Contents

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E-mail: brabys@brabys.com
MARKETING
Marie Gibbons
PRODUCTION
Creative Solutions - René Hartslief
DESIGN
Creative Solutions - Michel Gribben
PHOTOGRAPHY
René Hartslief, Marie Gibbons, Tanzania Tourist Board,
Corporate Tanzania, The Tanzanite Experience, Mbeya
Cement, Mollel Electrical Contractors Ltd, Atlas Copco
EDITORIAL RESEARCH & CONTENT
Louella Morgan-Jarvis
While every care has been taken in the preparation of this publication, the
publishers can accept no liability for any errors or omissions that may occur.
This publication is the exclusive property of the publishers and no part of the
contents may be reproduced in any form without prior written permission of the
publishers.

Foreword 3 Mining Industry 38

Introduction 4 Physical Infrastructure 46

Trade & Investment 8 Social Infrastructure 58

Business & Finance 14 Zanzibar 62

Tourism 24 Useful Information 70

Agriculture & Fisheries 30 Map 71

Manufacturing 34 Index to Advertisers 72

1 Celebrating 50 Years of Independence

Introduction
With some 1 400 kilometres
of Indian Ocean coastline,
and sharing borders with
eight other countries,
Tanzania is the economic
hub of East Africa.
Despite being one of the poorer countries on the continent,
with an annual per capita income of around US$ 500, Tanzania
is rich in potential. Around 30 percent of its surface area
comprises protected natural habitat, making it one of the most
naturally diverse countries in the world. It also boasts world-
famous attractions such as Mount Kilimanjaro, Ngorongoro
Crater, the superb wildlife of the Serengeti and the exotic ‘spice
island’ of Zanzibar.
50 years of independence
Tanganyika – as Tanzania’s mainland was then known
– achieved independence from British administration
on 9 December 1961, with Julius Nyerere becoming
the country’s prime minister and, on the adoption of a
republican constitution a year later, its first president.
THE TANZANIAN ECONOMY
The World Bank, International Monetary Fund (IMF) and
bilateral donors have been instrumental in rehabilitating
Tanzania’s aging physical infrastructure, in particular transport
links which are crucial for both regional and international trade.
In addition, banking reforms have helped increase private-
sector growth and investment, while continued donor assistance
and sensible macroeconomic policies have supported the
country’s positive growth rate, even during the world recession.
Tanzania’s Gross Domestic Product (GDP) grew by an average
of 7 percent per year between 2000 and 2008 as a result of
expansion in the tourism industry and strong gold production.
However, the economic base is still heavily dependent on
agriculture, which accounts for more than one-quarter of GDP,
85 percent of exports, and employs some 60 percent of the
workforce.
In 2008, Tanzania received the world’s largest Millennium
Challenge Compact grant, worth US$ 698 million. With fiscal
stimulus and loosened monetary policy helping to ease the
impact of the global recession, GDP growth in 2009/10 was
a respectable 6 percent, buoyed by high gold prices and
increased output.
4
The economy in 2010 and beyond
According to the Bank of Tanzania’s Monetary Policy Statement
of February 2011, the country’s economic performance and
outlook remain strong. Real GDP grew by 7.1 percent in the first
half of 2010 compared with 4.3 percent in the corresponding
period of 2009. The higher growth rate was attributed to factors
such as increased agricultural activity as well as notable growth
in fishing, mining and quarrying, manufacturing, wholesale and
retail trade, electricity and gas, and real estate and business
services. Following this good performance in the first half of
the year, projected growth of 7.0 percent for 2010 is likely to be
attained.
Inflation has taken a downward path for the most part of 2010
as a result of favourable weather conditions which improved
food production in the East African Community (EAC) region.
After 17 months of double-digit inflation, annual headline
inflation dropped to single digits in February 2010 and remained
at these levels until the end of the year. Inflation stood at 4.2
percent in October 2010, but rose to 5.5 percent in November
2010 and 5.6 percent in December 2010 – just slightly more
than the annual target of 5.0 percent.
For 2010, the overall balance of payments remained positive
at a surplus of US$ 369.8 million, compared with a surplus of
US$ 366.2 million recorded in the corresponding period a year
earlier. This development is mainly on account of capital inflows
in the form of grants and foreign borrowing. Nevertheless, the
current account deficit widened by 11.8 percent to US$ 2 405.8
million following a rise in goods imports that outweighed the
impact of the increase in exports of goods and services.
Gross official reserves remained strong, closing at US$ 3 947.9
million at the end of December 2010 (equivalent to 6.3 months’
cover of projected imports of goods and services), compared
with US$ 3 552.5 million recorded at the end of December
2009. Similarly, gross foreign assets of banks increased to
US$ 1 060.9 million from US$ 985.8 million in the same period.
In total, gross foreign banking system reserves amounted to
US$ 5 008.9 million at the end of December 2010.
Celebrating 50 Years of Independence
Higher growth in 2011
In January 2010, government projections estimated
economic growth of 7.2 percent in 2011 due to Tanzania’s
strong recovery after the global financial crisis.
In the second half of 2010/11, economic activity is expected to
strengthen further, as the global economy continues to improve.
This will provide a stronger base for revenue collection and also
higher levels of credit growth, which will enhance economic
growth. The good harvest of food crops in the region during
2010 is expected to keep inflation in check, although there are
downside risks driven by recent increases in global oil prices,
increases in domestic power tariffs, and power rationing.
CLIMATE
Lying just south of the equator, Tanzania’s climate remains
pleasant throughout the year, with the hottest period between
November and February (25°C to 31°C) and the coolest from
May to August (15°C to 20°C). In the highlands, temperatures
can drop to 10°C in winter and rise to around 23°C in summer,
while the rest of the country rarely sees temperatures lower
than 20°C.
There are two rainfall systems in Tanzania. In the southern,
western and central areas, rains fall between December and
April, while in the northern and north-eastern coastal region
there are two rainy season – during November and December
(short rains known as ‘mvuli’) and between March and May
(long rains or ‘masika’).
PAST & PRESENT
The interior of Tanganyika, as the mainland of Tanzania was
then known, was first reconnoitred by European slavers,
missionaries and explorers in the 1800s, with settlements,
mission stations and trading posts built as far inland as Lake
Tanganyika. In the late 19th century, the German East African
Company gained control of large portions of the mainland,
although the British held some influence over the Omani sultans
ruling the Zanzibar Archipelago. By 1891, most of Tanganyika
was under the colonial administration of German East Africa.
The Anglo-German agreement of 1890 made Zanzibar and
Pemba a British protectorate, while Tanganyika fell under
the direct administration of the German government, with
headquarters set up in Dar es Salaam. While British rule
through the Sultan did little to change the political status quo
on Zanzibar over the next three decades, German rule on the
mainland provoked local resistance and a growing sense of
nationalism.
Following the defeat of Germany in World War I, Tanganyika
was handed over to Britain for administration by a system of
indirect rule. The ensuing years saw a growing movement for
political self-determination, with Julius Nyerere founding the
Tanganyika African National Union (TANU) in 1954. By the end
of 1959, Britain had agreed to the establishment of internal self-
governance for Tanganyika.
The country enjoyed a peaceful transition to independence
under the moderate TANU, led by Nyerere, who became prime
minister on independence in December 1961. One year later
the new nation adopted a republican constitution, with Nyerere
as its first president.
6
Zanzibar’s quest for political independence began to gather
momentum in the mid-1950s, with a popular revolution ousting
the Omani sultan in 1963 and a new government being formed
with the Afro-Shirazi Party (ASP) leader Abeid Karume as
President.
United Republic of Tanzania
On 26 April 1964, the sovereign republics of Tanganyika and
Zanzibar united to form the United Republic of Tanganyika and
Zanzibar – a unitary republic comprising the Union Government
and the Zanzibar Revolutionary Government. The country’s
name was changed to the United Republic of Tanzania on 29
October 1964. Under the terms of the union, Zanzibar retains
considerable local autonomy.
To form a sole ruling party in both parts of the union, Julius
Nyerere merged TANU with Zanzibar’s ruling ASP to form
the Chama cha Mapinduzi (CCM) Revolutionary Party in
February 1977. Ali Hassan Mwinyi succeeded Nyerere in 1985,
undertaking a number of political and economic reforms. Up to
this point, Tanzania had been a one-party state with a socialist
economy. The first multiparty general elections were held in
1995, and Benjamin Mkapa of the ruling CCM won around 62
percent of votes cast.
Re-elected in 2000 with 71 percent of the vote, Mkapa
continued in his efforts to move Tanzania towards a free-market
economy. He was succeeded by Jakaya Kikwete in the 2005
elections, which the CCM won by an even larger margin,
picking up additional parliamentary seats. Kikwete was sworn in
for a second five-year term on 6 November 2010, with the ruling
CCM party having earned 61 percent of the vote in the October
elections.
Dogged by conflict between competing interests, Zanzibar’s
political landscape has been more volatile than the
mainland’s, with the 2000 elections marred by irregularities
and accusations of vote rigging. In an effort to ease political
tension between the ruling CCM and opposition Civic United
Front (CUF), a referendum held in July 2010 saw the approval
of a constitutional change which allowed for a power-sharing
agreement.
In the elections of 31 October 2010, Zanzibar’s presidential
race was won by CCM candidate Ali Mohamed Shein, with 50.1
percent of the votes. The leader of the opposition CUF, Seif
Sharif Hamad, received 49 percent of the votes, with the CCM
and CUF subsequently forming a unity government.
Swahili is Tanzania’s official – and by far the most widely
used – language (93 percent), although English is spoken
by at least one and a half million Tanzanians as their
second language, and Arabic is widely spoken in Zanzibar.
MAIN CENTRES
Dar es Salaam: Known by locals as ‘Dar’, this cosmopolitan
city is Tanzania’s main port and commercial, industrial and
executive capital, as well as the hub of the entire East African
region. It has 2 497 940 inhabitants, according to the 2002
Census, although 2010 estimates put the population at around
three million. Most government offices are based here, as are
diplomatic missions and non-governmental organisations.
Founded in 1862 by Sultan Seyyid Majid, Dar es Salaam
became the centre of administration under German, and later
British, rule. Today modern high-rises jostle with mosques,
temples and colonial architecture, such as the White Father’s
House and St Joseph’s Cathedral. Sights worth seeing include
the Botanical Gardens, National Museum and open-air Village
Museum, as well as the Kariakoo Market, Mwenge crafts
market, Kivukoni Fish Market, city centre and waterfront.
Dodoma: Centrally situated on the eastern edge of the
southern highlands, Dodoma is the country’s official capital
and the seat of the legislature, although most government
institutions are based in Dar es Salaam, some 300 kilometres
to the east. Much smaller and less developed than Dar, with
a population of around 155 000 (2003 est.), the town is at the
centre of Tanzania’s wine industry. In recent times, the town’s
economic base has declined in favour of the coastal city, but
in the early days of independence there was a popular political
lobby to move the entire government here.
Arusha: Built in the early 1900s by the German colonial
government, this once quiet agricultural backwater is currently
Tanzania’s second-largest city and among its most prosperous
centres. Arusha is situated in the northern highlands among the
foothills of Tanzania’s second-highest mountain, the imposing
Mount Meru with its impressive crater, and these rich volcanic
soils produce abundant crops of wheat, coffee, flowers and
pyrethrum. Known as the ‘Geneva of Africa’, Arusha is a focal
point for international relations and diplomacy, being the site of
the International Criminal Tribunal for Rwanda and the African
Court on Human and Peoples’ Rights. Scheduled for completion
in 2011, the new East African Community (EAC) headquarters
is being built next to the Arusha International Conference
Centre, the present location of the EAC Secretariat.
Mbeya: Located in the southern highlands, the agricultural
centre of Mbeya is known for its pleasant climate and setting.
Mbeya was founded in the 1930s during Tanzania’s gold rush,
and the surrounding area has rich gold fields which continue
to provide a lucrative source of income as well as attracting
substantial international investment. Its close proximity to
the Zambian border, in addition to its position on the Great
North Road and the TAZARA railway line, makes the town an
important link in the road and rail routes between Tanzania,
Zambia and Malawi.
Mwanza: Tanzania’s fourth-largest city, the port of Mwanza is
located on the south-eastern shore of Lake Victoria. Bordering
Uganda to the northwest and Kenya to the northeast, this
prosperous and busy city is a crucial transit point in the trade
and transport routes between Tanzania and her northern
neighbours. The land around Mwanza consists primarily of tea,
cotton and coffee plantations, and large volumes of cash crops
pass though here on their way to market.
Morogoro: Situated in the southern highlands of Tanzania at
the base of the Uluguru Mountains, the agricultural centre of
Morogoro has a population of 206 868 (2002 census) and is
home to the Sokoine University of Agriculture. Good rainfall
levels and relatively cool temperatures make the area ideal
for the production of sisal, sugar cane, rice and tropical fruits.
The town has also produced some of the country’s best known
musicians, such as Salim Abdullah, founder of the Cuban
Marimba jazz band, and Mbaraka Mwinshehe.
7 Celebrating 50 Years of Independence
Zanzibar Town: The largest urban centre on Zanzibar, this
port town lies along the island’s main waterfront. The Arabian-
style old quarter, also known as Stone Town, is full of shops,
bazaars, mosques and palaces, with many buildings dating
back to the era of the slave trade. Top attractions include the
waterfront market of Forodhani Gardens, as well as the House
of Wonders and Palace Museum. Day-long spice tours to
working plantations offer visitors the chance to observe the
cultivation of cloves, vanilla, nutmeg, cinnamon, and other
spices that have made the island famous.
Tanga: The country’s chief seaport after Dar es Salaam, the
industrial, trading and export-import centre of Tanga serves as
a link between northern Tanzania and the Indian Ocean trade
routes. In the older sections of town, remnants of colonial and
Arabian architecture point to the town’s past importance in the
ivory and slave trade as well as a history of German occupation.
Moshi: At the heart of Tanzania’s coffee-producing region,
the lovely town of Moshi lies amid vast coffee plantations at
the foot of Mount Kilimanjaro. While its coffee plantations
and international auctions are well worth seeing, Moshi is
most frequently used as a base from which to climb Mount
Kilimanjaro, the continent’s highest mountain. Other features
of interest here include the economically lucrative sugar
plantations and various cultural tourism programmes in the
nearby villages.
Kigoma: The capital of western Tanzania, and Lake
Tanganyika’s busiest port, Kigoma is a significant centre for
foreign trade as well as being the main arrival point for refugees
coming from conflict-beset countries in central Africa. It is also
the final stop on the Central Line railway, built in the early 20th
century to transport agricultural produce from the hinterland to
the seaport of Dar es Salaam.
Tabora: Located in the hinterland of western Tanzania, Tabora
was once a focal point in the slave and ivory trade, when it
served as a stopover for caravans from Lake Tanganyika and
Central Africa en route to the coastal town of Bagamoyo. The
town was also a well-known mission station during the 19th
century, being visited by both Stanley and Livingstone. Tabora
continued to flourish under German rule, when it became one of
the most busy and prosperous centres in East Africa.
Musoma: Lying on the shores of Lake Victoria near the Kenyan
border, the vibrant port of Musoma with its colourful market is
also the site of the Mwalimu Julius K Nyerere Museum, which
houses the late president’s memorabilia as well as featuring
exhibits documenting the rise of nationalism, the independence
movement and the early history of Tanzania.
Iringa: Located in the southern highlands of Tanzania, near the
centres of Dodoma and Morogoro, Iringa is a quiet yet pleasant
town primarily involved in regional agriculture and production.
Once a centre of colonial administration under German
occupation, the town was also the site of several battles during
the First and Second World Wars. Today, Iringa’s market offers
a colourful scene of traditional African culture, and is a popular
stop for visitors to Ruaha National Park.
Trade & Investment

Having weathered the storm

of the global economic
crisis that hit the world in
2008, Tanzania is beginning
to reap the benefits of the
economic recovery. This
can be seen in increasing
international trade as well
as an ever greater number
of investment applications
in a variety of economic
areas.

