LMP Tanzania and Zanzibar 2021 Final
LMP Tanzania and Zanzibar 2021 Final
PREFACE
Danish Trade Union Development Agency (DTDA) is the information on labour market developments.
development organisation of the Danish trade union Furthermore, specific data and information relating
movement. This agency was established in 1987 by the to central indicators are collected using a unique
two largest Danish confederations – Danish Federation data collection tool. It is worthwhile to mention that
of Trade Unions (Danish acronym: LO) and Danish fully updated data of the Covid-19 pandemic
Confederation of Professionals (Danish acronym: FTF). impact on central employment statistics and unionism
These confederations merged to become the Danish were scarce for 2020.
Trade Union Confederation (Danish acronym: FH) in
January 2019. Correspondingly, the former known as • National statistical institutions and international
LO/FTF Council changed to DTDA. databanks are used as a source for collection of
general (statistical) data and information such as
The work of DTDA is in line with the global Decent Work ILOSTAT and NATLEX, World Bank Open Data, ITUC
Agenda (DWA) based on its pillars: creating decent jobs, Survey of Violations of Trade Union Rights, the U.S.
guaranteeing rights at work, extending social protection, Department of State, as well as other internationally
and promoting social dialogue. The overall development recognised labour-related global indexes.
objective of DTDA’s interventions in the South is to
eradicate poverty and support the development of just • Academia and media sources (for example,
and democratic societies by promoting the DWA. LabourStart, national news, among others) are
furthermore used in the available research on labour
DTDA collaborates with trade union organisations in market issues.
Africa, Asia, Latin America, and the Middle East. The
programmes’ immediate objective is to assist the partner The profile is regularly updated. The current version
organisations in becoming change-agents in their own covers the period from 2021 to 2022.
national and regional labour market context, capable of
achieving tangible improvements in the national DWA Labour Market Profiles for more than 30 countries are
conditions and achieving the labour-related Sustainable available on DTDA’s website:
Development Goals (SDGs). https://www.ulandssekretariatet.dk/.
The Labour Market Profile (LMP) format provides a DTDA prepared the Labour Market Profile in
comprehensive overview of the labour market’s structure, Copenhagen but could not compile information and data
development, and challenges. It divides into nine collection on key labour market indicators without the
thematic sections describing the economic performance, support from the DTDA Sub-Region Office in Tanzania in
labour legislation, social partners, social dialogue, close collaboration with the Trade Unions Congress of
violations of trade union rights, working conditions, the Tanzania (TUCTA) and Zanzibar Trade Union Congress
general status of the workforce, education, and social (ZATUC). If any questions arise to the profile, please
protection. contact Mr Kasper Andersen (kan@dtda.dk) from DTDA.
In the framework of DWA and SDGs, LMPs follow Cover photo shows the Company 2000 Industries in
several central indicators addressing labour market Tanzania; photographed by Ms Dorthe Friis Pedersen.
development aspects, especially the unionism evolution,
social dialogue and bi-/tri-partite mechanisms, policy Address:
development, and legal reforms status vis-à-vis ILO Ulandssekretariatet
conventions and labour standards, among others. Islands Brygge 32D
DK-2300 Copenhagen S
Primary sources of data and information for LMPs are: Denmark
Telefon: +45 33 73 74 40
• As part of programme implementation and http://www.ulandssekretariatet.dk/
monitoring, national partner organisations provide
annual narrative progress reports, including
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Danish Trade Union Development Agency
Tanzania & Zanzibar Labour Market Profile 2021/2022
EXECUTIVE SUMMARY
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Tanzania & Zanzibar Labour Market Profile 2021/2022
The table below provides an overview of key labour On the next page, Page iv, the second table presents an
market indicators' status in the framework of the Decent overview of the current value and targets of the
Work Agenda. Sustainable Development Goals’ indicators concerning
labour market issues.
Status of Key Labour Market Indicators in the Framework of the Decent Work Agenda (DWA) in Tanzania and
Zanzibar, 2019/2020
Creating decent jobs
Policy reforms addressing creation of decent Mainland operates with the Second Five Year Development Plan (FYDP II)
employment (2016/17–2020/21) and several sectoral plans. Besides, Tanzania’s Development
Vision (TDV) 2025 aspires to have the country transformed into a middle-income
and semi-industrialised nation by 2025 reaching i) high quality and sustainable
livelihoods, ii) peace, stability, and unity, iii) good governance and the rule of law,
iv) an educated and learning society, and v) a strong and competitive economy.
Zanzibar is covered by a series of adopted policies on general development,
employment, poverty reduction, and industrialisation.
No - There is no tri-partite National Informal Economy Forum. In recent years, social
ILO standard setting on improvement of status
security policies are addressing workers’ status from the informal economy in
of workers from the informal economy
Mainland and Zanzibar.
Guaranteeing rights at work
Growth in trade union members from year Mainland: 39%.
2016 to 2019/20 (%) Zanzibar: 2.5%.
Violations of trade union rights Ranking 4 out of 5 (5+ is worst). *
Recent significant law reforms were the Employment and Labour Relations Act and
Labour legislation is improved according to ILO the Labour Institution Act, both from 2017, and several reforms of social security
standards funds in 2018. Labour regulations did not envisage a COVID-19 or similar situation
that put many employers and workers in a challenging position.
Partner organizations with minimum 30% women Mainland: Yes, registering of 33% representation in decision-making bodies.
representation in decision-making bodies Zanzibar: Yes, registered of 55% representation in decision-making bodies.
Extending social protection
Health social protection coverage as % of total Mainland: 33%.
population Zanzibar: 100%.
Workers from the informal economy have Mainland: Yes, but not fully coverage.
access to national social security schemes Zanzibar: Yes, but not fully coverage.
Promoting social dialogue
Trade union density of total employment (%) Mainland: 3.2% (2019)
Zanzibar: 2.4% (2020)
Trade union density of employees (%) Mainland: 19% (2019)
Zanzibar: 18% (2020)
Cooperation in labour-employer relations Ranking 77 out of 141 (1 is best) in 2019. **
Number of Collective Bargaining Agreements Mainland: 444 in 2019 and 416 in 2020.
(CBAs) Zanzibar: 12 (2019), none in 2020 due to COVID-19.
Workers’ coverage of Collective Bargaining Mainland: 14% in 2019 8.2% in 2020.
Agreements to employees Zanzibar: 6.6% (2019).
Mainland: Yes, recommendations for amendment of labour laws and regulations,
social security, and ongoing meetings in tri-partite fora. TUCTA and ATE jointly
developed a CBA framework to harmonise the negotiations processes, leading to
signing agreements: TUICO reported on its calendar 35 new CBAs signed in 2019.
Bi-/tri- partite agreements concluded
Zanzibar: Yes, ongoing meetings in tri-partite institutions and achieved
undersigning several Memorandum of Understanding (MoU) and new CBAs.
However, many bi-/tri partite developments were stalled in 2020 due to COVID-
19 pandemic preventive issues.
* It is estimated as “systematic violations of rights”: Workers in countries with the rating 4 have reported systematic violations. The government and/or
companies are engaged in serious efforts to crush the collective voice of workers putting fundamental rights under threat.
** This indicator is based on data from the Global Competitiveness Index that represents employers’ opinion from surveys.
Sources: International Trade Union Confederation; World Economic Forum; International Labour Organisation; DTDA research, and own calculations.
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Status of key Sustainable Development Goals in labour market related issues in Tanzania, latest values
Indicators Value Year SDG Targets
1.1.1: Working poverty rate (percentage of By 2030, eradicate extreme poverty for all people
employed living below US$1.9 PPP) 44% 2019 everywhere, currently measured as people living on less than
US$1.9 a day.
1.3.1: The population effectively covered by a Implement nationally appropriate social protection systems
social protection system, including social 3.2% * 2016 and measures for all, including floors, and by 2030 achieve
protection floors. substantial coverage of the poor and the vulnerable.
Ensure women’s full and effective participation and equal
5.5.2: Women share of employment in
23% 2014 opportunities for leadership at all levels of decision-making in
managerial positions.
political, economic, and public life.
Sustain per capita economic growth in accordance with
8.2.1: Annual growth rate of output per national circumstances and, in particular, at least 7 per
2.4% 2019
worker (GDP constant 2010 US $) cent gross domestic product growth per annum in the
least developed countries.
Achieve higher levels of economic productivity through
8.2.1: Annual growth rate of real GDP per
diversification, technological upgrading and innovation
employed person (GDP constant 2011 2.4% 2019
through a focus on high value added and labour-
international $ in PPP)
intensive sectors.
8.3.1: Proportion of informal employment in Promote development-oriented policies that support
91% 2014
non-agriculture employment productive activities, decent job creation,
8.3.1: Women 93% 2014 entrepreneurship, creativity, and innovation, and
encourage the formalisation and growth of micro-,
8.3.1: Men 89% 2014 small- and medium-sized enterprises, through access to
financial services.
8.5.1: Average hourly earnings of women and
- -
men employees
8.5.2: Unemployment rate (Total, 15+) 2.1% 2014 By 2030, achieve full and productive employment and
8.5.2: Women, 15+ 2.7% 2014 decent work for all women and men, including young
people and persons with disabilities, and equal pay for
8.5.2: Women, 15-24 years 4.6% 2014
work of equal value.
8.5.2: Men, 15+ 1.6% 2014
8.5.2: Men, 15-24 years 3.1% 2014
8.6.1: Proportion of youth (15-24 years) not in By 2020, substantially reduce the proportion of youth
15% 2014
education, employment or training) not in employment, education, or training.
8.7.1: Proportion and number of children Take immediate and effective measures to eradicate
aged 5-17 years engaged in economic 24% 2014 forced labour, end modern slavery and human
activity (Total) trafficking and secure the prohibition and elimination of
8.7.1: Girls 24% 2014 the worst forms of child labour, including recruitment
and use of child soldiers, and by 2025, end child
8.7.1: Boys 25% 2014
labour in all its forms.
8.8.1: Frequency rates of fatal occupational
- -
injuries per 100.000 workers, annual. Protect labour rights and promote safe and secure
8.8.2: Level of national compliance with working environments for all workers, including migrant
labour rights (freedom of association and workers, in particular women migrants, and those in
1.77 ** 2017 precarious employment.
collective bargaining) based on ILO textual
sources and national legislation.
Promote inclusive and sustainable industrialisation and, by
9.2.2: Manufacturing employment as a 2030, significantly raise industry’s share of employment and
3.0% 2014
proportion of total employment gross domestic product, in line with national circumstances,
and double its share in least developed countries.
10.4.1: Labour income share as a percent of Adopt policies, especially fiscal, wage and social protection
49% 2017
GDP policies, and progressively achieve greater equality.
* Persons above retirement age receiving a pension; see more in Table 22.
** The value has a range from 0 to 10, with 0 being the best possible score (indicating higher levels of compliance with FACB rights) and 10 the worst
(indicating lower levels of compliance with FACB rights) based on ILO textual sources and national legislation.
Source: ILO, Key Indicators of the Labour Market (KILM).
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COUNTRY MAP
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TABLE OF CONTENTS
Preface......................................................................................................................................................................... i
Executive Summary .................................................................................................................................................... ii
Status of Key Labour Market Indicators in the Framework of the Decent Work Agenda (DWA) in Tanzania and
Zanzibar, 2019/2020.............................................................................................................................................................................iii
Status of key Sustainable Development Goals in labour market related issues in Tanzania, latest values .........................iv
Country Map ............................................................................................................................................................... v
Economic Performance ............................................................................................................................................... 1
Free Trade Zones ...................................................................................................................................................................................... 2
Labour Legislation ...................................................................................................................................................... 3
Tanzania Mainland ................................................................................................................................................................................... 3
Zanzibar ...................................................................................................................................................................................................... 4
Observations on labour legislation ....................................................................................................................................................... 4
Ratified ILO Conventions ......................................................................................................................................................................... 5
Trade Agreements .................................................................................................................................................................................... 6
Social partners ............................................................................................................................................................ 7
Government ................................................................................................................................................................................................ 7
Trade Unions .............................................................................................................................................................................................. 7
Employers’ Organisations ......................................................................................................................................................................10
Social dialogue ......................................................................................................................................................... 11
Tanzania Mainland .................................................................................................................................................................................11
Tripartite institutions in Tanzania Mainland.......................................................................................................................................12
Dispute settlement in Tanzania Mainland ..........................................................................................................................................13
Zanzibar ....................................................................................................................................................................................................14
Tripartite institutions in Zanzibar .........................................................................................................................................................14
Dispute settlement in Zanzibar .............................................................................................................................................................15
Trade Union Rights Violations .................................................................................................................................. 15
Working Conditions .................................................................................................................................................. 15
Workforce ................................................................................................................................................................. 17
Unemployment .........................................................................................................................................................................................18
Sectoral Employment ..............................................................................................................................................................................19
Migration ..................................................................................................................................................................................................21
Informal Economy ....................................................................................................................................................................................22
Child Labour .............................................................................................................................................................................................23
Gender ......................................................................................................................................................................................................24
Youth ..........................................................................................................................................................................................................25
Education .................................................................................................................................................................. 26
Vocational training .................................................................................................................................................................................28
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Tables
Table 1: Tanzania’s key economic data, projections, 2019-2022 ..................................................................................................... 1
Table 2: Level of national compliance with labour rights (freedom of association and collective bargaining) among
Tanzania and neighbouring countries, 2016-2018 ............................................................................................................................... 5
Table 3: Status of unionism in Mainland, 2019 ....................................................................................................................................... 8
Table 4: Paid employees with membership in trade unions or employees associations in Tanzania Mainland, %, 2014 ..... 8
Table 5: Status of unionism in Zanzibar, 2020 ........................................................................................................................................ 9
Table 6: Labour market efficiency in Tanzania, 2019 ........................................................................................................................10
Table 7: Status of Collective Bargaining Agreements (CBAs) in Tanzania Mainland, 2018-2020...........................................12
Table 8: Number of cases in the Commission for Meditation and Arbitration in Tanzania, 2016-2019 .................................14
Table 9: Status of Collective Bargaining Agreements in Zanzibar, 2019 ......................................................................................14
Table 10: Minimum wages in Tanzania Mainland and Zanzibar, per month .................................................................................16
Table 11: Status of Working Conditions in Tanzania ..........................................................................................................................16
Table 12: Estimations of employment-to-population ratio in Tanzania and Eastern Africa, age and sex distribution, 2019
.........................................................................................................................................................................................................................17
Table 13: Estimations of unemployment in Tanzania and Eastern Africa average, 2019 ..........................................................18
Table 14: Employed persons and GDP share per sector, 2014 .......................................................................................................20
Table 15: GDP share by sector and per worker in Tanzania, 2014 ...............................................................................................20
Table 16: Tanzania’s migration status .....................................................................................................................................................21
Table 17: Status of informal economy in Tanzania and sub-Saharan Africa (SSA) .....................................................................23
Table 18: Status of child labour in Tanzania and Africa, latest data from the 2010s ................................................................24
Table 19: Estimation on workforce key indicators gender gaps in Tanzania, 2019 ....................................................................25
Table 20: Employment by education in Tanzania, % of employment distribution, 2014 ............................................................26
Table 21: Number of Applicants and Selected VET Students, 2013-2018 ...................................................................................29
Table 22: Proportion of population covered by social protection systems in Tanzania, %, latest year ..................................31
Table 23: Status of expenditure of health and social protection in Tanzania and sub-Saharan Africa (SSA) ......................31
Table 24: Registered labour market related national legislations in United Republic in Tanzania, 2014-2020 ..................34
Table 25: Tanzania Mainland’s status of trade unions and number of CBAs, 2019/2020 ........................................................35
Table 26: Zanzibar’s status of trade unions and number of CBAs and their coverage, 2020...................................................36
Table 27: Status of Tanzania’s Ratified ILO Conventions, 2016.......................................................................................................37
Table 28: Ease of Doing Business in Tanzania, 2020 ..........................................................................................................................38
Figures
Figure 1: Gross domestic product, inflation, and current account balance in Tanzania, 2000-2022 ......................................... 1
Figure 2: Estimations of employment by economic class in Tanzania, 2010-2019 ......................................................................... 2
Figure 3: TUCTA’s membership rate and trade union density of employees (%), 2008-2019 ................................................... 8
Figure 4: ZATUC’s members and trade union density of employees (%), 2012-2020.................................................................. 9
Figure 5: Number of workers covered by Collective Bargaining Agreements (CBA) and ratio of CBAs coverage to
employees (%) in Tanzania Mainland, 2008-2020.............................................................................................................................12
Figure 6: Population pyramid based on the age-sex structure of the population in Tanzania ..................................................17
Figure 7: Estimations of labour participation rate in Tanzania and Eastern Africa (EA), total and youth, %, 2010-2019 .17
Figure 8: Estimations of status of employment in Tanzania, %, 2010-2019 ..................................................................................18
Figure 9: Estimations of labour productivity trends, 2010-2019 ......................................................................................................18
Figure 10: Unemployment trend in Tanzania and Eastern Africa, %, 2010-2020 .......................................................................19
Figure 11: Employment by aggregate sector in Tanzania, 2001-2018 .........................................................................................19
Figure 12: Aggregate sector GDP value-added in Tanzania and sub-Saharan Africa (SSA), % of GDP, 2000-2019 .....21
Figure 13: Net migration trend in Tanzania, 1988-2017 ..................................................................................................................21
Figure 14: Women in Management and Ownership, 2013 ...............................................................................................................25
Figure 15: The NEET rate in Tanzania and neighbouring countries, %, latest data from 2013 to 2019 ................................26
Figure 16: School Enrolment in Tanzania and sub-Saharan Africa (SSA), male and female, %, 2010-2019 .......................27
Figure 17: Out-of-pocket expenditure as a percentage of total expenditure on health in Tanzania and neighbouring
countries, %, 2000-2018 ...........................................................................................................................................................................31
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2015
2022
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2016
2017
2018
2019
2020
2021
Gross Dometic Product (GDP) per capita growth was GDP (% change)
hovering far above the sub-Saharan Africa average, Inflation, average consumer prices (%)
Current account balance (% of GDP)
3.1% vs -0.5%, respectively, at the end of the 2010s.
