Tanzania

GDP (US$ Billion)

51.76 (2017)

World Ranking 81/193

GDP Per Capita (US$)

1,034 (2017)

World Ranking 165/192

Economic Structure

(in terms of GDP composition, 2017)

Services
(37.5%)
Industry
(26.4%)
Agriculture
(30.1%)

External Trade (% of GDP)

42.3 (2016)

Currency (Period Average)

Tanzanian Shilling

2228.86 per US$ (2017)

Political System

Unitary multiparty republic

Overview

Tanzania has sustained relatively high economic growth over the last decade, averaging 6–7% annually and the country benefits from its strategic geographic position – lying on Africa's eastern coast (with access to maritime trade via Dar es Salaam), while also being situated between Southern, Central, and East African states. President John Pombe Magufuli has prioritised efforts to clampdown on corruption, improve public administration and manage public resources for improved social outcomes. Financial inclusion among Tanzanians continues to improve, as does the country's growing transport infrastructure profile. With a large and growing population (approximately 55 million) as well as rising per capita incomes particularly in urban areas, the country presents significant opportunities for consumer-facing sectors and labour-intensive industries.

Sources: World Bank, Fitch Solutions

Major Economic/Political Events and Upcoming Elections

November 2015

John Pombe Magufuli was elected as President.

April 2016

Tanzania and Uganda agreed to build East Africa's first major oil pipeline.

January 2019

The Tanzania Investment Centre (TIC) provided required incentives to China-based Sinoma International Engineering and Hengya Cement to begin construction of a USD1 billion Greenfield cement plant in the African country's Tanga region. The facility will have an annual production capacity of 7 million tonnes. The project will have a 1.2GW captive power plant. At least 70% of the cement produced will be exported and the remainder will be sold domestically.

March 2019

Tanzania ordered all mineral-producing regions in the country to set up government-controlled trading centres by the end of June 2019, accelerating efforts to curb illegal exports of gold and other precious minerals. The trading centres will give small-scale miners direct access to a formal, regulated market where they can go and directly trade their gold.

March 2019

The governments of Tanzania and Malawi launched a joint commission of the Songwe River Basin to run irrigation and power generation projects on Songwe River Basin. The aim is to supervise the management of resources in the basin for the advantage of people residing around the development area in the two countries. The commission is expected to accelerate construction of the lower Songwe dam and hydro project, several village-based schemes, two irrigation schemes and Songwe and Kasumulu town's water supply schemes. Construction of dams, costing USD829 million, are planned under the Songwe River Basin Project.

March 2019

The African Development Bank (AfDB) has signed a USD256.2 million concessional loan deal to support completion of Kasulu-Manyovu road project in western region of Kigoma, Tanzania. The project involves upgrading the 260.6km Kabingo-Kasulu-Manyovu road section to bitumen standard. The route will link the port of Dar es Salaam with the country's western regions and open up regional markets in Burundi, Rwanda, Uganda and the Democratic Republic of Congo.

2020

General elections to be held.

Sources: BBC Country Profile – Timeline, Fitch Solutions

Major Economic Indicators
Graph: Tanzania real GDP and inflation
 
Graph: Tanzania real GDP and inflation
 
 Graph: Tanzania GDP by sector (2017)
 
 Graph: Tanzania GDP by sector (2017)
 
Graph: Tanzania unemployment rate
 
Graph: Tanzania unemployment rate
 
Graph: Tanzania current account balance
 
Graph: Tanzania current account balance
 

e = estimate, f = forecast

Sources: IMF, World Bank, World Economic Outlook Database

Date last reviewed: April 10, 2019

External Trade

Merchandise Trade

Graph: Tanzania merchandise trade
 
Graph: Tanzania merchandise trade
 
 

Source: WTO

Date last reviewed: April 10, 2019

Graph: Tanzania major export commodities (2018)
 
Graph: Tanzania major export commodities (2018)
 
Graph: Tanzania major export markets (2018)
 
Graph: Tanzania major export markets (2018)
 
Graph:  Tanzania major import commodities (2018)
 
Graph:  Tanzania major import commodities (2018)
 
Graph: Tanzania major import markets (2018)
 
Graph: Tanzania major import markets (2018)
 

Sources: Trade Map, Fitch Solutions

Date last reviewed: April 10, 2019

Trade in Services

Graph: Tanzania trade in services
 
Graph: Tanzania trade in services
 
 

e = estimate

Source: WTO

Date last reviewed: April 10, 2019

Trade Policies
  • Tanzania has been a member of the World Trade Organisation (WTO) since 1995, as well as the WTO's precursor – the General Agreement on Trade and Tariffs – since 1961.

