President Samia’s first 365 days are a complete success

In her maiden speech, the President highlighted that, Tanzania’s economic growth was 4% as of December 2021 dropping from an average annual growth of 7%. Covid-19 pandemic being a major factor behind this drop. To eradicate poverty, Tanzania’s economy was predicted/projected to grow persistently on average at 8%, said the President. In reaction, the President recognised the role of the Private Sector and called for devotion/allocation of resources, Government’s support to productive sectors and those that generate substantial employment opportunities to Tanzania’s labour force

Consecutively, the President promised to accord favourable environment for the private sector to participate fully in economic activities as the engine of growth. On this, the President said that a lot of concerns relating to the cost of doing business have been raised by the private sector and therefore it was critical to address these challenges if we were to see a vibrant private sector.

Exhaustive implementation of BLUEPRINT for regulatory reforms to improve business environment also featured in her maiden speech. She pointed out those exorbitant costs that are associated with regulatory compliance and multiplicity of agencies needed to be addressed. In order to promote investment in productive sectors, it is imperative to create an incentive package to potential investors. The President mentioned special incentives to strategic investors while maintaining the need to stipulate special criteria to be eligible for such incentives. Restore investors’ confidence by expediting their facilitation procedures including issuance of work permits, land for investment etc.

Strengthening international relations through Ministry of Foreign Affairs. Key Achievements on Employment and Labour The application of Work Permits are now processed online through or This follows the amendments of the Non-Citizens (Employment ) Regulations Act of 2015.

  • The National Social Security Fund (NSSF) offered an amnesty on penalty to employers
    with outstanding arrears of contributions. The exercise ended on 31st January 2022.
  • The Government lowered PAYE rate for tax bracket two from 9% to 8% this being an amendment to the Income Tax Act, CAP 332 and reduction of the tax amounts on other tax brackets
  • Exemption of religious health institutions from Skilled Development Levy;
  • Reduction of the rate of contribution to the Fund applicable to the Private Sector Institutions from 1 percent to 0.6 percent of the total gross monthly salary of employees by amending Workers Compensation Fund Act, Cap. 263

Optimistic future for workers.

President Samia has reduced the Pay as You Earn (PAYE) tax from 9 to 8 percent. The measures to improve workers’ welfare have welcomed a positive impact on socio-economic growth. Employee welfare measures have increased the productivity of businesses and promoted motivation, healthy organizational relations thereby maintaining industrial peace and retaining the employees for a longer duration. This positive trajectory has swiftly restored investors’ confi dence that seemingly had started to wither-out. It is clear the country has set a new set of reforms which seek to accord Private sector competitive business environment and invest ment climate

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