819. As part of efforts to ‘nurture and develop the informal sector’, the Government of Tanzania formulated the Small and Medium Enterprises Policy (2001-2011) and the Sustainable Industrial Development Policy (2006-2020). Development partners - ILO, UNIDO, and UNDP - also sponsored a Road-Map Study of the Informal Sector in Mainland Tanzania, in 2002. The Study identified key strategies and regulatory constraints on micro and small enterprises. These constraints are being addressed by various government policies including the National Trade Policy and the Sustainable Industrial Development Policy (2001-2011). 820. In Zanzibar, the corporate sector is similarly in its infancy, characterised by small enterprises -mainly sole proprietorships. No further information was given in the CSAR on these charactersitics. 821. The CSAR reveals the existence of a framework (institutional and regulatory) to facilitate the accountability of corporations, their directors and officers in Tanzania. Such accountability is to stakeholders typified by: shareholders; the legal authorities (i.e. the State and her Agencies); the general public which includes the consumer, the community, and the environment. 822. Tanzania’s Companies Act of 2002 makes copious provisions for company accounts and audits. These range from the requirement to keep prescribed books of account to sufficiently show and explain the company’s transactions and to disclose, with reasonable accuracy, the financial position of the company, to the requirement of giving details of its sales and purchases. The Act also imposes a statutory duty on company directors to prepare the director’s report and enjoins directors to observe the duty of good faith and the duty to act in the company’s best interest. These are all covered by Sections 159 to 182 of the Act. Sections 195 to 209 of the Act further impose a duty of disclosure on company directors in situations ranging from payment for loss of office and payment made in connection with the transfer of shares in the company, to details of directors’ interests in contracts. There is, in addition, the requirement of having a register of directors’ shareholding as well as particulars on the company’s accounts, of directors’ salaries, pensions other monetary benefits. 823. Other mechanisms provided in the legal accountability framework include the following: (a) the prescription of Audit Committees for companies. In the case of banks, these committees are to be chaired by a non-executive director in accordance with the 2006 Banking and Financial Institutions Act; (b) the existence of sector-specific supervisory institutions for different categories of companies. Examples include, the Bank of Tanzania (BOT) in the case of banks, and the Tanzania Insurance Regulatory Authority (TIRA) established under the 2009 Insurance Act, for insurance companies. 824. Among the efforts to effectively supervise and monitor insurance companies, the 2009 Insurance Act changed the composition of the board of TIRA. The board now includes professionals from the insurance industry and related sectors, and other institutions related to the insurance sector. This is likely to bring greater professionalism to insurance sector supervision. The 2009 Insurance Act also makes other provisions that further enhance corporate governance in insurance companies. These include the provisions for the establishment of Audit Committees and Investment Committees. There is in addition, the requirement that all insurance companies employ accountants of good standing, registered with the NBAA. The Act also defines persons who do not qualify to be directors of an insurance company. 825. There are other supervisory authorities that apply across the board such as the Business Registration and Licensing Agency (BRELA). In addition, the Capital Markets and Securities Authority (CMSA), as well as the Dar es Salaam Stock Exchange (DSE), have supervisory roles over company accountability in its dealings on the capital market. CMSA requires companies seeking to be listed to disclose their financial standing and regulates companies whose shares are traded on the DSE. The DSE, in turn, regulates financial reporting by listed companies. By virtue of the 1997 CMSA Accounting and Financial Requirements, as amended in 2003, brokers, dealers, and investment advisors are expected to prepare annual financial statements in accordance with the Tanzania Financial Accounting Standards issued by the NBAA, which are in conformity with the International Accounting Standards (IAS). The CSAR notes that the reporting format prescribed by the NBAA is not the same as the IAS, however. It must be noted that the difference in formats does not affect the substance of the report as prescribed standards are maintained. 826. Financial reporting by banks and non-banking financial institutions is regulated by the Bank of Tanzania under the 2006 Banking and Financial Institutions Act and the BOT’S Bank Supervision Regulations. The CSAR notes 166