TICGL

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Research for

Doing Business in Tanzania

Situation Analysis for Doing Business in Tanzania

Tanzania has made significant strides in creating a business-friendly environment, marked by increased investment inflows and infrastructural modernization. In 2024, the country attracted over TZS 40 trillion through Public-Private Partnerships (PPPs) and recorded a 25% rise in business registrations, with over 5,000 new businesses established. Key reforms, such as streamlined licensing procedures—reducing processing times from seven to three days—have enhanced efficiency and transparency. Agriculture, contributing 26.7% to GDP and employing over 65% of the workforce, remains a cornerstone of the economy. Investments in energy and infrastructure, such as port expansions and renewable energy projects, underscore the government’s commitment to economic transformation.

Looking ahead to 2025, Tanzania has set ambitious goals to mobilize an additional TZS 50 trillion in investments and expand energy generation by 300 MW, primarily focusing on renewable sources like hydropower and solar. Plans to modernize 200,000 hectares of agricultural land with irrigation systems aim to boost productivity and ensure food security. Economic indicators, including a 10% increase in revenue collections to TZS 25 trillion and a tax-to-GDP ratio improvement from 13.9% in 2023 to 14.5% in 2024, reflect strong fiscal performance. Inflation has been maintained at a stable 4%, providing a conducive macroeconomic environment for businesses. This questionnaire aims to gather insights on the effectiveness of these reforms, challenges in the business ecosystem, and opportunities for further growth.

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