Creating a Business Enabling Environment for Sustainable Economic Growth

This project aims to create an improved business environment for up to 23 000 firms in Tanzania by addressing the country’s principle constraints to investment productive growth and job creation. IFC will partner with Carleton University’s Centre for Trade Policy and Law (CTPL) and International Program for Development Evaluation Training (IPDET) Mennonite Economic Development Associates (MEDA) and Export Development Canada (EDC). By working with the Government of Tanzania the private sector and Canadian experts the project would reform national business tax and trade regulations in order to improve market access increase trade investment and job creation and enhance private sector competitiveness. These interventions would in turn increase competitiveness and job creation in the agro-processing tourism and extractive sectors in Tanzania and therefore promote sustainable inclusive economic growth and reduce poverty. Project Activities include: (1) Streamlining government procedures related to business licencing and inspection reforms; (2) Training and working with at least 100 officials from the Tanzania Revenue Authority to simplify tax administration including value-added tax refund management revenue collection and regularizing tax incentives; (3) Designing and implementing procedures for the removal of up to 20% of non-tariff barriers to trade such as red tape and customs delays to increase trade volumes and investment in Tanzania; (4) Facilitating public-private dialogue with at least 50 institutions involved in the agro-processing tourism and natural gas sectors to develop supportive policies and establish market links for businesses; (5) Supporting the Ministry of Energy and Minerals and the Office of the Prime Minister to draft regulations and policies to increase local content development in the natural gas sector; (6) Providing support to public and private sector stakeholders to address supply chain bottlenecks including the introduction

The expected intermediate outcomes for this project include: (1) increased competitiveness of businesses in Tanzania; and (2) increased private sector investments and jobs in the agro-processing tourism and gas sectors in Tanzania. These results will contribute to the ultimate outcome of more sustainable and inclusive economic growth for businesses in Tanzania.