One of the principal ways in which the economic crisis affected
growth was in the area of trade, particularly tourism, export
crops, regional manufacturing exports and lower capital inflows
in the form of Foreign Direct Investment (FDI). In 2009, the
volume of world trade declined by 10.7 percent, compared to
an increase of 2.8 percent in 2008, as a result of lower demand
for merchandise exports in developed countries. At the same
time, African exports (excluding South Africa), contracted by 33
percent following growth of 29 percent in 2008.
Notwithstanding the setbacks brought about by the global
economic downturn, Tanzania has continued to focus on
reducing the cost of doing business through programmes under
Business Environment Strengthening for Tanzania (BEST),
Business and Property Formalisation (BPF) and Tanzania
National Business Council. Furthermore, development and
expansion of Export Processing Zones (EPZs) and Special
Economic Zones (SEZs), implementation of the SME policy and
the Tanzania Trade Integrated Strategy (TTIS) are supporting
expanded trade and investment.
Going forward, growth in the Tanzanian economy is being
driven by the further recovery of the global economy, with
improved demand for exports and increases in domestic
economic activities fostered by the implementation of
programmes such as Kilimo Kwanza in the agricultural sector.
This has seen the economy rebounding to around 7 percent
growth in 2010, with a projected rise to 7.8 percent by 2013.
Export recovery in 2010
Tanzania’s export market recovered markedly in 2010, with the
value of goods and services exported amounting to
US$ 5 827.2 million – 21.9 percent higher than the previous
year. The improvement was largely due to a significant increase
in the export of gold and manufactured goods as well as travel
receipts.
In the year ending December 2010, the value of goods exported
rose to US$ 3 687.4 million, compared to US$ 2 925.8 million
recorded during the corresponding period a year earlier. Gold
continued to dominate, accounting for 39.8 percent of total
goods exported, followed by manufactured goods at 26.1
percent.
8
Traditional exports amounted to US$ 558.9 million, being 16.5
percent higher than the value recorded the previous year due to
increases in both export volumes and unit prices of tobacco and
cashew nuts. At the same time, non-traditional exports of
US$ 3 128.5 million were recorded in 2010 compared with
US$ 2 466.1 million in 2009, on the back of a substantial
increase in the export value of gold and manufactured goods.
THE INVESTMENT CLIMATE
Characterised by peace and stability, this multiparty democracy
promotes good governance and the rule of law, and has
implemented a series of political, economic and administrative
reforms in the past two decades in order to encourage private
sector investment and development.
There is no restriction on foreign exchange and the government
has lent its support to an open investment regime, mobilisation
of private capital initiatives and further liberalisation of the
financial sector in line with World Bank recommendations.
Investments on the Dar es Salaam Stock Exchange (DSE) are
open to foreign investment, capped at 60 percent.
Investments in Tanzania are guaranteed against nationalisation
and expropriation, and the country is a signatory to several
multilateral and bilateral agreements on the protection
and promotion of foreign investment. It is a member of the
Multilateral Investment Guarantee Agency (MIGA) as well as
the International Centre for Settlement of Investment Disputes
(ICSID).
Tanzania has a sizeable domestic and regional market.
Bordering the Indian Ocean, it is well positioned geographically
to exploit trade links with its land-locked neighbours and the
international market. Development corridors include Mtwara,
Central, Tanga and Dar es Salaam, which serve to bolster the
country’s economy and streamline inter-regional trade.
Improvements to transport networks are a top priority, and
private sector participation in infrastructure projects is being
facilitated through the Public-Private Partnership Policy (2009)
and Public-Private Partnership Act (2010).
BACKGROUND
The Tanzania Trade Development Authority (TanTrade) was
established by Tanzania Trade Development Authority Act No. 4 of
2009. Its establishment followed a repeal of the Act of Parliament
No. 5 of 1978 that established the Board of External Trade (BET)
and Act of Parliament No. 15 of 1973 that established the Board
of Internal Trade (BIT).
VISION
To become a world-class focal point centrally positioned to support
national economic excellence through trade development.
MISSION
To enhance Tanzania’s economic performance through
development and promotion of goods, services and ideas both in
the local and foreign markets.
TanTrade’s MAIN ACTIVITIES
1. Market Development Activities
• Conducting market and product surveys to ascertain
demand for Tanzania’s products through Collecting, Analyzing,
Organizing and Disseminating Trade Information
• Enhance quality management of goods and services
• Enhance production capacities to cope with market demands
• Participating in Regional and Multilateral Trade arrangements
- for marked access initiatives
• Organising Buyers/Seller Meetings
• Pursuing integrated export promotion programmes
2. Product Development Activities
• Product researches and re-engineering
• Identify potential sectors, diagnose and prepare sectoral
strategies
• Initiate programmes, stimulate trade and sectoral growth
• Conducting product development/adaptation programme
through pilot projects
• Improving products’ market performance through designs,
multiple uses
• Conducting product packaging and labelling development
programmes
• Provision to the general public, of standard requirements,
regulations, prices trends and other market information
requirements
3. Trade Information Function
• Hosting of the Trade Point Portal (http://www.tantrade.or.tz)
• Managing Trade Information Centre and WTO Reference
Centre
• Maintaining membership with clients through Business
Services Bureau
• Publication of Trade Currents Journals, Educative Brochures,
etc.
• Market/Products Report Dissemination seminars
• Coordination of virtual exhibitions
• Dissemination of online Electronic Trading Opportunity via
Trade Point Portal
9 Celebrating 50 Years of Independence
• Participation in efforts aimed at developing e-commerce in
Tanzania
• Establish Trade Information Dissemination Centres
• Link Tanzania Diplomatic Missions Abroad and Foreign Trade
Centre
4. SME’s Development Program
• Conducting Capacity Building Programmes for different
categories of importers and potential exporters on trade
related subjects hands on training to SME’s through;
- TanTrade Export Readiness Programme
- Train for Trade for SME’s in Southern Africa
- Specialised training with the support of CBI
• Training of trainers/consultants
• Training of general public on trade related issues
• Conducting export quality management programmes
5. Trade Policy and Facilitation
• Trade related policy analysis
• Provide advisory services to the Government
• Initiate and sustain policy advocacy to stimulate domestic and
international trade
• Participation in Business Environment Strengthening
Programme for Tanzania
• Participation in the formulation of various trade related policies
• Analysis of national export performances
• Participation in review programmes to streamline export
procedures and documentation
• Participation in the private/public sector partnership
development programmes (CSR)
6. Development and integration of the internal trade
• Review and align the domestic market system within the
international standards
• Work with collaborators to develop market centres’
infrastructure for product outlets
• Work with collaborators in the supply side to improve designs,
varieties of products to meet market demands
• Establishment of trade dissemination centres (TeleCentres)
• Conduct capacity building programmes in relation to product
development and adaptation
• Initiate and manage Tanzania brands for promotion
• Improve and strengthen local marketing systems
7. Trade Promotion
• Coordinating Tanzania’s participation in overseas trade fairs
and exhibitions
• Coordinating and organizing - incoming and outgoing trade
missions
• Organizing the Dar es Salaam International Trade Fair,
Sectoral Exhibitions and the yearly Uhuru Festival
• Coordinating Tanzania’s participation in overseas trade fairs
and exhibitions
• Develop and support domestic and foreign market penetration
through local trade fairs, Uhuru Festival, expos, sectoral
exhibitions and trade missions
The country is rich with natural resource potential, from
minerals such as gold, iron and coal to good arable land
for growing products for export or domestic consumption,
which is paving the way for agro-processing and agro-
business. Tourism is another priority, with investment
sought in areas such as the development of new hotels.
ENABLING INSTITUTIONS
Replacing the boards of internal and external trade, the
Tanzania Trade Development Authority (TanTrade) was
established by the Tanzania Trade Development Authority
Act No. 4 of 2009. TanTrade is involved in implementing
the National Trade Policy, the National Export Development
Strategy, the Trade Integration Strategy and the Agricultural
Marketing Policy. Services offered include: research and
development; branding and promotion of Tanzania’s goods
and services; capacity building and SME development;
advisory services on business competitiveness; product and
market development; regulation of trade fairs; trade policy and
facilitation; and trade information services.
Established by the Tanzanian Investment Act of 1997, the
Tanzania Investment Centre (TIC) (www.tic.co.tz) is the
main agency for promoting, coordinating, encouraging and
facilitating investment in Tanzania. The TIC was named the
Best Investment Promotion Agency in the World by the World
Association of Investment Promotion Agencies (WAIPA) in 2007
and in 2008 won the Innovative Management Award, with its
CEO elected Vice President of WAIPA.
The centre is actively involved in advising investors on the
correct procedures for setting up businesses in Tanzania,
providing joint venture opportunities between local and foreign
investors and also acting as a consultant to government on
investment-related issues. A one-stop facility for investors, the
TIC also consists of immigration officers, an Assistant Registrar
of Companies and Licensing, Land, Labour and Tanzania
Revenue Authority liaison officers.
TIC expects to receive 750 investment projects worth
US$ 3 billion in 2011, up from 570 projects worth US$ 2.3 billion
in 2009 and 610 projects worth US$ 2.5 billion in 2010. While
the manufacturing sector received more investment than any
other sector in 2010, it is expected to be overtaken by tourism
and construction in 2011. It is projected that over 80 000 jobs
will be created from 750 projects in 2011, up from 57 000 in
2009 and 70 000 in 2010.
The Export Processing Zones Authority (EPZA) is an
autonomous government agency established under section
12 of the EPZ (Amendments) Act of 2006. EPZA operates
under the Ministry of Industry, Trade and Marketing, promoting
investments in economic zones, in particular Export Processing
Zones (EPZ) and Special Economic Zones (SEZ). Functioning
as a one-stop shop for all prospective and existing investors,
the EPZA is tasked with:
• The development of EPZ/SEZ infrastructure
• Provision of business services to EPZ/SEZ investors
• The provision of EPZ/SEZ licenses
The Zanzibar Investment Promotion Agency (ZIPA) and the
Zanzibar Free Economic Zones Authority (ZAFREZA) provide
roughly equivalent incentives to those offered by the Mainland’s
10
policies, and are discussed in greater detail in the chapter on
Zanzibar.
INVESTMENT
There are a number of opportunities for Foreign Direct
Investment (FDI), particularly in areas such as agriculture,
tourism and manufacturing, with Tanzania continuing to attract
the highest inflows of FDI in the East African region – an annual
average of US$ 554.1 million between 2004 and 2009.
Tanzania’s receipt of FDI declined from US$ 744.0 million in
2008 to US$ 650.0 million in 2009, equivalent to a decrease
of 14.5 percent. Much of this may be attributed to the adverse
impact of the global financial crisis, which led to postponement
of foreign investments in Tanzania.
Investment projects
In 2009, a total of 572 projects worth TZS 2 970 730.10 million
were registered with employment potential of 56 615 people
compared to 871 projects worth TZS 7 991 481 million with
employment potential of 109 521 people in 2008. Out of total
projects registered in 2009, 407 projects were new while 165
were for rehabilitation and expansion. Projects owned by local
investors numbered 284, while 149 were owned by foreign
investors and there were 139 joint venture projects.
During the same year manufacturing activities attracted the
most investors, with 183 projects worth TZS 654 472 million
and employment potential of 14 143 people. Other economic
activities which attracted investors included tourism (151
projects worth TZS 519 259 million), commercial buildings (81
projects worth TZS 922 467 million), transport (61 projects
worth TZS 303 849 million) and agriculture (27 projects worth
TZS 45 626.10 million), among others.
Incentives for investors
Investor incentives are provided for under the Tanzania
Investment Act, Export Processing Zones (EPZ) Act, Mining Act
and Special Economic Zones (SEZ) Act. Non-fiscal and fiscal
incentives and investment guarantees include:
• Zero percent import duty and VAT exemption on capital goods
and import duty back scheme.
• Refund of duty charged on imports used for producing goods
for export and goods sold to foreign institutions like the UN
and its agencies operating in Tanzania.
• The recognition of private property and protection against any
non-commercial risks.
• Immigration quota of up to five people.
• Repatriation of all profits, gains and dividends from investment
after tax.
• Favourable investment allowances and deductions.
Established by the EPZ Act of 2002, Export Processing Zones
attract investments in export-oriented industries, including
agribusiness, textiles, electronics and Spatial Development
Initiatives (SDIs). EPZ Investors may choose to operate in one
of Tanzania’s industrial parks, sharing common infrastructure
facilities and utilities, or as a stand-alone operation in a
single factory unit outside the industrial parks, with the EPZA
facilitating declarations for such areas.
Licensed EPZ investors enjoy fiscal incentives coupled with
simplified operating procedures and superior infrastructure for
11 Celebrating 50 Years of Independence
faster set-up and smoother operations. Additionally, the EPZA
provides facilitation and after-care service to new and existing
investors. Since inception, the EPZA has made some significant
achievements, such as successfully exporting goods worth
more than TZS 300 billion as well as creating thousands of jobs.
Further information on export processing zones may be found in
the ‘Business & Finance’ chapter.
Established in 2006 as strategy to achieve the Mini-Tiger Plan
2020, Special Economic Zones (SEZs) act as a magnet for
investment in specially designated areas by providing quality
infrastructure, complemented by an attractive fiscal package,
business support services, cluster formation and minimal
regulations. The SEZ programme covers a wider range of
allowable activities than those available in EPZs.
INVESTMENT OPPORTUNITIES
With only around a quarter of Tanzania’s 44 million hectares of
arable agricultural land and 60 million hectares of land suitable
for livestock development currently being utilised, commercial
farming & ranching hold huge potential.
Tourism investment opportunities comprise hotels, conference
tourism, beach tourism, historical sites, amusement parks,
leisure parks, specialised cuisine restaurants, golf courses, air
and land transport, wildlife farming and trading of live animals.
Tanzania possesses a comprehensive geological and minerals
database, and there are opportunities in mining as well as
mineral processing in the form of gemstone cutting and
polishing and jewellery.
Potential exists in horticulture & floriculture as well as agro-
processing, which covers the areas of food, garments and
apparel, fishing and fish processing.
Services sector investment includes ICT, education, health and
fashion.
Energy investment opportunities are available in power
generation from coal, natural gas, hydro and solar power.
Investment is also welcomes in economic infrastructure,
and comprises road construction, bridges, real estate and
telecommunications.
Other opportunities exist in timber and wood processing,
forestry and furniture, as well as manufacturing industries and
export processing zones.
TRADE AGREEMENTS
Tanzania’s geographical advantage and preferential trade
agreements, which allow products to enter most of the world’s
richer economies free of any customs duties and with limited
quota restrictions, have created vast market opportunities for
investors. The country is signatory to several international trade
arrangements, including the African Growth and Opportunity
Act (AGOA), The European Union’s Everything But Arms (EBA)
programme, Japan’s Generalised System of Preferences and
Canada’s PACT.
AGOA facilitates both higher levels of trade and investment in
support of positive economic and political developments in the
12
region and encourages reciprocal trade and investment. In force
until September 2015, AGOA covers 6500 products, including
precious metals, minerals, cashewnuts, cotton, garments,
handcraft, coffee, vegetables and fruits, and allows almost all
Tanzanian textiles and apparel to enter the US duty and quota
free, and under relaxed Rules of Origin.
Tanzanian exports under AGOA saw an increase in value
to US$ 42.2 million in 2009 from US$ 40.3 million in 2008.
Qualifying articles include:
• Textiles and textile articles produced entirely in Tanzania
• Apparel made of US yarns/fabrics and apparel made of yarns/
fabrics not produced in commercial quantities in the US
• Clothes made of sub-Saharan African yarns/fabrics (subject to
limited quotas)
• Eligible hand-loomed, handmade or ‘folklore’ articles and
‘ethnic’ printed fabrics
The special AGOA apparel rule allows clothing made in
Tanzania from third country yarns and fabrics to enter the US
free of customs duties (subject to limited quota) until Sep 2012.
Regionally, Tanzania belongs to the East African Community
(EAC), along with other founder members Kenya and Uganda,
and Rwanda and Burundi, which joined the EAC in 2007. With
its headquarters in Arusha, the group comprises a market of
over 133 million people with a combined GDP of US$ 74 billion.
Between 2005 and 2008, intra-EAC trade increased from
US$ 1 847.3 million to US$ 2 715.4 million.
Following 18 months of negotiations between the five partner
states, the EAC Common Market Protocol, which provides
for the free movement of labour, goods, services, capital and
the right of establishment, came into force on 1 July 2010.
Establishment of the Common Market is to be progressive and
in accordance with schedules approved by the EAC Council
of Ministers. Further efforts to widen and deepen integration
should see the establishment of a Monetary Union in 2012.
Tanzania is also a member of the Southern African
Development Community (SADC), a grouping of 15 countries
with a combined population of some 257.7 million and a
cumulative GDP of US $471.1 billion. Other members of SADC
include South Africa, Zimbabwe, Zambia, Malawi, Madagascar,
Botswana, Mauritius, Seychelles, Angola, Democratic
Republic of Congo (DRC), Namibia, Lesotho, Swaziland and
Mozambique. The principal aim of SADC is to coordinate and
harmonise the socioeconomic policies and plans of its member
states in order to ensure sustainable economic development
and growth in the southern African region.
SADC launched a Free Trade Area (FTA) in 2008 involving zero
tariff levels for 85 percent of all goods traded among member
states. Liberalisation of tariffs on the remaining 15 percent
of goods is expected to be completed in 2012, and is to be
followed by a Customs Union and Common Market.
In an effort to scale up cooperation and expansion of trade, the
Common Market for Eastern and Southern Africa (COMESA),
SADC and the EAC are in the process of establishing the
Tripartite Free Trade Area, comprising a population of some
700 million people. This will be followed by a Customs Union.
Vision Statement
An effective apex private sector
organization, providing a focal
point for the articulation of
private sector-led approaches to
Tanzania’s economic and social
development.
Mission Statement
To promote private-sector-
led social and economic
development in Tanzania by
providing member organizations
with services they value, by
understanding and representing
their common interests, and by
engaging in effective advocacy
with the Government.
The Tanzania Private Sector
Foundation (TPSF) was established
on 4th November 1998 in order to
promote private sector-led social
and economic development in
Tanzania.
Since its inception TPSF has served
as a focal point for private sector
advocacy with Government on behalf
of the private sector with a core
activity of impacting and influencing
policies that relate to the private
sector. Through this advocacy
programme TPSF seeks to raise
issues, participate in and influence
Government policy formulation
and implementation in favour of
the private sector. The programme
is organized around the following
themes:
i. Policy Research - to conduct
independent research on policy
matters affecting the private sector
and engage with the Government
during the policy formulation and
implementation processes to ensure
that the private sector input is taken
on board
ii. Private Public Sector Dialogue
covering policy and advocacy/
lobbying initiatives in crosscutting
issues such as taxation and
infrastructure and sector-specific
issues such as trade, tourism,
agriculture, etc. In the latter set of
issues TPSF seeks to add value to and
support the work of its constituent
members.
iii. The National Business Forum
- a platform for development
and implementation of the policy
impact agenda. This is the arena
where researched policy issues are
raised and an impact assessment
made of the impact of the dialogue
13
and advocacy efforts with the
Government.
MEMBERSHIP SERVICES
TPSF is a membership organization
and offers the following services to
its members:
i. Access to services, such as
technical assistance and capacity
building, that improve their position
within their own constituencies;
ii. Mechanisms for effective
involvement of TPSF and its
members in the analysis and
articulation of policy and advocacy
issues for engagement with the
Government;
iii. Integration of private sector
development issues into sectoral,
regional and national development
programmes;
iv. Results measured in terms
of increased support from TPSF
and enhanced attention by the
Government;
v. Assurance by TPSF of fairness,
transparency and participatory
approaches to members in the
Foundation’s governance structures;
vi. Access to information on private
sector development policies,
strategies and activities;
vii. Access to TPSF professional
advice and technical assistance to
members;
viii. Provide a channel and
platform for participation in
policy formation; and
ix. Coordination and
articulation of strategies to
meet the collective needs
of various private sector
constituencies.
For further information on
TPSF contact us on:
Private Sector House
Plot 1288, Mwaya Road
Masaki, Msasani Peninsula
Tel: +255 22 260 1913 / 1938
Fax: +255 22 260 2368
E-mail: info@tpsftz.org
Website: www.tpsftz.org
Celebrating 50 Years of Independence
Business & Finance
Improvements in Tanzania’s
business environment have
seen the simplification
and speeding up of the
investment process and
procedures involved in
setting up a business, while
the substantial increase in
commercial bank credit to
the private sector reflects
government’s efforts to
promote private sector
growth and a continued
focus on empowerment
initiatives.
BUSINESS & THE PRIVATE SECTOR
The Business Environment Strengthening for Tanzania (BEST)
Programme was set up in 2003 to reduce the costs and delays
involved in starting and operating a business by removing
various legal and regulatory obstacles. In addition to improved
business licensing, other areas that have benefited include
land regulation and labour law reforms. The Business Activities
Registration Act (BARA) of 2008 should also help to cut down
on red tape.
The Tanzanian government began implementing the Private
Sector Competitiveness Project (PSCP) in 2007 in order to
boost competitiveness, particularly among Micro, Small and
Medium Enterprises (MSMEs), by reducing the cost of doing
business while building capacity among domestic firms and
facilitating their participation in international markets.
The Property and Business Formalisation Programme (PBFP)
aims to facilitate the transformation of property and business
in the informal sector into legally held and formally operated
entities in the economy, thus helping property owners to use
their assets as collateral in accessing capital.
A number of institutions and forums have been put in place
to ensure broader participation in decision making, with input
from the private sector, trade unions, professional associations,
media, government departments and other representatives from
civil society. Existing initiatives include the Tanzania National
Business Council (TNBC), Investors’ Roundtables, Special
Reform Task Forces, investment seminars, board membership
in the Tanzania Investment Centre (TIC) and other government
agencies.
The TNBC provides a forum for public-private sector dialogue
with a view to reaching consensus and mutual understanding
on strategic issues related to the investment process and
business environment in Tanzania. The President of Tanzania
chairs local and international roundtables, as well as the Chief
Executive Officers’ Roundtable where the President meets
private sector representatives to discuss ways of improving the
country’s business competitiveness.
14
The Tanzania Private Sector Foundation (TPSF) was
established in 1998 to promote private sector led social and
economic development in Tanzania, serving as a focal point for
private sector advocacy, and lobbying on behalf of the private
sector.
Privatisation
The privatisation of formerly state-owned industries began with
the Parastatal Sector Reform Policy of 1992, with the purpose
of either selling off or restructuring parastatals, which had for
the most part been a major financial burden on government.
The Privatisation Programme was launched the same year, with
the intention of:
• Enhancing the efficiency of state enterprises and their
contribution to the economy
• Reducing the financial burden of enterprises on the
government budget
• Expanding the role of the private sector to enable government
to concentrate on maintaining law and order and the provision
of essential public services
• Encouraging wider participation by citizens in the ownership
and management of enterprises
The former Presidential Parastatal Sector Reform Commission
(PSRC) began the privatisation process with about 400 public
enterprises. As at 31 December, 2007, there remained 37
enterprises which were at various stages of the divestiture
process. Consolidated Holding Corporation (CHC) is
responsible for all the remaining tasks of the PSRC.
CHC has continued with the remaining divestiture work. This
included the preparatory work for the Initial Public Offering
of a 21 percent stake in the National Microfinance Bank
(NMB) Limited. The corporation has also been involved in the
settlement of labour-related issues relating to Tanzania Railway
Limited and the National Insurance Corporation.
The success of the privatisation programme has been evident
in the marked improvement in productivity and value added to
the economy, including job creation and efficiency in areas such
as telecommunications. Privatisation has also enabled more
than 10 000 Tanzanians to acquire shares in these companies
through the stock exchange.
15 Celebrating 50 Years of Independence
Currently, measures are being taken to strengthen the
management of public corporations and institutions with a view
to improving their efficiency, productivity and revenues, and
thereby reduce their dependency on government subsidies.
In April 2010, parliament passed amendments to the Public
Enterprises Act aimed at empowering the Treasury Registrar’s
Office to become an autonomous authority with the mandate
to oversee management and operations of public corporations
and institutions. In line with these amendments, the structure of
the Treasury Registrar’s Office is being reviewed. Government
will also evaluate public corporations and institutions in order to
identify areas that need to be addressed.
EXPORT PROCESSING ZONES
Tanzania’s Export Processing Zones (EPZ) and Special
Economic Zones (SEZ) provide for the establishment of export
oriented investments within the designated zones which enjoy
physical and procedural incentives and lower operational
costs, thereby enabling both local and foreign investors to be
internationally competitive. Procedural incentives comprise
being able to operate under a single license issued by the EPZ
Authority, on-site customs inspection in the EPZs, One-Stop
Service Centre for investors, facilitation and after-care services,
and rapid project approval.
EPZ enterprises must be situated in specific areas that are
treated as being outside the customs territory for VAT, customs
tariff and exchange control purposes. Investors may choose
from two different set-ups:
• EPZ Industrial Parks, where investors locate their operations
within the designated zone together with other investors
and share common infrastructure facilities and utilities. There
are currently six such industrial parks in Tanzania – Benjamin
William Mkapa SEZ, Hifadhi EPZ, Millennium Business Park,
Kisongo EPZ, Kamal Industrial Park and Global Industrial
Park.
• The EPZ Stand-Alone, where single factory units are set up
outside the industrial parks, with the EPZ Authority facilitating
declarations for these areas.
In January 2011, eight new companies were granted certificates
by the Tanzania Export Processing Zones Authority (EPZA).
These are the latest of a total of 85 companies that have been
registered to work under the EPZA. Those companies already
registered can be divided into two categories – infrastructure
developers and manufacturers – with a total of 42 companies
making up the infrastructure developer’s category and 43 the
manufacturer’s category.
In addition, a number of Indian companies have decided to
increase their presence in Tanzania with an investment of
more than US$ 250 million and the construction of factories
scheduled to begin in 2011.
ECONOMIC EMPOWERMENT
Government continues to implement the National Economic
Empowerment Policy of 2004. The empowerment policy
aims to create a favourable environment for investment and
economic growth; improve the tax system and its administration;
review laws, rules and regulations to ensure that they meet
the requirements of a market oriented economy; and ease the
availability of capital in order to enable more Tanzanians to
access loans.
16
Current initiatives focus on the establishment and strengthening
of Savings and Credit Cooperative Societies (SACCOS) in
order to increase opportunities for entrepreneurs, particularly
women and the youth, to access credit from financial institutions
and government programmes. The emphasis is also on training
as a means of enhancing entrepreneurial skills.
Over the past few years, the Economic Empowerment Fund
has providing a total of TZS 31.5 billion to CRDB Bank and
National Microfinance Bank Limited (NMB) for on-lending to
small and medium-sized entrepreneurs. By December 2009, a
total of 66 559 entrepreneurs had benefited from loans provided
by the fund, comprising 42 851 men and 23 708 women.
The Small Entrepreneurs Loan Facility (SELF) project
continues to provide microfinance services to small
entrepreneurs, with loans to beneficiaries increasing by 348
percent between 2005 and March 2010, and the number of
microfinance institutions benefiting from such loans rising from
175 to 247 over the same period. Correspondingly, the number
of beneficiaries increased from 20 526 in 2005 to 69 795 in
2010, 58 percent of whom were women.
Established in December 2007 with start-up capital of TZS 400
million, the Mwananchi Empowerment Fund has been another
important avenue for developing Tanzania’s entrepreneurs. By
December 2009, loans amounting to TZS 4.2 billion had
been disbursed to 4 437 entrepreneurs: 1 341 women and
3 096 men.
The Export Credit Guarantee Scheme and the Small and
Medium Entrepreneurs Credit Guarantee Scheme increased
their capital from TZS 500 million in September 2005 to
TZS 5 751 million in March 2010. This strengthened capacity
of the two schemes to provide more loans to entrepreneurs
through the designated banks.
In addition, government recognises the important role played
by non-governmental organisations (NGOs) such as FINCA,
Presidential Trust Fund (PTF), PRIDE, VICOBA, etc, in the
provision of microfinance services.
BANKING & FINANCIAL SERVICES
The financial sector in Tanzania has undergone substantial
structural change since it was liberalised in 1991 and opened to
private and foreign capital. The system is dominated by banking
institutions, which account for about 75 percent of the total
assets, followed by pension funds, whose assets account for
about 21 percent, the insurance sector with 2.0 percent of total
assets, and the remaining financial intermediaries, which hold
about 2 percent.
From a state monopoly led by the Bank of Tanzania (BoT) and
the National Bank of Commerce (NBC) in the early 1990s, the
banking sector had by June 2010 grown to accommodate 41
banks, 19 of which were foreign-owned. Over the same period,
the total assets of banks rose from just 6 percent of GDP to
more than 40 percent of GDP. Some 57 percent of total assets
are held by four large banks.
The combination of the strength of the country’s supervisory
abilities and limited links with global financial markets have
helped to keep Tanzania’s financial sector sound and robust
17 Celebrating 50 Years of Independence
while the world went through the most severe financial crisis
of recent times. The banking system has remained adequately
capitalised against any potential financial risk and the ratio
of non-performing loans to total loans has remained within
prudential limits. Furthermore, it has managed to keep enough
liquidity to operate smoothly and cover liabilities without
recourse to the central bank.
The strong economic performance and stability that
Tanzania has enjoyed over the past decade owes much to
the reforms that have taken place in the financial sector.
With some policy intervention, private sector growth has
been kept afloat, albeit at a slower pace than its pre-crisis
performance. Commercial banks’ credit to selected major
economic activities sustained positive growth rates during the
year ending December 2010, with most being held in personal
loans followed by trade activities, manufacturing and agriculture.
Credit to the private sector grew by 20.0 percent in this period,
higher than the 9.6 percent recorded in the same period a year
earlier. This increase reflects the banks’ recovering confidence
in the economy following easing of the global financial crisis.
In 2010, a window for lending to the agriculture sector was
opened at the Tanzania Investment Bank, and is being used
to increase credit to agriculture. The recent appointment of a
Pension Funds Regulator, who will work in close collaboration
with other regulators in the financial sector, is expected to
reinforce the stability and resilience of the industry.
Success has been achieved in sustaining single digit inflation
for most of the past decade, and the economy has shown
remarkable resilience to shocks. Likewise, the exchange rate
of the Tanzanian Shilling has remained stable, with market-
determined interest rates being fairly stable as well.
Nevertheless, access to financial services in Tanzania is
still very low, even by sub-Saharan African standards. The
FinScope Survey conducted in 2009 found that only 12.4
percent of the adult population use banks and other formal
financial institutions. Efforts to improve financial literacy in order
to enhance financial inclusion and consumer protection are thus
part of the second generation of financial sector reforms.
Furthermore, commercial banks’ lending rates are still too
high. Although the spread between lending and deposits
rates has been narrowing, it needs to be reduced further. The
establishment of a credit reference bureau should help to
reduce credit risk, increase the number of bank borrowers and
reduce lending rates.
The Bank of Tanzania
The Bank of Tanzania (BoT) was established by the Bank of
Tanzania Act (1965), which was amended in 1995 and later in
2006 to ensure conformance with ongoing economic reforms.
As the country’s central bank, BoT formulates, implements
and is responsible for monetary policy, including exchange
rate policy. It issues currency and regulates and supervises
banks and financial institutions, including mortgage financing,
development financing, lease financing, licensing and
revocation of licenses.
The National Payment System (NPS) is a vital component of
the broader financial system. BoT provides prudential oversight
18
of the system and implements measures to ensure the
resilience and modernisation of the system in line with adapted
international best practices and standards.
The Tanzania Interbank Settlement System (TISS) is a real
time gross settlement system. By virtue of the large values of
payments that are settled through the system, and its inter-
connections with participating financial institutions, TISS is
a systemically important payment system. On average, the
large-value transactions settled in real time comprise about 80
percent of the total value settled, with low-value high-volume
transactions cleared by BoT’s Electronic Clearing House and
settled in consolidated batches at specific times of the day.
The Banking and Financial Institutions Act of 2006 consolidated
laws relating to banking so as to harmonise the operations of all
financial institutions in Tanzania, foster sound banking activities
and regulate credit operations. The Act also established a Credit
Reference Bureau. The process of privatising or streamlining
the remaining government-owned banks and other financial
service providers continues.
At the end of 2010 the Central Bank of Tanzania increased
the minimum capital requirements for commercial banks
from TZS 5 billion to TZS 15 billion.
Banking services
The reorganisation of the state-owned National Bank of
Commerce (NBC) in 1997 gave rise to the following entities:
• NBC Holding Corporation (renamed Consolidated Holding
Corporation)
• NBC Limited (formerly NBC 1997 Limited)
• National Microfinance Bank (NMB) Limited
Consolidated Holding Corporation (CHC) was established
in 1997 and charged with carrying on the business of both
a holding company and an investment company in relation
to NMB and NBC Limited respectively. It has been granted
successive five-year mandates through amendments to the
NBC Act of 1997, the most recent on 30 September 2007,
which grants the corporation an extension on its mandate up
to 30 June 2011 and vests all remaining activities from Loans
and Advances Realisation Trust (LART), Air Tanzania Holding
Corporation (ATHCO) and SIMU 2000 Ltd, to CHC.
Following further privatisation in 2005, government has
reduced its share in the National Microfinance Bank (NMB) to
30 percent. NMB listed on the DSE in November 2008, and is
presently the largest bank in Tanzania, by customer base as
well as branch network, with over 139 branches located in more
than 80 percent of Tanzania’s districts.
Succeeding the former Cooperative and Rural Development
Bank (CRDB), a public institution with the majority shares held
by the Tanzanian government, CRDB Bank was re-established
on 1 July 1996 as a private commercial bank. CRDB first listed
its shares on the DSE in 2009, the same year in which it posted
a net profit of US$ 26.65 million. In 2010 the bank was awarded
a certificate of excellence for standard banking services in East
Africa by SuperBrands.
Today, CRDB Tanzania is one of the largest commercial banks
in the country, with a network of over 62 branches and more
than 200 ATMs. Following the recently adopted East African
Community (EAC) Common Market, the bank plans to open a
branch in each of the EAC member states.
By February 2011 there were a total of 29 registered
commercial banks operating in the sector. At the same time,
there were nine registered regional unit banks, which include
community and cooperative banks, and five registered financial
institutions.
As of June 2010, mobile phone payment services were
provided by two commercial banks and four mobile network
operators. In recognition of the importance of developing a
rigorous supervisory oversight for this fast-developing industry,
the Bank of Tanzania has signed an MOU with the Tanzania
Communication Regulatory Authority (TCRA), which provides
a mechanism for regulatory and supervisory coordination
between the two regulators.
Preparations were underway in early 2011 for the establishment
of a new community bank, Tanzania Machinga Bank.
Furthermore, in February 2011 Bank M Tanzania Limited
became the first local bank to issue corporate bonds on the Dar
es Salaam Stock Exchange.
Microfinance and SMEs
While multinational banks once catered only for larger
corporations, the role of Small and Medium Enterprises (SMEs)
has become increasingly important to economic growth. The
microfinance subsector services SMEs in the domestic market
as well as other sectors historically ignored by commercial
banks.
The second Small Entrepreneurs Loan Facility (SELF II)
was developed to support the country’s microfinance sector.
SELF was originally founded some ten years earlier with the
intention of providing loans for microfinance institutions (MFIs)
such as SACCOS, NGOs and community banks, that would
in turn lend money to underserved entrepreneurs in the rural
and urban areas. Government, in partnership with the African
Development Bank (ADB), has already disbursed TZS 44 billion
through the SELF II project, compared with the TZS 10 billion
that was disbursed during the initial project.
offer opportunities for diversification of investment avenues for
pension funds.
The three largest pension funds hold about 85 percent of the
sector’s total assets. The pension sector is currently undergoing
reforms which are aimed at achieving the following objectives:
• Facilitating the entry of private pension funds to the financial
system
• Establishing an effective supervisory and regulatory
framework for private pension funds
• Formulation of investment guidelines
• Instituting best practices of corporate governance in pension
funds
• Determining the level of soundness and risk management in
pension funds
So far, substantial progress has been made towards
establishing an effective regulatory framework for the sector.
The Social Security Act, which was passed by the Parliament in
June 2008, provided for the establishment of the Social Security
Regulatory Authority (SSRA), which will share supervisory
responsibilities with the Bank of Tanzania. The CEO and the
Board of SSRA have been appointed, and government is
finalising the procedures to make the SSRA operational.
The National Social Security Fund (NSSF) provides a wide
range of short and long term benefits to Tanzanians through: old
age pension; disability pension; survivors’ pension; employment
injury benefit; social health insurance benefit; maternity benefit
and funeral grants benefit.
The East and Central Africa Social Security Association
(ECAS-SA) was established in 2007 in order to create a forum
for social security institutions to network and share experiences
and expertise in social security management. It provides a
forum for fostering cooperation, assists in development and
implementation of quality and effective practices, and designs
and implements ways of improving the financial management of

With the overall goal of inclusive financial services delivery, the

SELF II project will provide capacity building to around 1 600
micro-credit institutions with a total of 820 000 beneficiaries,
compared with SELF I, which had some 70 000 beneficiaries.
Government plans to eventually convert SELF into an
autonomous corporate entity.

