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Ease of Doing Business in

Tanzania

Tanzania Download Profile (1749.2KB, pdf)
Region Sub-Saharan Africa
Income Category Low income
Population 53,470,420
GNI Per Capita (US$) 910
City covered Dar es Salaam

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 132 144 up
12
54.48 50.59 down
3.89
Starting a Business 135 127 down
8
79.14 78.93 up
0.21
Dealing with Construction Permits 136 139 up
3
61.69 61.19 up
0.50
Getting Electricity 87 83 down
4
70.52 70.29 up
0.23
Registering Property 132 133 up
1
51.37 51.37
-
Getting Credit 44 152 up
108
65.00 25.00 up
40.00
Protecting Minority Investors 145 145
-
40.00 40.00
-
Paying Taxes 154 146 down
8
54.13 56.27 down
2.14
Trading across Borders 180 180
-
20.21 20.21
-
Enforcing Contracts 59 60 up
1
61.66 61.66
-
Resolving Insolvency 100 98 down
2
41.04 41.01 up
0.03

Positive=Doing Business reform making it easier to do business. Negative=Change making it more difficult to do business.

DB 2017 Rank: 100

DB 2016 Rank: 98

Change in Rank: down2

DB 2017 DTF (% points): 41.04

DB 2016 DTF (% points): 41.01

Change in DTF (% points): up0.03

Indicator Tanzania Sub-Saharan Africa OECD high income
Recovery rate (cents on the dollar) info_outline 21.1 20.1 73.0
Time (years) info_outline 3.0 2.2 1.7
Cost (% of estate) info_outline 22.0 18.0 9.1
Outcome (0 as piecemeal sale and 1 as going concern) info_outline 0.0 0 1
Strength of insolvency framework index (0-16) info_outline 9.5 6.2 12.1
  • Indicator Explanation Answer
    Recovery rate (cents on the dollar) 21.1
    Proceeding It would be in Bizbank's best interests to start a receivership proceeding (Section 405(c) of the Companies Act 2002) under the mortgage with a view to ultimately securing the sale of Mirage in order to recoup Bizbank's loan. receivership
    Outcome The hotel will stop operating and Mirage assets will be sold piecemeal by the BizBank appointed receiver as based on the current market, it is hard to sell the business as a going concern. piecemeal sale
    Time (in years) The receivership procedure takes approximate 3 years until BizBank is repaid some or all of the money owed to it. The delay is largely due to the possible delaying tactics adopted by Mirage. When the BizBank appointed administrative receiver tries to sell the assets, it is likely that Mirage would file for an injunction at the commercial division of the high court where no exclusive jurisdiction exists to deal with the insolvency case. Then pre-conference trial will set up the speedy track and the mediation period which takes about 3 months. After mediation elapses, a final pre-trial conference (1 month) is established. This follows the first hearing until the final judgment, and the whole process take approximate 2 years taking into consideration of adjournments and possible delaying tactics. Execution order will be granted by the court after 30 days granted to the losing party to appeal have elapsed, and the execution proceedings will take approximately 2 months until BizBank receives the sale proceeds. 3.0
    Cost (% of estate) The costs associated with the case would amount to approximately 22% of the value of the debtor's estate. Cost incurred during the entire insolvency process mainly include court or government agency fees 3%), attorney fees (3%), insolvency representative or receiver fees(3%), fees of accountants, assessors, inspectors and other professionals (3%), fees of auctioneers (7%), and fees of service providers and/or government levies (2%). 22.0
    Answer Score
    Strength of insolvency framework index (0-16) 9.5
    Commencement of proceedings index (0-3) 3.0
    What procedures are available to a DEBTOR when commencing insolvency proceedings? (a) Debtor may file for both liquidation and reorganization 1.0
    Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor? (a) Yes, a creditor may file for both liquidation and reorganization 1.0
    What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? (c) Both (a) and (b) options are available, but only one of them needs to be complied with 1.0
    Management of debtor's assets index (0-6) 4.0
    Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the debtor? No 0.0
    Does the insolvency framework allow the rejection by the debtor of overly burdensome contracts? Yes 1.0
    Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0
    Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0
    Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of insolvency proceedings? Yes 1.0
    Does the insolvency framework assign priority to post-commencement credit? (c) No priority is assigned to post-commencement creditors 0.0
    Reorganization proceedings index (0-3) 0.5
    Which creditors vote on the proposed reorganization plan? (a) All creditors 0.5
    Does the insolvency framework require that dissenting creditors in reorganization receive at least as much as what they would obtain in a liquidation? No 0.0
    Are the creditors devided into classes for the purposes of voting on the reorganization plan, does each class vote separately and are creditors in the same class treated equally? No 0.0
    Creditor participation index (0-4) 2.0
    Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency representative? No 0.0
    Does the insolvency framework require approval by the creditors for sale of substantial assets of the debtor? No 0.0
    Does the insolvency framework provide that a creditor has the right to request information from the insolvency representative? Yes 1.0
    Does the insolvency framework provide that a creditor has the right to object to decisions accepting or rejecting creditors' claims? Yes 1.0

Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”.