ACCESS! Tanzania
Tanzania Country Profile
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General
Tanzania is located in Eastern Africa between longitude 29 degrees and 41degrees East.Latitude 1 and 12degrees. South bordering Rwanda, Uganda, Kenya, Burundi, the Democratic Republic of Congo, Zambia, Malawi and Mozambique.
Tanzania was created in 1964 after a merger between the mainland Tanganyika achieving independence in 1961 and the island of Zanzibar, which had become independent two years later. Zanzibar is semi-autonomous with an independent parliament and president. Tanzania has a multi-party system and a stable political climate.
Industry and Trade
The main industrial sectors are agriculture, tourism, telecommunications, mining, fishing, forestry, manufacturing and the energy industries. Trade accounts for nearly 13% of total GDP. Coffee is the country’s main export product, while sisal and tea also earn significant amounts of foreign currency. Manufactured goods, cotton, cashew nuts, minerals and tobacco products are exported mainly to India, the UK, Germany, Japan, the Netherlands and Belgium. Agricultural plays an important economic role as it employs 75% of the population and accounts to about 50% of GDP and 80% of exports. The main cash crops include coffee, cotton, cashew nuts, sisal, tobacco, tea, coconuts and cloves. The Indian Ocean and Lake Tanganyika have proved to be plentiful in fish fueling the domestic fishing industry. Fishing is an important contributor to GDP as fish are exported to the EU.
Tanzania was created in 1964 after a merger between the mainland Tanganyika achieving independence in 1961 and the island of Zanzibar, which had become independent two years later. Zanzibar is semi-autonomous with an independent parliament and president. Tanzania has a multi-party system and a stable political climate.
Industry and Trade
The main industrial sectors are agriculture, tourism, telecommunications, mining, fishing, forestry, manufacturing and the energy industries. Trade accounts for nearly 13% of total GDP. Coffee is the country’s main export product, while sisal and tea also earn significant amounts of foreign currency. Manufactured goods, cotton, cashew nuts, minerals and tobacco products are exported mainly to India, the UK, Germany, Japan, the Netherlands and Belgium. Agricultural plays an important economic role as it employs 75% of the population and accounts to about 50% of GDP and 80% of exports. The main cash crops include coffee, cotton, cashew nuts, sisal, tobacco, tea, coconuts and cloves. The Indian Ocean and Lake Tanganyika have proved to be plentiful in fish fueling the domestic fishing industry. Fishing is an important contributor to GDP as fish are exported to the EU.
The Gross Domestic Product grew by 6.7 percent in 2004, compared to 5.7 percent in 2003; this increase was mainly attributed to increase in growth of agriculture sector; trade, hotels and restaurants (including tourism); and transport and communication.
Mining has attracted international interest with a large amount invested in gold, base metals and diamonds. Tanzania has many energy resources which include natural gas, biomass, hydropower, geothermal, coal, solar and wind power, much of this energy potential remains unexploited.
The Government increasingly is recognizing the importance of Small and Medium Enterprises (SME) as a major vehicle for growth and development, including improved income distribution . The SMEs sector contributes 30 per cent of GDP and is responsible for more than 50 per cent of private sector job creation. Thus, the micro and small business sector is seen as very important in the next stage of the country’s economic growth. The Small Industries Development Organization (SIDO) is the key player in the development of SMEs in the country. The organization with network offices in all the 21 regions of Tanzania mainland, offers financial and business development supports such as training, technology development ,infomation on marketing and counseling services.
Tanzania offers a wealth of market opportunities for foreign companies. With a rapidly growing economy, and high levels of domestic investment spending, the Tanzania market will remain an important target destination for local and foreign products and services. Further, Tanzania is part of two distinct market areas: Southern Africa Development Community (SADC) and the East African Community (EAC), with some 304 million consumers.
The Board of External Trade (BET) is the main trade promotion organization dedicated to establishing global business partnership through organising and managing international and specialised trade fairs, solo exhibitions, product and market research development missions, buyer-seller meetings and contact marketing programmes.
Natural Resources
Tanzania’s untapped natural resources offer a wide range of investment opportunities; arable land, minerals and natural tourist attractions such as national parks of Serengeti , Ngorongoro and Kilimanjaro Mountain-the highest peak in Africa. Mining and Tourism are the leading recipient of foreign investment flow and are tipped to become the “growth sectors” of the economy.
