Tanzania unique business quirks
Corruption is the primary cause of poverty in sub-saharan Africa. Learnt few new things about Tanzania recently.
The big Telcos in Tanzania are cheating. They continue to evade taxes and continue to grease the palms of corrupt Govt. officials. Just a couple of months back Tanzanian Govt. has installed Telecommunication Traffic Monitoring System (TTMS) to check the calls on the Telco network and consequently taxes owed to the Govt.
Previous Govt. was not able to even install monitoring equipment and was paying lip service since 2012. New Govt. has been stern on graft. John Magufuli, the Tanzanian president has moved aggressively to crack down on corruption and government waste. Magufuli cancelled celebrations marking Independence Day on Dec. 9, and ordered the $2 million set aside for the festivities be used to construct a 4.3 km road section in Dar es Salaam. Magufuli has fired at least seven government agency heads since coming to office in November 2015.
Post installation of monitoring system, the tax bill from Telcos to revenue authority has gone up by 4-6 times in the recent few months.
Names of Telcos cheating in Tanzania:
India’s Bharti Airtel
India had installed similar monitoring system CMS
Taxation and other authorities can tap into the system, such as:
- Intelligence Bureau
- Narcotics Control Bureau
- Directorate of Enforcement
- Central Board of Direct Taxes
- Directorate of Revenue Intelligence
- Central Bureau of Investigation
- National Investigation Agency
- Research & Analysis Wing (R&AW)
- Directorate of Signal Intelligence, Ministry of Defence- for Jammu & Kashmir, North East & Assam Service Areas only
Another comic news in Tanzania is consideration of currency change since previous Govt. officials are sitting on bribe money under their basement/carpet/hole in the backyard/wall. So, currency change can effectively render their money useless, esp. if it a large horde. Clever move.
40% mobile handsets are fake in Tanzania
China is the home to majority of fake mobile phones in Africa. Counterfeit look like the real thing but can be harmful for health and can explode under high temperature, no QC checks. The phones have fake international mobile equipment identity (IMEI) codes. Govt. is about to pull the plug on them.