Tanzania

The United Republic of Tanzania (“URT”) is in Eastern Africa. It is a union formed in 1964 by Tanganyika and Zanzibar.  It is bordered by Kenya and Uganda to the North, Rwanda, Burundi and the Democratic Republic of Congo to the West and Zambia, Malawi and Mozambique to the South and the Indian Ocean to the East.  Zanzibar is a semiautonomous state that ceded some of its sovereignty to the URT but has its own government, legislature and judiciary and it is referred to as Zanzibar, while Tanganyika ceded its entire sovereignty to the Union and is referred to as Tanzania Mainland.  

The URT is a multi-party democracy governed by a constitution and Zanzibar also has its own constitution.  

The constitution of the URT provides every person with a duty to safeguard the Union’s natural resources. However, given that protection of the environment is not a Union matter, Tanzania Mainland and Zanzibar have two distinct climate law frameworks.

The Environmental Management Act of 2004 applies to Tanzania Mainland and provides the legal framework guiding environment governance, management, and enforcement in Tanzania Mainland.  On the other hand, the Zanzibar Environment Management Act 2015, applies to Zanzibar.

The Constitution of the URT also protects every person’s right to work for just remuneration and without discrimination.  As with the environment, labour is not a union matter and therefore, labour rights and duties are set out in the Labour Relations Act 2004 for Tanzania Mainland and the Zanzibar Labour Relations Act 2005 for Zanzibar.

Licences for mitigation and adaptation projects may be required by law and it is notable that each part of the URT has its own laws and regulations, therefore a project in Zanzibar and Tanzania Mainland will necessarily be regulated by two separate legal regimes.  

The Electricity Act 2008 together with its subsidiary rules and regulations and the Zanzibar Electricity Corporation Act 2006, regulate energy projects in the URT and Zanzibar respectively and investments in the extractive industry are regulated by the Mining Act, the Petroleum Act in Tanzania Mainland and the Oil and Gas Upstream Act in Zanzibar.  

The Natural Wealth and Resources (Permanent Sovereignty Act), that applies to both Tanzania Mainland and Zanzibar prohibits the adjudication of all disputes arising from extraction, exploitation or acquisition and use of natural wealth and resources by judicial bodies or other organs established in any place other than the United Republic of Tanzania.  Save for disputes relating to natural resources, all other investment disputes are subject to the investment protection laws of Tanzania Mainland and Zanzibar, which permit arbitration of disputes between an investor and the Government of Zanzibar or the URT at the International Centre for the Settlement of Investment Disputes.

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a) Human Wealth

(i) Population

The URT has a youthful population of 61.7 million, 49% of whom are under 17 years of age and 34.5% are under 35 years old.  The median age of the population in the URT is 18 years. 1.8 million of the URT’s population reside in the semi-autonomous archipelago Zanzibar and 59.8 million people reside in Tanzania Mainland.¹

(ii) Education

82% of the population aged 15 and above is literate. 27% of the eligible population register in secondary education and in 2022 there were 57,742 bachelor's degree graduates from tertiary education institutions.²

(iii) Employment

53.4% of the population is working age, that is to say between the ages of 15 and 64. 75.4% of the population of the URT (75.8% in Tanzania Mainland and 61.3% in Zanzibar) is employed.  Employed persons are defined as “all persons above a specified age (15+) who did some work in the reference period either for pay in cash or in kind (paid employees); or who were in self-employment for profit or family gain; and persons temporarily absent from their work but would definitely return to work. Unpaid family workers in family businesses are included in the category of employed persons. Work is defined as any economic activity done for one hour or more during the reference period.”³

Only 14.3% of the population of the URT is in paid employment. 1.8% are employers; 54.3% are classified as own account workers, including in agriculture and the flushing industry; 0.1% are members of producer cooperatives; 29% are contributing family workers and 0.5% are workers not classified by status such as prentices and interns.

b) Economic wealth

(i) GDP per capita

The URT’s GDP in 2024 is USD 79.61 billion and it has a GDP per capita of USD 1,220.

(ii) Projected Growth

The URT’s projected GDP growth is 5.5%⁴

c) Natural wealth

The URT is endowed with natural resources including arable land, a vast coastline, forests, metals and minerals, precious gemstones, industrial minerals, energy source minerals, construction minerals and natural gas.

(i) Metallic Minerals

Silver, gold, copper, cobalt, nickel, iron ore and graphite.

(ii) Precious and Semi-precious Gemstones

Diamonds, tanzanite, ruby, sapphire, emeralds, amethyst, aquamarine, tourmaline, natural pearls, garnets, rhodolite.

(iii) Industrial Minerals

Gypsum, marble, granite, limestone, soda ash, salt and phosphates.

(iv) Energy Source Minerals

Coal, natural gas reserves, oil and uranium.

(v) Construction minerals

Sand, gravel and dimension stones.⁵

d) Renewable energy wealth and potential

The URT is also endowed with renewable/green energy wealth including wind energy, solar power, geothermal energy, hydropower, biomass and liquid biofuels, which are largely untapped. Currently, the country’s total generation capacity from renewable energy (excluding large hydro) is about 4.9%; this includes captive generation in sugar, tannin and sisal factories, solar and small hydro plants.⁶

(i) Wind Energy

10% of the URT’s 945,087 square kilometres has been evaluated as capable of generating wind energy.  Areas capable of producing wind energy are the East coastline, areas of the Great Lakes in the West, the highland plateau regions of the Rift Valley, areas in the Southern Highlands such as Makambako and Singida in Central URT. There are areas in the URT that produce wind speeds averaging at between 5-8 m/s and areas such as Makambako and Singida that produce average wind speeds of 8.9m/s – 9.9m/s.

(ii) Solar Power

The URT has high levels of solar energy, ranging between 2,800-3,500 hours of sunshine per annum, and a global horizontal radiation of 4–7 kWh per m2 per day. Solar resources are especially good in the central region of the country, and it is being developed both for off-grid and grid-connected solutions.

(iii) Geothermal Energy

The URT has significant geothermal potential that has not yet been fully quantified. Estimates using analogue methods indicate a potential exceeding 650 MW, with most prospects located in the East African Rift System. Most geothermal prospects have been identified by their on-surface manifestation, mainly hot springs. Surface assessments started in 1976 and, to date, more than 50 sites have been identified.

Geothermal sites are grouped into three main prospect zones: northeastern (Kilimanjaro, Arusha and Mara regions), southwestern (Rukwa and Mbeya regions) and the eastern coastal belt (Rufiji Basin), which is associated with rifting and magmatic intrusions. Only the southwestern zone has undergone detailed surface exploration studies.

(iv) Hydropower

Tanzania has a capacity to produce more than 3.173 GW of hydropower of which only 561 MW (30% of total electrical power generation) has been realised and another 2612 MW is expected to come online with the commissioning of the Nyerere Dam in Stiegler’s Gorge in 2024. The assessed potential of small hydropower resources (up to 10 MW) is 480 MW.

(v) Biomass/ Biofuels

Biomass is the URT’s single largest energy source, although much of it, in the form of charcoal is produced in traditional and unsustainable illegal harvesting of forests.

About 18MW of the national grid is generated by Biomass and the agro-industry generates an estimated 58MW of its own electricity from Biomass. The potential for modern biomass uses is high, considering that the raw material available is abundant and includes: sugar bagasse (1.5 million million tonne per annum (“MTPY”)), sisal (0.2 MTPY), coffee husk (0.1 MTPY), rice husk (0.2 MTPY), municipal solid waste (4.7 MTPY) and forest residue (1.1 MTPY). Further supplies can be obtained through sustainably harvested fuelwood from fast-growing tree plantations.

