Tanzania has attracted a number of our clients, having had relative political stability since introducing multi-party politics in 1992. Tanzania’s tourism and natural gas sectors are looking hot for investment opportunities over the coming years. The country’s business environment could become significantly more attractive, with more deregulation of state-controlled sectors, along with a reduction in red tape.

We ensure our clients make sound business decisions in Tanzania, using our risk-assessed total analysis model. Our research teams keep our clients informed of the latest market moves and political developments as part of our 'top-down' and 'bottom-up' perspective. Our expert views are supported by our interactive data and forecasting. We also provide in-depth analysis on 11 of Tanzania’s most important industries. Our expert insight will help you to tackle Tanzania with ease.

Country Risk

Tanzania Country Risk

Tanzania Operational Risk Coverage (9)

Tanzania Operational Risk

BMI View:

Tanzania offers a generally low level of risk throughout the categories of trade and investment, crime and security, labour and logistics capabilities. Notable advantages include a large workforce with basic literacy and numeracy skills, a competitive port system that serves as a regional trade hub, a low likelihood of interstate conflict, and an increasingly liberalised trade, economic and financial environment that has facilitated significant inflows of foreign and portfolio investment. However, pervasive corruption poses risk to businesses in forms as varied as an inefficient and unreliable legal system and a varying level of government accountability and transparency. As a result of these factors, BMI awards Tanzania a score of 39.6 out of 100 for Operational Risk.

Tanzania offers investors and businesses a variety of advantages and disadvantages within its logistics capabilities. Due to its strategic location,...

To read the full article Register for Free or Login

Tanzania Crime & Security

BMI View:

Tanzania's most significant security threat stems from its high crime rates and its corrupt and inadequate police force; while petty crime occurs most frequently, businesses face an increased risk of violent crime, as well as cybercrime and maritime piracy. The threat of domestic terrorism remains limited; however, regional terrorist groups have conducted a number of notable attacks in East Africa in the last few years, exposing businesses to the potential for significant property damage and injury to or loss of personnel. Tanzania's interstate security risks present the lowest level of risk. With a low likelihood of outright conflict and relatively good military capabilities, firms face limited potential for disruptions in their operating environment. As a result of these factors, Tanzania receives a score of 39.6 out of 100 for Crime & Security Risk, placing 20th in Sub-Saharan Africa regionally, between safer neighbours such as Zambia (seventh) and Malawi (...

To read the full article Register for Free or Login

Tanzania Labour Market

BMI View:

With one of the most competitive labour markets in Sub-Saharan Africa, Tanzania offers a low level of labour risk to investors and businesses. Benefits include flexibility in hiring and firing workers, a high percentage of working age citizens and women employed in the workforce, and one of the highest primary education net enrolment rates in Africa. However, businesses face a moderate level of risk in the country's educational sector. Despite rapid growth in enrolment rates as well as educational facilities, a scarcity of state funding has constrained the development of secondary and tertiary education, resulting in a limited supply of high skilled and technical labourers. As a result of these factors, BMI has awarded Tanzania a score of 46.5 out of 100 for Labour Risk, ranking the country eighth regionally.

Although Tanzania has experienced significant growth in the country's secondary and tertiary educational...

To read the full article Register for Free or Login

Tanzania Logistics

BMI View:

As one of BMI's 10 African Lions, Tanzania offers a vast number of growth opportunities for investors across a number of different industries. For some sectors, however, the logistics risk associated with Tanzania will be too costly and will thus impede expansion plans. An underperforming transport network that is plagued by congestion, as well as water and electricity shortages, will deter some investors, but a competitive trade procedures system, coupled with the rewards on offer, will ensure that some companies will be prepared to make the outlay required to mitigate risks. BMI therefore scores Tanzania 33.1 out of 100 in our Logistics Risk Index, ranking Tanzania 28th out of 44 states in Sub-Saharan Africa (SSA) and 145th globally.

Tanzania offers investors a number of opportunities in terms of its developing oil and gas, mining and tourism sectors. Though the country has experienced slow...