  • The government has introduced a directive banning coal imports. Coal consumers are required to enter into supply contracts with local producers to protect growth of local industry.

  • A ban on unprocessed mineral exports is in place as the government aims to develop mineral processing industries within the country.

  • Tanzania is a member of the East African Community (EAC), which became a Customs Union on January 1, 2005 on the implementation of the East African Customs Union Protocol. This protocol provides for a common external tariff (CET), elimination of internal tariffs, rules of origin, anti-dumping measures, a common customs law, and common export promotion schemes. Import duty rates under the CET range from 0% for raw materials, capital goods, agricultural inputs, pure-bred animals, medicines; to 10% for semi-finished goods and 25% for finished final goods.

  • Under the EAC CET, machinery and spare parts imported by licensed mining companies and used in mining activities as well as machinery, spares, and inputs imported by licensed company for direct use in oil, gas, and geothermal exploration are exempt from customs duties.

  • Tanzania is a member of the Southern African Development Community (SADC), an organisation that helps to reduce trade barriers among the Southern African member states.

  • Tanzania's trade policies are undergoing harmonisation with other EAC countries, and SADC members receive tariff preferences from Tanzania, greatly facilitating regional trade.

  • Tanzania bans the export of raw tanzanite gemstones, affecting trade with France, Hong Kong, India, South Africa, Thailand, the United States, Belgium, and Germany. Export restrictions on scrap metal are also in place.

  • The export of hides and skins to India has additional taxes imposed upon it.

Sources: WTO - Trade Policy Review, Fitch Solutions

Trade Agreement

Trade Updates

In March 2019, Tanzanian President John Magufuli indicated the desire to resume negotiations on the EAC-European Union Economic Partnership Agreement (EAC-EU EPA). Tanzania had, reportedly, suspended negotiations due to the belief that the agreement would not provide the country with any benefits which it does not already receive via the 'Everything But Arms'(EBA) agreement. However, given that the Economic Partnership Agreement consists of a regional bloc, Tanzania will benefit from increased negotiating power vis-à-vis the EU.

Multinational Trade Agreements

Active

  1. The EAC Common Market: In addition to Tanzania, the community comprises Burundi, Rwanda, Kenya, Uganda, South Sudan and was formalised in 2000, with Dodoma signing on to the agreement a year later in 2001. The customs union aids regional trade flows and allows businesses to use Tanzania as a gateway to the African market. The EAC Common Market is becoming increasingly important to foreign investors, offering access to a large consumer market with free movement of factors of production. Tanzania's trade with neighbouring states is substantial.

  2. The EAC-United States Trade and Investment Framework Agreement (TIFA): the TIFA, in connection with the United States' Africa Growth and Development Act, removes tariffs for some product exports to the United States (such as textiles), reducing trade barriers for exporters and easy access to the large United States market.

  3. EBA: All EU countries, as well as all countries designated as 'less-developed' (LDCs) are eligible to be party to the EBA. The EBA agreement allows businesses in Tanzania full access to the EU market for all products (excluding arms and armaments). The agreement also provides Tanzanian businesses duty-free and quota-free access to EU markets with no expiry date. EBA status can be withdrawn under exceptional circumstances.

  4. The SADC: In addition to Tanzania, SADC comprises Angola, Botswana, the DRC, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Zambia and Zimbabwe. Tanzania joined SADC in 1992, the same year as the community's creation. SADC measures help to reduce trade barriers among member states, while greater market access across SADC and improved regional logistical developments lower trade costs and increases the potential consumer market.

Singed But Not Yet In Effect

  1. The African Continental Free Trade Agreement (AfCFTA): AfCFTA is a trade agreement between African Union member states with the goal of creating a single market followed by free movement and a single currency union. The AfCFTA was signed in Kigali, Rwanda on March 21, 2018. The agreement was ratified in Q119 by the pre-requisite 22 states. Once all documents are concluded, the free trade area will formally exist. Negotiations will continue in 2019 with Phase II, including competition policy, investment and intellectual property rights. A draft will be submitted for the January 2020 African Union assembly.

