Tanzania Economy Profile - Doing Business 2019
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Doing Business 2019 Tanzania
Economy Profile
Tanzania
Page 1
Doing Business 2019 Tanzania
Economy Profile of Tanzania
Doing Business 2019 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality
control and safety mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the
electricity supply and the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration
system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as
well as post-filing processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the
legal framework for insolvency
Labor market regulation Flexibility in employment regulation and aspects of job quality
Page 2Doing Business 2019 Tanzania
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected
cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying
to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative
indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit,
protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also
measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market
regulation indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves
as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and
regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve
performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region
and with the 190 economies that Doing Business has ranked.
The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets
and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that
have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the
Russian Federation and the United States) where Doing Business also collected data for the second largest business city. The data for these
11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from
governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving
the regulatory environment for business around the world.
More about Doing Business (PDF, 5MB)
Page 3Doing Business 2019 Tanzania
Ease of Doing Business in DB 2019 Rank
Region Sub-Saharan Africa
190 1
Tanzania
Income Category Low income 144
DB 2019 Ease of doing business score
Population 57,310,019
0 100
City Covered Dar es Salaam 53.63
DB 2019 Ease of Doing Business Score
0 100
70.31: Kenya (Rank: 61)
65.40: Botswana (Rank: 86)
59.59: Malawi (Rank: 111)
55.53: Mozambique (Rank: 135)
53.63: Tanzania (Rank: 144)
51.61: Regional Average (Sub-Saharan Africa)
Note: The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economies
in the Doing Business sample since 2005. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100
represents the best performance. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - Tanzania
1
28
55 60 64
83
82
Rank
109 117
131
136 146
150
163 167
163
183
190
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Ease of Doing Business Score on Doing Business topics - Tanzania
100
80 74.61
72.65
65.00
61.66
Score
60 57.10
50.14 50.85
45.00
39.04
40
20.21
20
0
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Page 4Doing Business 2019 Tanzania
Starting a Business
This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited
liability company to start up and formally operate in each economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has
start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10
and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two
types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the
other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a
business. These scores are the simple average of the scores for each of the component indicators.
The most recent round of data collection for the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally start and formally operate To make the data comparable across economies, several assumptions about the
a company (number) business and the procedures are used. It is assumed that any required information is
readily available and that the entrepreneur will pay no bribes.
• Preregistration (for example, name verification or
reservation, notarization)
The business:
• Registration in the economy’s largest business - Is a limited liability company (or its legal equivalent). If there is more than one type
city
of limited liability company in the economy, the most common among domestic firms
• Postregistration (for example, social security is chosen. Information on the most common form is obtained from incorporation
registration, company seal) lawyers or the statistical office.
- Operates in the economy’s largest business city. For 11 economies the data are
• Obtaining approval from spouse to start a
business or to leave the home to register the also collected for the second largest business city.
company - The entire office space is approximately 929 square meters (10,000 square feet).
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
• Obtaining any gender specific document for has a start-up capital of 10 times income per capita and has a turnover of at least
company registration and operation or national 100 times income per capita.
identification card
- Performs general industrial or commercial activities, such as the production or sale
of goods or services to the public. The business does not perform foreign trade
Time required to complete each procedure
activities and does not handle products subject to a special tax regime, for example,
(calendar days)
liquor or tobacco. It does not use heavily polluting production processes.
• Does not include time spent gathering - Leases the commercial plant or offices and is not a proprietor of real estate and the
information amount of the annual lease for the office space is equivalent to the income per
capita.
• Each procedure starts on a separate day (2
procedures cannot start on the same day) - Does not qualify for investment incentives or any special benefits.
- Has at least 10 and up to 50 employees one month after the commencement of
• Procedures fully completed online are recorded operations, all of whom are domestic nationals.
as ½ day - Has a company deed that is 10 pages long.
• Procedure is considered completed once final
document is received The owners:
• No prior contact with officials - Have reached the legal age of majority. If there is no legal age of majority, they are
assumed to be 30 years old.
Cost required to complete each procedure (% of - Are sane, competent, in good health and have no criminal record.
income per capita) - Are married and the marriage is monogamous and registered with the authorities.
