. Companies have also been licensed to 
provide national radio paging services. 
96. Foreign ownership up to 51% is  permitted in any of the above non-basic telecom service 
categories.  There are local-participation requireme nts for the telecoms subsector, although Ministry 
officials indicate that they have been waived  in the past, permitting 100% foreign ownership, 
particularly with respect to the start up of value-added service providers. 
(iii) Transport 
97. Transport contributes about 7% to Tanzania's  GDP. The subsector faces many problems, 
notably high transport costs187; inadequate rehabilitation and ma intenance of road and railway 
networks; outdated legisla tion and regulations; lack of effici ently operating intermodal connections; 
and fragmented responsibilities involving the Ministry of Infrastructure and Development, the main 
body in charge of transport, but also other depart ments under different ministries; this constrains the 
smooth development of the subsector. Moreover, trans port is insufficient to meet current and future 
needs of a growing economy. 
98. The Government is addressing some of these problems by, inter alia , promoting private sector 
participation.  Some of transpor t-related SOEs that have already been privatized include Regional 
Transport Companies (RETCOS), Dar es Salaam Container Terminal, Air Tanzania Corporation (ATC) (Chapter III(4)(iii)).  SOEs that are earmarked  for privatization include commercial centres of 
the Tanzania Ports Authority (TPA), Tanzania  Railways Corporation (TRC), Tanzania-Zambia 
Railway Authority (TAZARA), and the public tran sport company Usafiri Dar es Salaam (UDA).  
99. Almost all international transpor t (i.e. of exports, imports, and transit goods) in Tanzania is by 
ocean freight; air freight transport made up 0.4%  in 2003. About three quarters of international 
transport via ocean freight is taken by road, 17% by  rail, and 7% by pipeline. The dominance of road 
transport is largely due to the fact that a la rge share of imports coming through the port of 
                                                     
 
185 TIGO, which first commenced operations in 1994 as Mobitel, is 25% owned by TTCL. 
186 The proposed stations would be based in Dar es Salaam, Mtwara, Mbeya, and Tanga (Economist 
Intelligence Unit, 2005a). 
187 The main reasons for high transport costs in Tanzania are: long distances between major regions; 
long trip times due to deficient rolling stock in the case of railways; low capacity transport infrastructure 
(inadequate roads and low speed of trains); inefficient operation of service providers; and red tape and 
bureaucracy.  WT/TPR/S/171/TZA Trade Policy Review 
Page A2-192 
 
 
 Dar es Salaam that is destined for areas around the ca pital, which require only short haulage. Tanzania 
is an important provider of transit traffic for its neighbours, including Burundi, the Democratic 
Republic of Congo, Malawi, Rwanda , Uganda, and Zambia. Transit traffic made up around 21% of 
Tanzania's total international trans port in 2003 (46% of transit traffic was by road transport, 33% by 
pipeline, and 20% by rail).188 
(a) Road transport 100. Tanzania's road network consists of approxima tely 85,000 km, of which only 5% is paved.  
Rural roads, in particular, suffer from inadequate rehabilitation and maintenance. Tanzania is in the 
middle of a ten-year Integrated Roads Programme  to upgrade its main roads, and build some 
3,000 km of new roads. An estimated US$3 billion is needed over the next ten years to improve the 
road network.
189 
101. Road transport is regulated by the 1973 Tran sport Licence Act. Local and foreign operators 
are subject to different fees.  Fees for a passenger vehicle licence for a Tanzanian operator range from 
T Sh 20,000 for a one-year licence for a bus with  a passenger capacity of 15 to 65 passengers, to 
T Sh 125,000 for a bus with a capacity of more  than 65 passengers; the corresponding fees for a 
foreign operator are US$52 and US$160, respectively. 
102. Several institutions have overlapping responsib ilities on road-related issues:  Tanzania 
National Road Agency (TANROADS) is in charge of regional and trunk roads; the pan-territorial 
road infrastructural management is now vested in MI D; the Ministry of Public Safety and Security is 
in charge of enforcement regulations; the Ministry of Finance is responsible for licensing; and local 
governments control an important segment of the ro ad infrastructure network. In addition, the 2001 
Surface and Marine Transport Regulatory Act No. 9 assigns all land and water regulatory powers to 
the Surface and Marine Transport Regulatory Aut hority (SUMATRA). Passenger road transport 
services for inter-city, urban, and rural routes are presently dominated by local providers. 
103. Road transport is dominated by private opera tors. Prices are subject to approval by the 
Government, after being set by the operators so as  to cover their expected operational costs plus a 
percentage for profit. Cabotage is  not allowed in road transport. 
(b) Railway transport 
104. Tanzania's railway system has a total of 3, 676 km, of which 2,706 km are operated by TRC, 
and 970 km by TAZARA, jointly owned by Tanzania and Zambia.190  Together, the railways link 
14 of the 21 regions on the mainland, and neigh bouring countries. TRC and TAZARA do not operate 
on identical gauge, making the provision of integrated services difficult.191  The lack of a standard 
gauge also exacerbates transportation to neighbourin g countries.  Other key problems facing railways 
in Tanzania include:  a large accu mulated backlog of rehabilitation and maintenance work that has 
resulted in poor rail infrastructure, old rolling stock, and lack of spare parts. 
                                                      
188 Integrated Framework (2005). 
189 Tanzanian Investment Centre online information.  Available at: www.tic.co.tz/Ipa. 
190 Tanzania and Zambia have agreed to privatize TAZARA jointly through concession (UNCTAD and 
ICC, 2005). 
191 TRC's gauge is 1,000 mm, while TAZARA's is 1,097 mm. EAC-Tanzania WT/TPR/S/171/TZA 
 Page A2-193 
 