Under Negotiation

  1. EAC-EU EPA: The EAC finalised the negotiations for an EPA with the EU on October 16, 2014. Kenya and Rwanda signed the EPA in September 2016 and Kenya has ratified it. For the EPA to enter into force, the three remaining EAC members need to sign and ratify the agreement. EU states are key trade partners and the EPA facilitates access to this large market. Trade preferences include duty-free entry of all industrial products as well as a wide range of agricultural products, including beef, fish, dairy products, cereals, fresh and processed fruits, and vegetables. Tanzania has indicated the desire to resume negotiations surrounding the agreement following a prolonged suspension in talks. The implementation of the EPA will supersede the EBA agreement.

Sources: WTO Regional Trade Agreements database, Fitch Solutions

Investment Policy

Foreign Direct Investment

Graph: Tanzania FDI stock
 
Graph: Tanzania FDI stock
 
Graph: Tanzania FDI flow
 
Graph: Tanzania FDI flow
 

Note: Data for outward FDI not available

Source: UNCTAD

Date last reviewed: April 10, 2019

Foreign Direct Investment Policy

  1. In practice, the investment climate in Tanzania is relatively open, with no overriding rules that prohibit foreigners from investing across a wide range of sectors, however some restrictions are in place.

  2. The Tanzanian government has taken steps towards setting up policies and incentives to attract more foreign investment. The TIC is the country’s primary investment promotion agency offering investment services, assistance with work permits, licences and certificates, online registration with multiple entities and administration. Both the Mainland and Zanzibar have their respective investment promotion bodies, the TIC and the Zanzibar Investment Promotion Authority (ZIPA). As a result, foreign enterprises will encounter a lighter burden of red tape and simplified business procedures.

  3. Tanzania restricts the purchase of land by foreigners; land ownership among foreigners is restricted to land designated for investment purposes. Land may be leased for up to 99 years.

  4. In the fisheries and tourism sectors, certain operations are restricted to locals. Investment in the extractive sectors is increasingly subject to local content requirements and the mandatory listing of shares on local capital markets.

  5. The fisheries sector has discriminatory treatment on fishing vessels and licensing practices that make foreign involvement in the sector difficult or prohibitive.

  6. Investment in the Tanzania is mainly a non-Union matter, thus there are different laws, policies, and practices for the Mainland and Zanzibar. However, international agreements on investment are covered as Union matters and therefore apply to both regions.

  7. Investment benefits are available to investors who satisfy the following capital requirements:
     
    • Locally owned firms need to invest a minimum of USD100,000
    • Foreign owned or joint venture firms need to invest a minimum of USD500,000

  8. In addition to the above-mentioned criteria, a business or investor can also qualify as a strategic investment partner. Strategic investment status provides further benefits to businesses on a case-by-case basis.

  9. Under the EAC Model Investment Code, a strategic investor in Tanzania (excluding Zanzibar) require:
     
    • A minimum of USD20.0 million investment if the business is local
    • A minimum of USD50.0 million investment if the business is foreign

  10. In order to benefit from strategic investor status in Zanzibar, a business must invest a minimum of USD100.0 million. The required rate is reduced to USD50.0 million for disadvantaged areas.

  11. In March 2015, the TIC and the Investment Climate Facility for Africa (ICF) signed an agreement worth USD950,000 aimed at promoting investments in the country by expanding, consolidating and promoting the TIC. Tanzania had received the most FDI over 2017 and 2018 out of all East African states.

  12. A number of tax incentives in the form of reduced corporate tax (standard corporate income tax is 30%) are in place to encourage investment.
     
    • New manufacturers of pharmaceutical products and leather products face a 10% reduction in the first five years of operation
    • Newly listed companies have a three year grace period of paying lower taxes amounting to 25% provided at least 30% of their shares are issued to the public
    • The largest tax deduction will be experienced by new assemblers of vehicles, tractors and fishing boats. In their first five years of operation, tax is reduced to 10%. With these tax breaks, new passenger-transport equipment firms, in particular, will enjoy lower operating costs, allowing them to divert funds for production expansion

  13. Foreign investors are given a guarantee that the repatriation of funds is not restricted, promoting returns on foreign investors' investments.