Pension funds and social security

A sound pension system is a powerful force in developing
capital markets and supporting the provision of long-term
finance. By end June 2010, Tanzania had six pension funds
covering formal sector employees.

Although pension coverage is mandatory for formal sector

employees, only 40 percent are currently covered. Pension
funds’ assets account for 21 percent of total assets of the
financial system, while the investment portfolios of these
pension funds are concentrated mainly in two areas:
government securities and illiquid commercial real estate. The
envisaged opening up of capital account transactions may
19 Celebrating 50 Years of Independence
social security institutions and other entities administering social
security in the sub region. The association’s strategic plan
(2009/10-2011/12) takes into account declining donor support,
the worldwide economic crisis and competition for scarce
resources.
Insurance and investment
Once monopolised by the state-owned National Insurance
Corporation (NIC), the insurance industry was substantially
liberalised with the Insurance Act of 1996. Since then, a number
of international insurance companies have set up in Tanzania.
By June 2010 the sector comprised 22 insurance companies
with total assets amounting to TZS 331.38 billion, compared
to TZS 304.26 billion recorded in June 2009, representing an
annual growth of 8.9 percent. Five companies hold about 70
percent of the overall market share in terms of assets, with the
NIC accounting for about 39 percent of the sector’s total assets.
The new Insurance Act of 2009 has seen the establishment
of the Tanzania Insurance Regulatory Authority (TIRA), which
regulates and supervises the sector, promoting best practices.
In addition, the Bank of Tanzania in collaboration with TIRA
monitors the financial health of insurance companies.
Momentum Tanzania is a trusted insurance company focusing
on meeting the healthcare and general insurance needs of
individuals and corporate houses in Tanzania, and plans
to introduce life insurance in the near future. The company
is part of Momentum Africa and First Rand Group of South
Africa, which has witnessed phenomenal growth on the African
continent, where it has a presence in 13 countries.
Momentum’s performance is underpinned by a culture of
innovation, flexibility, tenacity and growth. Its range of products
is aimed at enhancing the quality of life and well-being of its
customers, employees and communities in which it operates.
In the first year of operations, Momentum Tanzania had written
a gross premium income of TZS 8 billion and built up a strong
client base. In 2010, its second year, the company posted a
gross written premium of TZS 14 billion, thereby recording
phenomenal growth of 75 percent over the previous year.
Momentum Tanzania offers a wide range of general and health
insurance products to suit the specific requirements of diverse
clientele. General insurance products include individual and
package policies to cater to all types of casualty, property and
liability covers. Health insurance products offer a wide array of
combinations for in-patient and out-patient cover, with add-on
special benefits. The company is linked to about 300 service
providers across Tanzania, comprising hospitals, pharmacies
and clinics, to ensure that its members enjoy prompt and
personalised healthcare facilities.
Unit Trust of Tanzania (UTT) is a government entity under the
Ministry of Finance and Economic Affairs, and is responsible
for promoting a savings and investment culture in the country,
launching and managing collective investment schemes
and warehousing shares from privatised public enterprises.
Investment advantages include risk diversification as well as
benefits from economies of scale and low transaction costs.
20
TAXATION
Tax administration in Tanzania has a three-tier structure. Central
government tax is administered by the Tanzania Revenue
Authority (TRA), while local government tax administration
is undertaken by local authorities. In Zanzibar, the Zanzibar
Revenue Board administers local taxes and levies, including
VAT, while the TRA collects Union Government taxes,
comprising customs and excise duty and income tax, which are
remitted to the Zanzibar Government.
The tax base and rate structure of the Tanzanian tax system
has been rationalised and streamlined with a view to instituting
a fair, simple, equitable, efficient and taxpayer/investor-friendly
regime. The regulatory framework has been harmonised, an
incentive regime put in place and rates gradually reduced. To
attract investment, government has abolished protectionist
excises, replaced Sales Tax with VAT, and the two-tier corporate
tax with a single rate.
Tanzania’s corporate tax rate is 30 percent, and 25 percent for
companies listed on the Dar es Salaam Stock Exchange (DSE),
while VAT is chargeable on goods and services at 18 percent
on Tanzania Mainland and 20 percent in Zanzibar, and at zero
percent for exports. Withholding taxes on business and capital
incomes such as dividends, interest and royalties are also
applicable at rates ranging between 10 and 20 percent.
Changes to the Income Tax Act in the 2010/11 budget include:
• Amending section 11 of the Income Tax Act CAP 332 to
introduce ring fencing within the mining areas, thereby
ensuring that each mine is taxed separately
• Lowering the individual income tax rate from 15 percent to 14
percent for employees as a way of reducing the tax burden on
lower income earners
• Extending the application of withholding taxes on goods and
services to non-TIN holders supplying goods and services to
all taxpayers
One of the challenges to revenue collection is the existence of
a large informal sector which is not adequately integrated into
the formal economy, hence contributing minimally to domestic
revenue. Current measures being implemented to strengthen
revenue collection include:
• Strengthening systems for tax collection and, where possible,
using the banking system for tax collection
• Putting in place a strategy to improve services in the tourism
industry, in particular grading hotels in accordance with
international standards, with a view to increasing revenue
collection from fees
• Enforcing the implementation of the Finance Act that directs
parastatals and other public institutions to remit to the
Treasury surplus funds generated from their operations
• Widening the tax base by registering new tax payers and
improving the business environment to support private sector
growth
• Closely monitoring the implementation of the TRA’s Third Five
Year Corporate Plan, which has been the basis for increased
tax revenue collection
• Implementing measures to increase collection of non-tax
revenue by government ministries and departments
• Reviewing procedures for tax exemptions with a view to
strengthening controls
• Enhancing capacity building of local authorities through
allocation of adequate manpower in order to strengthen
assessment and collection of revenue
Tanzania Revenue Authority
Established in 1996, the Tanzania Revenue Authority (TRA)
is an agency of the central government responsible for
assessment and collection of taxes. The revenue collection
trend has been impressive, with annual collections increasing
from TZS 523 billion in 1996/97 to TZS 4 601 452 billion in
2009/10.
The TRA’s good performance has been made possible through
a number of initiatives, the main one being the implementation
of its three strategic corporate plans. Under the first strategic
corporate plan (1998/99-2003/04) the authority concentrated
on improving its physical infrastructure, staff capacity and skills
base.
The second corporate plan (2003/04-2007/08) introduced major
reforms in tax administration and put in place strategic revenue
collection measures. Destination inspection of goods was
introduced to facilitate quick clearance of imports and improve
customer service, and it became possible to pay duties and
taxes directly through the banking system instead of making
payments at tax offices.
In addition, a dedicated department was established for large
taxpayers, who account for some 80 percent of total tax
collected, and the departments of Income tax and Value Added
Tax were merged to form the Domestic Revenue Department,
which caters for all domestic taxes under one roof. Automation
and modernisation of systems and procedures was prioritised.
This included introduction of the ASYCUDA system under
Customs, as well as the ITAX and Computerised Motor Vehicle
Registration systems.
The third corporate plan (2008/09-2012/13) aims to consolidate
these achievements with a greater emphasis on quality service
21
to taxpayers. In this regard, TRA began in 2008 to implement
a Quality Management System based on ISO 9001: 2008
International Standards.
THE STOCK EXCHANGE
The Dar es Salaam Stock Exchange (DSE) was incorporated
in 1996 as a company limited by guarantee and became
operational in April 1998. The DSE is a non-profit making body
created to facilitate the government implementation of reforms
and to encourage wider share ownership of privatised and other
companies in Tanzania. The exchange began the process of
demutualisation in 2010.
DSE membership consists of Licensed Dealing Members
(LDMs) and Associate Members. Trading is conducted under
an Automated Trading Electronic System (DATES). Clearing
and settlement is conducted through an electronic Central
Depository System (CDS), which has been operational since
1999. With a view to integrating regional markets, discussions
are currently underway for East Africa Stock Exchange
Association (EASEA) member states to integrate their trading
and payment systems within the EAC market.
The DSE was voted ‘The Best Sustainable Stock Exchange
in Africa 2011’ by World Finance magazine.
Market trading activities are monitored by both the Capital
Markets and Securities Authority (CMSA) and DSE. Pursuant to
the provisions of the Capital Markets and Securities Act (1994),
the DSE has established a Fidelity Fund Account to be used
to compensate investors who suffer financial loss arising from
fraud, misappropriation of funds or negligence by LDMs.
Products currently being traded include:
• Equities, with 16 listed companies
Celebrating 50 Years of Independence
• Corporate Bonds
• Government Bonds
• Units Trusts
Current market developments
In the fourth quarter of 2010, market capitalisation declined
slightly from TZS 4 938 billion to TZS 4 895 billion. The all share
index started falling from the end of September 2010, after
recording a continuous rise during the previous quarter, though
it had begun to gain momentum once more by the end of the
year.
During the quarter under review, equity turnover grew by 53.6
percent when compared with the previous quarter. However,
overall turnover generated during the 12-month period ended
31 December 2010 declined by 29 percent compared with the
same period in 2009.
In the secondary equity market, foreign investors’ participation
continued to grow during the fourth quarter of 2010, accounting
for 77 percent of total turnover. In the year ending December
2010, foreign investors’ transactions contributed 22.1 percent to
total turnover.
During the 12-month period ended 31 December 2010,
government bonds with a face value of TZS 205.8 billion were
traded, which was 47.6 percent higher than bond turnover
recorded during the previous year.
22
While there were no new equities listed during the September-
December period of 2010, a total of eight treasury bonds with
different maturity dates valued at TZS 221 billion were listed,
bringing the total number of listed treasury bonds to 73 by the
end of the quarter. At the same time there were two new listings
of corporate bonds, by Standard Chartered Bank and PRIDE,
with preparations underway for listing a Bank M corporate bond
worth TZS 3 billion. A total of seven corporate bonds were listed
as at the end of the quarter, which were worth TZS 77.7 billion.
Incentives for issuers and investors
Incentives to issuers include:
• Reduced corporate tax from 30 percent to 25 percent where at
least 30 percent of the issued shares are held by the public.
• Tax deductibility of all Initial Public Offering (IPO) costs
for the purposes of income tax determination. All IPO costs
are accepted by the Tanzania Revenue Authority (TRA)
as acceptable expenses used in the generation of income
and profits, and therefore are taken into consideration when
determining profit for tax purposes.
• Withholding tax on investment income made by a Collective
Investment Scheme (CIS) is final tax. Investors in a CIS are
not charged tax on the income distributed by the CIS after the
scheme’s income taxation.
Incentives to investors comprise:
• Zero capital gains tax as opposed to 10 percent for unlisted
companies.
• Zero stamp duty on transactions executed at the DSE
compared to 6 percent for unlisted companies.
• Withholding tax of 5 percent on dividend income as opposed
to 10 percent for unlisted companies.
• Zero withholding tax on interest income from listed bonds
whose maturities are three years and above.
• Exemption from withholding tax on income accruing to fidelity
funds maintained by the DSE for investor protection.
• Income received by Collective Investment Scheme (CIS)
investors is tax-exempt.
FINANCIAL STABILITY
Specific interventions by government to mitigate the impact of
the financial crisis and subsequent economic slowdown have
included the guaranteed rescheduling of outstanding loans
and the provision of working capital on concessional terms,
with government providing soft loan facilities for on-lending to
businesses whose operations have been adversely affected.
At present, the Bank of Tanzania is focusing on a number
of priority areas in order to maintain financial stability in the
economy.
The following specific measures are being undertaken to ensure
that Tanzania’s financial systems remain stable:
• Continuation of sound monetary policy to ensure price
stability in the economy. This is an essential pre-condition
for sustainable economic growth and maintenance of
macroeconomic stability and financial stability in particular.
• Sustenance of daily surveillance of the financial transactions
in the banking sector and through the payment and settlement
systems. This enables the Bank to identify any early warning
signals of systemic risks to the financial system, and hence
take appropriate measures.
• Sustenance of prudential surveillance and supervision
over banks and the national payment system in order to
 strengthen the resilience of the banking and payment resolutions.
systems, respectively. With regard to banks, the Bank of • Enhancement of coordination between the Bank of Tanzania
Tanzania will continue to perfect its model of risk-based and its regional peers in order to to handle emerging
banking supervision. The on-site risk based examination challenges associated with the EAC-Monetary Union and
of banks is complemented by an offsite surveillance – a further capital account liberalisation. Furthermore, the
combination that plays a major role in detecting early warning Monetary Affairs Committee of EAC central banks has given
signals of any financial distress and facilitates pre-emptive the Bank of Tanzania a coordinating role in harmonising the
interventions. EAC member states’ financial stability frameworks in a bid to
• Speeding up of the establishment and operationalising of a develop a regional framework for financial stability analysis
Credit Reference Bureau to facilitate the sharing of information and reporting.
on creditworthiness of customers in the banking system as
Zanzibar Institute of Financial Administration - Photo Courtesy: Marie Gibbons
one of the measures to manage credit risk.
• Ensuring compliance by banks to the new increased capital
requirements within the agreed grace period. This capital
enhancement on its own is not a substitute for banks’ own
risk-management practices. Consequently, the Bank of
Tanzania shall continue to require banks to put in place
and sustain robust mechanisms for risk assessments of their
operations to facilitate timely detection and reporting of any
emerging risks.
• In addition to the work of the Financial Stability Department,
the Bank is committed to make the envisaged financial
regulators forum provide an effective platform for coordination
of financial crisis preparedness and management in the
country.
• Enhancement of the crisis response mechanism through
development of an effective and coordinated national financial
crisis management and resolution framework. This involves,
among others, strengthening the role of the existing Deposit
Insurance Board (DIB) in safeguarding financial stability
and preserving public confidence in the financial sector, and
development of contingency plans for provision of systemic
emergence liquidity in times of need, and for systemic bank
23 Celebrating 50 Years of Independence
Tourism
A sought-after tourism
destination, Tanzania is
blessed with a variety
of cultural and scenic
attractions, and an
impressive network of
wildlife protected areas.
With 16 national parks, 33 game reserves and 43 game
controlled areas, some 28 percent of Tanzania’s total land
area is set aside for conservation. In addition, the country
boasts seven world heritage sites, including the Ngorongoro
Conservation Area, Serengeti National Park and Mount
Kilimanjaro. In recent years, increased investment in tourism
services has seen major improvements in air access and
infrastructure development in terms of road networks,
particularly on safari circuits, as well as the construction of new
luxury hotels on the mainland and Zanzibar.
The top ten destinations in Tanzania include:
• Ngorongoro Crater
• Serengeti National Park
• Zanzibar and Pemba
• Tarangire National Park
• Lake Manyara National Park
• Mt. Kilimanjaro
• Selous Game Reserve
• Ruaha National Park
• Mafia Island
• Mount Meru
The 2008 Tanzania Tourism Sector Survey, involving 6 388
international tourists, was carried out at five of the country’s
entry/exit points. According to the survey findings, the average
length of stay in Tanzania mainland is nine nights as compared
to ten in Zanzibar, and the overall average expenditure per
visitor is US$ 209 per person per night for tourists on a package
tour and US$ 186 per night for non-package tour visitors.
During 2008 and 2009 the country’s tourism industry felt the
knock-on effect of the global recession on its major source
economies through a slowdown in tourist arrivals. In 2010,
as economic recovery spread to many of Tanzania’s source
markets, the industry began to register positive growth once
more.
Out of 181 countries in 2011, the World Travel & Tourism
Council (WTTC) ranked Tanzania’s travel and tourism
industry 86th in absolute size, 59th in relative contribution
to the national economy and 20th in growth potential.
24
Statistics from the Bank of Tanzania’s monthly report of January
2011 put the country’s travel receipts at US$ 1 302.6 million
in the year ending December 2010 – a 12.3 percent increase
over the amount recorded for 2009. In addition to the continuing
global recovery, an increase in daily scheduled flights during
the year contributed to the rise in travel receipts. For example,
Turkish Airlines now flies to Tanzania three times a week, while
Oman Air has four weekly flights, and Ethiopian Airlines has
increased its flights from seven to 12 times per week.
The tourism product in 2011 and beyond
According to the World Travel and Tourism Council (WTTC),
the direct contribution of travel and tourism to GDP is expected
to be 4.5 percent of total GDP in 2011, rising by 6.6 percent
per annum to 4.7 percent in 2021. At the same time, its total
contribution to GDP, including wider economic impacts, is
forecast to rise by 6.6 percent per annum from 12.9 percent of
GDP in 2011 to 13.4 percent by 2021.
The direct contribution of the sector to employment is estimated
at 377 000 direct jobs in 2011 (3.7 percent of total employment),
rising to 497 000 jobs (3.9 percent) by 2021. When this is
broadened to include jobs indirectly supported by the industry,
the figure rises from 1 124 000 jobs (11.2 percent of total
employment) in 2011 to 1 477 000 jobs (11.7 percent) by 2021.
Visitor exports are expected to generate TZS 1 974.7 billion
(22.6 percent of total exports) in 2011, growing by 11.7 percent
per annum in nominal terms to TZS 3 830.2 billion (26.8
percent) in 2021. Investment is estimated at TZS 1 086.4 billion,
or 9.6 percent of total investment, in 2011, and is forecast to
rise by 5.4 percent per annum to reach TZS 1 833.6 billion, or
9.4 percent of total investment, in 2021.
PROMOTING TOURISM
The Tanzania Tourist Board (TTB), together with the Ministry
of Tourism and Natural Resources and the private sector,
promotes the country’s many attractions in both domestic and
international markets, notably Europe and the United States
(US).
The marketing of Tanzania abroad has for many years
been focused on the US, in the form of advertisements
and promotional material in popular television, magazines,
newspapers and billboards. From 66 953 American tourist
arrivals in 2008, the number of visitors from the US reached a
record high of 68 379 in 2009.
While the US remains the main source of foreign tourists to
Tanzania, the TTB is looking to boost other markets, such as
the United Kingdom (UK), with a view to doubling the current
number of visitors from that source. This is being pursued
through an advertising campaign launched in 2010 using
billboards in premier soccer league stadia. Statistics show that
Tanzania currently receives a maximum of 58 000 tourists from
the UK every year, with a marginal annual growth rate.
The most common techniques used in destination promotion
include participation in local and international tourism trade
fairs, road shows, media/public relations, and advertising
in local and international media. The country has recently
participated in the Tourism Indaba and World Destination Sports
Expo in South Africa, JATA World Tourism Fair in Tokyo, World
Travel Market in London, Luxury Travel Show in Las Vegas,
ITB in Berlin and China Outbound Travel and Tourism Mart in
Beijing.
Other promotional events during 2011 include the Harley-
Davidson Kilimanjaro Expedition – a motorbike rally involving
a fleet of 50 bikers – and the Kilimanjaro Marathon, which
brings together more than 4 000 participants from around
the world. TTB has also embarked on an innovative strategy
to help attract more local tourists to the country’s numerous
tourism destinations by encouraging and promoting live musical
performances and education.
‘Tanzania – The Land of Kilimanjaro, Zanzibar and the
Serengeti’, a 60-second commercial produced for the TTB,
won a Platinum REMI award at the 43rd Annual WorldFest
Houston International Film Festival.
Celebrating half a century of independence
The Tanzania Tourist Board is planning a series of events for
the tourism industry in the run-up to 9 December 2011, which
will mark a half-century of independence for East Africa’s
largest country. Events will include dedicated celebrations as
well as workshops, meetings and commemorations highlighting
Tanzania’s many achievements. Other proposals include
introducing a series of commemorative postal stamps and
publishing guidebooks and publicity material for the occasion.
Tanzania was the first of the East African countries to attain
independence from Britain in 1961, and has been spared
the civil strife seen in many neighbouring countries. Much of
this may be attributed to the efforts of the country’s founding
father, Julius Nyerere, who overcame colonialism, internal
divisions and Cold War intrigue to peacefully lead Tanzania
to independence, instilling a sense of the importance of
nationalism above tribalism in the fledgling nation.
Planned by the Nyerere Educational Resource Centre, a
documentary film about Mwalimu Julius Nyerere is set to
premiere in December 2011, in time for the 50th anniversary
celebrations. This two-hour documentary comprises interviews
26
with Nyerere’s colleagues and peers, archival film and
photographs, and input from Tanzania’s leading scholars.
Nyerere, as a figure of unique intellect and integrity, provides a
powerful perspective from which to contemplate this history and
understand the historical context of the challenges Africa now
faces.
Branding Tanzania
The TTB is also in the process of developing a brand for
destination Tanzania. In order to establish the perceived image
which visitors have of the country, a survey was carried out
which entailed administering more than 2 543 questionnaires
to non-resident visitors at designated airports, hotels and other
tourist areas in Dar es Salaam, Arusha and Zanzibar, visitors
in selected Tanzanian embassies, and during the Leisure
Travel Fair in Moscow. According to the survey, the top five
perceptions of Tanzania are:
• Friendly people (27.1 percent)
• Beautiful country (22.1 percent)
• Positive image (14.6 percent)
• Beautiful nature (13.9 percent)
• Diverse culture (9.7 percent)
On 4 March 2011, the board in collaboration with the Tourism
Confederation of Tanzania (TCT) organised a Stakeholders’
Consultative Meeting to help establish a destination brand for
Tanzania based on the perceptions evident in the survey.
POLICIES & PROGRAMMES
The National Tourism Policy adopted in 1991 set the overall
objectives and strategies necessary for ensuring sustainable
tourism development in Tanzania. This saw the establishment
of the Tanzania Tourist Board (TTB), improved private
sector participation and the approval of new tourism-related
projects in collaboration with the Tanzania Investment Centre
(TIC). Tourism development in Zanzibar falls under the
Zanzibar Commission for Tourism (ZCT), while the Tourism
Confederation of Tanzania (TCT) is the main national private
sector body representing the industry.
The Tourism Policy was revised in 1999 to focus more on
community-based tourism and the sustainable conservation and
management of both the environment and local culture to create
a low-impact, high-quality eco-tourism product. The spotlight
is currently on the development of niche markets, such as bird
watching, hunting, fishing and scuba diving, and cultural as well
as conference tourism.
Steps have been taken to improve existing infrastructure, and
investment opportunities are available in construction and
management of hotels, lodges and restaurants, infrastructure
ventures, aviation projects, training institutes, tour operations,
travel agencies and marketing organisations. The Mtwara
Development Corridor initiative, which spans southern
Tanzania, southern and central Malawi, northern Mozambique
and eastern and northern Zambia, is also the focus of ‘bush and
beach’ tourism projects.
In 2008, preparations commenced for the implementation of
a Maritime Cultural Heritage Programme. The programme
will include the investigation and documentation of a number
of sites as part of developing a Maritime Heritage Database
with a view to providing information on the value of Tanzania’s
underwater and maritime heritage and the need for its
protection. A survey of the Great Northern shipwreck – a site
with both historical and natural significance – began in April
2009.