 
 105. The 2002 Railways Act provides the legal frame work to offer the TRC in a 25-year 
concession, with an investment re quirement of around US$180-200 million.192  TRC is currently fully 
owned by the Tanzania Government, but it is  at the final stage of being concessioned.193  Railway 
transport prices are subject to approval by the Govern ment, after they are set by the operators so as to 
cover expected operational costs plus a percentage for profit. 
106. In the context of the EAC, member states have recognized that privatizing railways should 
improve their performance, and the entire regional netw ork is therefore in the process of privatization 
through concession. Moreover, the idea of creating a unified East African railways network is being 
explored.194 
(c) Air transport 
107. Tanzania has three major international airports  (Dar es Salaam, Kilimanjaro, and Zanzibar), 
and more than 50 additional airports, including airstr ips servicing domestic and in ternational traffic.  
Most of Tanzania's airports are still owne d and operated by the Gove rnment. However, the 
Kilimanjaro International Airport is being opera ted under concession, while Dar es Salaam Airport 
Handling Company (DAHACO) was sold to Swissport.  Air freight in Tanzania (2 million tonnes in 
2002) is by far the lowest in the region.195 
108. Some major foreign airlines operate in Tanzania.196 Tanzania does not impose any restrictions 
on foreign entities establishing and providing aviation services.  However, cabotage is not permitted. 
There are several international freight service provi ders operating in Tanzania;  Tanzania does not 
place any restrictions on the transport of freight from the country. 
109. The Tanzania Civil Aviation Authority (TCAA) is responsible for the air traffic control 
systems, and has regulatory responsibilities with re spect to the aviation subsector. Tanzania is a 
signatory to the Chicago Convention, and abides by  the standards and practices of the International 
Civil Aviation Organization. 
110. On 3 November 1999, the United States and Tanzania signed the first ever open skies 
agreement involving an African country.197 The agreement took effect immediately, with the 
exception of unrestricted rights for passenger ch arters, which was phased-in over two years. 
(d) Maritime transport 
111. Tanzania has four major ports that can accommodate deep-sea and coastal transport: 
Dar es Salaam198, Mtwara, Tanga, and Zanzibar.  The Tan zania Ports Authority (TPA) operates the 
                                                      
192 The Government will retain ownership of infrastruc ture held by TRC. Non-core activities and assets 
will be privatized or sold separately (Tanzanian Investment Centre online information. Available at: 
www.tic.co.tz/Ipa). 
193 TRC is expected to be concessioned to RITES Ltd. of India by August 2006. 
194 UNCTAD and ICC (2005). 
195 In 2002, air freight amounted to 188 million tonnes in Kenya and 21 million tonnes in Uganda 
(UNCTAD and ICC, 2005). 
196 These include: Air India, British Airways, Egypt Ai r, Emirates Airlines, Gu lf Air, Kenya Airways, 
KLM, South African Airways (which bought 49% of Air Tanzania Corporation), and Swiss (UNCTAD and 
ICC, 2005). 
197 Open skies agreements permit unrestricted air servi ce by the airlines of e ach country to, from, and 
beyond the other's territory, eliminating restrictions on how  often carriers can fly, the kind of aircraft they can 
use, and the prices they can charge. WT/TPR/S/171/TZA Trade Policy Review 
Page A2-194 
 
 
 first three, while ports in Zanzibar are under th e Zanzibar Ports Corporation (100% state-owned). 
Inland water transport is undertaken on Lake Vict oria, Lake Tanganyika, and Lake Nyasa.  Lake 
transport services are provided by the Marine Servic es Company (MSC) and private operators.  Inland 
water transport is under-developed, and this constr ains the smooth flow of traffic from landlocked 
countries. Mainland  Tanzania has a joint deep-sea shipping line with SINOTASHIP (China, P.R.).  
The Zanzibar Shipping Corpor ation owns three vessels. 
112. Maritime transport in Tanzania is controlled la rgely by the private sector, with the significant 
exceptions of the TPA (a parastatal)199, and maritime services provided on inland waterways by the 
TRC.  In order to improve port services, the TPA has been split into 14 business units to be privatized 
as separate entities.  The Presidential Parastatal Sector Reform Commission has decided that the TPA 
will continue to exist as the landlord for port-relate d services, but that all commercial activities will be 
privatized.  The MSC has been earmarked for priv atization, and similar privatization efforts are 
currently under way with respect to the TRC's maritime services. 
113. All shipping activities in Tanzania are coordinated by SUMATRA, which operates as a quasi-
business regulator overseeing ocean freight rates. In Zanzibar, maritime transport services are 
regulated by the Zanzibar Government. Certain maritime transport servi ces are provided by the 
private sector. 
114. Cabotage is not allowed in maritime transpor t. Prices are subject to approval by the 
government, after being set by the operators to cove r their expected operational costs plus a profit 
margin. 
(iv) Tourism 
115. Tourism contributes around 16% to Tanzania's GDP, employs over 160,000 Tanzanians, and 
generates about 25% of the country's foreign exch ange earnings. In 2004, 582,807 tourists visited 
Tanzania (up from 295,312 in 1995), spending an av erage of US$1,282 per tourist (against US$878.5 
in 1995). The number of hotels more than doubled, from 210 in 1995 to 474 in 2004, while the number of bed nights jumped from 1.7 million to 9.6 million.  Nevertheless, tourism earnings have 
remained relatively stable over the last few years (Table IV.11).  
116. Tanzania is endowed with a variety of worl d-class tourism assets, including seven World 
Heritage Sites (Ngorongoro Conservation Area, Serengeti National Park, Selous Game Reserve, 
Kilimanjaro National Park, Stone Town of Zanzibar, the ruins of Kilwa Kisiwani, and ruins of Songo 
Mnara), as well as other marine, archaeological, and cultural assets. About 25% of Tanzania's total 
area is set aside as national parks and game reserves.  
117. Some of the main problems facing tourism in Tanz ania are: poor roads to and in tourist sites, 
which raises tour operators' costs;  insufficien t high-quality hotels; relatively costly domestic 
                                                                                                                                                                    
