UNIVERSITY OF DAR ES SALAAM

BUSINESS SCHOOL

POSTGRADUATE OFFICE

MASTERS IN ENTREPRENEURSHIP AND ENTERPRISE DEVELOPMENT (MEED)

NAME REG NO.

LYIMO,WHITNEY SATORY 2019-06-18808

GM 200: REGULATORY FRAMEWORK

Timed Assignment
1. Examine all regulatory bodies (relevant for micro, medium and small businesses) in
Mainland Tanzania and identify the laws/regulations that establish them and their main
functions.
2. Examine the laws/regulations (including subsidiary legislations) that regulates the
following businesses in Mainland Tanzania:
(a) Agriculture
(b) Tanzanite mining
(c) Internet Cafe
(d) Restaurant or selling of food
(e) Micro finance service
Instructions
-Answer all questions
-Minimum consultation with your classmates is allowed but plagiarism and copying from each
other are STRICTLY PROHIBITED.
-Cite relevant authorities where necessary.
QUESTION ONE.

Regulatory body.

This refers to an Organisation appointed by the Government to establish national standards for
qualifications and to ensure consistent compliance with them. They are responsible for
formulating and enforcing laws that protect the safety of patients and set basic quality standards
for genetic testing. They aim at supervising and coordinating the economic activities under free
market economy. The regulatory bodies also help to correct failures of market forces and
protecting safety of consumers. Regulatory bodies normally charge various levies and fees for
the development of their operational costs. These levies increase cost of doing business in
Tanzania. Some of the regulatory bodies in Tanzania include Weight and Measures Agency
(WMA), Government Chemist Regulatory Authority (GCRA), Energy and Water Utilities
Regulatory Authority (EWURA), Occupational Safety and Health Authority (OSHA) Tanzania
Communications Regulatory Authority (TCRA) among others .The following are regulatory
bodies in Tanzania with their functions;

Fair Competition Commission (FCC)

This is a Public Institution established by section 62(1) of the Fair Competition Act, No.8 of
2003 (FCA) .It was established with the aim of promoting and protecting effective competition
in trade and commerce and protecting consumers from unfair and misleading market conduct. It
aims at increasing efficiency in the production, distribution and supply of goods and services.
Establishment of FCC is a significant step in Tanzania effort to establish a market economy. Its
mission is to enhance Competition and protecting consumers by preventing anti-competitive and
deceptive business conducts to ensure inclusive economic growth. Fair Competion Commission
(FCC) helps to regulate the market structure, it regulates restrictive trade practices such as anti-
competitive agreements, the misuse of market power, mergers and acquisitions. It ensures
consumer protection through regulating misleading and unfair business practices, deceptive and
unconscionable conduct, conditions implied in consumer contracts, manufacturers’ obligations,
product safety and product information .It has the following functions;

-To carry out inquiries studies and research into matters relating to competition and the
Protection of the interests of consumers.
-To investigate policies, procedures and programs of regulatory authorities so as to assess their
effects on competition and consumer welfare and publicise the results of such studies.

-To study government policies, procedures and programs, legislations and proposals for
legislation so as to assess their effects on competition and consumer welfare and publicise the
results of such studies.

-To investigate impediments to competition, including entry into and exit from markets, in the
economy as a whole or in particular sectors and publicise the results of such investigations.

-To participate in deliberations and proceedings of the government, government commissions,

regulatory authorities and other bodies in relation to competition and consumer welfare;

-To make representations to government, government commissions, regulatory authorities and

other bodies on matters related to competition and consumer welfare.

-To consult with consumer bodies, regulatory authorities, business organizations and other
interested persons.

-To promote public knowledge, awareness and understanding of the obligations, rights and
remedies under the Act and the duties, functions and activities of the Commission.

Business Registration and Licensing Authority (BRELA)

This is an Executive Agency under the Ministry of Industry and Trade responsible for business
administration and regulation of the laws; namely Companies Registration, Business Names
Registration, Trade and Service Marks Registration, granting of Patents and issuing of Industrial
License. It was established under the Government Executive Agencies Act No. 30 of 1997 and
formally launched on 3rd December 1999. .Its mission is to promote public knowledge,
awareness and understanding of the obligations, rights and remedies under the Act and the
duties, functions and activities of the Commission. The Act prohibits any business from
operating without a licence. The following are the functions of BRELA;
-To administer companies and business names laws, BRELA under Company Act of 2002 given
power to register the new companies which needs to work and operate in Tanzania.

