Tanzania 2013/2014 by International Business

International Business Tanzania Report 2014

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Preface Executive Summary Acknowledgments !"#$%&'%(")*+,-("./(01"234 !"5%(("#$%&'%6("768+0'1"9((+:6'%+("2+$;6< !"=+(%>6"=?@6(01"2+$;-,%6("=%(%&'$<"A+$" ""B$60-"6(0"9(0/&'$< Introduction Key Statistics Social Infrastructure The Tanzanian Economy Political Climate East African Community (EAC) Trading with Tanzania Cultural Differences Infrastructure Sector Analysis"" !"4%@"C"D6&" !"E-(-;6F@-"G(-$,< !"=%(%(, !"7,$%>/@'/$-" Corruption and Anticorruption CSR Security Risks Legal and Taxation !"B6(H6(%6("B6I6'%+( !"B6(H6(%6("B6I6'%+("A$+8"6"2+$;-,%6(" !"J-$&K->'%:The Tanzanian Government’s Effect on Business Operations The Future of Tanzania Recommendations and Best Practices Aftermath About us Previous IB Reports

Preface International Business - Norways Most Exciting Student Project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

Solfrid Dahl Helgesen CEO of the International Business Project Tanzania

International Business Tanzania 2014 Authors: Anders Jørgen Harmann Bjørndalen, Helene Dahl, Solfrid Dahl Helgesen, Jostein Olsvik Hovind, Sigrid Johanne Husøy, Gino Ismail, Ida Kallmyr Lerheim, Hanne Christensen Lystad, Aleksander Cornejo Malm, Helene Ringen. | Editor: Sigrid Johanne Husøy | Head of Research: Gino Ismail. | Photography:Anders Jørgen Hartmann Bjørndalen, Ida Kallmyr Lerheim, Helene Ringen, Sigrid Johanne Husøy. | Graphic Designer: Kristian Johan S. Mauseth. | Print: NTNU-trykk

2 - Content

Preface - 3

Executive Summary

B6(H6(%6"$-K$-&-('&"6"@6$,-@<"/(-IK@+$-0"86$*-'"A+$"2+$;-,%6(" F/&%(-&&-&1"0-&K%'-"F-%(,"'L-"'L%$0"A6&'-&'",$+;%(,">+/('$<"%(" 7A$%>6T"BL-":6&'"6F/(06(>-"+A"(6'/$6@"$-&+/$>-&"%&"%("K6$'%>/@6$" %(>$-6&%(,@<"6''$6>'%(,"%('-$(6'%+(6@"R$8&1";L%@-"'L-"K$+N->'-0" ,$+;'L"%("K+K/@6'%+("6(0"'L-"%(>$-6&-"%("6:-$6,-"%(>+8-"+A" B6(H6(%6(&";%@@"&K/$"0-86(0"A+$"(-;"K$+0/>'&"6(0"&-$:%>-&" 6>$+&&"&->'+$&T"J6$6@@-@"'+"'L-&-"K$+8%&%(,"A6>'+$&1"'L-"B6(H6(%6(" ,+:-$(8-('">+('%(/-&"'+"-(>+/$6,-"6(0"A6>%@%'6'-"A+$-%,("0%$->'" %(:-&'8-('&"'L$+/,L"%(>-('%:-&"&/>L"6&"'6I6'%+("-I-8K'%+(&"6(0" @+;"@+>6@">+('-('"$-^/%$-8-('&T 3+;-:-$1"+/$"%(:-&'%,6'%+("+A"'L-"B6(H6(%6("86$*-'"$-:-6@-0"'L-" K$-&-(>-"+A"86N+$"F6$$%-$&"'+">+('%(/-0"F/&%(-&&"6(0"->+(+8%>" 0-:-@+K8-('T"B6(H6(%6">+('%(/-&"'+"&'$/,,@-";%'L"F+'L"K-''<Q" 6(0",$6(0">+$$/K'%+("'L6'"$-6>L"A$+8"A$+('Q0-&*"-8K@+<--&" '+" ,+:-$(8-('" +AR>%6@&1" 6(0" &L+/@0" F-" 6(" 6$-6" +A" >+(>-$(" A+$"K$+&K->'%:-"%(:-&'+$&T"3+;-:-$1"&-:-$6@">+8K6(%-&"L6:-" 86(6,-0"'+"6:+%0"K6$'%>%K6'%+("%("&/>L"%@@-,6@"6>'%:%'%-&1"6(0"'L-$-" %&"6"$%&%(,"6;6$-(-&&"6(0"$-&%&'6(>-"+A">+$$/K'%+("68+(,&'"8+&'" B6(H6(%6(">%'%H-(&T"9("A6>'1">+8K6$-0"'+"(-%,LF+/$%(,">+/('$%-&1" B$6(&K6$-(><"9('-$(6'%+(6@"$6(*&"B6(H6(%6"6&"6">@-6(-$"(6'%+(1" 6(0"'L-"%(>$-6&%(,"K$-&-(>-"+A"%('-$(6'%+(6@">+8K6(%-&"&L+/@0" %(\/-(>-"6"F-''-$%(,"+A"'L-"F/&%(-&&">@%86'-T

4 - Executive Summary

BL-">/@'/$6@"0%AA-$-(>-&"F-';--("2+$;6<"6(0"B6(H6(%6"&L+/@0" 6@&+"6''$6>'"K$+&K->'%:-"%(:-&'+$&"6''-('%+(T"B$/-"/(0-$&'6(0%(," +A"'L-"/(0-$@<%(,"(+$8&"6(0":6@/-&"K$-:6@-('"%("'L-"B6(H6(%6(" >/@'/$-";%@@"&6:-"K$+&K->'%:-">+8K6(%-&"F+'L"'%8-"6(0"8+(-<1" 6(0"%'&"%8K+$'6(>-">6((+'"F-"+:-$-8KL6&%H-0`"J6'%-(>-"'$/@<"%&" 6":%$'/-"<+/"(--0"'+"86&'-$";L-("-('-$%(,"'L-"@-&&"'L6("K/(>'/6@" B6(H6(%6T =+$-+:-$1"'L-"K$-&-(>-"+A"86N+$"&L+$'>+8%(,&"%("%(A$6&'$/>'/$-" 86*-&"0+%(,"F/&%(-&&"%("B6(H6(%6"0%AR>/@'T"B$6(&K+$'6'%+("%&"F+'L" -IK-(&%:-"6(0"6$0/+/&"6(0"%&"6"'$/-"F+''@-(->*"A+$"F/&%(-&&" 0-:-@+K8-('T"a/-"'+"F+'L"L%,L"'$6(&K+$'6'%+(">+&'&"6(0"'$60-" F6$$%-$&"F-';--("(-%,LF+/$%(,"(6'%+(&1"'L-"&'$6'-,%>"@+>6'%+("+A" B6(H6(%6"L6&"%("K$6>'%>-"K$+:-("0%AR>/@'"'+"-IK@+%'T"BL-"8%&&%+(" +A"'L-"G6&'"7A$%>6("b+88/(%'<"%&"'+"$-0/>-"'L-&-"F6$$%-$&"'+" '$60-"%("'L-"G6&'"7A$%>6("$-,%+(1"6(0"'$60-"F-';--("B6(H6(%6"6(0" (-%,LF+/$%(,">+/('$%-&"L6&"%(>$-6&-0"0/$%(,"'L-"@6&'"0->60-T"" a-&K%'-"'L-&-"F6$$%-$&"'+"F/&%(-&&"0-:-@+K8-('1"B6(H6(%6"&L+/@0" (+'"F-";$%''-("+AAT"9("A6>'1"B6(H6(%6"6KK-6$&"'+"F-"'L-"(-;"@6(0"+A" +KK+$'/(%'%-&1"6(0"'L-"%(\/I"+A"A+$-%,("0%$->'"%(:-&'8-('"&/KK+$'&" +/$"+K'%8%&'%>":%-;T")/>>-&&A/@">+8K6(%-&";%@@"F-"'L+&-"'L6'" 86(6,-"'+"6>'"A6&'1"6:+%0">+$$/K'%+("6'"6@@">+&'1"/(0-$&'6(0"'L-" >/@'/$6@"0%AA-$-(>-&1"6(0"86(6,-"'+">$-6'-"@+(,Q'-$8"$-@6'%+(&L%K" ;%'L"'L-"@+>6@"-(:%$+(8-('T"

International Business Tanzania 2014 - 5

Acknowledgement Kristin Skogen Lund President of the Confederation of Norwegian Enterprise

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c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`"%(:-&'8-('&"6$-"F++8%(,"6(0"->+(+8%>" ,$+;'L"%&"68+(,"'L-"L%,L-&'"%("'L-";+$@0T " ]-" &--" 'L%&" (-;" +K'%8%&8" 6(0" 0<(68%&8" %(" 86(<"7A$%>6(" >+/('$%-&T"7"(-;"8%00@-">@6&&"%&",$+;%(,1";L%>L"K$+:%0-&"6(0" -I>%'%(,"86$*-'1"F+'L"A+$"7A$%>6("6(0"A+$-%,(">+8K6(%-&T")+8-" 6$-"K$-0%>'%(,"'L6'"7A$%>6(">+/('$%-&";%@@"$-K@%>6'-"'L-"F++8"+A"'L-" 7&%6("B%,-$&"%("'L-"dZe&T"9"68"-(>+/$6,%(,"2+$;-,%6(">+8K6(%-&" '+",$6&K"'L-"+KK+$'/(%'%-&T")'6'+%@1"'L-"F%,,-&'"2+$;-,%6("+%@" >+8K6(<1" %&" >/$$-('@<" 6>'%:-" %(" -IK@+$%(," 'L-" K+&&%F%@%'%-&" +A" -I'$6>'%(,",6&"+/'&%0-"'L-">+6&'"&+/'L"%("B6(H6(%6T"BL-"R(0%(,&" &+"A6$"L6:-"F--(":-$<"K$+8%&%(,1"6@'L+/,L"'L-"$-&-$:-&"6$-"

6 - Acknowledgement

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

Acknowledgement Finn Kristian Aamodt Acting President and CEO of Innovation Norway

5+$"YZ"<-6$&1"9('-$(6'%+(6@"M/&%(-&&"L6&"K+%('-0"2+$;-,%6(" >+8K6(%-&"%("'L-"$%,L'"%('-$(6'%+(6@"0%$->'%+(T"BL-<"K$+:%0-"6" A$-&Lf6(0">+8K$-L-(&%:-f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Acknowledgement - 7

Acknowledgement Monica MĂŚland Minister of Trade and Industry

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8 - Acknowledgement

2+$;6<"6(0"B6(H6(%6"L6:-"L60"6">@+&-"$-@6'%+(&L%K"A+$"8+$-" 'L6("d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b+88/(%'<T" BL-"9('-$(6'%+(6@"M/&%(-&&"$-K+$'&">$-6'-0"F<"'L-"&'/0-('&"A$+8" 2331"M9"6(0"2B2S"6$-"%(Q0-K'L"6(0"/&-A/@"6(6@<&-&"+A"%8K+$'6('" ,@+F6@"86$*-'&1"6(0"$-\->'"+(,+%(,"'$-(0&"%("'L-"2+$;-,%6(" F/&%(-&&" >+88/(%'<T" BL%&" <-6$[&" $-K+$'" ;%@@" K$+:%0-" L-@KA/@" %(A+$86'%+("'+">+8K6(%-&"'L6'"6$-">+(&%0-$%(,"&-%H%(,"&+8-"+A" 'L-"86(<"F/&%(-&&"+KK+$'/(%'%-&"%("B6(H6(%6T

International Business Tanzania 2014 - 9

Tanzania – The True Land of Opportunities Introduction Tanzania is currently ranked as the third fastest-growing country in Africa, and projections for the future warrant continued optimism. Despite a promising future, the climate for business development and economic growth is associated with challenges. The World Bank’s annual “Doing Business Report” from 2014 ranked Tanzania as 145th out of 189 countries in terms of ease of doing business. This serves as a good indicator of the challenges the country is experiencing in developing an encouraging climate for business development. However, the possibilities and opportunities far outweigh the challanges. The following report aims to be a testimony of the opportunities available for Norwegian companies in Tanzania, and highlights the multiple challenges one should be wise to take note of before entering this developing market.

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a-&K%'-"'L-&-"%(>-('%:-&1"B6(H6(%6"$-86%(&"6"@6$,-@<"/(-IK@+$-0" 86$*-'"A+$"2+$;-,%6("F/&%(-&&-&T"b+(:-$&-@<1"F+'L"'L-"9(0%6(&" 6(0"bL%(-&-"L6:-"6@$-60<"F-,/("%(:-&'8-('&"%("B6(H6(%6"0/-" '+"'L-"K$-&-(>-"+A"(6'/$6@"$-&+/$>-&1"'L-">+/('$<[&"&'$6'-,%>" @+>6'%+(1"6(0"-IK->'-0"->+(+8%>",$+;'L"K$%86$%@<"$-@6'-0"'+"'L-" &/F&'6('%6@",6&"R(0%(,&1"6(0"8+$-">+/('$%-&"6$-"A+@@+;%(,"&/%'T"

9("6"0-:-@+K%(,">+/('$<";%'L"-(0@-&&"+KK+$'/(%'%-&1"2+$;-,%6(" >+8K6(%-&"&'6(0"'+",6%("F<"-('-$%(,"F-A+$-"86'/$%'<T"7"*-<" &/>>-&&"A6>'+$"A+$"2+$;-,%6(">+8K6(%-&"-('-$%(,"'L-"B6(H6(%6(" 86$*-'";%@@"F-"'L-"6F%@%'<"'+"6>'"A6&'T"]%'L"'L-">/$$-('",$+;'L"$6'-" +A"iTj"K-$">-('1"'L-"B6(H6(%6("K+K/@6'%+("%&"K$+N->'-0"'+">@+&-"'+" 0+/F@-"F<"iZYdT"2--0@-&&"'+"&6<1"%'"0+-&"(+'"86''-$";L6'"<+/$" F/&%(-&&"-('6%@&`")++(-$"+$"@6'-$1"B6(H6(%6k&"K+'-('%6@">6("F-" /(@+>*-0"F<";%@@%(,"6(0"6F@-"2+$;-,%6("R$8&T"

10 - Tanzania - The True Land of Opportunities

Key Statistics Capital`"Dodoma Government`"Republic President`"Jakaya Kikwete Independence`"26 April 1964 Population`"48.2 million (july, 2013 est.) Religion`"Christian 30%, Muslim 35%, indigenous beliefs 35%; Zanzibar more than 99% Muslim

Area`"947,300 km2" !"#$%&'('&)*+&*,`"Kiswahili and English Currency`"Tanzanian shilling GDP`$28.24 billion Economic growth rate`"6.9% Exports`"$8,5 billion Imports`"$13.6 billion

Key Statistics - 11

Social Infrastructure Being characterized as a young and poor nation, Tanzaniaâ&#x20AC;&#x2122;s social infrastructure is currently undergoing tremendous transformation. Despite uncertainty regarding how the nation will successfully meet the challenges caused by the projected population growth and urbanization, Tanzania remains a relatively stable nation in the Sub-Saharan region

Urbanization of a Young Population BL-"B6(H6(%6("K+K/@6'%+(">6("F-">L6$6>'-$%H-0"6&"<+/(,1"K++$1" 6(0"'+"6"@6$,-"-I'-('1"/(-0/>6'-0T"]%'L"L%,L"F%$'L"$6'-&1"6(0" 0->$-6&%(,"0-6'L"$6'-&1"'L-"6((/6@"K+K/@6'%+(",$+;'L"$6'-"L6&" $-6>L-0"iTV"K-$">-('T"9A"*-K'">+(&'6('1"'L-"B6(H6(%6("K+K/@6'%+(" ;%@@"0+/F@-"%(("@-&&"'L6("id"<-6$&T"B+06<1"+:-$"XX"K-$">-('"+A"'L-" K+K/@6'%+("%&"/(0-$"'L-"6,-"+A"Ud1",%:%(,"B6(H6(%6"6"L/,-"K+'-('%6@" ;+$*"A+$>-T"3+;-:-$1",%:-("'L-"6@$-60<"&'$6%(-0">6K6>%'<"%("F+'L" KL<&%>6@"6(0"&+>%6@"%(A$6&'$/>'/$-1">+(>-$("&L+/@0"F-"$6%&-0"6&" '+"L+;"B6(H6(%6">6("L6(0@-"'L%&"K+K/@6'%+("-IK@+&%+(T"

>+(0%'%+("A+$">L%@0$-(T"a-&K%'-",+:-$(8-('"%(%'%6'%:-&"'+"&@+;"0+;(" 'L-"/$F6(%H6'%+("'L-"/$F6(%H6'%+("$-86%(&"'+"6"@6$,-"K6$'"/(,/%0-0" 6(0"/(>+('$+@@-0T"3+;-:-$1"&+8-"6$,/-"'L6'"/$F6(%H6'%+("%&"6(" %8K$+:-8-('"&%(>-"'L-"^/6@%'<"+A"&>L++@&"6(0"L-6@'L"&-$:%>-&" 6$-"F-''-$"%("'L-"F%,,-$">%'%-&T")/KK+$'%:@<1"6"&@+;"F/'">+(&'6('" %(>$-6&-"%("'L-"3/86("a-:-@+K8-('"9(0-I"O3a9P"&/,,-&'&"'L6'" +:-$6@@"@%:%(,">+(0%'%+(&"6$-"%8K$+:%(,T"3+;-:-$1">+8K6$-0"'+" 2+$;6<";%'L"6"3a9"&>+$-"+A"ZTVdd1"B6(H6(%6"6(0"%'[&"3a9"&>+$-" +A"ZTXjl"L6&"6"@+(,";6<"'+",+T

High Diversity in Religious Beliefs With Low Tension BL-"0+8%(6'%(,"$-@%,%+/&"F-@%-A&"%("B6(H6(%6"6$-"bL$%&'%6(%'<1"9&@68" 6(0"%(0%,-(+/&"F-@%-A&T"G&'%86'-&"%(0%>6'-"'L6'"Yd"K-$">-('"6$-" =/&@%81"YZ"K-$">-('"bL$%&'%6(1";L%@-"Yd"K-$">-('"6$-"6&&+>%6'-0" '+"%(0%,-(+/&"F-@%-A&T"E-@%,%+/&"@-60-$&"6$-"K-$&+(&"+A"&'6(0%(," %("'L-"B6(H6(%6("&+>%-'<1"6(0"F-(-R'"A$+8"$-:-$-(>-"68+(," A+@@+;-$&"6(0"&'$+(,"%(\/-('%6@"K+;-$T"a-&K%'-"8/@'%K@-"$-@%,%+/&" F-@%-A&1"B6(H6(%6"L6&"-IK-$%-(>-0"@+;"@-:-@&"+A">+(\%>'"F-';--(" $-@%,%+/&" ,$+/K&" >+8K6$-0" '+" K--$" )/FQ)6L6$6(" >+/('$%-&T" 3+;-:-$1"&%,(&"+A"(-,6'%:-"0-:-@+K8-('";%'L"'L-"%(>$-6&%(," %(\/-(>-"+A"-I'$-8%&'",$+/K&"0-86(0"6''-('%+("6(0">6/'%+(T"

Tanzanian Population Pyramid. Source: CIA The World Factbook, Tanzania.

BL-">+8F%(6'%+("+A"F+'L"K/&LQ"6(0"K/@@"A6>'+$&"L6&">6/&-0"6(" %(>$-6&%(,"(/8F-$"+A"<+/(,"B6(H6(%6(&"'+"@-6:-"$/$6@"6$-6&" 6(0"$-@+>6'-"'+"86N+$">%'%-&"&/>L"6&"a6$"-&")6@681"=;6(H61" 7$/&L61"6(0"a+0+86T"BL-"86&&%:-"/$F6(%H6'%+("+A"'L-"B6(H6(%6(" K+K/@6'%+(" %&" >6/&%(," &-:-$-" &'$6%(" +(" 'L-" %(A$6&'$/>'/$-" +A" 'L-">%'%-&1">6/&%(,"S29bG5"'+"$6%&-">+(>-$(&"6F+/'"'L-"@%:%(,"

12 - Social Infrastructure

Children in Local village

Major Shortcomings in the Educational System

Respect and Equality for Women

J$%86$<"-0/>6'%+("%&"A$--"6(0">+8K/@&+$<"A+$"6@@">L%@0$-("A$+8"'L-" 6,-"+A"j"'+"Ud1";L%@-"6"'/%'%+("A--"%&"$-^/%$-0"'+"6''-(0"&->+(06$<" -0/>6'%+(T" b+(&-^/-('@<" VW" K-$" >-('" +A" 6@@" >L%@0$-(" 6''-(0" K$%86$<"&>L++@1";L%@-"&->+(06$<"&>L++@"+(@<"L6&"6"iX"K-$">-('" OA-86@-P"6(0"il"K-$">-('"O86@-P"6''-(06(>-T"a-&K%'-"%(>$-6&%(," 6''-(06(>-"%("K$%86$<"&>L++@1"'L-"-0/>6'%+(6@"^/6@%'<"%&"-:-(" @+;-$"'L6("#-(<6"%("'L-"(+$'LT"=+$-+:-$1"6&"'-6>L-$"&6@6$%-&" 6$-"@+;1"'L-$-"6$-"(/8-$+/&"-I68K@-&"+A"'-6>L-$&"+8%''%(,"'+" &L+;"/K"'+">@6&&1"6(0"$6'L-$"6&*%(,"K6$-('&"A+$"-I'$6"K6<8-('" '+"L+@0"6A'-$(++(">@6&&-&"%(&'-60T"BL-"&%,(%R>6('"&L+$'>+8%(,&" %("'L-"-0/>6'%+(6@"&<&'-8">6/&-"-I'-(&%:-"'$6%(%(,"(->-&&6$<" ;L-("L%$%(,"-8K@+<--&T"

B6(H6(%6"-(N+<&"8+$-"0-:-@+K-0",-(0-$"-^/6@%'<"(+$8&"'L6(" 86(<"+'L-$"K--$">+/('$%-&T"]+8-("6$-"$-&K->'-0"6'";+$*1"6(0" &-:-$6@";+8-("L+@0"*-<"K+&%'%+(&"%("'L-",+:-$(8-('"6(0"6'"'L-" /(%:-$&%'<T".6>*"+A"$-&K->'"A+$";+8-("%&"'L-$-A+$-"(+'"6("%&&/-" '+"F-">+(>-$(-0"6F+/'"F-A+$-"-('-$%(,"B6(H6(%6T"3+;-:-$1"6&" %("8+&'"+'L-$">+/('$%-&";+8-("L6:-"'+";+$*"L6$0-$"'+"K$+:-" 'L-8&-@:-&"%("6"86@-"0+8%(6'-0"-(:%$+(8-('T

Social Infrastructure - 13

The Tanzanian Economy Analysts expect the Tanzanian economy to be one of the top performers !"#$%#&'($!)$*)+#,$-.!"$&$/)0#'#1$.23&!.)2$'&!#$&21$&$(!&4/#$*5''#2*%6$!"#$ macroeconomic outlook for Tanzania is positive. The recent transformation of !"#$72&2*.&/$(%(!#+$"&($(5**#((85//%$&!!'&*!#1$8)'#.92$.2:#(!+#2!(,$;)0#:#'6$ obstacles for continued development remains, and must be overcome before Tanzania is able to realize its potential

A Positive Macroeconomic Picture Signs of improved monetary climate

'+"6"'%,L'"8+(-'6$<"K+@%><1"%8K$+:-0"A++0"&/KK@<"6(0"&'6F%@%'<" %("'L-",@+F6@"+%@"K$%>-&T"BL-"B6(H6(%6("%(\6'%+("$6'-"%&"L%,L-$" 'L6("'L6'"+A"(-%,LF+/$%(,">+/('$%-&1"%8K@<%(,"6"8+$-":+@6'%@-" >/$$-(><T"3+;-:-$1"+:-$6@@"&-(&%F@-"R&>6@"6(0"8+(-'6$<"K+@%>%-&" 6(0"%(>$-6&-0"A+$-%,(">6K%'6@"%(\+;"L6:-"860-"'L-"B6(H6(%6(" &L%@@%(,"'+"+(-"+A"'L-"8+&'"$+F/&'">/$$-(>%-&"%("'L-"G6&'"7A$%>6(" $-,%+(T"