  14. The government applies discounts on customs duties for import firms and value added tax (VAT) reductions on all capital goods for investments in the following industries:
    • Mining
    • Power
    • Telecommunications
    • Infrastructure
    • Agribusiness
    • Utilities

  15. Tanzania is focusing its promotional efforts on 21 specific sectors, namely:
     
    • Agriculture and livestock development
    • Natural resources
    • Tourism
    • Manufacturing
    • Oil and gas exploration and production
    • Mining
    • Transportation
    • Real estate
    • Services
    • Information and communication technologies
    • Financial institutions
    • Telecommunication
    • Energy
    • Broadcasting
    • Education sector
    • Health sector
    • Insurance services
    • Security services
    • Construction industry
    • Water and sanitation
    • Integrated waste management

  16. Tanzania has 11 bilateral investment treaties in effect. The countries covered by these treaties are: Canada, mainland China, Denmark, Finland, Germany, Italy, Mauritius, Netherlands, Sweden, Switzerland and the United Kingdom. Agreements with Oman, Singapore, Thailand, Kuwait, Iran, and Zimbabwe have all been entered into, but have not come into effect as of yet.

  17. Tanzania is looking to conclude bilateral investment treaties with Algeria, Bangladesh, Belgium, Luxembourg, France, India, Japan, Libya, Malawi, Malaysia, Qatar, Slovakia, the United Arab Emirates, and Vietnam.

  18. In August 2016 the government identified six new areas slated for SEZ development – including the Coast, Morogoro, Iringa, Njombe, Mbeya and Songwe Regions – while the country’s Five-Year Development Plan prioritises SEZ development in Bagamoyo, Mtwara, Kigoma, Tanga, Ruvuma, Dodoma and Manyoni, and the Kurasini Logistic Centre.

Sources: WTO – Trade Policy Review, ITA, US Department of Commerce, Fitch Solutions

Free Trade Zones and Investment Incentives

Free Trade Zone/Incentive Programme Main Incentives Available
Benjamin William Mkapa Special Economic Zone (BWM - SEZ) in Dar Es Salaam - Exemption from payment of taxes and duties on capital goods and raw materials to be used for purposes of development of SEZ infrastructure.



- Exemption from payment of withholding tax on rent, dividends and interest for the first 10 years.



- Exemption from payment of property tax for the first 10 years.



- Remission of customs duty, VAT and any other tax payable in respect of the importation of one administrative vehicle, ambulances, firefighting equipment, and up to two buses for employees' transportation to and from SEZs.



- Exemption from payment of stamp duty on any instrument executed in or outside the SEZ, relating to transfer, lease or hypothecation of any movable or immovable property in or situated within the SEZ, or any document to any activity or venture in the SEZs.



- Entitlement to an initial automatic immigrant quota of up to five persons during the start-up period.



- Exemption from payment of VAT on utility services and construction materials.



- On-site customs inspection of goods.



- Treatment of goods destined into Special Economic Zones as transit cargo.



- Exemption from pre-shipment or destination inspection requirements.



- Unconditional transferability through any authorised dealer bank in freely convertible currency of profits, remittances and loan payments.
Export Processing Zones (EPZ): Hifadhi and Kisongo - Offers similar incentives as SEZs, including a 10 year exemption from corporate taxes.
Manufacturers of leather or pharmaceutical goods - Foreign and local investors entering the leather or pharmaceutical production industry stand eligible to benefit from a reduced corporate income tax rate ranging between 20% and 30% for the initial five years of operations.



- Companies must enter into a performance agreement with the Tanzanian government in order to qualify.
Listing incentives - Companies listing on the Dar Es Salaam Stock Exchange, and which have at least 30% of its stock publicly traded, are eligible for a reduced corporate income tax rate for the three year period following the listing.



- The reduction in corporate income tax ranges between 25% and 30%.

Sources: US Department of Commerce, Fitch Solutions, National Sources

Taxation – 2018/2019
  • Value Added Tax: 18%
  • Corporate Income Tax: 30%

Source: Tanzania Revenue Authority

Important Updates to Taxation Information

  • A raft of new legislation (commencing in 2018) targeting the mining sector has been introduced. These measures include the government's ban on unprocessed mineral exports and regulations stipulating that the government will have a right to renegotiate or dissolve existing mining contracts at any time.

  • Other key changes brought in by the Finance Act 2018 are the reduction in corporate income tax rate for new manufacturers of pharmaceutical or leather products who have a performance agreement with the government from 30% to 20% for the first five years from commencement of operations to encourage manufacturers in these two sectors.

