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Country Snapshot - Tanzania  

HighlightsRankingsQuantitative DataLegislationAnalytical WorkProject Portfolio
  • Sub-Saharan Africa
  • Low income
  • 45,039,573 (2011)
  • 530
Tanzania Flag
Below are select highlights for the data included in the profile.

  1. Doing Business 2011 ranked Tanzania 128th out of 183 economies. Its overall score has declined by 3 points this year, reflecting lower improvements for five indicators.
  2. According to the latest Enterprise Surveys (2006), the top constraints to firm investment include Electricity and Access to Finance.
  3. Of the 33 sectors covered by the Investing Across Sectors indicators, 26 are fully open to foreign equity ownership in Tanzania, including manufacturing and primary industries. The country imposes foreign equity ownership restrictions on a number of service sectors. For example, foreign capital participation in the telecommunications sector is limited to a maximum of 65%. Furthermore, Tanzanian laws specify that at least one-third of the share capital of insurance companies must be owned by Tanzanian citizens. The media industry is subject to limits on foreign ownership as well. While the Broadcasting Services Act allows a maximum of 49% foreign ownership of Tanzanian TV stations, foreign capital participation in local nationwide newspapers is prohibited. It takes 14 procedures and 38 days to establish a foreign-owned limited liability company (LLC) in Dar es Salaam, Tanzania. This is slower than both the IAB regional average for Sub-Saharan Africa and the IAB global average.
  4. Tanzania’s economic freedom score is 57, making its economy the 108th freest out of 183 in the 2011 Index. Its score is 1.3 points lower than last year, reflecting declines in six of the 10 economic freedoms. Tanzania is ranked 15th out of 46 countries in the Sub-Saharan Africa region, and its overall score is slightly lower than the world average. Tanzania has made considerable gains in income growth and poverty reduction over the past decade. While small in size, Tanzania’s financial sector is developing rapidly, and credit is increasingly allocated at market rates, supporting the development of a vibrant entrepreneurial sector. Tanzania’s competitive tax rates and openness to foreign investment further promote private-sector dynamism. Despite these recent gains, Tanzania lacks the strong commitment to further institutional reforms that are essential to the development of a strong private sector. Private property rights are weakly protected and poorly defined, deterring investment. Tanzania’s burdensome regulatory system and restrictive labor regulations constrain economic activity, while widespread corruption and volatile prices add to the daily cost of conducting business.