Welcome to Corporate Tanzania
2010/2011 – The Business Trade
and Investment Guide.
Corporate Tanzania 2010/2011 – The Annual Business Trade and Investment Guide is intended to provide an overview of the country and inform readers about key policy issues and priority sectors.
Tanzania is one of the least developed countries which has great potential and prospects for attaining higher growth and development levels. The country is richly endowed with natural resources, pursues sound economic policies and has attractive investment policies. Tanzania is a vibrant democracy and the government is seriously committed to good governance, rule of law and respect for human rights. Our country, has enjoyed uninterrupted political stability since independence nearly five decades ago. Tanzania is an island of stability in a region which, unfortunately, has had an unfair share of political conflicts and violence.
Since, the second half of the 1980s, bold decisions were made to undertake economic reforms and put the macro-economic frame back on track. The reform process still endures although a lot has been achieved so far, and is paying expected dividends. The economy has been transformed from state controlled to market based. The private sector has become the engine of growth and measures are steadily being taken to enhance the role and participation of the private sector. Public Private Partnership has been acknowledged as a critical factor in promoting growth and development.
For almost a decade now, Tanzania has been enjoying macro-economic stability. GDP growth has been impressive at an average of 6.6 per cent. For five years (2004 – 2008) growth reached an average of 7.1 per cent. Unfortunately, due to the global economic slowdown, in 2009, growth declined to 5 per cent. The government devised an economic stimulus package to rescue the economy. Things seem to have worked well. This year growth is expected to be 6.1 per cent rising to 6.6 per cent in 2011 and bouncing back to 7.1 per cent in 2012.
Inflation remains a challenge but we are doing everything possible to see it decline further. In essence, Tanzania's inflation is a function of high food prices which has been the case in the past two years due to low food production because of poor rains in many parts of the country. Ensuring food security is a top priority objective of the green revolution agenda.
This Guide highlights the investment climate in the country and the opportunities offered by agriculture, mining, tourism, oil and gas, energy, manufacturing, telecommunications, IT, infrastructure, transportation and others. Protection of investments is assured through domestic legislations and international instruments to which Tanzania is a member. For example, the International Centre for Settlement of Investment Disputes (ICSID) and the Multilateral Investment Guarantee Agency (MIGA).
Tanzania's spectacular tourist attractions include: the majestic spice Islands of Zanzibar – the ultimate paradise on the Indian Ocean; Mount Kilimanjaro the highest mountain in Africa with a snow cap despite being very close to the Equator; the Olduvai Gorge – the Cradle of Mankind; the Ngorongoro Crater – the 7th natural wonder of the World; the Serengeti National Park – world renown for the largest concentration of wildlife and the spectacular wildebeest migration – there is nothing like it on this planet, the Selous Game Reserve – the largest game reserve in Africa; Lake Tanganyika – the deepest lake in Africa; and Lake Victoria, the largest lake in Africa. All these endowments offer opportunities for leisure and investment in hotels, camps, water sports, hunting, tour operation, etc.
Tanzania offers a sizeable domestic market and a huge regional market of more than 300 million people within the East African Community (EAC) and the Southern Africa Development Community (SADC) to which the country is a member. The ongoing process of merging EAC, SADC and Common Market for Eastern and Southern Africa (COMESA) into one trading block will further expand regional market opportunities. The country also enjoys access to export markets through different preferential arrangements such as AGOA with the USA, EBA with the European Union – as well as with China through FOCAC, India through Indo-Africa Partnership and Japan through TICAD.
Tanzania is ready to do business with the World. You are all welcome.
Jakaya Mrisho Kikwete
PRESIDENT OF THE UNITED REPUBLIC OF TANZANIA