- Where the answer differs according to the legal system applicable to the woman or
• Official costs only, no bribes man in question (as may be the case in economies where there is legal plurality), the
• No professional fees unless services required by answer used will be the one that applies to the majority of the population.
law or commonly used in practice
Paid-in minimum capital (% of income per
capita)
• Funds deposited in a bank or with third party
before registration or up to 3 months after
incorporation
Page 5Doing Business 2019 Tanzania
Starting a Business - Tanzania
Standardized Company
Legal form Private Limited Liability Company
Paid-in minimum capital requirement TZS 0
City Covered Dar es Salaam
Indicator Tanzania Sub-Saharan OECD high Best Regulatory
Africa income Performance
Procedure – Men (number) 10 7.4 4.9 1 (New Zealand)
Time – Men (days) 27.5 23.3 9.3 0.5 (New Zealand)
Cost – Men (% of income per capita) 58.7 44.4 3.1 0.0 (Slovenia)
Procedure – Women (number) 10 7.6 4.9 1 (New Zealand)
Time – Women (days) 27.5 23.4 9.3 0.5 (New Zealand)
Cost – Women (% of income per capita) 58.7 44.4 3.1 0.0 (Slovenia)
Paid-in min. capital (% of income per capita) 0.0 10.0 8.6 0.0 (117 Economies)
Figure – Starting a Business in Tanzania and comparator economies – Ranking and Score
DB 2019 Starting a Business Score
0 100
82.41: Kenya (Rank: 126)
78.52: Regional Average (Sub-Saharan Africa)
77.18: Malawi (Rank: 153)
76.22: Botswana (Rank: 157)
72.65: Tanzania (Rank: 163)
67.56: Mozambique (Rank: 174)
Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores
are the simple average of the scores for each of the component indicators.
Page 6Doing Business 2019 Tanzania
Figure – Starting a Business in Tanzania – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
25
25
Cost (% of income per capita)
20
20
Time (days)
15
15
10
10
5 5
0 0
1 2 3 4 5 6 7 *8 *9 * 10
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 7Doing Business 2019 Tanzania
Details – Starting a Business in Tanzania – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Verify the availability of the proposed company name Less than one day no charge
Agency : Online Registration System, Business Registration and Licensing (online procedure)
Authority (BRELA)
A new company would have a business name and a company name. The
company can have different businesses or projects, which are registered under
the umbrella of the company but can have different names. Prior to registering
the company, the availability of both the company name and business name can
be verified online at https://ors.brela.go.tz/orsreg/searchbusinesspublic.
Once it was verified that the names are not used by existing companies, the
business founders may proceed with the incorporation of the company.
2 Obtain a notarized declaration of compliance 1 day TZS 10,000-50,000
Agency : Notary
Entrepreneurs visit the notary for notarization of the declaration of compliance.
Notaries charge within the range of TZS 10,000-50,000 for notarial services for
normal documents such as form No. 14 b.
3 Apply for company incorporation and obtain the certificate of incorporation 4 days TZS 337,200
Agency : Online Registration System, Business Registration and Licensing
Authority (BRELA)
The company will be registered online through the Online Registration System
(ORS). To apply for a certificate of incorporation, a subscriber, secretary, or a
person named in the articles of association as a director must submit the
following documents:
- 14a (First Directors and Secretary and Intended situation of Registered Office)
- 14b (Declaration of Compliance on Application for the Registration of a
Company)
- The Memorandum and Articles of Association are also filed with the forms.
After the forms are submitted, the registration is usually processed within 3-4
days and an electronic version of the certificate of registration will be provided to
the applicant. The registration number will be the same as the company's tax
identification number. The company registration fees can be paid online and are
as follows (based on share capital):
- Share capital from 20,000 to 1,000,000: TZS 95,000.
- Share capital from 1,000,000 to 5,000,000: TZS 175,000.
- Share capital from 5,000,000 to 20,000,000: TZS 260,000.
- Share capital from 20,000,000 to 50,000,000: TZS 290,000.
- Share capital 50,000,000 and over: TZS 440,000.
- Filing fee: TZS 66,000: 22,000 per document
- Stamp duty fee: Original memorandum and articles of association: TZS 6,200 +
Every additional copy: TZS 5,000.
4 Obtain the taxpayer identification number (TIN) certificate 2 days no charge
Agency : Tanzania Revenue Authority (TRA)
Once the company has been registered, the business founders must apply for
tax registration at the Tanzania Revenue Authority (TRA) and obtain a tax
identification number (TIN). The application for the TIN certificate is made by
filling TIN application forms as follows:
• Application for the company.
• Application for each shareholder/director (in case any director has already
issued with TIN certificates for other purpose, he or she cannot make another
application. The same TIN number will be used).
The application can be submitted online. To complete the tax registration, at least
one of the directors of the company must be physically present at the tax office to
give their fingerprints (biometric data). The applicant must visit TRA offices to
pick up the TIN number in person. The company will be required to declare its
estimated income or turnover for the provision tax assessment for the particular
year. At the TRA office, the tax officer may interview the company
founders/directors and record their business and personal particulars.