Sources: International Monetary Fund, World Economic Outlook
This growth backed Tanzania exceeding the threshold Database, April 2021.
for lower-middle-income status in 2019. It is worthwhile
to mention that Tanzania’s GDP per capita value is 30% The current account gap, representing a nation's
lower than the regional average (see more in Table 1). transactions with the rest of the world, was curbed during
The official impressive GDP numbers appeared the 2010s (see more in Table 1 and Figure 1).
questionable compared to other murkier data such as Development of the export sector has been stalled in
declining tax revenues and bank lending to companies. 1 Tanzania: its share dropped by seven percentage points
during the 2010s, reaching 15% of GDP in 2017, even
The economy was challenged by the ongoing global significantly lower than the sub-Saharan Africa average,
coronavirus (Covid-19) pandemic in 2020, especially in at 27%. Tanzania’s mineral exports represented 24% of
sectors reliant on global demand. Notably, the export total exports in 2019, out of which gold exports
and tourism sector declined significantly. Tanzania’s accounted for more than 90% of these exports. Gold
economic growth was projected to drop from 7.0% in exports increased by 83% over the past five years
2019 to 1.0% in 2020. Private demand showed a benefitted from a hike in international prices. The
deceleration, and credit growth has slowed. It led to job Tanzanian tourism sector is the country’s number one
creation freeze-up, salary cut-off, or retrenchments. foreign currency earner. The country also generates
Imports of capital goods declined by about 24% year- foreign currency through manufactured goods, crops, fish
over-year in the second quarter of 2020.2 The and fish products, and horticultural products.
government reduced the salary tax to a single digit 9%
to bring relief to all employees. Inflation has been Data shows that the gross fixed capital formation in
projected below 4% on average since 2018 (Figure 1). Tanzania has been relatively high in the 2010s,
achieving 33% of GDP on average, significantly higher
Table 1: Tanzania’s key economic data, projections, 2019- than the sub-Saharan Africa average, at 19%.3
2022
Tanzania is one of the most preferred destinations for
Values 2019 2020 2021 2022
foreign investment in Africa. The Foreign Direct
GDP (current, billion, US$) 60.8bn 63.2bn 65.9bn 70.1bn Investments (FDI) inflow reached 3.0% of GDP on
GDP per capita (current, average in the 2010s, which was one percentage point
1,080 1,090 1,104 1,139
US$)
higher than the regional average. The mining sector, oil
Total investment (% of
40% 34% 37% 38% and gas industry, and the primary agricultural products
GDP)
Gross national savings (% sector (coffee, cashew nuts, and tobacco) draw most FDI.
33% 33% 33% 34%
of GDP) It is worthwhile to mention that since 2016 the FDI inflow
General government total
16% 16% 16% 16% reduced. Reforms of the mining sector’s regulations
expenditure (% of GDP)
allowed the government to renegotiate mining contracts,
General government gross
38% 38% 38% 37% partially nationalise mining companies, introduce higher
debt (% of GDP)
Sources: International Monetary Fund, World Economic Outlook royalties, enforce local beneficiation of minerals, and
Database, April 2021. bring in strict local-content requirements.4 Tanzania’s
Mines, Energy, Construction, and Allied Workers’ Union
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emphasises to improve organising workers in the mining self-employment and informal microenterprises in urban
sector. In addition, investors and potential investors often areas.5
find difficulty hiring foreign workers, complicated tax
policies, increased local content requirements, lack of Figure 2: Estimations of employment by economic class in
trust between the government and the private sector, and Tanzania, 2010-2019
60
mandatory initial public offerings (IPOs) in key industries.
50
Concerning the complex bureaucratic procedures of
doing business in Tanzania, the Doing Business Index 40
ranked the country as 141 out of 190 countries (1st is
best) in 2020. Out of ten indicators, the country’s best 30
rankings are getting credit (67) and enforcing contracts
20
(71). Several of the scales were very low, e.g., trading
across borders (182), paying taxes (165), starting a 10
business (162), and dealing with constriction permits
(149) (see more details in Appendix Table 28). This 0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
relatively low doing business ranking signals some of the
Extremely poor < US$ 1.9
challenges of improving the economy and labour Moderately poor >= US$ 1.9 and < US$ 3.2
Near poor >= US$ 3.2 and < US$ 5.5
market’s structures. >= US$ 5.5
Note: Data in this table exclude the economically inactive population that
The Human Development Index (HDI) ranking Tanzania cover around 18% of the population (aged 15+). Data in this table is
measured at Purchasing Power Parity (PPP).
at low human development at 163 out of 189 countries Sources: ILO, Key Indicators of the Labour Market (KILM).
(1 is best) in 2020. Inequality in the distribution of family
income is measured in the Gini index. Estimations
suggested that this inequality increased from 37.8 in Free Trade Zones
2011 to 40.5 in 2017 (0 represents perfect equality,
while 100 represents high inequality). Export Processing Zones Act of 2002 in Tanzania
Mainland opened to establish the Export Processing
The middle-class for those in employment experienced Zones (EPZ) programme. This scheme is promoting
just a minor increase by three percentage points during export-oriented manufacturing investment within
the 2010s, reaching 11% in 2019. The workers living designated zones to create international competitiveness
below US$3.2 per day (aggregated extreme poor and for export. The Special Economic Zones Act was enacted
moderately poor) fell by just seven percentage points in in 2006 and established the similarly Special Economic
the same period, reaching 72% in 2019 (see details in Zones (SEZ) programme. The latter scheme stimulates
Figure 2). These latter estimations excluded the multi-sectoral investment for both domestic and foreign
economically inactive population, at 18% of the markets. Eight SEZs are established by law: four EPZ,
population’s 15+ years. Based on the poverty headcount three SEZ, and one industrial park. There are also around
ratio at the national poverty line, the 2019 Tanzania 168 single-enterprise zones (“free points”); these
Mainland Poverty Assessment registered that poverty schemes are set in 21 locations.6 Export Processing Zones
fell from 34% in 2007 to 26% in 2018. It was one of the Authority (EPZA) oversees EPZs/SEZs.
lowest rates compared to the neighbouring countries’
national poverty line: Burundi (65%), Democratic Incentives of EPZ/SEZ investments are linked to
Republic of Congo (64%), Kenya (36%), Malawi (52%), exemptions from payment of Value-Added Tax (VAT)
Mozambique (46%), Rwanda (38%), and Zambia and customs duties; withholding tax on rent, dividends,
(54%), except Uganda (21%). The rising inequality in the and interest for ten years; taxes and levies imposed by
country reflected structural concerns: the economic Local Government authorities; VAT on utility and
growth benefits meagrely trickled down to the fast- wharfage charges (fee charged by the freight terminal
growing population; no minimum wages increased since on the passage of cargo or merchandise); pre-shipment
2013, to say nothing of low social protection coverage inspection requirement; payment of withholding tax on
(see more in Social Protection section). Estimations interest on the foreign-sourced loan, among others. EPZ
suggested loss of incomes could have pushed an operators (who produce 100% for local supply) will no
additional 600,000 Tanzanians below the national longer enjoy the 10-year corporate income tax holiday
poverty line in 2020, most of the households that rely on to create a fair playing ground for operators both within
and outside the SEZ who produce local supply.
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The number of EPZ/SEZ workers increased significantly envisage a COVID-19 or similar situation that put many
from 38,000 in 2016 to around 52,400 in 2017 (July), employers and workers in a challenging position.
equalled EPZ/SEZs’ employment growth at 38%,
reaching 1.5% of employees in 2017. EPZ/SEZs The Permanent Constitution, also known as the Fourth
contributed to around 5% of national exports; the Constitution of Tanzania, was ratified in 1977 and
cumulative amount up to 2016 stood at US$1.1 billion, applied to the United Republic of Tanzania: Mainland
an increase of US$306 million from 2015. In 2012, the Tanzania and Zanzibar. Several aspects are exclusive
figure was around US$357 million. According to a union matters concerning the division of powers between
survey, the most frequently cited reasons for choosing to the Mainland and Zanzibar, reserved to the central
get a job in EPZ/SEZs concerned a better salary, working government of a federation such as defence, currency,
conditions, and social benefits. Average wages per and foreign affairs.
month were TZS 390,000 (US$179) in 2016.7
The state is obliged to realise the right to work and
A study concluded that Tanzania’s EPZ programme was receive social welfare. The freedom of association is
falling behind, mainly due to rigid and expensive guaranteed but with some restrictions. Equal opportunity
infrastructural aspects.8 Also, a high cost of operations and just remuneration are enshrined in the constitution,
based on the unreliable supply of electricity and water including exceptions for forced labour through
negatively affected the enterprises’ competitiveness in compulsory national service.
the international markets.9 Another study revealed that
EPZ/SEZs in Tanzania were highly disorganised. Many Tanzania Mainland’s and Zanzibar’s complex relations
firms were non-operational, and it appeared that the are central in domestic politics, not least in the
EPZA did not have a good handling of how the SEZs were constitution’s context. A constitution review process was
functioning in practice. The firms were overly burdened initiated in 2013 and finalised in 2015. The participating
by red tape and bureaucratic procedures that added trade union representatives ensured the inclusion of
significantly to their cost structure and reduced their labour rights clauses in the new draft constitution.
competitiveness (see more on Appendix Table 28). The constitutional referendum was planned for April
Accessing labour with the necessary skills moreover 2015. However, heightening political tensions, delayed
appeared problematic for firms located in Tanzania.10 voter registration, and security sectarian postponed the
process. Issues with concerns were mainly related to the
Zanzibar updated its investment policy in 2019. The division of Mainland and Zanzibar, ethnic relations, as
Zanzibar Investment Promotion Agency (ZIPA) and the well as ownership of oil and gas reserves. This review did
Zanzibar Free Economic Zones Authority (ZAFREZA) offer not include the proposed Ministry of Constitutional
Free Economic Zone incentives. As of 2018, Zanzibar had Affairs 2017/2018 budget, raising a concern that the
five Free Economic Zones, two of which were freeports.11 constitution review was never a priority for the current
Data are scarce on EPZ employees’ scope and the government.12
protection of workers’ rights in practice.
Tanzania Mainland
LABOUR LEGISLATION At the policy level, skills development, industrial, and
revision of the Pension Act 2018 was in progress in recent
Tanzania Mainland and the semi-autonomous Zanzibar years. The government aims to launch the National
have separate labour laws. International Labour Internship Scheme to address the challenging youth
Organisation (ILO) registered 306 labour-related unemployment on account of lack of experience.
legislation in May 2021, and few new laws/decrees Graduates are offered internship programme for
were registered in recent years (see Appendix Table between six months and one year (see more in
24). One of the most major law reforms in recent years Unemployment sub-section). The status of central labour-
was the Public Service Social Security Fund Act from related laws is summarised below.