-To regulate business by administering business and industrial licensing laws, BRELA has the
function of regulating business by administering business and industrial licensing laws which
help companies to work in accordance with rules and regulation.

-To encourage and facilitate local and foreign business investment, BRELA as relevant
authorizes for registration and supervising companies have the function of encouraging the
growth of local investment and foreign investment in Tanzania.

-To raise revenue from licensing, this is obtained from various fees one pays during the process.

-To gather and retain information on businesses.

-To protect the development of creativity in artistic, literary works, and expression of folklore.

Tanzania Revenue Authority (TRA)

It was established by Act of Parliament No. 11 of 1995, and started its operations on 1st July
1996. In carrying out its statutory functions, TRA is regulated by law, and is responsible for
administering impartially various taxes of the Central Government. Its vision is to increase
Domestic Revenue through Enhancement of Voluntary Tax Compliance. TRA collects taxes in
the country on behalf of the government, TRA collect different type of taxes. It has Indirect
taxes, this are that they are imposed on goods and services not direct to one’s income, they are
paid indirect by the finial consumers of the product. It also collect indirect taxes from producers,
wholesalers and retailers and not direct from the final consumers, Value Added Tax (VAT) and
import duty. The direct taxes, this are taxes collect directly from the source, example business
income, investment income and employment income. Under this the taxpayer knows how much
he/she has to paid as tax, corporate taxes, investment tax and employment taxes are examples of
direct taxes. Taxes are collected under three taxation system. The progressive tax system, it is a
system were tax rate increases with the increase in level of income (employment taxes and the
presumptive taxation system).The regressive tax system, here the tax rate decreases as the level
of income rises (VAT). Proportional tax system, here the tax rate remain the same throughout all
levels of income (corporate tax).The following are the functions of TRA;

-To assess, collect and account for government revenue taxes.

–To administer revenue (tax) laws.

-To advice government on fiscal policy, this is on how to control the government expenditure.

-To promote voluntary tax compliance, improve quality of service.

-To produce trade statistics and publications and counteract Fraud and tax evasion.

The National Environment Management Council (NEMC)

It was established by The Environmental Management Act No. 20 of 2004 (EMA, 2004) by
Parliament in October 2004, repealed the National Environmental Management Act No.19 of
1983 and re-established NEMC. It was established in order to undertake the environmental
enforcement, compliance, review and monitor environmental impact statements, research and
awareness raising. . This Act has provided a legal and institutional framework for the sustainable
management of the environment, prevention and control pollution, waste management,
environmental quality standards, public participation, environmental compliance and
enforcement. The following are the functions of NEMC;

- It is responsible for making recommendation to the licensing authority if project should be

licensed or not. A licence can be cancelled if the project or undertaking does not comply with the
environmental standards set by the Act.

- To undertake an Environmental Impact Assessment (EIA) for several projects, including

industries involved in processing and manufacturing.

-To provide education about the environment.

-To enforce sanctions.

Tanzania Bureau of Standards (TBS)

This is the national standards body for Tanzania which was established by the government as
part of the efforts to strengthen the supportive infrastructure for industry and commerce sectors
across the economy within the country. It was established by Parliamentary Act No. 3 of 1975 as
the National Standards Institute and became operational on 16th April 1976. Subsequently, it
was renamed Tanzania Bureau of Standards under Act No. 1 of 1977. On 20th March 2009, the
Standards Act No. 3 of 1975 was repealed and replaced by the Standards Act No. 2 of 2009. TBS
has being mandated to undertake measures for quality control of products of all descriptions and
to promote standardization in industry and commerce. Thus ensures consumer protection from
goods that haven’t reached the required standards .The following are the functions of TBS;

-To do all other acts and things, and enter into any transactions, which are, in the opinion of the
Board of Directors, expedient or necessary for the proper and efficient discharge of the functions
of the Bureau.

-To undertake measures for quality control of commodities, services and environment of all
descriptions and to promote standardization in industry and trade.

-To grant, renew, suspend, vary or cancel any license issued for the use of any standards mark.

- To approve, register and control the use of standard marks in accordance with the provisions of
the Standards Act.

-To assist industries in setting up and enforcing quality assurance and environmental
management systems procedures.

-It assists the Government or any other person in the preparation and framing of standards.

- To encourage or undertake educational work in connection with standardization, quality

assurance, metrology, testing and environment.

-It co-operates with other Government agencies, representatives of any industry or any other
statutory corporation or person with a view to securing the adoption and practical application of
standards.
- To inspect and register premises in accordance with the provision of this Act.