Page 8Doing Business 2019 Tanzania
5 Apply for a business license 6 days TZS 400,000
Agency : Ministry of Industy, Trade and Investment (MITI) or the Local
Government Authorities (LGAs)
The business license is either issued by the Ministry of Industy, Trade and
Investment (MITI) or the Local Government Authorities (LGAs), depending on the
nature of business. Together with the application, the following documents must
be submitted:
1) Certificate of incorporation;
2) Memorandum and Articles of Association;
3) Proof of Tanzanian Citizenship;
4) Proof of a suitable company premises;
5) Taxpayer Identification Number (TIN).
The cost of the license depends on the nature of the business, and it usually
varies between TZS 200,000 and TZS 1,000,000. For a medium-scale
manufacturer and seller of goods, the license costs TZS 400,000.
6 Apply for the VAT certificate 4 days no charge
Agency : Tanzania Revenue Authority (TRA)
VAT registration takes 3 to 5 days if the proposed company has over the
threshold income of TZS 100,000,000.
7 Register for the workmen’s compensation insurance 1 day no charge
Agency : Workers Compensation Fund (WCF) and Tanzania Insurance
Regulatory Authority (TIRA)
To register for workers’ compensation insurance, employers must complete the
Workmen’s Compensation Tariff Proposal Form. This form should be completed
once the firm begins hiring employees and just before the firm becomes
operational. However, because the insurance industry is privatized in Tanzania,
employers may opt to take an insurance policy instead of the workmen’s
compensation claims.
8 Register with the Occupational Safety and Health Authority (OSHA) 10 days, TZS 600,000
Agency : Occupational Health and Safety Authority (OSHA) simultaneous
Any person being the owner or occupier of a workplace shall, before operating,
be required to register such factory or work place. Therefore the applicant is
required to complete the application form and provide the company's registration
documents to OSHA. Prior to approving an application OSHA officials visit the
premises for inspection on health and safety.
The application requires the following:
- Name of occupier
- Address
- Nature of work
- Total number of employees
9 Receive inspection from the Occupational Safety and Health Authority 1 day, simultaneous No Charge
(OSHA)
Agency : Occupational Health and Safety Authority (OSHA)
Prior to approving an application for the workplace, OSHA officials visit the
premises for inspection on health and safety. A certificate of registration and
certificate of compliance will only be issued once the OSHA officials are satisfied
that the premises are in safe and good habitable condition.
Obtain Social Security registration number 7 days, no charge
10 Agency : Social Security Regulatory Authority (SSRA) simultaneous
SSRA is the regulatory authority for social security. Every employer in the formal
sector is required to register his/her employees with any of the mandatory
schemes, and it is the right of the employee to choose the mandatory scheme to
register under. These mandatory schemes are established by law and
guaranteed by the Government to provide social security benefits to employees.
They include the National Social Security Fund (NSSF), the Parastatal Pensions
Fund (PPF), the Local Government Authority Provident Fund (LAPF), and the
Government Employees Provident Fund (GEPF).
Takes place simultaneously with previous procedure.
Page 9Doing Business 2019 Tanzania
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all
required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with
Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of
quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of
data collection was completed in May 2018. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
• Submitting all relevant documents and obtaining The construction company (BuildCo):
all necessary clearances, licenses, permits and
certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s
largest business city. For 11 economies the data are also collected for the second
• Submitting all required notifications and receiving largest business city.
all necessary inspections
- Is 100% domestically and privately owned; has five owners, none of whom is a
• Obtaining utility connections for water and legal entity. Has a licensed architect and a licensed engineer, both registered with
sewerage the local association of architects or engineers. BuildCo is not assumed to have any
other employees who are technical or licensed experts, such as geological or
• Registering and selling the warehouse after its
completion topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure upon its completion.
(calendar days)
The warehouse:
• Does not include time spent gathering
information - Will be used for general storage activities, such as storage of books or stationery.
- Will have two stories, both above ground, with a total constructed area of
• Each procedure starts on a separate day— approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
though procedures that can be fully completed
meters (9 feet, 10 inches) high and will be located on a land plot of approximately
online are an exception to this rule
929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
• Procedure is considered completed once final warehouse is valued at 50 times income per capita.
document is received - Will have complete architectural and technical plans prepared by a licensed
architect. If preparation of the plans requires such steps as obtaining further
• No prior contact with officials
documentation or getting prior approvals from external agencies, these are counted
Cost required to complete each procedure (% of as procedures.
income per capita) - Will take 30 weeks to construct (excluding all delays due to administrative and
regulatory requirements).
• Official costs only, no bribes
The water and sewerage connections:
Building quality control index (0-15)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
• Quality of building regulations (0-2) is no water delivery infrastructure in the economy, a borehole will be dug. If there is
• Quality control before construction (0-1) no sewerage infrastructure, a septic tank in the smallest size available will be
installed or built.
• Quality control during construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
• Quality control after construction (0-3) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
• Liability and insurance regimes (0-2) gallons) a day.
• Professional certifications (0-4) - Will have a constant level of water demand and wastewater flow throughout the
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
the sewerage connection.
