II. Findings of the CRM
679.
The CRM notes with satisfaction that Tanzania ratified and adopted the most significant international standard and
codes listed under the APRM structure (as listed in the summary of the CSAR) which set up agreed benchmarks
for good conduct and practice in corporate governance. However, the CRM was unable to confirm the extent to
which some of these standards were applied, namely, the Core of Good Practices on Fiscal Transparency, Core
Principles for Effective Banking Supervision, and Best Practices for Budget Transparency in the area of corporate
governance.
680.
Accordingly, the CRM observes that addressing some corporate governance challenges require close collaboration
between the Government of Tanzania and the private sector. In particular, the application of corporate governance
standards beyond listed companies and the need to improve the capacity of regulators and supervisors to
effectively enforce adopted standards and codes.
681.
The CRM found that domestic regulatory and legal instruments such as the Companies Act, Cap 212 of 2002
- the overall framework for establishing, operating and winding up privately owned companies in Tanzania - is
in conformity with international practice. The institution responsible for administering this law is the Business
Registration and Licensing Authority (BRELA) for Mainland Tanzania and the Registrar General for Zanzibar.
The banking and financial institutions regulatory framework
682.
Legal and regulatory frameworks for banking and financial institutions operate through various instruments.
Enforced by the Bank of Tanzania, unless otherwise indicated, these include: the Bank of Tanzania Act of 2006,
the 2006 Banking and Financial Institutions Act; the Cooperative Societies Act of 1991, enforced by the Registrar
of Cooperatives; the 2005 Microfinance and Micro-Credit Activities Regulations; the 2005 Financial Cooperative
Societies Regulation; and, the 2005 SACCOs Regulations, enforced by the Registrar of Cooperatives.
683.
With regard to accounting, auditing and disclosure laws and standards, the CRM notes that the International
Accounting Standards (IAS) - issued by the International Accounting Standards Board (IASB) - constitute the
contemporary best practice framework for accounting. The corresponding framework in auditing is the
International Standards on Auditing (ISAs), issued by the International Federation of Accountants (IFAC). In Africa,
the promotion and coordination of best practices in accounting and auditing is spearheaded by ECSAFA (the
Eastern, Central and Southern Federation of Accountants) of which Tanzania is a full member. Evidence collected
by the CRM also demonstrates that the above accounting and auditing guidelines have been mandatory for
Tanzanian listed and non-listed companies since 2004.
Labour laws and standards
684.
At the international level, the ILO formulates international labor standards in the form of conventions and
recommendations setting minimum standards for basic labor rights that member countries are supposed to
ratify and implement. Some of ILO’s fundamental conventions are freedom of association, the right to organise,
the right to collective bargaining, abolition of forced labor, equality of opportunity (employment and occupation)
and treatment (equal remuneration), and abolition of child labor.
685.
Tanzania has ratified the Freedom of Association and Rights to Collective Bargaining Convention that provides for
workers to form and join unions. The Employment and Labour Relations Act No 6, 2007 permits workers to form
unions voluntarily without requiring membership in an umbrella organization. There were a total of 12 unions
operating in the country as of 2003, including the teacher’s union,- the largest and most active - as well as health
workers’ unions and other job-specific groups. The Trade Union Congress of Tanzania is the coordinating union
umbrella group.
686.
Tanzania has also ratified the Minimum Age Convention protecting children from child labour. In this regard
Tanzania has developed strategies for elimination of child labour and listed hazardous types of labour not to be
performed by children under 18 years, consistent with ILO convection No. 182 of 1999. However, the law does
not apply to children working on family farms or herding domestic livestock. Tanzania also ratified the workman’s
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