-To certify and register food, food products and cosmetics regulated under this Act.

-To provide for the inspection, sampling and testing of locally manufactured and imported
commodities with a view to determining whether the commodities comply with the provisions of
the Standards Act or any other law dealing with standards relevant to those commodities.

-It collects, publish and disseminate literature and other materials on standardization and other
related subjects.

- To carry-out, promote or assist in research on standardization and various related subjects.

-To participate in, or to make arrangements for conferences, workshops, seminars and
discussions on matters connected with the activities of the Bureau.

- To publish from time to time an updated version of a National Standard for the quantities and
units of measurement to be used, which shall be in conformity with the latest version of the
International System of Units.

Occupational Safety and Health Agency (OSHA)

OSHA is a Government Agency under the Prime Minister’s Office (Labour, Youth, Employment
and Persons with Disability).It was established by The Occupational Health and Safety Act No. 5
of 2003. The Agency has the responsibility of protecting workers against potential hazards at
workplaces that can cause occupational diseases and accidents. It aims at improving the health
and wellbeing of workers, and of workplaces. This is achieved by promoting occupational safety
and health (OSH) practices in order to prevent occupational injuries and diseases thus better
productivity. The following are the functions of OSHA;

- To undertake Occupational Safety and Health (OSH) Risk assessment.

-To Registering workplaces.

- Scrutinizing of workplace drawings to ensure that they meet minimum OHS standards.
-To Conduct General Inspections and performing specific inspections, e.g. electrical safety
inspections, pressure vessels and inspection of Lifting Appliances.

- To conduct industrial hygiene surveys and measurements.

-To Conducting accident investigations.

-To provide technical advice on occupational health and safety issues.

Weights and Measures Agency (WMA)

The Weights and Measures Bureau became an Executive Agency and borne a new title the
“Weights and Measures Agency”, (WMA). The Agency performs its functions in pursuance of
the Weights and Measures Act Cap.340 (R.E. 2002) together with its cognate Regulations. It was
established with the mandate to provide protection to consumers in relation to legal metrological
control which includes legal control of measuring instruments, metrological supervision and
metrological expertise in trade, health, safety and environment. Its mission is to provide
Consumer protection in relation to legal metrology through Verification and re-verification of
measuring instruments or measuring system and metrological supervision for promoting
confidence in measurements results. It has the following functions;

-To approve (or ensure approval by another designated institutions) measuring instruments to be
used for a public or private transaction in trade, safety, health and environment sectors.

-To protect consumers in trade, safety, health and environment in relation to legal metrology.

-To control the use of measuring instruments in public and private transactions.

-To protect society from the consequences of false measurements in public and private
transactions.

-To control pre-packaging of products.

-To ensure that legal metrology measurement standards are traceable to national and
International measurement standards.

-To liaise with regional and international organizations with similar objectives.

Tanzania Medicine and Medical Device Authority (TMDA).

This is an organization which operates as a Regulatory Authority and an Executive Agency. It

was established as the Regulatory Authority under Section 4 (1) of the Tanzania Medicines and
Medical Devices Act, Cap 219 and as the Executive Agency under Section 3 (1) of the Executive
Agencies Act, Cap 245. TMDA is now responsible for regulating quality, safety and
effectiveness of medicines, medical devices and diagnostics. In order to improve public service
delivery, TMDA is managed as an Executive Agency in accordance with the Executive Agencies
Act, Cap. 245 which was also amended in 2009.Its mission is to protect and promote public
health by ensuring quality, safety and effectiveness of medicines, medical devices, diagnostics
and other health related products. The following are the functions of TMDA;

-To conduct laboratory investigations for regulated products to ascertain their quality
specifications.

-To evaluate and register medicines, medical devices and diagnostics so as to reach the required
standards before marketing authorization.

-To promote rational use of medicines, medical devices and diagnostics.

-To educate and share accurate and reliable information to stakeholders and the general public on
regulatory matters

-To issues business permits for premises dealing with regulated products.

-To assess the quality, safety and efficacy of controlled drugs.

-To regulate the manufacturing, importation, distribution and selling of medicines, medical
devices and diagnostics;
-To prescribe standards of quality, safety and effectiveness for medicines, medical devices and
diagnostics.

-To inspect manufacturing industries and business premises dealing with regulated products and
make sure the standards required are attained.

-To conduct pharmacovigilance of medical products and vigilance of medical devices and
diagnostics circulating on the market.