Page 10Doing Business 2019 Tanzania
Dealing with Construction Permits - Tanzania
Standardized Warehouse
Estimated value of warehouse TZS 103,303,924.80
City Covered Dar es Salaam
Indicator Tanzania Sub-Saharan OECD high Best Regulatory
Africa income Performance
Procedures (number) 24 14.7 12.7 None in 2017/18
Time (days) 184 145.7 153.1 None in 2017/18
Cost (% of warehouse value) 6.0 8.8 1.5 None in 2017/18
Building quality control index (0-15) 12.0 8.5 11.5 15.0 (3 Economies)
Figure – Dealing with Construction Permits in Tanzania and comparator economies – Ranking and Score
DB 2019 Dealing with Construction Permits Score
0 100
76.58: Botswana (Rank: 31)
72.57: Mozambique (Rank: 64)
63.49: Kenya (Rank: 128)
61.17: Malawi (Rank: 136)
58.59: Regional Average (Sub-Saharan Africa)
57.10: Tanzania (Rank: 150)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with
construction permits. These scores are the simple average of the scores for each of the component indicators.
Figure – Dealing with Construction Permits in Tanzania – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)
3.5
180
160 3
Cost (% of warehouse value)
140
2.5
120
Time (days)
2
100
80 1.5
60
1
40
0.5
20
0 0
1 *2 3 *4 5 6 *7 8 *9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 * 24
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 11Doing Business 2019 Tanzania
Figure – Dealing with Construction Permits in Tanzania and comparator economies – Measure of Quality
15
12.0
10.5 11.0
Index score 9.5
10 9.0 8.5
5
0
Tanzania Botswana Kenya Malawi Mozambique Sub-Saharan Africa
Details – Dealing with Construction Permits in Tanzania – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain location plan from City Council - Ministry of Lands 7 days TZS 5,000
Agency : City Council (Ministry of Lands)
BuildCo must write a letter to the City Council and the Ministry of Lands
requesting a block plan, indicating the location of the land, street, ward, city, and
region. If the plots are in an unplanned area, it may take more than 90 days,
since the City Council will need to re-survey the plot and produce the location
plan.
2 Obtain certified copy of the land rent receipts from the Tanzania Revenue 7 days no charge
Authority
Agency : Tanzania Revenue Authority (TRA)
This procedure is done through the Tanzania Revenue Authority (TAR), acting on
behalf of The Ministry of Lands, Housing and Urban Development.
3 Submit project brief and obtain EIA certificate 30 days TZS 70,000
Agency : National Environment Management Council (NEMC)
In accordance with section VI of the Environmental Management Act (2004),
Buildco must submit copies of the project brief, the location plan, engage an
independent expert to prepare EIA/EMP to be submitted to NEMC to obtain the
approval.
4 Obtain project clearance from the Fire Department 21 days TZS 600,000
Agency : Municipal Council - Ministry of Home affairs
One of the requirements to obtain a building permit is to have a clearance from
the Fire Department, which is under the Ministry of Home Affairs. This clearance
will attest that the correct fire fighting tools will be used.
5 Request planning consent from the City Council 20 days no charge
Agency : City Council (Ministry of Lands)
Once the preliminary drawings are completed BuildCo applies for a planning
consent at the Municipal Council.
6 Request and obtain building permit 38 days TZS 1,439,991
Agency : City Council (Ministry of Lands)
The documents required for obtaining a building permit are the following:
• Architectural/engineering drawings and calculations, including site layout and
location plans, elevations, sections of the building including storm water
drainage, fire protection, driveways and parking. All drawings should be signed
by a registered professional architect and all the detailed structural, electrical,
plumbing and engineering installations by a registered professional engineer.
• Title deed showing ownership of land
• Receipts of payments of land rents and other statutory fees, and changes of
land use if any
Four copies of the documents must be submitted to the City Council for planning
approvals. The City Council distributes three copies of the files to the Health
Department, Fire Department, and Planning Department, and retains a copy for
itself. Each of these entities must approve the project. To speed up the approval
process, BuildCo should follow up with each of these departments directly. After
these departments grant their approval, the city engineer approves the plans,
and then the City Council must approve the application. By law the City Council
meets every 3 months, however, to avoid any back log, the City Council is now
meeting on a monthly basis.
The cost of the building permit is TZS 1,200,000 for the first 929.01 sq. m. and
TZS 60,000 for every additional 92.90 sq. m.
Page 12Doing Business 2019 Tanzania
7 Receive pre-construction inspection from the City Council officers 1 day no charge
Agency : City Council (Ministry of Lands)
BuildCo must notify the City Council 7 days before beginning construction, and
within those 7 days City Council officers should perform the inspection. The
municipal team of experts such as structural engineer, drainage engineer,
architect, quantity surveyor, town planner and fire engineer visit the site and
conduct a general inspection.