(vi) Natural Gas

The URT has approximately 57 trillion cubic feet of discovered natural gas reserves, 47 trillion cubic feet in deep water blocks off the coast of Mtwara and Lindi and about 10 trillion cubic feet on shore.⁷ More than 100 million cubic feet have been exploited to produce 527MW of electrical power in Songo Songo, Kiliwani North and Mnazi Bay Gas Fields.⁸

_{1. National Bureau of Statistics https://www.nbs.go.tz/nbs/takwimu/references/2022_Tanzania_in_Figure_English.pdf.}

_{2. National Bureau of Statistics https://www.nbs.go.tz/nbs/takwimu/references/2022_Tanzania_in_Figure_English.pdf.}

_{3. National Bureau of Statistics Labour Report 2020/2021 https://www.nbs.go.tz/nbs/takwimu/labour/2020_21_ILFS_Analytical_Report.pdf#page51.}

_{4. https://www.imf.org/external/datamapper/profile/TZA.}

_{5. https://www.tumemadini.go.tz/statistics/minerals-available-in-tanzania/.}

_{6. https://www.afdb.org/fileadmin/uploads/afdb/Documents/Generic-Documents/Renewable_Energy_in_Africa_-_Tanzania.pdf.}

_{7. https://www.elibrary.imf.org/view/journals/002/2023/154/article-A001-en.xml.}

_{8. https://www.tr.tzembassy.go.tz/resources/view/tanzania-natural-gas.}

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a) Undertakings, Key Dates and Caveats

The URT, issued its first Nationally Determined Contribution (“NDC”) in 2015 to the United Nations Framework Convention on Climate Change (“UNFCCC”). In 2021, the Minister of State, Vice President’s Office, Union and Environment updated the NDC,⁹ revising the estimates and projections that had been made under the 2015 NDC.

The URT recognises that it is “highly vulnerable to the adverse impact of climate change and needs to put into place adaptation actions in order to safeguard development gains and meet its development goals”.  Despite having very low greenhouse gas (“GHG”) emissions (0.22 tCO2 in 2014), significantly lower than the global average recorded at 7.58 tCO2e7 in the same year, Tanzania has undertaken to address climate change in line with its National development needs by undertaking a low-carbon development pathway.

b) Mitigation Sectors

The URT has undertaken to reduce greenhouse gas emissions economy-wide between 30-35% relative to the Business-As-Usual (“BAU”) scenario by 2030 (138-153 million tons of carbon dioxide equivalent depending on the baseline efficiency improvements, consistent with URT’s sustainable development agenda).  The NDC includes carbon dioxide, methane and nitrous oxide.¹⁰

c) Use of Net Zero Wealth for Own Target

In order to meet the targets provided under the URT's NDC, the country has prioritised 4 mitigation sectors:

(i) Energy

a) Clean power interconnection with neighbouring countries.

b) Promoting clean technologies for power generation and diverse renewable sources such as geothermal, wind hydro, solar and bio energy.

c) Expanding the use of natural gas for power production, cooking, transportation and thermal services through improvement of natural gas supply systems throughout the country.

d) Promoting climate-smart rural electrification, including development of micro and min-grid renewable generation for improved rural electrification.

e) Reducing the consumption of charcoal in urban and rural areas by promoting affordable alternative energy sources through a regulation for charcoal production and use.

(ii) Transport

a) Promoting low emission transport systems through deployment of mass rapid transport system and investments in rail, maritime and road infrastructures including high quality transport system and expansion of bus rapid transit (“BRT”) infrastructures.

b) Promoting the use of renewable (clean) energy in transportation system.

c) Introduction and promotion of non-motorized transport system and facilities and networks in both mega cities and metropolitan cities by 2030.

(iii) Forestry

a) Enhancing and up scaling implementation of participatory forest management programmes.

b) Facilitating effective and co-ordinated implementation of actions that will enhance the contribution from the entire forest sector.

c) Promote nationwide forest landscape restoration programmes and initiatives.

(iv) Waste management

a) Promoting environmental and waste management practices that support reuse, reduce and recycle.

b) Promoting waste to energy technologies.

The cost of the URT’s NDC implementation plan is approximated at USD 19,232,170,000 and its funding depends largely on support from the international community, access to appropriate technologies, availability of appropriate knowledge and skills, institutional linkages and capacity building.

d) Existing collaboration among countries and opportunities for future collaboration

Collaboration with Norway

In 2008, the URT and Norway signed a letter of intent¹¹ to address the challenges of climate change in which the two countries propose to work together in the following areas:

• Climate – Support to national climate policy implementation such as the NDC and increased access to international climate finance

• Local government climate action – Decentralised climate finance and investments

• The partnership will also address climate change as a cross cutting issue in agriculture and energy under the ongoing programs supported by Norway.

• The partnership may include collaboration in support of climate change capacity building and policy implementation through additional channels and initiatives, such as research programs and partnerships between Tanzanian and Norwegian research institutions.

e) Residual for the rest of the world

Collaboration with the World Bank and The United Kingdom in a project to reduce methane in waste and the livestock sector¹²

This project is aimed at reducing methane in food and solid waste produced in Dar es Salaam, the most populace city and in the livestock sector throughout Tanzania. Tanzania is included in the methane initiative,¹³ a project spearheaded by the World Bank in collaboration with the United Arab Emirates, United States of America, Norway and Germany.

Collaboration with the European Union Global Climate Change Alliance PALU (GCCA+)¹⁴

This project has identified 5 eco villages situated in different Argo-ecological zones in Tanzania where farmers are trained to conserve water, prevent soil erosion, use bio fertilization, engage in crop rotation, intercropping and to use energy saving stoves.

The URT welcomes support and investment.  It is aware that it cannot meet its NDC goals without collaboration with international bodies such as UNFCCC, the private sector, non-governmental bodies (“NGOs”) and without entering multilateral and bilateral agreements with development partners in order to raise funds, build capacity, develop technology and attract investments.

_{9. https://unfccc.int/sites/default/files/NDC/2022-06/TANZANIA_NDC_SUBMISSION_30%20JULY%202021.pdf.}

_{10. https://unfccc.int/sites/default/files/NDC/2022-06/TANZANIA_NDC_SUBMISSION_30%20JULY%202021.pdf.}

_{11. https://www.norway.no/contentassets/a99ae9a860cb429ebcb14557769ee458/statement_norway_tanzania.pdf.}

_{12. https://www.worldbank.org/en/news/feature/2024/05/16/tanzania-afe-greener-future-reducing-methane-in-waste-and-livestock-sectors#:~:text=Investing%20in%20Methane%20Mitigation,reuse%2C%20recycling%2C%20and%20treatment.}

_{13. https://www.worldbank.org/en/news/factsheet/2023/12/04/world-bank-steps-up-efforts-to-address-methane-emissions.}

_{14. https://international-partnerships.ec.europa.eu/news-and-events/stories/eco-villages-tanzania-fight-against-climate-change_en#:~:text=Eco%2DAct%20project%20(Ecovillage%20Adaptation,climate%20change%20and%20reducing%20poverty.}

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Climate Adaptation in Tanzania with Ecosystem Restoration and Flood Defence Infrastructure¹⁵

This is a 2012 project funded by the Adaptation Fund and The Global Environment Facility’s Least Developed Country Fund for the purpose of reducing negative impacts of climate change on vulnerable communities in coastal areas caused by flooding and sea level rise.  The project successfully reduced climate vulnerability by building sea walls and urban drainage systems as well as restoring mangrove and coral habitats to buffer waves.

Strengthening Dryland Governance and Planning¹⁶

This is a 2013-2017 project undertaken by the International Institute for the Environment and Development (“IIED”) in partnership with UN Capital Development Fund, government and non-government partners.  IIED provided technical support to design and implement a devolved climate finance mechanism that enabled climate resilient planning and budgeting at the local authority level.  The mechanism used existing government systems to channel climate finance towards investments priorities by communities, which build resilience to the impacts of climate change.

_{15. https://www.unep.org/resources/publication/lessons-learned-climate-adaptation-tanzania-ecosystem-restoration-flood.}

_{16. https://www.iied.org/responding-climate-change-tanzania-strengthening-dryland-governance-planning.}

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a) General

URT is a country created in 1964 by the Treaty known as Articles of the Union between Tanganyika (now known as Tanzania Mainland) and Zanzibar.  Tanganyika and Zanzibar have maintained their respective High Courts, legal system and laws but both members of the URT are subject to the laws of the Union passed by the Union Parliament.

b) Legal Framework

Tanzania Mainland and Zanzibar are common law jurisdictions and all precedents set down by the English Court of Appeal, House of Lords and Privy Council in case law prior to 22 July 1920 or September 1924 bind the Courts of Tanzania Mainland and Zanzibar respectively and those set down post the said dates are persuasive, as are precedents in other common law jurisdictions including Australia, New Zealand and Canada.

c) Structure of the Judiciary

Zanzibar and Tanzania Mainland have independent High Courts, the former headed by the Chief Justice of Zanzibar and the latter headed by the Chief Justice of URT.  The Court of Appeal of the URT is the apex court with jurisdiction to hear appeals and references from the High Court of Tanzania Mainland and High Court of Zanzibar, other than those emanating from the Islamic Courts of Zanzibar with exclusive jurisdiction on matrimonial matters and administration of estates for people practicing Islam.  Both the High Courts of Tanzania Mainland and Zanzibar are superior courts of record, assisted by subordinate regional and district courts.  

d) Jurisdiction of National Courts and tribunals to hear and determine judicial review applications regarding environmental protections

In Tanzania Mainland the Environmental Appeals Tribunal (“EAT”) created under the Environmental Management Act, 2004¹⁷ has jurisdiction to hear and determine applications regarding environmental protection.

