Tanzania Economic Fredoom 6th in Africa in 2023 but Bureaucracy Deters Investment Growth

Tanzania economic freedom score 2023

Tanzania’s economic freedom score is 60.0 in 2023, making it the 83rd freest economy in the world and the 6th in Africa.

The ranking is included in the “Index of Economic Freedom 2023” report by The Heritage Foundation, a comprehensive analysis of the economic freedom and policies of 184 sovereign countries worldwide.

The report assesses factors such as trade, investment, property rights, and government intervention in the economy, evaluating their impact on economic growth and prosperity.

Tanzania Investment Guide 2026 Free Edition

Tanzania’s score is 0.5 points higher than in 2022. Tanzania is ranked 6th out of 47 countries in the Sub-Saharan Africa region, and its overall score is slightly higher than the world average.

“Despite a decade of progress in achieving income growth and reducing poverty, the Tanzanian government seems to lack the strong commitment to further institutional reform needed for long-term economic development,” the report reads.

Also, long-standing structural problems include poor management of public finance and an underdeveloped legal framework that interferes with regulatory efficiency.

Rule of Law

The overall rule of law is weak in Tanzania. The country’s property rights score is below the world average; its judicial effectiveness score is below the world average; and its government integrity score is below the world average.

Government Size

The top individual and corporate tax rates are 30%. The tax burden equals 11.7% of GDP. Three-year government spending and budget balance averages are, respectively, 17.1% and –2.5% of GDP. Public debt equals 40.7% of GDP.

TanzaniaInvest Capital Markets Report Banner

Regulatory Efficiency

The business environment remains hampered by problems in the regulatory framework, although requirements for launching a business are not time-consuming. Labour regulations are not modern and flexible enough to support a vibrant labour market. The lack of market competition hurts monetary stability.

Open Markets

The trade-weighted average tariff rate is 9.7%, and costly nontariff barriers further inhibit trade. Investment regulations are outmoded, and burdensome bureaucracy is an ongoing deterrent to investment growth. A range of commercial credit instruments is available to the private sector.

Want to know more about the Economy in Tanzania? Our free overview of the Tanzania Business and Investment Guide 2026 covers the Economy, plus key sectors and investment opportunities. The complete 141-page edition includes policies, taxation, key regulations, full macroeconomic data, and sources, and is also available at no cost upon completion of a short form.

Download Free OverviewGet the Full Edition for Free
Related Posts
Interview Jana Bricco IMF Resident Representative Tanzania no logo
Read More

Interview with Jana Bricco, New IMF Resident Representative in Tanzania, on Economic Growth, Private Investment, and Needed Reforms

In this exclusive interview with TanzaniaInvest, the new IMF Resident Representative Jana Bricco says Tanzania can sustain growth of around 6% by preserving macroeconomic stability and accelerating reforms supporting private investment, productivity and jobs. She calls for fewer regulatory obstacles, more predictable taxation, faster VAT refunds and better access to finance for businesses and SMEs, and explains how IMF support will evolve following the end of its financing programmes, with the relationship now focused on policy dialogue and capacity development.
Tanzania Qatar Tax Treaty Signature
Read More

Tanzania and Qatar Sign Tax Treaty to Boost Investment

Tanzania and Qatar signed a Double Taxation Agreement (DTA) on 29 September 2026, eliminating double taxation on cross-border income between the two countries. Both countries are now moving toward rapid implementation, aiming to deepen economic cooperation and attract new investment across infrastructure, energy, tourism and financial services.
Samia Suluhu Hassan Tanzania Cabinet reshuffle September 2026
Read More

Tanzania Names New Works, Energy and Legal Affairs Ministers

President Samia Suluhu Hassan reshuffled Tanzania's Cabinet on 27 September 2026, naming new ministers for Works, Energy, and Constitution and Legal Affairs. Four other senior appointments were also announced, including a new Chief Medical Officer and Deputy Permanent Secretary for Finance.