Business Dynamics: Tanzania

January 2022

Tanzania’s ranking in the Index of Economic Freedom was mediocre in 2021, dragged down by difficult trading across borders procedures and difficulties in starting and operating a business. Low ICT adoption and the absence of funds for innovation prevent the country from excelling. Yet an improving investment environment is regarded as a top priority in Tanzania, followed with heavy investments into expanding the country’s logistical capacities, improving education quality and availability.

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Overview:

The Country Briefings series examine market potential, economic and consumer trends impacting each country and how they are set to change.

Each Country Briefing covers one of these topics:

Economy, Finance and Trade: Understanding the structure, health and potential risks of an economy are important for decision-making within an existing operating environment as well as for expansion strategies. Real GDP growth, inflation and exchange rate fluctuations will directly impact consumer market potential. Import and export trade profiles help gauge how open an economy is to trade and investment, while analysis of government finances can be used to explore macroeconomic stability and susceptibility to economic shocks.

Income and Expenditure: Insights into income, wealth and expenditure of consumers are vital in helping businesses make strategic decisions with regards to which country (or even which region within a country) to enter, which consumer segment to target, which products or services to market, and at which price point. Other factors such as the size and expansion of the middle class and income inequality are also important in helping companies gauge the potential of a country market.

Households: Global shifts in gender, ageing, migration and housing are transforming the size, location,  general make-up as well as income and expenditure of households around the globe, with diverse implications for governments and companies. Households insights can help identify the decision-making processes and consumption tastes of different household groups and types within a country, and assess household appliance and digital readiness that is key for formulating market technology and internet strategies.

Business Dynamics: A stable and competitive business environment is vital to operate efficiently and attract inward investment. Businesses can assess these factors alongside challenges such as corruption, political instability and terrorism, also gain insight into business operating environment and make strategic investment decisions. Transport infrastructure, ICT readiness and labour force dynamics will also identify potential issues with a supply chain and the level of workforce skills.

Commodities: Insights on key sectors directly related to the environmental commodities of a country such as energy, water, pollution, environmental resilience, forest and biodiversity and food and agriculture help businesses to make strategic decisions in relation to environmental and commodities trends, improve brand reputation and ensure long-term operations while ultimately growing the bottom line.

The briefings cover 103 countries and identify topics of crucial interest to planners, marketers and researchers.

Business Dynamics: Tanzania

HEADLINES

While starting and operating a business is set to remain difficult in Tanzania, progress is made in terms of taxes
Heavy investment regulations to hamper FDI flow in Tanzania
Tanzania to boost enrolment in higher education
Underdeveloped infrastructure continues to hinder Tanzania’s competitiveness, yet substantial investments are on the way
ICT adoption remains low in Tanzania, yet the country demonstrates proper governance of its network
Chart 1 Operational and Legal Environment Key Indicators
Chart 2 Index of Economic Freedom Ranking by Pillar in Tanzania and Regional Comparison 2021
Chart 3 Index of Economic Freedom Ranking 2016-2021
Chart 4 Index of Economic Freedom: Judicial Effectiveness Pillar Rank in Tanzania and Regional Comparison 2017-2021
Chart 5 Index of Economic Freedom: Government Integrity Pillar Rank in Tanzania and Regional Comparison 2016-2021
Chart 6 Corruption Perceptions Ranking: Tanzania and Regional Comparison 2015-2020
Chart 7 Key Financial and Investment Indicators
Chart 8 Index of Economic Freedom: Property Rights Pillar Rank in Tanzania and Regional Comparison 2016-2021
Chart 9 Bank Claims on the Private Sector as % of GDP 2016-2021
Chart 10 Bank Nonperforming Loans to Total Gross Loans 2016-2021
Chart 11 Key Skills and Labour Indicators
Chart 12 Population Aged 15+ with Higher Education 2016-2021
Chart 13 Education Indicators 2021
Chart 14 Employment by Age 2021
Chart 15 Employment by Gender 2021
Chart 16 Youth Unemployment Rate 2016-2021
Chart 17 Labour Structure Change 2016-2021
Chart 18 Labour Structure Comparison 2021
Chart 19 Self Employed as % of Total Employed Population 2021
Chart 20 Index of Economic Freedom: Labour Pillar Rank in Tanzania and Regional Comparison 2016-2021
Chart 21 Wage per Hour in Manufacturing Sector 2016-2021
Chart 22 Labour Market Regulations in Tanzania and Regional Comparison 2021
Chart 23 Key Infrastructure Indicators
Chart 24 Transportation Mode Indicators in Tanzania and Regional Comparison
Chart 25 Road Infrastructure 2021
Chart 26 Innovation and Digitalisation Key Indicators
Chart 27 Network Readiness Ranking by Pillar in Tanzania and Regional Comparison 2021
Chart 28 Network Readiness Ranking for Tanzania and Regional Comparison 2019-2021
Chart 29 Network Readiness Ranking: Technology Pillar for Tanzania and Regional Comparison 2019-2021
Chart 30 Intellectual Property: Tanzania Compared to Selected Regional Peers 2021
The 2021 Index of Economic Freedom
The Logistics Performance Index (LPI) 2021
The Network Readiness Index (NRI) 2021
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