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Full meaning African Union Community of Sahel–Saharan States Common Market for Eastern and Southern Africa Economic Community of West African States Foreign direct investment Gross domestic product Inclining block tariff(s) International Monetary Fund Independent power producer Kilowatt Kilowatt hour Liquid petroleum gas Megawatt Pay as you go Power purchase agreement Private public partnership Standard and Poors Global Ratings Sub-Saharan Africa Transmission and distribution Time of use West African Economic and Monetary Union United Nations Industrial Development Organization Value added tax World Bank Regulatory Indicators for Sustainable Energy General government debt-to-GDP ratio measures the gross debt of the general government as a percentage of GDP. Debt is calculated as the sum of the following liability categories (as applicable): currency and deposits; debt securities, loans; insurance, pensions and standardised guarantee schemes, and other accounts payable. This percentage is calculated from the number of mobile cellular subscriptions per 100 adults. Occasionally a single user will have more than one mobile subscription and so it is possible for this value to exceed 100%. 190 countries ranked This includes all renewable energy sources (solar, wind, small hydro, geothermal and biomass and waste), and excludes large hydro (above 50 MW) and nuclear. Disclosed share of foreign investment in the clean energy sector (of both local and foreign investment in clean energy, this tells us the amount of foreign investment in clean energy). This includes all renewable energy sources (solar, wind, small hydro, geothermal and biomass and waste), and excludes large hydro (above 50 MW) and nuclear. As per the EAC CET 2017 As per the EAC CET 2017 As per the EAC CET 2017. For less common battery technologies the duty is 35% As per The VAT Act of 2006 (Chapter 148) Section 10. All Finance Laws from 2007 to 2019 were also perused to check for any amendments pertaining to wind, solar and batteries to the original VAT Act, and none were found. Complete generating sets must be smaller than 30kW to be exempt. Single components such as blades and controllers of any size are exempt. As per The VAT Act of 2006 (Chapter 148) Section 10. All Finance Laws from 2007 to 2019 were also perused to check for any amendments pertaining to wind, solar and batteries to the original VAT Act, and none were found. As per The VAT Act (Chapter 148) of 2006 Section 10. All Finance Laws from 2007 to 2019 were also perused to check for any amendments pertaining to wind, solar and batteries to the original VAT Act, and none were found. The median time (the value for 50 percent of shipments) from port of discharge to arrival at the consignee. Refers to all types of entry ports. Unit is days. Year is 2018, unless specified otherwise. The real economic growth, or real GDP growth rate, measures economic growth as it relates to the GDP from one period to another, adjusted for inflation, and expressed in real terms as opposed to nominal terms. The real economic growth rate considers inflation in its measurement of economic growth, unlike the nominal GDP growth rate, which does not. 167 countries ranked. Scores are averaged across 2012, 2014, 2016 and 2018 with the last year weighing most of the score. See "Source" below for more details.

The components analysed in the International LPI include:
• The efficiency of customs and border management clearance;
• The quality of transport infrastructure;
• The ease of arranging shipments;
• The quality of logistics services;
• The ability of tracking and tracing;
• The frequency with which shipments reach consignees within expected delivery times.

Overview

Growth in Tanzania’s economy contracted to 5.2% in 2019, down from around 7% for the three previous years. Despite the slow down in national production, per capita gross domestic product (GDP) continues its steady increase, reaching a high of €990 in 2019. Unlike many other countries, levels of national debt have grown at less than 1% of GDP annually since 2015. Moody’s for the first time assigned Tanzania an investment grade rating of B1 in 2018, possibly reflecting increasing investor interest.

Inflation fell by nearly 2% to 3.5% between 2017 and 2018 before stabilising at 3.4% in 2019. The Tanzanian Shilling strengthened slightly against the euro in the period after 2017. It has maintained relative stability in 2019, despite gradually receding in value against the US dollar since 2015.

Foreign investment into Tanzania once again breached the €1 billion mark in 2018, following a reduction of more than 40% between 2015 and 2016. It has yet to reach pre-2016 levels exceeding €1.5 billion annually, however average annual double-digit growth since then is a positive trend. The country’s ease of doing business ranking receded a few places to 144 in 2019, from a high of 131 in 2015. This may however be the result of significant improvement efforts by other countries, rather than an indictment of Tanzania’s business landscape. The country has an agency dedicated to promoting investment, the Tanzania Investment Centre, which offers several support and facilitation services focused on private foreign investment.

In 2017, foreign investment into clean energy constituted only 32% of the €6.2 million total investment in the sector. In 2018, total investment increased to €8.4 million while foreign contribution represented 51%. Annual investment in the sector remains low in comparison to the €23.5 and €64.5 million received in 2014 and 2015 respectively.

Incentives for renewable energy technologies are favourable. Solar panels and wind turbines are exempt from VAT and are not charged any import duty. Batteries, while also exempt from VAT, do incur a 25% import duty on standard batteries and 35% on less common batteries, like some other East African countries.
Regional affiliation
AU, EAC, ICGLR
Official language(s)
English, Swahili
National currency
Tanzanian shilling
Presence of port
Yes
Port of Dar es Salaam
Next planned election and cycle length
2020 - 5 years

Demographics

Population
% urban population of total population
% rural population of total population
Population growth rate
Working age (15-64) share of total population
Working age (15-64)
Rest of population
Urbanisation rate (% urban population growth)

Connectivity

Mobile telecom operators
Airtel
Halotel
Smile
Tigo
TTCL
Vodacom
Zantel
All three connectivity indicators
% penetration of mobile cellular subscriptions
% penetration of mobile money
% population with access to internet

Logistics, Import duties and value added tax

Logistics

Median lead time to import
2018
4 days
Aggregated Logistics Performance Index ranking
2018
67

Import Duties and Value-Added Tax

Import Duties
Solar panels
Wind turbines
Batteries (for renewable energy storage)
VAT
Solar Panels
Wind turbines
Batteries (for renewable energy storage)

Business intelligence

Energy Ranking

Climatescope ranking
2019
37
2018
51
2017
29
2016
19
2015
23
WB RISE ranking
2018
94
2016
63
2014
11

Economy

GDP
Real GDP growth
GDP/capita, real
SSA average
GDP/capita, real
SSA average
GDP/capita, real
Debt to GDP ratio (gross debt)
Inflation rate
Exchange rate
Currency exchange rate vs. EUR and USD
Currency exchange rate vs. EUR
Currency exchange rate vs. USD
Total volume of clean energy investment
% foreign investment in clean energy
2018
51.00%
2017
32.00%
Methodologies
Get to know how this Country Brief was developed
Read more
Contact
Questions or feedback are always welcome
info@get-invest.eu