Investment Climate and Incentives
The Tanzanian government has sought to attract foreign investment with the Investment Act of 1997 which led to the creation of the Tanzania Investment Centre (TIC) which identifies possible investment opportunities and aids the potential investor in navigating any procedural barriers that might exist, the organization acts as a one stop shop for investors. In the African countries improvement index report, published by the Center for International Development at Harvard University, Tanzania clinched the top spot in a report titled “The Africa Competitiveness Report 2000/2001”, benchmarking macro economic and investment climate success factors. In the African Foreign Investors Survey 2003 Report by UNIDO, Tanzania ranked the first in IPA performance for the last 3 years and also the first in sales growth in 2002 by foreign investor’s perceptions.
Tanzania offers a well-balanced and competitive package of fiscal investment incentives in comparison with other African countries. Aiming at providing competitive fiscal regime on foreign trade, Tanzania has signed double taxation treaties with Denmark, India, Italy, Norway, Sweden, Kenya, Uganda, Zambia and Finland.
Tanzania established its own stock exchange in 1998 called the Dar es Salaam Stock Exchange.
Commercial courts have also been established in an effort to ensure the resolution of business disputes.
Legislation guarantees the right to private ownership and the right of establishment. While there is legislation to protect property rights
International Travel
The Government increasingly is recognizing the importance of Small and Medium Enterprises (SME) as a major vehicle for growth and development, including improved income distribution . The SMEs sector contributes 30 per cent of GDP and is responsible for more than 50 per cent of private sector job creation. Thus, the micro and small business sector is seen as very important in the next stage of the country’s economic growth. The Small Industries Development Organization (SIDO) is the key player in the development of SMEs in the country. The organization with network offices in all the 21 regions of Tanzania mainland, offers financial and business development supports such as training, technology development ,infomation on marketing and counseling services.
Tanzania offers a wealth of market opportunities for foreign companies. With a rapidly growing economy, and high levels of domestic investment spending, the Tanzania market will remain an important target destination for local and foreign products and services. Further, Tanzania is part of two distinct market areas: Southern Africa Development Community (SADC) and the East African Community (EAC), with some 304 million consumers.
The Board of External Trade (BET) is the main trade promotion organization dedicated to establishing global business partnership through organising and managing international and specialised trade fairs, solo exhibitions, product and market research development missions, buyer-seller meetings and contact marketing programmes.
Natural Resources
Tanzania’s untapped natural resources offer a wide range of investment opportunities; arable land, minerals and natural tourist attractions such as national parks of Serengeti , Ngorongoro and Kilimanjaro Mountain-the highest peak in Africa. Mining and Tourism are the leading recipient of foreign investment flow and are tipped to become the “growth sectors” of the economy.
Investment Climate and Incentives
The Tanzanian government has sought to attract foreign investment with the Investment Act of 1997 which led to the creation of the Tanzania Investment Centre (TIC) which identifies possible investment opportunities and aids the potential investor in navigating any procedural barriers that might exist, the organization acts as a one stop shop for investors. In the African countries improvement index report, published by the Center for International Development at Harvard University, Tanzania clinched the top spot in a report titled “The Africa Competitiveness Report 2000/2001”, benchmarking macro economic and investment climate success factors. In the African Foreign Investors Survey 2003 Report by UNIDO, Tanzania ranked the first in IPA performance for the last 3 years and also the first in sales growth in 2002 by foreign investor’s perceptions.
Tanzania offers a well-balanced and competitive package of fiscal investment incentives in comparison with other African countries. Aiming at providing competitive fiscal regime on foreign trade, Tanzania has signed double taxation treaties with Denmark, India, Italy, Norway, Sweden, Kenya, Uganda, Zambia and Finland.
Tanzania established its own stock exchange in 1998 called the Dar es Salaam Stock Exchange.
Commercial courts have also been established in an effort to ensure the resolution of business disputes.
Legislation guarantees the right to private ownership and the right of establishment. While there is legislation to protect property rights
International Travel
Tanzania's international air gateways are at Dar es Salaam, Zanzibar and Kilimanjaro (50 Km from Arusha). Tanzania can also be reached through regional hubs at Nairobi and Johannesburg and to a lesser extent Addis Ababa.