In Zanzibar decisions made under the Zanzibar Environmental Management Act 2015¹⁸ are subject to judicial review by the High Court of Zanzibar

(i) Grounds for review

In Tanzania Mainland, any person aggrieved by:

a) the decision or omission of the Minister responsible for the environment made under the National Environmental Management Act 2004;

b) the imposition of or failure to impose any condition, limitation or restriction issued under the National Environmental Management Act 2004;

c) the decision of the Minister responsible for the environment to approve or disapprove an environmental impact statement.

In Zanzibar, a person aggrieved by a decision made under the Zanzibar Environmental Management Act 2015 can apply for judicial review if the decision or omission is:

a) Illegal

b) Irrational

c) Procedurally improper

(ii) Limitation Period

An application to EAT in Mainland Tanzania must be made within 30 days of the occurrence of the event by which the applicant is aggrieved.

An Application for judicial review in Zanzibar must be made within 1 year of the occurrence of the event by which the applicant is aggrieved.

(iii) Available remedies

The EAT in Mainland Tanzania can either:

a) Confirm, vary, set aside the order, notice, direction or decision complained about; or

b) Make such other order as it deems necessary.

In Zanzibar the High Court has the jurisdiction to order the following remedies:

a) Writ of Mandamus

b) Writ of Prohibition

c) Writ of Certiorari

(iv) Appeals

A decision made by EAT is appealable to the High Court of Tanzania Mainland where it is heard by a panel of three judges whose decision is final.

A decision made by the High Court of Zanzibar is appealable to the Court of Appeal of the United Republic of Tanzania under the provisions of the Appellate Jurisdiction Act.¹⁹

(v) Limitation period for Appeal

An appeal from EAT to the High Court of Tanzania Mainland must be filed within a period of 30 days from the date of the decision or order appealed.

An appeal from the High Court of Zanzibar to the Court of Appeal of the United Republic of Tanzania must be filed within a period of 30 days from the date of the decision or order appealed.

_{17. https://tanzlii.org/akn/tz/act/2004/20/eng@2004-12-31/source.pdf.}

_{18. https://www.zanzibarassembly.go.tz/storage/documents/acts/english/all/1674714486.pdf.}

_{19. https://tanzlii.org/akn/tz/act/1979/15/eng@2019-11-30.}

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a) Constitution

The URT has a Constitution²⁰ that applies to both Tanzania Mainland and Zanzibar.  In addition, Zanzibar has its own Constitution.

Both these Constitutions do not make provisions for the protection of the natural environment but both Constitutions make it incumbent upon citizens to protect natural resources, the property of the state authority, all property collectively owned by the people, and also to respect another person’s property.

b) Climate Law Framework

(i) General

Given that protection of the environment is not a Union matter, Tanzania Mainland and Zanzibar have two distinct climate law frameworks.

(ii) Environmental laws

The Environmental Management Act of 2004 applies to Tanzania Mainland and sets out the legal framework guiding environmental governance, management and enforcement in Tanzania Mainland.

This act creates the following institutions:

• The National Environmental Advisory Committee

• National Environment Management Council²¹

• Environmental Appeals Tribunal

• National Environment Trust Fund

The Act also provides for the following rights and duties:

• the right to a clean, safe and healthy environment

• the right to bring an action on environmental issues

• the duty to protect the environment

In addition, the Act lists environmental principles and a duty and obligation to give effect to these environmental principles which include the principle that:

• the environment is the common heritage of present and future generations;

• adverse effects be prevented and minimised through long-term integrated planning and coordination, integration and co-operation of efforts, which consider the entire environment as a whole entity;

• the precautionary principle, which requires that where there is risk of serious irreversible adverse effects occurring, a lack of scientific certainty should not prevent or impair the taking of precautionary measures to protect the environment;

• the polluter pays principle, which requires that any person causing adverse effect on the environment shall be required to pay in full social and environmental costs of avoiding, mitigating, and or remedying those adverse effects;

• the public participation principle, which requires the involvement of the people in the development of policy, plans and processes for the management of the environment;

• access to justice, which gives individuals, the public and interest groups of persons the opportunity to protect their right to participation and to contest decisions that do not take their interests into account.

The Zanzibar Environmental Management Act 2015 applies to Zanzibar and sets out the legal framework guiding environmental governance, management and enforcement in Zanzibar.

This Act creates the following institutions:

• The Environmental Advisory Committee

• The Zanzibar Environment Management Authority²²

• The Environment and Climate Change Unit

The Act also provides for the following rights and duties:

• The right to a clean, safe and healthy environment

• The duty to maintain, safeguard and enhance a clean, safe and healthy environment

• The right to complain to relevant institutions and bring a legal action against a person who causes or is likely to cause harm to the environment

• The duty to inform a responsible authority of any plan or activity that may cause significant harm to the environment

In addition, the Act lists environmental principles and a duty and obligation to give effect to these environmental principles which include;

• the Precautionary principle

• The Polluter pays principle

• The principle of cost stem integrity

• The principle of public participation in the development of policies, plans and processes for the management of the environment

• The principle of international cooperation in management of the environment

• The principle of common but differentiated responsibilities

(iii) Air-Quality focused laws

In Tanzania Mainland, Air quality is regulated by the Environmental Management (Air Quality Standards) Regulations 2007.²³ These regulations set out minimum air quality standards and prohibit emission of hazardous substances, chemicals and materials or gas and set emission limits including from cement factories and motor vehicles.

The regulations require all persons conducting activities that do not comply with minimum air quality standards prescribed under the regulations to obtain an air pollutant permit.

Zanzibar does not have an air quality focused law.

(iv) Climate change specific laws

The Environmental Management (Control and Management of Carbon Trading) Regulations 2022²⁴ regulates carbon trading in Tanzania Mainland. These regulations give the Minster responsible for the environment the duty to issue letters of endorsement/permits for carbon trading projects.

Zanzibar does not have carbon trading laws.

(v) Energy Laws that consider climate change issues including renewable energy

The Rural Energy Act 2005²⁵ established a fund to provide grants to qualified developers of projects to provide energy to rural areas of Tanzania Mainland.  The Fund prioritises grants for renewable energy projects when development partners make special purpose funds available for these projects.

(vi) Licencing, authorisations and permitting requirements

The Environmental Management (Control and Management of Carbon Trading) Regulations 2022 requires all carbon trading projects to be registered with the Registrar and the application for registration must comply with the following requirements:

• Written consent from participating partners

• Written consent from owner of the property involved in the project

• Indication of the involvement of local communities in the project

• Disclosure of costs incurred, verified emission reductions and estimated revenues

• Indication of expected employment creation

• Commit to corporate social responsibility

• Adhere to national priority carbon trading sectors

• Comply with national policies, laws and strategies

• Adhere to transparency and fairness in business

• Adhere to national investment priorities, and ecological, social, cultural, economic safeguards

_{20. https://www.veritaszim.net/sites/veritas_d/files/Tanzania%20Constitution.pdf.}

_{21. https://www.nemc.or.tz/.}

_{22. https://www.zema.go.tz/library/policies-laws/.}

_{23. https://www.nemc.or.tz/uploads/publications/sw-1645446559-Air_Quality_Standards_Regulations_2007.pdf.}

_{24. https://www.vpo.go.tz/uploads/files/The%20Environmental%20Management%20(Control%20and%20Management%20of%20Carbon%20Trading)%20Regulations,%202022.pdf.}

_{25. https://www.lrct.go.tz/uploads/documents/sw-1601920937-8-2005_The%20Rural%20Energy%20Act,%202005%20(Act%20No%208%20of%202005).pdf.}

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a) Laws which may include the regulation of carbon capture and sequestration, carbon taxes and the compliance of carbon markets

The Environmental Management (Control and Management of Carbon Trading) Regulations 2022 regulates carbon trading in Tanzania Mainland. These regulations give the Minister responsible for the environment the duty to issue letters of endorsement/permits for carbon trading projects.