Following the devastating collapse of a 10-storey building, the regional
directorate of Dar es Salam has undertaken several ad hoc measures to ensure
safety of its citizens, which has led to increased requirements for notification of
commencement of construction works. Now companies have to submit a formal
letter explaining the parameters and specifics of projects. However, it led to a
backlog and delays by 2-3 weeks of inspections that have to approve the site
before works begin.
8 Register project with the Architects Registration Board 7 days no charge
Agency : Architects Registration Board
It is required by law under S.5 (1) (d) and S.34 (5) of the Act. No 4 of 2010 that
Architectural and Quantity Surveying firms register with the Board their
construction projects within 30 days after securing the project and that the
signboard has a valid Board’s logo issued by the Board.
The following documents are required to be submitted which are as follows:
-Consultancy Agreement between architect/Quantity Surveyor and Client
-Approved Building Permit
-Approved Drawings from Municipal Council
-Summary Page of Bills of Quantity signed and stamped by the quantity surveyor
9 Notify the City Council of commencement of work 1 day no charge
Agency : City Council
BuildCo must first notify the City Council of the commencement of work. This is
also needed to register the project with the Engineers Registration Board and the
Contractors Registration Board
10 Register project with the Engineers Registration Board 7 days TZS 1,000,000
Agency : Engineers Registration Board
The engineer who designed the structural plans must register the project with the
Engineers Registration Board. The following documents must be provided:
-Consultancy Agreement
-Structural Drawings
-Building Permit
11 Register project with Contractors' Registration Board 7 days TZS 100,000
Agency : Contractor Registration Board
BuildCo must register the project with the Contractors Registration Board in order
to obtain the sticker which will be fixed on the Board on the construction site.
BuildCo will have to provide a copy of the building permit and the approved
plans. Registration can only be done once the building permit has been approved
and the project has also been registered with all relevant agencies.
12 Request and receive excavation inspection from the City Council officers 1 day no charge
Agency : City Council (Ministry of Lands)
13 Request and receive foundations inspection from the City Council officers 1 day no charge
Agency : City Council (Ministry of Lands)
BuildCo must provide transport to City Council officers to and from the site.
14 Request and receive concrete inspection from the City Council officers 1 day no charge
Agency : City Council (Ministry of Lands)
If the supervising consultants on site are registered engineers, architects or
quantity surveyors, and they have good record of performance, sometimes they
are left to supervise the construction and check the quality and standards without
the City Council conducting an inspection, especially if the Council has a
shortage of technical staff.
15 Request and receive slabs inspection from the City Council officers 1 day no charge
Agency : City Council (Ministry of Lands)
16 Request and receive roof inspection from the City Council officers 1 day no charge
Agency : City Council (Ministry of Lands)
17 Apply for occupancy permit from the City Council 1 day no charge
Agency : City Council (Ministry of Lands)
BuildCo must submit an application to request an Occupancy Certificate along
with the approved plans; the practical completion certificate issued by the
consultants and copies of all stage approval from the Municipal Council during
construction. There will be a site visit from the Municipal building inspectors for
building and fire safety.
Page 13Doing Business 2019 Tanzania
18 Request and receive inspection from the Fire Department once 1 day no charge
construction is completed
Agency : Fire Department
19 Obtain approval of the building from the Fire Department upon completion 14 days no charge
Agency : Fire Department
After receiving the inspection from the Fire Department, BuildCo receives a
certificate from the Fire Department. This certificate is necessary in order to
obtain an occupancy permit from City Council.
20 Receive inspection from the Health Department 1 day no charge
Agency : Health Department
21 Obtain approval of the building from the health department upon 14 days no charge
completion
Agency : Health Department
22 Receive final inspection from the City Council officers 1 day no charge
Agency : City Council (Ministry of Lands)
23 Obtain water and sewage connection from DawasCo 30 days TZS 3,000,000
Agency : DawasCo
Obtain occupancy permit 14 days no charge
24 Agency : City Council (Ministry of Lands)
The following documents must be submitted:
-Building Permit
-Drawings approved by the municipal council
-Stage Approvals of Municipal Council
-Practical Completion Certificate approved by the consultants
Takes place simultaneously with previous procedure.
Page 14Doing Business 2019 Tanzania
Details – Dealing with Construction Permits in Tanzania – Measure of Quality
Answer Score
Building quality control index (0-15) 12.0
Quality of building regulations index (0-2) 2.0
How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0
Free of charge.
Which requirements for obtaining a building permit are clearly specified in the building List of required 1.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid;
Required
preapprovals.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) engineer.
Quality control during construction index (0-3) 2.0
What types of inspections (if any) are required by law to be carried out during construction? Inspections by in- 1.0
(0-2) house engineer;
Inspections at
various phases.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice;
Inspections are
not mandated by
law but
commonly occur
in practice during
construction.
