Doing Business in Tanzania 2024

A snapshot of the business environment in Tanzania, highlighting areas of strength and opportunities for regulatory and procedural improvements.

Starting Business - 40%

• Indicator Description: This measures the procedures, time, cost, and paid-in minimum capital to start a limited liability company.
• Implication: With a score of 40%, it indicates there are significant challenges or bureaucratic hurdles involved in starting a business in Tanzania. Improvements in simplifying procedures and reducing costs could enhance this score.

Contracts with the Government - 60%

• Indicator Description: This typically measures the ease of securing contracts with government entities, including transparency and fairness in the procurement process.
• Implication: A 60% score suggests a moderate level of efficiency and fairness in dealing with government contracts, but there is room for improvement in transparency and reducing bureaucratic barriers.

Employing Workers - 80%

• Indicator Description: This looks at regulations regarding hiring, working hours, redundancy, and cost of labor.
• Implication: An 80% score indicates a relatively flexible and favorable environment for hiring workers, suggesting that labor laws and regulations are conducive to business operations.

Resolving Insolvency - 61%

• Indicator Description: This assesses the time, cost, and outcome of insolvency proceedings, including the recovery rate.
• Implication: With a score of 61%, Tanzania shows moderate effectiveness in handling insolvency cases. There might be inefficiencies in the process that could be streamlined to improve the recovery rate and reduce the time and cost involved.

Trading Across Borders - 65%

• Indicator Description: This measures the time and cost associated with the logistical process of exporting and importing goods.
• Implication: A 65% score suggests a moderate level of ease in trading across borders, but there are likely logistical challenges and costs that can be optimized to facilitate smoother international trade.

Paying Taxes - 30%

• Indicator Description: This evaluates the tax burden on businesses, including the number of taxes paid, the method of tax payment, and the overall tax rate.
• Implication: A low score of 30% indicates a high tax burden or a complex tax system, suggesting significant room for reform to simplify tax compliance and reduce the financial load on businesses.

Getting Credit - 60%

• Indicator Description: This looks at the ease of obtaining credit, including the strength of legal rights and the depth of credit information.
• Implication: A 60% score suggests moderate access to credit for businesses, indicating that while some mechanisms are in place to facilitate credit, there are barriers or limitations that could be addressed to improve credit availability.

Enforcing Contracts - 70%

• Indicator Description: This measures the efficiency of the judicial system in resolving commercial disputes, including time, cost, and the quality of judicial processes.
• Implication: A score of 70% reflects a reasonably effective system for enforcing contracts, though there is still potential for improvements in reducing delays and costs associated with litigation.

Protecting Minority Investors - 80%

• Indicator Description: This evaluates the protection of minority shareholders' interests against misuse by company directors.
• Implication: An 80% score indicates strong legal protections for minority investors, suggesting a business environment that supports investor confidence and equitable treatment.

Registering Property - 55%

• Indicator Description: This measures the procedures, time, and cost to transfer property and the quality of the land administration system.
• Implication: A score of 55% implies moderate difficulty in property registration, with potential issues in the efficiency or transparency of the process that could be improved.

Getting Electricity - 65%

• Indicator Description: This assesses the reliability of electricity supply and the procedures, time, and cost required to obtain a new electricity connection.
• Implication: A 65% score suggests a reasonably stable electricity supply but indicates that the process to get connected could be streamlined to be more business-friendly.

Dealing with Construction Permits - 79%

• Indicator Description: This evaluates the procedures, time, and cost involved in constructing a warehouse, including obtaining necessary licenses and permits.
• Implication: A score of 79% indicates a relatively efficient process for obtaining construction permits, though there might still be some bureaucratic steps that could be further optimized.

Strategic Recommendations on ease of doing business in Tanzania, focusing on procedures, time, and cost

1. Starting Business (40%)

• Procedures: Simplify the registration process by reducing the number of steps and making it possible to complete all procedures online.
  • Time: Streamline processes to reduce the time required to register a business by introducing a single-window system where all necessary approvals can be obtained in one place.
  • Cost: Lower the registration fees and eliminate unnecessary costs associated with starting a business. Offer incentives or subsidies for startups and small businesses.