2018. This bill improved that every employee or staff of
the authority whose service is not transferred to a public Employment and Labour Relations Act13
office shall be paid terminal benefits by the applicable Employment and Labour Relations Act (ELRA) of 2004
laws and regulations governing the terms and conditions sets fundamental rights at work and regulates hours of
of service immediately before the termination. Like many work, remuneration, leave, termination of employment,
other countries, Tanzania’s labour regulations did not trade unions and employers’ organisations,
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organisational rights, collective bargaining, strikes and whether an organisation’s constitution contains suitable
lockouts, and sets dispute resolution under the Commission provisions to protect its members’ interests. The law
for Mediation and Arbitration. The labour laws cover all applies to public and private-sector workers and bans
workers, including foreign and migrant workers. The right Zanzibari workers from joining labour unions on the
to freedom of association is strictly regulated. At the Mainland. The law prohibits a union’s use of its funds,
same time, ELRA did not stipulate a reasonable period directly or indirectly, to pay any fines or penalties
for processing applications to register trade unions. incurred by trade union officials in the discharge of their
official duties. In Zanzibar, both government and
ELRA’s reform in 2017 introduced improvements private-sector workers have the right to strike if they
concerning child labour prohibition, employment follow procedures outlined in the labour law. For
standards, and trade union matters. example, workers in essential sectors may not strike;
others must give mediation authorities at least 30 days
Labour Institutions Act14 to resolve the dispute and provide 14-day advance
Labour Institutions Act of 2004 applies to the United notice of any proposed strike action.17
Republic of Tanzania. It establishes the tripartite
institutions: Labour, Economic and Social Council (LESCO), The Employment Act
Commission for Mediation and Arbitration (CMA), Employment Act from 2005 regulates fundamental rights
Essential Services Committee (ESC), Sectoral Wage and protection, employment procedures and foreign
boards, Prime Minister’s Office – Labour, Youth, employment, contracts of service and employment
Employment and Persons with Disabilities’ (PMO-LYED) standards and rights (hours at work, wages, leave,
Labour Administration and Inspection Section, and the vacation, penalties, termination of employment, etc.). The
Labour Court. In 2017, newly appointed members to the law also establishes the Labour Advisory Board, wage-
LESC, CMA, and Wage Boards were approved. The fixing machinery, wages protection, and the Labour
amended Act in 2017 also changed Wage Board Commission and Labour Inspection Section.
consultation and Wage Order Review within three years
from the date of issue (see more in Social Dialogue
section). Observations on labour legislation
International Trade Union Confederation (ITUC)
registered Tanzania’s labour legislation on the rights of
Zanzibar freedom of association, the rights of collective bargaining,
Zanzibar operates with a series of employment policies, and the rights of strikes with flaws to the international
youth employment, minimum wages, poverty reduction, standards:18
industrial, small- and medium enterprises, cooperative,
agricultural, trade, and education at the policy level.15 • The law prohibits anti-union discrimination but does
Zanzibar also took one step closer to launching the not provide adequate means of protection against
Apprenticeship Policy in March 2020. The status of it.
central labour-related laws is summarised below. • Power to refuse official registration on arbitrary,
unjustified, or ambiguous grounds.
Labour Relations Act16 • Excessive representativity or a minimum number of
Labour Relations Act of 2005 regulates fundamental members required for the establishment of a union.
employees’ rights, establishes the framework for • Sanctions imposed for organising or joining an
registration of trade unions and employers’ organisation not officially recognised.
organisations, organisational rights, collective
• Restrictions on trade unions’ right to establish
bargaining and agreements, labour disputes and right to
branches, federation, and confederation or affiliate
strike, dispute prevention, and resolution and establishes
with national and international organisations.
the Zanzibar Industrial Court.
• Restrictions on the right to elect representatives and
The law requires any union with 50 or more members to self-administer in full freedom.
be registered, a threshold few companies could meet • Administrative authorities’ power to unilaterally
(see more in Ratified ILO Conventions sub-section). It also dissolve, suspend or de-register trade union
sets literacy standards for trade union officers. The law organisations.
provides the registrar considerable powers to restrict
registration by setting forth criteria for determining
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The Sustainable Development Goal’s indicator 8.8.2 The list in Appendix Table 27 shows that Tanzania
seeks to measure the level of national compliance with ratified the eight fundamental conventions and one of the
fundamental labour rights: freedom of association and Governance Conventions: Tripartite Consultation
collective bargaining (FACB). Based on ILO textual Convention (C144), leaving out the two labour inspection
sources and national legislation, Tanzania ranked at conventions and the Employment Policy Convention. The
1.77 from 2015 to 2017 (0 out of 10; 0 is best). country also ratified 28 Technical Conventions out of
Compared to neighbouring countries, the ranking is a which 13 are Up-To-Date and actively promoted.
medium level (see more details in Table 2).
The independent ILO body, known as the Committee of
Table 2: Level of national compliance with labour rights Experts on the Application of Conventions and
(freedom of association and collective bargaining) among Recommendations (CEACR), forwarded a series of
Tanzania and neighbouring countries, 2016-2018 observations and direct requests to central conventions
Country Value
for Tanzania. For example, concerning the Equal
DR Congo 3.34 Remuneration Convention (C100), the committee noted
Malawi 0.37 with concern that men earned significantly more than
Mozambique 2.00 women and urged the government to provide information
Tanzania 1.77 on the proactive measures taken to address the gender
Uganda 1.46 wage gap, both in the public and private sectors. The
Zambia 2.21 application of the Discrimination (Employment and
Note: The value has a range from 0 to 10, with 0 being the best possible Occupation) Convention’s (C111) standards also made
score (indicating higher levels of compliance with FACB rights) and 10 CEACR urged the government to address without delay
the worst (indicating lower levels of compliance with FACB rights based
on ILO textual sources and national legislation.
discriminatory advertising and hiring practices to
Sources: ILO, Key Indicators of the Labour Market (KILM). eliminate gender stereotypes, including stereotyped
assumptions by employers of women’s or men’s suitability
Other aspects are that the government did not for specific jobs (see more in Gender sub-section).
effectively enforce the law protecting the rights to
collective bargaining. Some private-sector employers CEACR listed observations dealing with bringing the
adopted anti-union policies or tactics on both the Employment and Labour Relations Act into conformity
Mainland and Zanzibar, although discriminatory with the Freedom of Association and Protection of the
activities by an employer against union members are Right to Organise Convention (C087). The committee
illegal. Trade Union Congress of Tanzania (TUCTA) noted that Zanzibar’s Labour Relations Act does not refer
claimed that international mining interests bribed to the absolute majority and cannot be understood as
government officials to ignore workers’ complaints and imposing a 50% threshold for an organisation to be
write false favourable reports on mines’ work condition.19 authorised to engage in collective bargaining. They
requested the government to take the necessary
The informal economy is widespread marred by not measures to remove any ambiguity concerning the
following labour and business regulation in practice, meaning of the term “majority” and clarifying that the
primarily due to lack of awareness or incentives (see most representative trade union shall have an exclusive
more in Informal Economy sub-section). It gives a right to bargain with the employer in line with the Right
reflection that labour legislation’s coverage is largely to Organise and Collective Bargaining Convention
void. (C098). Additionally, CEACR requested the government
amend several provisions to bring the bill into full
conformity with the Freedom of Association and
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Protection of the Right to Organise Convention (C087). EAC established a customs union in 2005 and agreed to
For example, several categories are governed by their establish a complete, common market with free
laws but are not excluded from the right to organise. movement for workers, goods, services, and capital in
Trade unions should have the power to manage their 2010. The agreement contains labour provision with
funds without undue restrictions from the legislation; the cooperation on employment and working conditions with
prohibition of the right to strike in the public service an emphasis on gender equality, as well as
should be limited to public servants exercising authority discriminatory law and practices. Freedom of association
in the name of the state or essential services in the strict and collective bargaining is enshrined in the EAC common
sense of the term, that is services the interruption of which market regarding that an EAC migrant worker has the
would endanger the life, personal safety, or health of the same rights as a citizen.25 The free movement of labour
whole or part of the population.20 within the EAC raises questions of how to achieve equal
opportunities and equal social and labour rights for
migrant workers, for example, if workers can bring
Trade Agreements pensions across borders. The free movement of labour is
Trade agreements, including labour provisions, are on a source of concern in some of the EAC countries, as the
the rise and becoming progressively more accepted. countries’ workforces have differences in productivity
Studies argue, though, that the measures of labour and educational level. The actual economic integration
conditions (i.e., mean real monthly earnings, mean weekly implementation slowed down the last few years,
work hours per employee, fatal occupational injury rate, especially lifting trade barriers and the free labour
and the number of the ILO’s Fundamental Conventions movement. Labour provision of COMESA agreement also
ratified) find no evidence for possible pro-labour- extends to cooperation on employment conditions and
condition effects of Regional Trade Agreements (RTA) labour law.26
labour clauses overall.21
The 2000 Cotonou Agreement set the framework for
Tanzania has been a member of the World Trade European Union (EU) relations with African, Caribbean,
Organisation (WTO) since January 1995. The latest and Pacific (ACP) countries. It is the most comprehensive
review of the trade policies and practices took place in partnership agreement between developing countries
March 2019.22 Three dispute settlement cases as a third and the EU, covering the EU’s relations with 79 countries,
party involved in Tanzania.23 The country’s binding including 48 countries from sub-Saharan Africa, involving
coverage of WTO Tariff Commitments is one of the Tanzania. The Cotonou Agreement aims to reduce and
lowest among LDCs, at 16%. The Agreement on Subsidies eventually eradicate poverty and contribute to the
and Countervailing Measures (SCM Agreement) gradual integration of the ACP countries into the world
addresses two separates but closely related topics: economy. It is based on three pillars: development
multilateral disciplines regulating the provision of cooperation, economic and trade cooperation, and
subsidies and the use of countervailing measures to offset political dimension. The agreement reaffirms commitment
the injury caused by subsidised imports. Some argue that to ILO’s fundamental conventions and collaboration on
since WTO rules prohibit the export subsidies granted by various labour and social issues. Application to the
EPZs, and should eventually be phased out. Nevertheless, Cotonou Agreement was extended to December 2020,
EPZs are continuing to expand throughout the world and and negotiation on the future deal has been in progress.
are likely to continue to exist. Article 27 of the SCM The negotiations work towards a substantially revised
Agreement excludes the least developed countries (LDCs) agreement with a common foundation at the ACP level
from the prohibition on export subsidies, understood as combined with three regional tailored partnerships for
those WTO members that fall within the United Nations Africa, the Caribbean, and the Pacific. The future deal
definition of LDCs, including Tanzania.24 expects to cover priority areas such as democracy and
human rights, economic growth and investment, climate
Tanzania has four regional trade agreements in force: change, poverty eradication, peace and security, and
Common Market for Eastern and Southern Africa migration and mobility.27 Tanzania is already
(COMESA), East African Community (EAC), Global beneficiary to the EU’s Generalized System of
System of Trade Preferences among Developing Preferences (GSP) in the Everything but Arms (EBA)
Countries (GSTP), and Southern African Development scheme where all imports to the EU from the LDCs are
Community (SADC). duty-free and quota-free, except for arms and
ammunition.
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Tanzania is eligible for the United States’ African • Internal Audit Unit.
Growth and Opportunity Act (AGOA). It also qualifies • Procurement Management Unit.
for textile and apparel benefits. • ICT and Statistics Unit.
• Legal Services Unit.
Tanzania is a member of both the International Centre
for Settlement of Investment Disputes (ICSID) and the • Government Communication Unit.
Multilateral Investment Guarantee Agency (MIGA).
Revolutionary Government of Zanzibar’s Ministry of
Tanzania is a signatory to the New York Convention on
Labour, Empowerment, Elders, Women and Children is
the Recognition and Enforcement of Arbitration Awards.
functioning.
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five members (62%) were women, and around 3.3% Table 4: Paid employees with membership in trade unions
were organised workers from the informal economy (see or employees’ associations in Tanzania Mainland, %, 2014
Sector %
Table 3).
Central and local government 81 %
Parastatal organisations 63 %
Table 3: Status of unionism in Mainland, 2019
Private sector (agriculture) 1.1 %
Number of trade unions 23 * Private informal economy 1.6 %
Members of trade unions 860,000 ** Private sector (non-agriculture) 16 %
Household duties 27 %
Membership growth, 2010-2019 83 % Total 27 %
Women members of trade unions 62 % *** Source: Tanzania National Bureau of Statistics, Integrated Labour Force
Survey from 2014.
Trade union density (employment) 3.2 %
Trade union density (employees) 19 % The relatively low trade union density weakened
* Aggregating 13 TUCTA unions and 10 independent unions. ** private-sector workers’ bargaining power compared to
Estimation of independent unions membership rate is underestimated (see those from the public sector. Besides, the liberalisation
more in Appendix Table 25). *** TUCTA’s estimations. processes gradually reduced the public sector’s leading
Source: TUCTA; own calculations on trade union density based on ILO’s role in economic production. The public sector payroll for
employment projections.
"ghost workers" was cleaned up in 2016, pushing many
workers dismissed without terminal benefits because of
The membership rate grew by 83% from 2010 to 2019:
their illegal existence in employment, and application of
it initiated at the beginning of the 2010s, got stalled
casualisation of employment contracts were on the rise.
during 2014-2018, but rose rapidly in 2019, which
These aspects stymied the membership rate. Besides,
caused a rapid enrolment of organised teachers. This
Mainland’s trade union movement has not prioritised to
progress was outpaced by the fast-growing workforce
affiliate organised workers from the informal economy.
during the 2010s: the current trade union density of
In contrast, neighbouring countries have experienced a
employees was lower than the peak in 2013 (Figure 3).
massive influx of affiliated organised workers from the
Figure 3: TUCTA’s membership rate and trade union density
informal economy in recent years.30
of employees (%), 2008-2019
900000 25% Trade Unions Congress of Tanzania (TUCTA)
800000 TUCTA was established in 2001 under the Trade Unions
20% 20%
20%
20% 20% Act of 1998, and it is the sole national trade union
700000 19%
19% 19% 19% federation in Tanzania Mainland. The organisation is
600000 17%
16%
15%
recognised as a player in the social dialogue and
14%
500000 tripartite institutions. TUCTA has ties to the government
400000 and regular meetings with state institutions, additionally
10%
300000 affiliated with the International Trade Union
Confederation (ITUC).
200000 5%
100000
The latest election process concluded in November 2016.
0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
0% One out of three (36%) were women and 8% below 30
years (men/women) in leadership positions and decision-
Affiliated members (left)
Share of members to employees (%) (right) making bodies. The congress operates with gender and
Source: TUCTA; own calculations on CBAs coverage and share of youth policies/strategies as well as formal gender/youth
employees based on data from ILO’s projections. committees. TUCTA’s next election will be conducted
before the end of 2021.
Across sub-sectors, employees in central and local
government have the highest proportion of trade union TUCTA registered thirteen trade unions that represented
members (81%), followed by parastatal organisations close to 846,000 affiliated workers in 2019. Ten
(63%). Both had a small share of employment from the relatively new independent unions are also operating,
total employment. In contrast, the private sectors have representing around 14,000 workers as a minor group
much smaller proportions of trade union members marred at 2.3% of the total trade union membership rate.
by the widespread informal economy dominated of
micro, small, or medium enterprises (see more in Table 4 TUCTA’s members’ shares are concentred in the central
and Workforce section). and local government and parastatal organisations by
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81% and 63%, respectively: Half (50%) of TUCTA’s In 2015, it became obligatory that trade union members
members is concentrated in Tanzania’s Teacher Union pay contributions; those who were not became excluded.