A Developing Financial System BL-">6K%'6@"%(\+;"'+"B6(H6(%6"L6&"L%&'+$%>6@@<"0-K-(0-0"L-6:%@<" +("A+$-%,("6%0T"7&"'L-"->+(+8%>">@%86'-"L6&"%8K$+:-01"A+$-%,(" 0%$->'" %(:-&'8-('&" 6(0" (+(Q>+(>-&&%+(6@" @+6(&" >+(&'%'/'-" 6" &%,(%R>6('"K+$'%+("+A"'L-"%(\+;"+A"A+$-%,(">6K%'6@T"B+">+('%(/-"'L-" Source: Bank of Tanzania 0-:-@+K8-('"+A"B6(H6(%6[&"R(6(>%6@"&<&'-81"'L-",+:-$(8-('"%&"%(" BL-"B6(H6(%6("->+(+8<"%&">/$$-('@<"'L-"'L%$0"A6&'-&'",$+;%(," 'L-"K$+>-&&"+A"+F'6%(%(,"6">$-0%'"$6'%(,"'L6'";%@@"-(6F@-"%('-,$6'%+(" ->+(+8<"%("7A$%>61"6(0"L6&"'L-"@6&'"0->60-"-(N+<-0"6"L%,L"6(0" ;%'L"%('-$(6'%+(6@"R(6(>%6@"86$*-'&T"BL%&";%@@">+(&-^/-('@<"-6&-" &'6F@-",$+;'L1";%'L"6"DaJ",$+;'L"$6'-"F-';--("l"6(0"jTd"K-$" 6(0"@+;-$"'L-">+&'"+A"R(6(>%(,"A+$"F+'L"'L-",+:-$(8-('"6(0" >-('T"B;+Q'L%$0&"+A"'L-"DaJ",$+;'L"L6&"F--("0$%:-("F<"0+8-&'%>" K$%:6'-@<"L-@0">+8K6(%-&T"B+"%@@/&'$6'-"'L-"$->-('">+(R0-(>-" 0-86(0" %(" R:-" &->'+$&m" >+88/(%>6'%+(1" R(6(>%6@" &-$:%>-&1" ,6%(-0"%("'L-"R(6(>%6@"86$*-'1"M+B"&/>>-&&A/@@<"%&&/-0"%'&"R$&'" >+(&'$/>'%+(1"86(/A6>'/$%(,1"6(0"$-'6%@T"7>>+$0%(,"'+"'L-"]+$@0" UdQ<-6$",+:-$(8-('"F+(0"%("2+:-8F-$"iZUYT" M6(*1"'L-"->+(+8<";%@@">+('%(/-"%'&"&'$+(,"K-$A+$86(>-"6(0" <$*"&29#$.2$*&=.!&/$.23)0 %(>$-6&-"%'&"DaJ",$+;'L"$6'-";%'L"jQW"K-$">-('"6((/6@@<"'L-"(-I'" 'L$--"<-6$&1"86*%(,"B6(H6(%6"+(-"+A"'L-"'+K"K-$A+$8-$&"%("'L-" )/FQ)6L6$6("$-,%+(T"BL-"B6(H6(%6("86$*-'"L6&"6("-(+$8+/&" K+'-('%6@1"6(0"%&"%("86(<";6<&">+8K6$6F@-"'+"M$6H%@"N/&'"F-A+$-" %('-$(6'%+(6@"R$8&"-('-$-0"'L-"86$*-'T" BL-" 8+(-'6$<" &%'/6'%+(" %(" B6(H6(%6" L6&" &L+;(" &%,(&" +A" %8K$+:-8-('"%("$->-('"<-6$&T"]%'L"6"K$%86$<"+FN->'%:-"'+"6>L%-:-" 6("%(\6'%+("$6'-"+A"ZQd"K-$">-('1"M6(*"+A"B6(H6(%6"OM+BP"86(6,-0" '+"$-0/>-"%(\6'%+("A$+8"0+/F@-Q0%,%'&"%("-6$@<"iZUY"'+"dTl"K-$">-('" K-$"6((/8"Oa->-8F-$"iZUYPT"BL%&"0-:-@+K8-('"%&"6''$%F/'-0"

14 - The Tanzanian Economy

BL-"%(>$-6&-"%("'L-"(/8F-$"+A"F6(*&"+K-$6'%(,"%("B6(H6(%6" L6&">+('$%F/'-0"'+",$+;'L"%("'L-"/&-"+A"R(6(>%6@"&-$:%>-&"6(0" 0+8-&'%>">$-0%'T"5+$"-I68K@-1"'L-"0+8-&'%>">$-0%'"K$+:%0-0"F<" 'L-"F6(*%(,"&->'+$"L6&"%(>$-6&-0"A$+8"UY"K-$">-('"+A"DaJ"%(" iZZj"'+"iX"K-$">-('"%("iZUiT"a-&K%'-"'L-&-"$->-('"%8K$+:-8-('&1" D@+F6@"b+8K-'%'%:-(-&&"E-K+$'"iZUYQiZUX"%0-('%R-0"+F'6%(%(," R(6(>%(,"6&"'L-"8+&'">L6@@-(,%(,"6&K->'"+A"0+%(,"F/&%(-&&"%(" B6(H6(%6T"9("K6$'%>/@6$1")=G&"%("'L-"6,$%>/@'/$-"&->'+$"6(0"&+@-" K$+K$%-'+$&L%K&";%@@"&'$/,,@-"'+"6''6%("@+6(&"0/-"'+"L%,L"%('-$-&'" $6'-&"6(0"&L+$'"86'/$%'%-&"F->6/&-"+A"/($-@%6F@-"%(>+8-"6(0" >+@@6'-$6@"$-^/%$-8-('&T"

Finding the Way Forward 7@'L+/,L"'L-"B6(H6(%6("->+(+8<"%&"-IK->'-0"'+">+('%(/-"%'&" ,$+;'L1"&-:-$6@"->+(+8%>"%(0%>6'+$&"0-86(0"6''-('%+(T"BL-"K/F@%>" 0-F'"'+"DaJ"$6'%+"%(>$-6&-0"A$+8"YZ"'+"Xd"K-$>-('"F-';--("iZZW" 6(0"iZUi1";L%>L"&/,,-&'&"6"'$+/F@-&+8-"A/'/$-"%A"(+'">+('$+@@-0T" 700%'%+(6@@<1"'L-"R(6(>%6@"K$+F@-8&"%("'L-"&'6'-Q+;(-0"-@->'$%>%'<" R$8"B72G)b4"L6:-"&%,(%R>6('@<"%(\/-(>-0"'L-"R&>6@"\-I%F%@%'<" +A"B6(H6(%6T"5%(6@@<1">+('%(/-0",$+;'L";%@@"'+"6"@6$,-"K6$'"0-K-(0" +("M+B[&"6F%@%'<"'+"86%('6%("'L-">/$$-('"@+;"%(\6'%+("$6'-"6(0"'L-" &'6F%@%'<"+A"'L-"B6(H6(%6("&L%@@%(,T

Increase in International Trade BL-"'+'6@"-IK+$'"+A",++0&"6(0"&-$:%>-&"6>>+/('-0"A+$"6KK$+I%86'-@<" S)a"WTd"F%@@%+("+$"YU"K-$">-('"+A"DaJ"%("R&>6@"<-6$"iZUYT"D+@0" 6(0"'+/$%&8"%&"F<"A6$"'L-"8+&'"%8K+$'6('1"6>>+/('%(,"A+$"Xi"K-$" >-('"+A"'+'6@"-IK+$'T"B+'6@"%8K+$'"$-6>L-0"UYTl"F%@@%+(1"%(";L%>L" +%@">+('$%F/'-0"A+$"YV"K-$">-('T"bL%(61"9(0%61"6(0"'L-"G/$+K-6(" S(%+(1"B6(H6(%6[&"86%("'$60%(,"K6$'(-$&1"6>>+/('-0"A+$"XW"K-$" >-('"+A"'+'6@"'$60-T"B+06<1"'$60-";%'L"(-%,LF+/$%(,">+/('$%-&"+(@<" 6>>+/('&"A+$"6"8%(+$"0-,$--"+A"B6(H6(%6([&"%('-$(6'%+(6@"'$60-T""

Source: The World Bank

The Tanzanian Economy - 15

Political Climate

KNOW EXACTLY WHERE YOU STAND

Tanzania is a country shaped by historic events and immigration by primarily the Chinese, Arabs, and Indians, but has remained being a stable nation compared to many African nations. Although signs of increased political pluralism are present, the ruling party Chama Cha Mapinduzi, continues to dominate. The political environment is highly affected by the elected Presidentâ&#x20AC;&#x2122;s agenda, so the upcoming 2015 election will most surely affect the political governance of >&2?&2.&,$>"#$*)52!'%$"&($()$8&'$4##2$(5**#((85/$.2$'#()/:.29$=)/.!.*&/$*)23.*!(6$&21$"&($*)2!.25#1$ its gradual social and political transformation since its independence. The political climate in Tanzania is complex, and it is therefore important to be well informed about the political climate and the history that led to the current situation and possible pitfalls.

The Road to Independence - Historical Overview B6(H6(%6"L6&"6":6$%-0"L%&'+$<1";L%>L"L6&"&-'"'L-">+(0%'%+(&"A+$" 0-:-@+K8-('"+A"'L-">+/('$<T"BL-"7$6F&"&-''@-0"+("n6(H%F6$"%(" UWXZ"6(0"860-"'L-"%&@6(0"6">-('$-"A+$"'$60-";%'L"&@6:-&"6(0"%:+$<T" )%(>-"UWVZ"'L-"G/$+K-6(&"L6&"F--("-IK@+$%(,"'L-"86%(@6(01" 6(0"%("UWVj"%'"F->68-"6"K6$'"+A"BL-"D-$86("G6&'"7A$%>6(">+@+(<T" M$%'6%(",+'"'L-"86(06'-"'+"608%(%&'-$"'L-"$-,%+("%("UVUV1"6(0"$/@-0" 'L-">+/('$<"/('%@"6"K-6>-A/@"'$6(&%'%+("'+"%(0-K-(0-(>-"%("UVlUT"

&'6'-0"'L6'">+$$/K'%+("%&"K6$'"+A"6";-@@QA/(>'%+(%(,"&+>%-'<T"]%'L"6" ,$+;%(,"6;6$-(-&&"+A"'L-"L6$8A/@">+(&-^/-(>-&"+A">+$$/K'%+(1" B6(H6(%6(&"6$-"%(>$-6&%(,@<":+%>%(,"'L-%$"0%&F-@%-:-&"%("'L-">/$$-('" ,+:-$(8-('[&"6F%@%'<"'+">L6(,-T

B$60%'%+(6@@<1"'L-"K$-&%0-('"6@;6<&"K$%+$%'%H-&"0-:-@+K8-('"6(0" %8K$+:%(,"'L-"@%:%(,">+(0%'%+(&"%("'L-"6$-6"%(";L%>L"L-",$-;"/K"%(T" BL-"-@->'%+("%&"'L-$-A+$-"(+'"+(@<"6">+8K-'%'%+("F-';--("K+@%'%>6@" B+06<1"BL-"S(%'-0"E-K/F@%>"+A"B6(H6(%6">+(&%&'&"+A"'L-"86%(@6(0" K6$'%-&1"F/'"6@&+"F-';--("$-,%+(&1"6(0">6("6AA->'"%(A$6&'$/>'/$-" OK+K/@6$@<">6@@-0"B6(,6(<%*6P"6(0"'L-"&-8%Q6/'+(+8+/&"%&@6(0&" >+(&'$/>'%+(1">+$$/K'%+("L6(0@%(,1"6(0"$/@-"+A"@6;"%(",-(-$6@T" +A"n6(H%F6$1";L%>L"8-$,-0"%("UVlX"'L$+/,L"oBL-"7$'%>@-&"+A"'L-" S(0-$&'6(0%(," 'L-&-" %(\/-(>-&" %&" +A" ,$-6'" %8K+$'6(>-" A+$" S(%+(pT"" >+8K6(%-&">+(&%0-$%(,"6"86$*-'"-('$<"%("B6(H6(%6T BL-&-"-@-8-('&"6$-"K-$:6&%:-"%("'L-"&+>%-'<"6(0"6AA->'"2+$;-,%6(" >+8K6(%-&"K$-&-('"%("B6(H6(%6T"G&K->%6@@<"'L-"+%@"6(0",6&"&->'+$" BL-"7$/&L6"0->@6$6'%+("+A"UVlj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

OFFSHORE OPERATIONS

Political situation â&#x20AC;&#x201C; From Socialist Government to Market Economy

An Uncertain Future? BL-"/K>+8%(,"-@->'%+("%("iZUd"%&"6&&+>%6'-0";%'L"/(>-$'6%('<T" BL-">/$$-('"J$-&%0-('"#%*;-'-[&"F6''@-"6,6%(&'">+$$/K'%+("6(0" %('-$(6@">+(\%>'&"6$-"A6$"A$+8"+:-$T"a-&K%'-">+8%(,"%('+"K+;-$" +("'L-"K$+8%&-"+A"$-0/>%(,">+$$/K'%+(1"#%*;-'-"L6&"+AR>%6@@<"

16 - Political Climate

STAY CALM AND IN CONTROL, WHATEVER THE WEATHER THE FULL PICTURE

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International Business Tanzania 2014 - 17

The East African Community - A Futuristic Vision? Uganda Kenya

The establishment of the East African Communityâ&#x20AC;&#x2122;s (EAC) has currently been ".9"/%$.235#2!.&/$.2$.2*'#&(.29$!"#$.2!#''#9.)2&/$!'&1#$&+)29(!$!"#$=&'!2#'$ states, but more potential remains untapped. Continued development will be crucial for Norwegian companies to fully exploit the favourable strategic location Tanzania offers for interregional trade.

BL-" G6&'" 7A$%>6(" b+88/(%'<" OG7bP" %&" 'L-" $-,%+(6@" %('-$,+:-$(8-('6@"+$,6(%&6'%+("+A"'L-"E-K/F@%>&"+A"M/$/(0%1" #-(<61" E;6(061" 'L-" S(%'-0" E-K/F@%>" +A" B6(H6(%61" 6(0" 'L-" E-K/F@%>"+A"S,6(061"L-60^/6$'-$-0"%("7$/&L61"B6(H6(%6T"G7b[&" 8%&&%+("%&"'+";%0-("6(0"0--K-("->+(+8%>1"K+@%'%>6@1"&+>%6@1"6(0" >/@'/$6@"%('-,$6'%+("%("+$0-$"'+"%8K$+:-"'L-"^/6@%'<"+A"@%A-"A+$"'L-" G6&'"7A$%>6("K-+K@-"'L$+/,L"%(>$-6&-0">+8K-'%'%:-(-&&1":6@/-" 600-0"K$+0/>'%+(1"%('-$$-,%+(6@"'$60-1"6(0"%(:-&'8-('&T"BL-" G7b" K6$'(-$" &'6'-&" 6%8-0" '+" -&'6F@%&L" 6" b/&'+8&" S(%+(" %(" iZZd"6(0"6"b+88+("=6$*-'"%("iZUZT"BL-"(-I'"KL6&-"+A"'L-" %('-,$6'%+("%&"K@6((-0"'+"F-"6"=+(-'6$<"S(%+("A+$"'L-"F@+>*"'L6'" /@'%86'-@<"&--*&"'+"F->+8-"6"J+@%'%>6@"5-0-$6'%+("+A"'L-"G6&'" 7A$%>6(")'6'-&T")/>>-&&A/@"6>>+8K@%&L8-('"+A"%'&":%&%+(";+/@0" F-"F-(-R>%6@"A+$"2+$;-,%6(">+8K6(%-&"%("'-$8&"+A"%('-$$-,%+(6@" '$60-T"3+;-:-$1"'L-"0-:-@+K8-('"6(0">+('%(/-0";+$*"+A"G7b" L6&"&+"A6$"F--("K$+F@-86'%>1"@6$,-@<"0/-"'+"0%AA-$-('"&'6,-&"+A" 0-:-@+K8-('"6(0"%(>+L-$-('"'$60-"A$68-;+$*&1"0%&6,$--8-('&" F-';--("'L-"8-8F-$Q&'6'-&1"6(0"&@+;"K+@%><Q%8K@-8-('6'%+(T"

+;("b+6@%'%+("+A"'L-"]%@@%(,"Ob+]P1"%("+$0-$"'+"K/&L"%('-,$6'%+(" 6(0">+@@6F+$6'%+("%('-$(6@@<T"BL%&"L6&">6/&-0"86(<"'+"A-6$"A+$"'L-" A/'/$-"+A"G7bT"B+"06'-1"'L-"b+]"L6&"A6&'Q'$6>*-0"6("%('-,$6'-0" %88%,$6'%+("&<&'-8"'L6'"L6&"@+;-$-0"'L-">+&'"+A"(+(QG6&'"7A$%>6(" >%'%H-(&" '+" '$6:-@" 6>$+&&" 'L-" 'L$--" &'6'-&1" 6(0" &/>>-&&A/@@<" %(>$-6&-0"'+/$%&8"'+"6@@"'L$--"&'6'-&T"5/$'L-$8+$-1"'L-"b+]" L6&"&/>>-&&A/@@<"%8K$+:-0"'L-"%('-$(6@"'$60-"$-@6'%+(&"'L$+/,L" %8K$+:-8-('" +A" %(A$6&'$/>'/$-" F-';--(" 'L-" 'L$--" >+/('$%-&" 'L$+/,L"'$6(&Q>+/('$<"$+60">+(&'$/>'%+("6(0"$6%@;6<"K$+N->'&T"

Challenges of Progress and Stability

Tanzaniaâ&#x20AC;&#x2122;s Role in the EAC

G7b"L6&"A6>-0"K$+F@-8&";%'L"6@%,(%(,"'L-"%('-$-&'&"+A"%'&"R:-" K6$'(-$" &'6'-&" K$%86$%@<" 0/-" '+" :6$<%(," 0-,$--" +A" ->+(+8%>" 0-:-@+K8-('T" 5+$" -I68K@-1" 'L-" 0%AA-$-(>-" F-';--(" 'L-" 0-:-@+K8-('"6(0"->+(+8%>"&'6'-"+A"#-(<6"6(0"'L-"K++$-&'" (6'%+("+A"M/$/(0%"%&"/(^/-&'%+(6F@-T"BL-"0%AA-$-(>-&"F-';--(" 'L-"&'6'-&"6$-"6@&+"6KK6$-('"%("'-$8&"+A"'$60-"6,$--8-('&";%'L" 'L-"G/$+K-6("S(%+(1";L-$-"#-(<6";%'L"%'&"D)J"&'6'/&"L6&"6" ;%0-@<"0%AA-$-('"A$68-;+$*"A+$"'$60-"'L6("'L-"+'L-$"A+/$">+/('$%-&T

B6(H6(%6" L6&" F--(" >$%'%>%&-0" +A" K/@@%(," 'L-" F$-6*&" +(" G7b1" $-A/&%(,"'+"6KK-6$"6'"8--'%(,&"6(0"(-,+'%6'%+(&T"9'"6KK-6$&"'L6'" 'L-"K$%86$<"$-6&+(&"A+$"$-@/>'6(>-"A$+8"'L-"B6(H6(%6(",+:-$(8-('" $-@6'-&"'+"'L-"K-$>-%:-0"'L$-6'"+A"6("%(\/I"+A"%88%,$6'%+("'L6'";%@@" &%,(%R>6('@<"&'$6%("'L-">/$$-('"@6F+/$"86$*-'T"b$%'%>&"L6:-">@6%8-0" 'L6'"'L-"G7b"6KK-6$&"'+"(--0"B6(H6(%6"8+$-"'L6("B6(H6(%6" (--0&"'L-8T"5+$"%(&'6(>-1"'L-"K+$'"+A"a6$"-&")6@68"%&"/&-0"F<" G7b"&'6'-&"'+"%8K+$'",++0&";L-("'/$F/@-(>-"%("#-(<6"K$-:-('&" 'L-8"'+"%8K+$'",++0&"A$+8"'L-"K+$'"+A"=+8F6&6T"4("2+:-8F-$" j'L"iZUY1"J$-&%0-('"#%*;-'-"&'6'-0"'L6'"B6(H6(%6";+/@0"(+'"^/%'" 'L-"G7b1"6(0";%@@">+('%(/-"%'&"-AA+$'&"%("'L-"-&'6F@%&L8-('"+A"6(" ->+(+8%>6@@<"&'$+(,"G7bT"a-&K%'-"'L%&"&L%(%(,"K$+>@686'%+("+A"

9('-$(6@"0%&6,$--8-('&"F-';--("'L-"R:-"&'6'-&"L6:-"F--("6" &+/$>-"+A">+(\%>'"6(0"-AA->'%:-@<"$-0/>-0"'L-"K$+,$-&&"+A"G7b[&" ;+$*T"9("A6>'1"#-(<61"E;6(061"6(0"S,6(06"L6:-"A+$8-0"'L-%$"

18 - EAC

a-&K%'-">/$$-('"%('-$(6@">L6@@-(,-&";%'L"'L-"6@$-60<"-&'6F@%&L-0" b+88+("=6$*-'"6(0"b/&'+8&"S(%+(1"G7b"%&"0-'-$8%(-0"'+" %8K@-8-('"6"8+(-'6$<"/(%+("%("'L-"(-6$"A/'/$-T"BL-"K+'-('%6@" 8+(-'6$<"/(%+("%&">+(&%0-$-0"L%,L@<"K$-86'/$-"0/-"'+"$->-('" >L6@@-(,-&"6(0"'L-"-8-$,-(>-"+A"b+]1"6(0"L6&">6/&-0"'L-" ]+$@0"M6(*"'+">6/'%+("'L-"G7b"+A"'L%&"%(%'%6'%:-T"BL-"(-,+'%6'%+(&" +A"'L-"8+(-'6$<"/(%+("'L6'">+88-(>-0"%("iZUU"6$-">+('%(/%(,1" &/,,-&'%(,"'L6'"'L-"/(%+("86<"&'%@@"L6KK-("%("'L-"(-6$"A/'/$-T"

Rawanda Burundi Tanzania

>+88%'8-('1"%'"$-86%(&"'+"F-"&--(";L-'L-$"B6(H6(%6";%@@">+('%(/-" '+"A/@R@"'L-%$">+88%'8-('"'+"'L-"G7bT"

EU involvement with the EAC and possible trade agreement including Norwegian businesses B+"06'-1"'L-"G7b"L6&"F--("/(6F@-"'+"F->+8-"&/&'6%(6F@-1";%'L"lZ" K-$">-('"+A"'L-"F/0,-'"$-@<%(,"+("A/(0%(,"A$+8"0+(+$&"OK$%86$%@<" GS"8-8F-$"&'6'-&PT"a/-"'+"'L-"-IK%$6'%+("+A"'L-"]B4";6%:-$1" 'L-"G7b"%(%'%6'-0"6("%('-$%8"G>+(+8%>"J6$'(-$&L%K"7,$--8-('" OGJ7P";%'L"'L-"GS"%("iZZjT"b/$$-('@<1"'L-"GS"6(0"'L-"G7b"6$-" (-,+'%6'%(,"6">+8K$-L-(&%:-"G>+(+8%>"J6$'(-$&L%K"7,$--8-('" OGJ7PT"a/-"'+"'L-"0-60@%(-"A+$"'L-"%('-$%8"GJ7"6,$--8-('"'L%&" 4>'+F-$1"'L%&"<-6$";%@@"F-"%8K+$'6('"A+$"'L-"A/'/$-"+A"GSqT"GJ7" %&"&/KK+$'%(,"'L-"0-:-@+K8-('"+A"'L-"K$%:6'-"F/&%(-&&"&->'+$" F-';--("'L-"GS"6(0"'L-"b+'+(+/Q>+/('$%-&1"%(>@/0%(,"'L-"G7bT" BL-",+6@"%&"'+"K$+:%0-"&/KK+$'"'+"K$%:6'-"&->'+$"'L$+/,L"'$60-T

Future of the EAC BL-"A/'/$-"+A"'L-"G7b"6KK-6$&"'+"F-"L%,L@<"/(>-$'6%("0/-"'+"&@+;" K$+,$-&&1"%('-$(6@">+(\%>'&1"K+@%'%>6@"%(&'6F%@%'<1"6(0"/(&/&'6%(6F@-" A/(0%(,T"BL-"$-6@%&6'%+("+A"6";-@@QA/(>'%+(%(,"G7b";+/@0"F-"L%,L@<" F-(-R>%6@"A+$"2+$;-,%6(">+8K6(%-&1"6(0"'L-"2+$;-,%6("G8F6&&<" %("B6(H6(%6"6>>-('/6'-&"'L6'"'L-"/(>-$'6%('<"+A"G7b[&"A/'/$-" &L+/@0"(+'"F-"0->%&%:-"A+$"K$+&K->'%:-"2+$;-,%6(">+8K6(%-&T"a/-" '+"-IK->'-0"0-:-@+K8-('";%'L%("'L-"<-6$1"K$+&K->'%:-">+8K6(%-&" 6$-"/$,-0"'+"&'6<"/K06'-0"+("'L-"&%'/6'%+("+A"G7b">+('%(/+/&@<T

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* EEA/EAC-trade as EU member states will in the near future decide whether to include EEA-countries.