2. Contracts with the Government (60%)

• Procedures: Increase transparency in the procurement process by standardizing and simplifying application procedures and ensuring they are clearly documented and easily accessible.
  • Time: Reduce the time taken to award contracts by implementing electronic procurement systems and setting clear timelines for each stage of the process.
  • Cost: Minimize costs associated with bidding for government contracts by reducing or eliminating fees and simplifying the financial requirements for participation.

3. Employing Workers (80%)

• Procedures: Continue to streamline hiring processes and ensure that labor laws are clearly communicated to both employers and employees.
  • Time: Maintain efficient timelines for processing employment-related documentation, such as work permits and employee registrations.
  • Cost: Ensure that costs related to hiring, such as social security contributions and other mandatory payments, are reasonable and competitive.

4. Resolving Insolvency (61%)

• Procedures: Simplify the legal framework for insolvency proceedings, making it easier for businesses to understand and navigate.
  • Time: Implement measures to speed up the resolution of insolvency cases by increasing the capacity of courts and insolvency practitioners.
  • Cost: Reduce the costs associated with insolvency proceedings by setting fee caps and providing support services for struggling businesses.

5. Trading Across Borders (65%)

• Procedures: Simplify customs procedures and documentation requirements, and ensure that all necessary information is available online.
  • Time: Reduce the time required for border compliance by improving infrastructure at ports and borders, and by implementing advanced customs technologies.
  • Cost: Lower costs associated with importing and exporting by reducing tariffs and fees and improving the efficiency of customs operations.

6. Paying Taxes (30%)

• Procedures: Simplify the tax filing process by reducing the number of tax payments and consolidating taxes where possible. Implement an easy-to-use online tax filing system.
  • Time: Reduce the time required to prepare and file taxes by providing clear guidelines and support to businesses. Ensure that tax authorities are efficient and responsive.
  • Cost: Lower the overall tax burden by reviewing and possibly reducing tax rates, and by eliminating unnecessary or redundant taxes.

7. Getting Credit (60%)

• Procedures: Improve access to credit information by expanding credit bureaus and ensuring that they provide comprehensive and accurate data.
  • Time: Streamline the process for obtaining credit by reducing the documentation and approval time required by financial institutions.
  • Cost: Encourage competitive interest rates and reduce collateral requirements by promoting a healthy financial sector and supporting alternative lending options.

8. Enforcing Contracts (70%)

• Procedures: Simplify legal procedures for contract enforcement and ensure that all relevant laws and regulations are accessible and understandable.
  • Time: Speed up judicial processes by increasing the efficiency of courts and reducing case backlogs.
  • Cost: Lower the costs of litigation by providing affordable legal aid and capping legal fees.

9. Protecting Minority Investors (80%)

• Procedures: Ensure that regulations protecting minority investors are robust and clearly enforced.
  • Time: Maintain prompt response times for addressing investor grievances and disputes.
  • Cost: Ensure that the costs associated with investor protection are minimal, encouraging more investment activity.

10. Registering Property (55%)

• Procedures: Simplify the property registration process by reducing the number of steps and making more services available online.
  • Time: Reduce the time required to register property by streamlining bureaucratic processes and increasing the efficiency of land administration offices.
  • Cost: Lower the costs associated with property registration by reducing fees and eliminating unnecessary charges.

11. Getting Electricity (65%)

• Procedures: Simplify the process for obtaining electricity connections by reducing the number of required approvals and making the application process available online.
  • Time: Speed up connection times by improving the efficiency of utility providers and investing in infrastructure upgrades.
  • Cost: Lower the costs associated with getting electricity by reducing connection fees and offering subsidies or incentives for new connections.

12. Dealing with Construction Permits (79%)

• Procedures: Continue to streamline the process for obtaining construction permits by reducing bureaucratic steps and ensuring transparency.
  • Time: Maintain efficient timelines for processing construction permits by increasing the capacity and responsiveness of relevant authorities.
  • Cost: Ensure that fees for construction permits are reasonable and competitive, and provide support for small and medium-sized construction projects.