Business Taxes

Type of Tax Tax Rate and Base
Corporate Income Tax 30% on operating profits

25% for up to three years for newly listed companies with minimum 30% of shares issued to the public

20% for up to five years for new manufacturers of pharmaceutical or leather products

10% for up to five years for new assemblers of vehicles, tractors and fishing boats
Alternative Minimum Tax 0.5% payable by organisations with perpetual unrelieved losses for three consecutive years. Exemptions apply to companies in agriculture and firms involved in provision of health and education
Capital Gains Tax 30% on operating profits (taxable as business income)
Skills and development levy 4.5% on of payroll cash costs (paid by employer)
Value Added Tax 18% on value of the products
Workers compensation fund 1% or 0.5% of cash sums paid to employees, payable on a monthly basis (1% for private sector and 0.5% for public sector)
Social security contributions 20% on gross salaries (10% paid by employer, 10% by the employee)

Source: Tanzania Revenue Authority

Date last reviewed: April 10, 2019

Foreign Worker Requirements

Localisation Requirements

According to the Non-Citizens Employment Act (2015), the hiring of non-citizens is restricted to jobs for which local talent is unavailable. Legislation also require the employers to have succession plans in place, with the non-citizen employee eventually being replaced by a local worker. Employers are, therefore, required to implement training during the non-citizen employee's employment tenure in order to upskill a Tanzanian citizen capable of replacing the non-citizen employee.

Foreign Worker Permits

Work permits are must be secured for employees, and sponsored by a locally licensed and incorporated entity. There are three categories of work permits:

  • Class A: for foreign directors of companies operating or wishing to invest in Tanzania. The process is estimated to take one day to complete. The permit is issued free of charge.
  • Class B: issued to non-citizen employees who possess prescribed professional skills, including medical and health care professionals, experts in the oil and gas industry, teachers and University Lecturers in science and mathematics. The process is estimated to take between 16 and 17 days to complete. The permit is issued at a cost of USD500.
  • Class C: issued to non-citizen employees who do not qualify for Class A or Class B work permits. The process is estimated to take between 16 and 17 days to complete. The permit is issued at a cost of USD1,000.

Visa/Travel Restrictions

A number of visa types exist for visitors to the country, including:

  • Transit visas – valid for seven days from entry. Required for those traveling to a third location via Tanzania.
  • Business visas – applicable to stays not exceeding 90 days (continuous). Issued to those individuals who:
    • are conducting special assignments, such as fixing/repairing machines or to run short term training (among others)
    • are conducting professional roles such as auditing accounts (among others)
    • are conducting lawful business according to the laws of the country
  • Single entry visas
  • Multiple entry visas – for official visits, Government Missions, family re-unions or any other circumstances as may be determined by the Office of the Commissioner General of Immigration which call for frequent visits to Tanzania.

All non-citizens require a visa to enter the country unless they are from Botswana, Hong Kong, Malawi, Namibia, Zambia, Gambia, Kenya, Malaysia, eSwatini, Zimbabwe, Ghana, Lesotho, Mozambique or Uganda. Visas can be obtained at any Diplomatic or Consulate Mission of the United Republic of Tanzania abroad, normally within one business day. It is possible, however, to obtain a tourist's visa for a single entry at any one of the following four main entry points to Tanzania, subject to the fulfilment of all immigration and health requirements:

  • Dar es Salaam International Airport
  • Zanzibar International Airport
  • Kilimanjaro International Airport (KIA)
  • Namanga Entry Point (Tanzania-Kenya boarder point)

Sources: Government websites, Fitch Solutions, Tanzania Investment Centre

Risks

Sovereign Credit Ratings


 
Rating (Outlook) Rating Date
Moody's
 
B1 (Negative) 02/03/2018
Standard & Poor's Not Rated Not Rated
Fitch Ratings Not Rated Not Rated

Sources: Moody's, Standard & Poor's, Fitch Ratings

Competitiveness and Efficiency Indicators


 
World Ranking
 
2017 2018 2019
Ease of Doing Business Index
 
132/190 137/190 144/190
 
Ease of Paying Taxes Index
 
154/190 154/190 167/190
Logistics Performance Index
 
N/A N/A N/A
Corruption Perception Index
 
103/180 99/180 N/A
IMD World Competitiveness N/A N/A N/A

Sources: World Bank, IMD, Transparency International, Fitch Solutions

Fitch Solutions Risk Indices


 
World Ranking
2017 2018 2019
Economic Risk Index Rank N/A 114/202 111/202
Short-Term Economic Risk Score
 