EAC - 19

Trading with Tanzania The opening of Tanzania’s port for international trade over the past decade has been imperative for the country’s economic growth. From 2000 to 2012, exports grew faster than that of countries like Brazil, Tunisia and Thailand. The total value of imported goods and services currently adds up to more than half of Tanzania’s annual GDP. In the 2013 The World Bank report, Tanzania Economic Update, Tanzania was ranked 88th out of 156 countries with regards to connectivity to domestic and international markets. Although this indicates that Tanzania is more open to international trade than other nations in the East African region, the country is still falling behind most East Asian nations.

Growth Opportunities BL-" 86%(" 0$%:-$" A+$" 'L-" %(>$-6&-0" +K-((-&&" '+" '$60-" %&" 'L-" K+$'"+A"a6$"-&")6@668T"b+8K6$-0"'+"@6(0@+>*-0"(-%,LF+/$%(," >+/('$%-&1"B6(H6(%6"%&"(6'/$6@@<"8+$-">+((->'-0"'+"'L-"+/'&%0-" ;+$@01";L%>L"&L+/@0"F-"F-(-R>%6@"A+$"'$60-";%'L"'L-",@+F6@"86$*-'T" 3+;-:-$1">+(&%0-$%(,"'L-"&'$6'-,%>6@@<"K-$A->'"@+>6'%+("+A"'L-" K+$'"%("$-@6'%+("'+"'L-"$-&'"+A"G6&'"7A$%>61"%'"%&">6/&-"A+$">+(>-$(" 'L6'"B6(H6(%6"0+-&"(+'"$6(*"L%,L-$"'L6("WWT"B6(H6(%6"$-86%(&" $-@6'%:-@<">@+&-0"F<",@+F6@"&'6(06$0&1"6&"(-'"-I'-$(6@"'$60-"L6&"+(" 6:-$6,-"+(@<">+('$%F/'-0"iZ"K-$">-('"+A"DaJ"A$+8"iZZZ"'+"iZUUT" 3+;-:-$1"B6(H6(%6[&"->+(+8%>"0-:-@+K8-('"6(0"K+K/@6'%+(" ,$+;'L"L6:-"&%8/@'6(-+/&@<"&-$:-0"6&"6"0$%:-$"A+$"%(>$-6&-0" %8K+$'&T"b+8K6$-0"'+"+'L-$"&/>>-&&A/@"-8-$,%(,"86$*-'&"%("G6&'" 7&%61"bL%@-"6(0"M+'&;6(61"B6(H6(%6[&"(-'"-I'-$(6@"'$60-"&L6$-" &L+;&"$++8"A+$"0-:-@+K8-('1"6(0"6KK-6$&"'+"F-"6"0->%&%:-"6$-6" +A"%8K$+:-8-('"'+"F++&'"'L-"->+(+8<"%("'L-"<-6$&"'+">+8-T""""

High Transport Costs BL-$-"6$-"&-:-$6@"+F&'6>@-&"A+$"A/$'L-$"-IK6(&%+("+A"'$60-"%(" B6(H6(%61"'L-"8+&'"&%,(%R>6('"+(-"F-%(,"L%,L"'$6(&K+$'">+&'&T" ]L-(">+8K6$%(,"'$6(&K+$'6'%+(">+&'&"%("B6(H6(%6";%'L"+'L-$" &/>>-&&A/@"-8-$,%(,"->+(+8%-&1"'L-",6K"%&"0%&'/$F%(,@<"@6$,-T" B+"%@@/&'$6'-1"%'"%&"6@8+&'"jZ"K-$">-('"8+$-"-IK-(&%:-"'+"'$60-" F-';--("bL%(6"6(0"B6(H6(%61"'L6("F-';--("bL%(6"6(0"M$6H%@T" BL-"K+$'"+A"a6$"-&")6@6681";L-$-"$+/,L@<"VZ"K-$">-('"+A"6@@" '$60-0",++0&"K6&&-&"'L$+/,L1"%&"L%,L@<"%(-AR>%-('T"BL-"K+$'"%&" 'L-$-A+$-">+(&%0-$-0"'L-"K$%86$<"&+/$>-"+A"'L-"-I>-&&%:-">+&'&" 6&&+>%6'-0";%'L"'$6(&K+$'6'%+("'+"6(0"A$+8"B6(H6(%6T"5/$'L-$8+$-1" 'L-">+((->'%+("F-';--("'L-"K+$'"6(0"$6%@;6<"@6(0"%&"K++$T"BL%&1" %("600%'%+("'+"6("/(&6'%&A6>'+$<"$6%@;6<1"86*-&"'$6(&K+$'"'+"6(0" 'L$+/,L"B6(H6(%6"6"@+(,"6(0"-IK-(&%:-"K$+>-&&T"BL-"0-:-@+K8-('" K+'-('%6@"%&"@6$,-"6(0"'+"6",$-6'"-I'-('"/('6KK-0T"b+(:-$&-@<1"

20 - Trading with Tanzania

BL-"=+8F6&6"K+$'"%("#-(<6"L6&"F--("&%,(%R>6('@<"%8K$+:-0" 'L-"@6&'"<-6$&1"6(0"(+;"L6&"6"+(-Q06<";6%'%(,"'%8-1">+8K6$-0" '+"UZ"06<&"%("a6$"-&")6@668T"2+(Q'6$%AA"F6$$%-$&"O2BM&P"6$-"6@&+" >+('$%F/'%(,"'+"A6>'+$&"&/>L"6&"K$+@+(,-0">@-6$%(,"K$+>-0/$-&1" 6(0"86*-&"0+%(,"F/&%(-&&"%("G6&'"7A$%>6"-IK-(&%:-T

No Bilateral Trade Agreement b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a6$" -&")6@668";+/@0"(+'">+(R$8"'L6'"6"F%@6'-$6@"'$60-"6,$--8-('" F-';--("2+$;6<"6(0"B6(H6(%6"%&"/(0-$"6(<"&-$%+/&">+(&%0-$6'%+(T" 7("+K'%+("%&"A+$"2+$;6<"'+"N+%("'L-"GS"%("(-,+'%6'%+(&"A+$"6" F%@6'-$6@"'$60-"6,$--8-('";%'L"'L-"G6&'"7A$%>6("b+88/(%'<T"BL-" (-,+'%6'%+(&"6$-"&'%@@"6'"6("-6$@<"&'6,-1";%'L"'L$--"6,$--8-('&" &%,(-0" ;%'L"B6(H6(%61" $-&K->'%:-@<" >++K-$6'%+(" +(" '6I6'%+(1" %88%,$6'%+("6(0"'L-"K+$'"6/'L+$%'<T"5/$'L-$"(-,+'%6'%+(&"0-K-(0" +("'L-"0-:-@+K8-('"+A"'L-"G7bT" BL-"@6>*"+A"6"F%@6'-$6@"'$60-"6,$--8-('"F-';--("2+$;6<"6(0" B6(H6(%6">6("F-"6("+F&'6>@-"-&K->%6@@<"A+$"&86@@"6(0"8-0%/8" &%H-0" -('-$K$%&-&" O)=G[&P1" ;L%>L" 0+" (+'" L6:-" 'L-" K+;-$" +$" ->+(+8%-&"+A"&>6@-"'+"R,L'">+$$/K'%+("6&"@6$,-$"-('-$K$%&-&"0+T" BL-"%8K+$'6(>-"+A",++0">+(0%'%+(&"A+$")=G[&"%&"$->+,(%H-0"

Fishmarket in Bagamoyo

F<" 'L-" GS" 0-@-,6'%+(1" ;L-$-" E+0$%,+" E+8-$+" r6(" b/'&-8" &'6'-&`"o)86@@Q6(0"8-0%/8"&%H-0"-('-$K$%&-&"L-@K"6">+/('$<"'+" ,$+;pT"9("+$0-$"A+$"B6(H6(%6"'+"6>L%-:-"L%,L-$"->+(+8%>",$+;'L1" -8K@+<8-('"6(0"&/&'6%(6F@-"0-:-@+K8-('1"'L-<"6$-"0-K-(0-('" +("6",++0"%(:-&'8-('">@%86'-"A+$"'L-")=G[&T

B6(H6(%6"L6&"F--(">6@@-0"6"o&@--K%(,",%6('p"6(0"%A"'L-",+:-$(8-('" 6(0"%('-$(6'%+(6@"%(:-&'+$&"86*-"'L-"$%,L'"0->%&%+(&1"'L-"K+'-('%6@" %&"%88-(&-T

A Sleeping Giant 9("iZUi1"'L-"-IK+$'"A$+8"B6(H6(%6"'+"2+$;6<"-I>--0-0"'L-" >+$$-&K+(0%(,"%8K+$'T"B6(H6(%6"-IK+$'-0",++0&"-^/%:6@-('"+A" 24#"YjX"8%@@%+(1">+(&%&'%(,"86%(@<"+A"86>L%(-$<"6(0"'$6(&K+$'" -^/%K8-('T"BL-"%8K+$'1"+("'L-"+'L-$"L6(01"+(@<"68+/('-0"24#" XY"8%@@%+(T"7$,/6F@<1"'L-"$-6&+("A+$"'L-"@+;"-IK+$'"A$+8"2+$;6<" $-@6'-&"'+"'L-"L%,L"'$6(&K+$'6'%+(">+&'&1"'$60-"F6$$%-$&1"6(0"'L-" >/$$-('"%(6F%@%'<"'+">6K%'6@%H-"+("B6(H6(%6[&"&'$6'-,%>"@+>6'%+(T"

Trading with Tanzania - 21

Cultural Differences Tanzania is a country that differs hugely from Norway in terms of both location and climate, but perhaps more importantly, in terms of culture. To be able to succeed in Tanzania, it is vital to gain a true understanding of the culture. @&./.29$!)$521#'(!&21$!"#$1.88#'#2*#($*)5/1$#&(./%$4#$&$()5'*#$)8$*)23.*!$&21$ failure to succeed in the market.

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o;-p"%&"8+$-"K$-:6@-('"'L6("o9p1"6$,/6F@<"0/-"'+"'L-">+/('$<k&" L%&'+$<";%'L"&+>%6@%&8T"B6(H6(%6(&":6@/-"'L-%$"A68%@%-&"L%,L@<1"6(0" Power Distance (PDI), Individualism versus collectivism (IDV), Masculinity versus '+",$-6'-$"-I'-('"'L6("'L6'"+A"8+&'"2+$;-,%6(&T"5+$"-I68K@-1" femininity (MAS), Uncertainty avoidance (UAI), Pragmatic Versus Normative (PRA), 6&"B6(H6(%6"0+-&"(+'"L6:-"6";-@@QA/(>'%+(%(,";-@A6$-"&<&'-81" Indulgence versus Restraint (IND) Source: http://geert-hofstede.com/tanzania A68%@%-&" A/(>'%+(" 6&" 6" &+>%6@" &6A-'<" (-'T" B6(H6(%6([&" A68%@<" b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

22 - Cultural Differences

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9("B6(H6(%6"K6'%-(>-"'$/@<"%&"6":%$'/-"'L6'"%&"%8K-$6'%:-"'+"86&'-$T" o7A$%>6("B%8-1p"%&"6("-IK$-&&%+(">+%(-0"F<";-&'-$("%(0%:%0/6@&1"6(0" $-A-$&"'+";L6'"8+&'"2+$;-,%6(&";+/@0">6@@"'6$0%(-&&T"BL$+/,L+/'" -:-$<"6&K->'"+A"$/((%(,"6"F/&%(-&&1"86(6,-$&"A$+8"2+$;6<"6$-" ;%&-"'+"-IK->'"-:-$<'L%(,"'+"'6*-"@+(,-$"'L6("K@6((-0T"M/&%(-&&-&" +A'-(";6%'"o/($-6&+(6F@<p"@+(,"+(",+:-$(8-('"%(&'%'/'%+(&"6(0" @+>6@"K6$'%-&"'+"K$+>-&&"$-^/-&'&T"9("A6>'1"%'"6KK-6$&"'L6'"'L-"KL$6&-" o'%8-"%&"8+(-<p"(-:-$"$-6>L-0"B6(H6(%6T"=+&'"B6(H6(%6(&"6$-" (+'"/&-0"'+"'L%(*"%("'-$8&"+A"'%8-@%(-&&"6(0"K@6((%(,1"6(0"$6'L-$" @%:-"F<"'L-":-$<">+88+(@<"L-6$0"-IK$-&&%+("oL6*/(6"86'6'6p"O(+" ;+$$%-&PT"B+"&/>>-&&A/@@<"+:-$>+8-"'L%&1"6";%&-"86(6,-$"^/%>*@<" @-6$(&";L-("'+"F-"K6'%-('1"6(0";L-("'+"K/&L"'L%(,&"A+$;6$0T""

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7@'L+/,L"8+&'"+A"'L-"8-('%+(-0"A6>-'&"+A"'L-"B6(H6(%6(">/@'/$-" >6("F-",-(-$6@%H-0"'+"86N+$%'<"+A"B6(H6(%6(&1";-"-8KL6&%H-" 'L6'"'L-$-"6$-"@6$,-">/@'/$6@"0%AA-$-(>-&";%'L%("B6(H6(%6T"4/$" &'/0<";6&"K$%86$%@<">+(0/>'-0"%("'L-"/$F6("6$-6&"+A"M6,68+<+" 6(0"a6$"-&")6@6681";L%>L"0%AA-$&",$-6'@<"A$+8"8+$-"$/$6@"6$-6&T" BL-">/$$-('"%(\/I"+A"A+$-%,("%(:-&'8-('&"%&"&@+;@<">L6(,%(,"'L-" >/@'/$-"+A"B6(H6(%61"6(0"%'&"%(\/-(>-"%&"6@$-60<"0-'->'6F@-"%("a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

Cultural Differences - 23

Infrastructure One of the key factors holding back the Tanzanian economy is the lack of and poor quality of infrastructure. Measured in electric power consumption, Tanzanians used 92 kWh per capita on average in 2011 according to the World A&2B6$(.92.7*&2!/%$/)0#'$!"&2$*)+=&'&4/#$/)0C.2*)+#$D54CD&"&'&2$*)52!'.#($ like Kenya (155 kWh) and Angola (248 kWh). The major infrastructural challenges facing businesses are instabilities in electricity supply and poor transportation networks."

Instabilities in Electricity Supplies

>+8K6(%-&"%(:-&'"%("6>>-&&"'+"6",-(-$6'+$"+$"+'L-$"$-@%6F@-"K+;-$" &+@/'%+(&T"BL%&"600-0"&->/$%'<">+8-&"6'"'L-"K$%>-"+A"L%,L-$">6K%'6@1" A/-@"6(0"86%('-(6(>-">+&'&1";L%>L"86*-&"%'"@-&&"A-6&%F@-"A+$" 0%&->+(+8%-&"+A"&>6@-1"%T-T"&86@@"6(0"8-0%/8"&%H-0"-('-$K$%&-&" O)=GPT"BL/&1"Wd"K-$">-('"+A"@6$,-$">+$K+$6'%+(&"L6:-"6>>-&&"'+" 6'"@-6&'"+(-",-(-$6'+$">+8K6$-0"'+"dd"K-$">-('"A+$"'L6'"+A")=GT" 36:%(,"6>>-&&"'+",-(-$6'+$&"6(0"-AR>%-('"&;%'>L%(,"&<&'-8&" Source: The World Economic Forum – The Global Competeitiveness Report 3013,$-6'@<"-(L6(>-&"'L-"$-@%6F%@%'<"+A"'L-"K+;-$"&+@/'%+(1"-AA->'%:-@<" 14. Scores are values on a 1-7 scale, with 7 being the most desirable outcome. $-0/>%(,"'L-"-IK-$%-(>-0"0+;(&%0-&"'+"+>>6&%+(6@",@%88-$%(," b/&'+8-$&" +A" 'L-" (6'%+(6@" -@->'$%>%'<" K$+:%0-$" B72G)b4" +A"@%,L'&T"BL-",+:-$(8-('"%&"6@&+"K@6((%(,"L/,-"%(:-&'8-('&" A$-^/-('@<"-IK-$%-(>-"F+'L";6$(-0"6(0"/(;6$(-0"K+;-$"+/'6,-&1" %("-IK6(0%(,"'L-">/$$-('"K$+0/>'%+(">6K6>%'<"%("'L-"K/F@%>",$%01" >6/&%(,"8%&&-0"K$+0/>'%+("'6$,-'&"6(0"$-0/>-0"K$+R'&T"7>>+$0%(," $-0/>%(,"@+&&-&"%("0%&'$%F/'%+("6(0"'$6(&8%&&%+(">/$$-('@<"6'"ij" '+"'L-"]+$@0"M6(*1"B6(H6(%6("F/&%(-&&-&"@+&-"6("6:-$6,-"+A" K-$">-('1"6(0"6@&+"$-0/>%(,"'L-"L<0$+K+;-$"0-K-(0-(><"'L$+/,L" lTY"K-$">-('"+A"'L-%$"&6@-&"0/-"'+"K+;-$"+/'6,-&T"BL-"(-';+$*" 'L-">+(&'$/>'%+("+A"6"(6'/$6@",6&"K%K-@%(-"A$+8"'L-"&+/'L"'+"a6$" >6K6>%'<"%&"(+'"&/AR>%-('"'+"&-$:-"6@@">/&'+8-$&"&%8/@'6(-+/&@<1" -&")6@668T >6/&%(,"'L-"&/KK@%-$"'+"$6'%+("K+;-$"6>>-&&"F-';--("%'&"/&-$&T" S(;6$(-0"+/'6,-&"6$-"/&/6@@<">6/&-0"F<"'L-"K++$"^/6@%'<"+A" Transportation – an Infrastructural Bottleneck 'L-",$%01"6(0"86@A/(>'%+(&"%("-@->'$%>6@">%$>/%'&1";%$-&1"&;%'>L-&" BL-"+'L-$"86N+$"%(A$6&'$/>'/$6@">L6@@-(,-"A6>%(,"F/&%(-&&-&"%(" B6(H6(%6"%&"'L-"K++$@<"0-:-@+K-0"'$6(&K+$'6'%+("(-';+$*&T"4(@<" 6(0"A/&-&"+>>/$"06%@<T WTi"K-$">-('"+A"'L-"Wl"Xji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a/$%(," &@+;"&K--0&"A+$"6>>-K'6F@-">+8A+$'"6(0":-L%>@-";-6$"6(0"'-6$" 'L-"@6&'"&-:-$-"0$6/,L'"%("iZUU1"'L-"(6'%+("&/AA-$-0"06%@<"UiQL+/$" @-:-@&T"7"F%,,-$"K$+F@-8";%'L"/(K6:-0"$+60&"%("'L%&"$-,%+("%&"'L-" +/'6,-&";%'L"&'6$*"$6'%+(%(,T"J++$"86(6,-$%6@"0->%&%+(&"6(0" -AA->'&"+A"'L-"$6%("&-6&+(1"/&/6@@<"%("7K$%@"6(0"=6<T"BL-"L-6:<"$6%(" &L+$'Q'-$8-0"R(6(>%6@"K@6((%(,"6@&+"600"'+"'L-"K$+F@-8T"4("'L%&" >6/&-&"L/,-"6$-6&"'+"F-"%(6>>-&&%F@-"0/-"'+"\++0%(,T"b+8F%(-0" 86''-$1"B72G)b4"L6:-"@++*-0"'+"2+$;6<"A+$"L-@K"A$+8")'6'(-''T" ;%'L"'L-"@+;"@-:-@"+A"0$%:-$"&*%@@&1"'L%&"86*-&"$+60"L6/@6,-"6(" B+"8%'%,6'-"'L-"/(K$-0%>'6F@-"+/'6,-&"%("'L-"K/F@%>",$%01"86(<" /(0-&%$6F@-"+K'%+(T

24 - Infrastructure

Infrastructure - 25

blest.no

Ships unloading their cargo at the Port of Dar es Salaam

Freighters waiting outside the Port of Dar es Salaam.

B$60%'%+(6@@<1"$6%@;6<"'$6(&K+$'6'%+("L6&"F--("6"8+$-"A6:+/$6F@-" +K'%+(" %(" B6(H6(%61" 6&" %'" L6&" @+;-$" /(%'" >+&'&1" %&" 8+$-" -(:%$+(8-('6@@<"A$%-(0@<1"6(0"%&">+(&%0-$-0"&6A-$T"b+(:-$&-@<" 'L-"&L6$-"+A"%8K+$'-0"'+((6,-"A$-%,L'":+@/8-&"@-6:%(,"'L-"J+$'" +A"a6$"-&")6@668"+("$6%@;6<&"L6:-",$60/6@@<"0->$-6&-0"A$+8" lZ"K-$">-('"%("'L-"UVjZ&"6(0"UVWZ&"'+"j"K-$">-('"%("iZUiT"BL%&" %&"@%(*-0";%'L"&>6('<"8+0-$(%H6'%+("%(:-&'8-('&"%("$6%@;6<&1" >6/&%(,"'L-">+(0%'%+("+A"'$6>*&"6(0"@+>+8+'%:-&"'+"0-'-$%+$6'-T" BL-"L/,-"&L%A'"'+"@+$$<"'$6(&K+$'"L6&">+(:-<-0"+:-$"/&6,-"+A" $+60&1">6/&%(,"'L-",+:-$(8-('"-I'$6"$-K6%$">+&'&T

5+$">%'%H-(&1";6'-$"&/KK@<"6(0"L+/&%(,"%("/$F6("6$-6&"6$-"6@&+" ,$+;%(,">+(>-$(&"0/-"'+"'L-"-IK->'-0"K+K/@6'%+(",$+;'L"6(0" /$F6(%H6'%+(T"]L%@-"K$+N->'&"'+"%(>$-6&-"'L-"K%K-0";6'-$"&/KK@<"+A" 'L-"86%(">%'<"a6$"-&")6@668"6$-"/(0-$">+(&'$/>'%+(1"'L-">/$$-('" >6K6>%'<"+A"dZ"@%'$-&"K-$">6K%'6"K-$"06<"%&"6'"@-&&"'L6("L6@A"'L6'" +A"26%$+F%"%("(-%,LF+/$%(,">+/('$<"#-(<6T

BL-"a6$"-&")6@668"J+$'"%&"'L-">-('$6@"L/F"A+$"VZ"K-$">-('"+A" B6(H6(%6[&"%('-$(6'%+(6@"'$60-1">@-6$%(,"sUd"F%@@%+("+A",++0&"-:-$<" <-6$1"+$"lZ"K-$">-('"+A"B6(H6(%6[&"DaJ"%("iZUiT"3+;-:-$1"&L%K&" +A'-("&K-(0";--*&",-''%(,"'L$+/,L"'L-"@+;">6K6>%'<">+(&'$6%('&" +A"'L-"J+$'T"9(-AR>%-(>%-&"6'"'L-"J+$'";-$-"-&'%86'-0"'+">+&'"'L-" B6(H6(%6("->+(+8<"sUTW"F%@@%+("%("iZUi1"+$"6F+/'"j"K-$">-('"+A" B6(H6(%6[&"6((/6@"DaJ1"6>>+$0%(,"'+"'L-"]+$@0"M6(*T"5$-%,L'-$&" '<K%>6@@<";6%'"6("6:-$6,-"+A"UZ"06<&"'+"F-$'L1"6(0"6("600%'%+(6@" UZ"06<&"'+"F-"6F@-"'+"/(@+60"'L-%$">6$,+T"9("+$0-$"'+"%(>$-6&-"'L-" 0+>*%(,">6K6>%'<1"'L-",+:-$(8-('"%&">/$$-('@<"K@6((%(,"6"(-;" 0+>*"+/'&%0-"M6,68+<+"%(">++K-$6'%+(";%'L"bL%(-&-">+('$6>'+$&T

BL-"@+;"@-:-@"+A"%(A$6&'$/>'/$-"6@&+"+K-(&"A+$"+KK+$'/(%'%-&"A+$"'L-" >+('$6>'%(,"%(0/&'$<T"bL%(6"L6&"^/%>*@<"F->+8-"B6(H6(%6[&"@6$,-&'" '$60%(,"K6$'(-$1"@-0"F<"bL%(-&-">+('$6>'+$&1"6(0"6>>+/('-0"A+$" Ud"K-$">-('"+A"B6(H6(%6[&"'$60-1"+$"siTd"F%@@%+(1"%("iZUiT"B+06<1" 'L-"bL%(-&-">+('$6>'+$&"L6:-"&->/$-0"6,$--8-('&";+$'L"'-(&" +A"F%@@%+(&"+A"0+@@6$&1";%'L"K$+8%&-&"+A"6"F$%,L'-$"A/'/$-"A+$"'L-" %(A$6&'$/>'/$-"@-:-@&"6(0"&'6(06$0"+A"@%:%(,"+A"B6(H6(%6(&T

SUPPLY BASE OPERATIONS ! INTEGRATED LOGISTICS SOLUTIONS INFRASTRUCTUR DEVELOPMENT ! FACILITY MANAGEMENT

NORSEA GROUP SUPPLY BASE CONCEPT: “A ONE STOP SHOP” SERVICE CENTER WHO WE ARE NorSea Group is the leading provider of base services and integrated logistics solutions to the Norwegian oil and gas industry. With almost 50 years in the business, we are an experienced logistics partner within all logistics disciplines in the supply chain.