To read the full article Register for Free or Login

Tanzania Trade & Investment

BMI View:

Tanzania offers a number of strategic advantages to investors and businesses, including a relatively low level of legal risk, a declining level of government intervention and increasing economic openness. However, firms continue to face challenges in the form of non-tariff trade barriers, widespread corruption and difficulty competing with public sector firms in key economic sectors. As a result, Tanzania receives a score of 39.2 out of 100 for Trade and Investment Risk, ranking 13th regionally after neighbouring Zambia (eighth), Rwanda (ninth) and Mozambique (11th).

Despite Tanzania's high level of corruption, the country's legal environment offers the lowest level of risk to investors, and it receives a Legal score of 39.6 out of 100 and a rank of 11th regionally. Benefits include a relatively well-developed regulatory framework for ICT-related issues and sophisticated e-governance capabilities by regional standards, as well as a strong...

To read the full article Register for Free or Login

Tanzania Industry Coverage (13)

Agribusiness

Tanzania Agribusiness

BMI View:

BMI View: We continue to favour the Tanzanian coffee industry over the medium term owing to the potential for growth on the back of strong investment in capacity. The grain industry in Tanzania will remain less competitive than in other countries in the region, particularly South Africa and Zambia, and we see little potential for the country to become a major grain exporter. The country's sugar sector will see limited production growth over the next few years, due to low sugar prices and Tanzania's lower productivity than many of its regional neighbours.

Agribusiness Market Value
BMI Market Value By Commodity (2011-2019)
...

To read the full article Register for Free or Login

Autos

Tanzania Autos

BMI View:

We are revising our forecast for 2015 up to 15% after a strong sales performance in 2014. The latest data available for 2014 indicates that sales of brand new light vehicles increased 82.2% in 2014 . BMI attributes this growth to improvements in dealership networks and steady growth in private consumption in the country. We predict steady growth in new light vehicle sales from 2016 to 2019, averaging 7.6%. However, we stress that owing to the markets erratic growth, low numbers of total sales, and limited availability of data these numbers may be subject to revision over 2015. Even with this growth, we believe that only 10,833 new light vehicles will be sold in the country that year.

When compared with a population of some 49.3mn, it is clear that new cars will remain unaffordable to the vast majority of Tanzanians for many years and that used cars will continue to be the more significant market. In light of this,...

To read the full article Register for Free or Login

Commercial Banking

Tanzania Commercial Banking

BMI View:

...
Commercial Banking Sector Indicators
Date Total assets Client loans Bond portfolio Other Liabilities and capital Capital Client deposits

To read the full article Register for Free or Login

Food & Drink

Tanzania Food & Drink

BMI View:

BMI View: We hold a positive view on the growth in Tanzania's consumer sector. The economy is growing rapidly, while investment into a number of fast-moving consumer good sectors continues to pick up as the middle class population rises. Tanzania's population (more than 45mn) and bright economic outlook make it one of the most promising opportunities for consumer goods companies in East and Southern Africa over the next few years.

Headline Industry Data

  • Per capita food consumption in local currency terms is forecast to increase by 8.4% in 2015. Between 2014 and 2019, compound annual growth of 9.4% is forecast.

  • Food...

To read the full article Register for Free or Login

Freight Transport

Tanzania Freight Transport

BMI View:

BMI View: Tanzania's various freight sectors will see steady growth over the next few years, between 2015 and 2019. The strongest growth will be in the maritime freight sector, however air and rail freight will also see good growth, of around 3.5% and 3.2% annually (though this is largely due to the low starting base and will continue to be constrained by inadequate infrastructure over the medium term). Road freight will see the lowest growth rate, at just 1.2% a year through till 2019, however this is because road freight is already the single largest logistics sector in the country, and the one which benefits the most from the vast volumes of trans-regional trade, as well as the large agricultural tonnage needing transportation. We expect road freight will continue to dominate the freight sector, and account for the largest tonnage, however as Tanzania's role as a regional transport hub expands, and additional ports...