Zanzibar does not have carbon trading laws.

b) Licencing, authorisations and permitting requirements

The Environmental Management (Control and Management of Carbon Trading) Regulations 2022 requires all carbon trading projects to be registered with the Registrar and the application for registration must comply with the following requirements:

• Written consent from participating partners

• Written consent from the owner of the property involved in the project

• Indication of the involvement of local communities in the project

• Disclosure of costs incurred, verified emission reductions and estimated revenues

• Indication of expected employment creation

• Commit to corporate social responsibility

• Adhere to national priority carbon trading sectors

• Comply with national policies, laws and strategies

• Adhere to transparency and fairness in business

• Adhere to national investment priorities, and ecological, social, cultural, economic safeguards

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Other than the Environmental Management Act of Tanzania Mainland and regulations promulgated thereunder, together with the Zanzibar Environment Management Act, the URT does not have specific laws limiting carbon emissions.

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a) General

In the URT the finance legal regime is regulated primarily by the Bank of Tanzania Act 2019²⁶ and the regulations made thereunder. This Act applies to Tanzania Mainland and Zanzibar.

Banks are regulated and financed by the Banking and Financial Institutions Act 2006.²⁷

b) Merger and Acquisition Laws

In Tanzania Mainland, Mergers and Acquisitions are regulated by the Fair Competition Act of 2003.²⁸ This Act establishes the Fair Competition Commission responsible for overseeing and regulating anti-competitive practices.  Mergers and acquisitions that create or strengthen a position of dominance in the market are prohibited.  In addition, mergers and acquisitions that involve turnovers or assets above the threshold amount set by the Fair Competition Commission (“FCC”)²⁹ must be notified to the Commission before proceeding.  The FCC may investigate the merger and prohibit it, if the FCC is of the opinion it is a prohibited merger.  The FCC is required to provide the parties to a merger under investigation a right to be heard before presenting its final decision on the merger, Decisions of the FCC are appealable to the Fair Competition Tribunal.

In Zanzibar mergers and acquisitions are regulated by the Fair Competition and Consumer Protection Act 2018³⁰ that has created the Fair Competition Commission whose functions are inter alia to monitor and control any acts which may adversely affect fair trade in Zanzibar.

Any merger or acquisition that creates or strengthens a position of dominance in a market which distorts competition is prohibited.

Where a merger creates or strengthens a position of dominance under the Act, the Commission has a duty to assess the strength of competition in the relevant market by taking into account inter alia the following factors:

• the actual potential level of import competition in the market

• the ease of entry and exit into the market, including tariff and regulatory barriers

• the level of concentration in the market

• the degree of countervailing power in the market

• the merger which results in the increase prices or profit margins

• the extent to which substitutes are available in the market

• efficiencies in the market, including growth, innovation and product differentiation

• whether the merger will result in the removal of effective competitor

If the Commission determines that the merger will have an adverse effect on competition, it is empowered to prohibit it.

c) Capital Markets Laws

A decision of the Commission is appealable to the Fair Competition Tribunal.

The Capital Markets and Securities Act 1994,³¹ applies to both Tanzania Mainland and Zanzibar.  

The law establishes the Capital Market and Securities whose functions are (among others):

• to maintain surveillance over securities to ensure orderly, fair and equitable dealings in securities

• to register, licence, authorize or regulate stock exchanges investment advisers, securities dealers, and their agents and to control and supervise their activities with a view to maintain proper standards of conduct and professionalism in the securities business

• to formulate principles for the guidance of the industry

d) Joint Venture Laws

There is no specific law for the establishment and regulation of joint ventures in Tanzania Mainland and Zanzibar.  If a joint venture is between companies, the law applicable is The Companies Act, 2002³² of Tanzania Mainland and the Companies Act No. 15 of 2013³³ of Zanzibar and the agreement creating the joint venture will be subject to the Law of Contract Act Cap. 345³⁴ of Tanzania Mainland, the Contract Decree Cap. 149 of Zanzibar.

On the other hand if a joint venture is between individuals or partnerships registered under the Business Names Registration Act Cap. 213³⁵ of Tanzania Mainland and the Business Entity Registration Act of 2012³⁶ of Zanzibar, then the joint venture will be subject to these laws depending on where the business name is registered, and as with companies, the agreement creating the joint venture will be subject to the Law of Contract Act Cap. 345 of Tanzania Mainland, the Contract Decree Cap. 149 of Zanzibar.

_{26. https://www.bot.go.tz/BOTAct2006.pdf.}

_{27. https://www.bot.go.tz/Publications/Acts,%20Regulations,%20Circulars,%20Guidelines/Acts/en/202002130644421316.pdf}

_{28. https://www.fcc.go.tz/pdf/fca_no_8-2003.pdf.}

_{29. https://www.fcc.go.tz/act.}

_{30. https://www.zanzibarassembly.go.tz/storage/documents/acts/english/all/1674717773.pdf.}

_{31. https://fiu.go.tz/CMSact.pdf.}

_{32. https://www.brela.go.tz/uploads/documents/sw-1602521545-COMPANIES%20ACT%20(CAP.%20212).pdf.}

_{33. https://bpra.go.tz/Docs/Acts/3-Companies_Act%20_No.15_of_2013.pdf?_t=1680505965.}

_{34. https://tanzlii.org/akn/tz/act/ord/1961/1/eng@2019-11-30}

_{35. https://www.brela.go.tz/uploads/documents/sw-1602521476-BUSINESS%20NAMES%20(REGISTRATION)%20ACT%20(CAP.213).pdf.}

_{36. https://www.zanzibarassembly.go.tz/storage/documents/acts/english/all/1674712685.pdf.}

_‍

The Law of Contract Act Cap. 345 of Tanzania Mainland, the Contract Decree Cap. 149 of Zanzibar provides the law relating to contracts.

None of the acts make specific provisions to regulate matters related to climate and management and protection of the environment.

‍

a) General

Foreign investment is not a matter that is regulated by the Treaty of the Union therefore the investment regime of the URT is regulated by two distinct acts.

b) Tanzania Mainland

The Tanzania Investment Act 2022,³⁷ applies to Tanzania Mainland.

(i) Repatriation of funds

Section 28 of the Tanzania Investment Act 2022 guarantees the unconditional transferability through any authorised dealer bank in freely convertible currency of:

a) net profits or dividends attributable to the investment;

b) payments in respect of loan servicing where a foreign loan has been obtained;

c) proceeds, net of all taxes and other obligations, in the event of sale or liquidation of the business enterprise or any interest attributable to the investment; and

d) payments of emoluments and other benefits to foreign personnel employed in Tanzania in the business enterprise.

(ii) Access to international arbitration

Section 33(2) of the Tanzania Investment Act provides that:

(2) A dispute between an investor and the Centre or the Government in respect of a business enterprise which is not settled through negotiations may be submitted to arbitration in accordance with any of the following methods as may be mutually agreed by the parties:

(a) in accordance with arbitration laws of Tanzania;

(b) in accordance with the rules of procedure for arbitration of the International Centre for the Settlement of Investment Disputes; or

(c) within the framework of any bilateral or multilateral agreement on investment protection agreed to by the Government of the United Republic and the government of the country where the investor originates.

(iii) The Natural Wealth and Resources (Permanent Sovereignty) Act 2017

This Act applies to both Mainland Tanzania and Zanzibar.  Section 11 of this Act prohibits the adjudication of all disputes arising from extraction, exploitation or acquisition and use of natural wealth and resources by judicial bodies or other organs established in any place other than the URT.  This prohibition must be acknowledged and incorporated in all agreements and arrangements relating to exploitation of natural wealth and resources.

(iv) Protection against expropriation

Section 29 of the Tanzania Investment Act provides as follows:

(1) Subject to subsections (2) and (3):

(a) a business enterprise shall not be nationalised or expropriated by the Government; and

(b) a person who owns, whether wholly or in part, the capital of any business enterprise shall not be compelled by law to cede his interest in the capital to any other person.

(2) There shall not be any acquisition, whether wholly or in part of a business enterprise to which this Act applies by the State unless the acquisition is under the due process of law which makes provision for:

(a) payment of fair, adequate and prompt compensation; and

(b) a right of access to the Court or a right to arbitration for the determination of the investor’s interest or right and the amount of compensation to which he is entitled.

(3) Any compensation payable under this section shall be paid promptly and authorisation for its repatriation in convertible currency, where applicable, shall be issued.