 
198 The port of Dar es Salaam, one of the EAC's two main ports (the other being Mombasa in Kenya), is 
by far Tanzania's largest, with about 25 internationa l shipping lines operating. In 2003, it handled almost 
5 million tonnes of cargo traffic, around 21.5% of which was transit cargo. The port of Dar es Salaam handles cargo for the landlocked countries of Burundi, the Democratic Republic of Congo, Rwanda, Uganda, and 
Zambia (Tanzanian Investment Centre online information.  Available at: www.tic.co.tz/Ipa). 
199 In May 2000, the container terminal of TPA (formerly Tanzania Harbour Authority) was divested to 
an international consortium of the Philippines. The divestiture  transaction was historic in that it made the port of 
Dar es Salaam the fastest container terminal in sub- Saharan Africa, ahead of Durban, Mombasa, and Mauritius 
(UNCTAD and ICC, 2005). EAC-Tanzania WT/TPR/S/171/TZA 
 Page A2-195 
 
 
 transport, visa fees, park entrance fees, and limited air accessibility co mpared with competing 
destinations; and in general, the subsector is unde r-developed.  However, efforts are being focused on 
both the supply and demand side. The Ministry of  Natural Resources and Tourism is working to 
further develop tourism infrastructure, and undert aking efforts in Europe and Asia to promote 
Tanzania as a tourist destination. Tanzania inte nds to double its tourism intake to over one million 
visitors in 2015.  Development of  accommodation and catering services is crucial in order to attain the 
intended increase of tourists.  Recent investment s in accommodation include the construction of 
several international tourist-class hotels. However, foreigners are only allowed to invest in four-star 
hotels and above (Table IV.8).  In the absence of a national classification standard, this has led to 
misclassification and high hotel tariffs. 
Table IV.11 
Tourism in Tanzania, 1995 and 1999-04 
 1995 1999 2000 2001 2002 2003 2004 
Number of tourists 295,312 627,325 501,669 525,122 575,000 576,000 582,807 
Tourists in hotels 268,152 564,593 479,652 501,081 550,000 522,000 553,000 
Earnings (US$ million) 259.4 733.3 739.1 725.0 730.0 731.0 746.0 
Average earnings per tourist (US$) 878.5 1,169.0 1,473.2 1,168.9 1,270.0 1,269.0 1,282.0 
Average number of days per tourist 7.2 7.7 8.0 8.0 10.0 10.0 11.0 
Average expenditure per tourist per day (US$) 122 152 184 173 127 127 128 
Number of hotels 210 321 326 329 465 469 474 
Number of rooms 6,935 9,575 10,025 10,325 25,300 30,600 30,840 
Number of beds 12,145 15,325 17,303 18,284 45,500 55,500 55,932 
Number of tourist nights (million) 1.7 1.7 1.9 2.0 8.4 9.6 9.6 
Average room occupancy per year (%) 57 64 54 59 51 47 47 
Total number of employees in tourism  96,000 148,000 156,050 156,500 160,200 160,500 160,750 
Source:  Information provided by the Tanzanian authorities. 
118. Tanzania's first National Tourism Policy (N TP) was promulgated in 1991 with the main 
objective of promoting the development of qualit y tourism (i.e. low-volume high-value tourism) . The 
NTP was reviewed in 1999 in order to address concer ns regarding the participation of the private 
sector, environment protection, local community  involvement, and poverty alleviation. The 
NTP (1999), inter alia , calls for  a repeal of the existing tourism legislation and regulations, and for 
the adoption of a Tourism Act that is transparent, enforceable, and fair.200  
119. The Tourism Master Plan 1996-2005 focused, inter alia , on product development, tourism 
zones/circuit development, institutional capacity bui lding, and destination marketing. The National 
Tourism Development Programme 2006-15, a ne w draft initiative, aims to promote the 
competitiveness and sustainability of the tourism i ndustry, while intensifying its contribution to 
economic growth and povert y reduction in Tanzania.  
120. Tourism is considered a lead activity in Tan zania, and thus various investment incentives are 
available (Chapter II(4)). An investor (local or fore ign) who wishes to invest in any wildlife protected 
area must obtain an approval from MNRT. Travel ag ent services are restricted to Tanzanian nationals. 
                                                      
200 Under the Law Reform Commission, a draft bill for the consolidation and amendment of tourism 
laws was prepared in 2001, and the following legisla tion was reviewed: the Tanganyika National Tourist Board 
Act 1962, the Tanzania National Tourist Board (Amendmen t) Act 1992, the Hotels Act 1963, the Tourist Agent 
(Licensing) Act 1969 (including regulations made under that Act), and the Hotel Levy Act 1972. The general 
objective of the draft Tourism Act is to provid e a legal basis for implementing the NTP (1999). WT/TPR/S/171/TZA Trade Policy Review 
Page A2-196 
 
