Tanzania moved 12 positions up, from 144 in 2016 to 132 in 2017, in the latest World Bank (WB) Ease of Doing Business report issued in October 2016.
The WB measures the regulations of 190 countries affecting key areas of the life of a business, including getting electricity and getting credit, among others.
The report notes that Tanzania moved 108 positions up, from 152 in 2016 to 44 in 2017, under the “Getting Credit” Indicator.
Furthermore, Tanzania is the best regional performer for Sub-Saharan Africa and 87th in the world under the “Getting Electricity” indicator.
Tanzania Doing Business 2017: Reforms
- The report indicates that Tanzania made the largest improvements by expanding borrower coverage and improved access to credit information by creating credit bureaus. “Tanzania’s credit bureau, Creditinfo, expanded its borrower coverage from 4.97% to 6.48% of the adult population, aided in part by signing agreements with retailers and merchants to share credit data on their customers.”
- Tanzania reduced the time for both exporting and importing goods and services by implementing the Tanzania Customs Integrated System (TANCIS), an online system for downloading and processing customs documents. Tanzania made trading across borders easier by upgrading infrastructure at the port of Dar es Salaam. However, Tanzania made importing more difficult by introducing a requirement to obtain a certificate of conformity before the imported goods are shipped.
- Tanzania made starting a business easier by eliminating the requirement for inspections by health, town and land officers as a prerequisite for a business license.
- Tanzania made resolving insolvency easier through new rules clearly specifying the professional requirements and remuneration for insolvency practitioners, promoting reorganization proceedings and streamlining insolvency proceedings.
- Tanzania made paying taxes more complicated for companies by introducing an excise tax on money transfers.
- Tanzania made dealing with construction permits more expensive by increasing the cost to obtain a building permit.
The WB Doing Business 2017 report is the 14th in a series of annual reports measuring the regulations that enhance business activity and those that constrain it.
The report presents quantitative indicators on business regulations and the protection of property rights that can be compared across 190 economies.
The indicators are used to analyze economic outcomes and identify what reforms of business regulation have worked, where and why.