The One Stop Shop For Global Business

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Lion Consulting is one of the premier business consultancies in Tanzania offering a one-stop shop for companies or individuals to set up and operate in Tanzania. We provide our clients with the most efficient and cost effective solutions while ensuring timely services. We have a strong core of directors who strong local knowledge with provides confidence to potential investors to operate in Tanzania while ensuring all regulatory and legal requirements are met. Lion Consulting also has long-standing ties to Grant Thornton Tanzania which gives clients the business, legal and financial backing all under one roof. Having been involved in a variety of businesses we have the practical knowledge of doing business in Tanzania.

Lion Consulting offers the following services:

  1. Company incorporation or registration of a foreign branch;
  2. Tax and VAT registration;
  3. All necessary licensing including any specialised licensing;
  4. Registration with the Tanzania Investment Centre;
  5. Work and Residence Permit applications;
  6. Company secretarial services; and
  7. Virtual office services.

The above is not limited and we cater to all clients needs and ensure that the transition to opening a new business in Tanzania is smooth. Our clients do not have to hassle themselves by moving to different governmental departments and there are instances where incorrect information is provided. Clients are given clear deliverables when working with Lion Consulting and we ensure the best client experience. We also give financial accountability to our clients where we do not exceed our quoted prices unless it is an exceptional circumstance.

We also provide after care packages where our clients are able to use our legal and financial expertise on a need be basis at cost effective price. Lion Consulting does not charge for any initial inquiries and we provide thorough information and documentation to all our potential new clients.

Petroleum Sector in Tanzania.

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Tanzania has in the recent years discovered huge offshore natural gas fields. As we know, Tanzania is a major producer of natural gas and has been exporting natural gas for more than 50 years. Tanzania aims for these discoveries to the socio-economic and political development of the country, and therefore, in the past few years, the Government has developed local content policies aimed at securing job and business opportunities for the citizens in Tanzania. This brief article shall take a look at the regulatory framework governing the Petroleum Sector in Tanzania and the future outlook.

To start it is important to note that the primary laws governing the oil and gas industry are:

  • the Petroleum Act 2015;
  • the Energy and Water Utilities Regulatory Authority Act 2006;
  • the Tanzania Extractive Industries (Transparency and Accountability) Act 2015;
  • the Oil and Gas Revenues Act 2015;
  • the Environmental Management Act 2004;
  • the Tanzania Investment Act 1997;
  • the Income Tax Act RE 2008;
  • the Petroleum (General) Regulations 2011;
  • the National Natural Gas Policy 2013;
  • the Petroleum (Natural Gas Pricing) Regulations 2016; and
  • the Petroleum (Local Content) Regulations 2017.

The overall responsibility for the development of the petroleum sector and granting of the licences falls under the Ministry of Energy.  The Petroleum Upstream Regulatory Authority advises, regulates and monitors the petroleum upstream sub-sector in Mainland Tanzania whilst the Energy and Water Utilities Regulatory Authority monitors the midstream and downstream petroleum and natural gas activities in Tanzania. The Tanzania Petroleum Development Corporation is the National Oil Company of Tanzania and its main activities include:-

a. participating in petroleum reconnaissance, exploration and development projects;

b. carrying out specialised operations in the petroleum value chain using subsidiary companies; and

c. handling the government’s commercial participating interests in the petroleum sub-sector etc

With the signing of the Uganda- Tanzania oil pipeline project by Tanzania, Uganda, the French oil company Total, along with its investment partner in Uganda, the China National Offshore Oil Corporation (CNOOC) to transport crude oil from Western Uganda to the Indian Ocean worth $3.5 billion (€2.9 billion) AND the plans to begin construction on the delated Tanzania plans to begin $30 billion liquefied natural gas project in 2023, following the resumption of talks with companies including Equinor, Lion Consulting expects a more positive outlook for the petroleum sector in Tanzania during the next coming decade.

Based on the challenging regulatory environmental climate surrounding the petroleum sector in Tanzania, Lion Consulting is keen to advise any service provider wishing to engage in the sector or anyone wishing to set up their establishment in Tanzania to seek proper advise beforehand, especially after the introduction of local content regulations in the sector.