WE CAN OFFER A unique and efficient supply base concept, extensive experience from the Norwegian oil and gas industry, and premium Norwegian quality in Health, Safety, Environment and Quality.

T H E L E A D I N G P R O V I D E R O F S U P P LY B A S E S & L O G I S T I C S S O L U T I O N S T O T H E O F F S H O R E I N D U S T R Y

norseagroup.com

26 - Infrastructure

International Business Tanzania 2014 - 27

Sector Analysis

Oil and Gas

Introduction >&2?&2.&$.($#E=#'.#2*.29$(!')29$#*)2)+.*$9')0!",$D.2*#$FGGH6$7:#$(#*!)'($ I&9'.*5/!5'#6$*)++52.*&!.)26$+&258&*!5'.296$'#!&./$!'&1#6$4&2B.296$&21$72&2*.&/$ services) have accounted for 60 per cent of the contribution to GDP alone. The contribution to GDP from communication has almost doubled over the past four years with a growth rate of 20 per cent annually, while retail trade increased with almost 40 per cent between 2008 and 2012

!"#$%&'(")*+","(&#*-../%&0"(&(#1* B6(H6(%6" %&" -(0+;-0" ;%'L" 6" :6$%-'<" +A" $-&+/$>-&" 6(0" %&" 6(" %8K+$'6('"-IK+$'-$"+A",+@01">+AA--1"'-61"'+F6>>+1">6&L-;"(/'&1" 6(0">+''+(1"%("600%'%+("'+"%'&"@6$,-"0-K+&%'&"+A">+6@1",6&1"6(0" F%+86&&T"BL-"$->-('"&%,(%R>6('",6&"0%&>+:-$%-&"+AA"'L-">+6&'"+A" B6(H6(%6"6(0"A/$'L-$"0-:-@+K8-('"+A"-I'$6>'%:-"%(0/&'$%-&"6$-" A+$->6&'-0"'+"K$+:%0-"6"A/$'L-$"F++&'"'+"'L-"->+(+8<T 7,$%>/@'/$-"%&"6"86N+$"&->'+$"%("B6(H6(%6"6(0"6>>+/('&"A+$"6F+/'" 6"^/6$'-$"+A"DaJT"9'">+:-$&"8+&'"+A"'L-">+/('$<[&"-IK+$'&"6(0" 6>>+/('&"A+$"6">$/>%6@"K6$'"+A"@+>6@"-8K@+<8-('T B+/$%&8"%&"6@&+"6("%8K+$'6('">+('$%F/'+$"'+"'L-"B6(H6(%6("->+(+8<" 6(0"-8K@+<8-('1"6(0"6>>+/('-0"A+$"Uj"K-$>-('"+A"'L-">+/('$<[&" DaJ"%("iZUUT"B6(H6(%6"L6&"&-:-$6@"@6$,-"(6'%+(6@"K6$*&";%'L"6" /(%^/-"6(0"6F/(06('";%@0@%A-1"F-6/'%A/@"F-6>L-&1"6(0"&K->'6>/@6$" &>-(-$<"'L6'1"%("600%'%+("'+"=+/('"#%@%86(N6$+1"6''$6>'"'+/$%&'&" A$+8"6$+/(0"'L-";+$@0T"

Source: National Bureau of Statistics

B6(H6(%6"%&"%("6"L%,L@<"-I>%'%(,"&'6,-"+A"0-:-@+K8-('"6(0"6(" %(>$-6&%(,"(/8F-$"+A"%('-$(6'%+(6@"%(:-&'+$&"L6:-"&K+''-0"'L-" '$-6&/$-&"'L%&">+/('$<"K+&&-&&-&T"a/-"'+"'L-%$"$-@-:6(>-"A+$" K$+&K->'%:-" 2+$;-,%6(" >+8K6(%-&1" 'L-" &->'+$&" 6,$%>/@'/$-1" 8%(%(,1"K-'$+@-/81"6(0"$-(-;6F@-"-(-$,<"6$-"%("'L-"A+@@+;%(," %(:-&'%,6'-0T"

Source: Tanzania Investment Centre

28 - Sector Analysis

Substantial Gas Reserves

Competitive Environment

9("iZUi1"B6(H6(%6"%(>$-6&-0"'L-"-&'%86'-"+A"$->+:-$6F@-"(6'/$6@" ,6&"$-&-$:-&"A$+8"iV"B$%@@%+("b/F%>"5--'"O'>AP"'+"YY"'>AT"7'"K$-&-('" '%8-1"'L-"/K&%0-"K+'-('%6@"%&"-&'%86'-0"'+"6&"8/>L"6&"lZ"'>A"+A" (6'/$6@",6&T"BL-&-"R,/$-&"6$-"@%*-@<"'+"%(>$-6&-"%("'L-"<-6$&"'+" >+8-T"

)%(>-"iZUZ1"86N+$">+8K6(%-&"&/>L"6&"4KL%$"G(-$,<1"GII+(=+F%@1" MD1"J-'$+F$6&1")L-@@"6(0")'6'+%@"L6:-"-('-$-0"'L-"B6(H6(%6(" 6$-(6T")'6'+%@"+K-$6'-&"M@+>*"i";%'L"6"ld"K-$">-('"&L6$-1"6(0" GII+(=+F%@"L6&"Yd"K-$">-('T"MD"+K-$6'-&"%("M@+>*"U";%'L"lZ"K-$" >-('1";L%@-"K6$'(-$"4KL%$"L+@0&"iZ"K-$">-('T"M+'L"K6$'(-$&L%K&" K+&&-&&"R(0%(,&"@6$,-"-(+/,L"A+$"'L-"$-6@%H6'%+("+A"@%^/-R-0" (6'/$6@",6&"O.2DP"K$+N->'&1"L+;-:-$")'6'+%@"6(0"MD"6$-"(+;" N+%('@<";+$*%(,"'+"&-@->'"6("60-^/6'-"&%'-"A+$"6"K+&&%F@-"A/'/$-" .2D"0-:-@+K8-('T"

]L%@-"'L-$-"L6:-"F--("L/,-"0%&>+:-$%-&"+A"(6'/$6@",6&1"-IK@+$6'%+(" A+$" +AA&L+$-" +%@" L6&" (+'" K$+:-(" &/>>-&&A/@T" 2-:-$'L-@-&&1" ,-+@+,%&'&"&/,,-&'"'L6'"'L-"-IK@+$6'%+("&L+/@0">+('%(/-T

Oil and Gas - 29

The Value of 40 Years of Experience We were among the pioneers in deepwater drilling in the harsh environment of the North Sea. Through four decades we have done our best to provide safe drilling , engineering- and well services to our clients.

Tanzania Moves Closer to LNG Developments

The Regulatory Framework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iZZX1"'L-"'6I6'%+("@-,%&@6'/$-"A+$"'L%&" &->'+$"%&"&'%@@"%("'L-"-6$@<"&'6,-&"+A"0-:-@+K8-('

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Today the experience of our employees is highly valued by our partners worldwide.

Developing Skills Within the Local Workforce.

www.odfjelldrilling.com

30 - Oil and Gas

International Business Tanzania 2014 - 31

TIBE T:eori Foto: Geir Mogen

Renewable Energy Tanzania has a large variety of energy resources, including natural gas, biomass, hydro, wind, solar, geothermal, and coal. However, only a minor part of the nation’s vast energy potential has been exploited to cover the critical demand for power generation to date. Rural energy consumption (i.e., fuel, wood, and charcoal) accounts for approximately 90 percent of total national energy consumption, while petroleum products (8 percent) and electricity (2 percent) makes up the rest. Annual amount of imported petroleum has been estimated to be close to 1.54 million cubic metres, and has caused energy import costs to be a heavy burden for the Tanzanian economy. In order to improve the supply of power, efforts have been made to increase the number of coal and gas power plants through new mining operations, and are projected to dominate Tanzania’s power generation in the near future.

Untapped Potential for Renewable Energy

Førsteklasses videreutdanning

Du finner flere kurs og studier på www.ntnu.no/videre

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32 - International Business Tanzania 2014

Renewable Energy - 33

(Photo: Tony Hall)

BI Norwegian Business School is an internationally recognized and accredited, private institution located in Oslo, the capital of Norway. BI has one of Europe’s largest and most productive academic environments in the area of business economics and administration, marketing, finance and general management. Bachelor of Business Administration This three-year, full-time programme is taught entirely in English and has an international focus and student body. The BBA programme will give you a taste of what globalisation and internationalisation are all about: a taste with a Scandinavian flavour, which will prepare you thoroughly for a career in international business or further postgraduate studies. BBA students choose one of the following options for their third year specialisation: Port of Bagamoyo

Renewable Energy as a Key Success Factor in the Future ]%'L"6@@"%'&"$-&+/$>-&1"B6(H6(%6"L6&"6"/(%^/-"+KK+$'/(%'<"'+"F-" &-@AQ&/AR>%-('"6(0"&/&'6%(6F@-"%("K+;-$",-(-$6'%+(T"]L-("'L-" (6'/$6@",6&"K+;-$",-(-$6'%+(">+88-(>-&1"'L-"K+;-$",-(-$6'%+(" >+&'&";%@@"8+&'"@%*-@<"0->$-6&-"6(0"6@@+;"B6(H6(%6"'+"F->+8-" 6"(-'"-IK+$'-$"+A"-(-$,<T"B+06<1"L+;-:-$1"-@->'$%>%'<"$-86%(&"6" &>6$>%'<"A+$"'L-":6&'"86N+$%'<"+A"B6(H6(%6("K+K/@6'%+(1";L-$-" @-&&"'L6("Ud"K-$>-('"+A"6@@">%'%H-(&"L6:-"6>>-&&"'+"-@->'$%>%'<1" ;L%@-"'L-"$-86%(%(,"K+K/@6'%+("$-@%-&"+(";++0"6(0"6,$%>/@'/$6@" $-&%0/-&" '+" >+:-$" 'L-%$" F6&%>" -(-$,<" (--0&T" BL-" F++8%(," %(0/&'$%6@"0-:-@+K8-('"+A"B6(H6(%6";%@@">$-6'-"6"&/F&'6('%6@"(--0" A+$"%(>$-6&-0"-(-$,<"&/KK@<1"86*%(,"'L-"&->'+$"L%,L@<"6''$6>'%:-" A+$"K$+&K->'%:-">+8K6(%-&T"S(0+/F'-0@<"Q"-(-$,<";%@@"F-"6"*-<" &/>>-&&"A6>'+$"'+"&->/$-"B6(H6(%6[&"A/$'L-$"0-:-@+K8-('"6(0" ->+(+8%>",$+;'LT

34 - Renewable Energy

• BBA – International Business • BBA – Shipping Management Master of Science BI offers five different two-year, full-time programmes that provide professional skills to meet the increasing needs of businesses. BI’s Master of Science programmes provide a stimulating and multi-cultural learning environment with an international outlook. A fundamental curiosity towards the subject areas unites faculty and students. Our Master of Science programmes are thorough, demanding and interactive, and require the active participation of students. • • • • •

MSc in Business MSc in Financial Economics MSc in Strategic Marketing Management MSc in Leadership and Organisational Psychology MSc in Professional Accountancy (taught in Norwegian)

Executive Programmes BI offers part-time Executive Master programmes taught entirely in English in collaboration with international institutions and partners. BI cooperates with several highly ranked international partners: Fudan University in Shanghai, Nanyang Business School in Singapore, IE Business School in Madrid, the University of California, Berkeley in San Francisco and IFP School in Paris. • Executive MBA • BI-Fudan MBA Programme • Executive Master of Management in Energy Doctoral Programme BI offers a full-time doctoral programme leading to the title PhD. The programme’s objective is to develop and educate high-potential individuals to serve the society in academic, business and other working life communities through research, publication, consulting and other professional services within their field of expert knowledge. Summer Programme The theme of the 2014 Summer Programme will be Intercultural Management: A Scandinavian Perspective. This four-week programme runs from 21 June – 18 July, 2014. BI’s Summer Programme provides extensive exposure to Norwegian industries, services and software through guest lectures and company visits. Various social and cultural activities are included in the programme as well.

www.bi.edu International Business Tanzania 2014 - 35

Mining Tanzania is endowed with a vast abundance of natural minerals, from metallic minerals (e.g. gold and iron ore), gemstones (e.g., diamonds and tanzanite), and energy source minerals (e.g., coal and uranium). In 2011, the mining sector constituted 45% of Tanzaniaâ&#x20AC;&#x2122;s merchandise exports and contributed to 3.3% of GDP. However, most of the resources have not been extracted as the government historically has been cautious with resource extraction. The main apprehension appears to have been losing value to foreign extractors, due to underdeveloped legislature and revenue collection practices.

CULTIVATE TALENTS â&#x20AC;&#x201C; CREATE CAREERS

Tanzania - A Gold Mine BL-"@6&'"0->60-1"'L-"8%(%(,"&->'+$"L6&"-IK-$%-(>-0"0+/F@-Q0%,%'" ,$+;'L"6((/6@@<T"BL-",$+;'L">6("F-"&+/$>-0"'+"'L-"B6(H6(%6(" ,+:-$(8-('[&"-(>+/$6,-8-('"+A"A+$-%,("0%$->'"%(:-&'8-('&"O5a9P" 6(0"6("+:-$6@@",+6@"+A"6>L%-:%(,"UZt"&->'+$">+('$%F/'%+("'+"DaJ" F<"iZidT"5+$"-I68K@-1"'L-",+@0"8%(%(,"%(0/&'$<"L6&"$->-%:-0" F-(-R>%6@"@-,6@"$-A+$8&"6(0"+'L-$"R&>6@"%(>-('%:-&"&%(>-"'L-" 8%0"VZ&T"7&"6"$-&/@'1"F%@@%+(&"+A"0+@@6$&"L6:-"F--("%(:-&'-0"6(0" @6$,-Q&>6@-"8%(-&"+K-(-0T"B+06<1"'L-"6((/6@",+@0"-IK+$'-0" A$+8"B6(H6(%6">+(&'%'/'-&"6F+/'"it"+A",@+F6@",+@0"K$+0/>'%+(" K-$"6((/8T

9("&/886$<1"B6(H6(%6"+AA-$&"L/,-"K+'-('%6@"'+"8%(%(,">+('$6>'+$&" K+&&-&&%(,"'->L(+@+,%>6@">+8K-'-(>-"6(0"R(6(>%6@"$-&+/$>-&"A+$" >6K%'6@"%(:-&'8-('&T"BL-"&->'+$"L6&"$->-%:-0"F%@@%+(&"+A"0+@@6$&" %("5a9"6(0"-IK-$%-(>-0"0+/F@-Q0%,%'",$+;'L"A+$"<-6$&1"&L+;%(," 86(<"&%,(&"+A"6("6''$6>'%:-"86$*-'T"BL-"86%("%(0/&'$<"&K->%R>" >L6@@-(,-";%@@"F-"'L6'"+A"F/%@0%(,"'$/&'";%'L"@+>6@"$-&%0-('&"6(0" 'L-",+:-$(8-('T

CEMS academic partner Master of Science

Failure to Meet Local Contribution Expectations B+"06'-1"'L-"8%(%(,"%(0/&'$<"L6&"(+'"8-'"@+>6@"6(0"(6'%+(6@":6@/-" >+('$%F/'%+("-IK->'6'%+(&"+A"8+&'"B6(H6(%6(&T"BL-"86%(">+(>-$(&" L6:-"F--("'L6'"@6$,-"A+$-%,("8/@'%(6'%+(6@"-('-$K$%&-&"A6%@"'+" 0-@%:-$":6@/-"'+"@+>6@">+88/(%'%-&"6(0"@6>*"R&>6@"'$6(&K6$-(><1" 'L-$-A+$-" $%&%(," 6@@-,6'%+(&" +A" 86&&%:-" '6I" -I-8K'%+(&" 6(0" >+$$/K'%+(T"BL-"=%(%(,"7>'"+A"iZUZ"6''-8K'-0"'+"600$-&&"'L-&-" >+(>-$(&"F<"-('6%@%(,"8%(%(,">+8K6(%-&"'+"@%&'";%'L"'L-"@+>6@" &'+>*"86$*-'"6(0";6$$6('-0"&'6*-&"%("8%(-&"'+"6"&'6'-"+;(-0" >+8K6(<T"S(@%*-"'L-"-8-$,%(,"K-'$+@-/8"&->'+$1"$-&+/$>-"$%,L'&" %("'L-"8%(%(,"%(0/&'$<"L6:-"F-@+(,-0"'+"K$%:6'-">+8K6(%-&1" 'L-$-F<"@%8%'%(,"'L-">+/('$<[&":6@/-">+@@->'%+("K+'-('%6@"+A"%'&" (6'/$6@"$-&+/$>-&T"3+;-:-$1"A-;"8%(%(,"8/@'%(6'%+(6@&"L6:-"%(" $-6@%'<">+8K@%-0";%'L"'L-"$-^/%$-8-('&"+A"'L-"=%(%(,"7>'T

International Business Marketing and Brand Management Energy, Natural Resources and the Environment Executive MBA PhD program

NORWEGIAN SCHOOL OF ECONOMICS

36 - Mining

NHH.NO

International Business Tanzania 2014 - 37

Agriculture With enormous water resources, ideal soils, and climate, Tanzania is well suited for agricultural production and livestock development. Today, Tanzania produces agricultural and horticultural products, in addition to a substantial livestock. Despite employing 76.5 per cent of the Tanzanian workforce, the agricultural sector only accounts for 27.1 per cent of GDP. This may partly be sourced to the fact that out of a total of 29 million hectares, only 280,000 hectares are under irrigation farming. This greatly challenges productivity, and is an area of great opportunity for agricultural investments.

Investment Incentives

Restrictive Land Rights

BL-"6,$%>/@'/$6@"&->'+$"L6&",$-6'"K+'-('%6@"A+$"->+(+8%>",$+;'L" 6&";-@@"6&">+('$%F/'%(,"'+"K+:-$'<"$-0/>'%+(T"b+(&-^/-('@<1"'L-" B6(H6(%6(",+:-$(8-('"L6&"%('$+0/>-0"&-:-$6@"%(>-('%:-&"'+" &'$-(,'L-("'L-"&->'+$1"&/>L"6&")+/'L-$("7,$%>/@'/$6@"D$+;'L" b+$$%0+$"B6(H6(%6"O)7Db4BP"6(0"#%@%8+"#;6(H6"Oo7,$%>/@'/$-" 5%$&'pPT"9("600%'%+(1"'6I"%(>-('%:-&"&/>L"6&"Z"K-$">-('"%8K+$'" 0/'<1"r7B"-I-8K'%+("+(">6K%'6@",++0&1"6(0"+'L-$"%(:-&'8-('" 6@@+;6(>-&" L6:-" F--(" %('$+0/>-0T" BL-" 26'%+(6@" 9$$%,6'%+(" a-:-@+K8-('"J@6("6(0"6("7,$%>/@'/$-"J+@%><"L6:-"6@&+"F--(" -&'6F@%&L-0"'+"6&&%&'"'L-"0-:-@+K8-('"+A"B6(H6(%6[&"%$$%,6'%+(" &<&'-8T"a-&K%'-"'L-&-"-AA+$'&1"%(:-&'%,6'-0">+8K6(%-&"&'$+(,@<" %(0%>6'-0"'L6'"'L-",+:-$(8-('[&"@%K"&-$:%>-"F-%(,"K6%0"'+"'L-"86(<" >L6@@-(,-&"6(0"+KK+$'/(%'%-&"%("'L-"&->'+$"%&"6",$-6'"F6$$%-$"A+$" 0-:-@+K8-('T"

BL-"B6(H6(%6("9(:-&'8-('"b-('$-"OB9bP"L6&"&+/,L'"'+"%0-('%A<" >L6@@-(,-&"A+$-%,("%(:-&'+$&"A6>-";L-("-('-$%(,"B6(H6(%6T"BL-&-" &'/0%-&"&L+;"'L6'"A+$-%,("%(:-&'+$&"R(0"%'"%("K6$'%>/@6$"0%AR>/@'" '+"6>^/%$-"@6(0"A+$"%(:-&'8-('"K$+N->'&"%("B6(H6(%6T"J$-:%+/&@<1" 'L-"-('%$-"@6(0"+A"B6(H6(%6";6&"0->@6$-0"6&"oK/F@%>1p";L-$-"'L-" +;(-$&L%K"F-@+(,-0"'+"'L-"J$-&%0-('";L+">+/@0"K$+:%0-">+(&-('" A+$"'L-"/&-"+A"@6(0&"'+"+'L-$&T"B+06<1"'L-$-"%&"6"$-:-$&6@"+A"'L%&" K+@%><"6(0"6",$60/6@"'$6(&%'%+("'+;6$0&"6"8+$-"%(:-&'+$"A$%-(0@<" K$+K-$'<Q"$%,L'"@-,%&@6'%+("&<&'-8T"2+(Q>%'%H-("%(:-&'+$&"86<" +>>/K<"@6(0"A+$"'L-%$"%(:-&'8-('&"'L$+/,L",+:-$(8-('",$6('&T" a-&K%'-"K$+,$-&&1"@6(0"+;(-$&L%K"$-86%(&"$-&'$%>'%:-"%("B6(H6(%61" 6(0"A+$"-I68K@-"'L-"K$+>-&&"+A"6KK@<%(,"A+$"+>>/K6(><Q@-6&-"%&" F+'L"@-(,'L<"6(0"-I'$-8-@<">+8K@-IT"

Low Labour & Land Productivity

Potential For Norwegian Firms

)86@@Q&>6@-"A6$8-$&"86*-"/K"'L-"86N+$%'<"+A"'L-"6,$%>/@'/$6@" &->'+$"%("B6(H6(%61";L-$-"'L-"K$+0/>'%:-"@6(0"K-$"A6$8-$"6:-$6,-" F-';--("ZTV"L->'6$-&"6(0"YTZ"L->'6$-&T"S(A+$'/(6'-@<1"8+&'" &86@@Q&>6@-"A6$8-$&"%("B6(H6(%6"@6>*"'L-"*(+;@-0,-"6F+/'"6(0" 6KK@%>6'%+("+A"'->L(+@+,<"6(0"A-$'%@%H-$&1";L%>L"A/$'L-$"0->$-6&-&" 'L-" @-:-@" +A" @6(0" K$+0/>'%:%'<T" a/-" '+" /(K$-0%>'6F@-" ;-6'L-$" >+(0%'%+(&1"B6(H6(%6"%&"+>>6&%+(6@@<"&'$/>*"F<"0$+/,L'QK-$%+0&" 'L6'"0-&'$+<"-('%$-">$+K&T"70-^/6'-"%$$%,6'%+("8-'L+0&"6$-">$/>%6@" '+"&'6F%@%H-"'L-"6,$%>/@'/$6@"K$+0/>'%+("%("'L-">+/('$<T"b/$$-('@<1"@+;" @6F+/$"K$+0/>'%:%'<"6(0"&L+$'>+8%(,&"%("6:6%@6F%@%'<"+A"'->L(+@+,<" 6(0"R(6(>%6@"&/KK+$'"@%8%'&"B6(H6(%6[&"6F%@%'<"+A"$-6>L%(,"%'&",+6@" +A"UZ"K-$">-('"6((/6@",$+;'L"%("6,$%>/@'/$-T"

B6(H6(%6" +AA-$&" 6(" %0-6@" >@%86'-" A+$" 6,$%>/@'/$6@" %(:-&'8-('" A+$"'L+&-";%'L"6>>-&&"'+"@6$,-Q&>6@-"R(6(>%(,"6(0">+8K-'-('" A6$8-$&T"9(:-&'+$&"%("'L%&"&->'+$"A6>-">L6@@-(,-&"&/>L"6&"@+;" K$+0/>'%:%'<1"@6>*"+A"8+0-$("'->L(+@+,<"6KK@%>6'%+(1"6,$%>/@'/$6@" R(6(>%(,1"$-&'$%>'%:-"@6(0Q$%,L'&1"6(0"%(60-^/6'-"%(A$6&'$/>'/$-T" a-&K%'-"&%,(%R>6('"F6$$%-$&1"'L-"K+'-('%6@"%("6,$%>/@'/$-"%&"@6$,-" A+$"K$+&K->'%:-"R$8&"'L6'"%(:-&'"%("'->L(+@+,<"6(0"A+>/&"+(" K$+0/>'%:%'<T"

Local farming

38 - Argiculture

Argiculture - 39

Corruption A major constraint on business development The publication of the Warioba report in 1996, which disclosed the presence of both petty corruption as means of supplementing individuals income and grand *)''5=!.)2$.2:)/:.29$".9"C/#:#/$)87*.&/(J$&45(#$)8$=)0#'$!)$&**5+5/&!#$=)0#'$ and wealth, spurred the Tanzanian government to make strong commitments .2$!"#$79"!$&9&.2(!$*)''5=!.)2,$K2$!"#$4&!!/#6$0.1#(='#&1$4)1.#($)8$'#95/&!.)2(6$ oversight institutions, and laws have been established.