Health
Tanzania boasts with relatively good medical services. At least 90% of the population enjoys easy access to health care. The government is taking seriously the issue of HIV/AIDS disease and several programmes have been designed to assist prevention and giving free ARV drugs to those affected including programs to assist the orphans.
Small and Medium Enterprises
Categories of SMEs in Tanzania:
|
CATEGORY |
EMPLOYEES
|
CAPITAL INVESTMENT IN MACHINERY (Tshs) |
|
Micro |
1-4 |
Up to 5 mil. |
|
Small |
5-49 |
Above 5 mil.to 200 mil |
|
Medium |
50-99 |
Above 200mil.to 800 mil |
|
Large |
100+ |
Above 800mil |
Source: SME Development Policy (2003)
Currently, there is no comprehensive data on the number of women in the MSME sector, the size of their enterprises, or their distribution by sector, only proxies are available. In 1991, women accounted for about 35 per cent of SMEs. By 1995, it was estimated that the proportion of women in the sector could have risen to 70 per cent. In a 2000 Economic and Social Research Foundation (ESRF) study, 55 per cent of the enterprises in the sample were owned by women. Swiss contact (2003) estimated that women owned 43 per cent of MSEs. If one uses the extrapolated figures from the estimates, then there could be as many as 1.154 million women entrepreneurs in Tanzania.
Majority of women enterprises in Tanzania are found in the following sectors:
• Handicrafts
• Textiles including batik, tie and dye and handlooms
• Agro processing
• Mining
• Horticulture
Women dominate the micro-enterprise sector, yet are undervalued and subjected to stereotypical images. Thus deliberate efforts have to be applied for the following reasons:
1. to demonstrate the diversity of women entrepreneurs in the economy, some of which have grown to medium size;
2. to tap the full potential of women (being 52 per cent of the population) in the economic arena; and
3. to dispel the myth that women’s enterprise is only at the subsistence level and associated with poverty reduction activity, as opposed to job creation and economic growth.
The ACCESS! Program was created to aid in the development of women entrepreneurs in Africa. The program provides training and mentoring services, as well as a web portal system.
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Tanzania is divided into 26 regions namely Arusha, Dar es Salaam, Dodoma, Iringa, Kagera, Kigoma, Kilimanjaro, Lindi, Manyara, Mara, Mbeya, Morogoro, Mtwara, Mwanza, Pemba North, Pemba South, Pwani, Rukwa, Ruvuma, Shinyanga, Singida, Tabora, Tanga, Zanzibar Central/South, Zanzibar North, Zanzibar Urban/West.
The northeast of Tanzania is a mountainous region that includes Mt.Meru (14,979 ft/4,566 m) and Mount Kilimanjaro (19,340 ft./5,895 m), the latter of which is the highest point in Africa. To the west of these peaks is Serengeti National Park, which has the greatest concentration of migratory game animals in the world (e.g.200,000 zebra). The Serengeti contains the marvelous Eden of Ngorongoro, a 20-mile-wide volcanic crater that is home to an extraordinary concentration and diversity of wildlife. Kilimanjaro, Tanga and Arusha regions are found in this area.
To the west of the Serengeti is Lake Victoria, the largest lake on the continent and one of the primary headwater reservoirs of the Nile. Fish catching and processing is mainly practiced in all three regions of Mwanza, Kagera and Mara situated in this part of Tanzania. Fish-skin is used to manufacturer exotic bags admired by many tourists. Vanilla is also grown to a large extent in Kagera.
Southwest of Lake Victoria, and forming Tanzania's border with Zaire, is Lake Tanganyika, the longest and deepest freshwater lake in the world. It was at Ujiji village in Kigoma region the Tanzanian shore of Lake Tanganyika, that H.M. Stanley presumably encountered David Livingstone in 1871. The region that they passed through has since become famous as GombeNational Park, the site of Jane Goodall's chimpanzee research station.To the east of Kigoma isTabora region where honey from Miombo woodlands is harvested, filtered, packed and exported to many countries of the world. Over 95 per cent of beekeeping is practised in savannah forests.
Southeast of Lake Tanganyika is a mountainous region that includes LakeMalawi (previously Lake Nyasa), the third largest lake on the continent. East of Lake Malawi is the enormous expanse of the Selous Game Reserve, the largest in Africa with over 21,000 sq. mi. (55,000 sq. km.) and perhaps more than 50,000 elephants. Mbeya a region on the west of the lake is very fertile with enormous food crops so as variety of vegetables. To the north of the lake lies Iringa region, women enterprises in this area are engaged mainly in basketry and embroidery products. To the west
of Lake Malawi on the South East of Tanzania are Mtwara and Lindi regions famous for cashewnuts and carvings from ebony trees also known as “Mpingo” in Swahili.
