Tanzania’s blueprint for regulatory reforms yields positive results

Dar es Salaam. The implementation of Tanzania’s blueprint for regulatory reforms over the past five years has led to a significant increase in government revenue and notable improvements in the business environment.

This progress was highlighted in the Blueprint for Regulatory Reforms to Improve Investments and Business Environment Impact Assessment Report, 2024, released yesterday.

Since the adoption of the blueprint in 2019, the government has successfully reduced the costs associated with starting and running a business in Tanzania.

The reforms have led to a reduction of 374 fees and charges, easing the process for big businesses and industries, particularly in areas such as port consignment clearance.

Despite the challenges posed by the Covid-19 pandemic, the report reveals that 71 percent of regulatory authorities implementing the blueprint have reported increased annual revenue collections.

For instance, the Tanzania Medicines and Medical Devices Authority (TMDA) abolished 12 fees as part of its reform efforts, resulting in a 69 percent increase in revenue collections—equating to Sh51.9 billion—between 2019/20 and 2022/23.

However, the report also noted some remaining challenges. While there has been a reduction in complaints from the private sector, with only 29 percent of the 14 regulatory authorities assessed in 2022 being labelled as “difficult to deal with,” issues such as unclear fee calculation procedures and problematic inspection timings persist.

Prime Minister Kassim Majaliwa, during the report’s launch in Dar es Salaam on Wednesday emphasized the importance of continued reform and collaboration among regulatory and inspection authorities to eliminate bureaucratic hurdles for investors.

He directed these bodies to expedite amendments to laws and procedures to create a more favorable investment environment.

“The reports and tools being launched today are crucial for strengthening the investment and business environment in the country. They provide guidance, improve procedures, and increase efficiency,” Majaliwa stated.

The Prime Minister also commended institutions such as the Fire and Rescue Force, Occupational Safety and Health Authority (OSHA), and the Tanzania Bureau of Standards (TBS) for their role in reducing business inconveniences. He urged these institutions and local governments to expedite further procedural amendments.

In response to the report, Tanzania Private Sector Foundation (TPSF) Executive Director Raphael Maganga expressed gratitude to the government for its efforts in improving the business climate.

He praised the transparency and effectiveness of the blueprint’s implementation but stressed the need for stable and predictable policies.

He also called for impact assessments of regulations before implementation and urged the government to restore confidence in banking institutions to ensure investor security.

European Union Head of Delegation to Tanzania and the East Africa Community Christine Grau highlighted that the report reflects the government’s commitment to enhancing the business environment.