Quality control after construction index (0-3) 3.0
Is there a final inspection required by law to verify that the building was built in accordance Yes, final 2.0
with the approved plans and regulations? (0-2) inspection is
done by
government
agency; Yes, in-
house engineer
submits report for
final inspection;
Final inspection
is not required by
law.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0
always occurs in
practice.
Liability and insurance regimes index (0-2) 0.0
Which parties (if any) are held liable by law for structural flaws or problems in the building No party is held 0.0
once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) liable under the
law.
Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 0.0
structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law
or Decennial Insurance)? (0-1) to obtain
insurance .
Professional certifications index (0-4) 4.0
Page 15Doing Business 2019 Tanzania
What are the qualification requirements for the professional responsible for verifying that the Minimum number 2.0
architectural plans or drawings are in compliance with existing building regulations? (0-2) of years of
experience;
University degree
in architecture or
engineering;
Being a
registered
architect or
engineer;
Passing a
certification
exam.
What are the qualification requirements for the professional who supervises the construction Minimum number 2.0
on the ground? (0-2) of years of
experience;
University degree
in engineering,
construction or
construction
management;
Being a
registered
architect or
engineer;
Passing a
certification
exam.
Page 16Doing Business 2019 Tanzania
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of
tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2018. See the methodology
for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the
(number) warehouse, the electricity connection and the monthly consumption are used.
• Submitting all relevant documents and obtaining The warehouse:
all necessary clearances and permits
- Is owned by a local entrepreneur and is used for storage of goods.
• Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the data are
receiving all necessary inspections
also collected for the second largest business city.
• Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is in an
purchasing material for these works area with no physical constraints. For example, the property is not near a railway.
- Is a new construction and is being connected to electricity for the first time.
• Concluding any necessary supply contract and
- Has two stories with a total surface area of approximately 1,300.6 square meters
obtaining final supply
(14,000 square feet). The plot of land on which it is built is 929 square meters
Time required to complete each procedure (10,000 square feet).
(calendar days)
The electricity connection:
• Is at least 1 calendar day
- Is a permanent one with a three-phase, four-wire Y connection with a subscribed
• Each procedure starts on a separate day capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1
• Does not include time spent gathering kilowatt (kW).
information - Has a length of 150 meters. The connection is to either the low- or medium-voltage
distribution network and is either overhead or underground, whichever is more
• Reflects the time spent in practice, with little common in the area where the warehouse is located and requires works that involve
follow-up and no prior contact with officials
the crossing of a 10-meter road (such as by excavation or overhead lines) but are all
Cost required to complete each procedure (% of carried out on public land. There is no crossing of other owners’ private property
because the warehouse has access to a road.
income per capita)
- Does not require work to install the internal wiring of the warehouse. This has
• Official costs only, no bribes already been completed up to and including the customer’s service panel or
• Value added tax excluded switchboard and the meter base.
The reliability of supply and transparency of The monthly consumption:
tariffs index (0-8)
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00
• Duration and frequency of power outages (0–3) p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that
• Tools to monitor power outages (0–1) there are no electricity cuts (assumed for simplicity reasons) and the monthly energy
consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh.
• Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest
• Regulatory monitoring of utilities’ performance supplier.
(0–1) - Tariffs effective in January of the current year are used for calculation of the price of
electricity for the warehouse. Although January has 31 days, for calculation
• Financial deterrents limiting outages (0–1) purposes only 30 days are used.
• Transparency and accessibility of tariffs (0–1)
Price of electricity (cents per kilowatt-hour)*
• Price based on monthly bill for commercial
warehouse in case study
*Note: Doing Business measures the price of
electricity, but it is not included in the ease of doing
business score nor the ranking on the ease of
getting electricity.
Page 17Doing Business 2019 Tanzania
Getting Electricity - Tanzania
Standardized Connection
Price of electricity (US cents per kWh) 12.3
Name of utility Tanesco
City Covered Dar es Salaam
Indicator Tanzania Sub-Saharan OECD high Best Regulatory
Africa income Performance
Procedures (number) 4 5.2 4.5 3 (25 Economies)
Time (days) 105 112.0 77.2 18 (3 Economies)
Cost (% of income per capita) 775.2 3456.5 64.2 0.0 (3 Economies)
Reliability of supply and transparency of tariff 5 1.6 7.5 8.0 (27 Economies)
index (0-8)
Figure – Getting Electricity in Tanzania and comparator economies – Ranking and Score
DB 2019 Getting Electricity Score
0 100
76.80: Kenya (Rank: 75)
74.61: Tanzania (Rank: 83)
71.02: Mozambique (Rank: 100)
59.43: Botswana (Rank: 133)
49.00: Regional Average (Sub-Saharan Africa)
44.40: Malawi (Rank: 169)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are
the simple average of the scores for all the component indicators except the price of electricity.