(v) Import/Export Controls

Import and exports of medicines and biocidals in and out of Tanzania Mainland are controlled and regulated by the Tanzania Medicines and Medical Devices Authority.³⁸

Imports and exports of consumer goods in and out of Tanzania Mainland are regulated by the Tanzania Bureau of Standards.³⁹

Imports and Exports of minerals out of Tanzania Mainland are regulated by the Mining Act 2010.⁴⁰

Imports of petroleum products into Tanzania Mainland are regulated by Energy and Water Utilities Regulatory Authority (“EWURA”)⁴¹ and the Petroleum Bulk Procurement Agency.⁴²

Imports are also regulated by the East African Customs Management Act.⁴³

(vi) Supply Chain risks

The common and obvious supply chain risks in Tanzania Mainland are:

• Infrastructure challenges/weaknesses

• Government policies

• Political environment

• Workforce availability and productivity

• Rule of law

• Governance

c) Zanzibar

The Zanzibar Investment Promotion and Protection Act 2018⁴⁴ applies to Zanzibar

(i) Repatriation of funds

Section 32 of the Zanzibar Investment Promotion and Protection Act guarantees a foreign investor, after taxation, the right to transfer out of Zanzibar in convertible currency at the prevailing official rate of exchange:

a) Dividends arising from or out of his investment of foreign assets;

b) The principal or interest of any foreign loan registered in Zanzibar contracted with respect to the investment;

c) The proceeds on liquidation or sale of the investment or a part thereof; and

d) Any other item of foreign expenditure related to the investment.

(ii) Access to International Arbitration

Section 34 of the Zanzibar Investment Promotion and Protection Act provides as follows:

(1) Where an investor is not satisfied with the compensation granted under section 33(1) of this Act (for expropriation), or whereas disputes arise between such investor and the Authority in respect of Approved Investment, all efforts shall be made through mutual discussion to reach amicable settlement.

(2) Any dispute between an Investor and the Authority in respect of an Approved Investment which is not settled through negotiation, may be submitted to arbitration in accordance with the:

(a) rules and procedures provided under the Arbitration Decree, Cap 25 of the laws of Zanzibar;

(b) framework of any bilateral or multilateral agreement on investment protection agreed to by the Government and the government of the country where the investor originates; or

(c) rules and procedures provided under the Arbitration Rules of the United Nations Commission on International Trade Law in force at the time when the Certificate was issued or International Centre for the Settlement of Investment Disputes.

(iii) Protection against expropriation

A foreign investor’s assets are protected against expropriation under section 33 of the Zanzibar Investment Promotion and Protection Act.

Section 33 provides as follows:

(1) No approved enterprise, approved domestic enterprise or any property belonging to any investor shall be compulsory taken possession of, and no interest in or right over such enterprise or its properties shall be compulsory acquired except in accordance with the provisions concerning the payment of reasonable, full and adequate compensation as provided in section 17 of the Zanzibar Constitution, 1984.

(2) Where compulsory acquisition takes place in accordance with the requirements of subsection (1) of this section:

(a) an order published in the Gazette and signed by the Minister shall be issued; and

(b) before such acquisition has taken place, prompt arrangement shall be made to assess and pay adequate and fair compensation.

(iv) Import/Export Controls

Import and exports of consumer goods in and out of Zanzibar are regulated by the Zanzibar Bureau of Standards.

Imports of pharmaceuticals are regulated by the Zanzibar Food, Drugs and Cosmetics Board.⁴⁵

(v) Supply Chain Risks

Imports of petroleum products into Zanzibar are regulated by the Zanzibar Petroleum Upstream Regulatory Authority.⁴⁶

Imports are also regulated by the East African Customs Management Act:

• Infrastructure

• Government policies

• Political environment

• Workforce availability and productivity

• Rule of law

• Governance

_{37. https://www.kazi.go.tz/uploads/documents/en-1599782489-Tanzania%20Investment%20Act%201997%20.pdf.}

_{38. https://www.tmda.go.tz/.}

_{39. https://www.tbs.go.tz/.}

_{40. https://www.madini.go.tz/media/The-Mining-Act-2010.pdf.}

_{41. https://www.ewura.go.tz/.}

_{42. https://www.pbpa.go.tz/.}

_{43. https://www.eac.int/documents/category/eac-customs-management-act.}

_{44. https://faolex.fao.org/docs/pdf/taz224118.pdf.}

_{45. https://zfda.go.tz/#:~:text=Zanzibar%20Food%20and%20Drug%20Agency%20(ZFDA)%20is%20a%20semi%2D,Ministry%}

_{20of%20Health%20(MoH).&text=Registration%20of%20Premises%2C%20Pharmacist%2C%20Pharmaceutical,application%20and%20Import%2FExport%20Permit.}

_{46. https://www.zpra.go.tz/.}

_‍

a) Tanzania Mainland

• The Land Act 1999⁴⁷

In Tanzania Mainland there is no freehold land.  All land is vested in the President who holds it in trust for the people of the United Republic of Tanzania.  Rights on land are granted by the issuance of a Certificate of Occupancy to citizens and a Certificate of Derivative Rights to non-citizen investors meeting the criteria set out in the Land Act.

A Certificate of Occupancy as well as a Certificate of Derivative rights may be mortgaged to secure a loan.  

• The Village Land Act⁴⁸

This Act provides for the management and administration of land registered as village land separate from the Land Act.

• The Mining Act 2010⁴⁹

All minerals under the surface are held in trust by the President for the people of the URT.  This act sets out licensing provisions for mining rights and obligations including environmental duties imposed on licensees.

• The Petroleum Act⁵⁰

This Act applies to Mainland Tanzania and Zanzibar with respect to the regulation of petroleum upstream operations and matters incidental thereto within territorial land, inland lakes, sea-bed and subsoil of the continental shelf in any land to or in the jurisdiction to which this act applies; and in relation to midstream and downstream petroleum activities, and to every person who conducts any of the regulated activities.

The regulation of petroleum upstream operations, midstream and downstream activities and matters incidental thereto to which this Act applies shall be governed and administered by institutions established or referred to under this Act where such operations or activities are undertaken within Mainland Tanzania and where such operations or activities are undertaken within Tanzania Zanzibar, shall be governed and administered by institutions in accordance with the laws of Tanzania Zanzibar.

• The Oil and Gas Revenues Management Act⁵¹

This Act applies to Mainland Tanzania in relation to management of oil and gas revenues derived from exploration, development and production of oil and gas activities; and to Mainland Tanzania and Zanzibar in relation to management of oil and gas revenues derived from exploration, development and production of oil and gas activities undertaken under joint petroleum operations or petroleum activities in specific areas or overlapping blocks in accordance with the law governing petroleum upstream operations, midstream and downstream petroleum activities.

• The Written Laws (Miscellaneous Amendments) Act 2017⁵²

This Act was passed for the purpose of amending inter alia the Mining Act and the Petroleum Act with a view to enhancing control and compliance and securing national interest in the extractive industry.

• The Natural Wealth and Resources (Permanent Sovereignty) Act 2017⁵³

This Act was passed after the Government resolved to undertake measures to ensure that the natural wealth and resources of Tanzania are used for the greatest benefit and welfare of the People and the United Republic by ensuring that all arrangements or agreements made by the Government protect the interests of the People and the United Republic.  The Act applies to Tanzania Mainland only and provides for ownership and control over natural wealth and resources and for the protection of permanent sovereignty over natural wealth and resources.

• The Natural Wealth and Resources (Review and Re-Negotiation of Unconscionable Terms) Act 2017⁵⁴

This Act empowers the National Assembly to review any agreement or arrangement entered into by the Government of Tanzania with a third party relating to natural wealth and resources for the purpose of determining whether such agreement is unconscionable.  In the event the National Assembly passes a resolution that the agreement is unconscionable or has unconscionable terms, the Government is required by this Act, to renegotiate the impugned agreement or arrangement within a 30-day period.

• The National Environmental Management Act 2004

This Act is discussed above.

• Water Resources Management Act 2009⁵⁵

This Act provides the institutional and legal framework for sustainable management and development of water resources; outlines principles for water resources management; provides for the prevention and control of water pollution; provides for participation of stakeholders and the general public in implementation of the National Water Policy.

• Water Resources Management (Amendment) Act 2022⁵⁶

An Act that amended some provisions of the Water Resources Management Act 2009.

