Tanzania Slips in Doing Business 2011 - Study


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Written by Egesa Bwire
22 November 2010

East African Business Week (Kampala)


The general environment for doing business in Tanzania has slipped slightly in comparison with last year as indicated in this year's 'Doing Business, 2011' report that was released last week by the World Bank.

According to the report, Tanzania has slipped three places to position 128 from last year's position 125 globally, making it the second worst country in doing business in the East African Community region. The report indicates that Tanzania did not make significant reforms in the business sector including legislation that directly affects business registration and licensing.

A stakeholder in the Business Registration and Licensing Authority (BRELA) who spoke on condition of anonymity, said that while there have been a number of improvements in business regulation, corruption was the major problem that has contributed to the poor performance. The source also attributed the fall to some changes in economic policies especially those relating to the mining industry

Players in the private sector noted that while there were improvements in the business regulations, the reforms were mainly targeted at large foreign companies and have little consideration for promoting local investments.

Regionally, Rwanda recorded the highest improvement from position 70 last in 2009 to 58 this year, thus maintaining the top position in the EAC region. Uganda made a slight improvement from position 129 to 122 this year, while Kenya dropped four places from position 94 last year to 98 this year. Burundi's fortunes don't seem to make any improvements at all as it maintained last year's position of 181.
 
Njowepo

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Njowepo

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Kwa CCM ilo nalo litakuwa la kujivunia watakwambia heri sisi 3 steps backward but Kenya 4 steps backward
 
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Kweli

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We have a lot to learn from Rwanda, under our current environments and business regulation it's hard to attract foreign investors and our local businesses face even tougher challenges to establish any sustainable business.

The level of bureaucracy is unbelievable high in TZ, just take an example in Rwanda a foreign business require just a "trade license" which takes just one day to obtain, everything run smoothly no 'swing and roundabout' while in our beloved country you'll have to fill form after form for company registration and bribes your way to BRELA and TIC, this should take 3 days only if you know how to play by their terms otherwise you'll learn the hard way what they mean when they say 3 days. (could actually mean 3 months!!!)

With their stability, communication and infra-structure improvement, no wonder hawa wanyarandwa wataendelea kutupiga bao.
 

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