Page 18Doing Business 2019 Tanzania
Figure – Getting Electricity in Tanzania – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
900
100
800
Cost (% of income per capita)
80 700
600
Time (days)
60 500
400
40
300
200
20
100
0 0
1 2 3 4
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Figure – Getting Electricity in Tanzania and comparator economies – Measure of Quality
8
7
6
Index score
5
5
4 4
4
3
2 1.6
1
0 0
0
Tanzania Botswana Kenya Malawi Mozambique Sub-Saharan Africa
Page 19Doing Business 2019 Tanzania
Details – Getting Electricity in Tanzania – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Submit application to Tanesco and await estimate 7 calendar days TZS 0
Agency : Tanzania Electric Supply Company Limited - Tanesco
The common practice is to submit the application in person. The following
documents are required for application: passport size photo of the customer,
electrical drawings of the wiring. The documents do not need notarization. The
electrician who did the internal wiring also submits a signed notification that the
internal wiring is done according to safety standards.
2 Receive external inspection by Tanesco 7 calendar days USD 0
Agency : Tanzania Electric Supply Company Limited - Tanesco
An external site inspection is necessary. Someone from the customer’s party has
to be present, in particular the electrician who carried out the wiring works.
Generally the presence of someone from the customer’s party becomes
necessary because most parts of Dar es Salaam have no elaborate road network
and no street names.
3 Purchase transformer and carry out external works 90 calendar days TZS 16,016,746.54
Agency : Electrical Contractor
The customer pays a connection fee which includes a security deposit. The
customer can purchase the material and carries out the external connection
works.
4 Receive internal inspection, meter installation and final connection by 1 calendar day TZS 0
Tanesco
Agency : Tanzania Electric Supply Company Limited - Tanesco
The internal wiring is done by a licensed electrician. The electrician must be
licensed with the Electricity Licensing Board (ELCB) but also work under a firm
registered by the Contractors Registration Board (CRB). The inspection of the
internal wiring is carried out before the final connection by the electricity supplier
(Tanesco). The inspection does not have to be requested. The electrician who
did the internal wiring has to be present during the inspection. The utility does the
final connection and installs the meter.
Takes place simultaneously with previous procedure.
Page 20Doing Business 2019 Tanzania
Details – Getting Electricity in Tanzania – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 5
Total duration and frequency of outages per customer a year (0-3) 0
System average interruption duration index (SAIDI) 20.9
System average interruption frequency index (SAIFI) 46.8
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 4.0
Mechanisms for monitoring outages (0-1) 1
Does the distribution utility use automated tools to monitor outages? Yes
Mechanisms for restoring service (0-1) 1
Does the distribution utility use automated tools to restore service? Yes
Regulatory monitoring (0-1) 1
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of Yes
supply?
Financial deterrents aimed at limiting outages (0-1) 1
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages Yes
exceed a certain cap?
Communication of tariffs and tariff changes (0-1) 1
Are effective tariffs available online? Yes
Link to the website, if available online http://www.tanesco.c
o.tz/index.php/custo
mer-service/tariffs
Are customers notified of a change in tariff ahead of the billing cycle? Yes
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff
index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 21Doing Business 2019 Tanzania
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to
purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land
administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency
of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for
the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the
immovable property (number) parties to the transaction, the property and the procedures are used.
• Preregistration procedures (for example, The parties (buyer and seller):
checking for liens, notarizing sales agreement,
paying property transfer taxes) - Are limited liability companies (or the legal equivalent).
- Are located in the periurban area of the economy’s largest business city. For 11
• Registration procedures in the economy's largest economies the data are also collected for the second largest business city.
business city.
- Are 100% domestically and privately owned.
• Postregistration procedures (for example, filling - Have 50 employees each, all of whom are nationals.
title with municipality) - Perform general commercial activities.
Time required to complete each procedure The property (fully owned by the seller):
(calendar days)
- Has a value of 50 times income per capita, which equals the sale price.
• Does not include time spent gathering - Is fully owned by the seller.
information - Has no mortgages attached and has been under the same ownership for the past
• Each procedure starts on a separate day - 10 years.
though procedures that can be fully completed - Is registered in the land registry or cadastre, or both, and is free of title disputes.
online are an exception to this rule - Is located in a periurban commercial zone, and no rezoning is required.
- Consists of land and a building. The land area is 557.4 square meters (6,000
• Procedure is considered completed once final square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
document is received
located on the land. The warehouse is 10 years old, is in good condition, has no
• No prior contact with officials heating system and complies with all safety standards, building codes and legal
requirements. The property, consisting of land and building, will be transferred in its
Cost required to complete each procedure (% of entirety.
property value) - Will not be subject to renovations or additional construction following the purchase.