In the medium term, government is focusing on:

• Increasing natural and cultural resources under community
and private sector management through scaling up Wildlife
Management Areas (WMA)
• Strengthening cultural centres through improving cultural
archives and information centres
• Implementing the Wildlife Conservation Act No.5 of 2009
through enforcing its regulations on management, protection,
conservation and utilisation of wildlife resources
• Improving tourism services through training of tourist service
providers, hotel classification, and improving cultural, beach
and eco-tourism
• Improving revenue collection efforts from natural, cultural and
tourism operations

Funded jointly by French and Tanzanian governments,

the National College Of Tourism Project aims to establish
a National Training Facility that will assume the role of a
centre of excellence for educating and training prospective
employees in the tourism and hospitality industries.

TOURISM ATTRACTIONS
Tanzania’s scenery and topography, unmatched variety of fauna
and flora as well as a fascinating heritage – not to mention its
friendly and welcoming people – form the basis of an unparalled
tourism product. Visitors can enjoy pristine sandy beaches,
coral reefs and marine parks; sites rich in history, from early
hominid remains to rock art and architecture; cultural tourism,
game hunting and the best wildlife photographic safaris on the
continent. It is therefore little wonder that the country contains a
total of seven UNESCO World Heritage Sites.

Set in the enormous caldera of an extinct volcano, Ngorongoro

Conservation Area (NCA) in northern Tanzania boasts
a spectacular blend of landscapes, wildlife, people and
archaeology, unsurpassed anywhere else in Africa. Declared
a World Heritage Site in 1979 and the Eighth Wonder of the
World in 1982, the NCA is also an international biosphere
reserve. Here pastoralism as practised by the Masaai coexists
in harmony with natural resources conservation and tourism.

The NCA encompasses a large concentration of wildlife, with

over 25 000 large mammal including black rhino, elephant,
wildebeest, hippo, zebra, giraffe, buffalo, antelope and lion.
From here the nearby crater of Empakai, filled with a deep
alkaline lake, and the active volcano of Oldonyo Lengai, can
be seen. Excavations carried out in the Olduvai Gorge have
unearthed one of humankind’s earliest ancestors – Homo
habilis – and at Laitoli site early hominid footprints can be seen
which date back some 3.6 million years.

Other top heritage sites include:

• The ruins and irrigation system surrounding Engaruka, left by
a highly developed yet unidentified civilisation some 500 years
ago.
• The towns of Lindi and Mikindani, which were both central
ports in the network of Indian Ocean trade.
• Tendunguru, which is a significant site for palaeontology,
as the remains of the largest known dinosaur species were
discovered here.

27 Celebrating 50 Years of Independence

• Important archaeological remnants from the Swahili coast may
be found in the island ruins of Kilwa Kisiwani and the nearby
Songo Mnara.
• Over 150 caves at the Kondoa rock art site, which bear
images reflecting the religion and rituals of their early
inhabitants.
• Zanzibar’s historic Stone Town, with a rich architectural
resource reflecting its part in the seaborne trade between Asia
and Africa.
National Museum of Tanzania (NMT) is a scientific,
educational and cultural institution for collecting,
conserving, displaying and researching cultural and
natural matters, and includes the Museum and House of
Culture Dar es Salaam, Village Museum, Arusha Declaration
Museum, Natural History Museum and Mwalimu JK Nyerere
Museum.
The country’s many natural wonders and rich wildlife experience
may be experienced on a walking or boat safari, or even from
a hot air balloon drifting over the Serengeti. Adventure tourists
can hike on the slopes of Mount Meru, scale the heights of
Kilimanjaro, or explore an ocean wonderland on a diving or
snorkelling excursion. There is also horse riding and mountain
biking, with canoeing trips in Arusha National Park and excellent
deep sea fishing in the vicinity of Zanzibar and Pemba. Then
there are soda lakes like Lake Manyara and Lake Natron, and
the freshwater lakes of Victoria, Tanganyika and Nyasa, where
tourists can enjoy fishing trips, hiking and swimming.
28
Tourism opportunities on the islands of Zanzibar and Pemba,
known for the historic Stone Town, beautiful beaches and spice
plantations, are covered under the ‘Zanzibar’ chapter.
The Tanzanite Experience
Located in the foothills of Mount Kilimanjaro is the valuable,
rare and mysterious gemstone known as tanzanite, which
was discovered in 1967. The supply of tanzanite is finite, and
could diminish considerably within the next 15 to 20 years.
The ‘Tanzanite Experience’ has been developed to create a
greater awareness of the blue/purple mineral zoisite through
tourism and education. Visitors are treated to an adventurous
underground tour down a mine shaft to learn about the history,
geology, process and mining ethics of tanzanite.
NATIONAL PARKS & GAME RESERVES
The Tanganyika National Parks Ordinance of 1959 established
the organisation now known as Tanzania National Parks
(TANAPA). Conservation in Tanzania is governed by the Wildlife
Conservation Act No.5 of 2009.
Human activity is closely monitored and all development strictly
regulated. Buildings in the parks must be unobtrusive and
waste disposal is carefully controlled. Park visitors and facilities
are widely distributed to prevent harassment of animals and
to minimise the human impact on the environment. Even in
Tanzania’s most popular park, the Serengeti, more than 7 000
square kilometres – almost half the park’s area – remains a
wilderness zone with no roads.
Tourism provides valuable revenue to support the conservation
work of the national parks as well as wildlife research
and the education and livelihood of local communities. In
addition, tourism helps to generate international awareness
of conservation issues, while the physical presence of tourists
assists in deterring poachers and helps park rangers in their
game management work.
Easily the country’s most famous national park, the Serengeti
National Park in northern Tanzania encompasses 14 763
square kilometres of protected grasslands, savannah, riverine
forest and woodlands bordering Kenya’s Masai Mara Game
Park. It is also the site of the annual migration of around
200 000 zebra, 300 000 Thomson’s gazelle and over a million
wildebeest to new grazing lands some thousand kilometres
to the north. The Serengeti is known for its rich populations
of leopard and lion, as well as endangered black rhino and
cheetah.
Comprising two dormant volcanoes (Kibo and Mawenzi) and
one extinct volcano (Shira), Mount Kilimanjaro is also one of
the world’s highest freestanding mountains. At 5 895 metres,
Kibo peak is covered with snow and ice throughout the year,
despite Kilimanjaro’s position just three degrees south of the
equator. With a diverse variety of attractions, which range from
terrestrial wilderness to permanent glaciers on the mountain
peaks, Kilimanjaro National Park was declared a UNESCO
World Heritage Site in 1989, and continues to draw climbers
from around the world. Climbing to the peak takes five to six
days, with routes taking hikers from lush tropical rainforest,
populated with leopard, antelope and elephant, through
heath and moorland and then into the icy, arctic terrain of the
summit.
Covering an area of 54 600 square kilometres in southern
Tanzania, the Selous Game Reserve is one of the largest
wildlife reserves of the world, and offers visitors a true taste
of untamed Africa. Designated a World Heritage Site in 1982
because of its pristine environment and diversity of fauna,
Selous is characterised by grassland plains, seasonally flooded
pans, riverine forests and lakes. This unique ecosystem
boasts larger concentrations of wildlife, such as hippopotamus,
crocodile and the rare African wild dog, than any other game
reserve in Africa, and supports 30 000 elephant, 200 000
buffalo, 80 000 wildebeest and ever increasing numbers of
black rhino.
A remote wilderness of undisturbed wildlife and breathtaking
vistas, the recently expanded Ruaha National Park is
Tanzania’s largest national park and lies 130 kilometres west
of Iringa town. Inhabited by hippos, crocodiles and turtles,
the Great Ruaha River has created spectacular gorges
and scenery. The park is also known for its sable and roan
antelopes, rich birdlife and high concentration of elephants.
The smallest of Tanzania’s national parks, Gombe Stream’s
claim to fame is its chimpanzee population which was studied
by British researcher Jane Goodall. Set between steep
mountains and valleys, this narrow strip of primeval forest is
also home to a wide variety of other primates, including blue or
red-tail monkeys.
Tanzania’s other principal parks comprise the protected habitat
of Lake Victoria’s Rubondo Island; the rainforests, beaches
and chimpanzees of Mahale Mountains National Park; the
popular and easily accessible Mikumi National Park, with its
flood plain, open grasslands and diversity of birdlife; and the
hot springs, famous tree-climbing lions and dense populations
of elephant and buffalo in Lake Manyara National Park.
A wonderful beach and bush experience awaits visitors to
Saadani National Park, while Katavi is the country’s fourth-
largest protected wildlife area and excellent for game viewing.
which are to be found in Arusha National Park. A more
leisurely option is to traverse the beautiful Crater Highlands.
Tourists visiting between December and April will be able to
view the annual wildebeest migration across the Serengeti.
Top attractions for hikers include Mount Kilimanjaro and the
crater of Mount Meru.
• Southern Circuit: Containing the continent’s largest game
reserve, the Selous Game Reserve, this region is
characterised by vast expanses of untouched African
wilderness and a fascinating diversity of ecosystems. On the
southern Swahili Coast, the seldom visited town of Mikimazi
is an pleasant base for diving expeditions and trips to the
abandoned ruins of the ancient Swahili trading post.
• Western Circuit: The western areas of Tanzania are home
to remote destinations such as the rugged Katavi National
Park and offer activities like chimpanzee trekking. At Lake
Victoria, pastimes including boating, fishing and hiking can be
enjoyed.
• Eastern Circuit: Includes parks such as Saadani and Mikumi,
as well as Mafia Island Marine Park, and affords tourists
centred in Dar es Salaam the opportunity of seeing Tanzania’s
world-renowned wildlife assets without having to travel all the
way to Arusha and the north.
Situated on the Northern Safari Circuit, Tarangire National
Park is presently being enlarged to incorporate a major
forest. This is expected to not only provide extra protection
for the area but should also attract additional visitors to the
park.

In the southern highlands there are magnificent wildflowers to

be found in Kitulo Plateau National Park. The Amani Nature
Reserve contains some of the planet’s most biologically diverse
rainforests; Arusha National Park is the site of the country’s
second-highest mountain, Mount Meru; while Tarangire
National Park is known for its elephants and massive baobabs
and the forested Udzungwa Mountains for both primates and
bird watching. Located just south of the border with Kenya and
east of the Pare Mountains, Mkomazi National Park is the
focus of a breeding programme to save the endangered black
rhino.

Safari Circuits
Tanzania’s many game parks are often divided into groups
of parks based on geographical proximity, making the huge
number and range of wildlife attractions more manageable for
tourists. Safari circuits include the following.
• Northern Circuit: The most popular of the safari circuits,
known for its wildlife and big game, this region contains the
Serengeti, Mount Kilimanjaro, Lake Manyara National Park,
Tarangire National Park and the spectacular Ngorongoro
Crater, one of the largest volcanic craters in the world and
home to large concentrations of wildlife. Short day-trips from
Arusha might take in Mount Meru and the Momela Lakes,
29 Celebrating 50 Years of Independence
Agriculture & Fisheries
Made up of crops, livestock,
forestry and hunting, the
agricultural sector, together
with fisheries, is a vital
source of revenue and jobs,
employing some 80 percent
of the workforce.
Despite growing at an average of four percent per annum
for the past decade, agriculture has exhibited a modestly
declining trend in its contribution to GDP, reflecting the gradual
modernisation of the economy and expanding output in other
sectors. The sector comprised 24.7 percent of Tanzania’s GDP
in 2009, down from 25.4 percent in 2008.
Agriculture added 3.2 percent gross value to GDP in 2009,
rising to 3.8 percent in the first three quarters of 2010 (January-
September). It is expected that the implementation of the Kilimo
Kwanza (Agriculture First) initiative and government efforts to
modernise agricultural activities, which include improving road
network, markets and irrigation, the opening of the window for
agricultural lending at Tanzania Investment Bank (TIB) and
the ongoing initiative to establish an Agricultural Development
Bank, should enable growth to rebound to 5.7 percent by 2013.
CROP PRODUCTION
Tanzania has nine agro-ecological zones: coastal plains,
eastern plateaus and mountain blocks, southern highlands,
northern rift zone and volcanic highlands, central plateau,
Rukwa (Ruaha rift valley), inland sedimentary, Ufipa and
western highlands. Major staple crops include maize, sorghum,
millet, rice, wheat, pulses (mainly beans), cassava (tapioca),
potatoes, bananas and plantains. A wide range of tropical
and temperate fruits are also produced, such as oranges,
pineapples, mangoes, avocados, apples and grapes.
Agriculture’s higher growth rate up to the end of the third
quarter of 2010, compared with the same period in 2009, may
be attributed to the increase in the harvest of major food crops.
The quantity of maize harvested went up by 20.0 percent from
3 309 thousand tonnes in the third quarter of 2009 to 3 971
thousand tonnes in the third quarter of 2010.
Millet/Sorghum harvested in the third quarter of 2009 was
721 thousand tonnes compared to 761 thousand tonnes in
the corresponding quarter of 2010, which is an increase of 6.0
percent, while cassava harvested increased by 3.0 percent from
2 915 thousand tonnes in the third quarter of 2009 to 3 003
thousand tonnes in the third quarter of 2010.
30
Export crops
Tanzania’s main export crops include coffee, cashews, tobacco,
tea, cloves and other spices, horticultural crops, oil seeds
(groundnuts, sesame, and sunflower) and fresh cut flowers.
Traditional exports, especially cotton and coffee, were severely
affected by the impact of the global financial crisis in 2009/10 as
world market prices declined substantially.
In the year to January 2011, the value of traditional exports
was US$ 610.0 million, 22.4 percent higher than that in the
corresponding period a year earlier, largely due to a significant
increase in both export volumes and unit prices of tobacco
and cashew nuts. Over this period, the volume of cashew nuts
exported rose by 75.2 percent and unit prices by 46.1 percent,
while the volume of tobacco exports rose by 25.6 percent.
LIVESTOCK
Tanzania has plentiful livestock resources, ranking third in Africa
in terms of cattle population after Ethiopia (31 million) and
Sudan (30 million). There are an estimated 18.5 million cattle,
13.1 million goats, 3.6 million sheep and 30 million indigenous
poultry, among other species. The livestock subsector
contributes almost 16 percent to agricultural GDP.
Of the 88.6 million hectares of land resource, 60 million
hectares are rangelands suitable for livestock grazing. While
the country’s rangelands have a carrying capacity of 20 million
livestock units, presently only 17 million are kept. There is
therefore ample land for the industry to expand.
Current challenges facing the sector include animal diseases,
poor infrastructure and lack of reliable markets, investments
and processing industries. Nearly all animal products – such as
meat, dairy and skins – are absorbed by the domestic market.
The 2010/11 budget prioritises strengthening extension services
and research on production of better livestock breeds with
high productivity, and improving the provision of subsidies on
veterinary drugs and vaccination.
FISHERIES
Tanzania has a coastline of 1 450 kilometres and an Exclusive
Economic Zone in the Indian Ocean of about 223 000 square
kilometres. It also has access to large inland water bodies in
Celebrating 50 Years of Independence
the form of the great lakes, together with extensive riverine and
inland drainage systems and wetlands. Fresh water bodies
are estimated to cover 54 337 square kilometres – some 5.7
percent of the the country’s total surface area.
Major fish catches include sardines, catfish, tilapia, Nile perch,
dagaa and, to a lesser extent, prawn fishing in coastal areas.
The country’s inland fishing industry – in particular the lakes
of Victoria, Tanganyika and Nyasa – has been the focus of
much activity in recent years. Nile perch is the primary fishing
catch in Lake Victoria, and there is also potential for developing
fishing resources in Lake Nyasa and Tanzania’s coastal areas,
especially deep sea fishing and commercial prawn fishing.
There is an estimated potential of 730 000 metric tonnes of fish,
although the average catch is in the region of 350 000 metric
tonnes per year, implying great potential for increased fish
production in Tanzania. However, efforts to develop and expand
the fishing industry have been hampered by territorial disputes
(in the case of Lake Nyasa) and illegal fishing activities, as well
as the need for investment to upgrade the local fishing fleet and
other infrastructure.
The growth rate of fishing economic activities was 2.7 percent
in 2009, a significant decline from 5 percent in 2008. This
weaker performance is attributed to continued use of poor
fishing gear, destruction of fish hatcheries and low production
to meet world market demand, as well as greater competition in
the European countries resulting from increased fish farming in
Asia, particularly China and Vietnam.
The fisheries subsector registered an improved
performance in 2010, with an average growth rate of almost
9.1 percent recorded over the first three quarters of the
year, mainly as a result of increased demand for fish and
fish products in both local and foreign markets.
SECTORAL CHALLENGES
According to East African Community Facts & Figures
(2009), Tanzania has 48.1 million hectares of agricultural
land. However, just 9.5 million hectares of this is cultivated.
Unlike several other countries in the region, the vast majority
of land available for cultivation is neither virgin forest nor
environmentally sensitive.
One reason for such underutilisation is the fact that agriculture
in Tanzania remains largely unmechanised. According to
government figures, nearly three quarters of the country’s crops
are cultivated by hand hoe; a further 20 percent are cultivated
by ox plough and only 10 percent by tractor. Production and
development are also limited by the fact that most farms are
organised around smallholder subsistence models, with the
average farm size between 0.5 and 3.0 hectares.
AGRICULTURE FIRST
In 2006 Tanzania launched the Agriculture Sector Development
Programme (ASDP), a comprehensive initiative designed to
address constraints to agricultural growth. In 2009, the country
introduced a new initiative called Kilimo Kwanza (Agriculture
First). Its primary thrust is to bring the private sector on board,
encouraging peasant and small-scale farmers to shift to more
commercial modes of production, and make the agricultural
sector attractive to investors.
32
Photographs Courtesy: Ministry of Agriculture & Natural Resources
The Tanzanian government recognises the importance and
potential of agriculture as a contributor to wealth creation,
allocating the sector TZS 903.8 billion in the 2010/11 budget
– an increase of 35.5 percent over the TZS 666.9 billion
allocated in 2009/10.
In July 2010, Tanzania joined other African countries in
signing the Compact for the Comprehensive Africa Agriculture
Development Programme (CAADP). This is a shared framework
to accelerate sectoral growth. The CAADP process in Tanzania
draws on lessons learned from the implementation of the ASDP,
enabling the country to gather all its agricultural development
initiatives under one umbrella.
Rising above the global crisis
A number of measures have been put in place to redress the
adverse impacts of the global economic crisis, with productivity
and growth in agriculture being boosted through:
• Improvements to the rural road network and irrigation
infrastructure, including rain water harvesting
• Improvements to storage facilities for agricultural crops and
livestock products and assistance to farmers in identifying
reliable markets
• Strengthening the capacity of the Strategic Grain Reserve
• Ensuring the timely availability of inputs for arable agriculture
and livestock farming
• Giving priority in the allocation of farm implements and other
inputs to the major food crop production regions of Mbeya,
Ruvuma, Rukwa, Iringa, Morogoro and Kigoma
• Identifying and surveying land for large-scale food crop
farming to take advantage of the existing opportunity in terms
of local and world market demand
FOCUS ON INVESTMENT
Tanzania’s government has taken a number of steps
to encourage investment in agriculture. Reformed land
policies allow for 99-year leases to foreign companies, while
liberalisation within the industry enables the private sector
to compete in the processing and marketing of cash crops.
Promising investment opportunities in the agriculture sector are:
agro-processing; inputs and machinery manufacturing; irrigation
infrastructure development; production of cut-flowers, fruits and
vegetables; and the production of traditional cash crops such as
coffee, tea, pyrethrum, cashew nuts, sugar, cotton and sisal.
South African alcohol producer and distributor Distell is
spearheading a viticultural initiative in association with Tanzania
Distilleries (TDL) which is expected to enable wine farmers in
the Dodoma highlands to double their crops within three to five
years. Currently the country’s vineyards occupy 150 hectares
around Dodoma, and are planted to red and white Makutopora,
chenin blanc, shiraz and cabernet sauvignon.
Ministry of Agriculture and Natural Resources

A SHORT PROFILE
Following the 2010 general elections the name and structure of the Ministry has changed. The previous Ministry was called the Ministry of Agriculture,
Livestock and Environment (MALE) and the new Ministry is the Ministry of Agriculture and Natural Resources (MANR). The Ministry is now responsible
for all issues to do with agricultural sector development and management of natural resources. In terms of structure there are certain institutions that
were under MALE that have been shifted into other Ministries, such as Environment and Cooperatives Departments while the Livestock and Fisheries
Departments have been formed into a new Ministry called Ministry of Livestock and Fisheries. All the remaining institutions that were previously under
MALE are still under MANR mandate.

The new structure of the Ministry therefore consists of the following departments. The Department of Policy, Planning and Research, the Department of
Administration and Human Resources, the Department of Food Security and Nutrition, the Departments of Agriculture, the Department of Forestry and
Non-renewable Natural Resources, the Department of Irrigation, the Institute of Agricultural Research, and Kizimbani Agricultural Training Institute. Other
development programmes and projects are implemented for the purpose of improving services delivery to the targets with wider reach to the farmers’ level
such as World Bank funded Participatory Agricultural Development and Empowerment Project (PADEP) and IFAD funded Agriculture Service Support
Programme / Agriculture Sector Development Programme-Livestock (ASSP/ASDP-L), through participatory approach such as adaptive research and
farmer field schools all aiming at reducing income poverty and improving the general well being of the farmers.

FUTURE OUTLOOK ON AGRICULTURE

For a long time in history, agriculture has continued to be an important pillar to support livelihood of a larger proportion of our people. This sector is
responsible for ensuring food security by providing crops, livestock and marine products sufficient to feed over 1,000,000 people residing in Zanzibar.
Agriculture is a direct source of employment to about 42 percent of the population and contributes to more than a quarter of the national economy. Zanzibar
has a great potential for developing agriculture, taking into account its comparative advantage of having good soils and rainfalls to support crop production
as well as natural pastures for feeding livestock. The great diversity of marine macro flora and fauna species and a variety of forest resources provides
unique opportunity for the islands to fairly taking a lead in fulfilling the demand for domestic and export market of farm products, especially fruits and spices
at the regional and international horizon.

Like many other regional states of the sub-Sahara Africa, agriculture sector in Zanzibar is invariably devastated by a number of challenges, mainly
associated with continuous application of inappropriate farming technologies, limited investment opportunities, and a slow pace towards commercializing
agricultural production. Agricultural development is also defied by a poor marketing infrastructure and perpetuated by unpredictable impacts of climate
changes. In order to address these challenges, joint initiatives are required to uphold the national endeavours towards the attainment of bona fide green
revolution.

Since the beginning of the millennium, the Government has been compellingly embarking on the implementation of its national macro policies, strategies
and programmes. The Zanzibar Growth Strategy (ZGS), Strategy for Growth and Reduction of Poverty (ZSGRP) and a long-term economic vision (Vision
2020) became a central focus in the attention of all major sectors namely; economic, social welfare as well as national governance. The Zanzibar
Agricultural Transformation Initiative (ATI) emerged at about time that Zanzibar is getting prepared to launch its second phase of the ZSGRP, now to be
referred as MKUZA II. An overall viewpoint of the ATI dwells on the creation of good environment for production, processing and marketing of agricultural
products in the next ten years from which, a range of interventions will be required to make these aspirations possible. In this regard, a full commitment
from all parties particularly the public and private sectors is essential. The Government is determined to undertake all necessary steps required to facilitate
implementation process of this initiative as part of its obligation for realisation of the long term socio-economic development as foreseen in Vision 2020.

As described hereunder, the accomplishment of ATI philosophy is largely dependent on political will, professional commitment and private sector led
transformation. The overriding objective of ATI is to provide an enabling environment to enhance and sustain the growth and development of agricultural
sector to become commercial and more globally competitive. Specific objectives are to:
i) increase public investment in agricultural sector;
ii) promote private sector investment in agricultural production;
iii) enhance productivity and competitiveness of the sector;
iv) promote export diversification;
v) create employment and wealth; and
vi) deepen linkages with other growth sectors of the economy.

MAIN COMPONENTS OF ZANZIBAR AGRICULTURAL TRANSFORMATION INITIATIVE

Increased public sector investment
This entails provision of support services required for increasing and sustaining agricultural production and productivity, growth of real farm income,
sustainable livelihood and food security. Zanzibar Agricultural Transformation Initiative aims to enhance capacity and efficiency in services delivery in terms
of (i) technological development (research, infrastructure and support services), (ii) build institutional and human capacity to best serve the sector, (iii)
provision of favourable policy, legislative and regulatory environment supportive to increased private sector participation into the sector.

Commercialising agriculture production

The main focus of this component is to promote the development of value chains of a few selected high value commodities based on comparative
advantage, farmer preference and market demand through: a) transformation of subsistence smallholder farming into viable commercial production
units that are feasible for private sector investment (service provision, market access); b) promoting adequate utilisation of productive land and industrial
resources through joint venture schemes (medium to large scale firms) for increasing employment and agricultural output; c) enhanced investment in
identified priorities areas to increase agricultural output.