 
 121. Zanzibar has its own tourism policy;  its ta xes and incentives are different from those in 
mainland Tanzania.  The Zanzibar Tourism Devel opment Policy and the Zanzibar Tourism Master 
Plan were formulated in 2004, aimed at the sustainable development of the subsector by, inter alia , 
providing quality and diversified t ourism services. In general, tourism tariffs are set freely by the 
owner. Classification in the subsector is carri ed out by the Zanzibar Commission for Tourism. 
Foreigners cannot own land for ho tel construction in Zanzibar.  
122. Tanzania is a member of the World Tourism Organization. EAC-Tanzania WT/TPR/S/171/TZA 
 Page A2-197 
 
 
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African Development Bank (2003), United Republic of Tanzania, Country Strategy Paper 2002-2004 , 
Tunis.  Available at:  http://www.afdb.org/pls/portal/docs/PAGE/ADB_ADMIN_PG/DOCUMENTS/ OPERATIONSINFORMATION/CSP_TANZANIA2002-2004.PDF. 
Bank of Tanzania (2004), Tanzania Investment Report , Dar es Salaam.  Available at:  http://www.bot-
tz.org/Publications/publications_and_statistics.asp.   
Bank of Tanzania (2005a), Economic Bulletin for the Quarter ending in June 2005 , Vol. XXXVI, 
No. 2, Dar es Salaam. Available at: http://www.bot-tz.org/Publications/ publications_and_statistics.asp.   
Bank of Tanzania (2005b), EPZ: Progress Report as at April 2005 , Dar es Salaam.   
Economist Intelligence Unit (2005a), Country report: Tanzania , London. 
Economist Intelligence Unit (2005b), Outlook for 2005-06 , London. 
Government of Tanzania (2001), Agricultural Sector Development Strategy , October, Dar es Saalam.  
Available at:  http://www.tzonline.org/pdf/ agriculturalsectordevelopmentstrategy.pdf. 
IMF (2004), Tanzania: 2004 Article IV Consultation and Second Review Under the Three-Year 
Arrangement Under the Poverty Reduction and Growth Fa cility – Staff Report;  Staff Statement;  and 
Public Information Notice and Press Release on the Executive Board Discussion , Washington D.C.  
Available at:  http://www.imf.org/external/pubs/ft/scr/2004/cr04285.pdf. 
IMF (2005a), Tanzania: Bright outlook for further growth, poverty reduction , Washington D.C. 
IMF (2005b), United Republic of Tanzania:  Fourth Review Under the Three-year Arrangement 
Under the Poverty Reduction and Grow th Facility and Request for Waiver of Performance Criteria –
Staff Report;  Staff Statement;  Press Release on the Executive Board Discussion;  and Statement by 
the Executive Director for the United Republic of Tanzania , Country Report No. 05/291, August, 
Washington D.C.  Available at:  http://www. imf.org/external/pubs/f t/scr/2005/cr05291.pdf. 
IMF (2005c), World Economic Outlook , April, Washington D.C. Available at:  
http://www.imf.org/external/pubs /ft/weo/2005/01/index.htm.  
Integrated Framework (2005), Tanzania: Diagnostic Trade Integration Study , Volume 1.  Available 
at:  http://www.integratedframework.org /files/Tanzania_DTIS_Vol1_Nov05.pdf. 
Ministry of Agriculture and Food Security (2005), Agricultural Sector Achievements of the Third 
Phase Government 1995-2005 , Dar es Salaam.  Available at:  http://www.agriculture.go.tz/News/ 
AGRICULTURAL%20SECTOR%20ACHIEVEME NTS%20OF%20THE%20THIRD%20PHASE%
20GOVERNMENT%201995.pdf. 
Ministry of Agriculture, Livestock, and Environment (2004), Feasibility Study for the Development of 
Agriculture in Zanzibar Phase II: The Strategic Plan , Zanzibar.   
Ministry of Energy and Minerals (2003), The National Energy Policy , Dar es Salaam. WT/TPR/S/171/TZA Trade Policy Review 
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 Ministry of Energy and Minerals (2005), Energy and Mineral Sector P ublic Expenditure Review for 
Fiscal Year 2004/05: Final Report , Dar es Salaam. 
Ministry of Finance (2005), Export Credit Guarantee Scheme: Operational Guidelines , 
Dar es Salaam.   
Ministry of Industry and Trade (1996), Sustainable Industrial Development Policy-SIDP (1996-2020) , 
October.  Available at:  http://www.tzonline.org/pdf/sustainableindustrial.pdf. 
Ministry of Industry and Trade (2003), National Trade Policy , Dar es Saalam. 
Ministry of Water and Livestock Development (2005), The Livestock Policy of Tanzania  (Third 
Draft), March, Dar es Salaam. 
Missions économiques (2005), Les privatisations en Tanzanie , August. Available at:  
http://www.missioneco.org/kenya/ documents_new.as p?V=1_PDF_108781. 
National Bureau of Statistics (2002), 2002 Population and Housing Census: National Profile 
Statistical Tables . Available at:  http://www.nbs.go.tz/Nati onalProfile/NationalProfileTables.htm.  
Nkinga (2003), Public Procurement Reform: The Tanzanian Experience , Paper presented at the Joint 
WTO-World Bank Regional Workshop on Procuremen t Reforms and Public Procurement for English 
Speaking Countries, Dar es Salaam.  Available at :  http://www.wto.org/english/tratop_e/gproc_e/ 
wkshop_tanz_jan03/tanzaniacase3_e.doc. 
Tanzania Investments Centre (2002), Business Guide , Dar es Salaam. 
TRA (2005a), Customs Fact Sheet: Changes to Destination Inspection Scheme Arrangements .  
Available at:  http://www.tiscan.co.tz/TanzaniaLink/Procedures.aspx. 
TRA (2005b), Customs Modernisation Newsletter , Issue No. 2, September.  Available at: 
http://www.tiscan.co.tz/TanzaniaLink/Procedures.aspx. 
TRA (2005c), Introduction of ASYCUDA++ at DIA , Dar es Salaam. 
Treichel, Volker (2005), Tanzania's Growth Process and Success in Reducing Poverty , IMF Working 
Paper 05/35.  Available at:  http://www. imf.org/external/pubs/ft/wp/2005/wp0535.pdf. 
UNCTAD (2002), Investment Policy Review – United Republic of Tanzania .  Available at:  
http://www.unctad.org/en/ docs/iteipcmisc9_en.pdf. 
UNCTAD (2005), "Country fact sheet:  United Republic of Tanzania", World Investment Report .  
Available at:  http://www.unctad.org/sec tions/dite_dir/docs/wir05_fs_tz_en.pdf.   
UNCTAD and ICC (2005), An Investment Guide to Tanzania:  Opportunities and Conditions , June. 
Available at:  http://www.unctad .org/en/docs/iteiia20053_light_en.pdf. 
UNDP (2005), Human Development Reports , "Indicators".   Available at:  http://hdr.undp.org/ 
statistics/data/indicators.cfm?alpha=yes#H. EAC-Tanzania WT/TPR/S/171/TZA 
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 World Bank (2005a), Tanzania Data Profile , Washington D.C.  Available at:  
http://devdata.worldbank.or g/external/CPProfile.asp?CCODE=TZA&PTYPE=CP.  
World Bank (2005b), World Development Report .  Available at:  http://siteresources.worldbank.org/ 
INTWDR2005/Resources/complete_report.pdf. 
WTO (2000), Trade Policy Review – Tanzania , Geneva. 
WTO (2005), Statistics Database, Trade Profiles: Country profile – Tanzania , Geneva.  Available at:  
http://stat.wto.org/CountryProfile/WSDBC ountryPFView.aspx?Language=E&Country=TZ. 
   