(TTU). A massive inflow of organised teachers drove the As a result, the membership dropped from 21,000 in
significant rise of TUCTA’s membership in 2019: TTU’s 2015 to 17,000 in 2016, costed a drop of 18%. The
members increased from 244,612 in 2018 to 419,028 membership rate rebounded afterwards, reaching
in 2019, equalled a growth of 71%. It furthermore slightly more than 20,000 in 2019, but plummeted in
boosted members’ CBA coverage (see more in Social 2020 as an impact of the COVID-19 due to closed
Dialogue section). Tanzania Union of Industrial and workplaces, exercised job cuts, redundancy, and
Commercial Workers (TUICO) also experienced an contracts terminations (Figure 4).
upsurge in membership. It increased 35% from 2016 to
2019, reaching almost 99,000 workers and mainly from Figure 4: ZATUC’s members and trade union density of
an upsurge of affiliated organised workers from the employees (%), 2012-2020
25000 35%
informal economy. Two more trade unions – the Tanzania
Social Services Industry Workers Union (TASIWU) and 31%
30%
20000 28%
the Tanzania Union of Private Security Employees 28%
(TUPSE) – are underway to join TUCTA. Appendix Table 24% 24% 24%
25%
22%
25 provides more details of the affiliated trade unions 15000
20%
membership. 18%
15%
TUCTA has relatively few affiliated organised workers 10000
0 0%
Zanzibar 2012 2014 2015 2016 2017 2018 2019 2020
In Zanzibar, labour issues’ concerns were neglected for Affiliated members (left)
years, until 2001, the Zanzibar’s House of Share of members to employees (%) (right)
Representatives enacted the Zanzibar Trade Union Act, Source: ZATUC; own calculations on CBAs coverage and share of
employees based on data from ILO’s projections
which allowed trade unions to register. The national
trade union centre was established in 2003, branded as
Zanzibar Trade Union Congress (ZATUC)
Zanzibar Trade Union Congress (ZATUC). This
ZATUC became gradually recognised with increased
organisation covers all trade unions in Zanzibar.
influence in decision-making on the labour market,
conducting negotiations and signing collective
A more extensive merger process of trade unions in the
agreements. The organisation is also part of the
public sector reduced the number of affiliates from
President’s task team on Covid-19. The ITUC affiliates
eleven to eight in 2020; fusions in the private sector are
ZATUC.
in progress. Estimating trade union density of
employment was 2.4% and employees of 18% in 2020 To promote a higher influx of members, ZATUC adopted
(Table 5). a strategic plan. A national union committee was set up
with an informal economy desk in 2015 that functions to
Table 5: Status of unionism in Zanzibar, 2020
affiliate organised workers from the informal economy.
Number of trade unions 8 Paying required trade union contributions for all was a
Trade union membership 17,672 central issue for unionism. Some workers from the
informal economy were successfully organised in
Membership growth, 2019-2020 -12%
associations, paying a flat rate at around 500-1,000
Women’s share 38% shillings (equivalent to US$0.2-0.4) per month, and
Trade union density (employment) 2.4 % enjoyed a proportional representation, by trade unions.
Only 6% of all members were affiliated workers from
Trade union density (employees) 18 %
the informal economy but slowly on the rise (Table 5).
Share of affiliated members from the Due to the COVID-19 pandemic, ZATUC lost members in
5.9 %
informal economy
Source: ZATUC; own calculations on trade union density and membership the hospitality, transport, service industries and the
growth. informal economy in 2020.
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ZATUC’s constitution gives equal gender equality, but it Ease of hiring foreign labour * 130
is not a compulsory 50% for women to be leaders. Data Internal labour mobility * 88
revealed that 73 out of 170 positions (43%) in
Reliance on professional management * 60
leadership positions and decision-making bodies were
women and 22 posts (13%) among young leaders in Pay and productivity * 87
2020. According to ZATUCs’ register, two out of five Ratio of wage and salaried female workers to
99
male workers **
(41%) of members were women.
Labour tax rate ** 73
* Survey data. ** Ranked by per cent.
Around one out of two public teachers were members of Note: Rank from 1 to 141 (1 is highest).
the Zanzibar Teachers’ Union (ZATU), and they Source: The Global Competitiveness Report, 2019, 8th pillar: Labour
represented ZATUC’s highest share at 34%. Regionally, market efficiency.
ZATU is active in the federation for East African Teachers’
Unions (FEATU) that recently gained legal registration in Employers have the right to initiate a lockout, providing
Tanzania. This organisation is in the process of finalising they comply with certain legal requirements and
procedures.
the establishment of a permanent office in Arusha and
receiving official observer status in the East Africa
Community (EAC) in line with the East African Trade Union Tanzania Mainland
The Association of Tanzania Employers (ATE) was formed
Confederation (EATUC) but only on issues on teachers’
rights and education matters. The second-largest in 1960 and is the central institution representing the
affiliated union in ZATUC is the Zanzibar Seafarers organised employers’ interests. The organisation
affiliates employers in all sectors, excluding the civil
Union (ZASU), with a share of 13%. See more details in
Appendix Table 26. service. ATE’s direct members grew from 1,300 in 2015
to 1,400 at the end of the 2010s, and indirect members
from 6,000 to 7,500, drawn from private business firms,
companies, and some parastatal organisations.
Employers’ Organisations
Based on ILO’s projections, employers represented 2.8%
ATE registered several local partners, including as
of Tanzania’s employment in 2020 (see Figure 8 ahead).
tripartite partner to Prime Minister’s Office and TUCTA;
The Global Competitiveness Index provides the
regionally, affiliated to SADC Private Sector Forum
Tanzanian employers’ view on a wide range of aspects,
(SPSSF), East African Business Council (EABC), Founding
including labour market efficiency. The latter is
member of the East African Employers Organisation
elaborated upon surveys among employers and other
(EAEO), and East African Business Council (EABC); and
statistical data. This labour market efficiency ranked
internationally, International Organisation of Employers
Tanzania at 86 out of 141 countries (1st is best).31 Out of
(IOE), Confederation of Norwegian Enterprise (NHO)
twelve indicators, the highest-ranking was redundancy
and China Enterprise Confederation (CEC), among
costs (cost in weekly wages of advance notice
others.32
requirements, severance payments, and penalties due
when terminating a redundant worker) at 25, followed
Most members were based in Dar es Salaam (70%), and
by reliance on professional management at 60. The
the rest were in other parts of the Mainland (30%). The
worst rankings were ease of hiring foreign labour (130)
members were classified into ten divisions: agriculture, oil
and flexibility of wage determination (104). In the light
and gas, banking and financing, mining and
of cooperation in labour-employer relations was at
construction, commerce and trade, transportation and
medium-level, ranking 77 (see more in Table 6).
communication, hospitality and tourism, industries and
manufacturing, social services, and private security.
Table 6: Labour market efficiency in Tanzania, 2019
Indicator Rank
ATE’s main objective is to enhance sustainable socio-
Total 86 economic development in coordination with the
Redundancy costs (weeks of salary) ** 25 government and trade union movement. The association
Hiring and firing practices * 68 provides advice and representation for services of
Cooperation in labour-employer relations * 77 industrial relations, law, management to its members. It is
governed by an annual general meeting and an
Flexibility of wage determination * 104
executive council, as well as with representatives in the
Active labour market policies * 69 most central bi/tripartite organs.
Worker’s rights * 70
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ATE advised on measures that employers could take in in the Pay-As-You-Earn (PAYE) review for all workers
response to the ongoing COVID-19 crisis and published and discussing the harmonisation of the pension formula
a Circular that advises what employers need to know is in progress.
about the pandemic and employment law and the
possible precautions.33
Tanzania Mainland
Zanzibar Although the legal framework for social dialogue in
Employers’ Association of Zanzibar (ZANEMA) was Tanzania Mainland is set, it is still limited in practice and
established in 1998 to advance employers’ interests and often ineffective. It is mostly due to weak enforcement
influence policy and good practices related to industrial mechanisms, fragile and some dormant social dialogue
relations, employment, and the business environment. institutions, and overloaded dispute resolution
Data were scarce on the organisation’s affiliated mechanisms. It has contributed to some complications and
members. ZANEMA has good working relations with contentious labour relations. A survey undertook by ATE
ZATUC. The organisation faces constraints in terms of detected that employers not fully embraced the
manpower resources, though. ZANEMA is a member of possibilities of collective bargaining, which is likely to be
the East African Employers Organization (EAEO). the same for the employees. It is often interrelated to a
lack of awareness or incentives. Nevertheless, social
dialogue has some improvements. Trade unions and the
SOCIAL DIALOGUE employers’ organisation were undergoing joint activities
Social dialogue encompasses all types of negotiation, such as bipartite meetings in recent years; and several
consultation, or exchange of information between tripartite meetings on how the reformed Social Security
representatives of social partners on common interest Fund scheme should operate.
issues relating to economic and social policy. It can be
informal or institutionalised, and often it is a combination Collective bargaining agreements must be registered
of the two. It can take place at the national, regional or with the Labour Commission. Public-service employees,
enterprise level.34 except for limited exceptions, such as workers involved
in “national service” and prison guards, may also engage
Organised employers and workers are represented in in collective bargaining. Public-sector employees have
many essential forums, including the International Labour the right to bargain collectively through the Trade Union
Conference (ILC) and ILO’s complaints procedures. of Government and Health Workers (TUGHE). TUGHE
Tanzania ratified ILO’s Tripartite Consultation conducts negotiations with the government through
Convention (C144) back in 1983 and the Collective workers’ councils that are conducted regularly. These
Bargaining Convention (C154) in 1998. The country also councils are established with public departments or
ratified the Human Resources Development Convention institutions in about 98% of the government workplaces.
(No. 142) in 1983 that calls for consultations with social Workers’ councils discuss different agendas, including
partners in developing vocational training programmes salary increase, financial regulations, and human
(revisit Appendix Table 27). Reports argue that the resources policies. Whatever is agreed and signed in the
government did not effectively enforce the law workers’ councils, they become the Collective Bargaining
protecting the right to collective bargaining. 35 Agreements (CBAs). It becomes enforceable by the law.
Not all public sector employees have the right to
Bi- and tri-partite social dialogue mechanisms and bargaining collectively through TUGHE, though, because
institutions go back for many decades. While certain it depends on the public institutions, e.g., local
industrial relations’ systems allow workplace cooperation government employees have their union, organised
to be established voluntarily in Tanzania, these must be under Tanzania Local Government Workers Union
formed at the request or with trade unions’ approval. (TALGWU), and parastatal organisations are under
During the 2010s, social partners’ interaction improved TUICO such as TANESCO, NSSF, TANTRADE, SIDO,
these mechanisms and processes: Several bi- or tri- Water Utilities Authority, consultant organisations
partite joint guidelines/codes of good conduct and companies and Banking sector.
Memorandum of Understanding (MoUs) were launched.
It led to conflict resolution committees at the workplace There are some legal flaws in the rights to collective
level to solve conflicts among employers and workers, bargaining concerning international standards. The
reducing risk escalating.36 Social dialogue is also legislation is less prescriptive and provides minimum
applied to tackle child labour, not to mention consulting requirements that widen the spectrum for employers and
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employees to negotiate the terms and conditions of Research of CBAs from eleven developing countries,
employment, as well as agree on work standards. ITUC including eight from Africa, counting Tanzania, showed
has additionally registered the right to collective that the country’s surveyed CBAs enclosed wage clause,
bargaining is recognised by law but strictly regulated but few with pay scale or wages tied to skills, not to
(revisit Observations on labour legislation sub-section).37 mention few with employer contributions to disability
Besides, Tanzania Mainland’s labour regulations voided fund and none with unemployment fund. These CBAs are
unpaid leave as a working arrangement option. The more frequently introducing standard sickness and
unprecedented times triggered by the COVID-19 disability as well as health/medical assistance clauses.
pandemic challenging businesses’ financial strains, the Concerning Tanzania’s CBA clauses on working hours
employer and employee may engage in dialogue coverage are below Kenya’s scope but superseding
regarding an unpaid leave arrangement. The employee Uganda’s. In Tanzania, the paid leave clause was
must agree to this arrangement, and the employer should introduced to three out of four CBAs while just one out of
not unilaterally arrive at such a conclusion. Failure to two regarding paid maternity leave clause; one out of
consult an employee may lead the employee to file an ten about the childcare clause.38
unfair termination claim at the Commission for Mediation
and Arbitration (CMA) (see more ahead). TUCTA reported that employers discouraged workers
from collective bargaining and retaliated against
According to TUCTA’s register, 416 CBAs were listed in workers’ rights activists via employment termination and
2020. Workers covered by CBAs was on the rise during other measures.
the 2010s, except for a downturn in 2015 and especially
in 2018. CBAs’ coverage peaked at around 604,000
workers in 2019, with the employees’ share of 14%, but Tripartite institutions in Tanzania Mainland
fell in 2020 (see more on Table 7, Figure 5, and Several tripartite institutions are functioning in Tanzania
Appendix Table 25). Mainland and the leading institutions’ status is
summarised below.
Table 7: Status of Collective Bargaining Agreements (CBAs)
in Tanzania Mainland, 2018-2020
Labour, Economic and Social Council
2018 2019 2020
Number of CBAs 444 444 416
By law, Labour, Economic and Social Council (LESCO)
Workers covered by CBAs 135,145 603,772 380,609 advises the Prime Minister’s Office – Labour, Youth,
Ratio of CBAs coverage to Employment and Persons with Disabilities (PMO-LYED) on
3.3% 14% 8.2% the national labour market policy and additionally any
employees
Ratio of Cas coverage to proposed labour law before it is submitted to cabinet. It
0,5% 2,3% 1,4%
employment furthermore collects and compiles information and
Source: TUCTA; own calculations of CBAs’ shares based on ILO statistics relating to the administration of labour laws.
employment projections.
LESCO operates with an independent chairperson and
sixteen members, all appointed by the mentioned
Figure 5: Number of workers covered by Collective
Bargaining Agreements (CBA) and ratio of CBAs coverage minister, representing the government, employers, and
to employees (%) in Tanzania Mainland, 2008-2020 workers, and four members selected because of their
700000 18% expertise.
600000 16%
14%
Tripartite meetings in LESCO delivered occasional
500000 consultations, including in 2020 to tackle impact of
12%
Covid-19 pandemic. Although the dialogue could lead to
400000 10%
recommendations, these were often not acted upon by
300000 8% the government in practice. For example, LESCO has
6% recommended ratification of the ILO Convention 189 on
200000
4% domestic workers, but it has not yet been realised.
100000 2%
0 0% Essential Services Committee
The Essential Services Committee (ESC) comprises
Workers covered by CBAs (left)
Ratio of CBAs coverage to employees (right) representatives from the government, employers, and
Source: TUCTA; own estimation of ratio of CBAs to employees based on workers. It functions with several aspects: i) to monitor the
data from ILO employment projections. implementation and observance of essential services
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forum and choice of law for determining their contractual The number of CBA increased from seven in 2016 to
disputes.43 twelve in 2019, covering 3,300 and 5,990 workers,
respectively. CBAs’ scope appears to be relatively low,
CMA received 8,279 cases from 2016 to 2019. Table 8 at around 5.5% among employees (see more in Table 9
below shows the number of cases rose significantly in and Appendix Table 26).
2018 and 2019.
