Frequently Asked Questions

FAQ

 

ABOUT CTI

 

Question: What is CTI? 

Answer: CTI stands for the Confederation of Tanzania Industries. It is an independent, self financed, legally constituted organisation that was established in 1991 to serve its members by speaking out on their behalf and generally representing their interests. The main aim of CTI is to ensure that there is a conducive legal, financial and economic environment within which industry can operate effectively, prosper and contribute to national wealth and development.

 

Question: How many members does CTI have?

Answer: More than 400

 

Question: What services and benefits does CTI provide to member companies?

Answer: 

•Lobby, influence and advise the Government to effect change.

•Represent members and speak on their behalf in the Task Force on Task Reforms during the budget formulation      process.

•Conduct researches on topical issues affecting members and disseminate findings.

•Provide a forum for discussion and formulation of policy pertinent to the well-being of the manufacturing and   supporting  industries.

•Intervene on behalf of members to resolve emerging problems with public officials.

•Collect, organise and disseminate information on business opportunities, trade fairs, markets, products, industry and  other business-related information.

•Provide library services.

•Publish documents like Membership Directories, Annual Reports, Study reports and make them available to members  and other stakeholders.

•Provide information on training opportunities, financing and joint ventures.

•Conduct seminars, workshops and training on topical issues.

•Issue letters of introduction, upon request, to members travelling on business outside the country.

•Provide networking events for members.

 

Question: Which companies are members of CTI? 

Answer: CTI members are the core of the manufacturing and service industries that operate in Tanzania. Membership of CTI is corporate, hence companies become members and not individuals. Members of CTI range from large-scale companies with an annual turnover in excess of TZS 400 billion to the newly starting enterprises with an annual turnover of TZS 10 million.    

 

Question: How can a company become a member of CTI?

Answer: To join CTI is very simple. A membership application form must be filled in and submitted to CTI. A membership fee of TZS 100, 000 is payable once on joining for companies with annual turnover of up to TZS 399 million. Those with annual turnover in excess of TZS 400 million pay membership fee of TZS 200,000. Annual subscriptions are paid by members and vary according to their turnovers.

 

Question: Is it possible to acquire a list of the member companies?

Answer: All CTI members receive a free copy of the membership directory. Non-members can purchase the directory from the Secretariat. 

 

FICSAL POLICY 

 

Question: What is the Tax Structure in Tanzania?

Answer:

Central Government Taxes

A) Indirect Taxes

 Import duties

 Excise duties

 VAT

 

B) Direct Taxes

 Income taxes

 Corporate taxes

 

Local Government Taxes

 Crop Levy

 City Service Levy

 Property taxes

 Land rent

 

THE MANUFACTURING SECTOR

 

Question: What is the state of the manufacturing sector in Tanzania?

Answer: 

• The sector on average has grown by 8.0 percent per annum for the past decade.

• On average the sector contributed 8.3 percent to GDP for the past decade.

• The sector is dominated by import substituting light consumer goods industries.

• It provides direct formal employment to 135,000 people, about 11 percent of the formal employment in Tanzania.

• It contributes to about 40 percent of total government revenue, equivalent to 6.5 percent revenue efforts of the    GDP.

• The sector contributes about 20 percent of foreign exchange earnings.

   (source: Budget Speech of the Ministry of Industries and Trade, 2015)

 

Question: What are the problems and challenges facing the Tanzanian manufacturing sector?

Answer: 

Problems

• High cost of production  e.g. irregular power supply, multiple regulations

• Under- developed infrastructure e.g. port and railways

• Dilapidated machinery and obsolete technology

• Inadequate market information

• Unfair competition due to dumping, subsidisation and counterfeit goods

• Inadequate working capital

• Lack of entrepreneurial skills

• Low productivity

• Multiple regulatory authorities

 

These problems result into industrial inefficiency, low capacity utilisation and uncompetitiveness.

 

Challenges

• Raising the manufacturing sector’s contribution to the GDP to 16 percent, the bench mark for SADC countries.

• Solving supply side constraints.

• Improving the competitiveness of the sector so as to benefit from different preferential trade arrangements such as  EAC-CU, SADC, AGOA, EBA etc

• Improving Public-Private Partnership.

• Changing outdated business related laws and regulations.

 

REGIONAL INTERGRATION

 

Question: What is the status of the regional blocs: EAC and SADC?

Answer:

• East Africa Cooperation

 Signed the EAC Customs on 1st January 2005.

 Signed the EAC Common Market on 1st January 2010.

 Negotiations for the establishment of Monetary Union is ongoing.

 

• South Africa Development Cooperation

 The SADC Trade Protocol was adopted in 1996 and came into effect on 1st September 2000.

 All SADC Member States except Angola and DRC implement fully the SADC Trade Protocol since 2012. 

 

Question: What are the advantages/disadvantages of regional integration communities such as SADC and EAC for the Tanzanian industry?

Answer:

 

Advantages

• Creation of larger markets, thus attracting both foreign and local   investments.

• Pursuing specialisation and division of work in research, higher education, science and technology, industrial        production.    

• Investing in joint infrastructure projects such as roads and telecommunication.

• Undertaking joint negotiations in the multilateral trade negotiations like WTO.

• Promoting and sustaining peace and stability.

• Improving quality of products at competitive prices.

• Increasing efficiency through competition.

• Enhancing customer choice.

 

Disadvantage

• Some industries can be forced out of the market as a result of stiff competition.

• Loss of Government revenue as a result of phasing out of tariffs.

• Trade diversion.

 

Question: How do Tanzanian companies trade with countries in the COMESA?

Answer: 

• Using MFN (Most Favoured Nations).

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