As the second-largest economy in the EAC, with an estimated population of 53m, Tanzania is one of the biggest consumer markets in the region. Its extractive wealth, favourable climate for agriculture, and natural assets such as Mount Kilimanjaro and the Serengeti National Park have helped it build a relatively high rate of growth over the last decade, averaging 6-7% per year. In 2017 the government…
Beer production is set to expand in Tanzania, with Belgian-Brazilian brewing and beverage giant Anheuser-Busch InBev (AB InBev) set to construct its fifth factory in the country. In late March the Tanzanian President’s Office announced that AB InBev, the main shareholder of Tanzania Breweries (TBL), would start work on the $100m brewery next year. Production is expected to begin in 2020 at the…
Tanzania has historically been an attractive centre for trade due to its strategic location along the continent’s east coast. Today, the country is seen as one of Africa’s most dynamic and diverse markets, and although its economy remains highly dependent on agricultural output, the development of tourism and the discovery of natural gas in recent years should help offset the country’s depen
Long before the arrival of Europeans, the territory where Tanzania lies today was a thriving centre of trade with Arab and Eastern merchants. With the establishment of German East Africa in the 1880s, however, more Western influence started to penetrate the area. In the years that followed independence in 1961, Julius Nyerere, Tanzania’s first president, maintained good relations with the…
The merits of increased cooperation between members of the East African Securities Exchanges Association (EASEA) have long been a topic of discussion within the region’s investment community, with authorities from Tanzania, Rwanda, Kenya and Uganda regularly talking through long-term strategies to develop capacity in their respective markets. However, these discussions have yielded little…
Launched in 2013, the Enterprise Growth Market (EGM) serves a dual purpose. For the Dar es Salaam Stock Exchange (DSE), it acts as a useful feeder to the main board. Companies that cannot meet the listing requirements for the primary market are able to take advantage of the more lenient terms of the EGM, from which they may graduate to the main board after they have grown their capital base…
Tanzania is East Africa’s largest nation and has historically served as a gateway to many of the region’s landlocked states. Following independence in 1961, the country took on a more significant role in the area, becoming an influential mediator in the affairs of neighbouring countries. Today, securing stronger diplomatic and economic ties with its neighbours has become central to Tanzania,…
Widening the tax net is an important part of the government’s attempt to reduce its fiscal deficit and balance the books. Its principal tool in this effort is value-added tax (VAT), which accounted for 63% of consumption taxes in 2013/14, according to the Ministry of Finance and Planning. Adjusting the VAT schedule typically has an immediate impact on government revenue streams. However,…
Brokers have played a dominant role in the distribution of insurance products since the birth of the modern sector. In important lines, such as accident, fire and aviation, they account for over 70% of underwriting activity, according to the Tanzania Insurance Regulatory Authority (TIRA). Many Tanzanian insurers rely on their relationships with local brokers for the bulk of their business,…
The informal sector makes up a large share of activity in most of Africa’s largest economies. The OECD estimates that informal work accounts for two-thirds of non-agricultural employment in sub-Saharan Africa. In the case of Tanzania the figure is even higher, with 76% of the non-agricultural workforce subsisting outside the formal economic framework. There are many benefits of the informal…
