World Bank file photo.
Click to print Opens in new window Tanzania, with a population of around 45 million, has sustained high economic growth over the past decade, according to the World Bank.
However, doing business in Tanzania is not always straightforward. The country has been ranked in th place out of countries worldwide in the Doing Business report recently released by the IFC and World Bank.
Tanzania is a country of natural beauty and tourist attractions. Godfrey Mosha is the founder of Principal Company, a Tanzanian-based business that imports and sells baking ingredients to industries in many parts of the country. Having been in operation sincethe company has experienced some of the challenges and opportunities of operating in Tanzania.
Here is what Mosha has identified as some of the pros and cons of doing business in Tanzania. Here are some of the challenges that one could encounter: Power crisis Tanzania depends on hydro electricity as its main source of power hence affecting manufacturing businesses whenever there is a failure or breakdown.
Poor infrastructure Leads to high costs of transportation of raw materials and finished goods. Bureaucracy There is too much documentation which leads to the delay in obtaining various permits. Difficulties in securing financial support Many entrepreneurs fail to secure sufficient capital mainly due to lack of substantial collateral hence posing a threat to new and upcoming ventures and also hampering their investment commencement.
Sometimes businessmen fail to get enough capital due to banks issuing limited amounts as loan for investments. Lack of raw materials Despite Tanzania owning a number of resources, raw materials are still inadequate thus failing to meet the demand of businesses for production purposes.
High inflation rate The fluctuation of the inflation rate affects the Tanzanian shilling and the purchasing power of the consumers. Some of the opportunities found in Tanzania include: Market potential With Tanzania being amongst the developing countries, the market is full of opportunities for investments ranging from agribusinesstourismmanufacturing to importation.
Government support The Tanzanian government provides various investment incentives to local and foreign investors through the Tanzania Investment Centre. Political stability Unlike other neighbouring countries, Tanzania is very peaceful and it also offers a very conducive environment for businesses to operate and prosper in the near future.
Agricultural land Tanzania has plenty of uncultivated arable land for agricultural investment.
Plenty of untapped natural resources Tanzania is rich in natural resources such as gasminerals and uranium that are yet to be fully exploited. Tanzania is gifted with a lot of tourist attractions such as mount Kilimanjaro, Ngorongoro Crater, Serengeti National Park and many others, but does not have enough hotels to accommodate tourists creating room for hotel industry investment.
Availability of man power The labour market in Tanzania is readily available with skilled and semi-skilled workers who are ready and available to work in various industries like manufacturing, agribusiness, mining and many others.
Low cost of importation Entrepreneurs enjoy the benefit of low importation costs since Tanzania is a hub for landlocked countries through its Dar es Salaam, Tanga and Mtwara ports. Room for further expansion Tanzania is part of the East African Community thus offering opportunities for businesses to grow and expand beyond its borders into countries like the Democratic Republic of CongoBurundiRwanda and Uganda.Doing Business Tanzania Page 2.
Doing Business The first report, published in , covered 5 indicator sets and economies. This year’s report covers 11 indicator sets have a population of more than million as of (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the.
Doing business Tanzania - smarter regulations for small and, medium-size enterprises: comparing business regulations for domestic firms in economies () Abstract This tenth edition of Doing Business sheds light on how easy or difficult it is for a local entrepreneur to open and run a small to medium-size business when complying .
However, doing business in Tanzania is not always straightforward. The country has been ranked in th place out of countries worldwide in the Doing Business report recently released by the IFC and World Bank. However, doing business in Tanzania is not always straightforward.
The country has been ranked in th place out of countries worldwide in the Doing Business report recently released by the IFC and World Bank. This economy profile presents the Doing Business indicators for Tanzania. To allow useful comparison, it also provides data for other selected economies (comparator economies) for each indicator.
Doing Business is the 14th in a series of annual reports investigating the regulations that enhance. Overview. Doing Business Smarter Regulations for Small and Medium-Size Enterprises assesses regulations affecting domestic firms in economies and ranks the economies in 10 areas of business regulation, such as starting a business, resolving insolvency and trading across borders.
This year’s report data cover regulations .