Tanzania

Tanzania’s robust economy reflects its stable political situation. Annual growth rate between 2000 and 2006 averaged 5.8%, one of the best performers in sub-Saharan Africa. Recent banking reforms have helped increase private-sector growth and investment. Continued donor assistance and solid macroeconomic policies supported real GDP growth of 7.1% in 2008.

According to the World Bank, Tanzania ranked as the seventh most popular destination for foreign capital out of the 47 sub-Saharan African countries listed, having attracted over US$2.8 billion of foreign direct investment between 2000 and 2006.

The economy depends heavily on agriculture, which accounts for more than 40% of GDP, provides 85% of exports, and employs 80% of the work force. Topography and climatic conditions, however, limit cultivated crops to only 4% of the land area.

The nation has many resources including gold and natural gas. Whilst there are numerous small alluvial diamond operations in Tanzania, the Williamson mine is the country’s only significant kimberlite mine and accounts for the majority of the country’s diamond production.

In 2008, Tanzania produced 237,675 carats, worth some US$24 million.

Fiscal and mining regime

Company Tax /
Corporate Tax Mining

30%
 

Second Tier Taxes
(Company which made loss
in three consecutive years)

0.3% of total sales revenue
 
 

Mining Royalty Tax

5%

Industrial Tax
(on total sales revenue)

N/A
 

Commercialisation Tax
(Sales Tax)
(on total sales revenue)

Value Added Tax 18%
 
 

Discount to Government
(on total sales revenue)

N/A
 

Rough Diamond Export Levy

N/A

Exploration diamond
export royalty

N/A
 

C&P diamonds valuation
fee on rough

N/A