Why doing business in Tanzania is tough!!!!!!!

Tanzania, the second largest economy in East Africa, has been ranked fourth behind Rwanda, Kenya and Uganda in the Doing Business in the East African Community 2011 report launched in Arusha yesterday.
According to the Doing Business Report 2011, East African countries implemented eight reforms – three carried out in Rwanda, two each in Kenya and Uganda and one in Burundi.No reform on trade regulation was carried out in Tanzania during the period.This brings to 54 the total number of trade-related reforms aimed at enhancing business regulatory environment in the EA region. The regional bloc had an average ranking of 117, one place down the previous year’s ranking, according to the report by the World Bank, which took a detailed look at business regulations in the five EAC member countries.

Rwanda emerged the first among the five partner states in the 10 indicators used to rank 183 countries globally in business facilitation followed by Kenya and Uganda while Burundi was placed bottom, a ranking largely attributed to persistent civil strife. Globally, Tanzania is ranked 128, Burundi (181), Rwanda (58), Uganda 122 and Kenya 98, and, compared with its partner states, did poorly in dealing with construction permits and registering property, where it is ranked 179 and 151, respectively.

Tanzania is placed 128th in ease of doing business behind Rwanda (58), Kenya (98) and Uganda (122), but ahead of Burundi (182).However, Tanzania beat all the other EAC states in enforcing contracts after it was placed 32nd globally followed by Rwanda (39), 125 (Kenya), 113 (Uganda) and Burundi (171). It is also ahead in the bloc in the trading across borders indicator in which it is placed 109th followed by Kenya (144), Uganda (148), Rwanda (159) and Burundi (176).
The country also performed well in the starting a business category, taking second place regionally behind Rwanda.  Tanzania has been ranked 122nd globally ahead of Kenya (125), Uganda (135) and Burundi (137). Rwanda is ranked ninth globally and first in East Africa.

Tanzania was fourth regionally in the getting credit category after it was placed 89th globally, with Burundi being ranked fifth in East Africa after taking 168th spot globally.

In protecting investors, Tanzania tied with Kenya on 93rd spot globally behind Rwanda (28), while the country is ranked 120th on the paying tax indicator ahead of Kenya (162) and Burundi (141). Rwanda and Uganda are placed 43rd and 62nd, respectively.

The report said despite the progress made in the EAC integration, especially since the Common Market Protocol came into effect in July 2010, serious obstacles to entrepreneurial activity remained, adding that reforming business regulations can help to accelerate private sector growth.