 
APPENDIX TABLES  EAC-Tanzania WT/TPR/S/171/TZA 
 Page A2-203 
 
 
 Table AI.1 
Structure of exports, 1999-04 
(US$ million and per cent) 
  1999 2000 2001 2002 2003 2004 2004 incl. 
re-exports 
                
Total (US$ million) 642.1 655.8 762.9 901.4 1,218.4 1,329.8 1,465.8 
                
  (per cent) 
                
Total primary products 84.1 66.4 60.9 59.7 52.5 50.5 51.3 
   Agriculture 83.0 65.9 54.4 50.9 45.3 41.9 42.2 
      Food 69.9 54.8 44.7 43.1 37.8 33.0 33.9 
         0345 Fish fillets and other fish meat fresh, 
 chilled/frozen 1.2 6.3 5.1 4.8 5.7 5.7 5.2 
         0577 Edible nuts fresh, dried 16.8 12.8 7.3 5.3 3.6 5.2 4.7 
         1212 Tobacco, wholly or partly  stemmed/stripped 0.8 1. 7 3.4 2.9 2. 7 4.2 3.8 
         0711 Coffee, not roasted 16.9 12.7 7.2 3.9 4.0 3.7 3.4 
         0344 Fish fillets, fr ozen 8.8 3.7 5.8 6.6 3.6 2.3 2.1 
         0741 Tea 4.7 4.9 3.7 3.3 2.0 2.3 2.1 
         2225 Sesame (Sesamum) seeds 0.8 1.2 0.9 0.8 0.8 1.4 1.2 
         0542 Leguminous vegetables, dr ied, shelled 2.7 0.6 1.9 1.7 1.9 1.3 1.2 
         0361 Crustaceans, fr ozen 0.8 1.0 1.1 1.2 1.0 0.8 0.7 
         0752 Spices (except pepper and pimento) 0.1 1.1 1.6 0.6 0.8 0.8 0.7 
         0612 Other beet, cane and chemically pure 
 sucrose, solid form 1.3 0.8 1.1 1.0 0.7 0.6 .. 
         0449 Other maize, unmilled 0.2 0.2 0.3 2.2 1.3 0.6 .. 
         0412 Other wheat (including spelt) and meslin,  
 unmilled .. .. .. .. .. .. 2.3 
         0461 Flour of wheat or of meslin .. .. .. .. .. .. 1.0 
      Agricultural raw material 13.1 11.1 9.6 7.8 7.5 9.0 8.3 
         2631 Cotton (other than linters), not carded or 
 combed 6.0 4.3 3.2 2.9 3.3 3.8 3.4 
         2634 Cotton, carded or combed 1.4 1.1 1.2 0.3 0.4 1.7 1.6 
         2927 Cut flowers and foliage 1.4 1.2 0.9 0.6 0.6 0.6 .. 
   Mining 1.1 0.5 6.6 8.8 7.2 8.5 9.1 
      Ores and other minerals 0.7 0.4 6.4 8.7 5.9 8.4 7.7 
         2891 Ores and concentrates of precious 
 metals 0.0 0.0 5.9 8.3 5.0 7.9 7.2 
      Non-ferrous metals 0.0 0.0 0.0 0.0 0.1 0.0 0.0 
      Fuels 0.3 0.1 0.1 0.1 1.3 0.1 1.4 
         3341 Motor gasoline, light oil .. .. .. .. .. .. 1.3 
               