- Has no trees, natural water sources, natural reserves or historical monuments of
• Official costs only (such as administrative fees,
duties and taxes). any kind.
- Will not be used for special purposes, and no special permits, such as for
• Value Added Tax, Capital Gains Tax and illicit residential use, industrial plants, waste storage or certain types of agricultural
payments are excluded activities, are required.
- Has no occupants, and no other party holds a legal interest in it.
Quality of land administration index (0-30)
• Reliability of infrastructure index (0-8)
• Transparency of information index (0–6)
• Geographic coverage index (0–8)
• Land dispute resolution index (0–8)
• Equal access to property rights index (-2–0)
Page 22Doing Business 2019 Tanzania
Registering Property - Tanzania
Indicator Tanzania Sub-Saharan OECD high Best Regulatory
Africa income Performance
Procedures (number) 8 6.2 4.7 1 (4 Economies)
Time (days) 67 53.9 20.1 1 (New Zealand)
Cost (% of property value) 5.2 7.6 4.2 0.0 (Saudi Arabia)
Quality of the land administration index (0-30) 7.5 8.8 23.0 None in 2017/18
Figure – Registering Property in Tanzania and comparator economies – Ranking and Score
DB 2019 Registering Property Score
0 100
65.43: Botswana (Rank: 80)
65.12: Malawi (Rank: 83)
55.97: Kenya (Rank: 122)
52.94: Mozambique (Rank: 133)
52.62: Regional Average (Sub-Saharan Africa)
50.14: Tanzania (Rank: 146)
Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These
scores are the simple average of the scores for each of the component indicators.
Figure – Registering Property in Tanzania – Procedure, Time and Cost
Time (days) Cost (% of property value)
3.5
60
3
Cost (% of property value)
50
2.5
Time (days)
40
2
30 1.5
20 1
10 0.5
0 0
1 *2 *3 4 5 6 7 8
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 23Doing Business 2019 Tanzania
Figure – Registering Property in Tanzania and comparator economies – Measure of Quality
30
25
Index score
20
16.0
15
10.0 10.5
10 8.8
7.5 7.5
5
0
Tanzania Botswana Kenya Malawi Mozambique Sub-Saharan Africa
Details – Registering Property in Tanzania – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain an official search at the Land Registry 7 days TZS 40,000
Agency : Registry of Titles
The seller must conduct a search of any encumbrance before starting the
transaction formally. The document obtained does not necessarily show all the
owners of the property in the last 10 years. In practice, the buyer conducts the
search to obtain confirmation of the ownership status and encumbrances
registered on the property.
2 Submit application letter to obtain evaluation at Ministry of Lands or Local 7 days TZS 139,760.3; (The
Government Authority official valuation fee
Agency : Ministry of Lands or Local Government Authority is calculated by using
The seller can request the valuation report at the Ministry of Lands. The valuation
the following formula:
report will be prepared by the Ministry of Lands or Local Government Authority
(Property Value –
(valuation department) and sent to a government valuer for approval.
200,000) *
Regardless, final approval must be given by the Chief Government Valuer. It
does not necessarily include or reflect cadastral value of the property. Valuation (1.25/1,000) + 550 +
of the property is for purposes of ascertaining stamp duty and Capital Gains Tax. valuation approval
fee of 0.01% of
The documentation shall include: property value)
• Property title issued by the Land Office and/or Land Registry
• Cadastral map/plan of the property prepared by an architect if it is a lease of
part of the property such as a flat in a block building
3 Obtain land rent clearance from the Land Ministry showing payment of 1 day no charge
rents
Agency : Land Ministry or Local Government Authority
The seller is required to obtain a land rent clearance from the Land Ministry,
showing that all land rents have been paid
4 A government valuer inspects the property to confirm its value 7 days Paid in Procedure 2
Agency : Ministry of Lands
A government surveyor must determine the value of the property and, where
necessary, establish a cadastral value and prepare a cadastral plan. In certain
instances, the Chief Government Surveyor may inspect the property valued to
confirm that the valuation report accurately reflects the correct property value.
The valuation report must be approved by the Chief Government Surveyor.
5 Notarization and execution of the sale agreement and preparation of the 1 day TZS 3,099,117.74;
transfer deed (Approximately 3% of
Agency : Ministry of Lands or Private Advocate property value)
A lawyer usually prepares and notarizes the sale agreement, and prepares the
transfer deed, which takes about two days. Notarization of the sale agreement is
mandatory. The process can be delayed if the seller fails to provide all the
necessary documents for the preparation of the sale agreement and transfer
deed. The process can also be delayed if the parties take a long time to
negotiate and execute the documents. The cost of preparation is officially 3%,
however this is negotiable with the lawyers involved.
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