Enhanced market linkages and trade

The Zanzibar food balance sheet is characterized by a high dependence on importation of basic food stuffs. An estimated 49 percent of Zanzibar’s annual
food requirements are accounted for by food imports. This is exacerbated by increased tourism industry that imposed enhanced demands of fresh fruits,
vegetables, fish and livestock products. Apparently about 80 percent of fresh vegetables and 20 percent of fresh fruits consumed in this market segment
are imported. On the other side, the perceived comparative advantages in the production of cloves, tropical fruits, spices and essential oils for export
markets are not yet fully exploited. The purpose of Zanzibar Agricultural Transformation Initiative is therefore to increase share of local agricultural products
in domestic market and to capitalize on opportunities for external markets for products with competitive advantages.

Tel: +255 24 2231169 • PO Box 159, Zanzibar • www.kilimoznz.or.tz

Manufacturing
Growth in manufacturing
averaged 9 percent
between 2004 and 2009,
and the sector is expected
to expand further as a result
of improved power supply,
development and expansion
of Export Processing
Zones (EPZs), as well as
implementation of the SME
policy and the Tanzania
Trade Integrated Strategy
(TTIS).
The privatisation of most government-owned manufacturing
enterprises in the late 1990s set in motion a process of steady
growth within the sector, and the Tanzanian government has
prioritised manufacturing as a catalyst for future economic
expansion. According to the Tanzania Development Vision
2025, the country aims to move from an under-productive
agricultural economy to a semi-industrialised one led by
modernised and highly productive agricultural activities which
are effectively integrated and supported by industrial and
service activities in both rural and urban areas.
The Medium Term Plan and Budget Framework for 2010/11-
2012/13 puts emphasis on the following areas:
• Promoting SMEs and supporting expansion and deepening of
value addition through agro-processing
• Development of industrial premises for SME promotion and
development of incubator sites
• Development and transfer of appropriate user and
environmentally-friendly industrial technologies, including
production of farm implements
• Development of basic industries by providing more support to
the National Development Corporation (NDC)
• Continued development of EPZs and SEZs
Current trends in manufacturing
Notwithstanding the negative effects of the global financial
crisis and the general decline in the demand for manufactured
exports, the performance of the manufacturing sector has
remained relatively strong over the past few years, with growth
of 9.9 percent in 2008 and 8 percent in 2009. This is partly due
to the increased demand for cement required for construction
related to the 2010 Football World Cup in South Africa.
Manufacturing activity recorded a growth rate of 8.3 percent in
the third quarter of 2010 compared to 7.3 percent in the same
quarter of 2009. The higher growth rate was attributed to an
increase in the manufacturing indices of cement, beverages
and other food products. The Ministry of Finance and Economic
Affairs expects growth to have risen to 8.6 percent in 2010.
The volume index of cement increased from 223 in the third
quarter of 2009 to 255 in the third quarter of 2010, while
34
chemicals increased from 340 to 379 over the same period,
tobacco from 407 to 418, and processed food from 160 to 170.
At the same time, the index for beverages increased from 217
in the third quarter of 2009 to 227 in the quarter under review,
and the index of other food from 232 to 244.
In 2009, manufacturing activities attracted the most investors,
with 183 projects worth TZS 654 472 million and employment
potential of 14 143 people. According to the Tanzania
Investment Centre (TIC), the manufacturing sector once again
emerged top in 2010 in attracting investment projects.
MANUFACTURING ACTIVITIES
Most manufacturing concerns are situated in Dar es Salaam,
the country’s industrial and commercial centre, as well as
around the larger cities – particularly Arusha in northern
Tanzania.
Principal manufacturing activities comprise food, beverage and
tobacco processing; textiles and clothing; paper and paper
products; leather and footwear manufacturing; chemicals,
rubber and plastics.
Adding value to locally produced products, agro-processing is
vital to primary sectors like agriculture. Crops such as cotton,
coffee, tea, sugar cane, sisal and tobacco require processing to
be made into more valuable finished commodities. The current
low investment in agro-processing is being addressed by
government through the continued promotion of private sector
investment in the subsector.
Food processing and refining covers both large and small-
scale industries, and includes dairy products, canning and
preserving of fruits and vegetables, canning of fish and similar
foods, manufacture of animal and vegetable oils, grain milling,
sugar production and prepared animal feeds.
The beverages industry includes the distilling and blending of
spirits; manufacture of wines, cider and beer; production of soft
drinks and carbonated water; and the bottling of natural spring
and minerals water. The world’s second largest brewer of beer,
SAB Miller, currently owns 52.83 percent of Tanzania Breweries
35 Celebrating 50 Years of Independence
Ltd (TBL) which has a total of four factories. TBL also owns
65 percent of Tanzania Distilleries and owns and controls the
maltings in Moshi. The company’s total share of the beer market
stands at 74 percent.
The tobacco subsector comprises the manufacturing of
cigarettes and tobacco. The export value of manufactured
tobacco rose by 55.5 percent between January 2010 and
January 2011, on an annual basis, from US$ 7.0 million to
US$ 10.9 million.
Both horticulture and floriculture have grown significantly
over the past two decades. Today, roses are the main export
flower, making up some three quarters of exports. Other flowers
include lisianthus, carnations and chrysanthemums. The export
value of horticultural products, consisting principally of cut
flowers, rose by 33.2 percent between the year ending January
2010 and the year ending January 2011, from US$ 33.7 million
to US$ 44.9 million.
The textiles and garments subsector comprises spinning,
weaving and finishing of textiles as well as garments
manufacture, knitting and the manufacturing of carpets, rugs,
cordage, rope and twines. Tanzania’s labour-intensive textiles
industry, which has historically focused on supplying the local
market, has come under pressure in recent years due to cheap
imports from the East. The export market consists mainly of
cotton yarns and home linens. The value of cotton yarn exports
rose by 22.2 percent between the year ending January 2010
36
and the year ending January 2011, from US$ 9.4 million to
US$ 11.5 million.
Tanzania has three main cement producers: Tanzania Portland
Cement Company (TPCC), Tanga Cement Company and
Mbeya Cement Company. Operating under the Twiga brand,
TPCC is the country’s largest producer. The second largest
manufacturer, Tanga Cement, produces the Simba brand,
while Mbeya Cement Company, whose majority shareholder is
Lafarge, produces the Tembo brand. Spurred by robust growth
in construction, the industry has grown rapidly over the past few
years, with modernisation and expansion programmes having
seen the installation of state-of-the-art technologies.
Export Development
The export market for manufactured goods comprises cotton
yarn, manufactured coffee, manufactured tobacco, sisal
products (yarn and twine), plastics, textiles and apparel and
iron/steel.
After a decline in the value of manufactured goods exported
in the 2009/10 financial year as a result of lower demand in
neighbouring countries following the global financial crisis, the
export value of manufactured goods almost doubled in the year
ending January 2011 to US$ 994.4 million from US$ 497.7
million the previous year. Much of this increase was recorded in
vegetable oils, paper and plastic products. Manufactured goods
accounted for 30.2 percent of all non-traditional exports over
this period.
Celebrating 50 Years of Independence
Mining Industry

Tanzania is Africa’s fourth

largest producer of gold
after South Africa, Ghana
and Mali, as well as
being home to substantial
deposits of other metals and
minerals, most importantly
diamonds, coloured
gemstones, coal, cobalt,
nickel and uranium.

While the mining industry is relatively small in terms of its
contribution to Tanzania’s Gross Domestic Product (GDP),
which stands at around 3.3 percent, it brings in significant
export revenue – some 40 percent of earnings in 2009.
Government wishes to expand the sector’s contribution to GDP
to 10 percent by 2025.
campaigns, and strengthening institutional capacity to manage
the sector and its linkages with other government institutions
• Stimulating investment through upgrading geological
information, and strengthening the information and promotion
unit at the Ministry of Energy and Minerals

While the mining sector enjoyed an average annual growth rate
of 13 percent between 2000 and 2007, growth fell to 2.5 percent
in 2008, and to a record low of 1.2 percent in 2009 in the wake
of the global financial crisis, with a number of major projects
being put on hold. However, the fortunes of the industry started
to improve once more in the latter part of 2009, with growth of
3.7 percent forecast for 2010 in line with the recovering global
economy and higher commodity prices. Export earnings from
minerals have also rebounded, with the value of minerals
exported increasing by 23.4 percent in the year to January 2011
compared with the same period a year earlier.
According to business survey group Business Monitor
International (BMI), the subsectors of coal, nickel and
uranium should expand significantly over the next few years.
Furthermore, an average annual growth of 7.7 percent is
forecast for the mining sector as a whole over the 2010-2015
period, with gold output expected to increase as new projects
come on-stream and large-scale commercial coal and uranium
mining set to begin, as well as two nickel mining projects.
Sustainable Management of Mineral Resources
Project Running from 2009/10 to 2013/14, the Sustainable
Management of Mineral Resources Project (SMMRP) is a
five-year programme financed with an IDA Credit of US$ 50
million equivalent, with co-financing from the government of
US$ 5 million equivalent. The project consists of the following
components:
The project will also support strategic assessment of the State
Mining Corporation (STAMICO) and its future in the sector.
MINING POLICY & LEGISLATION
Replacing the Mineral Policy of 1997, a new Mineral Policy
was implemented in 2009. Seeking to improve the contribution
of the mining sector to Tanzania’s GDP, the policy’s objectives
are primarily to promote economic integration between mining
and other economic sectors, as well as strengthening the
legal and regulatory framework to enhance value addition and
employment creation.
In addition, the Mining Act of 1993 has been revised, with the
new Mining Act of 2010 bringing a number of changes to mining
legislation, including:
• An increase in the royalty rate levied on precious and base
metals from 3 percent to 4 percent
• An increase in the royalty rate levied on diamonds from 5
percent to 6 percent, with a flat rate of 7 percent for uranium
and a standard rate of 3 percent for other minerals
• The option for government to hold a stake in all future mining
projects (the amount to be determined on a case-by-case
basis)

• Improving the benefits of the mineral sector for Tanzania
by addressing small-scale and artisanal mining, linkage of
the sector with local economies, and development of human
resources
• Strengthening governance and transparency in the sector
by supporting policy and legal review and public awareness
38
• The option to require mining companies operating in Tanzania
to list on the local stock exchange (although it is unclear
whether this is legally enforceable)
The revised Mining Act also puts a hold on the issuing of any
new gemstone mining licences to foreign companies and makes
provision for specific areas to be set aside for artisanal miners.
 MINISTRY OF ENERGY AND MINERALS
Introduction
The Tanzania Ministry of Energy and Minerals is an effective institution, contributing significantly to the acceleration of socio-economic
development through utilization of energy and mineral resources. Its mission is to set and monitor implementation of policies, strategies
and laws for sustainability of energy and mineral resources to enhance growth and development of the economy.
The energy sector has the responsibility of creating conditions for the provision of safe, reliable, efficient, cost-effective and
environmentally appropriate energy services to all sectors on a sustainable basis, while, the mineral sector has the responsibilities of
setting policies, strategies and laws; regulate mineral exploration, production, trading, value addition and mineral actors for sustainable
development of mineral resources and integrate with other sectors of the economy.

Energy sector
Tanzania is endowed with diverse energy resources including biomass, natural gas, hydro, coal, geothermal, solar and wind, uranium,
much of which is untapped.
There is plentiful natural gas, coal, hydropower, solar and biomass resource potential; it has one of the world’s lowest levels of
electricity consumption per capita. Considerable scope exists for accelerating electrification to meet the growing demand especially in
the rural areas through off-grid solutions.
Investment opportunities exist for developing hydropower dams, solar photovoltaic systems, biomass based co-generation in sugar,
wood, and tea factories to provide electricity. Tanzania has not yet found oil and is therefore dependent on imported petroleum
products; it has excellent unexploited but potential sedimentary basins.

Investment opportunities in the energy sector include:-

• Rural electrification;
• Exploration of petroleum;
• Generation, transmission and distribution of electricity;
• Development of new and renewable energy resources; and promotion of energy efficiency and conservation initiatives.

Mineral sector
Tanzania’s mining industry has experienced a boom in both mineral exploration and mining activities during the past years. Notable
developments during the boom period include the commissioning of seven large-scale gold mines at Nzega, Geita, Bulyanhulu, North
Mara, Buhemba, Tulawaka and Buzwagi. Factors that led to the rapid growth of the mineral sector in Tanzania include: conducive
geological environment, major economic reforms which have been undertaken since mid 1980’s and political stability of the country.

Tanzania Mineral Endowment

Mineral exploration and geological work undertaken so far reveal that Tanzania has a diverse mineral resource base. Most mineralization
falls into a number of geological environments.
These include the following:
• Gold occurrences hosted by the Archean greenstone belts and banded iron formations
• Gold and base-metal occurrences in the Proterozoic Ubendian Supergroup
• Kimberlite pipes in the central and southern parts of the Archean craton
• Nickel, cobalt, copper, tin and tungsten bearing rock formations in the Karagwe-Ankolean Supergroup in northwest Tanzania
• Major gemstone occurrences in the Proterozoic Usagaran (eastern Tanzania) and Ubendian Supergroups. Main gemstone types
include: tanzanite, ruby, green garnet, green tourmaline, rhodolite, sapphire, emerald, aquamarine and chrysoprase
• Carbonatites associated with the East African Rift Valley system
• Iron ore hosted in anorthositic intrusives in the Proterozoic Ubendian Supergroup
• Evaporites in the Rift Valley and younger formations along the coastal belt
• Coal resources in the Karoo Supergroup in south-western Tanzania
• Uranium occurrences in the Karoo Supergroup in southwestern and southern Tanzania and in superficial deposits within the
Archaean craton in central Tanzania
• A variety of industrial minerals such as kaolin, diatomite, gypsum, pozollana, limestone, meerschaum, bentonite, ball clay and
dimension and artstones (granites, marble, anyolite) occurring in different rock formations.

Fiscal regime
Tanzania has a globally competitive and investor-friendly fiscal regime, which was formulated in 1997. Royalty on minerals is administered
under the Mining Act, 2010.
Tanzania offers internationally competitive tax incentives which guarantees investors’ security of tenure, repatriation of capital and
profits; and transparency in the issuance and administration of mineral rights.

Contacts:
Ministry of Energy and Minerals, Samora Avenue, PO Box 2000, Dar es Salaam, Website: www.mem.go.tz
Mr. David K. Jairo, Permanent Secretary
Tel: +255 22 2112793, E-mail: jairodk27@yahoo.com
Eng. Bashir J. Mrindoko, Commissioner for Energy & Petroleum Affairs
Tel: +255 22 2139455, E-mail: mrindoko@mem.go.tz / b_mrindoko@yahoo.com
Dr. Dalaly P. Kafumu, Commissioner for Minerals
Tel: +255 22 2137142, E-mail: kafumu@yahoo.co.uk

39 Celebrating 50 Years of Independence

Furthermore, in the 2010/11 budget, Section 11 of the Income
Tax Act CAP 332 was amended to introduce ring fencing within
the mining areas. The measure will ensure that each mine is
taxed separately, and applies to all mining companies.
Tanzania earned US$ 57 million from mining royalties in
2009, and this figure is expected to double once the new
mining law comes into force.
GOLD
Tanzania is one of the continent’s largest gold producers, with
estimated resources in excess of 50 million ounces in northern
Tanzania’s Lake Victoria Goldfields. Gold exports earned
US$ 1.076 billion in 2009, up from US$ 932.4 million the
previous year. With the price of gold increasing to an average
of US$ 1 244.6 per troy ounce in the year ending January 2011,
from US$ 994.3 per troy ounce in the preceding year, gold
export receipts rose by 24.5 percent over the same period, to
US$ 1 579.9 million.,
African Barrick Gold (ABG), a subsidiary of Barrick Gold, has
four producing gold mines in north-west Tanzania, and has
to date invested over US$ 1.6 billion in capital in Tanzania.
ABG’s mines comprise North Mara, Bulyanhulu, Tulawaka
and Buzwagi, which together have proven and probable gold
reserves of around 16.8 million ounces, and produced some
716 000 ounces in 2010. In 2011, ABG expects production to be
in the range of 697 000 to 758 000 ounces.
Bulyanhulu Mine in the Kahama District some 55 kilometres
south of Lake Victoria is operated by the wholly-owned ABG
subsidiary Kahama Mining Corporation Ltd. The mine is an
underground trackless operation and is transitioning towards
narrow vein conventional mining, with transition expected to be
completed by 2014.
As at 31 December 2010 the life of the mine was estimated in
excess of 25 years based on proven and probable reserves,
and total employment stood at 2 940 individuals. Total
production in 2010 was approximately 260 000 ounces of gold.
Located approximately 120 kilometres south of Mwanza,
Buzwagi Mine is the country’s second-largest mining operation
and largest single open pit, with a throughput capacity of
12 000 tonnes of ore per day. The first gold was poured at
Buzwagi in May 2009, and total production of some 186 000
ounces of gold was recorded in 2010. Buzwagi’s life of mine as
at 31 December 2010 was estimated to be approximately 13
years based on proven and probable reserves.
Photo Courtesy: René Hartslief
40
The Tulawaka Mine is a joint venture between MDN Inc. (30
percent) and Pangea Goldfields Inc. (70 percent), a wholly
owned subsidiary of ABG. Current operating capacity is
approximately 1 320 tonnes per day. Total production in 2010
was around 42 000 attributable ounces of gold.
In order to increase the mine’s value, operations in 2010
focused primarily on exploration activities aimed at extending
the mine life, and in 2011 efforts continued to be directed at
developing resources at depth. While Tulawaka’s life of mine
as at 31 December 2010 was estimated at just one and a half
years, an updated mine plan based on current successful
underground drilling results may see an extension of the mine
life.
ABG’s North Mara Mine consists of three open pits and has
an estimated mine life of around ten years. Total production in
2010 was approximately 213 000 ounces of gold. Plans were
announced in 2010 to build an underground operation here,
following an initial resource of 370 000 ounces discovered
beneath two of the open pits. Further drilling in 2011 is expected
to boost the underground resource to more than 1 million
ounces.
The Geita Mine, AngloGold Ashanti’s only operation in
Tanzania, has proven and probable reserves of 11.27 million
ounces of gold. Development of ‘Cut 6’ in the Nyankanga pit to
reach more high-grade ore has improved overall mill throughput
by 20 percent, with accelerated exploration expected to result in
a further 3.6 million ounces being added to the mine’s reserves
in the next few years. These improvements have seen output
rising to 272 000 ounces of gold in 2009, and further to 357 000
ounces in 2010, with the production forecast for 2011 between
485 000 and 506 000 ounces.
Shanta Gold Limited is an exciting gold exploration and
development company, engaged in greenfields to advanced
exploration in highly prospective under-explored areas in
Tanzania, including Chunya, Mgusu, Singida and Songea.
The Singida and Chunya developments are currently being
fast-tracked, with significant steps having been taken towards
the completion of a definitive feasibility study and securing the
mining licences for the Singida project, where mine construction
is expected to begin in early 2012.
DIAMONDS
Tanzania has been an important diamond producer for several
decades, with the open pit Williamson Mine at Mwadui in
northern Tanzania having been operated continuously for more
than 70 years, during which time it has produced over 20 million
carats. At 146 hectares, Williamson is the largest kimberlite pipe
ever to be mined economically. It regularly produces large, high-
quality stones and is a source of rare and extremely valuable
fancy pink diamonds. In November 2008, De Beers sold its
entire 75 percent stake in the mine to Petra Diamonds Limited.
The Tanzanian government owns the remaining 25 percent.
In the 2010 financial year, 101 071 carats of diamonds were
recovered compared to 84 486 carats the previous year. At the
same time, revenue increased from US$ 9.4 million to US$ 14.4
million, and the average price per carat rose by 25 percent.
While the temporary closure of the mine for redevelopment and
expansion is expected to see diamond production and exports
fall sharply during 2011, subsequent production is forecast to
41 Celebrating 50 Years of Independence

Amethyst - Photo Courtesy: René Hartslief
reach new heights given Petra’s plans to increase output to
600 000 carats annually over the medium term.
GEMSTONES
Tanzania has an abundance of coloured gemstones, including
minerals such as ruby, sapphire, amethyst and emerald, and
remains the only source of the sought-after gemstone tanzanite.
Following the formulation of the Mineral Policy (2009) and
enactment of the Mining Act (2010), minerals value addition
activities in the country have been given strong emphasis.
Government has therefore introduced a ban on the export of
rough Tanzanite weighing more than one gram, and is reviving
local and international gemstone, jewellery and mineral
shows, operationalising the Arusha Gemmological Centre and
encouraging private investment in lapidary.
In addition, the Ministry of Energy and Minerals in collaboration
with the Tanzania Mineral Dealer’s Association (TAMIDA)
decided to revive the International Gem, Jewellery and Minerals
Fair in Arusha in order to attract foreign exhibitors from East,
South and Central African countries such as Mozambique,
Madagascar, Kenya and Democratic Republic of Congo.
Tanzanite
One thousand times rarer than diamonds, Tanzanite is found
south-east of Arusha at the foot of Mount Kilimanjaro, with an
estimated resource of 50 million carats. TanzaniteOne Limited,
Tanzanite laboratory - Photo Courtesy: The Tanzanite Experience
42
a South African company with more than 700 employees, owns
the mining licence for Block C, the largest block at the centre
of a resource which produces three quarters of the world’s
tanzanite.
Using state-of-the-art optical sorters and technically advanced
processing and sorting methods, the mine has enhanced
its sorting techniques to unlock further value. Sales in 2010
amounted to US$ 15.8 million compared with US$ 12.5 million
in 2009, with production increasing to 2.2 million carats from
1.9 million carats over the same period, with an average grade
of 59 carats per tonne substantially better than the 51 carats
per tonne achieved in 2009. Furthermore, a new cutting and
polishing facility was commissioned at its Block C operation.
A ban on the export of rough tanzanite larger than 5 carats (1
gram) came into effect on 31 December 2010, and the company
and other industry stakeholders are in ongoing negotiations
with government in this regard. Nevertheless, the company
opened its own cutting and polishing facility located at the Block
C tanzanite operation in December 2010, and the continued
expansion of sales from this facility, in addition to agreements
with other cutting facilities in the country and the sale of material
not affected by the ban, should help TanzaniteOne to maintain
its revenue stream.
Tsavorite
Tsavorite, a brilliant green gemstone found in similar geology
to tanzanite, has a price per carat of approximately three times
that of tanzanite. An inferred resource of between 18.24 and
24.96 million tonnes of potentially open pit mineable tsavorite-
bearing eluvial and alluvial deposits has been established, with
TanzaniteOne to begin a bulk sampling programme in the first
half of 2011.
NICKEL
Tanzania has an estimated 1.5 million tonnes of nickel. The
Kabanga Nickel Project located in north-western Tanzania
near the Burundi border is one of the world’s largest
undeveloped nickel sulphide deposits. A 50:50 joint venture
between Barrick Gold and Xstrata Nickel, Kabanga has
measured and indicated resources estimated at 37.4 million
tonnes at 2.59 percent nickel and an additional 16 million
tonnes of inferred resources at 2.9 percent nickel, with a 1
percent nickel equivalent and 1 percent nickel cut off grade.
A peer review of the draft Social, Environmental Impact
Assessment report has been completed, and the report is being
revised concurrently with the draft feasibility study report, with
both reports expected to be submitted in the first half of 2011.
URANIUM
Tanzania has strong uranium potential (some 54 million
pounds), with numerous occurrences of surface uranium
mineralisation having been identified. Presently, the most
promising of these are Uranex NL’s Manyoni Project, situated
about 70 kilometres west of Dodoma, and Mantra Resources’
Mkuju River Project in Southern Tanzania. The mining of
uranium (U3O8) at both these projects is expected to begin
within the next year or two.
As of April 2011, Russia’s JSC Atomredmetzoloto (ARMZ) was
to acquire all of the issued share capital in Mantra, including
the flagship Mkuju River Project. Construction of the mining
43 Celebrating 50 Years of Independence

Photo Courtesy: René Hartslief
plant was scheduled to start in the first quarter of 2011, with
operations beginning in the fourth quarter of 2013. A pre-
feasibility study in March 2010 indicated that, once developed,
the mine would produce 1 650 tonnes of uranium oxide a year,
which is three times more than South Africa. This has the
potential to position Tanzania as the third, and perhaps even the
second, largest producer of uranium in Africa.
COAL
Comprising the Mbalawala sub-basin, the Ngaka Central Basin
and the Mbuyura/Mkapa sub-basin, the Ngaka coalfields are
in the Ruvumu District of South-Western Tanzania, some 40
kilometres east of Lake Nyasa. Mbalawala is being developed
through Tancoal Energy Limited, a joint venture comprising
Atomic Resource’s 85 percent owned Tanzanian subsidiary,
Pacific Corporation East Africa (PCEA), which owns a 70
percent interest in Tancoal, and the National Development
Corporation (NDC) of Tanzania, which owns 30 percent.
In September 2010, Atomic announced the results of its
bankable feasibility study for the Mbalawala Coal Project,
for the development of a conventional open-cast pit. The
study states that Mbalawala has a JORC-compliant mineable
resource of 40 million tonnes of coal and that the project could
support a production rate of around 1.5 million tonnes per
annum for a mine life of 25 years. The study also upgraded the
combined coal resource of the Mbalawala block by 18 percent,
from 212 million tonnes to 251 million tonnes. The goal is to
develop a mining operation as well as a 400-megawatt power
station, utilising proven clean coal gasification technology.
Chinese company Sichuan Hongda Corporation Limited is to
develop the Mchuchuma Coal Mine in partnership with NDC,
with the intention of mining 3 million tonnes of coal per annum
and setting up a 600-megawatt thermal power station. Half of
the generated power will be supplied to the Liganga Iron Ore
project and the rest will be fed into the national grid. Sichuan
Hongda and China Africa Development Fund plan to invest
about US$ 3 billion in both the Mchuchuma Coal and Liganga
Iron Ore Project.
Liganga Iron Ore Project
The largest known iron ore resource in Tanzania is located
in the Liganga Hills, where estimated reserves range from
200 million to over 200 billion tonnes. Associated minerals
comprise vanadium and titanium magnetite, both important
raw materials for the iron and steel industry.
44
The Kiwira Coal Mine Project in the Ileje/Kyela districts is
under development by Kiwira Coal and Power Limited (KCPL),
a company jointly owned by Tanpower Resources Limited
(70 percent) and the Government of Tanzania (30 percent).
Shares are being transferred from Tanpower Resources back
to the government in order to put the mine under the control
of National Social and Security Fund (NSSF) and STAMICO.
Planned development will see the building of a power station
within the next five years to produce 500 megawatts of
electricity, which will be sold to TANESCO.
Together, the three coal mining mega projects of Mbalawala,
Kiwira and Mchuchuma are set to become Tanzania’s biggest
energy project since attaining independence, and will have
a combined total of 1500 megawatts. This will transform the
Southern Corridor and Tanzania as a whole, which presently
has installed capacity of just 1034 megawatts.
Two substantial coalfields are present in the Ruhuhu coal basin
in Southern Tanzania, comprising eight Karoo Basins containing
11 recognised coalfields with published resources exceeding
1 billion tonnes. There is thus potential to develop both
domestic and export markets for coal, including a number
of regional industrial and power generation opportunities in
Tanzania and bordering Malawi, the Democratic Republic of
Congo (DRC), Zambia and Kenya, as well as export markets to
India and China via the ports at Mtwara and Nacala.
Exploration commenced in 2010, with field mapping undertaken
at the Gumbiro South Prospect, where outcropping coal seams
had previously been identified close to the licence boundary. A
20-kilometre strike of prospective coal geology was identified for
follow-up drilling.
Covering 3 500 square kilometres, the Songea Coal Project
in the Ruhuhu basin is owned 100 percent by Uranex NL,
and is favourably located for the discovery of large-tonnage,
high-quality thermal coal. The two most significant coalfields
– Ketewaka-Mchuchuma and Ngaka – occur in a similar
geological setting within 50 kilometres of Songea. The
exploration project currently underway is to include desktop
studies, geological mapping, field traverses and sampling to
confirm coal seams for planned drilling in June 2011.
Photo Courtesy: René Hartslief
Shanta Mining Company Limited (SMCL) is focused on bringing Tanzanian
ore bodies to account which are generally seen as too small or too difficult
by large mining companies. By focusing specifically on smaller resources
Shanta has been able to build a resource base which supports the building
of the New Luika gold mine in the Chunya district in 2011 and is undertaking
a feasibility study which we have every confidence will result in a gold mine
in the Singida area in 2012.