Manufactures 15.4 16.2 12.1 10.5 11.6 10.1 12.9 
   Iron and steel 0.1 0.2 0.1 0.2 0.6 0.9 0.9 
         6734 Flat, cold-rolled, iron/steel products, not 
 clad/plated/coated 0.0 0.0 0.0 0.0 0.2 0.5 .. 
   Chemicals 0.8 0.8 0.8 0.9 1.2 1.0 1.6 
   Other semi-manufactures 4.5 11.1 7.9 6.2 5.0 4.8 4.8 
         6673 Precious and semi-precious stones (excl. 
 diamonds) 1.1 2.8 2.6 2.3 1.5 1.9 1.7 
         6672 Diamonds (excl. industrial, sorted) not 
 mounted/set 1.2 6.2 3.4 2.4 2.0 1.8 1.7 
   Machinery and transport equipment 5.9 1.0 0.7 0.4 1.6 0.2 1.8 
      Power generating machines 0.5 0.0 0.0 0.0 0.0 0.0 0.1 
      Other non-electrical machinery 1.5 0.2 0.1 0.1 0.4 0.0 0.7 
         Agricultural machinery and tractors 0.1 0.0 0.0 0.0 0.0 0.0 0.0 
      Office machines and telecommuni cation equipment 0.5 0.1 0.0 0.0 0.1 0.0 0.1 
      Other electrical machines 0.6 0.7 0.5 0.2 0.2 0.1 0.2 
      Automotive products 2.2 0.0 0.0 0.0 0.4 0.0 0.3 
      Other transport equipment 0.7 0.0 0.0 0.0 0.4 0.0 0.4 
Table AI.1 (cont'd) WT/TPR/S/171/TZA Trade Policy Review 
Page A2-204 
 
 
   1999 2000 2001 2002 2003 2004 2004 incl. 
re-exports 
   Textiles 0.8 1.7 1.8 1.5 1. 7 2.1 2.6 
        6585 Curtains and other textile furnishing, n.e.s. .. .. .. .. .. .. 0.8 
   Clothing 1.3 0.5 0.3 0.4 0.4 0.5 0.6 
   Other consumer goods 2.0 0.9 0.5 0.9 1.1 0.5 0.7 
               
Other 0.5 17.3 27.0 29.8 36.0 39.5 35.8 
   Gold 0.5 17.3 27.0 29.8 36.0 39.4 35.8 
         9710 Gold, non-monetary (excl. gold ores and 
 concentrates) 0.5 17.3 27.0 29.8 36.0 39.4 35.8 
.. Not available. 
Source:  WTO Secretariat estimates, based on UNSD, Comtrade database SITC Rev.3 data. EAC-Tanzania WT/TPR/S/171/TZA 
 Page A2-205 
 
 
 Table AI.2 
Structure of imports, 1998-04 
(US$ million and per cent) 
  1998 1999 2000 2001 2002 2003 2004 
                
Total (US$ million) 1,670.8 1,588.0 1,586.5 1, 728.5 1,691.2  2, 189.5  2,531.2 
                
  (per cent) 
                
Total primary products 32.1 27.5 36.9 31.4 29.2 34.5 34.2 
   Agriculture 22.2 18.4 17.1 17.4 16.3 15.0 16.6 
      Food 19.9 16.2 14.6 15.2 13.8 13.2 15.0 
         0412 Other wheat (including spelt) and meslin, 
 unmilled 2.0 1.3 1.8 3.4 3.4 3.5 4.6 
         4222 Palm oil, fractions 1.5 2.2 2.6 3.2 3.4 3.4 2.9 
         0423 Rice, milled, semi-milled 2.5 1.6 2.7 1.3 0.6 1.5 1.6 
         0612 Other beet, cane and chemically pure 
 sucrose,solid form 0.7 2.3 2.2 1.3 1.1 0.9 1.0 
         0989 Food preparations, n.e.s. 1.1 1.3 1.3 1.0 0.8 0.5 0.9 
      Agricultural raw material 2.2 2.2 2.5 2.2 2.5 1.8 1.6 
         2690 Worn clothing and other worn textile articles, 
 rags 1.8 1.7 2.2 1.9 2.1 1.4 1.2 
   Mining 10.0 9.1 19.8 14.0 12.9 19.4 17.5 
      Ores and other minerals 0.3 0.3 0.5 0.3 0.2 0.2 0.3 
      Non-ferrous metals 0.7 0.8 0.7 0.8 1.0 0.7 0.8 
      Fuels 8.9 8.0 18.5 12.9 11.7 18.5 16.5 
         3341 Motor gasolene, light oil 1.0 1.1 3.7 4.3 3.7 18.0 15.8 
               
