Tanzania

Investment & 
Operational
Climate

Tanzania has a relatively stable political environment, reasonable macroeconomic policies, and resiliency from external shocks. However, recently adopted policies raise questions about short- and medium-term prospects for FDI, and foster a more challenging business environment. The private sector remains concerned about heavy-handed and arbitrary enforcement of rules; stagnant credit growth; poor budget credibility and execution; and excessive domestic arrears. Regressive resources tax measures and unfriendly investor legislation have made investment in the resources sectors difficult to justify to forgegin entities, which is compounded by local content regulations that make it difficult to hire foreign employees, even when the required skills are not available locally. Corruption, especially in government procurement, privatization, taxation, and customs clearance remains a concern for foreign investors, though the government has prioritized efforts to combat the practice.