47.1 47.1
 
45.6
 
Long-Term Economic Risk Score 47.1 49.5 51.0
Political Risk Index Rank N/A 91/202 109/202
Short-Term Political Risk Score 63.8 63.8 63.8
Long-Term Political Risk Score 64.4 64.4 60.5
Operational Risk Index Rank N/A 152/201 154/201
Operational Risk Score 37.3 37 36.5
 

Source: Fitch Solutions

Date last reviewed: April 10, 2019

Fitch Solutions Risk Summary

ECONOMIC RISK

The country's appeal to investors is buoyed by its wealth of natural resources, consistent robust growth and relative political stability. The country further benefits from its membership to the EAC and SADC, while direct port access boosts its profile as a growing regional trade hub. Infrastructure investment and rising consumer demand will spur growth in the construction and consumer retail sectors, boosting economic activity in Tanzania over the medium term, while narrowing fiscal and current account deficits have improved the country's overall economic environment. Despite a slight slowdown over the short term, the country will continue to grow robustly, above the Sub-Saharan regional average growth rates over the medium term thanks to inward FDI flows and robust consumer demand.



OPERATIONAL RISK

Tanzania offers a large labour pool with a low level of labour risk to investors. Benefits include flexibility in hiring and firing workers, a high percentage of women employed in the workforce, and increasing educational attainment levels in the workforce. Due to its strategic location, Tanzania's transport system serves as an important link in regional trade, enabling landlocked neighbours to access maritime trade routes through Tanzania. Over the medium-to-long term, risks presented by the country's transport and utilities logistics will be gradually mitigated by robust investment in infrastructure – particularly in road rail and port developments, as well as new power plants within Tanzania and the wider East Africa region.

Source: Fitch Solutions

Date last reviewed: April 10, 2019

Fitch Solutions Political and Economic Risk Indices

Graph: Tanzania short term political risk index
 
Graph: Tanzania short term political risk index
 
Graph: Tanzania long term political risk index
 
Graph: Tanzania long term political risk index
 
Graph: Tanzania short term economic risk index
 
Graph: Tanzania short term economic risk index
 
Graph: Tanzania long term economic risk index
 
Graph: Tanzania long term economic risk index
 

100 = Lowest risk; 0 = Highest risk

Source: Fitch Solutions Political and Economic Risk Indices

Date last reviewed: April 10, 2019

Fitch Solutions Operational Risk Index


 
Operational Risk Labour Market Risk Trade and Investment Risk Logistics Risk Crime and Security Risk
Tanzania Score 36.5 42.2 37.0
 
33.4 33.5
East Africa average 32.0 39.8 33.0 31.6 23.6
East Africa position (out of 11) 3 5 5
 
5
 
2
SSA average 34.5 38.2
 
34.5 33.3 32.0
SSA position (out of 48) 17 14 16 20 22
Global average 49.7 50.3 49.8 49.0 49.8
Global position (out of 201) 154 149 146 157 151

100 = Lowest risk; 0 = Highest risk

Source: Fitch Solutions Operational Risk Index

Graph: Tanzania vs global and regional averages
 
Graph: Tanzania vs global and regional averages
 
Country
 
Operational Risk Index
 
Labour Market Risk Index
 
Trade and Investment Risk Index Logistics Risk Index Crime and Security Risk Index
Rwanda 49.0
 
48.7 52.7 43.7 50.8
Kenya 41.9 44.7 45.1 52.0 25.8
Tanzania 36.5 42.2 37.0 33.4 33.5
Djibouti 35.4 38.5 42.8 28.5 31.9
Uganda 35.3 44.7 39.2 33.4 24.1
Ethiopia 34.5 42.4 30.5 36.7 28.6
Sudan 26.8 34.6 26.7 29.9 16.1
Burundi 26.7 37.4 25.6 25.2 18.4
Eritrea 24.6 33.2 15.5 30.3 19.4
Somalia 22.7 37.1 28.7 18.1 7.0
South Sudan 18.7 34.0 19.3 16.8 4.5
Regional Averages 32.0 39.8 33.0 31.6 23.6
Emerging Markets Averages 46.0 48.1 46.5 44.7 44.8
Global Markets Averages 49.7 50.3
 
49.8 49.0 49.8
 

 