Notice Of Change Of Address For Service

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It is with great pleasure that we write to inform you that on 1/10/2021, we opened our doors to a more spacious and comfortable surrounding. Our new address is now on the New Bagamoyo road, Regent Estate, behind WCF house. Our phone number has not changed, it is still +255 765 754 701, and our contact email address is still e.baisi@lionconsultingtz.com. The new location is opposite WCF parking and has much better parking facilities.

Mining – Overview And Services

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As we know, Tanzania is rich in a diverse array of minerals, gemstones, gold, uranium, copper, gas, to mention a few. To note that Tanzania is the third-largest gold producer in Africa. Although large-scale foreign investment is a relatively recent phenomenon, gold exploration and mining have a long history in the country. The Mining Sector has gone significant changes in recent years in Tanzania. The key development has been the enactment of the  Written Laws (Miscellaneous Amendments) Act (7/2017) which brought significant changes to the Mining Act, including the introduction of the Mining Commission, which is tasked with the overall regulation of the mining industry in Tanzania, including the issue and cancellation of licences.

It is key to note that a mining licence or permit is required at various stages of a mining companies life. At Lion Consulting, we have helped various mining companies set up their operations in Tanzania. Our experience in this field includes:-

  • Acted for leading mining companies to ensure compliance of special mining licences, mining licences, prospecting licences amongst other licences under the Mining Act and its regulations.
  • Acted on behalf of Amani Gold in the establishment of their mining operations in Tanzania; and
  • Acted on behalf of Elves Graphite, a Koren graphite mining company establish their presence in Tanzania.

Through the constant change of the mining laws in Tanzania, Lion Consulting advises operators in the mining industry and anyone who wishes to set up their establishment in Tanzania to seek proper advise beforehand, especially after the introduction of local content regulations in the sector.

Market Outlook 2022

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With the easing of worldwide Coronavirus restrictions and increased vaccination programs the outlook for Tanzania will be positive for the upcoming year. The International Monetary Fund has also approved USD 657 million in emergency support for Tanzania in order to meet the health and social costs of the pandemic. The GDP growth for Tanzania is estimated to grow above 5% driven by private consumption and the actions of the Government of Tanzania to improve the business climate. The World Bank also expects the economy to grow above the Sub-Sahara Africa average for 2022 which is again a very positive sign for investors. The long-term political stability of Tanzania will also play a huge part in attracting foreign investment.

Lion Consulting anticipates continued increased investment in Tanzania specifically in the energy and infrastructure sectors. The USD 30 billion LNG project is primed to begin as indications from both the Government and the international gas companies involved have announced renewed talks in starting the stalled project. The construction of the oil pipeline from Uganda to Tanga, Tanzania headed by Total also will bring a boom to the sector. Further, Tanzania has also prioritized a USD 3 billion joint venture with a Chinese company for an iron ore and coal mine. A USD 10 billion port project back by China and Oman has also been green light. Finally, a British company has partnered with the government to mine nickel sulphide which is a crucial mineral in the development and manufacture of batteries used in electric vehicles. The company has been issued with the first special mining license in 10 years which shows an optimistic outlook for Tanzania.

The Government has identified and are currently reviewing up to 88 laws that are not considered business friendly. The Government believes that there are too many regulatory authorities in the country that is not favourable to investment and believe in reducing them. Billionaire investors such as Aliko Dangote and Mohamed Dewji have both been encouraged and have stated that the investment climate will continue to be more favourable for businesses.

Lion Consulting has seen an uptick in foreign businesses entering the Tanzanian market practically from Europe and Asia and this can only be seen as a positive sign for continued growth rebound after the damage done by the global pandemic. We remain at your disposal and welcome any queries from businesses or individuals looking to invest in Tanzania as the country looks to rebound from a slowed growth.