Shanta places emphasis on bringing New Luika and Singida into production
as quickly and efficiently as possible and also on finding additional resources
in order to grow the company into one which specialises in the economic
development of ore bodies which have been overlooked by large mining
companies.

Shanta is a London (AIM) listed company which is Tanzanian in origin, with

significant Tanzanian shareholding which intends to focus on turning small
to medium size Tanzanian ore bodies to account in the best interests of all
its stakeholders.

Shanta Mining Company Limited (SMCL) intends to make maximum use

of Tanzanian contractors and Tanzanian goods and services, where these
are legal, ethical and competitive in price and quality. Equally Shanta will
as far as possible recruit labour from the immediate vicinity of the projects
it builds. Shanta will endeavour to develop Tanzanian capacity in supply of
goods and services where such capacity does not currently exist.

Recognising that communities often do not benefit significantly from mine

development Shanta has a clear strategy to ensure that communities
directly affected by Shanta mine projects are able to benefit in a sustained
manner.

In order to achieve this Shanta will focus on supporting national, regional and local development projects
rather than creating new projects which are not foreseen in development plans and budgets. Shanta’s ability
to support these projects will depend on how well the local communities support Shanta. The more successful
Shanta projects are, the more funding and support will be available for development projects.

Shanta is specifically focused on leaving in place community trusts which will provide sustainable funding for
development projects after the mining projects have been completed and closed. The amount of capital which
is placed in these trusts will depend on how well Shanta, the affected communities and the government of
Tanzania work together to ensure an efficient mining operation.

Shanta intends to grow continually and so become a significant mining and economic entity in Tanzania.

Tel: +255 22 2601831-2/29

Fax: +255 22 2601826
PO Box 79408, Dar es Salaam
E-mail: gareth@shantagold.com
Website: www.shantagold.com
Celebrating 50 Years of Independence
Physical Infrastructure
Cost-effective and
dependable utilities as
well as modern and
efficient communications
and transport systems
are essential for future
economic growth and social
development.
Investing in key economic infrastructure, in particular electricity,
water, roads, railways, ports and airports, has been prioritised.
Recognising the importance of infrastructure for economic
growth, the government has continued to place considerable
focus on infrastructure development. As such, infrastructure
has been allocated TZS 1 505.1 billion in the 2010/11
budget compared to TZS 1 096.6 billion in the previous year,
representing an increase of 37.3 percent. Furthermore, the
Public-Private Partnership Policy of 2009 and Public-Private
Partnership Act of 2010 are facilitating the participation of the
private sector in infrastructure projects.
In 2008 the presidents of Tanzania and the United States of
America signed the five-year Millennium Challenge Compact
(MCC) agreement. The grant of US$ 698.1 million is being used
to stimulate economic growth and increase household incomes
through targeted investments in transportation, energy, and
water. Millennium Challenge Account – Tanzania (MCA-T) is
the mandated entity supervising the day-to-day activities of the
compact implementation, and works in close consultation with
the Millennium Challenge Corporation.
COMMUNICATIONS
During the past ten years, Tanzania has seen impressive
growth in Information and Communications Technology (ICT)
following a series of policy reforms. Today the industry is
characterised by a liberalised market, healthy competition and
continually improving technology and infrastructure, including
the establishment of a technology and service-neutral licensing
regime.
Other landmarks in the sector have included the landing of the
first fibre optic international submarine cables in the country
in 2009 and 2010, while the first phase of the national fibre
backbone network to connect population centres around the
country has been switched on. ICT governance has been
improved through the establishment of the National ICT Policy
(2003), with the streamlining of the sector resulting in the
merging of the Tanzania Communication Commission (TCC)
with the Tanzania Broadcasting Commission (TBC) in 2003
46
to form the Tanzania Communications Regulatory Authority
(TCRA), which regulates telecommunications, broadcasting and
postal services.
Established in 2008, the Ministry of Communication,
Science and Technology is involved in policy formulation,
monitoring and evaluation, and regulatory and legal matters
pertaining to communication, ICT, science, technology
and innovation. Current programmes and projects include:
National Communications Infrastructure Backbone Network;
establishment of a new address system and postcode;
establishment of Universal Communications Access Fund
(UCAF); Pan-African e-network (tele-education and tele-
medicine) initiatives; and the establishment of multipurpose
telecentres in Tanzania. It has been recommended that the
Ministry of Communication, Science and Technology be merged
with the Ministry of Information, Culture and Sports to form a
new Ministry of Information and Communication Technology.
Numerous new players have entered the market following the
introduction of the converged licensing regime in 2006. The
liberalisation of Voice over Internet Protocol (VoIP) telephony
and introduction of third generation mobile services and
wireless broadband networks is making mobile networks the
leading Internet service providers, backed by their extensive
national infrastructure and subscriber bases in the voice market.
Mobile money transfer and m-banking is also gaining ground.
Tanzania has two fixed-line operators – TTCL and Zantel – and
eight mobile networks, the main ones being Vodacom, Bharti
Airtel (formerly Zain), Tigo and Zantel. Four additional players
are licensed under the new converged regulatory regime. While
the country’s fixed line sector has remained stagnant since
2000, the mobile sector has in the past decade grown at over
40 percent per year. By June 2010 the number of mobile phone
subscribers had reached 18.5 million, with penetration of over
50 percent recorded by the end of 2010.
The communications sector has outpaced all other
economic sectors for a number of years. It grew by 21.9
percent in 2009, and growth of 20.2 percent is expected in
2010.
47 Celebrating 50 Years of Independence
CONSTRUCTION
The construction sector currently contributes between 6 and 7
percent to Tanzania’s Gross Domestic Product (GDP). In 2009,
activities in the sector grew at a rate of 7.5 percent, with a
growth rate of 8.6 percent forecast for 2010. This is attributed to
an increase in the construction of residential and non-residential
buildings, roads and bridges, and land improvement activities.
Tanzania is expected to receive an additional 8.5 percent in
foreign direct investment during 2010 following government’s
reversal of the decision to charge tariffs on capital goods for
construction projects. In July 2010, the Ministry of Finance
scrapped import duties on materials for the construction of
hotels, restaurants, office towers and other building projects.
Ongoing projects involving foreign companies include the
refurbishment of a hotel in Dar es Salaam and a second one in
Arusha, as well as construction relating to the mining industry.
Other construction projects range from road and airport
construction and refurbishment to residential and commercial
buildings.
TRANSPORTATION
Tanzania’s transport infrastructure comprises road, rail, air,
water and pipeline. The country relies heavily on the transport
network to connect its largely rural population to services and
economic opportunities, as well as to transfer goods and people
between local and global markets. The country’s roads, railways
and ports are of vital importance domestically; they also serve
to link the East African region, particularly Tanzania’s landlocked
neighbours such as Burundi, Malawi, Rwanda, Uganda and
Zambia, to international markets.
The 1 720-kilometre long TAZAMA pipeline, which is jointly
owned by Zambia and Tanzania, allows the importation of crude
oil from Dar es Salaam to Ndola refinery in Zambia. There is
another pipeline of 232 kilometres which is used to transport
natural gas from Songo-Songo to Dar es Salaam.
In 2003, a National Transport Policy was put in place in order
to guide the development of the sector, and a Public-Private
Partnership (PPP) Policy and Act have been developed. The
ten-year Transport Sector Investment Programme (TSIP)
presents Tanzania’s strategy for achieving future transport-
related goals. TSIP is being implemented in two five-year
phases, from 2007/08 to 2016/17.
Transport services grew by 6.0 percent in 2009, with a
projected rise to 6.9 percent in 2010.
Transport corridors
Tanzania has two primary corridors:
• The Central Transport Corridor connects Dar es Salaam and
the coastal regions with the Western and Lake Victoria regions
of Tanzania, thereby linking the country’s main port to the
neighbouring countries of Burundi, Rwanda, Uganda and the
Democratic Republic of Congo (DRC) via Dodoma.
• The Southern Corridor links Dar es Salaam to Zambia in the
south-west via the 1 860-kilometre TAZARA railway line, which
then connects with Zambia Railways. Some 970 kilometres of
line is in Tanzania and 890 kilometres in Zambia.
Current initiatives include the Second Central Transport
Corridor Project, which is being undertaken with assistance
48
from the World Bank. The project includes the construction
of Bus Rapid Transit (BRT) infrastructure in Dar es Salaam
to upgrade the public transport network and reduce traffic
congestion, the upgrading of 170 kilometres of road between
the towns of Korogwe and Same to trunk road standard, and
work to improve the Zanzibar Airport runway. It is anticipated
that the project will be completed by the end of 2011.
Road network
The length of Tanzania Mainland’s total road network is
estimated to be 86 472 kilometres, based on the Road Act of
2007. The Ministry of Infrastructure Development, through the
Tanzania National Roads Agency (TANROADS), manages
about 29 847 kilometres, comprising 10 601 kilometres of trunk
roads (5 062 kilometres paved and 5 538 kilometres unpaved)
and 19 246 kilometres of regional roads (646 kilometres
paved and 18 600 kilometres unpaved). The remaining
urban, district and feeder roads (56 625 kilometres in total)
are the responsibility of the Prime Minister’s Office Regional
Administration and Local Government (PMO-RALG).
In the past decade, the condition of trunk and regional roads
has steadily improved due to various maintenance interventions
and development activities. According to President Jakaya
Kikwete, some 11 000 kilometres of road network across the
country will be tarmacked before 2015. Current projects include
the 17.2 kilometre Mwenge-Tegeta road in Dar es Salaam, a
dual carriageway project financed by the government of Japan
and scheduled for completion by 2013.
Collections for the Road Fund have increased from TZS 73
billion in 2005/06 to TZS 218.4 billion in 2008/09 and further to
TZS 284 billion in 2009/10. However, this funds only 59 percent
of road maintenance needs.
Current roads sector projects under the MCA-T include:
• Tanga-Horohoro road, involving upgrading from gravel to
asphalt concrete a stretch of 65 kilometres of the highway
connecting Tanga and Horohoro at the Kenyan border.
• Songea-Namtumbo and Peramiho-Mbinga road, part of
the Mtwara-Mbamba Bay road, comprising a stretch of
61 kilometres between Songea and Namtumbo and a stretch
of 78 kilometres between Peramiho junction and Mbinga town,
which are being upgraded from earth to double bituminous
surfacing.
• Tunduma-Sumbawanga road, comprising three sections –
Tunduma-Ikana (64 kilometres), Ikana-Laela (64 kilometres)
and Laela-Sumbawanga (96.5 kilometres).
• Pemba Rural roads, rehabilitation of a total of 35 kilometres
of selected rural roads in the north region of Pemba Island in
Zanzibar to bitumen standard.
Air transport
Established in 1999, the Tanzania Airports Authority (TAA) is
a semi-autonomous agency that owns, operates, develops
and maintains 62 airports and airstrips on Tanzania Mainland,
including Julius Nyerere International Airport (JNIA) and
Kilimanjaro International Airport (KIA), with the latter having
been concessioned to the Kilimanjaro Airports Development
Company (KADCO). Other international airports include
Zanzibar and Mwanza, with the main domestic airports being
Arusha and Mtwara.
Since 2005, the TAA and the Tanzania Civil Aviation Authority
(TCAA) have implemented a number of development projects
aimed at modernising the country’s airports and expanding
the air transport infrastructure. Construction work, involving
the rehabilitation of taxiways, runways and sewage system,
is underway at JNIA, with the project set to be completed by
May 2011. Upgrading is also ongoing at KIA and Zanzibar
International Airport, where the runway is being improved, and
the domestic airports of Mwanza, Bukoba, Dodoma, Kigoma,
Mafia and Songwe. In addition, the upgrading of the Mafia
Island Airport is being undertaken through the MCA-T.
As a result, the number of registered air operators in the country
has been steadily increasing, while the aviation industry has
grown at an average of 9 percent per annum. During 2009
Air Tanzania flew 60 018 passengers, while Precision Air flew
583 000 passengers and Coastal Aviation some 141 995
passengers.
Despite government’s efforts to acquire a suitable company to
invest in and run the national carrier, Air Tanzania Company Ltd
(ATCL), the airline was grounded in March 2011. PrecisionAir
and Fly 540 were expected to take over destinations previously
served by Air Tanzania. PrecisionAir’s plans to list on the Dar
es Salaam Stock Exchange (DSE) will help it to acquire two
Boeing 737-300s and two ATR72-500s, enabling it to expand its
routes.
Marine and lake transport
Tanzania has a total of 63 ports, nine along the coast and 54 on
the lakes. Bordered to the east by the Indian Ocean, Tanzania’s
49
coastline boasts the bustling ports of Dar es Salaam, Tanga
and Mtwara, in addition to six smaller coastal ports, while there
are also a number of inland ports on the lakes of Victoria,
Tanganyika and Nyasa – 11 main lake ports and 43 smaller
ones.
Most marine transport is routed through the port of Dar es
Salaam, which handles 90 percent of the country’s total ocean
freight and is an important outlet for neighbouring land-locked
countries. The Dar es Salaam container terminal is operated by
Tanzania International Container Terminal Services (TICTS).
There are plans to increase the capacity of seaports from the
current 10 000 million tonnes to about 20 000 million tonnes per
year.
Dar es Salaam port is a major gateway to the eastern DRC,
Rwanda, Burundi, Zambia, Malawi and Uganda.
In the past few years, Tanzania has seen huge improvements
in its capacity to efficiently move goods and handle other trade
logistics, with a vast reduction in container dwell time as well as
turnaround time for ships at Dar es Salaam port. This follows
investment by the Tanzania Revenue Authority (TRA) of
US$ 19 million and the Tanzania Ports Authority (TPA) of some
€12 million to modernise ports by providing additional cargo
handling equipment and improving and upgrading facilities.
Furthermore, government has ended the TICTS monopoly in
an effort to increase efficiency by allowing competition in the
provision of services.
While three years ago ships could wait anything up to 20 days
before offloading at Dar es Salaam port, by 2011 this had fallen
to four days or less. The creation of the inland container depots
(ICDs) has also facilitated the movement of containers, reducing
the level of congestion. ICDs at the moment can handle some
Celebrating 50 Years of Independence
50
The Ministry of Communications, Science and Technology was established in February, 2008 as per Government Notice No. 20
of February, 2008.

Vision and Mission

The Vision of the Ministry is: “To have a knowledge based society with the capacity and capability to harness Science, Technology
and Innovation and ICT for the transformation of the economy that is sustainable and globally competitive”.
Its Mission is: “To facilitate human capital development and knowledge generation for sustainable wealth creation and better
livelihood of Tanzanians through policy development, and promotion of science, technology and communications”.

Roles and Functions

The roles and functions of the Ministry are:
i) To initiate the formulation of Policy guidelines and conduct review of Policies of Postal Services, Telecommunications Policy,
Science, Technology and Innovation, Research and Development and Information, Communications and Technologies;
ii) To monitor, evaluate and set standards during implementation of policies under the Ministry;
iii) To coordinate and promote the use of Information, Communication and Technology (ICT), Communication Services, Science,
Technology and Innovations (STI), and Research and Development (R&D) for the development of the Nation in line with
involvement of the private sector; and
iv) To oversee regional and international communication and linkages to the attainment of the Ministry’s policy objectives.

TANZANIA BECOMES ICT HUB FOR INTERNATIONAL TRAFFIC TRANSIT

The National ICT Broadband Backbone (NICTBB) infrastructure project is a bold step taken by the Tanzania Government
to connect all regional and district headquarters with high capacity, state-of-the-art Fibre Optic Network. The NICTBB, when
completed, will connect Tanzania with its neighbouring countries (Uganda, Rwanda, Burundi, Zambia, Kenya, Malawi, Congo DRC
and Mozambique) as well as connect the region to the international submarine cable landing stations on the shores of the Indian
Ocean especially Dar es Salaam and Mombasa. This project is in line with the National ICT Policy (NICTP) objective of “building,
strengthening and developing a reliable and sustainable National ICT Infrastructure to provide reliable and affordable connectivity
of broadband quality, within which internet access would be among services that can be provided countrywide”.

Given that Tanzania is strategically located on the shores of the Indian Ocean and surrounded by five landlocked countries
(Rwanda, Burundi, Uganda, Malawi and Zambia), it is evident that completion of the NICTBB project will make Tanzania an ICT hub
for international traffic transit. The NICTBB is being executed as part of the ‘National ICT Infrastructure Development Programme’.
This programme is expected to evolve the National ICT Broadband Backbone to a fully meshed network as well as provide an IP
over SDH core network to enable businesses and individuals easy access to communication services. The master plan for ICT
Infrastructure Development Program is expected to be completed by end of year 2015. The programme will deliver a total of about
20,000km of OFC network as well as a 400Gbps countrywide IP Network.

Phase I of the project has a route length consisting of 2,305km of new Optic Fibre and 2,050km of existing Optic Fibre. The
implementation (trenching and laying of OFC) for phase I started on 20th July, 2009 and completed in June, 2010. When
completed (phase I and II), the National ICT Infrastructure Backbone will provide reliable and efficient connectivity and access
to communications services to all regional and district headquarters, public and private institutions in Tanzania (Mainland and
Zanzibar) at affordable prices. The Government of Tanzania desires to continue evolving the National ICT Infrastructure Backbone
to realize a coherent Future – Proof National ICT Infrastructure consisting of a fine – meshed Optic Fibre Cable network, initially
with points of presence (PoPs) at all regional and district headquarters.

The project implementation for Phase I has been well executed and has covered 16 regions out of 26. In addition, Phase I allows
for cross border connectivity to six (6) neighbouring countries (Kenya, Uganda, Malawi, Burundi, Rwanda and Zambia). All the OFC
materials and equipment supplied meet the international standards (ITU-T).

The NICTBB is sustainable and has high capacity that will enable Tanzanians to realize maximum benefits from ICT opportunities.
Surely, the NICTBB will bring in immense business opportunities to Tanzanian Communications industry as it will enable almost
every business to be conducted easily using high quality broadband enabled ICT services. A number of activities, including but not
limited to, video conferencing, e-health, e-education, e-commerce and VoIP calls have now been made possible through the high
capacity bandwidth available on the National ICT Broadband Backbone.

For further information contact:

The Permanent Secretary, Ministry of Communication, Science and Technology.
Plot 1168/19 Jamhuri Street • P. O. Box 2645, DAR ES SALAAM, TANZANIA.
Tel: +255 (22) 2111254/7 • Fax: +255 (22) 2112533.
E-mail: mst@mst.go.tz • Web: www.mst.go.tz

51 Celebrating 50 Years of Independence

9 000 containers outside the port at a cheaper storage rate
to that charged for those stored at the port. Nevertheless,
challenges remain, such as lack of space to increase capacity
(in the case of Dar es Salaam port) and inadequate transport
services from other modes such as railways and roads.
Tanzania’s main lake ports of Mwanza, Kigoma and Kyela
are used to transport cargo and passengers inland as well
as between neighbouring countries. There are investment
opportunities in reliable ferry connections to carry containerised
and transit cargo on Lake Victoria and Lake Tanganyika. There
are presently 16 operating vessels on the lakes.
Rail transport
Tanzania’s railway network is 3 676 kilometres in length,
consisting of two separate railway systems which operate
on different gauges – the 2 706-kilometre Tanzania Railways
network and the 975-kilometre narrow-gauge line run by the
Tanzania Zambia Railway Authority (TAZARA). During 2008,
railway infrastructure comprised 216 stations, with 1 569 000
passengers transported and 954 000 tonnes of cargo.
In 2007, TRC was concessioned to Tanzania Railways Limited
(TRL). However, the performance of the rail company has
continued to decline, mainly due to problems such as increased
competition from other transport modes and alternative routes,
as well as dilapidated infrastructure and below-standard
services as a result of outdated equipment and shortages of
locomotives and wagons.
TAZARA was deigned to transport 5 million tonnes of cargo
per year and is currently moving just 600 000. There is room
to expand cargo activities, with Zambia’s copper and fertilisers
destined for the Dar es Salaam port, and there are also
opportunities to increase the number of passengers and expand
tourism. In 2010 the railway’s average revenue was around
US$ 3 million per month, with at least US$ 5 million needed
per month to comfortably cover day-to-day operational costs.
A US$ 40 million loan was granted to TAZARA in December
2009 through the governments of Tanzania and Zambia by
the Chinese under the 14th Protocol. Discussions for the
concessioning of the railway are ongoing.
WATER & SANITATION
Development targets set out in the National Development Vision
2025, Millennium Development Goals and National Strategy for
Growth and Reduction of Poverty (MKUKUTA) aim to achieve
by 2010: clean and safe water to 65 percent and 90 percent of
the population in rural and urban areas respectively (up from
53 percent and 73 percent in 2003); the expansion of urban
sewerage from 17 percent in 2003 to 30 percent; adequate
sanitary facilities in all schools; 95 percent access to basic
sanitation; and to reduce water-related environmental pollution
levels from 20 percent in 2003 to 10 percent.
The Water Sector Development Programme (WSDP) is one of
the largest water sector programmes in Africa, with a
US$ 1 billion budget over a five-year period (2007-2012),
and was initiated to strengthen institutions for integrated
water resources management as well as to improve access
to and delivery of sustainable water supply and sanitation
services. Under the WSDP, Urban Water Supply and Sewerage
Authorities (UWSSAs) have been established in 19 major urban
52
centres. In addition, the Dar es Salaam Water and Sanitation
Authority (DAWASA) has been established. Current priorities
include strengthening the rehabilitation and construction of
sewage water infrastructure in urban centres for environmental
protection.
The MCA-T has a number of water sector projects underway,
including:
• Expanding the capacity of Lower Ruvu Water Treatment Plant
serving Dar es Salaam and coastal regions from about
180 million to about 270 million litres per day by 2013
• Reducing Non-Revenue Water (NRW) in Dar es Salaam
through rehabilitating and extending the water distribution
network from Tegeta up to Bagamoyo town and assessing
water uses and losses
• Improvement of Morogoro Municipality water supply system,
comprising the rehabilitation and construction of Mambogo
Water Treatment Plant and rehabilitation of Mafiga Treatment
Plant facilities, which should increase water production from
the current 22 million to 33 million litres per day by 2013
ENERGY
The state-owned Tanzania Electric Supply Company
(TANESCO) is responsible for the generation, transmission,
distribution and sale of electricity across Tanzania Mainland,
and also provides bulk power supply to the State Fuel and
Power Corporation (SFPC) of Zanzibar. Currently, TANESCO
has an installed capacity of 561 megawatts from its six
hydropower plants of Kidatu, Kihansi, Mtera, Pangani, Hale and
Nyumba ya Mungu, and 145 megawatts from its two gas-fired
power plants in Dar es Salaam. There are also a number of
diesel-based generators in the more isolated areas contributing
around 36-megawatts in total, with a 60-megawatt plant at
Nyakato, Mwanza, scheduled to join the grid in 2011.
In addition, TANESCO purchases 282 megawatts from
independent power producers (IPPs), including diesel-based
Independent Power Tanzania Ltd (IPTL) and SONGAS with
the Songo-Songo gas to electricity project. IPPs supplied 33
percent of the country’s total power requirements in 2008.
Overall, there are a total of 334 megawatts of installed
capacity in natural gas fired turbines, with about 25
industries in Dar es Salaam also using natural gas as a
source of energy.
Medium-term strategies include increasing power generation,
particularly with regard to distribution and increased access
in rural areas. In addition, with the National Energy Policy
emphasising utilisation of locally available energy resources,
government is intensifying efforts to establish national oil
reserve facilities and expand gas production facilities at Songo-
Songo and Mnazi Bay. The growth rate of electricity was 16.2
percent in the third quarter of 2010 compared to 11.2 percent
in the corresponding quarter of 2009. The higher growth rate
was attributed to the increase in both hydro and gas power
generated.
Part of the TANESCO National Grid Reinforcement Strategy,
the Tanzania Backbone Interconnector Project is expected to
provide access to cost-efficient electricity. In December 2010
the utility provider was granted a US$ 135 million loan from the
European Investment Bank (EIB) in order to co-finance a new
53 Celebrating 50 Years of Independence
 THE UNITED REPUBLIC OF TANZANIA

TANZANIA COMMUNICATIONS REGULATORY AUTHORITY (TCRA)

Introduction
The Tanzania Communications Regulatory Authority (TCRA) is a quasi independent Government body established
under the Tanzania Communications Regulatory Act No.12 of 2003 to regulate the electronic communications
(telecommunications and broadcasting), and Postal services, and management of the national frequency spectrum
in the United Republic of Tanzania. The Authority became operational on 1st November 2003 and effectively took
over the functions of the now defunct Tanzania Communications Commission (TTC) and Tanzania Broadcasting
Commission (TBC) respectively.