Table 9: Status of Collective Bargaining Agreements in
Table 8: Number of cases in the Commission for Meditation Zanzibar, 2019
and Arbitration in Tanzania, 2016-2019 Number of effective CBAs 12
Year 2016 2017 2018 2019 Workers covered by CBAs 5,990
Total number
1,560 1,688 2,401 2,630 Ratio of CBAs coverage to employees 6.6 %
of cases
Source: Commission for Mediation and Arbitration in Tanzania 2020, Ratio of CBAs coverage to employment 0.8 %
compiled by DTDA. Source: ZATUC; own calculations of CBAs’ shares based on ILO
employment projections.
Labour Institutions Act from 2004 established the Labour
Court in Tanzania Mainland as a division of the High
Court. The former court is presided by a judge and two Tripartite institutions in Zanzibar
assessors from the employers’ organisations and trade Several bi- and tripartite institutions are functioning in
unions. The institution is implementing procedures for Zanzibar, and the participation in these fora has
settling its referred labour disputes. The Labour Court has increased in recent years.48 The leading institutions’ status
struggled with a lack of resources and processing slightly is summarised below.
less than half of the cases it receives.44
Labour Advisory Board
Labour inspectors are often hindered in ensuring labour Labour Advisory Board (LAB) consists of nine members:
law compliance about sanctioning an employer through three government members, employers, workers, and all
the courts. It often related to cumbersome processes appointed by the labour minister. The board provides
depending on the seldom-used delegation of advice on labour-related issues, such as proposed
prosecutorial authority from the Director of Public legislation, ILO conventions, industrial relations, and
Prosecutions (see more in Working Conditions section).45 working conditions. It is required to meet four times a
year.49 The board does not function effectively. Bipartite
meetings between trade unions and employers’
Zanzibar association are informal with general discussions. LAB
Labour regulations provide for collective bargaining in was involved in implementing a National Plan of Action
the private sector. Public-sector employees also have the (NPA) from 2016 that established an integrated
rights to bargain collectively through the Government platform for improving individual labour dispute
and Health Employees Trade Union; however, the police resolution system. This institution focuses on strengthening
force and prison service and high-level public officials several aspects: i) procedural legal frameworks through
are barred from joining a trade union. Zanzibar’s law reforms; ii) enhancing the functioning of labour
Dispute Handling Unit addresses labour disputes. Judges institutions through institutional reforms and capacity
and all judicial officers, members of special departments, building; and iii) promoting bipartite grievances and
and employees of the House of Representatives are dispute handling procedures through collective
excluded from labour law protections.46 bargaining and workers’ councils to encourage voluntary
compliance and settlement of disputes.50 There were
Social dialogue is still limited in practice and with some registered regular tripartite meetings in recent years.
infectivity. For example, managerial employees do not
have the right to bargain collectively for salaries and Wages Advisory Board
other employment conditions.47 Be as it may, several The Wages Advisory Board consists of 13 members
bipartite meetings between ZUTAC and ZANEMA representing the government, employers, and workers. It
dealing with National Negotiation Stationary. provides recommendation for minimum wages and
Negotiation meetings with the Ministry of Public Services working conditions. The board is required to meet twice
and Alsumeit University, and discussions with the a year and takes consequential decisions annually. One
President of Zanzibar, took steps to improve the social of the significant recent decisions was the new minimum
dialogue. wage in the private sector in 2016. The board has not
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succeeded to bring a new minimum wage in recent years the High Court of Zanzibar, during the same period,
(see more in Working Conditions section). recorded 92 disputes.55
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TZS 300,000 (US$134) per month (Table 10). Tanzania’s commerce, industry, and trade sectors (32%), followed
gross monthly minimum wage is on the low levels in Africa by the hotel and domestic services (23%). On a broader
and in real terms the growth fell by -2.8% in the 2010s.59 view of total employment, one labour inspector covered
just 280,000 workers. In Zanzibar, general responsibility
Tanzania Mainland’s latest Formal Sector Employment for labour inspection rests with the Ministry of Labour,
and Earnings Survey from 2018/2019 registered Youth, Women and Children Development. They listed
regular employees earned’ wage rate between TZS five labour inspectors in 2017, approximately one
300,000 (US$130) and TZS 399,999 (US$173) per inspector per 14,000 employees (one per 130,000 in
month. The government and private sector employees total employment). The ILO recommends one inspector
also earn wage rates similarly, except parastatals per 40,000 workers in less developed countries.62
employees earn 600,000 (US$260) and above per
month. Regarding cash earnings, the average monthly The ordinary workweek is legally set at 45 hours per
salary of regular citizen employees was TZS 530,651 week, with a maximum of nine hours per day or six days
(US$230) per month with a minimal gender gap at 4.2% per week. Before the mentioned reform of the ELRA in
favouring men. The average monthly salary of 2017, most employers’ practices were to turn employee’s
Parastatal employees was TZS 701,524 (US$304); the employment contracts into casualisation of employment
private employees’ average salary was 565,308 contracts. A contract for a specific period shall not be less
(US$245), while for Government employees, it was than twelve months; that is, it compels the employers to
501,810 (US$217).60 grant the employees a more extended employment
contract. Labour regulations allow the employee who
Table 10: Minimum wages in Tanzania Mainland and agrees with the employer to work during annual leave.
Zanzibar, per month Employers must ensure that no employees are
Current Current
Shilling (TZS) US$ continuously working in any leave cycle without applying
for annual leave.
Tanzania Mainland
Minimum wage (2013-current) 310,777 152 Additionally, any employee is entitled to sick leave for
at least 126 days in a 36-months cycle upon submission
Highest minimum wage (2013- of proving from a certified and recognised medical
400,000 179
current)
officer. Under most circumstances, it is illegal to schedule
Lowest minimum wage (2013-
current)
40,000 18 pregnant or breastfeeding women for work between 10
p.m. and 6 a.m. Table 11 below provides other
Zanzibar standards covered by Tanzania’s labour regulations.
Minimum wage (2013-current) 300,000 134
Table 11: Status of Working Conditions in Tanzania
* Worker is 19 years old with one year of work experience. Fixed-term contracts prohibited for permanent tasks Yes
Source: WageIndicator.org. Maximum length of a single fixed-term contract
No limit
(months)
Mainland’s labour regulations allow employers to apply Maximum number of working days per week 6
to the Ministry of Labour for an exemption from paying Premium for night work (% of hourly pay) 5.0 %
the minimum wage. Pay-As-You-Earn (PAYE) for resident Premium for work overtime work (% of hourly pay) 50 %
employees is deducted at the statutory personal income Paid annual leave (average for working days with 1,
20
tax rates, with a top marginal rate of 30%. For non- 5 and 10 years of tenure, in working days)
resident employees, a flat rate of 15% applies. It is Minimum length of maternity leave 84
worthwhile to mention that workers from the formal sector Recieve 100% of wages on maternity leave Yes
are receiving at least the minimum wages, but this Five fully paid days of sick leave a year Yes
segment covering just around one out of ten workers; the Unemployment protection after one year of
no
rest operate in the informal economy, basically not employment
following the labour regulations. Source: World Bank, Doing Business, Labor Market Regulation in
Tanzania.
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65
60
55
50
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Tanzania - Total Tanzania - youth
EA - Total EA - Youth
Source: ILO, Key Indicators of the Labour Market (KILM).
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Figure 8: Estimations of status of employment in Tanzania, Another glimpse in the employment’s landscape is that
%, 2010-2019 most Tanzanian private enterprises, around 97%, are
60
household micro-enterprises (1-4 employees), most likely
informal; even 66% of these are own account (one
50
person) activities.64 These aspects challenge unionism just
as weak awareness or incentives to comply with labour
40
and business regulations.
30
20 Unemployment
Official data of Tanzania’s unemployment rate show it
10 stood at around 10% from 2015 to 2019.65 It is a more
urban phenomenon than a rural one. For example, Dar
0 es Salaam’s unemployment rate was up at around 22%.
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Employees Employers Youth in Dar es Salaam are six times more likely to be
Own-account workers Contributing family workers unemployed than rural youth. These official data are
Sources: ILO, Key Indicators of the Labour Market (KILM). based on the international ‘relaxed’ definition of
unemployment (workers available but not looking for
Employees are often more present in the formal sector work). Other data based on the ‘strict’ version – all those
with better access to capital, finance, and training. of working age who were not in employment, carried out
Tanzanian employees’ share of 16% is slightly lower activities to seek employment during a specified recent
than sub-Saharan Africa’s of 26% and significantly period and were currently available to take up
below the broader world’s lower-income countries, at employment given a job opportunity – depicted
35%. This situation is mirrored in the labour productivity Tanzania’s unemployment rate at 2.2% and up to 5.5%
trends in Figure 9 below that situates Tanzania in line among youth in 2020 (see more in Table 13Table 13).
with Eastern Africa average but far below sub-Saharan
Africa and the world (lower-medium income). Tanzania’s Table 13: Estimations of unemployment in Tanzania and
relatively low labour productivity caused the education Eastern Africa average, 2019
system’s weaknesses to endow workers’ skills that are Eastern
Type Gender Tanzania
demanded on the labour market to generate more Africa
Total 2.2 % * 3.7 %
formal jobs, including work-oriented curriculums in all
Unemployment Men 1.5 % 2.9 %
schools to foster self-employment initiatives (see more in
Women 2.5 % 3.6 %
Education section).
Total 3.5 % 5.6 %
Youth
Men 2.8 % 5.3%
Figure 9: Estimations of labour productivity trends, 2010- Unemployment
2019 Women 4.2 % 6.0 %
Total 18 % 20 %
20000 Labour
Men 16 % 18 %
18000 underutilisation **
Women 19 % 22 %
16000 * Projected 2020.
14000 ** Workforce that are in unemployment, time-related underemployment,
or the potential workforce.
12000
Source: ILO, Key Indicators of the Labour Market (KILM).
10000
8000 The strict unemployment rate declined at the beginning
6000 of the 2010s but flattened since 2014, which could be
4000 due to awaiting national updated survey data.
2000 Nevertheless, the country stayed significantly lower than
0 the Eastern Africa averages. It is worthwhile to mention
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
that the unemployment rate experienced a projected
Tanzania
Eastern Africa slight upsurge from 2019 to 2020 as an impact of the
Sub-Saharan Africa: Lower-middle income Covid-19 pandemic due to slowed down private
World: Lower-middle income
consumption, disrupted trade and personal remittances
Note: Labour productivity is defined as output per worker (GDP constant
2011 international $ in Purchasing Power Parity (PPP)). flow.
Source: ILO, Key Indicators of the Labour Market (KILM).
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manufacturing sector, at 3.1% (see more details in Table Table 15: GDP share by sector and per worker in Tanzania,
14). Increasing manufacturing employment is part of the 2014
global SDGs, and Tanzania is struggling to reach that GDP share by
GDP share by
Sector sector per
goal (SDG Table, Indicator 9.2.2, Page iv). sector, %
worker, US$
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More details on the sector GDP value-added trend are top countries of destinations, followed by 16% (71,000)
available in Figure 12. in the United Kingdom, Rwanda at 16% (71,000), Kenya
at 5.9% (26,000), and Burundi at 3.4% (15,000).69 Data
Figure 12: Aggregate sector GDP value-added in Tanzania show that Tanzania experienced more people left the
and sub-Saharan Africa (SSA), % of GDP, 2000-2019 country than entering during the last two decades, but
60
the negative net migration flow was slowly declining
50 during the 2010s. As part of this, the EU’s external
migration policies, supporting the implementation of
40 restrictive migration practices and control measures,
forced illegally migrated as returnees just as other
30 countries’ refugees in Tanzania returned (see more
ahead). Besides, personal remittances are not an
20
essential part of the economy (see more in Table 16 and
10
Figure 13).
Indicator Value
Agriculture - Tanzania Industry - Tanzania
Serice - Tanzania Agriculture - SSA Net number of migration (2013-2017) -200,000 *
Industry - SSA Serice - SSA
Source: World Bank, World Development Indicators. -0.72 (2020)
Net migration rate * -1.05 (2015)
-2.42 (2010)
Migration
Migration is divided into three categories: internal Personal remittance (received), % of GDP,
0.8 %
2015-2019, average
migration (rural-urban, rural-rural, and urban-rural), net-
migration (in- and out-migration) and refugeeing. Refugee population, March 2021 264,475
* Net migration is the net total of migrants during a period of five years,
Tanzania experienced a rural-urban internal migration i.e. the total number of immigrants less the annual number of emigrants,
that boosted the urbanisation process. This situation is including both citizens and non-citizens. ** One migrant per thousand of
the population.
similar in other African countries. It did not happen the
Source: World Bank, World Development Indicators; KNOEMA
same way as in Asian countries that created a fast-
growing industry sector. In Tanzania, the shift mostly Figure 13: Net migration trend in Tanzania, 1988-2017
supported the service sector. According to the latest
800000
Integrated Labour Force Survey from 2014, migration-
measures showed that 27% of persons reported 600000
migration to other places from their place of residence.
Dar es Salaam had the highest proportion of persons 400000
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outreach, and collection of information from its diaspora. 265,000 in March 2021.73 Estimations suggested that
In addition, Zanzibar Diaspora Affairs Act defines the these refugees equalled 0.5% of Tanzania’s population
Zanzibari diaspora as someone who is affiliated with, on average from 2015 to 2019, lower than Kenya’s at
and has allegiance to, Zanzibar; it gives the Zanzibari 0.9% and Uganda’s at 2.6%.74
diaspora the right to obtain a Zanzibar identity card and
other privileges, including exemption from needing a Currently, most refugees located in the country are from
work permit, multiple-entry long-term visas, and the right Burundi and DR Congo. Refugees are not allowed to
to long stays in the country. It also establishes a Diaspora leave the camps; most refugees reside in three camps -
Register, which is to serve as a diaspora expert Nyarugusu, Mtendeli and Nduta - located in the country’s
database.70 north-western areas. In 2018, Tanzania withdrew from
the Comprehensive Refugee Response Framework
As a member of the East African Community (EAC), (CRRF). It cost underfunding of aid to refugees and
Tanzania is committed to adopting measures to the free caused shortcomings in water, sanitation, shelter, and
movement of persons and labour from the other five overcrowded schoolrooms. Further, Tanzania’s
member states. Tanzania was reluctant to open its government restricted refugees’ income-generating
borders and lacked neighbouring countries to implement activities within the camps.
the provisions in EAC’s Common Market Protocol.
However, in recent years, the country took steps to
improve the protection of migrant workers. It not only Informal Economy
sends workers out of the country but also attracts labour The informal economy is a central part of Tanzania’s
migrants: The government opened for granted employment structure and interwoven into the economy.
citizenship. For example, in 2014, almost 170,000 A recent analysis from the International Monetary Fund
Burundians living in eastern parts of Tanzania were showed that Tanzania’s informal economy experienced
assigned citizenship. Other survey data from 2013 a declining rate from 60% in 1991 to 39% in 2015.75 It
illustrated that only 0.13% of the total workforce was has, to some degree, been reflected in the employment
regular non-citizen employees. Foreign migrant workers shifts and the relatively low informal payment to public
often faced difficulties seeking legitimate employment in officials (see Table 17).