• Water Supply and Sanitation Act 2019⁵⁷

This Act provides for sustainable management and adequate operation and transparent regulation of water supply and sanitation services; establishes water supply and sanitation authorities, Rural Water Agency, National Water Fund and community-based water supply organisations and the appointment of service providers.

• The Land Acquisition Act 1967

Under this Act, the President is permitted to acquire land subject to a Certificate of Occupancy or Derivative Right or village and for general benefit so long as the occupiers of the said land receive fair and prompt compensation.

b) Zanzibar

• The Land Tenure Act 1992

• The Registered Land Act 1990

• The Water Act 2006

• The Town and Planning Act 1955

_{47. https://procedures.tic.go.tz/media/The%20Land%20Act%201999.%20Cap%20113.pdf.}

_{48. https://faolex.fao.org/docs/pdf/tan53306.pdf.}

_{49. https://www.madini.go.tz/media/The-Mining-Act-2010.pdf.}

_{50. https://www.ewura.go.tz/wp-content/uploads/2015/03/PETROLEUM-ACT.pdf.}

_{51. https://www.tra.go.tz/IMAGES/headers/CHAPTER_328-THE_OILD_AND_GAS_REVENUES_MANAGEMENT_ACT-01.pdf.}

_{52. http://www.parliament.go.tz/polis/uploads/bills/1498723111-EXTRACTIVE%20INDUSTRY%20AND%20FINANCIAL%20LAWS-4.pdf.}

_{53. https://www.madini.go.tz/media/Natural-Wealth-and-Resources-Permanent-Sovereignty-Act-2017.pdf.}

_{54. https://www.osg.go.tz/uploads/publications/sw1570609630-6THE%20NATURAL%20RESOURCES%20CONTRACT-ACT,%20BLM%2024-06%20%20JULY,%202017%20clean%20copy%20%20CHAPA.pdf.}

_{55. https://www.maji.go.tz/uploads/publications/sw1640156360-5.%20Water%20Resources%20%20Management%20Act%20No.%2011%20of%202009.pdf.}

_{56. https://www.maji.go.tz/uploads/publications/sw1667368022-The%20Water%20Resources%20Management%20(Amendment)%20Act.%20No.%208%20of%202022.pdf.}

_{57. https://www.maji.go.tz/uploads/publications/sw1562329366-THE%20WATER%20SUPPLY%20AND%20SANITATION%20ACT,%202019.pdf.}

_‍

a) Tanzania Mainland

• Forest Act 2002

• Wildlife Conservation Act

• The National Parks Act Cap. 282

• Fisheries Act 2020

• Marine Parks and Reserves Act 1994

• Ngorongoro Conservation Area Act Cap. 284

• The Urban Planning Act 2007

• The Highways Act 1969

b) Zanzibar

• The Fisheries Act 2010

• The Forest Resources Management and Conservation Act No. 2 of 1996⁵⁸

_{58. https://www.zanzibarassembly.go.tz/storage/documents/acts/english/all/1674627352.pdf.}

_‍

a) Tanzania Mainland

• The Mining Act 2010

• The Land Act

• The Environmental Management Act

• The Village Land Act

b) Zanzibar

• The Land Tenure Act 1992

• The Registered Land Act 1990

• Zanzibar Environmental Management Act, No.3 of 2015

‍

a) Tanzania Mainland

• The Environmental Management Act

• The Environmental Management (Soil Quality Standards) Regulations, 2007

• The Mining Act 2010

b) Zanzibar

• Zanzibar Environmental Management Act, no. 3 of 2015⁵⁹

_{59. https://www.zanzibarassembly.go.tz/storage/documents/acts/english/all/1674714486.pdf.}

_‍

Corporate governance in the URT:

Corporate governance is regulated by the Companies Act, 2002 of Tanzania Mainland and the Companies Act, 2013 of Zanzibar.  Both of these Acts are based on the English Companies Act of 2006 and are interpreted in accordance with case law including common law precedence.

The principal sources of corporate governance in Tanzania Mainland are the following:

• the Companies Act, 2002 governing the incorporation and management of companies in Tanzania Mainland

• the common law

• the Companies (Retention and Disposal of Company Documents) Regulations, 2023⁶⁰

• the Companies Beneficial Ownership Regulations 2023⁶¹

• The Capital Markets and Securities Act⁶² which applies to public companies listed on the Dar es salaam Stock Exchange (“DSE”)

The principal sources of corporate governance in Zanzibar are the following:

• the Companies Act, 2013 governing the incorporation and management of companies in Zanzibar

• the common law

• the Companies Regulations, 2013⁶³

_{60. https://tanzlii.org/akn/tz/act/gn/2023/485/eng@2023-07-21/source.}

_{61. https://www.brela.go.tz/uploads/documents/sw-1621234651-benefit.pdf.}

_{62. https://www.cmsa.go.tz/uploads/publications/en-1576056621-THE%20CAPITAL%20MARKETS%20AND%20SECURITIES%20ACT.pdf.}

_{63. https://bpra.go.tz/Docs/Acts/2-Companies_Regulations_2017.pdf?_t=1680505965.}

_‍

a) Tanzania Mainland

i) The Access to Information Act 2016⁶⁴

This Act applies to public bodies and private bodies registered under any written law which utilizes public funds or are in possession of information which is of significant public interest. Under this Act, these bodies are required to retain information for a minimum of 30 years from the date of generation of the information. In addition, they are required to give access to this information to any person who makes a request.  All information is subject to disclosure other than exempt information under section 6 of the Act, save that there is a legal presumption that information held in excess of 30 years is not exempt unless proven otherwise.  

Defacement, erasure, blocking and refusing to provide information requested under this Act, other than exempt information, constitutes an offence punishable with a fine or imprisonment for a term not exceeding 12 months or both.

ii) The Companies Act⁶⁵

This Act applies to companies formed in Tanzania Mainland and those incorporated elsewhere but operating in Tanzania Mainland under a certificate of compliance.

Section 65 requires the company to notify the Registrar of Companies when the company consolidates share capital or converts shares into stocks.

Section 97 lists the charges on company assets that must be registered.

Section 106 requires the registration of enforcement of a security.

Section 108 obliges the company to create and keep a register of charges

Section 109 gives third parties the right to inspect a company’s register of charges

Section 115 requires that the company keep a registry of members.

Section 118 gives third parties the right to inspect a company’s register.

Section 128 places a duty on the company to submit its annual returns with the Registrar of Companies.

Section 132 places a duty on the company to deliver accounts and other documents as annexures to its annual returns.

A defaulting company and its officers are liable to be fined.

iii) The Environmental Management Act⁶⁶

In addition to other obligations, section 81 of this Act requires that prescribed projects undertake an Environmental Impact Assessment (“EIA”).  The public have a right to notification of an EIA and the National Environmental Management Council (“the Council”) has an obligation to review the EIA by public hearings. The Council also has a right of entrance into project areas for the purpose of conducting an environmental audit.  The Act requires a project developer to keep accurate records and make annual reports to the Council describing how far the project conforms in operation with statements made in the EIA.  The Minister responsible for the environment has the power to seek a statement on the social, health, biotechnological or any other risk impact assessment he may determine of any person whose activities are likely to have an impact on the environment not withstanding that their activities do not qualify for an EIA.

Contraventions of these obligations are criminal offences subject to fines, term of imprisonment or both. In addition, a project may be shut down for contravening this Act.

b) Zanzibar

Zanzibar does not have a general law permitting its citizens free access to information, therefore corporate transparency is subject to disclosure obligations provided in the laws below.

i) The Companies Act 2013⁶⁷

This Act applies to companies formed in Tanzania Mainland and those incorporated elsewhere but operating in Tanzania Mainland under a certificate of compliance.

• Section 101 lists the charges on company assets that must be registered.

• Section 107 requires the registration of enforcement of a security.

• Section 109 obliges the company to create and keep a register of charges.

• Section 110 gives third parties the right to inspect a company’s register of charges.

• Section 116 requires that the company keep a registry of members.

• Section 119 gives third parties the right to inspect a company’s register.

• Section 129 places a duty on the company to submit its annual returns with the Registrar of Companies.

• Section 132 places a duty on the company to deliver accounts and other documents as annexures to its annual returns.

A defaulting company and its officers are liable to be fined.

ii) Zanzibar Environmental Management Act, no. 3 of 2015⁶⁸

Section 39 of this Act requires all persons carrying out or causing to be carried out any activity which is likely to have significant impact on the environment and society to have an Environmental Impact Assessment Certificate issued by the Zanzibar Environmental Management Authority⁶⁹ (“ZEMA”).