TCRA Vision, Mission and Strategy

Vision
To be a world-class regulator, creating a level playing field among communication service providers and promoting
accessible and affordable services to consumers in Tanzania.

Mission
To develop an effective and efficient communications regulatory framework, promote efficiency among the
communications services providers, and protect consumer interests with an objective of contributing to socio-
economic and technological development in the United Republic of Tanzania.

Strategic objectives
• To establish a conducive environment that encourages private participation in network development in order to
achieve the goal of universal service.
• To promote provision of efficient and reliable information and communication services based on international
standards through administration of incentive regulation;
• To protect interests of consumers through rigorous enforcement of established standards and licence conditions;
• To establish a level playing field in order to promote effective competition with the objective of developing
advanced infrastructure, technology, human capacity and products thus serving as the engine for economic
growth and development.
• To collaborate with institutions of higher education and other stakeholders to conduct research with the objective
of promoting Information and Communication Technologies.
• To collaborate with other regulators and international organisations with the objective of harmonizing standards
and technologies in order to enhance technical capability and improve quality of ICTs goods and services.
• To encourage sharing of infrastructure facilities in order to protect the environment and to optimize the utilization
of available resources.
• To exercise efficient management of scarce national resources namely radio frequency spectrum and
telecommunication numbers.

TCRA has the following functions;

• To issue, renew and cancel licences;
• To establish standards for regulated goods and services;
• To establish standards for the terms and conditions of supply of the regulated goods and services;
• To regulate rates and charges;
• To monitor the performance of the regulated sectors in relation to:-
1) Levels of investment;
2) Availability, quality and standards of service;
3) The cost of services;
4) The efficiency of production and distribution of services
• To facilitate the resolutions of complaints and disputes between operator vs operator and consumer vs operator;
• To disseminate information about matters relevant to the functions of the Authority.

In carrying out its functions, the Authority strives to enhance the welfare of the Tanzanian society by:-
• Promoting effective competition and economic efficiency;
• Protecting the interests of consumers;
• Protecting financial viability of efficient suppliers;
• Promoting the availability of regulated services to all consumers including low income, rural and disadvantaged
consumers;
• Enhancing public knowledge, awareness and understanding of the regulated sectors including:-
1. The rights and obligations of consumers;
 2. The way in which complaints may be initiated and resolved;
3. The duties, functions and activities of the Authority

Types of licences
(A) Converged Licence Framework (CLF)
The Converged licences are technology neutral and service neutral.
(i) Network Facility Licence (NFL)
(ii) Network Service Licence (NSL)
(iii) Application Service Licence (ASL)
(iv) Content Service Licence (CSL)

The Converged Licence Framework has four market segments;

1) International,
2) National,
3) Regional and
4) District

(B) Other Licences

There are seven (7) licence categories issued by the Authority that do not fall under the Converged Licensing
Framework (CLF). These are:-
(i) Postal Services Licence
(ii) Courier Service Licence; There are four categories of these;
• International,
• East African
• National,
• Inter-City
(iii) Radio Communications and Frequency Spectrum User Licence
(iv) Installation and Maintenance Licence
(v) Importation and Distribution Licence
(vi) Equipment Certification Licence
(vii) Numbering and Electronic Address Licence

Accomplishments and ongoing activities of the Authority

• Implementation of a converged licensing frame work covering Telecoms, Broadcasting and Postal service;
• Introduction of internet exchange points to cater for national internet traffic;
• Introduction of tzccTLD domain name registration;
• Implementation of an interconnection determination 1 in 2004 and 2 in 2007 to facilitate easy communication
across networks at cost based rates;
• Telecentres opened in a number of regions across the country;
• Introduction of consumer complaints guidelines;
• Sensitization of operators on consumer issues;
• Initiation and coordination of post code new physical addressing project;
• Coordination the Central equipment identification and SIM registration;
• Implementation of a new and comprehensive numbering plan in 2006;
• Content monitoring in broadcasting;
• Introduction of child helpline;
• Introduction of zonal office;
• Awarded as a best regulator in Africa in 2006 and in 2009.

TCRA Offices and Contacts

HEAD OFFICE TCRA Southern Highlands Zone Office
Tanzania Communications Regulatory Authority (TCRA) NSSF Building, Karume Avenue
Mawasiliano Towers P. O. Box 1375, MBEYA
Plot 2005/5/1, Block C, Sam Nujoma Road Tel: +255 25 2502940, Fax: +255 25 2502941
P.O Box 474, DAR ES SALAAM E-mail: mbeya@tcra.go.tz
Tel: +255 22 2412011-2; +255 784 558270
Fax: +255 22 2412009-10 TCRA Lake Zone Office
E-Mail: dg@tcra.go.tz NSSF Commercial Complex
Website: www.tcra.go.tz 4th Floor, Wing B, Kenyatta Road
P.O Box 3108, MWANZA
TCRA Northern Zone Office Telephone/Fax: +255 28 2541082
Summit Centre, Third Floor, Block B, Sokoine Road Email: mwanza@tcra.go.tz
P. O. Box 15675, ARUSHA
Tel: +255 27 2548947 TCRA Zanzibar Zone Office
E-mail: arusha@tcra.go.tz Plot No. S/CHR 95, Chukwani Area
P. O. Box 3284, ZANZIBAR
TCRA Central Zone Office Tel: +255 24 2230562, Fax: +255 24 2235060
Plot No. 7B, Block 41, Natron, Kisasa Area E-mail: zanzibar@tcra.go.tz
Dar es Salaam Road
P. O. Box 2229, DODOMA
Tel: +255 26 2350021
E-mail: dodoma@tcra.go.tz
 667-kilometre, 400-kilovolt AC double circuit transmission line
that is to be built between the cities of Iringa, Dodoma, Singida
and Shinyanga. Altogether, the transmission project will receive
US$ 468 million.

Under the auspices of MCA-T, energy sector projects worth

US$ 206 million are presently underway. The Hydro Project,
Cable Project and Transmission and Distribution Project have
been arranged into five design and build contract packages,
including:
• 8-megawatt Malagarasi hydropower station and Kigoma
Transmission and Distribution network
• Zanzibar Interconnector: construction of the second
Submarine Cable (100 megawatts) linking Unguja Island to
Tanzania’s national grid at Ubungo, some 40 kilometres away
• Zanzibar Interconnector 132-kilovolt Overhead Lines
• 24 substations (23 on Mainland plus Mtoni in Zanzibar)
• Distribution Network Rehabilitation and Extension to supply
power to villages and urban areas in six mainland regions
(Tanga, Morogoro, Iringa, Mbeya, Dodoma and Mwanza),
which involves construction of a total of 78 networks made up
of some 252 kilometres of 11 kilovolts and 1 247 kilometres of
33 kilovolts

Thermal power projects

Three coal mining mega projects are set to become Tanzania’s
biggest energy project since attaining independence, and will
have a combined total of 1500 megawatts. Atomic Resource’s
Mbalawala Coal Project will see the building of a 400-
megawatt power station, utilising proven clean coal gasification
technology. The Mchuchuma Coal Mine development involves
the setting up a 600-megawatt thermal power station, with
half the generated power to be supplied to the Liganga Iron
Ore project and the rest fed into the national grid. KCPL’s
56
Kiwira Coal Mine Project involves the development of a power
station within the next five years to produce 500 megawatts of
electricity, which will be sold to TANESCO.

Oil and gas development

Exploration for oil and gas in Tanzania began in the 1950s,
and natural gas has been used since July 2004 for power
generation, with the southern regions of Mtwara and Lindi now
accessing reliable power supply from natural gas instead of the
previous thermal generators.

Tanzania’s four gas reserves comprise Songo-Songo, Mnazi

Bay, Mkuranga and Kiliwani. Songo-Songo has proven reserves
of about 850 billion cubic feet and possible reserves of more
than 1.5 trillion cubic feet, while Mnazi Bay has 242 billion cubic
feet of proven reserves and possible reserves of more than 2
trillion cubic feet. The Mkuranga and Kiliwani gas reserves were
discovered in 2007 and 2008 and have yet to be appraised.

Plans are underway to expand power generation using natural

gas from both the Songo-Songo and Mnazi Bay gas fields. With
Tanzania having great potential for further reserves, the Ministry
of Energy and Minerals is in the process of enacting legislation
and making regulations which will cater for the processing,
transportation, distribution and storage of natural gas.

57 Celebrating 50 Years of Independence

Social Infrastructure
The implementation of the
National Strategy for Growth
and Reduction of Poverty
– MKUKUTA – has seen
improvements registered in
development indicators for
both education and health in
the five-year period leading
up to 2010.
HEALTH CARE
Survey data collected from various sources, including the
United Nations Children’s Fund (UNICEF), the Joint United
Nations Programme on HIV and AIDS (UNAIDS) and the World
Health Organisation (WHO), suggest that Tanzania’s health
profile is typical of developing countries. Its total fertility rate
remains high (between 5.2 and 5.7), while life expectancy at
birth is just under 52 years.
While in some areas services have improved markedly and
health indicators are generally more positive, the country
continues to face a number of serious challenges, and it is
unlikely that all MKUKUTA 2010 health targets as well as 2015
health Millennium Development Goals (MDGs) will be met.
Reducing the maternal mortality rate remains a major challenge
for Tanzania. Progress has also been slow in the area of safe
water and sanitation.
In 2009/10 government allocated TZS 800.4 billion for
the health sector, and a further TZS 1 181.7 billion in the
2010/11 budget. This is equal to 12 percent of the total
national budget, while the country’s aim is to reach 15
percent.
The strategic focus of the health sector includes the ongoing
implementation of various public and primary health
programmes and the strengthening of mother and child health
services (MCH), with the spotlight on:
• Continued implementation of The Primary Health Services
Development Programme 2007-2017 (MMAM), with the
objective of improving the quality of reproductive and child
health
• Continuation of the National HIV/AIDS Control Programme
• Strengthening the capacity of human resources at all levels
• Rehabilitating and constructing health centres and acquiring
equipment
• Improving the centre for heart surgery at Muhimbili National
Hospital
58
Health Sector Performance Profile Report
A number of positive developments have taken place in
Tanzania’s health sector. These include confirmed gains in child
survival, with progressive and significant declines in under five
and infant mortality. Newborn deaths are still a challenge, and
account for almost 30 percent of all deaths in children younger
than five years in Tanzania. However, while infant mortality
rates increased from 91 per 1000 live births in 1990 to 99 per
1000 live births in 1999, between 2000 and 2009 the number
of deaths decreased to 51 per 1000 live births (a 49 percent
decrease).
Achievements in child health are attributed to health sector
reforms, increased coverage of effective interventions;
immunisation, Vitamin A supplements, Integrated Management
of Childhood Illness, improved malaria control through
Insecticide Treated Nets and access to effective anti-malarial
treatment. Vaccination against measles remains high (88
percent) and is set to rise towards the target of 90 percent by
2010.
The tuberculosis (TB) treatment success rate is high at 84.7
percent, one of the highest in the world. Furthermore, various
studies indicate that major reductions have taken place in
the incidence of malaria. The prevalence of malaria shows a
drastically decreasing trend from 49.2 percent in 2000 to 0.8
percent in 2009.
The government has scaled up specialty services, including
neurosurgical services in Tanzania. It has equipped major
hospitals with essential diagnostic equipment such as CT scan
machines, MRI, modern x-ray machines and image intensifiers.
It has recently acquired a brand new ultramodern neurosurgical
operating microscope: a Pentero.
The Muhimbili Medical School is being extended so that it can
take in more than 12 000 students as compared to the current
2 400. A new school of medicine at the University of Dodoma is
currently under construction.
The implementation of MMAM is ongoing, with increased
student enrolment in health training institutions, posting of
trained staff to councils and building of more dispensaries and
health centres to increase access to services.
Despite these positive steps, a number of challenges remain,
particularly in areas such as the maternal mortality rate, with no
improvement in skilled attendance at birth and no net increase
in the skilled human resource situation. The health sector will
require a threefold increase in workforce with an annual tenfold
increase in hire rate over the next ten years if MMAM is to be
successfully implemented.
Future development within the sector is contingent upon
urgent and sustained strengthening of emergency obstetric,
neonatal and child care (EmONC) at all levels to address high
maternal and newborn mortality in Tanzania. Presently only 5
percent of health facilities provide EmONC services. Continued
implementation of MMAM is also vital, particularly the human
resource component.
Furthermore, existing non-functioning health facilities need to
be operationalised in collaboration with PMO-RALG. There is
also an urgent need to review and strengthen the functioning
of the Health Management Information System (HMIS). For
improved management, sustained supportive supervision at all
levels is also needed.
HIV/AIDS
HIV/AIDS remains a significant public health concern in
Tanzania. According to the Tanzania HIV & AIDS and Malaria
Indicator Survey of 2008, HIV prevalence decreased between
2003 and 2008 as the proportion of people infected dropped
from 7 to 5.7 percent. This is estimated to be close to 1.5 million
people, 10 percent being children. Women were more affected
at 6.6 percent of the total population compared to 4.6 percent
for men.
Tanzania is one of eight countries in the world to pilot the
Delivering as One (DaO) reform, which deepens the role of
the UN in effective monitoring of the epidemic.
60
The Tanzanian National HIV and AIDS Policy was reviewed
in mid March 2010. It took into consideration demographic,
technological, economic and socio-cultural changes since the
policy was developed in 2001. Such development includes
drivers of the epidemic, access to ARVs, HIV vaccination and
compliance with other government directives. The National
Multi-Sectoral Prevention Strategy 2009-2012 and Gender
Operational Plan 2010-2012 were launched in April 2011.
Tanzania’s AIDS response is making it possible to administer
antiretroviral drugs to nearly 70 percent of HIV-positive pregnant
women in 2011. This service is available in 80 percent of health
facilities in the country. The aim is to prevent HIV transmission
from mother-to-child (PMTCT).
Government is targeting regions like Kagera and Iringa, where
HIV/AIDS prevalence has been above the national average.
The Tanzania Commission for AIDS (TACAIDS), established
in 2001, provides leadership and coordination of multi-sectoral
responses. The Tanzania Parliamentarians AIDS Coalition
(TAPAC), formed in 2001, counts more than 300 MPs as
members.
EDUCATION & TRAINING
Education is identified as a main area of focus in the
government’s National Strategy for Growth and Reduction
of Poverty (MKUKUTA). The Education Sector Development
Programme (ESDP), was conceived in the early 1990s as a
means of addressing school infrastructure shortages as well
as the need for increased enrolment, gender balance and
outreach to those segments of the population unable to access
education. Two other anchor programmes were adopted to
spearhead the implementation of this major programme. These
comprised the Primary Education Development Programme
(PEDP) and the Secondary Education Development
Programme (SEDP).
 ESRF
ECONOMIC AND For more information please contact:
The Executive Director
SOCIAL RESEARCH Economic and Social Research Foundation (ESRF)

FOUNDATION
Tel: +255 22 2790260
E-mail: esrf@esrf.or.tz • Website: www.esrftz.org

The Economic and Social Research Foundation (ESRF) is an independent policy research institution based in Dar es Salaam, Tanzania. It was established in 1994
after two years of analysis, planning and development in response to the need for development of institutional capacity for policy analysis. The primary objectives of the
Foundation are to strengthen capabilities in policy analysis and decision making, to articulate and enhance understanding of policy options in Government, the public
sector, the donor community, and the growing private sector and civil society. ESRF played a catalytic role in the country’s socio-economic reforms in the late 1980s and
early 1990s.

ESRF Vision and Mission

Vision: to become a regional and international centre of excellence in capacity development for policy analysis and development management, policy research, and
policy dialogue by the year 2015.
Mission: Advancing knowledge and analysis to public and private sector entities through sound policy research findings, capacity development and by advocating
good development management practices.

ESRF Objectives
The overall objective of ESRF is to develop capacity in economic and social policy analysis and development management by conducting and disseminating results
from social and economic policy research, facilitating policy dialogue and conducting training on policy analysis and development management.
ESRF Headquarters
The activities of ESRF are as follows:
Research and Publications
• Growth and wealth creation
• Governance
• Globalisation and regional integration
• Social services and the quality of life
• Natural Resource Management Unit
Capacity Development and Policy Voice
• Short-term training
• Post-graduate Diploma in poverty analysis (funded by UNDP)
• IFP (International Fellowship Programme - funded by Ford Foundation International Fellowship Programme)
• Policy dialogues
Commission Studies - Demand-driven studies
Knowledge Management - ICT (Information and Communication Technology and Library)
• TZ Online - www.tzonline.org
• TAKNET (Tanzania Knowledge Network) - www.taknet.or.tz
• Tanzania Development Gateway - www.tanzaniagateway.org

That the Tanzanian government considers education a top Education infrastructure

priority is evidenced by the fact that the sector receives more
public funding than any other sector in the country. In the
2009/10 national budget, education was allocated TZS 1 743.9
billion. In the 2010/11 national budget, education was allocated
TZS 2 045.5 billion.
In 1974 the Tanzanian government formulated the Universal
Primary Education Policy, which saw a primary school
being built in each village in the country.
The sector has seen significant increases in enrolment rates at
all levels. By 2008, net enrolment in primary education reached
97.2 percent from 94.8 percent in 2005, while that of secondary
education reached 26.1 percent from 10.1 percent in 2005.
The construction of more classrooms and schools has seen
enrolment in primary schools almost double in the past ten
years, from 4 382 410 pupils in 2000 to 8 441 553 in 2009.
During the same period, the number of secondary schools
increased more than fourfold from 927 in 2000 to 4 102 in 2009,
with enrolment growing almost six times from 261 896 to
1 466 402. This puts Tanzania on course to meet not only the
2010 MKUKUTA targets but also the 2015 MDGs targeting
education.
Bilingual education (English and Kiswahili) is the norm, and is
mandated by law. The structure of the formal education and
training system comprises two years of pre-primary education,
seven years of primary education, four years of junior
secondary, two years of senior secondary and up to three or
more years of tertiary education.
In the education sector, one of the main achievements in
the past few years is a higher enrolment rate. For primary
education, the net enrolment ratio in Mainland Tanzania
reached 95.4 percent in 2010.
There are 32 universities in Tanzania, including University of
Dar es Salaam, the oldest (1961) and largest university in the
country, Sokoine University of Agriculture (1984) in Morogoro,
and Muhimbili University of Health Sciences in Dar es Salaam.
Of these, 11 are public institutions and 21 are privately run. The
Inter-University Council for East Africa (IUCEA) has used its
5-year Corporate Strategic Plan for the period 2006/2007 to
2010/2011 to enable greater access to tertiary education for
Tanzanians.
Ministry of Education, Zanzibar - Photo Courtesy: Marie Gibbons

There is nevertheless an acute shortage of teachers, with the

present demand for primary school teachers in the region of
103 321, and a current teacher-student ratio of just 1:50. This
underlines the need for teacher training. The government has
thus invested in teacher training at the University of Dar es
Salaam, Chang’ombe Teachers University, Mkwawa University
and the University of Dodoma. It has also launched the
Tanzania Beyond Tomorrow project, which will use Information
and Communication Technology to enable learners to access
the Internet

61 Celebrating 50 Years of Independence

Zanzibar
An archipelago situated
about 35 kilometres off the
coast of mainland Tanzania,
Zanzibar has its own
autonomous government,
while remaining part of
the United Republic of
Tanzania.
Zanzibar comprises more than 50 small islets and two
main islands (Unguja and Pemba), which are the focus of
most economic activity. Unguja, also known as Zanzibar, is
the larger and more developed of the two islands at 2 332
square kilometres, while Pemba is the smaller at 868 square
kilometres.
The vast majority of the population reside on the two main
islands, and Zanzibar is one of the most densely populated
and fastest growing areas on the continent. Over 60 percent
of Zanzibaris live on Unguja (Zanzibar), which has some 469
people per square kilometre and a population growth rate of 3.5
percent per annum.
The population of Zanzibar was 984 625 in 2002, the year of the
last census, with an annual growth rate of 3.1 percent. Based
on these figures, the population for 2011 is estimated at
1 257 014.
Zanzibar Town is the capital city, located on the western
side of Unguja. Zanzibar Town also contains the UNESCO
World Heritage Site of Stone Town.
Climate
While Zanzibar is consistently hot, humid and sunny, its
geographical location attracts seasonal monsoon winds that
temper its tropical climate. There are two rainy seasons, with
the long season lasting from March to May and the short rainy
season between October and December. On average, Pemba
receives more rainfall (1 900 millimetres) than Unguja (1 600
millimetres).
Temperatures are high during the short dry season (January
to February) with average maximum temperatures around
32 degrees Celsius. For the rest of the year, maximum and
minimum temperatures average around 29.3 and 21.1 degrees
respectively; although these can feel far hotter given the high
humidity.
Marine Conservation
The marine environment of Zanzibar is a rich and diverse
ecosystem that includes coral reefs, seagrass beds, mangrove
62
forests, and sandy beaches. The system supports complex
populations of marine life critical to Zanzibar’s socio-economic
development. Examples include both the fisheries and tourism
industries, which underpin most peoples’ livelihoods.
So as to ensure the sound management of these important
resources, the government of Zanzibar has created a network
of marine conservation areas that is co-managed with local
communities. At present there are three Marine Conservation
Areas (MCAs); namely, the Menai Bay Conservation Area
(MBCA), the Mnemba Island Conservation Area (MIMCA) and
the Pemba Channel Conservation Area (PECCA).
A further two areas are to be gazetted as MCAs in the near
future, which will help in fashioning a unique model of marine
conservation as it will result in around 75 percent of Zanzibar’s
internal waters being under special protection. Marine
conservation in Zanzibar allows for multiple uses, yet contains
core areas that will be harvested by common agreement and
protected by law.
History and politics
By the first century AD Zanzibar was an established stopover
for eastern trade caravans from Arabia, Persia, India and
China travelling into the continental mainland. These caravans
also interacted with the indigenous Swahili residents of the
islands. Zanzibar eventually became a permanent home to
many wealthy Arab traders and their families, who established
garrisons on the islands and built the first mosque in the
southern hemisphere.
The legacies of this influence can be seen in the fact that a
large proportion of Zanzibaris are of the Islamic faith and that
Islamic architectural styles dominate Stone Town. Zanzibaris
claim that their islands were the birthplace of the Swahili
language, now a lingua franca across much of East Africa.
Their Swahili cuisine is legendary. Spices feature prominently:
cinnamon, nutmeg, pepper and cloves, among others, are all
used to add a unique flavour.
The 15th century brought Zanzibar under Portuguese
occupation, which lasted for the next 200 years. In 1698,
 ZANZIBAR …
A place not to miss in your life time

Zanzibar has been a trading hub for millennia. Taking advantage of its strategic location, Zanzibar is once again
ready to act as a gateway for your trade around the World.