Improved Business Environment In Tanzania

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The Tanzania Government has pledged to improve the business environment and ease of doing business in Tanzania. This pledge and commitment is aimed at increasing the levels of foreign direct investments into Tanzania[1]. In a show of commitment to this pledge, the government tabled an Amendments Bill for several laws in the on going House session, including the Companies Act and the Non-Citizens (Employment Regulation) Act. The proposed changes are contained in the Written Laws (Miscellaneous Amendments) Bills numbers 2 and 4.  In the proposed amendments by the Written Laws (Miscellaneous Amendments) (No 4) Bill 2021 includes the following:

  1. Proposed to amendments to extend the time limit for non-citizens willing to work in Tanzania from five (5) years to eight (8) years;
  2. The Amendment to allow any company that has been registered with the Tanzania Investment Centre or Export Processing Zone Authority to employ up to ten non-citizens without the need of complying with the rigorous requirements of the Non-Citizens (Employment Regulations) Act;
  3. Amendment to entitle an investor to employ any number of non-citizens for as long as he complies with the quota of 1 non-citizen employed to 10 locals employed, and further justifies to the Labour Commissioner that the nature of his business requires the employment of a large number of non-citizens;
  4. Amendment to ensure that there is a simplified and improved manner of issuing work permits to non-citizen workers as an incentive to foreign and local investors who have decided to employ non-citizens; and
  5. Amendment to enable the Minister to make Regulations which shall regulate the manner and processes of issuing work permits and incentives to investors.

As noted in the Objects and Reasons attached in the Schedule of Written Laws (Miscellaneous Amendments) (No 4) Bill 2021, the proposed changes are explained by the Government as follows:-
Part VIII proposes for Amendment of the Non-Citizens (Employment Regulations) Act. Cap. 436 with a view to ensuring that there is a simplified and improved manner of issuing work permits to non-citizens worker as incentive to foreign and local investors who have decided to utilize non-citizen employees. It is proposed to amend section 12 in order to extend time limit for applicants willing to work in the Country from the current five years to eight years, which, the applications have to be done on a renewal basis from every twenty-four months. Further to that, the proposed amendments empower the Labour Commissioner to attach conditions to work permits with finality effect depending on a number of circumstances, one being the request by the applicant to stay in the country for a specific period of time. It is proposed to repeal and replace section 19 of the Act in order to provide special incentives to investors. The proposed amendments extend the immigrant quota from the current five employees to ten employees who

[1] http://www.xinhuanet.com/english/2019-02/07/c_137805184.htm

shall stay in the country working during the whole period of investment. Further that the investor employing ten local employees shall also be entitled to employ one non-citizen employee. It is proposed to amend of section 22 of the Act to enable the Minister to make Regulations that shall regulate the manner and processes of issuing work permits and incentives to investors”.

Lion Consulting does commend the Government of taking this initiative in improving the business environment in Tanzania. We believe that these proposed amendments if passed shall lead to more foreign direct investments in Tanzania.

Company Incorporation Step By Step Guide

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Establishing a company in Tanzania is a multi-stage process. The successful establishment of a company requires the submission of a number of documents as well as detailed information provided by the client to Lion Consulting.

In order for Lion Consulting to assist our clients in the best and most efficient manner, we provide a detailed checklist in stages which we ask our clients to provide to us. Once we have all the required information and documentation we ensure all deliverable are swiftly delivered.

Stage 1 – Obtaining a Certificate of Incorporation

Upon clearance of the company name provided by the client, preparation of the memorandum and articles of association as well as relevant company forms they are submitted to the Business Registrations and Licensing Agency.

We aim to deliver a Certificate of Incorporation within 4 working days once we have received all required documentation and information from the client.

Stage 2 – Obtaining a Tax Identification Number Certificate

After incorporation the new company must register with the Tanzania Revenue Authority to obtain a Tax Payer Identification Number. This is again completed once all relevant information and documentation requested is provided to Lion Consulting.

We have this processed within 2 working days.

Stage 3 – Obtaining a Business Licence

Before commencing business activities, the new company will be required to obtain a business licence which is renewable on a yearly basis. Once we have the new company’s objective provided in stage, Lion Consulting will provide a list of the requisite documents and fees applicable.

We aim to process the business licence within 3 working days.

Stage 4 – Obtaining a Value Added Tax Certificate

VAT is chargeable on the supply of goods or services in Mainland Tanzania. In order to obtain a VAT certificate, a company’s turnover must be approximately USD 46,000. This is usually an estimation and in order to process the same a thorough evaluation is conducted by the Tanzania Revenue Authority in order to verify the provided estimation.

We aim to process the VAT certificate within 5 working days.