To read the full article Register for Free or Login

Infrastructure

Tanzania Infrastructure

BMI View:

BMI View : Tanzania's construction industry faces slow development in 2015 but strong government support looks set to deliver growth of 9.9% this year. Investment surrounding the country's gas industry, particularly from China, will continue to support growth over the long-term. Government plans to float a USD1bn Eurobond will help buoy investment in new ports, railways and, above all, power infrastructure - contributing to average real growth of 9.5% per annum during 2015-2019.

There are number of key developments, which underpin our upbeat...

To read the full article Register for Free or Login

Insurance

Tanzania Insurance

BMI View:

BMI View: Non-life business dominates the Tanzanian insurance industry landscape, capturing almost 90% of total industry premiums. Motor insurance is the largest part of this and will remain so, but health insurance shows the greatest promise over the next five to ten years, growing by around 16% annually. The underdeveloped life sector will grow rapidly, but from a very low base; per capita premiums in 2015 will reach just USD0.80.

Life insurance in Tanzania is small by any standards, with premiums in 2015 of just USD42mn, only USD0.80 per capita. This also equates to insurance penetration of under 0.11% of GDP, a figure that will grow only slowly to 2019, reaching 0.13%. By 2019, premiums will have only reached USD68mn, or TZS139bn. This represents strong growth of around 17% annually, in local currency terms, albeit from a low base. The sector...

To read the full article Register for Free or Login

Mining

Tanzania Mining

BMI View:

BMI View: Tanzania's mining industry will see further contraction over the coming five years, largely due to weak global gold prices which will discourage production growth. Over the longer term, various miners are looking to invest in the country's nickel, coal, and uranium resources.

Despite Tanzania's significant deposits of coal, cobalt, copper, diamonds, gold, nickel, silver and uranium, we forecast the country's mining sector will contract to 2019 on the back of lower average annual gold prices. Over our forecast period to...

To read the full article Register for Free or Login

Oil & Gas

Tanzania Oil & Gas

BMI View:

BMI View: Development of a more stable and transparent fiscal and regulatory regime will increase in importance, as lower crude oil prices see major oil companies claw back on exploration and development spending globally. Falling liquefied natural gas (LNG) prices and a looser LNG market will put further downside pressure on the Tanzania LNG project, with risks to first production by 2022.

...
Headline Forecasts (Tanzania 2013-2019)
2013 2014e

To read the full article Register for Free or Login

Pharmaceuticals & Healthcare

Tanzania Pharmaceuticals & Healthcare

BMI View:

BMI View: Tanzania's pharmaceutical market will continue to see growth with the continuing expansion of the country's National Health Insurance Fund. We highlight opportunities in the Tanzanian healthcare market which have come about thanks to the government's plans to introduce compulsory health insurance for households and its commitment to expanding healthcare coverage in underserved areas.

Headline Expenditure Projections

  • Pharmaceuticals: TZS797bn (...

To read the full article Register for Free or Login

Power

Tanzania Power

BMI View:

BMI View: The outlook for Tanzania's power sector is good. The government has responded to a massive increase in the demand for electricity by opening up the sector to private investment and allowing foreign companies to develop the generation, transmission and distribution of electricity. Accordingly, thermal and renewable energy will enjoy strong growth over the forecast period. Meanwhile, the government is rapidly expanding the transmission network and access to the grid. However, macroeconomic stability, as well as a hostile commercial environment, will limit market opportunities.

The focus of modernisation is broad and thermal...

To read the full article Register for Free or Login

Shipping

Tanzania Shipping

BMI View:

BMI View: Should all the proposed expansions and additions come to fruition, Tanzania will continue to benefit from its ideal location as a gateway for the East Africa Community (EAC). The merits of its location can be seen in the consistent upwards trajectory of container and bulk throughputs at the port of Dar es Salaam, with double-digit year-on-year growth rates, which we anticipate to continue, albeit at a slower rate as additional Tanzanian ports evolve and siphon off some market share.

At present, although we expect continued growth in Dar es Salaam tonnage and container throughput, this growth will slow due to the rising level...

To read the full article Register for Free or Login

Telecommunications

Tanzania Telecommunications