Zanzibar Investment Promotion Authority (ZIPA) is a government institution operating under Zanzibar Investment
Promotion and Protection Act No. 11 of 2004. Its main objective is to promote and facilitate investments and
trade in Zanzibar.

ZIPA is also responsible for administration, control and management of Freeport and Free Economic zones. The
zones have been purposely created to cater for manufacturing and processing for exports as well as duty-free
transit trade.

With more than 15 years of experience and knowledge we offer tailor-made services to our clients; You are
therefore invited to explore the opportunities in the Export Processing Zones (EPZs) as well as Free Port
Zones.

Investment Opportunities available in the Zones include:

• Developer - for those engaged in developing physical infrastructure and construction of industrial
sheds/warehouses for zones to be occupied on lease by enterprises
• Licenced Enterprises - for companies directly involved in export-oriented business activities and Transit
Trade such as:
i. manufacturing or processing
ii. commercial activities (breaking bulk, repackaging, re-labelling and trading)

Welcome Zanzibar for investment or to enjoy its hospitality!

For more information please contact:

EXECUTIVE DIRECTOR
P.O. BOX 2286 – ZANZIBAR
TEL: 255-24-2233026/2237858 • FAX: 255-24-2232737
Email: zipa@zanzinet.com • zipaznz@zanzinet.com
Website: www.zanzibarinvest.org
Celebrating 50 Years of Independence
 period in 2008. This may be attributed to events such as the
Sauti Za Busar music festival in Zanzibar, with increased
arrivals from Italy as well as the United Kingdom, Germany,
France, South America and South Africa.

Tourist Exit Survey 2009

An exit survey was undertaken at the airport in Zanzibar
between 27 July and 2 August 2009, and at the sea port for two
weeks from July until 8 August 2009. A total of 645 completed
response forms were collected – 536 from the airport and 109
from the sea port.

Some 43 percent of those interviewed at the airport were

Italian, and 22 percent at the sea port were British. In total, 30
percent of those interviewed were Italian, 16 percent British and
11 percent German. The 22 percent ‘other’ included Spanish,
South African and Scandinavian travellers.
Blue Bay Resort - Photo Courtesy: Marie Gibbons
The majority of airport arrivals were in the age bracket 30-55
years, whilst the majority of port arrivals were equally under 35
Zanzibar fell under the control of the Sultanate of Oman, which
years or older than 55 years. 96 percent of travellers visited
developed an economy of trade and cash crops, with a ruling
Zanzibar for leisure, with 3 percent on business and 1 percent
Arab elite. In the 19th century Zanzibar once again came under
visiting friends and relatives. Approximately half of the visitors
European domination, first in the form of German and later
were package tourists and half were independent visitors,
British rule. Zanzibar gained independence from the British
though there were more independent travellers arriving by the
Empire in 1963 as a constitutional monarchy.
sea port.
Zanzibar has been part of present-day Tanzania since 1964
Visitors were asked where they were staying in Zanzibar. The
when it united with Tanganyika (as it was then known) to form
majority of visitors (over 250) spent some time in Stone Town,
the United Republic of Tanzania. It maintains an independent
Zone 1. Zone 2, North and north-east was a popular area, with
government structure with a president, chief minister, cabinet
Nungwi being the next most frequented (250). Kiwengwa and
(Revolutionary Council), parliament (House of Representatives)
Kendwa were also popular, and Jambiani and Paje in Zone 3
and judiciary. While certain matters such as defence, foreign
had around 100 visitors each.
affairs, and higher education are regulated by the government
in Dar es Salaam, the Government of Zanzibar formulates
Overall guest satisfaction showed that 100 visitors (47 percent)
and implements socioeconomic development plans, manages
at the airport and 66 visitors (65 percent) at the sea port found
budget and financial affairs, maintains and controls foreign
their holiday exceeded their expectations, which was 53.38
exchange reserves and is responsible for servicing its foreign
percent of all visitors surveyed. A further 42.77 percent of
debt autonomously from mainland Tanzania.
the guests – 47 percent at the airport and 33 percent at the
seaport – agreed that their holiday met their expectations, and
Internal political conflicts have been considerably more pointed
5 percent of the airport departures (10 visitors) and 2 visitors
than those on the mainland, with the country’s two main
at the seaport said that their experience did not meet their
parties, the CUF and the CCM, clashing over government
expectations.
control, leading to outbreaks of violence after elections in 2001
and 2005. But talks between the two parties in October 2009
Arab Tea House, Bagamoyo - Photo Courtesy: Marie Gibbons
were hailed as a breakthrough and the elections in 2010 were
peaceful following the approval of a power-sharing agreement.
The CCM and CUF have subsequently formed a unity
government.

TOURISM
The small island economy of Zanzibar is increasingly orienting
itself towards the service sector as a lynch-pin of economic
growth, with tourism having become one of its priority sectors.
The industry is regulated by the Zanzibar Commission for
Tourism (ZCT), which was established in 1992. Tourism policy
is guided by the Promotion of Tourism Act (1996), The Zanzibar
Tourism Master Plan (2003), Strategy of Half a Million Tourists
in Zanzibar (2007-2014) and the Zanzibar Tourism Policy
Statement of 2003.

Visitor arrivals to Zanzibar increased to 97 711 in the first nine

months of 2009 compared with 95 430 visitors in the same
64
65 Celebrating 50 Years of Independence
Tourism resources
Zanzibar boasts a wide variety of tourism options, from the
historical and cultural sites of Stone Town to beach and leisure
activities and eco-adventure holidays. There are a number of
upmarket hotels and resorts on both the east and west coasts
of Unguja Island that are easily accessible from the airport and
Zanzibar Town. Many of these establishments are situated right
on the coast with private beaches, spa services and marine
activities.

For those interested in culture and history, Stone Town is an

ideal place from which to begin. A UNESCO World Heritage
Site since 2000, Stone Town gained its name from the
approximately 1 700 multi-story ‘stone’ buildings (they were
actually constructed with coral and mortar, not stone) in the old
town area. The area is also known for its architectural richness. Photo Courtesy: René Hartslief

Today, many of the winding streets and high townhouses of old

The Chole Island Marine Park just off Stone Town – and
Stone Town remain unchanged and visitors can walk between
nearby Prison, Grave, and Snake Islands – make for a
the sultan’s palace, the House of Wonders, the Portuguese fort
refreshing day-trip. Prison Island offers an opportunity to see
and gardens, the merchants’ houses, and the Turkish baths of
its giant land tortoises, some of which are thought to be over a
the old city. While only 83 square blocks in size, it contains 23
century old.
‘landmark buildings’, two cathedrals, over 50 mosques, 157
balconies, verandahs and loggias, and more than 200 massive
Throughout the Zanzibar Archipelago, the annual Zanzibar
and elaborately carved teak wood doors. These doors have
Cultural Festival (www.ziff.or.tz) showcases the many
become a symbol of Swahili culture in East Africa, and Stone
traditions and celebrations of the region. The Festival occurs
Town is home to many fine examples. Stone Town also gives
each year in July, directly after the international Zanzibar
the tourist a rich variety of shopping options, including jewellery,
International Film Festival (ZIFF) Festival of the Dhow
kangas and kikois (cloth), locally produced tinga tinga paintings,
Countries. Performers come from many countries around Africa,
carvings, perfumes and massage oils, and spices.
but Swahili culture is mostly represented. Zanzibari taraab
music and traditional dances are performed by a rich ensemble
Other excellent cultural sites include the ruins of the Beit el
of cultural troupes from Tanzania and abroad. Audiences can
Mtoni, the largest palace in Zanzibar, built in 1828 during the
enjoy exhibitions of arts and crafts that promote local culture.
reign of Omani Sultan Said. Before being abandoned in the
Street carnivals in Stone Town, small fairs, and canoe races
1880s it was home to over 1 000 residents, including Said’s
also take place.
daughter, Princess Sayyida Salme. Salme became famous
when she eloped with a German merchant and settled with
On the northern island of Pemba, the festival marks the annual
him in Hamburg. She later wrote her memoirs, which included
bull fight, a remnant of Portuguese presence on the islands,
detailed descriptions of life at Mtoni Palace.
where trained bulls prance after unarmed men in a humorous
Divers in Stone Town can easily arrange a day trip to the
version of the Iberian spectacle.
surrounding reefs. Numerous dive schools rent equipment and
embark on longer journeys. Turtles, manta rays, dolphins, and
Ecotourism opportunities abound in Zanzibar. Jozani Forest,
other large marine species are often sighted. It is also possible
less than half an hour’s drive from Zanzibar Town, is home
to visit a nearby shipwreck.
to the last indigenous population of (Kirk’s) Red Colobus
Monkey in the world. Jozani is a conservation project aimed
at preserving not only the Red Colobus, but also a number of
other species, including the rare forest antelope, Ader’s Duiker
and many kinds of birds. It is also an example of some of the
last indigenous forest ecosystems on the islands, containing six
distinct forest types and 100 different trees.

For those interested in the marine and beach experience,

Zanzibar has many opportunities for snorkelling and exploring
spectacular coral reefs. Six kilometres off Unguja Island,
Chumbe Island Coral Park was designated Tanzania’s first
Marine National Park in 1994. Its coral reef, which was declared
‘world’s best shallow water coral reef’ by the Australian Institute
of Marine Sciences, is home to nearly 400 species of fish,
turtles, dolphins and the giant coconut crab.

Visiting Chumbe is also an excellent way to enjoy Zanzibar’s

spectacular beach and marine sights while adhering to
conservation principles. The park operates on a ‘zero impact’
66

Tembo Hotel - Photo Courtesy: Marie Gibbons
conservation principle. Accommodation is in huts that are built
wholly from local materials. Water and electricity on the island
are self-sustaining and generated through green technology,
such as solar panelling and rainwater filtering systems. Chumbe
is considered one of the world’s most successful ecotourism
projects.
Pemba Island is smaller, more lush and hilly than Unguja, and
receives far fewer tourists. While this means a less developed
tourism infrastructure on the island, it also provides the
opportunity to experience beautiful and unspoiled beaches with
few other people around. Small guesthouses are dotted around
the island and there are a few upmarket hotels and resorts
specialising in deep sea diving. Pemba also contains the Ngezi
Forest, a protected area home to indigenous flora and fauna
such as the Pemba Flying Fox (bat) and the Pemba Palm,
found only on this island.
Fundu Lagoon, located on the southwest of the island, and
accessible only by boat, is a perfect getaway. On nearby Mafia
Island, Shambe Kilole Lodge overlooks the archipelago and
offers the promise of viewing whale sharks breaking the water’s
surface.
There are also many historical sites and ruins to explore on
Pemba, including mosques and tombs, and the old fort town
of Chake Chake. The Pujini ruins near Chake Chake are the
remnants of a 13th century fortified town.
INVESTMENT POTENTIAL
Investment in Zanzibar is governed by the Zanzibar Investment
Promotion Authority (ZIPA), which facilitates and promotes
investment in the islands, including Export Processing and Free
Zones, where investors can access incentives for producing
export-oriented goods.
Zanzibar has been gaining importance as an investment
destination, both regionally and globally. The country is
relatively stable politically, socially and economically, and
private investments are welcomed and protected both
constitutionally and through international conventions. Free
repatriation of profits is allowed, as well as 100 percent foreign
ownership. Furthermore, Zanzibar’s strategic location within
67
East African trade routes makes it an effective springboard for
entering the region.
Established through the Investment Code of 2004, the Zanzibar
Investment Promotion Authority (ZIPA) is a one-stop investment
centre that acts as a focal point for investment promotion
and facilitation in Zanzibar. Investment incentives include
exemption from taxes on goods for export and exemption from
corporate tax, among other incentives. There are a number
of local investors willing to take part in joint ventures with
foreign investors. ZIPA facilitates the issuance of work and
residence permits for investors, expatriate personnel and their
dependants.
Zanzibar is connected to the National Power Grid through an
underwater marine cable from mainland Tanzania. While the
island of Pemba is served by industrial diesel oil-run generators,
plans are underway to connect it to the National Grid. There
are adequate water reserves for industrial and household use,
with minimum infrastructure needed to ensure that water supply
reaches any part of the island.
A network of tarmac trunk roads covers most of Zanzibar, and
there is a passable network of tertiary roads reaching all rural
areas. The main seaport is situated in Stone Town and caters
for ocean going vessels, cargo-handling services, passenger
cruise ships and ferryboats. Tourists and cargo may be flown
in through Zanzibar International Airport, which is capable
of handling a variety of different aircraft sizes. The airport is
presently undergoing rehabilitation for the extension of its
runway and the upgrading of the passenger terminal.
There are various local, regional and international financial
institutions offering a wide range of services, and while land
is government-owned, it can be acquired by lease for up to
49 years (renewable). Zanzibar is well served by the main
telecommunications companies operating in Tanzania, and
Internet services are available at very competitive rates.
Zanzibar has a number of sectors that offer lucrative investment
opportunities:
• Exciting tourism activities and attractions, particularly
ecotourism, brings investment opportunities in upmarket hotels
Monument in memory of the slaves, Zanzibar - Photo Courtesy: Marie Gibbons
Celebrating 50 Years of Independence
 and resorts, tourism support services (such as restaurants,
diving and sea sports), exhibition and conference centres, and
theme parks.
• Zanzibar also offers great potential for investment in the
service sector, including education, health care centres,
business and financial services, and information and
communications technology.
• Opportunities in agriculture include the export of fresh tropical
fruits, horticulture and floriculture, fruit processing and
canning, poultry production, production of ornamental fish,
agro-processing and value addition in marine products,
animal feed, dairy, coconut by-products, milling and
packaging. Zanzibar is also known for its exotic home-grown
spices, such as cloves, cinnamon, cardamom, nutmeg, black
pepper and chillies, and this sector offers great potential for
expansion and the creation of forward linkages through value
addition.
• Infrastructure development is another key area, with
the development and construction of a commercial port
at Mpigaduri under concession arrangements and power
generation using eco-friendly sources such as wind, biogas
and solar power encouraged.
• With the country’s location alongside excellent marine
resources, the fishing industry has almost limitless potential
for development. Various types of fish, shrimps, lobsters,
seaweed and other marine resources are plentiful, and
investors may choose suitable areas for deep sea fishing,
processing and canning, or aqua culture (fish farming and
seaweed production).
An area ripe with potential, seaweed farming employs more
than 18 000 people, with annual production reaching
10 000 metric tonnes and room for expansion in production
as well as processing.
Free Economic Zones
In order to create a conducive environment for the
manufacturing sector to thrive, the Free Zone Programme was
established in 1992, with a Free Zone Authority set up the same
year and then a Free Port Authority in 1998 to foster transit
Dhow - Photo Courtesy: Marie Gibbons
68
trade in finished and value-added products. Free Economic
Zones, otherwise known as Export Processing Zones (EPZs),
comprise geographical areas specialising in manufacturing,
processing, warehousing or assembling goods or services for
export.
Following the enactment of the Investment Promotion and
Protection Act No. 11 of 2004, and the subsequent merger
of the three institutions formerly responsible for investment
promotion, the development, management and promotion
of the free zones (both the Export Processing Zones and
the Freeports) were put under one umbrella – the Zanzibar
Investment Promotion Authority (ZIPA). These zones offer firm
free trade conditions and a liberal regulatory environment.
Potential investors must carryout an industrial or processing
activity and export not less than 80 percent of their product
So far, there are five declared Free Economic Zones, three of
which are for export-oriented manufacturing and services. The
three sites which have been declared Export Processing Zones,
allowing the duty-free import of raw and intermediate materials
and capital goods to manufacturers for export, include:
• Amaan Industrial Park, some 3 kilometres from the
seaport and 2 kilometres from the airport, covers an area of
12.5 hectares and has existing infrastructure such as sheds/
warehouses, utilities and onsite customs inspection. The hub
of industrial activities in the EPZ sector, Amaan houses nine
operating projects and has created employment for some 660
workers. These projects export on average goods worth
US$ 2.7 million annually.
• Fumba Free Zone, situated 24 kilometres from the seaport
and 10 kilometres from Zanzibar International Airport, covers
an area of 3 000 hectares and is ideal for light engineering
and projects based on the maximum use of local raw
materials, such as marine and agricultural resources and
garment manufacturing. It is accessible through a 13-kilometre
ring road, which cuts through the hinterland from Maungani to
Fumba through Nyamanzi. Projects already operational
here include a tourist resort and a fibreglass boat factory, as
well as other investments involving tourism, industry and real
estate that are at various stages of development.
• Offering untouched land ready to host potential investors,
Micheweni Free Zone on the north-eastern tip of Pemba
covers an area of 808.4 hectares and is 75 kilometres from
Mkoani seaport and 45 kilometres from the airport. The zone
is accessible through a road from Micheweni Township to
Maziwang’ombe village.
Free Port Zones offer duty-free storage of transit goods as well
as opportunities in labelling and packaging, sorting, grading and
cleaning, simple assembly, minor processing, quality control
and catering.
• The Maruhubi Zone is located about 3 kilometres from the
Malindi seaport in Zanzibar town and covers an area of 5
hectares. It has all basic facilities, including warehouses for
rent, 24-hour security, onsite customs services, electricity,
water and telecommunications. Currently there are 14
projects operating at the zone in fields such as car-dealership,
cosmetics and auto-spares.
• The Airport Zone is intended to cater for air cargo-based
operations. Investments are encouraged for the development
of the site as well as its future operation, considering the
improvements made to Zanzibar International Airport.
Export development
During the quarter ending September 2010, procurement of
major traditional export crops increased to 4 542.4 tonnes
from 4 148 tonnes recorded in the corresponding quarter in
2009, mainly attributed to an increase in clove production. The
increase in clove production was on an account of favourable
weather condition and a rise in producer prices following
recovery of world market prices for cloves.
In response to good world market price for cloves, the Zanzibar
State Trade Corporation (ZSTC) increased clove producer
prices for grades one and two to TZS 3 500 and TZS 3 000 per
kilogram from TZS 3 000 and TZS 2 800 per kilogram in the
corresponding quarter in 2009. Seaweed purchases increased
to 2 530 tonnes from 2 407 tonnes procured during the
corresponding quarter in the previous year.
a major exporter of agricultural commodities. This is in line
with the Zanzibar Development Vision 2020 and the Zanzibar
Agriculture Sector Strategic Plan.
Agriculture on Zanzibar includes crop production, livestock
development, fisheries and forestry. However, its contribution to
GDP is presently only around 25 percent, despite the fact that it
is by far the largest job creator on the islands, providing about
70 percent of total employment.
Agricultural production has remained predominantly
subsistence, small-scale and rain-fed, with minimal use of
inputs such as fertilisers and pesticides. The resulting low
yields mean that tourist establishments often have to rely on
produce from outside Zanzibar. For example, some 80 percent
of rice consumed in Zanzibar is imported from the mainland or
overseas.
Old Fort in Kilwa - Photo Courtesy: Tanzania Tourist Board

In 2010, exports of goods and services amounted to US$ 120.1

million, below US$ 127.6 million posted in 2009. This outturn
was mainly on account of decline in clove and manufactured
goods exports. Clove exports amounted to US$ 7.5 million,
down from US$ 14.6 million, while manufactured goods exports
declined to US$ 3.4 million from US$ 5.0 million.

AGRICULTURE
Zanzibar has recently launched a ten-year programme –
Mageuzi ya Kilimo – to transform its agricultural sector, which
already accounts for an average of 70 percent of foreign
exchange earnings. The programme aims to make Zanzibar
an agriculture-driven economy by 2020, and it is hoped that
the islands will become self-sufficient in food as well as being
69 Celebrating 50 Years of Independence
Useful Information
Official name: United Republic of Tanzania
Location: East Africa
Capital: Dodoma (seat of government), Dar es Salaam
(economic)
Form of Government: Republic; multiparty system since 1992
Head of State and Government: President Jakaya Kikwete
(since 21 December 2005); Zanzibar is semi-autonomous and
since 2010 a government of national unity, comprising President
Ali Mohammed Shein (CCM) and Vice President Seif Shariff
Hamad (CUF).
Border countries: Kenya, Uganda, Rwanda, Burundi, the
Democratic Republic of Congo (DRC), Zambia, Malawi and
Mozambique.
Total area: 883 590 square kilometres of land (Zanzibar 1 650
square kilometres, Pemba island 984 square kilometres) and
roughly 59 000 square kilometres of water.
Lakes: Lake Victoria (largest lake in Africa and second largest in
the world); Lake Tanganyika (second deepest in the world); Lake
Nyasa.
Highest point: Mount Kilimanjaro (5 892 metres)
Climate: Tropical, with hot and humid coastal areas, although
temperatures may fall below freezing in high-altitude areas such
as Kilimanjaro and the Ngorongoro Highlands. There are two
rainy seasons – late March to June and November to January.
December to March is hot and dry; June, July and August are
cool and cloudy.
Population: 45.1 million – Tanzania Mainland 43.8 million;
Zanzibar 1.3 million (2011 estimate)
Ethnic groups: Over 90% indigenous African groups of Bantu
and Nilotic origin; also minority population comprising Indian,
Pakistani, Goan, Arab and European.
Religions: Christianity (45%), Islam (35%) and indigenous
beliefs (20%), with Zanzibar almost completely Muslim.
70
Languages: There are two official languages – Kiswahili and
English (the primary language of commerce, administration and
higher education). Arabic is widely spoken in Zanzibar and there
are many indigenous languages (over 135).
Weights and measures: Metric system
Electricity: Local current is 220v, 50 cycle AC
Time difference: GMT +03:00
Currency: Tanzanian shilling (Tsh/TZS), divided into 100 cents.
Business and banking hours: Businesses are generally
open weekdays 08:00 - 17:00, Saturdays 08:00 - 13:00. Most
banks open from 08:30 - 15:00 on weekdays, 08:30 - 13:30 on
Saturdays. Many shops stay open later.
Foreign exchange: Travellers’ cheques, dollars or pounds may
be exchanged at any authorised bank or bureaux de change in
the main towns.
Credit cards & ATMs: Access, MasterCard, Visa, American-
Express, and Eurocard are accepted by most hotels, restaurants,
travel agencies and the larger stores. There are ATMs available
in branches of major banks.
Visa requirements: Visitors must have a valid passport, and
most require a visa, with three-month single-entry tourist visas
available at Tanzanian embassies abroad.
Health precautions: Visitors require anti-malarial drugs. While
the yellow fever vaccination is no longer officially required when
entering Tanzania, it is still a requirement if you wish to visit
Zanzibar.
Communications: There are eight mobile telephone operators,
and roaming lines work near most major cities and towns.
Internet cafés are plentiful in major city centres. International
Direct Dial is available.
Dialling code: The country code for Tanzania is +255. The
outgoing international code is 00 for the United States and 000
for all other countries.
71 Celebrating 50 Years of Independence
Index to Advertisers
African Assay Laboratories Tanzania Ltd ...................................41
Atlas Copco ................................................................................47
Braeburn Schools .......................................................................60
Capricorn Hotels .........................................................................29
CFAO DT Dobie Tanzania ..........................................................49
Consolidated Holding Corporation..............................................23
Drilling and Dam Construction Agency .......................................56
East African Elevator Company Ltd ............................................57
Ecobank......................................................................................19
Economic and Social Research Foundation...............................61
Export Processing Zones Authority ............................................22
Gem Centre ................................................................................28
Hanspaul Automechs Ltd............................................................35
Layne Drilling ..............................................................................43
Mantra Tanzania Limited ............................................................41
Mbeya Cement Company Limited ..............................................36
Ministry of Agriculture and Natural Resources ...........................33
Ministry of Communication, Science and Technology ................51
Ministry of Energy and Minerals .................................................39
Mollel Electrical Contractors Ltd .................................................56
Momentum Tanzania Insurance Company ......... inside back cover
National Bank of Commerce.........................................................2
72
NMB............................................................................................17
Oryx Gas Tanzania Ltd ...............................................................57
Shanta Mining Company ............................................................45
Southern Sun Hotels (T) Limited ..................................................5
Strategis .....................................................................................59
Tanganyika Farmers’ Association Ltd .........................................31
Tantrade........................................................................................9
Tanzania Communications Regulatory Authority ........................54
Tanzania Distilleries ....................................................................37
Tanzania National Parks .............................................................25
Tanzania National Reinsurance Corporation ..............................15
Tanzania Portland Cement Company ................. inside front cover
Tanzania Private Sector Foundation...........................................13
Tanzania Revenue Authority .......................................................21
The Tanzanite Experience ..........................................................27
Trapca ........................................................................................ 11
Vodacom.....................................................................................53
Zanzibar Commission for Tourism ..............................................65
Zanzibar Institute of Tourism Development ................................69
Zanzibar Investment Promotion Authority...................................63
Zanzibar Shipping and Agency Corporation ...............................66