Manufactures 67.8 72.5 63.1 68.5 70.7 65.5 65.8 
   Iron and steel 3.2 3.9 3.4 3.7 3.4 3.7 3.9 
         6732 Flat, hot-rolled products, iron/steel, not 
 clad/plated/coated 0.8 0.7 0.9 0.8 1.0 1.4 1.9 
   Chemicals 9.5 10.7 10.2 12.3 13.2 12.4 14.0 
         5621 Mineral or chemical fertilizers, 
 nitrogenous 0.4 0.5 0.7 0.5 0.8 0.8 1.6 
         5711 Polyethylene 0.6 0.6 0.7 0.7 0.9 0.9 1.3 
         5429 Medicaments, n.e.s. 0.9 1.2 0.7 1.2 0.9 0.9 1.1 
         5751 Propylene polymers or of other olefins 0.2 0.1 0.3 0.4 0.6 0.6 0.9 
   Other semi-manufactures 8.0 8.5 8.4 9.2 9.1 8.9 8.6 
         6252 Tyres, pneumatic, new, for buses or lorries 0.5 0.5 0.6 0.8 0.8 0.7 0.8 
   Machinery and transport equipment 36.9 39.5 32.7 35.0 35.6 31.9 30.6 
      Power generating machines 1.8 1.5 0.9 3.9 1.0 1.6 1.3 
      Other non-electrical machinery 11.2 12.3 10.2 10.2 12.6 10.6 11.4 
         7239 Parts n.e.s., of  machinery of 723 and 744.3 1.2 1.1 1.5 0.7 1.1 1.1 1.8 
         Agricultural machinery and tractors 0.5 0.4 0.4 0.5 0.6 0.4 0.5 
      Office machines & telecommunication equipment 4.9 3.5 5.6 7.0 5.7 5.4 4.7 
         7641 Electrical apparatus for line 
 telephony/telegraphy  1.5 0.4 2.7 2.4 1.2 1.3 1.0 
         7599 Parts and acce ssories of 751.1,  751.2, 751.9 
 and 752 0.3 0.2 0.3 0.4 0.5 0.9 0.8 
      Other electrical machines 3.9 4.2 3.4 2.6 3.0 2.2 2.9 
      Automotive products 11.1 12.8 10.0 9.0 10.7 8.7 7.9 
         7812 Motor vehicles for the transport of persons, 
 n.e.s. 3.9 4.7 3.3 3.4 3.8 3.3 3.1 
         7821 Goods vehicles 4.3 4.9 4.4 3.2 4.0 2.9 2.9 
         7831 Public-transport type passenger motor 
 vehicles 1.0 1.0 1.0 1.1 1.4 1.2 0.8 
      Other transport equipment 3.9 5.2 2.7 2.3 2.6 3.4 2.4 
   Textiles 2.3 1.9 2.0 2.5 2. 6 2.3 1.8 
   Clothing 1.3 1.4 0.8 0.9 1.0 0.8 0.6 
   Other consumer goods 6.7 6.5 5.5 4.9 5.9 5.6 6.2 
         8928 Printed matter, n.e.s. 0.3 0.8 0.3 0.3 0.4 0.5 0.7 
               
Other 0.0 0.0 0.0 0.1 0.1 0.0 0.0 
   Gold 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Source:  WTO Secretariat estimates, based on UNSD, Comtrade database SITC Rev.3 data. WT/TPR/S/171/TZA Trade Policy Review 
Page A2-206 
 
 
 Table AI.3 
Destination of exports, 1999-04 
(US$ million and per cent) 
  1999 2000 2001 2002 2003 2004 2004 incl.
re-exports 
                
Total (US$ million) 642.1 655.8 762.9 901.4 1,218.4 1,329.8 1,465.8 
                
  (per cent) 
                
  America 2.8 2.6 2.2 1.8 1.4 1.6 1.6 
    United States 2.4 2.3 2.0 1.5 0.9 1.0 1.0 
    Canada 0.1 0.1 0.1 0.2 0.1 0.4 0.3 
    Other America 0.3 0.2 0.1 0.2 0.3 0.2 0.2 
                
  Europe 42.5 56.1 59.5 56.2 54.9 52.8 48.4 
    EC(15) 39.1 54.1 56.4 52.9 52.9 49.1 45.0 
      United Kingdom 10.3 22.3 18.3 17.7 31.8 35.3 32.3 
      Netherlands 7.3 6.9 6.7 6.1 5.6 4.5 4.1 
      Germany 7.9 9.2 5.0 3.1 2.5 2.5 2.3 
      Italy 1.3 1.4 1.0 2.7 1.9 2.1 1.9 
      Belgium-Luxembourg 4.4 2.8 1.4 2.4 2.9 2.0 1.8 
      Spain 0.9 0.7 1.0 0.8 0.8 0.9 .. 
      France 0.7 5.6 18.0 17.3 6.5 0.8 .. 
    EFTA 1.6 0.5 0.9 0.8 1.1 2.3 2.1 
      Switzerland 1.6 0.5 0.6 0.6 1.0 2.3 2.1 
    Eastern Europe 1.2 1.3 0.8 0.8 0.5 0.9 0.8 
      Former USSR 0.1 0.5 0.1 0.3 0.2 0.2 0.2 
    Other Europe 0.6 0.3 1.5 1.8 0.4 0.5 0.5 
               
  Asia 36.5 28.2 26.7 26.4 20.3 24.7 22.7 
    Middle East 2.0 1.9 2.3 4.0 2.5 2.6 2.4 
      United Arab Emirates 1.0 0.9 1.2 1.6 1.4 1.3 1.3 
      Saudi Arabia 0.2 0.5 0.6 1.9 0.7 1.0 0.9 
    East Asia 14.2 9.9 12.6 13.9 10.8 13.9 12.6 
      China 0.3 0.1 0.1 0.1 0.3 5.4 4.9 
      Japan 7.1 5.2 8.9 10.8 7.3 4.9 4.4 
      Singapore 1.9 1.0 0.8 0.4 1.1 1.2 1.1 
      Hong Kong, China 0.8 1.3 1.1 1.3 0.8 0.9 0.8 
    South Asia 20.3 16.4 11.8 8.4 6.9 8.2 7.6 
      India 18.6 15.0 10.7 7.2 6.1 7.6 7.1 
                
