ll. Findings of the CRM
Business environment
698.
The CSAR contains a fair analysis of the business environment in Tanzania based on survey data from the World
Bank’s Doing Business. However, updated survey results were recently published by the World Bank (Doing
Business 2012). Accordingly, the following analysis is based on updated survey results.
699.
In assessing an economy’s regulatory environment for business, a good starting point is to find out how it
compares with the regulatory environment in other economies. In this regard, the Doing Business Report sheds
light on the ease with which a local entrepreneur in 183 economies can open and run a small to medium-size
business while complying with relevant regulations. The report measures and tracks changes in regulations
affecting 10 areas106 in the life cycle of a business, all of which have corporate governance implications. Table
5.1 below shows Tanzania’s ranking in the 10 areas in the life cycle of a business for the period beginning 2011
and 2012.
Table 5. 1: Tanzania: Overall ‘Ease of Doing Business Rank’ (Out of 183 Economies) and the Ranking by
Each Topic
Topic Rankings
DB 2012
DB 2011
Change in Ranks
Starting a business
123
122
-1
Dealing with construction permits
176
177
+1
Getting electricity
78
80
+2
Registering property
158
155
-3
Getting credit
98
96
-2
Protecting investors
97
93
-4
Paying taxes
129
123
-6
Trading across borders
92
115
+23
Enforcing contracts
36
33
-3
Resolving insolvency
122
120
-2
Source: World Bank, Doing Business 2012.
700.
During regional interactions between the CRM and various stakeholders, it emerged that a majority of
stakeholders were of the view that the major obstacles to starting a business in Tanzania were difficulties in
getting credit from commercial banks owing to high interest rates, onerous collateral requirements, stringent
licensing requirements and poor contract enforcement.
701.
While Tanzania is an average performer in the Doing Business survey, compared to other sub-Saharan African
countries, rankings improved in only 3 out of 10 of the stipulated assessment areas, as demonstrated in Table
5.1. These areas are: “dealing in construction permits”, “getting electricity” and “trading across borders.”
702.
Internationally, Tanzania stands at 123 in the ranking of 183 economies on the ease of starting a business. For
sub-Saharan Africa, the regional average ranking for starting a business and dealing with construction permits
is 123 and 112 respectively.
703.
Access to reliable and affordable electricity is vital for businesses. To counter erratic electricity supply, many
The 10 areas referred to are: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting
investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency.
106
144
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