What You Need to Know
The Parliamentary Standing Committee on Administration, Constitution and Legal Affairs in Tanzania has urged the government to review laws and regulations to create a more business-friendly environment. The committee highlighted the need to merge institutions with overlapping mandates to improve efficiency and encourage investment, addressing persistent regulatory challenges that hinder economic活动
Africa-Press – Tanzania. THE Parliamentary Standing Committee on Administration, Constitution and Legal Affairs has called on the government to review laws and regulations and merge institutions with overlapping mandates to create a more business-friendly and investment-friendly environment.
Presenting the committee’s report in the National Assembly on Thursday, committee member, Ms Zena Katambo said the move is necessary to address persistent regulatory challenges that continue to complicate the ease of doing business in the country.
“Multiple institutions with similar responsibilities, particularly regulatory bodies, have created inefficiencies that discourage investment and slow economic activity,” she said.
Ms Katambo further said that the President’s Office – Planning and Investment has a key responsibility in coordinating reforms aimed at improving the legal and institutional framework. She said a comprehensive review of laws and regulations, alongside consolidation of overlapping institutions, would help streamline operations, reduce bureaucracy and create a more predictable environment for investors.
The committee’s recommendations were part of its report on the implementation of the budget of the President’s Office – Planning and Investment for the 2025/2026 financial year, as well as its views on the revenue and expenditure estimates for the 2026/2027 financial year.
In addition to regulatory reforms, the committee also directed the Government to ensure that funds allocated for development projects in the 2025/2026 financial year are fully disbursed within the remaining implementation period.
“It observed that delays in the release of funds have affected ministries and their institutions, preventing them from executing planned development projects on time,” she said.
The committee further raised concerns over planned special investment agreements in designated areas such as Buzwagi, warning that without strict enforcement, some investors may fail to utilise allocated land as agreed.
“We call on the government to ensure that all investors granted land in Buzwagi and similar investment zones commence their projects within the agreed timelines to avoid underutilisation of resources,” she said.
On the performance of public corporations, the committee urged the Office of the Treasury Registrar to strengthen oversight and ensure that these entities contribute effectively to non-tax revenue.
She said the call follows a noted decline in government revenue generated from the mandatory 15 per cent contribution of gross revenues by public institutions in the 2026/2027 financial year, despite increased projections from other revenue sources.
The committee also advised both the Treasury Registrar and public institutions to allocate funds under contingent liability provisions to cater for unforeseen financial obligations.
“This recommendation comes after instances where the government was forced to cover unexpected costs arising from public entities, including support provided to UDART for the acquisition of new rapid transit buses,” Ms Katambo said.
According to the committee, setting aside such funds within institutional budgets would help reduce pressure on the government and ensure timely response to emergencies or unplanned expenditures.
Furthermore, the committee called on the government to develop and operationalise effective tools for implementing the National Development Vision 2050, noting that proper execution of the vision is essential in delivering long-term socio-economic benefits to citizens.
“There is also a need for a thorough evaluation of ongoing and planned strategic projects across ministries and public institutions to avoid duplication and enhance coordination,” she said.
According to the committee, improved collaboration would ensure value for money and maximise the impact of public investments on national development.
Overall, she said the committee recommends that addressing regulatory inefficiencies, improving financial discipline and strengthening oversight mechanisms are critical steps towards fostering a more competitive and sustainable economic environment.
Tanzania has faced various regulatory challenges that have impacted its investment climate. Over the years, multiple institutions with similar responsibilities have led to inefficiencies, discouraging potential investors. The government has been urged to streamline these processes to enhance the ease of doing business, which is crucial for economic growth and development. The call for reform comes as part of broader efforts to improve the legal and institutional framework governing investments in the country.