Evidence of Grand Corruption

Corruption – a threat to the development of Norwegian =6(<" B6(H6(%6(&" ^/-&'%+(" J$-&%0-('" #%*;-'-" 6(0" +'L-$" businesses in Tanzania ,+:-$(8-('6@"+AR>%6@&"6>>/8/@6'%+("+A";-6@'LT"b/$$-('"-I68K@-&" &/,,-&'%(," ,$6(0" >+$$/K'%+(" 6$-" >+(&'$/>'%+(" +A" 86(&%+(&" 'L$+/,L+/'"'L-">+/('$<"F<",+:-$(8-('"+AR>%6@&1"6&";-@@"6&"'L-" F/%@0%(,"+A"6"$+60"A$+8"a6$"-&")6@668"'+"J$-&%0-('"#%*;-'-[&" &86@@"L+8-">%'<"M6,68+<+T""9("6">+/('$<";L-$-"+(@<"WTi"K-$" >-('"+A"$+60&"6$-"K6:-01"'L-"&/00-(";-6@'L"6(0"K$%+$%'<"+A"'L-" J$-&%0-('[&"L+8-'+;("860-"/K"F<"+(@<"XZ1ZZZ"%(L6F%'6('&"L6&" &K/$$-0"6@@-,6'%+(&"+A">+$$/K'%+("6(0"6F/&-"+A"K+;-$T""

”

Corruption is a major cause of poverty as well as a barrier to overcoming it... The two scourges feed off each other, locking their populations in a cycle of misery - Peter Eigen Chair Of Transparency International

”

B+"'L-"F-&'"+A"+/$"*(+;@-0,-1"%'"6KK-6$&"'L6'">+$$/K'%+(">+('%(/-&" '+"F-"6"86N+$"F6$$%-$"A+$"'L-"0-:-@+K8-('"+A"B6(H6(%6"6(0"A+$" B6(H6(%6("F/&%(-&&-&T"b+$$/K'%+("86'-$%6@%H-&"6'"6@@"@-:-@&`" A$+8"L+/&->@-6(-$&"6(0"'L-"@+>6@"K+@%>-1"'+",+:-$(8-('"+AR>%6@&" 6(0"8%(%&'-$&T"5/$'L-$8+$-1"+/$"%(:-&'%,6'%+("L6&"$-:-6@-0"6(" %(>$-6&%(,"K$+F@-8"+A"(+(Q8+(-'6$<"*%>*F6>*"&>L-8-&"O%T-T1"6" (-,+'%6'-0"F$%F-$<"'L6'"6"F$%F-"'6*-$"'6*-&"6&"^/%0"K$+"^/+"A+$" 6"&-$:%>-1"%(";L%>L"6"A6:+/$"%&"$->%K$+>6'-0PT"5%(6@@<1"6@'L+/,L" 2+$;-,%6(">+8K6(%-&"6$-"@-,6@@<"F+/(0"'+"$-A$6%("A$+8"F$%F-$<" 6(0">+$$/K'%+(1"86(<"L6:-"$6%&-0"-'L%>6@">+(>-$(&"+A"'L-">/$$-('" K$6>'%>-"+A"0%&>@6%8%(,"6(<"$-&K+(&%F%@%'<"+A"&/KK@%-$"6>'%:%'%-&1" 6(0"'L-"-8K@+<8-('"+A"oRI-$&p"O%T-T1"L%,L@<">+((->'-0"-I'-$(6@" %(0%:%0/6@&"'L6'"&+@:-&"R$8"K$+F@-8&";%'L"(+"^/-&'%+(&"6&*-0PT

SME Most Vulnerable to Corruption BL-"]+$@0"M6(*1"6&";-@@"6&"%(:-&'%,6'-0">+8K6(%-&1"&/,,-&'" 'L6'"&86@@Q"'+"8%0&%H-0">+8K6(%-&"6$-"'L-"8+&'":/@(-$6F@-"'+" >+$$/K'%+(T"]L-$-6&"@6$,-",@+F6@">+8K6(%-&"L6:-"'L-"R(6(>%6@" &'$-(,'L"'+"8%'%,6'-"0-@6<&"%("K$+>-&&%(,"0+>/8-('6'%+(&1"@+(," -IK-$%-(>-"0-6@%(,";%'L">+$$/K'%+(1"6(0"(-,+'%6'%(,"K+;-$"6,6%(&'" Transparency International rates Tanzania higher than neighbouring /(N/&'">@6%8&1"&86@@-$"R$8&"@6>*"&/>L"@-:-$6,-T")86@@"R$8&"+A" countries UQiZ"-8K@+<--&"86<"6@&+"R(0"%'"-6&%-$"'+"6:+%0"/(N/&'">@6%8&1" 6&"'L-%$"&%H-"6(0"@%8%'-0"$-:-(/-"6''$6>'&"@-&&"6''-('%+("6(0" %('-$-&'T"9'"6KK-6$&"'L6'"F+'L"&86@@"6(0"@6$,-">+8K6(%-&"6$-" @-&&":/@(-$6F@-"'+">+$$/K'%+(1";L-$-6&"8%0Q&%H-0">+8K6(%-&"6$-" ;+$&-"+AA"0/-"'+"'L-%$"6''$6>'%:-(-&&"%("'-$8&"+A"$-:-(/-1"6(0" @6>*"+A"K+;-$"'+";%'L&'6(0"/(N/&'">@6%8&T B$6(&K6$-(><"9('-$(6'%+(6@"OiZUYP"K@6>-0"B6(H6(%6"%("UUU(0" K@6>-"+/'"+A"Ujl">+/('$%-&1";L%>L"$6(*-0"'L-">+/('$<"L%,L-$" 'L6("&-:-$6@"+'L-$">+8K6$6F@-">+/('$%-&"%("'L-")/FQ)6L6$6(" 7A$%>6"O=+H68F%^/-`"UUV1"#-(<6`"UYlPT"3+;-:-$1"'L-"'L$-6'" Source: Transparency International 2013 +A">+$$/K'%+("&L+/@0"(+'"F-"/(0-$-&'%86'-0T"4/$"%(:-&'%,6'%+(" Note: The “Score” indicates the perceived level of public sector corruption, where 0 $-:-6@-0"0%&>$-K6(>%-&">+(>-$(%(,"'L-"K$-:6@-(>-"+A">+$$/K'%+(`" means that the country is perceived as highly corrupt, and 100 means it is perceived as )-:-$6@",@+F6@"R$8&"$-K+$'-0"(+"&%,(&"+A">+$$/K'%+(1";L-$-6&" very clean. +'L-$&"0-&>$%F-0"'L-"&%'/6'%+("6&"&-:-$"6(0"%(-:%'6F@-"'+"6:+%0T

40 - Corruption

Corruption - 41

Corruption - Red Flag Overview Helping Companies Identify and Fight Corruption Among the many formidable challenges confronting companies doing business in foreign countries such as Tanzania, is determining whether operations and transactions are untainted by corruption. This imperative has been sharply underscored by the recent surge in stricter laws, regulations, requirements and prosecutions by justice departments internationally. In light of these developments, any company engaged in international commerce should carefully examine whether it has effective policies and procedures in place to manage fraud and corruption risks. Understanding the signs and the related risk of being exposed to potential corrupt situations is an important element of helping to mitigate the risk of corruption.The following areas include some of !"#$'#1$3&9($&21$)!"#'$*)2(.1#'&!.)2($8)'$*)+=&2.#($1).29$45(.2#(($.2$8)'#.92$*)52!'.#(,$

Albert Wolders, Director and Anticorrution Leader, Deloitte Bergen

Environment !"BL-">+/('$<";L-$-"'L-"'$6(&6>'%+("%&"'6*%(,"K@6>-"L6&"6"L%&'+$<" ""+A"K/F@%>">+$$/K'%+("+$"6"L%,L"&>+$-"+("'L-"B$6(&K6$-(>< ""9('-$(6'%+(6@"b+$$/K'%+("J-$>-K'%+("%(0-I !"E/8+$&"6$-"L-6$0"6F+/'"/(-'L%>6@"F-L6:%+$"F<"6,-('&q"+$ ""-8K@+<--& !"GI>-&&%:-"K$-&&/$-"A+$"&6@-&";%'L+/'"6KK$+K$%6'-"-'L%>&" ""8-&&6,%(, !")%,(%R>6('"/&-"+A"'L%$0QK6$'<"6,-('& !"56%@/$-"+A">+8K6(<"'+"$-&K+(0"60-^/6'-@<"'+"%&&/-&"$6%&-0"F<" "";L%&'@-F@+;-$& !".6>*"+A"'$6(&K6$-(><"%("'L%$0QK6$'<">+('$6>'& !"bL6$%'6F@-"+$"K+'-('%6@"0+(6'%+(";+$*"%("6'"$%&*"A+$-%,("N/$%&0%>'%+(&

Unusual Business Relationships !")6@-&"'+",+:-$(8-('"6,-(>%-&";%'L"L%,L"/(%'"K$%>-1"@+;"A$-^/-(>< !"E-^/-&'"A+$">+88%&&%+("K6<8-('&"'+"+'L-$">+/('$%-& !"GI>-&&%:-"K6<8-('&"A+$"&-$:%>-&"$-(0-$-0 !"r6,/-"0-@%:-$6F@-&"%(">+('$6>'& !".+&%(,"F%00-$&"L%$-0"6&"&/F>+('$6>'+$& !"56:+/$6F@-"'$-6'8-('"+A"+(-"&/KK@%-$"+:-$"6(+'L-$_@6>*"+A"F%0" ""K$+>-&& !".6>*"+A"$-@-:6('"-IK-$%-(>-"+A"&/>>-&&A/@">6(0%06'-

42 - Corruption - Red Flag Overview

Agents

Record Keeping and Transactions

!"GI>-&&%:-"$-@%6(>-"+("6,-('&"6&"6"8-6(&"+A"+F'6%(%(,";+$*T "")+8-"-I68K@-&"+A"'L%&"%(>@/0-` """Q"BL-"+(@<"^/6@%R>6'%+("'L-"6,-('"L6&"%&"%(\/-(>-"+:-$"A+$-%,(" """""K/F@%>"+AR>%6@& """Q"BL-"6,-('"86*-&"$-A-$-(>-"'+"K+@%'%>6@"+$">L6$%'6F@""""">+('$%F/'%+(&"6&"6";6<"+A"%(\/-(>%(,"+AR>%6@"6>'%+( """Q"BL-"6,-('"L6&"A68%@<"+$"F/&%(-&&"'%-&"'+"$-@-:6('"A+$-%,(" """"""K/F@%>"+AR>%6@& !"S((->-&&6$<"'L%$0"K6$'%-&"K-$A+$8%(,"&-$:%>-&T")+8""-I68K@-&"+A"'L%&"%(>@/0-` """Q"BL-"6,-('"K$+K+&-&"/(/&/6@"+$"+:-$@<",-(-$+/&"&/F>+('$6>'& """Q"7,-('&"&K->%R>6@@<"$->+88-(0-0"F<",+:-$(8-('"+AR>%6@& !"9(>+8K@-'-"+$"%(60-^/6'-"0%&>@+&/$-"F<"'L%$0"K6$'%-&"&/>L"6&` ""Q"BL-"6,-('"K$+:%0-&"/(/&/6@"+$"%(>+8K@-'"" ""0+>/8-('6'%+("+A"6"'$6(&6>'%+( !"E-A/&6@"'+">-$'%A<">+8K@%6(>-";%'L"6('%Q>+$$/K'%+("@6;&"6(0" ""$-,/@6'%+(&T !"G:6&%:-(-&&"+("+;(-$&L%K"^/-&'%+(&"&/>L"6&` """Q"BL-"6,-('"L6&"/(0%&>@+&-0"K$%(>%K6@&1"6&&+>%6'-&"+$"" """""&/F>+('$6>'+$&";%'L";L+8"A--&"+$">+88%&&%+(&"6$-"&K@%' !".6>*"+A"6,-('">+('$6>'"'-$8&"6(0"8+(%'+$%(, !"S(/&/6@"K6<8-('"'-$8&T")+8-"-I68K@-&"+A"'L%&"%(>@/0-` """Q"BL-"68+/('"+A"'L-"K6<8-('"$-^/-&'-0"%&"8+$-"'L6("+(-" """"""";+/@0"(+$86@@<"-IK->'"'+"K6<"A+$"'L-"&-$:%>-&"'+"F-"$-(0-$-0 """Q"BL-"6,-('";6('&"/KA$+('"K6<8-('& """Q"BL-"6,-('";6('&"K6<8-('"%(">6&L """Q"BL-"6,-('";6('&"6("/(/&/6@@<"L%,L">+88%&&%+( """Q"BL-"6,-('"$-^/-&'&"6("/(/&/6@"8-'L+0"+A"K6<8-('"&/>L"6&" """""K6<8-('"'L$+/,L"6"'L%$0"K6$'<"+$"K6<8-('"%("6"'L%$0">+/('$< """Q"BL-"6,-('"K$+:%0-&"-I>-&&%:-1"A6@&-"+$"K++$@<Q0-&>$%F-0 """""K6<8-('"$-^/-&'&

!"BL%("R@-"&<(0$+8-"A+$"6,-('& !"E-^/-&'&"A+$"K6<8-('&"'+"'L%$0"K6$'%-& !"J6<8-('&"%(">6&L !"J+@%'%>6@"+$">L6$%'6F@-">+('$%F/'%+(&"'%-0"'+"6,-('& !"J++$"0+>/8-('6'%+("A+$"-IK-(&-"$-%8F/$&-8-('& !"b+('$6>'"K6<8-('"+00%'%-&T")+8-"-I68K@-&"+A"'L%&"%(>@/0-` """Q"J6<8-('&"'+"(/8F-$-0"6>>+/('&"+$"'+"oL6:-(p"+$"+'L-$" """""+AA&L+$-"F6(*& """Q"b+88%&&%+(&"+$"A--&"%("6F(+$86@"68+/('&"(+'"\6,,-0 """Q"70:6(>-"A--&"K6%0 """Q")%,(%R>6('";$%'-Q+AA&"+(",+:-$(8-('">+('$6>'& """Q".6$,-"'-$8%(6'%+("A--&" """Q"5$-^/-('"/(0+>/8-('-0">L6(,-"+$0-$& """"Q"S&-"+A"A+$-%,("F6(*"0$6A'&_;%$-"'$6(&A-$&";%'L"@%''@-"0+>/8-('6'%+(

Training and Promotion !"r%&%'&"'+":6>6'%+("@+>6'%+(&"$-^/-&'-0"A+$"o'$6%(%(,p !".6>*"+A"-'L%>&"+$"6('%Q>+$$/K'%+("'$6%(%(,"'+"&6@-&"K-+K@-T

YT Policies and procedures"g"a-&%,("6(0"%8K@-8-('"60-^/6'-" """""K+@%>%-&"6(0"K$+>-0/$-&"6,6%(&'">+$$/K'%+("0-R(%(,"&%'/6'%+(&1" """&'6'%(,"0-&%$-0"6''%'/0-"$-@6'-0"'+"A6>%@%'6'%+("K6<8-('&1",%A'&1" """-('-$'6%(8-('1">L6$%'<"6(0"K+@%'%>6@">+('$%F/'%+(& XT"3rd party integrity due diligence"g=6*-"&/$-"<+/"L6:-"6&&-&&-0" """""-:-$<"'L%$0"K6$'<"<+/"0+"F/&%(-&&";%'L"F-A+$-"<+/"0+"F/&%(-&&" """";%'L"'L-8T dT"Contract provisions g"98K@-8-('"60-^/6'-"6('%Q>+$$/K'%+(" """">@6/&-&"%(">+('$6>'&"&->/$%(,">+8K@%6(>-";%'L"@6;&"6(0" """"$-,/@6'%+(&"6(0"-(6F@%(,"6/0%'"6(0_+$"'-$8%(6'%+("%(">6&-"+A" """">+$$/K'%+( lT"Training"g"b$-6'-"6;6$-(-&&"68+(,&'"<+/$"'-68"+A"K-+K@-" """"""F<"K$+:%0%(,"6('%Q>+$$/K'%+("'$6%(%(,"%(>@/0%(,"K$6>'%>6@">6&-&" """"6(0"0%@-886& jT"Responsibility"g"36:-"6"0-&%,(6'-0"K-$&+("$-&K+(&%F@-"A+$" """">+8K@%6(>-"6(0"6:6%@6F@-"A+$"^/-&'%+(&

Tools Against Corruption B+"&->/$-">+8K@%6(>-";%'L"6KK@%>6F@-"6('%Q>+$$/K'%+("@6;&"6(0" $-,/@6'%+(&1" K$+'->'" <+/$" >+8K6(<[&" $-K/'6'%+(" 6(0" >$-6'-" 6;6$-(-&&"68+(,&'"<+/$"'-68"+A"K-+K@-"<+/"&L+@0">+(&%0-$" 'L-"A+@@+;%(,"'++@&` UT"Tone at the Top g"=6(6,-8-('"&L+/@0"'6*-"'L-"@-60"%("'L-"R,L'" """""6,6%(&'">+$$/K'%+("6(0">$-6'-"6;6$-(-&&"68+(,&'"%'&"K-+K@-T iT"Risk Assessment"g"7&&-&&"'L-"$%&*"+A">+$$/K'%+("F-A+$-L6(0m" """;L6'"%&"'L-"@%*-@%L++0"+A">+$$/K'%+("%("'L6'"6$-6_>+/('$<"6(0" """;L6'"%&"'L-"%8K6>'"%A"%'"L6KK-(&T

WT"Whistle Blowing function g"%8K@-8-('"6KK$+K$%6'-";L%&'@-" """""F@+;%(,"K$+>-0/$-&"'+"F-"6F@-"'+"$-&K+(0"6KK$+K$%6'-@<"'+"$-6@ """""@%A-">6&-&"6(0"0-'->'1"%(:-&'%,6'-1"$-K+$'""6(0"K$-:-('">+$$/K'%+(T VT"Financial & accounting procedures g"%8K@-8-('"60-^/6'-" """>+('$+@"K$+>-0/$-&1"-&K->%6@@<";%'L%("'L-"K$+>/$-8-('"6(0" """K6<8-('"K$+>-&&-&T UZT"Audit"g"6/0%'"<+/$"6('%Q>+$$/K'%+("K$+,$68"'+"&->/$-" """"">+8K@%6(>-"6(0"60-^/6'-"%8K@-8-('6'%+(

Corruption - Red Flag Overview - 43

Photo: Ole Jørgen Bratland

Corporate Social Responsibility in Tanzania Firms’ relations with society and the environment in which they operate in are critical factors in ensuring operational excellence. As the historically substantial amount of foreign aid given !)$>&2?&2.&$.($(/)0/%$4#.29$'#15*#16$+&2%$>&2?&2.&2($'#/%$)2$!"#$.235E$)8$.2!#'2&!.)2&/$7'+($ to continue with support to the local environments.

CSR Uncovered S(0-$" 'L-" /8F$-@@6" +A" 'L-" S(%'-0" 26'%+(&" D@+F6@" b+8K6>'" ,/%0-@%(-&1"'L-"9('-$(6'%+(6@"4$,6(%H6'%+("A+$")'6(06$0%H6'%+(" O9)4P" 6%8&" '+" F$-6*" 0+;(" F6$$%-$&" '+" %('-$(6'%+(6@" '$60-T" 9'" 0-R(-&">+$K+$6'-"&+>%6@"$-&K+(&%F%@%'<"Ob)EP"6&"p6"F6@6(>-0" 6KK$+6>L"A+$"+$,6(%&6'%+(&"'+"600$-&&"->+(+8%>1"&+>%6@"6(0" -(:%$+(8-('6@" %&&/-&" %(" 6" ;6<" 'L6'" 6%8&" '+" F-(-R'" K-+K@-1" >+88/(%'%-&"6(0"&+>%-'<Tp"b)E"L6&"%("'L-"@6&'"0->60-&"F->+8-" %(>$-6&%(,@<"%8K+$'6('"0/-"'+"%&&/-&"$-@6'-0"'+"L/86("$%,L'&1" &6A-'<1"-(:%$+(8-('6@"6(0"&+>%6@"0-:-@+K8-('1"6(0"F/&%(-&&" K$6>'%>-&1"6(0"'L-"A+>/&"L6&"F--("K@6>-0"+(">$-6'%(,"&L6$-0" :6@/-T"5+>/&"+("b)E"L6&"6@&+"%(>$-6&-0"'$6(&K6$-(><"6(0" L%,L-$"0-86(0&"A$+8"F+'L"K6$'(-$"R$8&"6(0">/&'+8-$&"+A"L%,L-$" -'L%>6@"&'6(06$0&T

Doing CSR in Tanzania a/-"'+"'L-">L6@@-(,-&"+A"0+%(,"F/&%(-&&"%("B6(H6(%61"&/>L"6&" K++$"%(A$6&'$/>'/$-"6(0"@+;"@-:-@&"+A"-0/>6'%+(1"b)E"%&"+A"L%,L" %8K+$'6(>-";L-("0+%(,"F/&%(-&&"%("B6(H6(%6T"5+$"-I68K@-1"0/-" '+"@%8%'-0"6>>-&&"+A"&*%@@-0";+$*-$&1"86(<"R$8&"L6:-"6@$-60<" F-,/("'+"+AA-$"@+>6@&"-0/>6'%+(6@"&/KK+$'"6(0"'$6%(%(,T"BL%&"%&" 8/'/6@@<"F-(-R>%6@"6&"%'"F/%@0&"'L-"@+>6@">+88/(%'<"6&";-@@"6&" K$+:%0-&"6"&*%@@-0";+$*A+$>-T"9(:+@:-8-('"%("'L-"@+>6@">+88/(%'<" %&">$/>%6@"%("B6(H6(%6"%("+$0-$"'+",6%("&/KK+$'"6(0",++0;%@@T"BL-" 2+$;-,%6("bL/$>L"7%0"O2b7P"6$,/-&"'L6'"6("+K-("0%6@+,/-";%'L" &'$+(,"$-@%,%+/&"@-60-$&"L6:-"L60"6",$-6'-$"%8K6>'"+("'L-%$";+$*" %("@+>6@">+88/(%'%-&"'L6("'L$+/,L",+:-$(8-('6@"+AR>%6@&"6@+(-T" )-:-$6@"+$,6(%&6'%+(&"&/>L"6&"'L-"2b7"6(0"2+$,-&"r-@1"&'$-&&" 'L6'"%'"%&"%8K+$'6('"'+"86*-"&/$-"'L6'"b)E"%&"0+(-"%("6";6<"'L6'"

44 - CSR

'$/@<"F-(-R'&"'L-"@+>6@">+88/(%'<T"5+$"%(&'6(>-1"F/%@0%(,"6"&>L++@" ;%@@"(+'"L-@K"%A"'L-$-"6$-"(+"'-6>L-$&1"6(0">+(&'$/>'%(,"6"$+60"%&" +A"@%''@-"/&-"%A"(+F+0<">6("86%('6%("%'T"9'"%&"'L-$-A+$-"%8K-$6'%:-" 'L6'"%('-$(6'%+(6@">+8K6(%-&"L6:-"b)E"K$+,$688-&"'L6'"-(&/$-" 6"&/&'6%(6F@-"A/'/$-T J$+&K->'%:-" 2+$;-,%6(" >+8K6(%-&" 6$-" 'L-$-A+$-" &'$+(,@<" -(>+/$6,-0"'+"A+>/&"'L-%$"b)E"%(%'%6'%:-&"6$+/(0"@+>6@">+('-('" Q"L-$-/(0-$"+AA-$%(,"-0/>6'%+(6@"&/KK+$'1"-8K@+<8-('"+A"@+>6@" >+('$6>'+$&1"6(0"%(:+@:%(,"'L-"@+>6@">+88/(%'%-&T"BL-"R,L'"6,6%(&'" >+$$/K'%+("6@&+"A6@@&"(6'/$6@@<"/(0-$"6"R$8&"b)E"%(%'%6'%:-1"6(0" L6&"F--("-I'-(&%:-@<"0%&>/&&-0"%("K$-:%+/&">L6K'-$&T

Example: Practical Steps from Statoil Tanzania AS – Integrating Social Responsibility and Integrity in Business Planning - Take into account both the short- and long term strategies - Perform a country- and reputation risk analysis - Identify CSR risks and mitigation actions – generate opportunities (e.g., education) ! "#$$%!&'!()*+,!+'-.+!-./.-*&012&3$45&6$4!+'-.+!-'4&$4& ! "73'8'&$!6)8.4!3*56&!.4,!&3.42/.3$4-0 ! "98/3':$!+'-.+!-'4,*&*'42 - Create a strategic approach to social investments through 2/'42'326*/2!.4,!,'4.&*'42!&'!-3$.&$!8)&).++0!($4$;-*.+! projects - Monitor and re-assess initiated social investment projects

WE SUPPORT THE HEROES OF TOMORROW The success of Statoil is down to individuals with the ability and desire to think outside the box. Individuals who strive to make the impossible possible. Individuals with the skills and determination to achieve remarkable results. It is individuals like these who hold the key to a successful future – not just for our company but for society as a whole. We like to call them heroes of tomorrow. Heroes such as high achievers in the fields of sports and culture inspire us and bring us together. However, because our world is facing major challenges, we also need highly skilled professionals to help us progress in the future. That is why Statoil supports the heroes of tomorrow in sport, culture – and education. For everyone’s benefit and joy. statoil.com

International Business Tanzania 2014 - 45

Security Risks Despite being one of the most peaceful and politically stable countries in Africa, Tanzania has recently been troubled by protests and demonstrations. As Tanzania enters what likely will be crucial transitional years with high-paced economic development and growing political and religious tensions, more companies are taking precautionary steps to face the unsure future.