  Oceania 0.4 0.2 0.4 0.4 0. 2 0.3 0.3 
               
  Africa 17.7 12.9 11.3 15.2 23.2 20.5 27.0 
    Sub-Saharan Africa 14.5 10.2 9.6 12.7 19.6 11.2 18.3 
      Kenya 5.8 4.8 5.0 4.0 6.8 6.4 6.1 
      Malawi 0.8 0.9 0.7 2.0 1.1 0.9 1.6 
      Uganda 1.5 1.3 0.7 0.6 3.9 0.9 3.8 
      Zaire 1.4 0.5 0.7 1.8 3.0 0.8 2.8 
      Zambia .. .. .. .. .. .. 1.1 
      Burundi .. .. .. .. .. .. 0.9 
    Other Africa 3.2 2.6 1.6 2.5 3.6 9.3 8.8 
      South Africa 0.0 1.8 1.1 1.9 3.2 8.6 8.2 
               
  Other 0.1 0.0 0.0 0.0 0.0 0.0 0.0 
         
Memorandum:         
    EC(25) .. .. .. .. .. .. 45.6 
.. Not available. 
Source:  WTO Secretariat estimates, based on UNSD, Comtrade database SITC Rev.3 data. EAC-Tanzania WT/TPR/S/171/TZA 
 Page A2-207 
 
 
 Table AI.4 
Origin of imports, 1998-04 
(US$ million and per cent) 
  1998 1999 2000 2001 2002 2003 2004 
                
Total (US$ million) 1,670.8 1,588.0 1,586.5 1,728. 5 1,691.2 2, 189.5 2,531.2 
                
  (per cent) 
                
  America 10.1 8.8 7.2 5.8 7.3 6.2 6.2 
    United States 6.0 5.1 3.5 3.8 5.5 3.2 3.1 
    Canada 1.6 1.1 2.0 1.3 1.1 1.4 1.6 
    Other America 2.5 2.7 1.7 0.7 0.8 1.6 1.6 
                
  Europe 26.5 33.3 22.1 24.5 25.0 22.0 20.3 
    EC(15) 24.2 30.6 20.1 22.1 22.0 19.6 18.5 
      United Kingdom 7.8 7.7 6.4 6.4 5.7 4.9 4.4 
      Germany 3.8 4.9 3.1 3.9 3.6 3.1 3.0 
      Netherlands 2.2 5.7 1.8 1.8 1.6 1.5 1.7 
      France 1.3 1.0 1.4 2.4 2.3 1.9 1.6 
      Italy 3.0 4.3 2.2 2.9 2.7 1.8 1.6 
      Belgium-Luxembourg 1.7 1.6 1.1 1.3 1.4 1.5 1.4 
      Spain 0.7 0.4 0.6 0.6 0.6 0.6 1.2 
      Finland 0.8 0.9 0.6 0.3 1.0 0.8 1.1 
    EFTA 1.5 1.9 0.9 0.9 1.7 1.2 1.0 
    Eastern Europe 0.3 0.4 0.8 1.3 1.1 0.9 0.4 
      Former USSR 0.2 0.2 0.4 1.0 0.8 0.5 0.3 
    Other Europe 0.5 0.4 0.3 0.2 0.2 0.3 0.4 
                
  Asia 39.3 36.6 41.5 41.2 43.8 47.6 49.5 
    Middle East 10.9 11.0 14.6 14.0 13.8 17.2 16.8 
      United Arab Emirates 3.1 4.0 3.1 6.3 5.8 6.7 7.3 
      Bahrain 0.8 0.2 0.9 3.3 4.2 7.2 6.2 
      Saudi Arabia 1.6 2.1 10.0 3.4 2.8 2.3 2.2 
    East Asia 21.5 18.7 21.0 21.3 22.2 22.0 23.7 
      Japan 10.8 8.2 8.7 8.7 8.3 7.8 7.1 
      China 3.5 3.1 4.1 4.1 4.7 5.3 6.8 
      Indonesia 1.2 1.0 2.5 2.8 3.7 3.5 3.4 
      Singapore 0.6 0.8 0.3 0.5 0.3 0.8 1.7 
      Thailand 1.1 1.5 1.7 2.2 2.1 0.9 1.2 
    South Asia 6.9 6.9 5.9 5.9 7.8 8.4 8.9 
      India 5.7 5.7 5.2 5.1 6.4 7.6 8.6 
                
  Oceania 5.0 1.8 5.0 8.2 4. 4 2.6 3.1 
      Australia 4.9 1.8 5.0 8.2 4.3 2.5 3.0 
                
  Africa 19.1 18.7 18.1 20.3 19.5 21.6 20.9 
    Sub-Saharan Africa 7.7 9.6 7.0 7.3 6.7 6.3 6.4 
      Kenya 5.8 6.7 5.6 5.6 5.7 5.3 5.2 
    Other Africa 11.3 9.1 11.0 12.9 12.8 15.2 14.5 
      South Africa 0.0 0.0 10.0 11.8 11.3 14.0 13.1 
                
  Other 0.1 0.7 6.2 0.0 0.0 0.0 0.0 
                
Memorandum:               
    EC(25) 24.4 30.7 20.3 22.3 22.1 19.9 18.9 
Source:  WTO Secretariat estimates, based on UNSD, Comtrade database SITC Rev.3 data.