Northeast from Selous is Tanzania's low, lush coastal strip, the location of its largest city Dar es Salaam. Local industries here include food products, textiles, cement, and pharmaceuticals. About one half of Tanzania's manufacturing employment is located here despite the fact that Dar Es Salaam holds only ten percent of the population. Dar Es Salaam is the embarkation point for Zanzibar, the fabled emerald isle that lies off the Tanzanian coast. Zanzibar's main industries are spices (including clove, nutmeg, cinnamon and pepper) and tourism. Zanzibar is also the only home of the Zanzibar Red Colobus monkey. The Island of Pemba is also famous for cloves and clove honey.
The climate of Tanzania varies quite a bit, considering that its environment includes both the highest and the lowest points on the continent. While the narrow lowland coastal region is consistently hot and humid, the central regions of Tanzania are sufficiently elevated with cooler temperatures. The rainy seasons extend from November to early January and from March to May.
The northeast of Tanzania is a mountainous region that includes Mt.Meru (14,979 ft/4,566 m) and Mount Kilimanjaro (19,340 ft./5,895 m), the latter of which is the highest point in Africa. To the west of these peaks is Serengeti National Park, which has the greatest concentration of migratory game animals in the world (e.g.200,000 zebra). The Serengeti contains the marvelous Eden of Ngorongoro, a 20-mile-wide volcanic crater that is home to an extraordinary concentration and diversity of wildlife. Kilimanjaro, Tanga and Arusha regions are found in this area.
To the west of the Serengeti is Lake Victoria, the largest lake on the continent and one of the primary headwater reservoirs of the Nile. Fish catching and processing is mainly practiced in all three regions of Mwanza, Kagera and Mara situated in this part of Tanzania. Fish-skin is used to manufacturer exotic bags admired by many tourists. Vanilla is also grown to a large extent in Kagera.
Southwest of Lake Victoria, and forming Tanzania's border with Zaire, is Lake Tanganyika, the longest and deepest freshwater lake in the world. It was at Ujiji village in Kigoma region the Tanzanian shore of Lake Tanganyika, that H.M. Stanley presumably encountered David Livingstone in 1871. The region that they passed through has since become famous as GombeNational Park, the site of Jane Goodall's chimpanzee research station.To the east of Kigoma isTabora region where honey from Miombo woodlands is harvested, filtered, packed and exported to many countries of the world. Over 95 per cent of beekeeping is practised in savannah forests.
Southeast of Lake Tanganyika is a mountainous region that includes LakeMalawi (previously Lake Nyasa), the third largest lake on the continent. East of Lake Malawi is the enormous expanse of the Selous Game Reserve, the largest in Africa with over 21,000 sq. mi. (55,000 sq. km.) and perhaps more than 50,000 elephants. Mbeya a region on the west of the lake is very fertile with enormous food crops so as variety of vegetables. To the north of the lake lies Iringa region, women enterprises in this area are engaged mainly in basketry and embroidery products. To the west
of Lake Malawi on the South East of Tanzania are Mtwara and Lindi regions famous for cashewnuts and carvings from ebony trees also known as “Mpingo” in Swahili.
Northeast from Selous is Tanzania's low, lush coastal strip, the location of its largest city Dar es Salaam. Local industries here include food products, textiles, cement, and pharmaceuticals. About one half of Tanzania's manufacturing employment is located here despite the fact that Dar Es Salaam holds only ten percent of the population. Dar Es Salaam is the embarkation point for Zanzibar, the fabled emerald isle that lies off the Tanzanian coast. Zanzibar's main industries are spices (including clove, nutmeg, cinnamon and pepper) and tourism. Zanzibar is also the only home of the Zanzibar Red Colobus monkey. The Island of Pemba is also famous for cloves and clove honey.
The climate of Tanzania varies quite a bit, considering that its environment includes both the highest and the lowest points on the continent. While the narrow lowland coastal region is consistently hot and humid, the central regions of Tanzania are sufficiently elevated with cooler temperatures. The rainy seasons extend from November to early January and from March to May.
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