DIN PARTNER I ETABLERING, REKRUTTERING OG UTVIKLING 15 ÅR I NORGE, 5 ÅR I TANZANIA

Oysterbay, Dar es Salaam, Tanzania (t) +255 777 689 777 | (w) www.human-capital.co.tz

2&034*("*5%$6,3 BL-"'$6AR>"&<&'-8"%("B6(H6(%6"%&":-$<">$-6'%:-1"6&"'$6AR>"@%,L'&" 6$-"(+'"A+@@+;-01"'L-"0$%:%(,"0%$->'%+("&--8&"+K'%+(6@1"6(0"'L-" (/8F-$"+A"@6(-&">6("0+/F@-"%A"(->-&&6$<T"9("A6>'1"%'"%&"6&&+>%6'-0" ;%'L"&+"8/>L"$%&*"'L6'"86(<">+8K6(%-&"$-A/&-"-8K@+<--&"'+" 0$%:-"'L-8&-@:-&1"6(0"'L-$-A+$-"+AA-$&"K$+A-&&%+(6@"0$%:-$&T"9(" &+8-"6$-6&"+A"a6$"-&")6@6681"%'"%&"60:%&-0"'+"(-:-$"'+"&'+K"'L-" >6$"0/-"'+"'L-"L%,L"$%&*"+A"'L-A'&T"5/$'L-$8+$-1";6@*%(,"A$+8"+(-" K@6>-"'+"6(+'L-$"&L+/@0"F-"6:+%0-0"0/-"'+"'L-"L%,L"K$-:6@-(>-" +A"'L-A'"6(0":%+@-(>-"6,6%(&'"K-0-&'$%6(&T

>+8K6(%-&"6(0"'L-",+:-$(8-('"@6>*"'$6(&K6$-(><"6(0"'-(0" '+" -I>@/0-" 'L-" %('-$-&'" +A" @+>6@" $-&%0-('&T" J$+&K->'%:-" R$8&" 6$-"'L-$-A+$-"60:%&-0"'+">@+&-@<"8+(%'+$"'L-"0-:-@+K8-('"+A" @+>6@"$-&%&'6(>-"'+"%('-$(6'%+(6@"F/&%(-&&"0-:-@+K8-('"6(0"'L-" %(>$-6&%(,">-('$6@%H6'%+("+A";-6@'L"6(0"K+;-$"'+"a6$"-&")6@668T"

Maritime Industry and Piracy

)+86@%"K%$6'-&"6$-"+K-$6'%(,"%("6$-6&";-@@"F-<+(0"'L-">+/('$<[&" '-$$%'+$%6@";6'-$&1">6/&%(,"K%$6><"'+"K+&-"6"$%&*"A+$"%(:-&'8-('&" %("B6(H6(%6T"BL-"B6(H6(%6(",+:-$(8-('"L6&"&'$-(,'L-(-0"%'&" Little Tension between Religious Groups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recautionary Measures Advised 'L-",+:-$(8-('1"$-@%,%+/&"@-60-$&1"6(0"2D4&T" 7@'L+/,L"B6(H6(%6"$-86%(&"6"$-@6'%:-@<"K-6>-A/@"(6'%+(1"2+$;-,%6(" >+8K6(%-&"6$-"60:%&-0"'+"'6*-"K$->6/'%+(6$<"&'-K&"'+"-(&/$-" 'L-"&6A-'<"+A"F+'L"A6>%@%'%-&"6(0"-8K@+<--&T"BL-"-8K@+<8-('"+A" Investments and the need for Mitigating Tensions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iZUYT".+>6@":%@@6,-$&">@6%8"'L6'"'L-" ;L%>L"%@@/&'$6'-&"'L6'"B6(H6(%6"$-86%(&"6"$-@6'%:-@<"&'6F%@-"6(0" -('%$-"K$+>-&&"+A"'L-&-"K$+N->'&"@-60"F<"%('-$(6'%+(6@" &6A-"(6'%+("%("'L-"G6&'"7A$%>6("$-,%+(T

Veiledningskontoret for næringsutvikling i utviklingsland

Veiledningskontoret gir råd og veiledning til norske bedrifter som ønsker å etablere virksomhet i utviklingsland, særlig knyttet til støtteordninger og muligheter for finansiering. Vi kan vurdere forretningsplan, gjennomføringsevne og gi en nøytral vurdering av hva som skal til for å kvalifisere for ulike ordninger. Hjemmesiden er et nyttig oppslagsverk, spesielt for næringslivsaktører. Mer informasjon/kontakt oss på: www.veiledninskontoret.no post@veiledningskontoret.no Tlf: 23 98 00 33

Veiledningskontoret er et samarbeidsprosjekt mellom

46 - Security Risks

International Business Tanzania 2014 - 47

Notes 1. The corporate tax rates have remained unchanged since 1 January 2005. 2. Where the underlying ownership of a company changes by more than 50%, as compared with the ownership at any time during the previous three years, the company is treated as having realised its assets and liabilities held immediately before such change in control at their market value. 3. Shareholders disposing shares in Tanzanian companies are required to pay a single instalment tax (10% for residents and 20% for non-residents) before the title in the shares can be transferred. 4. A 4% royalty is charged on gold and other metallic mineral, 5% on diamonds, uranium and gemstones, 1% on gemstones (cut and polished), 3% for other minerals (e.g. coal) and 12.5% for petroleum and gas produced onshore and in shallow water. The royalty rate for deep sea hydrocarbon production is 7.5%. A 15% levy is charged on exports of raw hides and skins. 4. The Finance Act has introduced a change to the Alternative Minimum Tax (AMT) provision. Companies making 5 consecutive years of losses will be taxed at 0.3% on their !!!!&)34':$3!'4!&6$!;@&6!0$.3H

Tanzanian Taxation The Minister for Finance and Economic Affairs, Honourable Dr. William Augustao Mgimwa (MP), presented the Budget Speech and Economic Status, comprising the #(!.+&!#($)8$!"#$L):#'2+#2!$'#:#25#$&21$#E=#21.!5'#$8)'$72&2*.&/$%#&'$FGMNOMP6$ to the National Assembly on 13 June 2013, in Dodoma. Agriculture remains a top priority for the Government and employs over 85% of the population. The Budget was supported by a Finance Bill for 2013. This Bill has since been enacted into the Finance Act, 2013.

Income Tax E-&%0-('&"6$-"'6I-0"+("'L-%$";+$@0;%0-"%(>+8-T Income Tax Rates for Resident Individuals: From 1 July 2013 Monthly Taxable Income as exceeds Tshs. 0

But does not exceed Tshs. 170 000

Tax Payable Tshs. 0%

170 000

360 000

0 + 13%

360 000

540 000

24 700 + 20%

540 000 720 000

720 000

60 700 + 25% 105 700 + 30%

Notes 1. An individual is considered resident in Tanzania for tax purposes if the individual: !!"!<.2!.!/$38.4$4&!6'8$!*4!=.4>.4*.!.4,!?.2!/3$2$4&!*4! Tanzania at any time in the tax year; or !!"!92!/3$2$4&!*4!=.4>.4*.!@'3!ABC!,.02!'3!8'3$!*4!&6$!&.D!0$.3E! or !!"!F.2!/3$2$4&!*4!=.4>.4*.!*4!&6.&!&.D!0$.3!.4,!*4!$.-6!'@!&6$! two preceding tax years, for periods averaging more than 122 days per year; or !!"!92!.4!$8/+'0$$!'3!.4!'@;-*.+!'@!&6$!G':$348$4&!'@!=.4>.4*.! posted abroad during the tax year.

48 - Tanzania Taxation

IH!94,*:*,).+2!.3$!.+2'!&.D$,!'4!&6$!:.+)$!'@!.40!($4$;&!'3! advantage arising from employment. 3. The tax-free amount for purposes of Pay-As-You-Earn (PAYE) continues to be to Tshs. 170 000 following the increase in the minimum threshold in 2012. 4. The 2013 Finance Act provided for a 1% reduction on the lower band PAYE rate payable by resident individuals. The minimum tax rate chargeable for the year of income has been reduced from 14% to 13% 5. In addition, the Finance Act provided for a reduction of the rate of Skills and Development Levy (“SDL”) payable by the employer from 6% to 5%. 6. It also provided exemption from SDL to government de partments or public institutions wholly funded by the government

Non-Residents 2+(Q$-&%0-('"%(0%:%0/6@&"6$-"&/FN->'"'+"6"RI-0"'6I"$6'-"+A"iZt"+(" '+'6@"%(>+8-"A$+8"6"&+/$>-"%("B6(H6(%6T"3+;-:-$1"(+(Q$-&%0-('&" 6$-"'6I-0"+("'L-%$"%(>+8-"A$+8"-8K@+<8-('"%(>+8-";%'L"6"&+/$>-" %("B6(H6(%6"6'"Udt1";L%>L"%&"6"R(6@"'6IT"9("600%'%+(1">-$'6%(" K6<8-('&"860-"'+"(+(Q$-&%0-('&"6$-"&/FN->'"'+";%'LL+@0%(," '6I-&"O]3B&PT"O)--"]%'LL+@0%(,"B6I-&"F-@+;PT"

Yearly Turnover as exceeds

But does not exceed

Tax Payable (where complete records are kept)

Tax Payable (where records are incomplete)

Income Tax Rates for Companies: Years of Assessment Commencing On or After 1 January 2005 Rate

4K-$6'+$&"+A">6&%(+&1"K$%:6'-"@+''-$%-&"6(0"&@+'"86>L%(-&"6$-" &/FN->'"'+",68%(,"'6I1";L%>L"%&"6"\6'"68+/('"K-$"'6F@-"+$"&@+'" 86>L%(-"%("'L-">6&-"+A">6&%(+&"6(0"UZt"+A",$+&&"&6@-&"%("'L-" >6&-"+A"K$%:6'-"@+''-$%-&T 5+@@+;%(," 'L-" iZUY_UX" M/0,-'1" 'L-" ,68%(," '6I" A+$" >6&%(+" +K-$6'%+(&"%&"(+;"K6%0"6'"'L-"$6'-"+A"RA'--("K-$">-('"OUdtP"+A" 'L-";--*@<",$+&&",68%(,"$-:-(/-T"5+$8-$@<"'L-"'6I";6&">L6$,-0" +("'L-"8+('L@<",$+&&",68%(,"$-:-(/-T"

Withholding Tax Rates Note

Residents

Non-Residents

Paid by listed company

Paid by unlisted company

10%

To company controlling 25% of shares or more

10%

Dividends

Tshs.

4 000 000

170 000

Nil

4 000 000

7 500 000

0 + 2%

100 000

7 500 000

11 500 000

70 000 + 2.5%

212 000

11 500 000

16 000 000

170 000 + 3.0%

364 000

Interest

16 000 000

20 000 000

325 000 + 3.5%

575 000

Pensions

Nil

Insurance premiums

Lump sums commuted

10%

15%

Notes

Annuities

15%

This table is applicable to self-employed individuals whose businesses have an annual turnover of less than Tsh20 million and applies to individual’s income that consists of exclusively of income from business with a source in Tanzania. A standard assessment is made (i.e. the graduated tax rates for individuals are not applied) and no tax returns need to be submitted.

Royalties

15%

Mining Companies

Gaming Tax

Withholding Taxes (WHTs) b-$'6%("K6<8-('&"6$-"&/FN->'"'+"]3BT"BL-&-"$6'-&"6$-"&-'"+/'" F-@+;T

Income Tax Rates for Resident Individuals: From 1 July 2013

Written by Amani Michael and Barhalome Festo, Deloitte Tanzania.

J$-:%+/&@<"$%(,"A-(>%(,";6&"+(@<"6KK@%>6F@-"'+"8%(%(,">+8K6(%-&T" BL%&"L6&"6"K+'-('%6@@<"&%,(%R>6('"%8K6>'"+(">+8K6(%-&"%("'L-" 4%@"6(0"D6&"&->'+$T"BL-"%8K@%>6'%+("+A"$%(,"A-(>%(,"K$+:%&%+(" %&"'L6'"0-0/>'%+(&"%("+%@"6(0",6&"+K-$6'%+(&";%@@"F-"@%8%'-0"'+"6" &K->%R>">+('$6>'"6$-6"+$"F@+>*1"b+8K6(%-&"%(:+@:-0"%("K-'$+@-/8" +K-$6'%+(&";%@@"(+"@+(,-$"F-"6F@-"'+"/&-"'L-"@+&&-&"6$%&%(,"A$+8" +(-"J$+0/>'%+(")L6$%(,"7,$--8-('"OoJ)7pP"'+"&L-@'-$"K$+R'&"+A" 6(+'L-$"6$-6"A$+8"%(>+8-"'6IT" BL-"5%(6(>-"7>'"6@&+"%('$+0/>-0">L6(,-&"'+"'L-"'L%$0"&>L-0/@-" +A"'L-"9B7"/(0-$";L%>L"-^/%K8-('"/&-0"A+$"K$+&K->'%(,"6(0" -IK@+$6'%+("+A"K-'$+@-/8";+/@0"(+;"^/6@%A<"A+$"UZZt"0-0/>'%+(""

BL-" 9(>+8-" B6I"7>'" O9B7P" L6&" F--(" 68-(0-0" '+" 6@@+;" 'L-" 8%(%(,">+8K6(%-&"'+">@6%8"A/@@"0-0/>'%+("+("-^/%K8-('"/&-0" A+$"K$+&K->'%(,"6(0"-IK@+$6'%+("A+$"8%(-$6@&"0/$%(,"'L-%$"R$&'" <-6$"+A"/&-T"

Companies

30%

Oil and Gas

Alternative Minimum Tax

0.3%

BL-"9(>+8-"B6I"7>'"O9B7P";6&"68-(0-0"'+"%('$+0/>-"6"$%(,Q A-(>%(,"K$+:%&%+("%("K-'$+@-/8"+K-$6'%+(&"-AA->'%:-"U&'"u/@<"iZUYT"

Mining Management and technical services Rents If in excess of Tsh500 000 per annum

10%

Aircraft

10%

Service fees

15%

Suppliers of goods to the government

Money transfer commission

10%

Nil

Government payments

Tanzania Taxation - 49

Notes

1. All supplies of goods to a resident corporation, whose !!!!(),5$&!*2!?6'++0!'3!2)(2&.4&*.++0!;4.4-$,!(0!&6$! Government, by a resident corporation irrespective of whether or not they hold TIN are subject to WHT of 2% w.e.f 1st July 2013. IH!=6$!4'4J3$2*,$4&!F<=2!2/$-*;$,!.(':$!.4,!F<=!'4! !!!!&$-64*-.+!2$3:*-$2!&'!8*4*45!-'8/.4*$2!.3$!;4.+!&.D$2H!=6$! resident WHT rates for dividends, interest on deposits !!!!@3'8!.!;4.4-*.+!*42&*&)&*'4!&'!.4!*4,*:*,).+K!.4,!3$4&!&'!.4! !!!!*4,*:*,).+K!.3$!;4.+!&.D$2H 3. The 2013 Finance Act imposed WHT of 5% on service fee paid by a resident person or a PE of a non-resident person to resident person or a PE or a non-resident person. The !!!!&.D!*2!.!4'4J;4.+!&.D!&6.&!-.4!($!'@@2$&!.5.*42&!-'3/'3.&$!&.D! liability for the year. 4. 15% WHT applicable where service fee is paid to a non-resident person with a source in Tanzania. Income is sourced in Tanzania where services are rendered in Tanzania, though the TRA is attempting to tax payments where the service is consumed in Tanzania, regardless of the location of performance. 5. A 10% WHT applies on aircraft lease payments made to resident persons engaged in air transport business. 6. The repatriated income of a local permanent establishment (PE) of a non-resident person is subject to a WHT of 10%. 7. Tax withheld must be paid to the Commissioner within seven days after the end of the month in which the amount is withheld. BH!=6$!3$L)*3$8$4&!&'!?*&66'+,!&.D!,'$2!4'&!.//+0!&'! individuals unless the payment is made in conducting a business. 9. The WHT rates may, in respect of payments to nonresidents, be reduced by an applicable Double Tax Agreement (DTA). Tanzania’s DTAs, and the WHT rates in terms of these agreements, are set out below. AMH!=6$!IMAC1AN!O),5$&!!*4&3',)-$,!.!IP!?*&66'+,*45!&.D!'4! payments made by entities whose budgets are substantially !!!!!!'3!?6'++0!;4.4-$,!(0!&6$!5':$348$4&2!

1. The WHT rate may be reduced if certain levels of shareholdings are held. 2. The reduced rate only applies if the dividend payment is taxed in the recipient’s country of residence. CH!Q!/3$@$3$4&*.+!3.&$!'@!AMP!.//+*$2!?6$3$!&6$!($4$;-*.+! owner holds at least 15% of the capital of the company paying the dividends 4. All of these tax treaties (except the treaty with Italy) provide !!!!&6.&!4'!F<=!-.4!($!+$:*$,!'4!(3.4-6!/3';&2H

Controlled Foreign Corporations (CFCs) and Trusts E-&%0-('&"6$-"'6I-0"+("'L-"/(0%&'$%F/'-0"%(>+8-"+A">+('$+@@-0" A+$-%,(">+$K+$6'%+(&"6(0">+('$+@@-0"A+$-%,("'$/&'&T"7"o>+('$+@@-0" A+$-%,("'$/&'p"+$"o>+('$+@@-0"A+$-%,(">+$K+$6'%+(p"8-6(&"6"(+(Q $-&%0-('"'$/&'"+$">+$K+$6'%+("%(";L%>L"6"$-&%0-('"K-$&+("L6&" 6("%('-$-&'1";L-'L-$"0%$->'@<"+$"%(0%$->'@<"'L$+/,L"+(-"+$"8+$-" %('-$K+&-0" (+(Q$-&%0-('" -('%'%-&1" 6(0" ;L-$-" 'L-" K-$&+(" %&" o6&&+>%6'-0p"O%T-T">+((->'-0P";%'L"'L-"'$/&'"+$">+$K+$6'%+(T 7">+('$+@@-0"A+$-%,(">+$K+$6'%+(_>+('$+@@-0"A+$-%,("'$/&'"%&"'$-6'-0" 6&"L6:%(,"0%&'$%F/'-0"%'&"/(6@@+>6'-0"%(>+8-"6'"'L-"-(0"+A"-6>L" '6I"<-6$"6(0"'L-"&L6$-L+@0-$&"+$"F-(-R>%6$%-&"6$-"'$-6'-0"6&" L6:%(,"$->-%:-0"&/>L"%(>+8-T"BL-"/(6@@+>6'-0"%(>+8-"+A"'L-" >+$K+$6'%+("+$"'$/&'"%&"0-'-$8%(-0"6&"%A"%'";-$-"6"$-&%0-('"+A" B6(H6(%61"@-&&"6(<"0%&'$%F/'%+(&"860-T

Thin Capitalisation, Transfer Pricing and Income Splitting BL-"iZUY_UX"M/0,-'"L6&"$->+,(%H-0"'L-"(--0"'+"F/%@0">6K6>%'<"A+$" BE7"+AR>%6@&"%("$-&K->'"+A"&-:-$6@"'6I"86''-$&"%(>@/0%(,"'$6(&A-$" K$%>%(,T"BL-"BE7"L6&"6@;6<&"'6*-("%('-$>+8K6(<"'$6(&6>'%+(&" :-$<"&-$%+/&@<"6(0"6("%(>$-6&%(,"(/8F-$"+A"'$6(&A-$"K$%>%(,"$-@6'-0" %(^/%$%-&"6$-"860-"0/$%(,"BE7"6/0%'&1"0-&K%'-"'L-"@6>*"+A"'->L(%>6@" >6K6>%'<"%("'$6(&A-$"K$%>%(,T"B6(H6(%6[&"0-'6%@-0"'$6(&A-$"K$%>%(," ,/%0-@%(-&"6$-"<-'"'+"F-"K/F@%&L-0T"

%(&'6@8-('"%&"K6<6F@-"F-A+$-"'L-"'%'@-"'+"6("%(:-&'8-('"6&&-'"%&" '$6(&A-$$-0T"=+$-+:-$1"'L-"'$6(&A-$"&L6@@"+(@<"F-"$-,%&'-$-0"/K+(" >-$'%R>6'%+("F<"'L-"b+88%&&%+(-$"'L6'"'L-"%(&'6@8-('"L6&"F--(" K6%0"+$"'L6'"(+"%(&'6@8-('"%&"K6<6F@-T"BL%&"6%8&"6'">+('$+@@%(,"'6I" 6:+%06(>-T"D6%(&"$-6@%&-0"F<"6"K-$&+(">6$$<%(,"+("6"F/&%(-&&" 6$-",-(-$6@@<"'6I-0"6&"F/&%(-&&"%(>+8-

Notes

BL-$-"%&"(+"0+(6'%+(&"'6I"+$"-&'6'-"0/'<"%("B6(H6(%6T

Value Added Tax (VAT) B6(H6(%6[&"=%(%&'$<"+A"5%(6(>-"%&&/-0"6"0$6A'"+A"6"(-;"r7B"7>'" +("UW'L"4>'+F-$T"7'"'L-"'%8-"+A";$%'%(,"%'"%&"(+'">@-6$";L-("'L%&" ;%@@">+8-"%('+"A+$>-T"]%'L"-AA->'"A$+8"U"u/@<"iZZV1"r7B"+("'L-" &/KK@<"6(0"%8K+$'6'%+("+A",++0&"6(0"&-$:%>-&1";6&"$-0/>-0" A$+8"iZt"'+"UWtT