Tanzania, and discrimination against migrant workers
often occurred. The Non-Citizens (Employment Regulation) According to the Tanzania National Bureau of Statistics,
Act 2015 introduced even stricter rules for hiring foreign the concept of informal employment excludes persons
workers: regulations permit foreign investors to recruit up to engaged in agricultural activities. The informal economy
five expatriates with the possibility of additional work definition includes enterprises owned by individuals or
permits granted under specific conditions. This Act gives the households that are not constituted as separate legal
labour commissioner authority to deny work permits if a entities independent of their owners; no complete set of
Tanzanian worker with the same skills is available. It accounts, produce some of their goods for sale, and their
suggests that most immigrants operate in the informal employment size is below five employees.76
economy.71 Tanzania’s immigration authorities often
conduct “special permit inspections” to verify work Data from the Tanzania Mainland Integrated Labour
permits’ validity. Besides, the process for obtaining work Force Survey 2014 showed that around 43% of total
permits remains immensely bureaucratic, opaque at households (6.3 million persons) were employed in the
times, and slow.72 informal economy. This type of informality was more
prevalent in Dar es Salaam (65%) than in other urban
The inflow of refugees started to rise significantly from zones (57%) and rural areas (32%). The segment
conflict-riddled neighbouring countries during the 1970s. increased by three percentage points since 2006. The
It especially accelerated the 1990s as an impact of the increase of households in informal businesses was
crisis in Rwanda and Burundi. Tanzania’s refugee of particularly in Dar es Salaam due to the growing internal
asylum rate peaked at 883,000 in 1994. The number of rural-urban migration and insufficient formal job
refugees started to decline afterwards, down to the creation. A broader definition of employment in the
lowest rate at 89,000 in 2014. It was rebounding to informal economy (including workers from subsistence
309,000 in 2017, mainly due to Democratic Republic farming) showed that Tanzania Mainland and Zanzibar
Congo’s conflict. These shifts supported the net migration represented 85% and 88%, respectively (Table 17).
flows in Figure 13 above. The inflow of refugees
dropped to 242,000 in 2019 but rebounded at
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Table 17: Status of informal economy in Tanzania and sub- The portability of skills is essential in transitions to
Saharan Africa (SSA) formality, intending to enhance workers’ employability
Themes Country/region Value and facilitate their access to more productive jobs in the
Informal economy (% of Tanzania (2018) 39 % formal sector. The skills gained through experience, on-
GDP) the-job training and apprenticeship in the informal
SSA (2014) 37 %
economy are not usually recognised in the formal sector
Mainland (2014) 85 %
Informal employed in non- or by training institutions. However, Tanzania offers
Zanzibar (2010) 88 %
agricultural employment interesting examples of the recognition of prior
SSA (2014) 66 % learning.79
Informal payments to public Tanzania (2013) 20 %
officials (% of firms) * SSA (2019) 29 % The relatively low poverty reduction in Tanzania persists
* Informal payments to public officials are the percentage of firms in the low social protection coverage caught in the
expected to make informal payments to public officials to "get things
widespread informal economy, not to mention during the
done" regarding customs, taxes, licenses, regulations, services, and the
like. Covid-19 pandemic in 2020, workers in the informal
Source: ILO & DFID, Zanzibar Social Protection Expenditure and economy dramatically lost daily incomes and existential
Performance Review and Social Budget, 2010; Tanzania National Bureau problem due to the weak coverage on social safety nets
of Statistics, Integrated Labour Force Survey from 2014; and IMF,
(see more in Social Protection section).
Shadow Economies Around the World: What Did We Learn Over the Last
20 Years?, IMF Working Paper, January 2018.
Like many other African countries, most new jobs are Child Labour
created in the informal economy, crowding out positions Tanzania ratified the two international conventions on
in the formal sector. Tanzania Mainland’s National effective abolition of child labour (C138 and C182) (see
Employment Policy (NEP) assessed that the informal Appendix Table 27). Regulation of child labour is written
economy could employ 63% of the mounting workforce in the constitution, Employment and Labour Relations Act,
in urban areas and 8.5% in the formal sector.77 The and Law of the Child Employment Act from 2009. It is
informal economy absorbed many since unemployment is worthwhile to mention that the legal minimum age for
not an option. The adopted employment policy in work does not extend to all working children in Tanzania
Zanzibar directed towards increasing job creation by Mainland and Zanzibar, including children engaged in
encouraging self-employment and establishing domestic work. The enforcement of regulation related to
economic-processes zones. It supported investment as child labour has low scopes in practice, such as
well as promoting productivity and competitiveness protections for child engagement in illicit activities and
(revisit Free Trade Zones sub-section). domestic work, not to mention the lack of authorisation
for the labour inspectorate to assess penalties.
Generally, business regulations are cumbersome (see
Appendix Table 28). Although Tanzania Mainland and Although Zanzibar has a policy establishing compulsory
Zanzibar lack a Tripartite National Informal Economic education through the age of 15, it has not been
Forum, policies address issues that affect workers in the approved as a law. The Education Act stipulates a
informal economy.78 For example, Tanzania Mainland’s mandatory education age of 13, below the minimum age
government had introduced a programme of identifying for work. The latest National Action Plan for the
small scale casual entrepreneurs/workers that could Elimination of Child Labour was from 2009. The
benefit from unique ID cards. It allows them excluded government drafted a new national child labour strategy
from local authority taxes on the condition that the in 2018, which has yet to be formally launched.
beneficiary should have a capital of not more than TZS
4 million (US$1,728) on a return of paying TZS 20,000 Assessments suggested that the country made a minimal
(US$8.6) per year on a renewable basis. Another issue advancement in eliminating the worst forms of child
is that trade unions’ affiliation of organised workers from labour in recent years. Tanzania continued to implement
the informal economy has been dormant. Nevertheless, a practice that delayed advancement in eliminating child
some cooperative unions have been established in the labour’s worst forms. The Mainland government explicitly
fishery industry to secure soft loans from financial supports pregnant students’ routine expulsion from public
institutions, improving their businesses and profits. In schools, making them more vulnerable to the worst forms
Zanzibar, ongoing exercises are to draft a need of child labour (see more in Education section).80 ILO’s
assessment for a National Informal Economic Policy. CEACR urged the government to strengthen its efforts to
ensure the progressive elimination of child labour and
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continue taking measures to ensure that the National to mention that Zanzibar’s child rights law from 2011 was
Action Plan for Child Labour’s Elimination is effectively the winner of the 2015 Future Policy Award on securing
implemented.81 children’s rights, beating 29 other nominated policies to
the prize. It earned the award for its balanced coverage
Child labour in Tanzania continues to affect an estimated of child abuse and violence against children and its
4.2 million children aged 5–17 years in 2014, around promotion of child rights.83
29% of the total age group. This share dropped by just
one percentage point over a decade. It pointed towards
that the country was struggling to reach the SDG of Gender
eradicating child labour by 2025 (see more in SDG The government has adopted several laws to enhance
Table, Indicator 8.7.1, Page iv). women’s rights but thwarted by legal systems’ plurality:
customary law, religious law, and the Koran applicable
Since many families still rely on their children’s earnings to Muslims and statutory law: Several discriminatory
to supplement the family income supports the continuously legislative provisions remain in force (see ahead).
relatively high child labour rate. Data of children in Although employers in the formal sector are more
employment was declining from 39% in 2000/01 to attentive to gender provisions against discrimination,
29% in 2009 but rebounded to 33% in 2014. And, these provisions are not effective in the dominant
hazardous work remains likewise rampant, at 22%.82 informal economy.84 A series of policies and plans were
Comparatively, Tanzania’s child labour rates hover launched, striving to address gender gaps and inequities,
above Africa averages (see Table 18). and found some positive changes increasing women’s
part in the ongoing economic transformation, education,
Table 18: Status of child labour in Tanzania and Africa,
latest data from the 2010s
social security, health, and financial policies.
Country/
Type Rate The scope of gender disparities is detected in the global
Region
Children in employment 33 % Gender Inequality Index (GII), Tanzania ranking 140 out
Mainland Child labour 29 % of 162 countries (1 is best) in 2020. This low ranking is
especially due to the relatively high maternal mortality
Hazardous work 22 %
and adolescent birth rates, gaps in the population with
Zanzibar Child labour (2006) 9%
at least secondary education and the labour force
Children in employment 27 % participation rate.85 The other Global Gender Gap
Africa Child labour 20 % Index (GGGI) 2020 ranked Tanzania at 68 out of 153
Hazardous work 8.6 % countries (1 is best). The GGGI tracking progress
Note: Children in employment: unpaid family workers are people who towards closing these gaps over time. The country scores
work without pay in a market-oriented establishment operated by a better on health and survival (49), political
related person living in the same household. Child labour: work that is empowerment (50), and economic participation and
mentally, physically, socially, or morally dangerous and harmful to
children; and interferes with their schooling. Hazardous work: children in opportunity (63). The ranking dropped down in
dangerous and unhealthy conditions that can lead to a child being killed, educational attainment (127).86
injured, or made ill because of poor safety and health standards or
employment conditions. The patriarchal social structure carrying the unequal
Sources: Tanzania National Bureau of Statistics, National Child Labour
Survey 2014; ILO, Accelerating action against child labour, International social power relations between men and women remains
Labour Conference, 99th Session 2010; ILO, Global estimates of child rampant. For example, many women are locked out of
labour: Results and trends, 2012-2016. land ownership. They have limited access to credit and
productive farm inputs and lack support from extension
Most working children are among unpaid family workers services and markets access. Division of responsibilities
(93%), and nine out of ten (92%) are in the agricultural and decision-making within a family puts women in
sector. Child labour is often domestic workers, street limited control over household assets and income. Gender
vendors, shopkeepers, transportation, fishing, clove discriminations are further illustrated by gender wage
picking, small businesses, and gravel making. Children differences, promotions and legal protections, and
also perform dangerous tasks in agriculture, mining, harassment in the workplace. As a reflection, women’s
quarrying, and sometimes because of human trafficking. gap in mean monthly income was 40% lower than men;
even in agriculture, women’s mean monthly income was
In Zanzibar, among 5-17-year-olds, only 9% were almost half that of men.87
reported to be engaged in child labour. It is noteworthy
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women’s, 11% vs 19%, respectively. The country’s NEET distinguish this ESDP from previous plans are providing
rate stayed in line to Kenya (14%), lower than DR Congo twelve years of free and compulsory Basic Education to
(21%), Malawi (33%), Rwanda (33%), and Zambia the entire population and the progressive expansion of
43%); but higher than Burundi (6%) and Uganda (6%). Technical and Vocational Education and Training (see
Tanzania’s relatively low NEET rate compared to some ahead).94 Zanzibar’s education sector is guided by the
neighbouring countries related to a tradition of Zanzibar Education Policy (2006–ongoing) and the
combining school with work or looking for a job (as Zanzibar Education Development Programme II (2017–
secondary activities).92 It furthermore suggested that the 2022).
government appears to take some right direction to
reach the SDG goal by reducing the NEET proportion Government expenditure on education is relatively high
(see more in SDG Table, Indicator 8.6.1, Page iv). at 20% of government expenditure on average during
the 2010s compared to neighbouring countries, e.g.,
Figure 15: The NEET rate in Tanzania and neighbouring Kenya (19%), Uganda (12%), and Zambia (16%). In
countries, %, latest data from 2013 to 2019 Tanzania, half of the expenditures are in primary
50%
43% education, while secondary and tertiary are 18% and
45%
23%.
40%
33% 33%
35%
Tanzania’s youth literacy rate stood flat at 86% from
30%
2010 to 2015, suggesting that the education system’s
25% 21% development was stalled. Table 20 illustrates that four
20%
14% 15% out of five (81%) of employment had less than basic
15%
education and just 14% with basic education. Both
10% 6% 6% intermediate (3.9%) and advanced education (1.1%)
5% were small segments, all with significant gender gaps.
0%
Table 20: Employment by education in Tanzania, % of
employment distribution, 2014
Less than
Note: NEET rate is the proportion of youth not in employment, education, Basic Intermediate Advanced
or training.
basic
Source: ILO, Key Indicators of the Labour Market (KILM). Total 81% 14% 3.9% 1.1%
Men 78% 16% 4.5% 1.5%
The National Adolescent Health and Development Women 84% 12% 3.3% 0.6%
(ADHD) Strategy 2018-2022 focuses on issues affecting Source: ILO, Key Indicators of the Labour Market (KILM).
adolescents in the country. This strategy detected that risk
factors for adolescent health are poor sexual and The former Basic Education Master Plan from the 2000s
reproductive health, including sexually transmitted aimed at ensuring at least 80% of children complete
infections, malnutrition and anaemia, substance abuse, primary education. Data showed that the attainment
mental health concerns, and violence, including gender- rates were on the rise. For example, at least completed
based violence. The combination of socio-cultural and primary education increased from 49% in 2002 to 65%
economic factors such as relatively low education levels, in 2012, significantly higher than the neighbouring
high poverty rates, discriminatory social norms and countries latest rates, e.g., Kenya (51%), Rwanda (36%),
extreme religious practices can adversely affect and Uganda (33%). However, Tanzania has not yet
adolescent health outcomes. Also, policies have not fully reached the 80% target. Besides, at least completed
recognised adolescents as a central demographic lower secondary education rose just from 6% to 11% in
segment, while some legislations are unfriendly to the same period. Close nine out of ten children enrol in
ADHD.93 primary education, and the population has five years’
education attainment on average.95 It gives other
reflections of employability: many children enter early
the labour market mirrored in the relatively high child
EDUCATION labour rate (revisit Child Labour sub-section).
Tanzania Mainland’s current Education Sector Furthermore, the still relatively low education attainment
Development Plan 2016/17 –2020/21 (ESDP) is linked reduces workers’ labour skill capacity that turns into
to the Training Policy of 2014 and other broader lower labour productivity: The most recent Integrated
development plans. The two key policy initiatives that
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Labour Force Survey Analytical Report from 2014 found downturn at the end of the decade, not to mention
that only 3.6% of Tanzania’s workforce is highly skilled. continued considerably lower than the regional average
(Figure 16). At this level, school fees, books, and
In 2016, a thorough audit of employees found a lack of transportation often hindered the enrolment rates.
replacement of public sector retiring teachers,
terminated ‘ghost’ teachers, and teachers caught up with Figure 16: School Enrolment in Tanzania and sub-Saharan
fake academic and professional certificates. Low Africa (SSA), male and female, %, 2010-2019
Net Enrolment in Primary School
teaching time, weak performance incentives for teachers, 100
delayed or insufficient resource flows to schools and 95
absence of student assessments in early grades were
90
haunting the schools’ quality, e.g., 84% of the almost
2,700 primary schools go without handwashing 85
facilities.96 Besides, the fast-growing youth bulge puts 80
further demand for teachers and schools’ facilities.