ZEMA has the power to hold a public hearing on an EIA report and has a duty to monitor the project through its lifetime in order to ensure that it is in compliance with its EIA and has a duty to conduct periodic environmental audits.  

Contraventions of these obligations are criminal offences subject to fines, term of imprisonment or both. In addition, a project may be shut down for contravening this Act.

_{64. https://www.freedominfo.org/wp-content/uploads/Tanzania-Access-to-Information-Act-2016.pdf.}

_{65. https://www.brela.go.tz/uploads/documents/sw-1602521545-COMPANIES%20ACT%20(CAP.%20212).pdf.}

_{66. https://www.nemc.or.tz/uploads/publications/sw-1576228517-ema%20act2004.pdf.}

_{67. https://bpra.go.tz/Docs/Acts/3-Companies_Act%20_No.15_of_2013.pdf?_t=1680505965.}

_{68. https://www.zanzibarassembly.go.tz/storage/documents/acts/english/all/1674714486.pdf.}

_{69. https://www.zema.go.tz/library/regulation-guidance/.}

_‍

a) Tanzania Mainland

Tanzania Mainland has two regulatory regimes for exploitation of natural resources on its territory and waters: the Mining Act,⁷⁰ which regulates minerals and metal and the Petroleum Act⁷¹ which governs  oil and natural gas.  Under the Petroleum Act, the Tanzania Petroleum Development Corporation (“TPDC”) is the statutory body mandated to carry out oil and gas exploration with or without partners or to licence an independent body corporate to do so,  where economically viable.  TPDC invites interested investors to bid for blocks.   Under both Acts, licencees are required to comply with environmental principles set out in the National Environment Management Act.

b) Zanzibar

Zanzibar has a regulatory regime relating to the exploration of oil and natural gas in Zanzibar territorial waters and land which is set out in the Oil and Gas Upstream Act 2016⁷² including the Health and Environment (Upstream) Regulations 2022.  Under the Oil and Gas Upstream Act, all petroleum operations rights are granted to the Zanzibar Petroleum Development Corporation (“ZPDC”) which may invite interested investors to bid for the chance to enter a joint venture with ZPDC to develop a petroleum block for exploration.    Licencees are required to comply with the Zanzibar Environmental Management Act.

_{70.  http://elibrary.osg.go.tz/handle/123456789/206.}

_{71.  https://www.ewura.go.tz/wp-content/uploads/2015/03/PETROLEUM-ACT.pdf.}

_{72.  https://zpdc.go.tz/acts-regulations-2/.}

‍

The justice system in Tanzania Mainland and Zanzibar is adversarial.  Criminal cases are prosecuted by the Director of Public Prosecutions on behalf of the United Republic of Tanzania in Mainland Tanzania and the Zanzibar Director of Public Prosecutions for the Revolutionary Government of Zanzibar for crimes committed in Zanzibar. The courts’ criminal jurisdiction is generally provided under the Criminal Procedure Acts of Tanzania Mainland and Zanzibar respectively or any other law that has a criminal sanction.  Criminal sanctions in Tanzania Mainland and Zanzibar range from a suspended sentence, fine, corporal punishment, imprisonment and capital punishment for murder and treason.

In civil cases, the Courts in Zanzibar have territorial jurisdiction on claims emanating in Zanzibar but judgments may be executed in Tanzania Mainland if the need arises. The same principle applies for civil cases in Tanzania Mainland.  The remedies available in civil cases include injunctive reliefs, financial compensation and restitution.

Both in Zanzibar and Tanzania Mainland administrative decisions are subject to judicial review. In these cases, the court may prohibit, void an administrative decision or order the administrative authority to take another action altogether.

a) Justifiability

Criminal, civil and administrative law cases are all adjudicated in courts of law both in Zanzibar and Tanzania Mainland, unless a specific legislation has reserved a matter for adjudication by a tribunal or other quasi-judicial body.  The courts in Tanzania Mainland and Zanzibar do not entertain suits or complaints reserved for adjudication by a tribunal or quasi-judicial.

b) Ripeness

The courts in Tanzania Mainland and Zanzibar will proceed with a civil case, only in cases where the complainant presents a justiciable cause of action.  In criminal cases, the State is required to present a charge sheet showing a legally prohibited action that has been undertaken by the alleged offender with intent, in the event the prohibited act is not a strict liability offence.

c) Exhaustion of remedies

In administrative cases, the courts in Zanzibar and Mainland Tanzania require the party seeking relief to exhaust all available remedies before filing for judicial review.

d) Standing

In both civil cases and judicial review, the claimant must have an interest that has been adversely affected by the actions of the defendant or an administrative authority for the courts in Zanzibar and Tanzania Mainland to entertain the suit.

e) Finality

The principle of res judicata and issue estoppel are applicable to cases commenced and adjudicated in Tanzania Mainland and Zanzibar.  The doctrine of double jeopardy is also applicable in criminal cases in Tanzania Mainland and Zanzibar.

f) Political Questions

Courts in Tanzania Mainland and Zanzibar shy away from entertaining overtly political questions although if the issue touches on constitutional rights or other rights upon which the courts have been called to adjudicate, the matter will be entertained so long as it is justiciable.  

g) Advisory Opinions

In general the courts in Tanzania Mainland and Zanzibar do not issue advisory opinions save in very limited situations:

• Interpleader suits

• Interpretation of a statute

• Interpretation of a term of contract

• Interpretation of a law

‍

a) Tanzania Mainland

i) The Labour Relations Act 2004⁷³

This Act makes provision for employee/employer rights and duties.  It prescribes basic employment standards, sets a framework for employee collective bargaining rights and includes provisions for the settlement of labour disputes.

ii) The Employment and Labour Relations General Regulations 2017⁷⁴

The regulations are made under the Labour Relations Act and provide general rules proscribing child labour and the exceptions to this general rule and prescribe employment standards and rules for registration of trade unions.

iii) The Employment and Labour Relations (Code of Good Practice) Rules 2017⁷⁵

These rules prescribe the code of good conduct applicable to both employees and employers and the requisite actions to be undertaken and consequences for breaching the code

iv) The Labour Institutions Act 2006⁷⁶

This Act establishes the Labour Commission and the Labour Court, a division of the High Court of Tanzania together with the subordinate tribunals, the Commission for Mediation and Arbitration.

v) Trade Unions Act 1996⁷⁷

This Act provides substantive conditions for the registration of trade unions.

b) Zanzibar

i) Zanzibar Labour Relations Act 2005⁷⁸

The objects of the Act are described in section 3 of the Act as follows:

• to provide the legal framework for effective and fair employment relations and minimum standards regarding conditions of work;

• to give effect to the core Conventions of the International Labour Organisation on equal remuneration for equal work of equal value, non-discrimination in employment and occupation, abolition of forced labour, elimination of child labour as well as other ratified Conventions;

• to promote economic development through economic efficiency, productivity and social justice;

• to give effect to and regulate the fundamental rights and principles in the Constitution of Zanzibar in so far as they apply to employment;

• to give effect to the public law obligation arising from Tanzania's membership of the International Labour Organisation and ratification of the Conventions of the Organisation;

This Act establishes the Industrial Tribunal which has jurisdiction to adjudicate labour disputes.

_{73. https://webapps.ilo.org/static/english/inwork/cb-policy-guide/tanzaniaemploymentandlabourrelationsact2004sec626to7.pdf.}

_{74. https://www.tucta.or.tz/attachment/employment-rules-and-forms-2017.pdf.}

_{75. https://www.scribd.com/document/633376723/GN-2007-OF-42-THE-EMPLOYMENT-AND-LABOUR-RELATIONS-CODE-OF-GOOD-PRACTICE-RULES-GN-42-OF-2007-pdf.}

_{76. https://tanzlii.org/akn/tz/act/2004/7/eng@2019-11-30.}

_{77. http://parliament.go.tz/polis/uploads/bills/acts/1457520201-ActNo-10-1998.pdf.}

_{78. http://www.rodra.co.za/images/countries/tanzania/legislation/Zanzibar%20Labour%20Relations%20ACT%20%20NO.1%20%202005.pdf.}

‍

a) Tanzania Mainland

Power is supplied by TANESCO, a state-owned company with a historic monopoly to generate, transmit and distribute power.  TANESCO also supplies power to ZECO (Zanzibar Electricity Corporation).  Given the dire need to electrify rural Mainland Tanzania, in recent years the government has allowed the private sector to generate, transmit and supply power in rural areas.

i) The Electricity Act 2008⁷⁹

This Act provides for the facilitation and regulation of generation, transmission, transformation, distribution, supply and use of electric energy, to provide for cross-border trade in electricity and the planning and regulation of rural electrification.