100 = Lowest risk; 0 = Highest risk

Source: Fitch Solutions Operational Risk Index

Date last reviewed: April 10, 2019

Fitch Solutions Risk Summary

ECONOMIC RISK

The country's appeal to investors is buoyed by its wealth of natural resources, consistent robust growth and relative political stability. The country further benefits from its membership to the EAC and SADC, while direct port access boosts its profile as a growing regional trade hub. Infrastructure investment and rising consumer demand will spur growth in the construction and consumer retail sectors, boosting economic activity in Tanzania over the medium term, while narrowing fiscal and current account deficits have improved the country's overall economic environment. Despite a slight slowdown over the short term, the country will continue to grow robustly, above the Sub-Saharan regional average growth rates over the medium term thanks to inward FDI flows and robust consumer demand.



OPERATIONAL RISK

Tanzania offers a large labour pool with a low level of labour risk to investors. Benefits include flexibility in hiring and firing workers, a high percentage of women employed in the workforce, and increasing educational attainment levels in the workforce. Due to its strategic location, Tanzania's transport system serves as an important link in regional trade, enabling landlocked neighbours to access maritime trade routes through Tanzania. Over the medium-to-long term, risks presented by the country's transport and utilities logistics will be gradually mitigated by robust investment in infrastructure – particularly in road rail and port developments, as well as new power plants within Tanzania and the wider East Africa region.

Source: Fitch Solutions

Date last reviewed: April 10, 2019

Hong Kong Connection

Hong Kong’s Trade with Tanzania

 

Graph: Major export commodities to Tanzania (2018)
 
Graph: Major export commodities to Tanzania (2018)
 
Graph: Major import commodities from Tanzania (2018)
 
Graph: Major import commodities from Tanzania (2018)
 

Note: Graph shows the main Hong Kong exports to/imports from Tanzania (by consignment)

Graph: Merchandise exports to Tanzania
 
Graph: Merchandise exports to Tanzania
 
Graph: Merchandise imports from Tanzania
 
Graph: Merchandise imports from Tanzania
 

Note: Graph shows Hong Kong exports to/imports from Tanzania (by consignment)

Exchange Rate HK$/US$, average

7.75 (2014)

7.75 (2015)

7.76 (2016)

7.79 (2017)

7.83 (2018)

Source: Hong Kong Trade Statistics, Census and Statistics Department

Date last reviewed: April 9, 2019


 
2017
 
Growth rate (%)
 
Number of Tanzanian residents visiting Hong Kong 2,481
 
-24.0
 

Sources: Hong Kong Tourism Board, United Nations Department of Economic and Social Affairs – Population Division, Fitch Solutions


 
2017
 
Growth rate (%)
 
Number of African residents visiting Hong Kong 142,512 -11.6

Sources: Hong Kong Tourism Board, United Nations Department of Economic and Social Affairs – Population Division, Fitch Solutions

Date last reviewed: April 10, 2019

Commercial Presence in Hong Kong


 
2016
 
Growth rate (%)
 
Number of Tanzanian companies in Hong Kong N/A
 
N/A
- Regional headquarters
- Regional offices
- Local offices



Treaties and agreements between Hong Kong/mainland China and Tanzania

Mainland China and Tanzania have a bilateral investment treaty (BIT) that entered into force on April 17, 2014.

Source: UNCTAD Investment Policy Hub

Chamber of Commerce (or Related Organisations) in Hong Kong

Consulate of the Republic of Tanzania in Hong Kong

Address: Room 15, 5/F, Wah Shing Centre, 11 Shing Yip Street, Kwun Tong, Kowloon, Hong Kong

Email: info@tzhonconsulhk.com

Tel: (852) 2763 9020

Source: Hong Kong Protocol Division Government Secretariat

Visa Requirements for Hong Kong Residents

A visa is not required for Hong Kong residents for a stay up to 90 days.

Source: Tanzanian Immigration Authority

Date last reviewed: April 10, 2019

 


 
2017
 
Growth rate (%)
 
Number of Tanzanian residents visiting Hong Kong 2,481
 
-24.0
 

Sources: Hong Kong Tourism Board, United Nations Department of Economic and Social Affairs – Population Division, Fitch Solutions


 
2017
 
Growth rate (%)
 
Number of African residents visiting Hong Kong 142,512 -11.6

Sources: Hong Kong Tourism Board, United Nations Department of Economic and Social Affairs – Population Division, Fitch Solutions

Date last reviewed: April 10, 2019

Image name View