75
70
Tanzania’s government endorsed a controversial school
ban under the education regulations since 2017, 65
discriminating against pregnant students, adolescent 60
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
mothers, and married girls. It pushed many girls to stop
Tanzania - Male Tanzania - Female
going to school.97 To illustrate its scope, two out of five SSA - Male SSA - Female
girls married before 18 years old. Within the population
Gross Enrolment in Secondary School
of married, secondary-school age girls, 97% are not in 60
school due to marriage or pregnancy. Other alternatives
routes for this latter segment are either enrol in costly 50
private secondary school or Open Schools and Folk
Development Colleges. All these aspects affected a 40
a declining enrolment at the advanced secondary level, Tanzania - Male Tanzania - Female
SSA - Male SSA - Female
partly related to the significant overall decline in the
Note: Net enrolment is the ratio of children of official school age, who
pass rates. are enrolled in school to the population of the corresponding official
school age. Gross enrolment is the ratio of total enrolment, regardless of
age, to the population of the corresponding official school age. Gross
Gross enrolment in tertiary education experienced an enrolment can therefore be higher than 100 percent, but with tertiary or
upsurge at the beginning of the 2010s but faced a university education, the age of the pupils is more diverse.
Source: World Bank, Education Statistics.
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An increasing number of young graduates at different programmes, such as vocational training by distance
education levels entered the labour market, only to find learning, development colleges, university departments,
limited employment opportunities in the formal sector, just and institutes. There was scarce information available on
as self-employment lack proper entrepreneurship these informal TVET systems.
competencies. This situation causes restlessness,
frustration and social insecurity among many young Few Tanzanian students received vocational training at
graduates and the public in general. around 4% of male and 2% of females in the end of the
2010s.99 Some of the central challenges to reach the
Soon after the first Covid-19 case was reported in ESDP’s goals concern TVET’s coordinating mechanisms as
Tanzania in March 2020, the government announced a regulatory; quality assurance bodies face difficulties in
series of closures to schools and some businesses to avert adjusting training courses to the demands of the labour
the pandemic spread. However, the government market and target populations; coordination and
changed its strategy in June 2020, argued the country harmonise the TVET programmes offered by the various
was free of the epidemic and did not impose any providers and ensure a continuation between the
education system lockdowns. In Zanzibar, from the onset vocational and technical curricula; balance financing
of school closures in March 2020, a distance-learning between technical non-higher education funding; and
team at Zanzibar’s Ministry of Education and Vocational define a funding formula to institutionalise the allocation
Training’s (MoEVT) promoted broadcasting radio of resources amongst technical institutions to limit the
programmes that cover literacy, numeracy, and life skills variations in the costs of courses offered by institutions.100
from preschool through the end of primary. This system Besides, TVET is concentrated in urban settings (around
benefited a long tradition of distance learning in the 75%), leaving marginal training opportunities in rural
region. Educational radio broadcasting has been used areas, where about 65% of the population resides.
across Tanzania since the era of independence in the
1960s. The Vocational Education and Training Authority (VETA)
is an autonomous government agency responsible for
overseeing the VET system. This authority is charged with
Vocational training promoting, coordinating, providing, regulating, and
Technical and Vocational Education and Training (TVET) financing VET. VETA provides training through 33
is an integral part of Tanzania’s education system. It aims vocational training centres and institutes. It further
to enable and expand the acquisition of life skills needed provides training to vocational teachers through its
to meet the industry and the economy’s changing needs. Vocational Teachers Training College in Morogoro. The
The ESDP’s (2016/17–2020/21) second pillar focuses institution coordinates more than 700 VET institutions
on a progressive expansion of Technical and Vocational owned by other VET providers in the country, delivering
Education and Training to provide the pool of skilled training in the form of long courses, short courses, and
human resources needed to advance to becoming a semi- tailor-made courses. VETA conducts Labour Market
industrialised middle-income country by 2025. Surveys to determine skills demanded by the labour
market.101 Besides, the civil society and faith-based
The Ministry of Education governs TVET, and this system organisations own 345 Vocational Education and
is divided into formal and non-formal courses. First, a Training Centres, and the private sector owns and runs
formal TVET system is offered through two distinct sub- approximately 375 centres. VETA’s centres are
systems: vocational education and training (VET) and considered most appropriate to most Tanzanian families
technical education and training (TET). TVET programmes due to their affordability emanating from the
are provided at the secondary education level. The VET government’s financial subsidies to cover expenses to
Fund mainly finances VET, while TET is financed through students from lower-income families.
cost-sharing between providers and clients (students,
parents, communities, and private institutions). Various The Technical and Vocational Education Development
actors are involved in VET. Also, private training Program (2013/14-2017/18) estimated that the highly
providers, companies, NGOs and churches, skilled working population must quadruple while
governmental institutions contribute to the TVET sector. medium-skilled needed to at least double to improve the
economic development. It could mean adding about 3
Second, non-formal TVET programmes are offered million high-skilled and nearly seven million medium-
through different means, such as lifelong learning skilled workers by 2025. As previously mentioned, gross
education programmes and adult education enrolment in secondary school did not evolve during the
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2010s. A recent Performance Audit Report on Access to Zone offices. In addition, it detected weak infrastructure
Quality Vocational Education and Training from 2020 for teaching and learning, e.g., only 57% of the
found a significant skills gap in lower-level cadres that necessary teaching tools and equipment were available
needs to be filled over the next 13 years to support the in the visited VETA centres.
country’s goal of attaining a medium-income status. The
audit suggested that the low-skill occupations must Informal training is common. Around 58% of skilled
increase by four folds on average for the country to be workers arrive from informal apprenticeships, compared
on par with other medium-income countries. to 15% from formal vocational training and 15% in
NGO non-formal training. TVET institutions offer regular
Only one out of five (20%) VETA applicants were and tailored short courses for upgrading skills for
selected for VET courses from 2012 to 2017. Teachers elementary occupations and the informal economy.
and trainers’ deficit rose significantly from 42% in Several ministries collaborate to support establishing
2013/14 to 69% in 2018/19. It happened in both the centres for career counselling and guidance on self-
private and government-owned VET centres. The employment opportunities for the informal economy.
relatively low number of students enrolled in the VET
centres concerned insufficient access to most applicants Studies show that Tanzania’s TVET training facilitates an
who met entry qualifications. The mentioned 2020 audit individual easy transition into employment: technical, on-
detected that not all applicants who met entry job training, vocational, and apprenticeship training are
qualifications were admitted to the VET institutions and central in acquiring formal employment. Although the
centres. For example, students’ enrolment was lower than returns to TVET are positive and statistically significant,
those who wanted and met the criteria to be enrolled: TVET graduates receive lower returns than general
from 2013/14 to 2018/19, only 25,156 candidates education graduates.103 This situation guided many
were enrolled, close to 105,649 applicants (see Table students away from vocational training, often considering
21).102 These candidates are a micro-part of the it for failures and underperformers.
secondary education general pupils, at 0.3% on
average from 2016 to 2018. Especially enrolment from The latest business survey from 2013 found that 31% of
disadvantaged groups, such as females, people with Tanzanian firms offered formal training. This rate stood
disability, and people from geographically below most neighbouring countries’ latest rates: Kenya
disadvantaged areas, was low. Among others, the (37%), Malawi (33%), Rwanda (36%), Uganda (35%),
enrolment of female students in VET did not reach the and Zambia (37%), but higher than DR Congo (17%) and
target of increasing enrolment by 50% in the year Mozambique (21%).104 The survey also found that 40%
2017/18; in the financial year 2018/2019, female of Tanzania’s formal firms cited an inadequately
students enrolment increased by 35%. educated workforce as a constraint, and 63% of failed
firms reported that a shortage of workers with the right
Table 21: Number of Applicants and Selected VET Students, skills had contributed to their collapse. Besides, a Skills
2013-2018 and Development Levy (SDL) is payable by the employer
Number Number Ratio of selected to
Year
applicants selected number applied, % at a rate of 4.5% of employees’ cash payments. Still, a
2013 23,339 4,639 20% reduction down to 4% has been proposed to relieve
employers’ overheads.105 Formal firms continue being a
2014 21,512 1,958 9%
minimal group among the widespread informal micro
2015 16,546 3,584 22% and small enterprises.
2016 11,354 4,351 38%
2017 18,254 4,287 23% Social partners participating in national tripartite
2018 14,644 6,337 43% technical and vocational education boards and training
bodies charged with developing policies and
Total 105,649 25,156 24%
programmes. The trade union movement and employers’
Source: Performance Audit Report on Access to Quality Vocational
Education and Training, 2020.
organisations recently accelerated their initiates to
support the vocational education and training system.
The latest 2020 audit found under-funding for VET They raised their participation in the national education
activities as the main reasons for the limited selection of council’s capacity building on VET and VETA, by the same
students in VETA centres. A significant number of centres token the newly established Sector Skills Councils. These
do not meet the requisite occupational quality standards, latter councils are expected to bridge the gap between
not to mention ineffective compliance monitoring by VETA the labour market demand and the labour supply
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provided by TVET institutions. The trade union movement advanced-secondary school education. The leading
and employers’ organisations have started to institutions involved in TVET are the Ministry of Education
collaborate with central authorities to customise and and Vocational Training (MoEVT), the Vocational
adapt TVET supply regarding the labour market’s Training Authority (VTA), the Zanzibar Institute for
demands. Some of the priorities are to support TVET Tourism Development (ZIToD), and the Karume Institute of
courses to make them more professional-oriented, Science and Technology (KIST). Other stakeholders
update curricula and standards with more practice- include the private and public sectors, Non-
learning, certification, improve technical colleges and Governmental Organisations (NGOs), and local
training centres (e.g., involve companies in boards), skills communities that conduct training and benefit from skills
upgrade vocational teachers, and make better use of development. The TVET system comprises four aspects:
employers’ contributions based on Skills Development technical education, VET programme, VET and skills
Levy to TVET education. development programmes, and work-based learning
based on enterprise training and informal
Technology has the potential to augment the abilities and apprenticeship.
productivity of workers at all skills levels. The demand
for technology services is increasing worldwide, including TVET data from Zanzibar are scarce: around 67 public
in Eastern Africa. Demand for digital services such as and private institutions provided TVET in 2013, and 324
mobile cellular, internet, mobile and other digital students enrolled in VET technical secondary schools,
payments is expanding. Tanzania’s education in about 0.4% of total enrolment in secondary
Information and Communications Technology (ICT) has education.107 Besides, enrolment trend for TVET (public
been haunted by the digital divide in imbalances only) was estimated at 0% (average annual growth)
regarding the access to technology learning among the from 2009 to 2015.108 In 2019, Zanzibar launched the
low-income/rural groups. Nevertheless, Tanzania’s first Recognition of Prior Learning (RPL) programme that
individuals using the internet increased from 2.9% of the initially developed pilot competency standards for RPL
population in 2010 to 25% in 2019, reaching the highest in three occupations.
rate among the neighbouring countries. Mobile cellular
subscriptions (per 100 people) also increased
significantly from 47 in 2010 to 82 in 2019, again the SOCIAL PROTECTION
highest rate among the neighbours, except Zambia.106 At
The most recent Social Security Laws and Regulations in
the education level, 17% of students’ enrolment to
the United Republic of Tanzania are the Public Service
vocational training were on ICT on average from 2013
Social Security Fund Act, the Public Service Social
to 2018, which was the second-highest share among nine
Security Fund (General) Regulations, and Social Security
sectors, just superseded by the automotive (20%).
Schemes (Benefits) Regulations, all approved in 2018. It
Generally, computers’ delivery practice to students are
reshuffled the previously social security schemes. The
challenged by technical issues, e.g., lack of adequate
computers, no connection of appropriate electric power, country has not ratified ILO’s six up‐to‐date social
and no internet connection. security conventions (see Appendix Table 27). ILO
registered five out of eight social policy areas in
The Recognition of Prior Learning (RPL) programme was Tanzania covered by at least one programme: maternity
launched in 2013, aiming at open possibilities for people (cash), employment injury, disability/invalidity, survivors,
who did not get a formal education in being recognised old age, missing child and family, sickness (cash), and
and certified in firms and offices with low pay. Around unemployment.109
8,000 people were affiliated in 2017, rose to 22,390 in
November 2018, and aiming to reach 450,000 artisans The country’s low social protection coverage has been
by 2025. haunted by widespread informal economy, missing
relevant policies and guidelines, not to mention the
Zanzibar system’s coordination difficulties.110 Besides, health
In Zanzibar, VET is governed by the Vocational Training clauses from collective bargaining agreements still reach
Act of 2006. Vocational training is conducted outside the just a small segment of employees (revisit Social
regular education system to empower the trainee to Dialogue section). Table 22 shows that around 33% of
secure employment, self-employment, or return to the Tanzania’s population had health coverage in 2019. In
regular education system. Entry qualifications for the 2016, just 3.2% of persons above retirement age
longer VET courses vary from lower-secondary to received a pension, significantly lower than neighbouring
countries, e.g., Kenya (25%), Rwanda (6.5%), and
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Uganda (7.8%) but higher than Malawi (2.1%). The Figure 17: Out-of-pocket expenditure as a percentage of
above indicators’ low levels reflect the significant total expenditure on health in Tanzania and neighbouring
countries, %, 2000-2018
challenges to reach the SDG goal concerning by 2030
80
achieve substantial coverage of the poor and the
vulnerable (see more in SDG table, Indicator 1.3.1, Page 70
iv).
60
Table 23 below illustrates that Tanzania’s health Note: Out of pocket expenditure is any direct outlay by households,
including gratuities and in-kind payments, to health practitioners and
expenditures’ share of GDP was lower than the regional
suppliers of pharmaceuticals, therapeutic appliances, and other goods
average, even much lesser concerning health expenditure and services whose primary intent is to contribute to the restoration or
per capita. Health expenditure per capita was on the enhancement of the health status of individuals or population groups. It is
rise at the beginning of the 2010s, peaking at US$44 in a part of private health expenditure.
Source: World Bank, World Development Indicators.
2013, and achieved a minimal level of US$44 per
capita defined by the High-Level Task Force on
Innovative International Financing for Health Systems
Tanzania Mainland
(HLTF).111 However, this rate dropped to US$37 in 2018.