BL%$0"&>L-0/@-"K$+:%0-&"r7B"$-@%-A"+("%8K+$'6'%+("F<"+$"&/KK@<"'+" 6"$-,%&'-$-0"6(0"@%>-(>-0"4CD_8%(%(,"-IK@+$-$"+$"K$+&K->'+$"+A" ,++0&"+$"&-$:%>-&"/&-0"%("-IK@+$6'%+("+$"K$+&K->'%(,"6>'%:%'%-&T"" BL-" iZUY_UX" M/0,-'" L6&" K$+:%0-0" A+$" &K->%6@" $-@%-A" +(" 'L-" %8K+$'6'%+("F<1"+$"&/KK@<"'+1"6"@+>6@"'-I'%@-"86(/A6>'/$-$"+A",++0&" +$"&-$:%>-&";L%>L"6$-"-I>@/&%:-@<"/&-0"%("'L-"86(/A6>'/$%(,"+A" '-I'%@-"F<"/&%(,"@+>6@@<",$+;(">+''+(T

Transaction Tax

Recipient’s Country of Residence

Dividends

Interest

Royalties

Canada

10%¹

10%

15%

Denmark

10%

15%

Finland

10%

15%

India

10%¹

10%

15%

Italy

10%

15%

Norway

10%

15%

Sweden

10%¹

10%

15%

Zambia

0%²

10%

15%

South Africa

20%³

10%

50 - Tanzania Taxation

Capital Gains" E-&%0-('&"6(0"(+(Q$-&%0-('&">+/@0"F-"@%6F@-"A+$"%(>+8-"'6I" +(">6K%'6@",6%(&T"BL%&"6KK@%-&"'+"@6(01"F/%@0%(,&"6(0"&L6$-&"+$" &->/$%'%-&"L-@0"6&"&->/$%'%-&T"BL-"$6'-"%&"YZt1";%'L"6("%(&'6@8-('" '6I"0/-"6'"'L-"'%8-"+A"'$6(&A-$"+A"@6(0"+$"F/%@0%(,&1"F-%(,"UZt"A+$" $-&%0-('"K-$&+(&"6(0"iZt"A+$"(+(Q$-&%0-('"K-$&+(&T"BL-"iZUi" 5%(6(>-"7>'"%8K+&-0"6"&%(,@-"%(&'6@8-('"+("&6@-"+A"&L6$-&"%("6" $-&%0-('">+$K+$6'%+("F<"6"A+$-%,(_(+(Q$-&%0-('"&L6$-L+@0-$T"BL-"

1.The road fuel levy has increased to Tshs. 263, being an increase in Tshs. 63 per litre from prior year. IH=6$!IMAA1AI!O),5$&!*4&3',)-$,!.4!$D$8/&*'4!@3'8!2&.8/! duty on transfer of ownership of assets to Special Purpose Vehicles (SPVs) for the purpose of issuing asset-backed securities. 3.Government has introduced a petroleum levy of Tshs. 50 per litre. The move is intended to support the Rural !!!R4$350!Q)&6'3*&0!*4!&6$!3)3.+!$+$-&3*;-.&*'4!/3'S$-&H

b/$$-('@<1"-IK+$'&1"6,$%>/@'/$6@"6(0"R&L%(,"%(K/'&1":-'-$%(6$<"0$/,&" 6(0"8+&^/%'+"(-'&1"6$-"H-$+Q$6'-0T"BL-"&/KK@<"+A"F6&%>"A++0&'/AA&1" 6,$%>/@'/$6@"6(0"@%:-&'+>*"$6;"K$+0/>'&1"(-;&K6K-$&"6(0"F++*&1" K-&'%>%0-&1"L-6@'L"&-$:%>-&1"-0/>6'%+(6@"&-$:%>-&1"8+F%@-"L-6@'L" Motor Vehicle Licence Fees >@%(%>&1"$6%@;6<"@+>+8+'%:-&"6(0"$+@@%(,"&'+>*1"6(0":-'-$%(6$<" BL-"$6'-&"A+$"8+'+$":-L%>@-"@%>-(>-"A--&"6$-"6&"A+@@+;&` &-$:%>-&1"6$-"-I-8K'"&/KK@%-&T"b-$'6%("+'L-$",++0&"6(0"&-$:%>-&" Motor Vehicle Licence Fees 6$-"6@&+"-I-8K'"A$+8"r7B1"%(>@/0%(,",$+/(0"'$6(&K+$'"&-$:%>-&" $/("F<"'+/$"+K-$6'+$&1"6:%6'%+("A/-@"A+$"0+8-&'%>"6%$"+K-$6'+$&1" But does Motor Vehicle Engine Licence Fee p.a. ,68-&"+A">L6(>-1"6(0",++0&"&/>L"6&">+8K/'-$"-^/%K8-('1" not exceed Capacity as exceeds (Tshs.) L+&K%'6@"-^/%K8-('1">6K%'6@",++0&"A+$"%(:-&'8-('"%("-0/>6'%+(" 0 500cc 0 K$+N->'&"6(0"'-6"6(0"8%@*"K6>*6,%(,"86'-$%6@&T

Other Transaction Taxes

The Income Tax Act provides that where transactions between associated persons are not at arm’s length, the Commissioner has the discretion to make adjustments to the taxable income. Similar rules apply when there is an attempt to split income and thereby reduce the tax payable, whether dealing with associated companies or not. In terms of the thin capitalisation rules, the Finance Act amended the existing rule. Interest deductions will now be limited to the extent of a debt to equity ratio of 70:30. This interest is disallowed permanently in the year incurred.

!"b%'<1"'+;("6(0"8/(%>%K6@">+/(>%@&"g".%>-(>-"A--"+A"B&LdZ"ZZZ" ""K-$"6((/8"A+$"-6>L"'<K-"+A"F/&%(-&&"-@%,%F@-"A+$"6"F/&%(-&&" ""@%>-(>-"O+'L-$"'L6("F6$&PT !"a%&'$%>'">+/(>%@&"g".%>-(>-"A--"+A"B&LYZ"ZZZ"K-$"6((/8T !"r%@@6,-">+/(>%@&"g".%>-(>-"A--"+A"B&LUZ"ZZZ"K-$"6((/8T

Inheritances and Donations

Notes

Maximum Withholding Tax Rates Once a DTA is Applied

Business Licensing

Note

Tax Payable

500

1 500cc

150 000

1 500cc

2 500cc

200 000

2 500c +

250 000

Notes 1. Excise duty on importation of non-utility vehicles aged more than ten years now set at 25% being a 5% increase from prior year. 2. Importation of utility vehicles aged, more than 10 years !!!!@3'8!&6$!0$.3!'@!8.4)@.-&)3$!)4,$3!<#!T',$!BUHMAK!BUHMI! !!!!.4,!BUHMN!.3$!4'?!2)(S$-&$,!&'!.!VP!$D-*2$!,)&0H!

Stamp duty on transfer of Agricultural land

Tsh500 per acre

Immovable property

Maximum 1.5%

B6I"9(>-('%:-& ]-6$Q6(0Q'-6$"$6'-&

Stamp duty Share transfers

Air travel tax Tsh5 000

Domestic travel International travel Road fuel levy

Investment Incentives

US$30 1

Tsh263 per litre

!"9(%'%6@"6@@+;6(>-"O%("R$&'"<-6$"+A"/&-P"g"dZt"6@@+;6(>-"%("$-&K->'" ""+A"K@6('"6(0"86>L%(-$<"/&-0"A+$"86(/A6>'/$%(,"K$+>-&&-&"+$" ""R&L"A6$8%(,1"6(0"L+'-@"-^/%K8-('T !"7((/6@"6@@+;6(>-"g"BL-";-6$Q6(0Q'-6$"$6'-&"6KK@<"6&"&-'"+/'" ""F-@+;"O&'$6%,L'Q@%(-"8-'L+0"/(@-&&"+'L-$;%&-"&'6'-0P` Q"b+8K/'-$"-^/%K8-('"6(0">+(&'$/>'%+("6(0"-6$'LQ8+:%(," ""-^/%K8-('"g"YjTdt"O$-0/>%(,"F6@6(>-"8-'L+0PT Q"r-L%>@-&"g"YjTdt"+$"idt"0-K-(0%(,"+("'L-"'<K-"+A":-L%>@-"6(0" ""&-6'%(,">6K6>%'<"O$-0/>%(,"F6@6(>-"8-'L+0PT

Tanzania Taxation - 51

Q"B$6%(&1"F+6'&1"6%$>$6A'1"K@6('"6(0"86>L%(-$<"/&-0"%(" """86(/A6>'/$%(,"+$"8%(%(,"+K-$6'%+(&"g"idt"O$-0/>%(,"F6@6(>-" ""8-'L+0PT Q"4AR>-"A/$(%'/$-1"RI'/$-&"6(0"-^/%K8-('"g"UiTdt"O$-0/>%(," ""F6@6(>-"8-'L+0PT Q"=%(%(,"6&&-'&"g"iZtT Q"M/%@0%(,&"6(0"+'L-$"K-$86(-('"&'$/>'/$-&"/&-0"%("6,$%>/@'/$-1" ""@%:-&'+>*"A6$8%(,"+$"R&L"A6$8%(,"g"iZtT Q"J@6('"6(0"86>L%(-$<"/&-0"%("6,$%>/@'/$-1"-@->'$+(%>"R&>6@" """0-:%>-"K/$>L6&-0"F<"6"(+(Qr6@/-"700-0"B6I"$-,%&'-$-0"'$60-$" ""6(0"-^/%K8-('"/&-0"A+$"K$+&K->'%(,"6(0"-IK@+$6'%+("+A" ""8%(-$6@&"+$"K-'$+@-/8TT"g"UZZtT Q"4'L-$"F/%@0%(,&"g"dtT Q"4'L-$"%('6(,%F@-"6&&-'&"g"]$%''-("+AA"+:-$"'L-"/&-A/@"@%A-"+A"'L-" ""6&&-'T Q"4'L-$"6&&-'&"g"UiTdt"O$-0/>%(,"F6@6(>-"8-'L+0PT !"7"A/@@"0-0/>'%+("%&",$6('-0"%("$-&K->'"+A"'L-"A+@@+;%(,` Q"7,$%>/@'/$6@"%8K$+:-8-('"-IK-(0%'/$-"%(">@-6$%(,"@6(01" ""-I>6:6'%(,"%$$%,6'%+(">L6((-@&"+$"K@6('%(,"K-$-((%6@">$+K&"+$" ""'$--&"F-6$%(,">$+K&T Q"G(:%$+(8-('6@"-IK-(0%'/$-"A+$"'L-"K$-:-('%+("+A"&+%@"-$+&%+(" ""+$"$-8-0<%(,"0686,-">6/&-0"F<"(6'/$6@"$-&+/$>-"-I'$6>'%+(T Q"E-&-6$>L"6(0"0-:-@+K8-('"-IK-(0%'/$-T Q"r6$%+/&"A--&">L6$,-0"F<"'L-"=%(%&'$<"+A"26'/$6@"E-&+/$>-&"6(0" ""B+/$%&8";%@@"F-"$-:%-;-0T Q"r6$%+/&">+(>-&&%+(&"6KK@<"'+"GIK+$'"J$+>-&&%(,"n+(-&1" "")K->%6@"G>+(+8%>"n+(-&"6(0"(+(Q,+:-$(8-('"+$,6(%&6'%+(&" ""+("@6(0T

F-"6>>-&&-0"F<"6("%(:-&'+$"/(0-$"'L-"9B71"Gbb=71"b/&'+8&" B6$%AA"7>'1"r7B"6(0"6(<"+'L-$"@6;&"A+$"'L-"'%8-"F-%(,"%("A+$>)'$6'-,%>"9(:-&'+$ BL-"B6(H6(%6"9(:-&'8-('"7>'"K$+:%0-&"'L6'"6"$-@-:6('"8%(%&'-$">6(" %0-('%A<"6">-$'6%("%(:-&'8-('"6&"6"&'$6'-,%>"+$"86N+$"%(:-&'8-('T" 9("0+%(,"&+1"'L-"8%(%&'-$"%(">+(&/@'6'%+(";%'L"'L-"5%(6(>-"=%(%&'-$" >6("%&&/-"6"D6H-''-"2+'%>-"&-''%(,"+/'"&K->%R>"%(>-('%:-&"'+"F-" ,$6('-0"'+"'L-"&'$6'-,%>"%(:-&'+$T"

G>+(+8%>"J$+>-&&%(,"n+(-&"OGJn&P" 4("il"=6$>L"iZZl1"K$-&%0-('%6@"6&&-('";6&",%:-("'+"'L-"GIK+$'" J$+>-&&%(,"n+(-&"O78-(08-('&P"7>'1"iZZlT"BL-"K$%86$<"K/$K+&-" +A"'L%&"7>'"%&"'+"+:-$L6/@"'L-"608%(%&'$6'%+("+A"GJn&T"BL%&"%&"F-%(," 0+(-"'L$+/,L"'L-"-&'6F@%&L8-('"+A"'L-"GIK+$'"J$+>-&&%(,"n+(-&" 7/'L+$%'<T"E+@-&"+A"'L-"GJn"7/'L+$%'<"%(>@/0-"&-''%(,"/K"GJn"&%'-&" 6(0"K$+8+'%+("+A"GJn&T"BL-"GJn"7/'L+$%'<"%&"'+"F-">+8K$%&-0"+A" :6$%+/&",+:-$(8-('"8%(%&'-$&1"'L-"7''+$(-<"D-(-$6@1"D+:-$(+$"+A" 'L-"M4B1"6&";-@@"'L-"L-60&"+A"'L$--"%(0/&'$<",$+/K&T"BL-"+'L-$" A/(>'%+("+A"'L-"78-(08-('&"7>'";6&"'+"$-&'6'-"'L-"F-(-R'&" /(0-$"6("GJnT"98K+$'6('@<1"GJn"+K-$6'+$&">6("(+;"&-@@"/K"'+" iZt"+A"'L-%$",++0&";%'L%("'L-">/&'+8&"'-$$%'+$<1"K$+:%0-0"'L-" (->-&&6$<">/&'+8&"K-$8%'&"6(0"6KK@%>6F@-"%8K+$'"0/'%-&1"@-:%-&" 6(0"+'L-$">L6$,-&"6$-">@-6$-0T"7("GJn"%(:-&'+$[&"-('%'@-8-('&" %(>@/0-"'L-"A+@@+;%(,` O6P"7>>-&&"'+"'L-"-IK+$'">$-0%'",/6$6('--"&>L-8-T OFP"GI-8K'%+("A$+8"K6<8-('&"+A">+$K+$6'-"'6I"A+$"6("%(%'%6@"K-$%+0" """""+A"UZ"<-6$&T O>P"GI-8K'%+("A$+8"K6<8-('"+A"]3B"+("$-('1"0%:%0-(0&"6(0" """""%('-$-&'"A+$"'L-"R$&'"UZ"<-6$&T B6(H6(%6"9(:-&'8-('"b-('$-"OB9bP B9b";6&"-&'6F@%&L-0"'+"6>'"6&"6",+"'+">-('$-"A+$"%(:-&'+$&T"9'"%&" O0P"E-8%&&%+("+A">/&'+8&"0/'<1"r7B"6(0"6(<"+'L-$"'6I"K6<6F@-" $-&K+(&%F@-"'+">++$0%(6'-1"-(>+/$6,-1"K$+8+'-"6(0"A6>%@%'6'-" """""+("$6;"86'-$%6@&"6(0",++0&"+A"6">6K%'6@"(6'/$-T 5a9&"%("B6(H6(%6TB9b"%&"6@&+"'6&*-0"68+(,"+'L-$"'L%(,&";%'L" O-P"GI-8K'%+("A$+8"K6<8-('"+A"6@@"'6I-&"6(0"@-:%-&"%8K+&-0"F<" 'L-"A+@@+;%(, """"""""@+>6@",+:-$(8-('"6/'L+$%'%-&"A+$",++0&"6(0"&-$:%>-&"K$+0/>-0" O6P"9(%'%6'-"6(0"&/KK+$'"8-6&/$-&"'L6'"-(L6(>-"'L-"%(:-&'8-('" """""+$"K/$>L6&-0"%("'L-"GJn"A+$"6"K-$%+0"+A"UZ"<-6$&T """"">@%86'-"%("'L-">+/('$<m OAP"GI-8K'%+("A$+8"K$-Q&L%K8-('"+$"0-&'%(6'%+("%(&K->'%+(" OFP"b+@@->'1">+@@6'-"6(0"6(6@<&-"6(0"0%&&-8%(6'-"%(A+$86'%+(" """""$-^/%$-8-('&T """""6F+/'"%(:-&'8-('"+KK+$'/(%'%-&"6(0"&+/$>-&"+A"%(:-&'8-('" O,P"4("&%'-">/&'+8&"%(&K->'%+("+A",++0&T """"""">6K%'6@1"6(0"60:%&-"%(:-&'+$&"/K+("$-^/-&'"+("'L-"6:6%@6F%@%'<1" OLP"J$+:%&%+("+A"F/&%(-&&":%&6&"6'"'L-"K+%('"+A"-('$<"'+"*-<" """""'->L(%>6@1"86(6,-8-('1"6(0"'$6%(%(,"&'6AA"A+$"6"86I%8/8" """"">L+%>-"+$"&/%'6F%@%'<"+A"K6$'(-$&"%("N+%('Q:-('/$-"K$+N->'&m O>P"9(">+(&/@'6'%+(";%'L"D+:-$(8-('"%(&'%'/'%+(&"6(0"6,-(>%-&1" """""K-$%+0"+A"';+"8+('L&m"'L-$-6A'-$"'L-"$-^/%$-8-('&"'+"+F'6%(" """""6"$-&%0-(>-"K-$8%'"6KK@%-&T """""%0-('%A<"%(:-&'8-('"&%'-&1"-&'6'-&1"+$"@6(0"'+,-'L-$";%'L" O%P"G('%'@-8-('"'+"6/'+86'%>"%88%,$6'%+("^/+'6"+A"R:-"K-$&+(&T """""6&&+>%6'-0"A6>%@%'%-&"+A"6(<"&%'-&1"-&'6'-&"+$"@6(0"A+$"'LONP"B$-6'8-('"+A",++0&"0-&'%(-0"A+$"'L-"GJn"6&"'$6(&%'">6$,+T """""K/$K+&-&"+A"%(:-&'+$&"6(0"%(:-&'8-('&"%(",-(-$6@ O0P"7&&%&'"6@@"%(:-&'+$&"'+"+F'6%("6@@"(->-&&6$<"K-$8%'&1"@%>-(>-&" O*P"GI-8K'%+("A+$8"r7B"+("/'%@%'<"6(0";L6$A6,-">L6$,-&T """""6KK$+:6@&">+(&-('&1"6/'L+$%&6'%+(&1"$-,%&'$6'%+(&"6(0"+'L-$" O@P"D/6$6('--&"+("A+$-%,("-I>L6(,-"'$6(&A-$6F%@%'<T """""86''-$&"$-^/%$-0"F<"@6;"A+$"6"K-$&+("'+"&-'"/K"6(0"+K-$6'-" """"""6("%(:-&'8-('m"6(0"'+"-(6F@-">-$'%R>6'-&"%&&/-0"F<"'L-"b-('$-" )K->%6@"G>+(+8%>"n+(-&"O)Gn&P """""'+"L6:-"A/@@"-AA->'m 9("6(+'L-$"8+:-"'+"K$+8+'-"86(/A6>'/$%(,1"'L-")K->%6@"G>+(+8%>" O-P"B+"K$+:%0-1"0-:-@+K1">+(&'$/>'1"6@'-$1"606K'1"86%('6%("6(0" n+(-&"7>'1"iZZl1";6&"6@&+",%:-("K$-&%0-('%6@"6&&-('"+("il"=6$>L" """""608%(%&'-$"%(:-&'8-('"&%'-&1"-&'6'-&"+$"@6(0"'+,-'L-$";%'L" iZZlTBL-")K->%6@"G>+(+8%>"n+(-&"O)GnP"$-,%8-"%("B6(H6(%6"%&" """""6&&+>%6'-0"A6>%@%'%-&"6(0"&/FN->'"'+"$-@-:6('"@6;1"'L-">$-6'%+(" (+;"+K-$6'%+(6@T"BL%&"&>L-8-"6KK@%-&"'+"%(:-&'8-('&"'L6'"K$+0/>-" """""6(0"86(6,-8-('"+A"6("-IK+$'"K$+>-&&%(,"H+(,++0&"6(0"&-$:%>-&"A+$"'L-"@+>6@"86$*-'T"7("%(:-&'8-('"A6@@%(," OAP"J$+:%0-"6(0"0%&&-8%(6'-"/K"'+"06'-"%(A+$86'%+("+("F-(-R'&" &L+$'"+A"^/6@%A<%(,"A+$"'L-"GJn"&>L-8-";%@@"8+&'"@%*-@<"F-"-@%,%F@-" """"+$"%(>-('%:-&"6:6%@6F@-"'+"%(:-&'+$& A+$"'L%&TBL-"GJn"(+;"+K-$6'-&"/(0-$"'L-"/8F$-@@6"+A"'L-")Gn"F/'" ;%'L"&@%,L'"0%AA-$-('">+(0%'%+(&"'+"'L-")Gn&"-&K->%6@@<"%("'-$8&"+A" 4(-"+A"'L-"-@%,%F%@%'<">$%'-$%6"/(0-$"'L-">-('$-"%&"6"8%(%8/8">6K%'6@" @+>6@"&/KK@<"@%8%'6'%+(T"BL-")Gn"7>'"L6&";%0-(-0"'L-">+:-$6,-" 'L$-&L+@0"+A"sUZZ1ZZZ"6(0"sYZZ1ZZZ"A+$"@+>6@"6(0"A+$-%,(-$&" +A"%(>-('%:-&"'+"8+$-"'L6("N/&'"K$+0/>-$&"A+$"-IK+$'"86$*-'T G6>L"+(-";+/@0"F-"/(0-$"6"&K->%R>"@%>-(&%(,"6/'L+$%'<"F/'"6@@" $-&K->'%:-@<T /(0-$"'L-"+(-"/8F$-@@61"'L-")Gn7 SK+("&/>>-&&A/@"6KK@%>6'%+("6(0"6>>-K'6(>-1"'L-"B9b";%@@"%&&/-" 6">+8K6(<"6">-$'%R>6'-"+A"%(>-('%:-&T"T"9(>-('%:-&"6&"K-$"'L-"7>'" %&"/&-0"'+"8-6("'6I"$-@%-A&"6(0">+(>-&&%+(6@"'6I"$6'-&";L%>L"86<" 52 - Tanzania Taxation

International Business Tanzania 2014 - 53

Tanzanian Taxation from a Norwegian Perspective The Tanzanian government offers a variety of incentives to attract foreign direct .2:#(!+#2!($&21$.2!#'2&!.)2&/$7'+(,$Q#(=.!#$)88#'.29$&$0&'+$0#/*)+#6$*)+=/#!.29$!"#$ #:#'C*"&29.29$45'#&5*'&!.*$'#R5.'#+#2!($8)'$.2!#'2&!.)2&/$7'+($)8!#2$!5'2($)5!$!)$4#$&$ time-consuming and costly process.