Tanzania Atomic Energy Commission (TAEC)

It was established by the Act of Parliament referred to as the Atomic Energy Act No. 7 of 2003.
Tanzania Atomic Energy Commission is the official government body responsible for all atomic
energy matters in the United Republic of Tanzania. Its mission is to ensure safe and peaceful use
of nuclear technology and to facilitate sustainable social and economic development through the
promotion of nuclear technology in Tanzania.

- Provide Regulatory and Radiation Protection Services,

-Coordinate, monitor the use of nuclear technology.

- Promote peaceful use of nuclear technology in the country.

CONCLUSION.

The regulatory bodies in Tanzania work hand in hand with the Small and Medium enterprises to
ensure that they develop and grow well and incase of non-compliance of the law they face the
sanctions. They help to ensure consumer protection, help small business to survive in the market
through Fair Competion Commission (FCC) also create a business environment which is friendly
i.e. Fair Competion ,prevention of free riding.The regulations also have some downfalls like
some tend to add cost burden like when one is required to hire a professional in auditing his/her
business also some create unnecessary bureaucracy thus slowing down the business process and
creating an environment for corruption.

.
QUESTION TWO.

The following are laws/regulations (including subsidiary legislations) that regulates the
following businesses in Mainland Tanzania;

(a) Agriculture.

This refers to the production of crops and rearing of livestock for man's benefit (Harris & Fuller,
2014). Agriculture is the largest and most important sector of the Tanzanian economy, the
country benefits from a diverse production including livestock, staple food crops and a variety of
cash crops. The following are the laws that regulate this sector;

The National Irrigation Act No. 5 of 2013

This Act provide the establishment of the National Irrigation Commission to provide the
development, operation and maintenance of irrigation and drainage systems; to provide for
effective implementation of the National Irrigation Policy, the National Irrigation Development
Strategy and to provide for related matters. The commission ensures that all irrigation
development are well integrated with the natural resource and management activities. The
commission normally cooperate with other authorities to ensure that the environment is well
protected.

The Environmental Management Act, 2004

The minister issues an Environmental Impact Assessment certificate on the advice of the council.
Although it can suspend the Environment Impact Assessment certificate where there is

-There is changes in the project and those changes are not environmental friendly.

-The project poses an environmental threat.

Tanzania Agriculture Research Institute Act No 10 of 2016

Through this Act the sector has being able to be promoted through

-Provision the enhancement of the Agriculture research system.

-Effective coordination of Agriculture research activities.

-Through government management and conducting of agricultural research activities.

The Land Act Cap.123

This act has elaborated that in case of land use for agriculture, the land has to be use in a
sustainable manner. One has to take into consideration the principles of husbandry and also
comply with all written laws regarding the use of land. Thus regulating the Agriculture sector.

(b)Tanzanite mining

Mining is the extraction of valuable minerals or other geological materials from the Earth,
usually from an ore body, lode, vein, seam, and reef or placer deposit. Tanzania is a land rich in
minerals. Mining makes up more than 50% of the country's total exports, of which a large part
comes from gold.

Mining Act, No 14 of 2010.

This Act makes provision for control of mining operations in Tanzania and establishes rules
relative to the exploration for and exploitation of mineral resources in Tanzania. The Minister
may enter into a development agreement with the holder of, or an applicant for, mineral rights
for which the Minister is the licensing authority.

Tanzania Extractive Industries (Transparency and Accountability) Act. 2015 (No. 23 of

2015).

The Tanzania Extractive Industries (Transparency and Accountability) Committee and provides
transparency and accountability in commercial operations concerning extraction of minerals, oil
and natural gas. The Committee is normally an independent Government entity which shall be an
oversight body for promoting and enhancing transparency and accountability in the extractive
industry.

(a) Internet Café

These are also referred as cybercafé. This is a type of business where computers are provided for
accessing the internet, playing games, chatting with friends or doing other computer-related
tasks. In most cases, access to the computer and internet is charged based on time. There are
many internet cafes located in Tanzania and in some countries they are considered the primary
form of internet access for people. In Tanzania all activities that are related to information
technology and communication are regulated by TCRA (Tanzania Communication Regulatory
Authority).The following are some Acts that regulate this business in Tanzania;

Cybercrime Act 2015.