Tanzania Mainland attempts to move from social security
Table 23: Status of expenditure of health and social towards social protection, directed through three phases.
protection in Tanzania and sub-Saharan Africa (SSA) First, the Extension and Harmonisation phase was
Service Tanzania SSA
promoted from 2014/15 to 2015/16, aiming to extend
Total health expenditure (% of GDP,
4.3% 5.1% coverage towards universal coverage, reform the legal
2010-2018 average)
Current health expenditure per capita and regulatory framework, and mandatory/basic social
US$ 38 US$ 87
(US$ current, 2010-2018 average) protection programs. Second, the current stabilisation
Adequacy of social insurance programs phase from 2016/17 to 2020/21 is in progress. It
(% of total welfare of beneficiary 17% -
households)
focuses on stabilising a system’s functions with new
Source: World Bank, World Development Indicators. reformed institutions; products supplementary schemes,
basic scheme, e.g., universal pension, social health
Figure 17 below visualises how Tanzania’s share of insurance schemes for the informal economy, and life
health-care expenditure financed by private households’ annuity markets services to be provided to the
out-of-pocket payments fell during the last two decades, population. Third, the Growth and Prosperity phase from
supported by the rising government health expenditure. 2021/22 to 2025/26 aims at efficiency, effectiveness,
These out-of-pocket payments reached 24% in 2018, standards, and livelihood.112 According to studies, the
substantially below the regional average, at 33%. The process of developing an overarching national social
country stays in line with neighbouring countries like protection framework was stalled, partially because
Burundi and Kenya. Using health services is increasing in different institutions were anxious to maintain or gain a
Tanzania. It reflected decreasing maternal and child prominent role in a policy area that has received
mortality rates, but they remained relatively high increasing attention amongst donors.113
compared to many other middle-income countries.
Some of the major social protection reforms in recent
years were the enactment of the Public Service Social
Security Fund Act from 2018 that merged the several
social security funds into two institutions: The National
Social Security Fund (NSSF), which now serves for private
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employees; and the Public Service Social Security Fund the law abolishes withdrawal benefits.117 Besides, the
(PSSSF) for public servants. NSSF covers all private- government has reached huge arrears in payments to the
sector employees and self-employed workers (workers social security funds, which threatens the whole social
from the informal economy), and PSSSF all formal public security system.
sector employees on permanent and pensionable terms.
Contributions at 20% of wages are imposed under the The Public Servant Act from 2002 was also amended in
private sector. The employer has the right to recover up 2018 by including a new section, which provided for
to 10% of the employee’s contribution through deduction retirement age. The voluntary retirement age was 55
from wages. In the public sector, the contribution to 20% years, while the compulsory retirement age was 60
of wages is also imposed. Still, the employer (the years. This reform included professors, associate
government) has the right to recover from the employee professors, and medical specialists; their voluntary
up to 5% via deduction from wages. This spending on the retirement age is 60 years, while the mandatory age is
national scheme is high at the national pension system, 65.
not just by EAC standards but also by African regional
standards.114 Members of the schemes have access to There is a weak unemployment benefit scheme and void
several social security benefits stipulated in the ILO the CBAs’ unemployment fund clause. Recent social
Social Security Convention (C102), such as maternity, security regulations introduced to abolish withdrawal
unemployment, employment injury, sickness, old age, benefits from contributors to social security schemes,
disability, survivors, and health insurance, not part of which widely drew workers’ condemnation. The
income benefits for children and families. For example, government assured introducing some unemployment
the changes in the regulations have introduced a benefit schemes to countercheck the severity of the
compulsory two hours of breastfeeding for a maximum imposed social security changes. Trade unions were
of six months after childcare leave for mothers. lobbying for a review of the social protection law,
arguing that some aspects of the regulations violated the
The trade union movement expressed concern over the fundamental principles of human labour rights
proposal of a new computation formula for pensions: articulated in the United Republic of Tanzania’s
25% would be given as a lump sum, and the rest, 75%, constitution. The PSSSF Act from 2018 has intended to
would pay in monthly instalments. TUCTA called for the introduce unemployment benefits to lock in accrued
government to revert to the old formula, under which benefits of a member who leaves employment before
workers received a 50% lump-sum payment upon their retirement date to guarantee a stream of income in
retirement. By the end of December 2018, the old age.
government announced the new formula would not go
into effect until 2023 to provide more time to reach a The government is expanding the Tanzania Social Action
consensus. Fund conditional cash transfer programme, supporting
decreasing poverty and child labour. Apart from public
The two most significant social insurance funds offering major social security schemes, health social security
health and medical coverage are the National Health schemes operate in the informal economy, rural and peri-
Insurance Fund (NHIF) that provides immediate access to urban areas to provide health services to the
health services, and the NSSF. NHIF has expanded its disadvantaged groups/households. For example, NSSF’s
active registered members from 164,708 in 2001 to scheme on health insurance for members in the informal
4,856,062 in 2019, equalled to about 18% of total economy represented around 75,000 members since its
employment.115 NSSF’s affiliated rose from 600,000 establishment, which constituted about 5.8% of the total
members in 2014 to 1,297,299 in 2018, equalled 5% membership.118 Furthermore, the Community Health Fund
of full employment, and contributors’ average pension (CHF) is operating in rural areas and Tiba Kwa Kadi fund
was 30% of the wage.116 (TIKA) in the urban areas. These schemes are voluntary,
and contribution differs from place to place depending
Despite the upsurge of social security/protection on the agreed lump sum by members in certain areas,
coverage, it stays fragmented between the formal sector mainly districts. The schemes have not fully succeeded to
and the informal economy with unpredictable incomes enrol many members due to low health services provided
and unorganised saving mechanisms. The implementation in rural areas.
of the security fund reform has been challenged by many
workers who often lack awareness or incentives to enrol At the beginning of 2020, to tackle the global
in the schemes, e.g., workers being disgruntled because Coronavirus (Covid-19) pandemic, the government took
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some non-economic measures, such as closing schools, compulsory transfers from social security to health
banning public gatherings except religious, suspending schemes. During 2020, ZATUC pushed for improving the
international flights. Tanzania’s government declared ZSSF formula for benefits, not to mention promoting the
Tanzania free of Covid-19 in July 2020 and stopped ZSSF Act’s amendment to include unemployment benefit
publishing data on its number of coronavirus cases. On after realising the Covid-19 pandemic’s impact on
April 29, 2020, the last day official data were released, employment.
there were 509 cases, with 21 deaths in Tanzania. The
country’s stance in Covid-19 has been questionable by In 2013, the ZSSF raised the issue of extending social
WHO and listed at Level 4 status, meaning transmission security coverage to workers from the informal economy.
of the coronavirus is high or rising rapidly, in February Zanzibar’s government decided to introduce the
2021. The country has not imposed any lockdowns or Zanzibar Universal Pension Scheme (ZUPS), provided to
social distancing measures. Public consumption will all older people aged 70 and above. It was launched in
increase due to higher government expenditures on April 2016. This new universal pension was the first of its
health and social protection in response to the kind in Eastern Africa. The scheme attempts to tackle the
pandemic.119 weakening of traditional support systems for older
people caused by the declining subsistence farming,
leaving many older people not receiving adequate
Zanzibar support from family members. Most older people do not
Zanzibar’s government promoted a policy of free have any other source of income, such as an earnings-
medical services to all. This policy ensures that poor related pension.120 According to the new pension scheme,
people are protected from exclusion to access social persons over 70 will receive a monthly non-
services, including health. Access to physical health contributory pension of TZS 20,000 (US$8.7).121 In
infrastructure covers 136 health facilities at different 2016, around 21,000 people started benefitting from
levels in a radius of 5-7 kilometres available in the ZUPS, and in January 2019, 27,758 people (58% were
islands. Delivering the policy’s aims is donor-dependent, women) received it. A recent study revealed that ZUPS
at around 50% of health funding. supported a significant positive result of the pension on
the overall expenditure of beneficiaries’ households and
The Zanzibar Social Security Fund (ZSSF) is the public household spending on food and education. 122
insurance scheme in Zanzibar, covering only formal-
sector workers. Zanzibarian employees could also Workers from the informal economy are voluntary
affiliate to Tanzania Mainland’s NHIF. Others are contributors. A self-employed worker or businessperson
seeking funding for a private health insurance scheme. is required to contribute at least TZS 20,000 (US$8.9)
Zanzibar’s government has worked for an extended per month at the minimum period of nothing less than six
period to establish a broader social protection fund, but months. In return, such a worker is entitled to the scheme’s
it has been prolonged. full benefits. No exact data on contributors from the
informal sector were available.
ZSSF’s members grew from 54,000 in 2008 to around
80,000 in 2017, equalling 10% of employment. The There are also several non-contributory safety-net
fund provides old-age pension, life insurance, invalidity, programs for vulnerable children, the elderly, and the
and maternity benefits. The fund delivers a contributory disabled. Also, Zanzibar has several funds for Zakat, the
scheme with 10% of the employer's salary and 5% by Islamic founded social welfare, with an amount
the employee. The fund’s financial sustainability remains equivalent to 2.5% of annual personal income.
uncertain, and ZATUC has been concerned about
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Table 24: Registered labour market related national legislations in United Republic in Tanzania, 2014-2020
Type Law/ decree
2014
Social security (general standards). Pension Benefits Harmonization Rule, 2014.
Specific categories of workers. Zanzibar Nurses and Midwives Council Act, 2014 (Act No. 5 of 2014)
Old-age, invalidity, and survivors’ Social Security Schemes (Pension Benefits Harmonization) Rules, 2014.
benefit.
Administration and financing. Social Security Schemes (Security Electronic Information) Guideline, 2014.
2015
Employment and Labour Laws (Miscellaneous Amendments) Act, 2015.
General provisions.
Zanzibar Public Leaders Code of Ethics Act, 2015 (Act No. 4 of 2015).
Elimination of child labour and
protection of children / Employment Youth Council of Tanzania Act, 2015.
policy and promotion of employment.
Migrant workers. Non-Citizens (Employment Regulations) Act 2015.
Teacher's Service Commission Act, 2015 (No. 25 of 2015).
Specific categories of workers.
Public Private Partnership Act, 2015 (Act No.8 of 2015).
Zanzibar Environmental Management Act, 2015 (Act No.3 of 2015).
Occupational safety and health.
Zanzibar Disaster Risk Reduction and Management Act, 2015 (Act No.1 of 2015).
Administration and financing Social Security Schemes (Investment) Guidelines, 2015.
2016
Miscellaneous Amendment Act of 2016 (Act No. 5 of 2016).
General provisions. Zanzibar Constitution (Eleventh Amendment) Act, 2016 (No. 8 of 2016).
Access to Information Act, 2016 (No. 6 of 2016).
Elimination of child labour, protection
Law of the Child (Juvenile Court Procedure) Rules, 2016 (G.N. No. 182 of 2016).
of children and young persons.
Equality of opportunity and treatment. Tanzania Commission for AIDS Regulations, 2016 (G.N. No. 145 of 2016).
Education, vocational guidance, and
Zanzibar Institute of Education Act, 2016 (Act No. 4 of 2016).
training.
Occupational Safety and Health (Notification of Occupational Diseases, Injuries and
Occupational safety and health. Dangerous Occurrences) Rules, 2016 (G.N. No. 280/2016).
Tanzania Commission for AIDS Regulations, 2016 (G.N. No. 145 of 2016).
Social security (general standards). Workers, Compensation Regulations, 2016 (G.N. No. 185 of 2016).
Non-Citizens (Employment Regulation) Regulations, 2016 (G.N. No. 331 of 2016).
Migrant workers.
Immigration (Amendment) Regulations, 2016 (N.N. No. 246/2016).
Seafarers. Merchant Shipping (Medical Examinations) Regulations, 2016 (G.N. No. 244 of 2016).
Fishers. Tanzania Fisheries Research Institute Act, 2016 (No. 11 of 2016).
Oil and Gas (Upstream) Act of 2016 (Act No.6 of 2016).
Specific categories of workers.
Tanzania Agricultural Research Institute Act, 2016 (No. 10 of 2016).
2017
General provisions. Zanzibar Electoral Commission Office Act of 2017 (Act No. 1 of 2017).
Employment and Labour Relations (General Regulations), 2017 (G.N. No. 47 of 2017).
Evidence Act, 2016 (Act No.9 of 2016).
Labour administration. Labour Institutions (General Regulations) 2017 (G.N. No. 45 of 2017).
Social security (general standards). Public Service Social Security Fund (Act No. 2 of 2018).
2018
General provisions. The Environmental Management (Environmental Impact Assessment and Audit)
(Amendment) Regulations, 2018 (G.N. No. 474 of 2018).
2019
- -
2020
- -
Source: ILO, NATLEX, Tanzania.
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Table 25: Tanzania Mainland’s status of trade unions and number of CBAs, 2019/2020
Workers
Women’s Trade unions’ No. of
Trade Unions Members covered by
share share CBAs
CBAs
TAFIMU 573 - 4% - -
IGWUTA 676 - 5% - -
TASIWU - Tanzania Social Services Industry
2,851 - 20% - -
Workers Union **
TUPSE - Tanzania Union of Private Security
1,102 - 8% - -
Employees **
MPETU 303 - 2% - -
PRIPPAWUTA 361 - 3% - -
NUMET 1,182 - 8% - -
* The trade union’s share of organised workers from the informal economy: TAMICO of 1.9%, TEWUTA of 9.0%, TPAWU of 0.2%, TUICO of 28%, and
TASU of 14%. ** TASIWU and TUPSE are underway to join TUCTA.
Source: TUCTA; DTDA data-collection tool, 2019/2020.
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Table 26: Zanzibar’s status of trade unions and number of CBAs and their coverage, 2020
Workers
Women Organisations’ No. of
Trade unions Members covered by
share share CBAs *
CBAs *
COTWU-ZNZ - Zanzibar Communication and Transport
2,035 37% 12% 2 400
Workers’ Union
ZASU - Zanzibar Seafarers Union 1,912 0.4% 11% - -
TUICO-Z - Zanzibar Union of Industrial and commercial
1,250 37% 7% 2 90
Workers
ZUPHE - Zanzibar Union for Public and Health
2,313 48% 13% - -
employees
CHODAWU-Z - Zanzibar Conservation, Hotel, Domestic
923 33% 5% 3 900
and Allied Workers’ Union
ZATU - Zanzibar Teachers’ Union 5,934 56% 34% - -
ZAFICOWU - Zanzibar Financial and Commercial
1,022 41% 6% 2 2,000
Workers Union
TEWUTA-Z - Zanzibar Telecommunication Workers
0 ** 0% 0% 1 100
Union
ZAPSWU - Zanzibar Public sector Workers Union 2,283 41% 13% 2 2,500
Total 17,672 38% 100% 12 5,990
* Data cover 2019. No revised or new CBAs signed during 2020 due to impact of COVID-19, caused closure of most companies especially under the
hospitality and tourist sectors.
** TEWUTA Zanzibar amalgamated with COTWU-ZNZ in May 2020. After amalgamation process completed, TEWUTA Z lost its legality and currently
COTWU-ZNZ is in place.
Source: ZATUC and Danish Trade Union Development Agency research.
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Overall 141
Starting a Business 162
Dealing with Construction Permits 149
Getting Electricity 85
Registering Property 146
Getting Credit 67
Protecting Minority Investors 105
Paying Taxes 165
Trading Across Borders 182
Enforcing Contracts 71
Resolving Insolvency 116
Note: Doing Business 2020 indicators are ranking from 1 (top) to 190
(bottom) among other countries. The rankings tell much about the business
environment, but do not measure all aspects of the business surroundings that
matter to firms and investors that affect the competitiveness of the economy.
Still, a high ranking does mean that the government has created a regulatory
environment conducive to operating a business.
Source: World Bank & IFC, Ease of Doing Business 2018 in Tanzania
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