Electricity (Supply Services) Rules 2019⁸⁰

These rules govern regulation and licensing of electricity supply services.

ii) Rural Energy Act 2005⁸¹

Establishes the Rural Energy Agency (REA) to oversee and implement all rural electrification projects in Tanzania Mainland and the Rural Energy Fund to finance these projects.  

iii) Energy and Water Utilities Regulatory Authority (“EWURA”) Act⁸²

This Act established EWURA an autonomous multi-sectors regulatory authority responsible for technical and economic regulation of the electricity, petroleum, natural gas and water sectors.

b) Zanzibar

i) The Zanzibar Electricity Corporation Act 2006

This Act establishes the Zanzibar Electricity Corporation which has the mandate to generate, transmit and distribute power in Zanzibar.  Presently, Zanzibar’s electricity is purchased by ZECO from TANESCO via under water cables from Dar es Salaam to Unguja and from Tanga to Pemba.

_{79. http://nishati.go.tz/uploads/documents/en-1622015360-Electricity_Act_2008.pdf.}

_{80. https://www.ewura.go.tz/wp-content/uploads/2019/06/The-Electricity-Supply-Services-Rules-2019-GN-387.pdf.}

_{81. https://www.lrct.go.tz/uploads/documents/sw-1601920937-8-2005_The%20Rural%20Energy%20Act,%202005%20(Act%20No%208%20of%202005).pdf.}

_{82. https://www.ewura.go.tz/wp-content/uploads/2015/03/EWURA-Act-Cap-414.pdf.}

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a) Annulment and cancellation of exploration or exploitation permits

Annulment and cancellation of exploration or exploitation permits must be done in strict compliance with the provisions of the law under which the permit/licence has been granted in both Tanzania Mainland and in Zanzibar.  However, it should be noted that under the Natural Wealth and Resources (Review and Re-Negotiation of Unconscionable Terms) Act 2017,⁸³ the National Assembly is empowered to review an agreement between the Government and a third party pertaining to the exploitation of natural resources for the purpose of ascertaining whether it contains unconscionable terms. In the event the National Assembly resolves that an agreement does contain unconscionable terms, the Government is required to renegotiate the terms of the agreement in question.  This Act applies to Tanzania Mainland only.

b) Expropriation of property rights by the state

The Constitution of the URT and the Constitution of Zanzibar recognize the right to own property and the right to prompt and fair compensation in the event of expropriation.

c) Lawsuits brought against projects

Public interest litigation or class actions by communities impacted by a project are justiciable in Tanzania Mainland and in Zanzibar. These actions are also justiciable by the East African Court of Justice if they breach the Treaty Establishing the East African Community.⁸⁴

d) Types of ADR available

Arbitration is available in Tanzania Mainland under the Arbitration Act and in Zanzibar under the Arbitration Decree.  In addition, awards from international arbitration are executable in Tanzania Mainland and Zanzibar.  Arbitration remains optional and is subject to agreement between parties.  In Tanzania Mainland the Natural Wealth and Resources (Permanent Sovereignty) Act 2017⁸⁵ prohibits investors from resorting to international dispute resolution mechanisms including arbitration in disputes relating to natural resources.

In Tanzania Mainland, mediation before trial is compulsory in some civil cases.

e) Transparency and Corruption Index

The URT ranks 87/180 on Transparency International’s Corruption Index for 2023⁸⁶ with a score of 40/100.  The URT’s score has improved by 10 points since 2015.

_{83. https://www.osg.go.tz/uploads/publications/sw1570609630-6THE%20NATURAL%20RESOURCES%20CONTRACT-ACT,%20BLM%2024-06%20%20JULY,%202017%20clean%20copy%20%20CHAPA.pdf.}

_{84. https://www.eala.org/documents/view/the-treaty-for-the-establishment-of-the-east-africa-community-1999-2006.}

_{85. https://www.madini.go.tz/media/Natural-Wealth-and-Resources-Permanent-Sovereignty-Act-2017.pdf.}

_{86. https://www.transparency.org/en/countries/tanzania.}

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a) Tanzania Mainland

Under the National Environmental Management Act, it is an offence for any person to pollute or permit any other person to pollute the environment in violation of any standards prescribed under the Act or any other law and any person who violates environmental protection standards and by so doing causes damage is obliged to compensate for the damages and costs for remedying the consequences under the civil and criminal law.  The range of remedies available to an injured person or a person threatened to be injured include:

• temporary or permanent injunctions;

• specific performance orders;

• fines and penalties;

• compensation orders;

• restoration orders;

• conservation orders;

• easement orders;

• compliance orders;

• Imprisonment; and

• Any other order that the Tribunal or the court may deem fit.

b) Zanzibar

The principles regarding liability, compensation, remediation and rehabilitation provided under the National Environment Management Act are set out under the Zanzibar Environmental Management Act.

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a) Tanzania Mainland

i) Policy Guidance

Environmental policy was first formulated in 1997 in the National Environmental Policy, which resulted in the enactment of the National Environmental Management Act 2004.  In 2021, the National Environmental Policy was revised⁸⁷ to address environmental challenges with land degradation, deterioration of water sources, loss of wildlife habitat and biodiversity, deterioration of aquatic ecosystems, deforestation, environmental pollution, climate change, safe use of modern biotechnology.

ii) Case Law

There has not been any significant reported case law since the passing of the National Environment Management Act on interpretation and application of the said act.

b) Zanzibar

i) Policy Guidance

Environmental policy was first formulated in 1992 and revised in 2021⁸⁸ to address the adverse effects of climate change; environmental pollution aggravated by inadequate management of solid waste and wastewater; increasing depletion of fresh water resources as a result of increased demand, failing monsoon rains, deforestation and destruction of water catchments and wetlands; increased demands for land resources and associated land degradation and pollution; inadequate energy supply, unreliable electricity supply and sustainable alternative energy sources; irresponsible tourism development and practices that destroy the natural environment; loss of biodiversity and destruction of habitat both from terrestrial and marine environment; and inadequate scientific research on environmental management and conservation.

ii) Case Law

Like Tanzania Mainland, Zanzibar has not had any significant reported case law since the passing of the Zanzibar Environment Management Act on interpretation and application of the said act.

_{87. https://www.vpo.go.tz/uploads/publications/en-1644923087-NATIONAL%20%20ENVIRONMENTAL%20POLICY%202021%20new.pdf.}  

_{88. https://faolex.fao.org/docs/pdf/taz224707.pdf.}

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The United Republic of Tanzania is a dualist state. Under the Constitution, the President is empowered to sign an international agreement/treaty for and on behalf of the URT, and the power of ratification rests with the National Assembly, the unicameral legislature.  The ratification of an international treaty by the National Assembly does not make the treaty municipal law.  For a ratified treaty to become municipal law in the URT, the government is required to present a bill to Parliament that is then passed by the National Assembly and is assented to by the President.  

This dualist system has resulted in ratified treaties having the approval of the National Assembly, but not having the power of municipal legislation.  Nevertheless, the Court of Appeal has on occasion referred to international treaties ratified by the National Assembly in interpretating municipal law as in Daudi Pete v The DPP⁸⁹, where the Court held

“In interpreting the Bill of Rights, articles 12-29 of the Constitution, account must be taken of that Charter and that the bill of rights and duties embodied in the Constitution, is consistent with the concepts underlying the African Charter of Human and Peoples' Rights as stated in the preamble of the Charter”.

The High Court of Tanzania has also referred to international conventions to interpret municipal law including the Constitution even in instances where the international treaty was ratified but not incorporated into domestic law.  In Rev. Christopher Mtikila v Attorney General⁹⁰ the High Court of Tanzania stated that

“... we have no doubt that international conventions must be taken into account in interpreting, not only our Constitution but also other laws, because Tanzania does not exist in isolation, it is part of a comity of nations. In fact, the whole of the Bill of Rights was promulgated in the Universal Declaration of Human Rights”

_{89. [1993] TLR 22.}

_{90. [2006] TLR 279.}

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The United Republic of Tanzania contributed about 0.04% of the world’s carbon dioxide emissions. A low pollutant with increasing energy needs it is highly unlikely that there will be any potential near-term changes to the URT’s current leal framework.

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