2+$;6<"6(0"B6(H6(%6"L6&"-('-$-0"%('+"0+/F@-"'6I"'$-6'%-&T"BL-" ,-(-$6@"'6I"$6'-"%("B6(H6(%6"%&"YZtT"M6&-0"+("'L%&"O'L-"'6I" $6'-P1"6(<"%(:-&'8-('&"%("&L6$-&"%("B6(H6(%6"86<"^/6@%A<"A+$" 'L-"K6$'%>%K6'%+("-I-8K'%+("8-6(%(,"(+"'6I"+("0%:%0-(0"A$+8" B6(H6(%6" +$" 6(<" '6I" +(" >6K%'6@" ,6%(" +(" &L6$-&" %(" B6(H6(%6" O6&&/8%(,"'L-"2+$;-,%6(">+$K+$6'-"&L6$-L+@0-$"L+@0&"6'"@-6&'" UZt"+A"'L-"&L6$-&"A+$"6'"@-6&'"i"<-6$&"g"6(0"'L6'"B6(H6(%6"%&" (+'"6"@+;"'6I">+/('$<PT" )-:-$6@">+(&%0-$6'%+(&"&L+/@0"L+;-:-$"F-"-:6@/6'-0m !"9A"0%:%0-(0&"6$-"K6%0"'+"6"2+$;-,%6(">+8K6(<"6"d"t"+$"UZ"t" "";%'LL+@0%(,"'6I";%@@"%(>/$"g"'L%&"]3B"%&"(+'"K+&&%F@-"'+">$-0%'" ""%("2+$;-,%6("'6I"+$"/&-0"A+$"'6I"0-0/>'%+("K/$K+&-&"6(0";%@@" ""%(>$-6&-"'L-"'6I"F/$0-("+("'L-"$-@-:6('",$+/KT !"5+$"'L-">6&-"+A"6(<"'6I"%(>-('%:-&"%("B6(H6(%6"'L-"K6$'%>%K6'%+(" """-I-8K'%+("%("2+$;6<"86<"(+'"6KK@<"6(0"'L-"-6$(%(,&"6$-"'6I-0" """6>>+$0%(,@<"6&"0%:%0-(0"%(>+8-"6(0"+$">6K%'6@",6%(&"+("&L6$-&T !"]%'LL+@0%(,"'6I-&"+("'->L(%>6@"&-$:%>-"0-@%:-$%-&"'+"B6(H6(%6"%&" """^/%'-"L%,L"6(0"F6&-0"+("'L-",$+&&"%(:+%>-0"68+/('1"-T,T"UdtT" ""9A"'L-"%(:+%>-"%&"UZZ"6(0"'L-">+&'"%&"Wd"'L-"'6I";%@@"F-"Udt"+A" ""UZZ1";L%>L";%@@"$/("'L-"K$+N->'"%('+"6"(+"K$+R'"K$+N->'T Written by Deloitte, Tanzania

54 - Tanzanian Taxation from a Norwegian Perspective

International Business Tanzania 2014 - 55

The Tanzanian Government’s Effect on Business Operations

Future Opportunities and Threats for Tanzania

The Tanzanian government offers a variety of incentives to attract foreign direct .2:#(!+#2!($&21$.2!#'2&!.)2&/$7'+(,$Q#(=.!#$)88#'.29$&$0&'+$0#/*)+#6$*)+=/#!.29$!"#$ #:#'C*"&29.29$45'#&5*'&!.*$'#R5.'#+#2!($8)'$.2!#'2&!.)2&/$7'+($)8!#2$!5'2($)5!$!)$4#$&$ time-consuming and costly process.

The Government’s Impact on Business BL-"]+$@0"M6(*[&"a+%(,"M/&%(-&&"$-K+$'"$6(*-0"B6(H6(%6"Ujj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b+8K-'%'%:-(-&&"E-K+$'1"UZTi"K-$">-('"+A"'L-"$-&K+(0-('&"K@6>-" %(-AR>%-('",+:-$(8-('"F/$-6/>$6><"6&"'L-"8+&'"K$+F@-86'%>" A6>'+$"+A"0+%(,"F/&%(-&&"%("B6(H6(%6T"BL-",+:-$(8-('[&"6F%@%'<" '+"F-''-$"%(>@/0-"'L-"K$%:6'-"&->'+$"%("'L-"-&'6F@%&L8-('"+A"(-;" $-,/@6'%+(&";%@@"F-"+A"L%,L"%8K+$'6(>-"A+$">+('%(/-0"0-:-@+K8-('" 6(0"'L-"F/&%(-&&"-(:%$+(8-('"A+$"K$+&K->'%:-"%(:-&'+$&T""

Larger Firms Are Less Vulnerable To Government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

BL-"A/'/$-"+A"B6(H6(%6"$-86%(&"L%,L@<"/(>-$'6%(T"a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

The Threat of Urbanization and the Population Explosion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

56 - The Tanzanian Goverment´s Effect

/(%(L6F%'-0"6(0"K/''%(,">+(&%0-$6F@-"&'$-&&"+("'L-"&+>%6@"6(0" KL<&%>6@" %(A$6&'$/>'/$-" %(" 'L-" /$F6(" 6$-6&1" 6(0" %(" K6$'%>/@6$" %("a6$"-&")6@668T"BL-"86&&%:-",$+;'L"+A"'L-"/$F6("6$-6&"%&" 600%'%+(6@@<">6/&%(,"&'$6%("+("-8K@+<8-('"$6'-&1"6(0"'L-"$->-('" %(>$-6&-"%("<+/'L"/(-8K@+<8-('"$6'-"%("a6$"-&")6@668"%@@/&'$6'-&" 'L-"K+'-('%6@"K$+F@-8&"'L6'"86<"6$%&-T"BL-"(+(Q,+:-$(8-('6@" +$,6(%H6'%+("E-&'@-&&"a-:-@+K8-('"A+/(0"'L6'"+(@<"UX"+/'"+A" UZZZ"<+/(,"K-+K@-"6>$+&&"B6(H6(%6";6&"-8K@+<-0"%("'L-"A+$86@" &->'+$1";L%@-"'L-"86N+$%'<"+A"'L-"$-86%(%(,"$-&K+(0-('&";-$-" @++*%(,"'+"a6$"-&")6@668"A+$"-8K@+<8-('T"" )%8/@'6(-+/&@<1" 'L-" K$+N->'-0" K+K/@6'%+(" ,$+;'L" ;%@@" A/$'L-$" &'$6%("/$F6("6$-6&["6F%@%'<"'+"L+@0"6(0"K$+:%0-"A+$"'L-%$"$-&%0-('&T" a-&K%'-"F-%(,"6":6&'">+/('$<1"'L-",$+;'L";%@@"/(^/-&'%+(6F@<" F->+8-"6"F/$0-("F+'L"->+(+8%>6@@<"6(0"&+>%6@@<"0/-"'+"&>6$>%'<" %("$-&+/$>-&T"7@$-60<">+(&'$6%(-0"F/0,-'&";%@@"F-">L6@@-(,-0"6&" 'L-"(--0"+A"K$+:%0%(,"&-$:%>-&"'+"%'&"%(>$-6&%(,@<"<+/(,"K+K/@6'%+(" %(>$-6&-&T"BL-"&'$6%("%&1"0/-"'+"F+'L"/$F6(%H6'%+("6(0"%88%,$6'%+(1" F<"A6$"8+&'">$%'%>6@"%("a6$"-&")6@6681";%'L"%'&"6((/6@",$+;%(,"$6'-" +A"dTl"K-$">-('T"BL-",$+;'L"%&"L+;-:-$"(+'"%&+@6'-0"'+"B6(H6(%6T"9(" A6>'1"'L-"K+K/@6'%+(",$+;'L"%("B6(H6(%6";6&"'L-"&->+(0"@+;-&'"%(" 'L-"G6&'"7A$%>6("$-,%+("%("iZUi1"6(0"%&"%("A6>'"6"$-,%+(6@">L6@@-(,-" 'L6'"L6&"6''$6>'-0"'L-">+(>-$("+A"86(<T"a-&K%'-"'L-&-">+(>-$(&1" 'L-",+:-$(8-('"L6&"'+"06'-"K$%86$%@<"K6%0"@%K"&-$:%>-"'+"$-&+@:%(," 6>'%+(&T"5+$"-I68K@-1"6@'L+/,L"B6(H6(%6[&"K+@%><"60:+>6'-&" A$--"A68%@<"K@6((%(,"&-$:%>-&1"'L-<"6$-"(+'"F-%(,"K$+:%0-0"A$--" +A">L6$,-T"

Improvements Arise BL-"&'6F%@%'<"+A"B6(H6(%6"$-86%(&"6"K$%86$<"0%AA-$-('%6'+$"A$+8" 86(<"(-%,LF+$%(,"(6'%+(&1"6(0"%(>$-6&%(,"K+@%'%>6@"K@/$6@%&8" %(0%>6'-&"6"K+&%'%:-"0-:-@+K8-('"A$+8"'L-"+(>-

Future Opportunities - 57

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b+('%(/-0" K$+,$-&&";%@@"F-">$/>%6@"'+"%(>$-6&-"'L-"6:6%@6F%@%'<"+A"&*%@@-0" ;+$*-$&1"6(0"6@@+;"B6(H6(%6"'+"F-(-R'"A$+8"%'&"A/'/$-"0-8+,$6KL%>" 0%:%0-(0T

58 - Future Opportunities

Will the Sun Rise Over Serengetiâ&#x20AC;&#x2122;s Endless Plains? =6(<" 7&%6(" (6'%+(&" L6:-" 6@$-60<" %0-('%R-0" 'L-" -(0@-&&" +KK+$'/(%'%-&"B6(H6(%6"+AA-$&1"6(0"86(<"8+$-"6$-"-IK->'-0" '+"-('-$"'L-"86$*-'";%'L%("A-;"<-6$&"6&"0-:-@+K8-('"+A",6&" %(%'%6'-&T"9'"'L-$-A+$-"6KK-6$&"'L6'"'L-"A/'/$-"+A"B6(H6(%6"%("'$/'L" @%-&"%("'L-"L6(0&"+A"%'&",+:-$(8-('"6(0"'L-"6F%@%'<"'+">/@'%:6'-" >+('%(/-0"->+(+8%>"0-:-@+K8-('T"BL-"A/'/$-"+A"B6(H6(%6"86<1" %A">6$-A/@@<"(/$'/$-01"F-"6&"F$%,L'"6&"'L-"&/($%&-"+:-$")-$-(,-'%[&" -(0@-&&"K@6%(&T"

International Business Tanzania 2014 - 59

Best Practices - Final advises on how to succeed in Tanzania

”

The As this report concludes, a few common denominators determining the (5**#(($'&!#$)8$*)+=&2.#($#2!#'.29$!"#$>&2?&2.&2$+&'B#!$"&:#$4##2$.1#2!.7#1,$ In the following section, we discuss possible solutions to problems entering companies most often face in terms of daily governance, time, and human capital. Finally, we present our last thoughts on Tanzania’s attractiveness 8)'$=')(=#*!.:#$S)'0#9.&2$*)+=&2.#(6$&21$='):.1#$%)5$0.!"$)5'$72&/$ recommendations

Norwegians are too slow, they should have been here long time ago. East-Africa is the new hot spot

”

- Bjarte Fadnes, Rig Manager, Odfjell Drilling 2014

Getting Around the Tedious Tanzanian System 9(-AR>%-('"06%@<",+:-$(6(>-"%&"6">+88+(">L6@@-(,-"8+&'"0+8-&'%>" 6(0"%('-$(6'%+(6@"R$8&"A6>-T"98K-0%(,"F+'L"+(-&"&>L-0/@-"6(0" F/0,-'1"'L-"%8K-0%8-('6@"K$+>-&&-&">6("F-"&+/$>-0"'+"';+" A/(068-('6@"&+/$>-&`"b+$$/K'%+(1"%(";L%>L"'L-"&->+(0"K6$'<" -IK->'&",$-6&%(,"'+"A6&'QA+$;6$0"K$+>-&&-&1"+$"%(-AR>%-(>%-&" $-@6'-0"'+"0+%(,"F/&%(-&&"%("6"(6'%+(";%'L"@+;"K$+0/>'%:%'<T"7" K+&&%F@-"&+@/'%+("'+",-'"6$+/(0"'L-"%(-AR>%-('",+:-$(8-('1";L%@-" 6:+%0%(,">+$$/K'%+(1"86<"F-"'+"L%$-"6"RI-$T"h+/$"RI-$"&L+/@0" F-"6("%(0%:%0/6@"'L6'"*(+;&"'L-"@+>6@"-(:%$+(8-('"6(0"%&";-@@" >+((->'-0T"9'"%&"6@&+"+A"/K8+&'"%8K+$'6(>-"'L6'"<+/$"RI-$"L6&" K+&%'%:-"$-A-$-(>-&1"6&"'L-$-"L6:-"F--("(/8-$+/&"-I68K@-&"+A" 0%&L+(-&'"RI-$&"'L6'"L6:-"N-+K6$0%H-0"-('%$-"+K-$6'%+(&T"BL-"/&-" +A"6("%(0-K-(0-('"RI-$"&L+/@0"6@&+"F-">6/'%+(-01"6&"'L-"@%(-"+A" >+$$/K'%+("%&"F@/$$-0";L-("6"R$8"K6<&"6"'L%$0QK6$'<"A+$"/(*(+;(" &-$:%>-&"'L6'";%@@"&K--0"/K"K$+>-&&-&T"7&"6"$-&/@'1"8+&'"2+$;-,%6(" R$8&"6@$-60<"K$-&-('"%("B6(H6(%6"-8K@+<"%('-$(6'%+(6@@<"*(+;(" >+(&/@'%(,"R$8&"+$"@6;<-$&";%'L"+K-$6'%+(&"%("B6(H6(%6T"a-&K%'-" F-%(,">+&'@<1"'L-"F-(-R'&"6$-"6KK6$-('T"9("+$0-$"'+"8%'%,6'-")=G[&" 0%&60:6('6,-+/&"K+&%'%+("%("'L-"B6(H6(%6("F/&%(-&&">@%86'-1" >++K-$6'%+("%&"-(>+/$6,-0"'+"%(>$-6&-"(-,+'%6'%(,"K+;-$T"

60 - Best Practices

a-&K%'-"$-@-('@-&&"-AA+$'&"6(0">+8K@<%(,";%'L"$-,/@6'%+(&1"86(<" >+8K6(%-&"L6:-"A+/(0"%'"0%AR>/@'"'+",-'"6("%('-$(6'%+(6@">+8K6(<" $-,%&'-$-0"%("B6(H6(%6T"9("&/>L">6&-&1"<+/"&L+/@0"F-";%&-"'+" %(:-&'%,6'-"'L-"+KK+$'/(%'<"+A"$-,%&'-$%(,"%("n6(H%F6$1"6&"%'"F<" 86(<"%&"&--("6&"A6$"-6&%-$"'L6("-&'6F@%&L%(,"6">+8K6(<"+(" 'L-"86%(@6(0T"5/$'L-$8+$-1"0-&K%'-"@6>*%(,"6"F%@6'-$6@"'$60-" 6,$--8-('" ;%'L" B6(H6(%61" 2+$;6<" L6&" 6(" 6,$--8-('" ;%'L" =6/$%'%/&T"G&'6F@%&L%(,"6"&/F&%0%6$<">+8K6(<"%("=6/$%'%/&"'L6'" %&"/&-0"'+"-&'6F@%&L"6("-('%'<"%("B6(H6(%6"86<">+(&%0-$6F@<" $-0/>-"'L-"$%&*&"A+$"K$+&K->'%:-"2+$;-,%6("R$8&T"

African time D-''%(,"6$+/(0"'L-",+:-$(6(>-"86H-";%@@"+(@<",-'"<+/"L6@A;6<" 'L-$-T" 9(" B6(H6(%61" <+/" ;%@@" @%*-@<" 86*-" &>L-0/@%(," -$$+$&" >+('%(/+/&@<T"5+$"-I68K@-1"'$6AR>">+(,-&'%+("+A'-(">6/&-&"L+/$&" +A"0-@6<1"6(0"'L-"&/00-("6((+/(>-8-('"+A"6"K/F@%>"L+@%06<"+(-" 06<"%("60:6(>-"%@@/&'$6'-&"'L6'"&>L-0/@%(,"%&"6"0%AR>/@'"'6&*T"9("A6>'1" 'L-"o7A$%>6("B%8-p"6AA->'&"-:-$<"6&K->'"+A"@%A-"%("B6(H6(%6T"#-&L+1" 6">+88+(@<"L-6$0";+$0"%(");6L%@%1"%("'$/'L"8-6(&"'+8+$$+;1" 0/$%(,"(-I'";--*1"%("6"<-6$1"+$"86<F-"(-:-$T"BL-"&+@/'%+("'+"6:+%0" &%,(%R>6('">+&'&"%&"'+"6@@+;"A+$"\-I%F%@%'<1"6@;6<&"*--K%(,"&'+>*" +A">$/>%6@">+8K+(-('&1"6(0"K@6("A+$"'L-"A/'/$-"6&"%A"%'";6&"'+06<T"

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

Perfection is an Enemy of Success E-,6$0@-&&"+A"%(0/&'$<"+$"86(6,-8-('"&'<@-1"K-$A->'%+("'$/@<"%&" 'L-"-(-8<"+A"K$+,$-&&"%("B6(H6(%6T"BL-">+/('$<"86(6,-$"+A"6" 86N+$"2+$;-,%6("R$8"(+'-0`"oh+/"&L+/@0"F-"&6'%&R-0";%'L"jZQ WZ"K-$">-('T"2-:-$"-IK->'"UZZ"K-$">-('T"9A"<+/"6$-"6'"UZZ"K-$" >-('1"<+/"8+&'">-$'6%(@<"6$-"F-%(,"%(-AR>%-('"6(0"/(K$+0/>'%:-Tp" S(0-$&'6(0%(,"'L6'"UZZ"K-$">-('"%&"%8K+&&%F@-1"6(0"%("A6>'"8+&'" @%*-@<"(+'"-:-("0-&%$6F@-1";%@@"0$686'%>6@@<"%(>$-6&-"<+/$"@%*-@%L++0" +A"&/>>-&&T

Best Practices - 61

Aftermath

4/$"%(:-&'%,6'%+("+A"'L-"B6(H6(%6("86$*-'"L6&"F--("6"0<(68%>" +(-1"6(0"'L-"68+/('"+A"%(A+$86'%+("'L6'"-IK-$%-(>-0"86(6,-$&" L6:-" K$+:%0-0" /&" ;%'L" L6&" '$/@<" F--(" -(0@-&&T" =+&'" +A" 'L-" >L6@@-(,-&" 0-&>$%F-0" %(" 'L%&" $-K+$'" L6:-" F--(" -@6F+$6'-0" +("$-K-6'-0@<1";L%>L"%(0%>6'-&"'L6'"'L-<"%("A6>'"6$-"-:-$<06<" >L6@@-(,-&T"3+;-:-$1"'L-">+88+("0-(+8%(6'+$"6KK-6$-0"'+" F-"'L-"-8KL6&%&"+A"'L-"-(0@-&&"+A"+KK+$'/(%'%-&"B6(H6(%6"L+@0&" A+$";%@@%(,"2+$;-,%6(">+8K6(%-&1"6(0"6@@"L6:-"6,$--0"'L6'"'L-" '%8-"A+$"-('$<"%&"(+;T"2+$;-,%6(">+8K6(%-&";%@@"F-(-R'",$-6'@<" A$+8"2+$;6<[&",++0;%@@"%("B6(H6(%6">6/&-0"F<"0->60-&"+A"6%0" &/KK+$'T"]-"&'$+(,@<"F-@%-:-"'L6'"'L-"^/-&'%+("&L+/@0"(+'"F-" ;L-'L-$"'+"-('-$"B6(H6(%6"+$"(+'1"F/'"L+;"'+"F-&'"0+"&+T"

%&"%("A6>'":6&'1",%:-("'L-"$%,L'"K6>*6,%(,"6(0"K$%>-"%((+:6'%+(T" 5+$"-I68K@-1"6"K$+0/>-$"+A"5=b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si"K+:-$'<"@%(-1";L%@-"6"'$/-" '+",6%("K+;-$"6(0"&'$-(,'L"'+";%'LL+@0"86(<"+A"'L-">L6@@-(,-&" 86$*-'-$"&L+/@0"0%&6,$--T"7&";-"%(:-&'%,6'-0"6"&86@@":%@@6,-"'L$--" 'L-<";%@@"A6>-T"5%(6@@<1"'L-"8+&'">$/>%6@"60:%>-";-"L6:-"'+"+AA-$" L+/$&"+/'&%0-"+A"a6$"-&")6@6681"%'"06;(-0"+("/&"L+;"86(<";-$-" %&`"]L-("%("B6(H6(%61"0+"6&"'L-"B6(H6(%6(&"0+1"F/'"(-:-$"A6@@" /&%(,"&86$'KL+(-&T"a-&K%'-"@+;"%(>+8-&1"'L-"K+'-('%6@"86$*-'" %('+"'L-"'$6K"+A">+$$/K'%+(T

Children at ophanage

62 - International Business Tanzania 2014

Aftermath - 63

About us

Helene Dahl, MSc Energy and Environmental Engineering, NTNU, helene.dahl@ib.no

Helene Ringen, CFO, BSc in Economics and Business Administration, NHH, helene.ringen@ib.no

Sigrid Johanne Husøy. Editor, BSc in Economics and Business Administration, NHH, sigrid.husoy@ib.no

64 - About us

Solfrid Dahl Helgesen, CEO, BSc in Economics and Business Administration, NHH solfrid.helgesen@ib.no

Hanne Christensen Lystad, Head of PR and Communication, MSc in Entrepreneurship, Innovasion and Political Science, NTNU, hanne.lystad@ib.no

Jostein Olsvik Hovind, BSc in Finance, BI, jostein.hovind@ib.no

Gino Ismail, Head of Research, MSc in Strategic Marketing Management, Handelshøyskolen BI i Oslo, gino.ismail@ib.no

Anders Jørgen Hartmann Bjørndalen, Head of Business Realtions, BSc in Economics and Business Administration, NHH, anders.boerndalen@ib.no

Ida Kallmyr Lerheim, Head of Distribution, MA in European Studies, NTNU, ida.lerheim@ib.no

Aleksander Cornejo Malm, Head of IT, BSc in Business And Administration, Handelshøyskolen BI i Oslo, aleksander.cornejo@ib.no

About us - 65

Thanks to: 7@F-$'"]+@0-$&1"a-@+%''7((-''-"):--(1")"a-&'%(6'%+(& 7$(-"M@<&'60"7) M9"g"2+$;-,%6("M/&%(-&&")>L++@ MN6$'-"560(-&1"40AN-@@"a$%@@%(, a-@+%''G%:%(0"5N-@0&'601"27M7 G$%*"3+@'6$1")'6'+%@ G0,6$"uT"u+L6((-&-(&"5+(0 36(&"3-/-$1"b+$6@"M-6>L u+("36(&&-(1"9((+:6&N+("2+$,u+'$+("7) #N-'%@"MN+$:6'(1"233 #$%&'%6("=6/&-'L1"D$6R*-$ .6$&"#$%&'%6("=+-(1"#+(,&F-$,"=6$%'%8-"7) .6$&"B6$6@0"#:681")'6'+%@ =%@-@-"r%@@6& =+$+K-"6(0"5%@%8+(1"+/$"A6%'LA/@"0$%:-$& 234 3-%0%"M-$,1"2+$A/(0 2+$)-6D$+/K M-(-0%>'-"M$/F6**-("+,"u+L6("3/&'601"2B2S 4@-"u+L6("M-$,-1"233 J$+&K-$"2,+;% E6,(L%@0"=66'@61"2+$,-&"r-@ )+@A$%0"DN-(,&-'1"7aQ'$6:-@ )K6$-F6(*-("=v$B6/&%"#%06 BL-"GS"a-@-,6'%+("'+"B6(H6(%6 BL-"2+$;-,%6("G8F6&&<"%("B6(H6(%6 BL-"S(%:-$&%'<"+A"a6$"G&")6@668 B$%(-"3:--81"2+$;-,%6("bL/$>L"7%0 r6$0 Jw@"x<&'-%(")'+$8+$*-(1"h6$6 =6$,$-'-"D/'L/&1"a-@+%''-

Previous IB Projects iZUi_iZUY`"""""M$6H%@ iZUU_iZUi`"""""9(0%6 iZUZ_iZUU`"""""9(0+(-&%6 iZZV_iZUZ`"""""=-I%>+ iZZW_iZZV`"""""=6@6<&%6 iZZj_iZZW`"""""r%-'(68 iZZl_iZZj`"""""M$6H%@ iZZd_iZZl`"""""9(0%6 iZZX_iZZd`"""""bL%(6 iZZY_iZZX`"""""E/&&%6 iZZi_iZZY`"""""B/$*-< iZZU_iZZi`"""""J+@6(0 iZZZ_iZZU`""""")+/'L"#+$-6 UVVV_iZZZ`"""""M$6H%@ UVVW_UVVV`"""""BL-"M6@'%>")'6'-& UVVj_UVVW`"""""9(0+(-&%6 UVVl_UVVj`"""""9(0%6 UVVd_UVVl`""""")+/'L"7A$%>6 UVVX_UVVd`"""""bL%@UVVY_UVVX`"""""3/(,6$< UVVi_UVVY`"""""=-I%>+ UVVU_UVVi`"""""J+$'/,6@ UVVZ_UVVU`"""""E/&&%6"6(0"'L-"M6@'%>")'6'-& UVWV_UVVZ`"""""BL6%@6(0 UVWW_UVWV`"""""bL%(6 UVWj_UVWW`"""""9'6@< UVWl_UVWj`"""""7/&'$6@%6 UVWd_UVWl`"""""M$6H%@ UVWX_UVWd`""""")%(,6K+$-

Next year’s project: Myanmar

66 - Thanks to

Previous IB Projects - 67

References

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International Business Tanzania 2014 - 71