This Act shows all offences related to computer system and information communication
technologies. Under Part V (Liability of service providers) it elaborates the responsibility of
people who offer internet services. Whenever one person goes against then then he or she will
face sanctions. In section No.14 (4) says where a service provider has a knowledge of legal
information or activity he shall;

-Remove the information in the computer system within the service provider’s control.
-Suspend or terminate services in respect of that information or activity; and
-Notify appropriate law enforcement authority of the illegal activity or information,
relevant facts and identify of the person of whom the service provider is supplying
services in respect of the information.

Other Acts that regulate this business are;

-Tanzania Communications Regulatory Authority Act of 2003.

-The Electronic Transactions Act, 2015.

-TCRA (Procedure for Rules of Inquiry) Rules, 2004.

- The Electronic and Postal Communications Act, 2010 (Act No. 3 out of 10).
 - Tanzania Communications Act of 1993.

(d) Restaurant or selling of food

This is completely involved with the selling of goods for human consumption. This has to be
conducted in manner that is safe for human health. The following are the laws that regulate this
sector;

Tanzania Food, Drugs and Cosmetics Act, 2003 (No.1 of 2003)

This Act provides the efficient and comprehensive regulation and control of food, drugs, medical
devices, cosmetics, herbal drugs and poisons .Under this Act Part 3: PROVISIONS
REGARDING FOOD I looked at (e) Food Hygiene, Section 44 (1) The Minister may, after
consultation with the Authority make regulations designed to secure the observance of sanitary
and cleanly conditions and practices and wholesome methods in connection with -

(a) The sale of food for human consumption;

(b) The manufacture, transport, storage, packaging, marking, exposure for sale, service or

Delivery of food intended for human consumption.

(2) Without prejudice to the generality of the power conferred by subsection (1), the Minister

may make regulations -

(a) Prohibiting, restricting or regulating the sale, or storage, posse- session or exposure for sale,
of

any specified food, in any place in the United Republic by any specified person or category of

persons;

(b) Impose requirements as to the construction, layout, drainage, equip- ment, maintenance,

cleanliness, ventilation and extraction of fumes or heat, lighting, water-supply and use of

premises in, at or from which food for human consumption is manufactured or stored, or sold,
offered or exposed for distribution or sale;

(c) Imposing requirements as to the provision, maintenance and clean- liness of sanitary and

washing facilities in connection with those premises, the disposal of refuse and the maintenance

and cleanliness of apparatus, equipment, furnishings and utensils used in such premises, and in

particular, the regulations may impose requirements that every sanitary convenience situated

in such premises be supplied with water through a suitable flushing appliance;

(d) Prohibiting or restricting spitting on or, in any other way, littering premises where food for

human consumption is manufactured or stored, or sold, offered, or exposed, for distribution or

sale;

(e) Imposing requirements as to the clothing to be worn by persons engaged to work in those

premises;

(e)Micro finance service

Microfinance, also called microcredit, is a type of banking service provided to unemployed or

low-income individuals or groups who otherwise would have no other access to financial
services (Investopedia). Micro financing in Tanzania started in 1995 with SACCOS (savings and
credit cooperative organization) and NGOs. It has since then contributed to the increasing
success of international micro financing. Microfinance stills remains a relatively new in
Tanzania since it has not penetrated yet. Since 1995, microfinance has been linked to poverty
alleviation programs and women (Harvey et al., 2018).The following are the Acts that regulate
this business;

Microfinance Act Cap.407 (Act No. 10 of 2018)

According to the Microfinance Act, Microfinance business in Tanzania is classified into 4 tiers
as follows:-

Tier 1 -Banks and Microfinance Banks (Deposit Taking Microfinance institutions).

Tier 2 -Credit Companies and Financial organizations (Non-Deposit Taking Microfinance
Service Providers).

Tier 3 -Savings and Credit Cooperatives Societies (SACCOS).

Tier 4 -Community Microfinance groups.

The set of these three new Regulations is meant to provide the operational guidance for the
management, supervision and administration of each Microfinance business under Tier 2, Tier 3
and Tier 4. It is important to note that, Section 5(2) of the Microfinance Act requires
Microfinance Business under Tier 1 i.e. Deposit taking Microfinance institutions to be regulated
in accordance with the Banking and Financial Institutions Act, Cap. 342.
REFERENCES.

www.parliament.go.tz

https://trade.business.go.tz

www.madini.go.tz

http://www.wma.go.tz/

http://www.competition.or.tz

http://www.tbs.go.tz/

http://www.taec.or.tz

http://www.brela.go.tz/

http://www.nemc.or.tz/

http://www.tra.go.tz

http://www.cti.co.tz

http://www.clydeco.com

http://www.osha.go.tz