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LABOUR MARKET PROFILE 2016 Tanzania and Zanzibar LO/FTF Council’s Analytical Unit Copenhagen, Denmark

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LABOUR MARKET PROFILE

2016 Tanzania and Zanzibar

LO/FTF Council’s Analytical Unit

Copenhagen, Denmark

Danish Trade Council for International Development and Cooperation

Labour Market Profile 2016

Tanzania & Zanzibar 2016 Page ii

PREFACE

The LO/FTF Council is the Danish trade union council for

international development co-operation. It was

established, under a slightly different name, in 1987 by

the two largest Danish confederations, the Danish

Federation of Trade Unions (LO) and the Danish

Confederation of Salaried Employees and Civil

Servants (FTF). The organization activities are related

to: i) to support democratic development of the trade

union movements in Africa, Middle East, Asia and Latin

America; and ii) to contribute to democratic

development in the societies in which the unions operate.

The LO/FTF Council presents this Labour Market Profile

as a yearly updated report that provides an overview

of the labour market's situation.

This country profile presents the recent main

developments and is not an in-depth analysis.

Nevertheless, it shows a wide range of data in a

reader-friendly style. Certain key findings of this report

can be found on the Executive Summary.

The report is divided in 11 thematic sections, which

includes trade unions, employers’ organizations,

tripartite structures, national labour legislation,

violations of trade union rights, working conditions,

situation of the workforce (with subsections such as

unemployment, sectoral employment, migration,

informal economy, child labour, gender, and youth),

education (with subsection vocational training), social

protection, general economic performance, and trade.

Additionally, the reader finds an Appendix with a list

of the ratified ILO Conventions and an updated status

of trade unions in Tanzania in terms of members and

CBAs.

As indicated, the report is driven by statistical data

selection from international databanks, surveys and

reports (e.g. the International Labour Organization

(ILO), the International Trade Union Confederation

(ITUC), the World Bank, the U.S. Department of State’s

Annual Country Reports on Human Rights Practices,

WageIndicator Foundation, the Africa Labour Research

& Educational Institute (ALREI), etc.) as well as national

statistical institutions and ministries, and others.

Moreover, narrative inputs are collected from

international news sources (e.g. The Economist, the British

Broadcasting Corporation (BBC), LabourStart, The

Guardian, etc.) together with local sources such as trade

unions centers, NGOs, national news, the LO/FTF

Council’s Sub-Regional Office, among others.

This report also collects references from several

indexes, e.g. the Global Rights Index, the Doing

Business Index, the Governance Indicators, and the

Human Development Index. The indexes’ methodologies

and the data quality can be followed by the sources

websites.

Most statistical data of trade union membership is

gathered through collaboration with trade centers and

research. Notwithstanding, the measurements of trend

of trade union membership, Collective Bargaining

Agreements (CBAs), women’s trade union membership

and occupational health and safety (OHS) committees

are a challenge. The used data of these

abovementioned indicators should be interpreted with

some reservations.

ACKNOWLEDGMENT This Labour Market Profile is prepared by the LO/FTF

Council’s Analytical Unit in Copenhagen with support

from our Sub-Region Office in Tanzania as well as the

Trade Unions Congress of Tanzania (TUCTA) and the

Zanzibar Trade Union Congress (ZATUC) in terms of

data collection of trade union membership.

All other labour market profiles of the countries where

LO/FTF Council operates are available at our website:

http://www.ulandssekretariatet.dk/content/landeanaly

ser

Should you have questions about the profiles you can

contact Kasper Andersen ([email protected]), Manager of

the Analytical Unit.

Cover Photo: Carsten Snejbjerg

Design and layout: Adriana Romero

Danish Trade Council for International Development and Cooperation

Labour Market Profile 2016

Tanzania and Zanzibar 2016 Page iii

Tanzania & Zanzibar Labour Market Profile

EXECUTIVE SUMMARY

he United Republic of Tanzania has experienced a

rapid economic growth during the last decade

followed by a steady increasing labour productivity.

The number of working poor has dropped fast; a

middle-class is on a rise and with an improving equality

in terms of the income distribution. The volatile inflation

in Tanzania has affected the real wages purchasing

power, though. In additiion, the country continues being

far below the sub-Saharan Africa average in terms of

the Gross Domestic Product (GDP) per capita in the

purchasing power parity (PPP). It remains complicated

doing business, especially trading across borders,

getting credit and paying taxes.

The government in Tanzania mainland implemented five

labour market related legislations in 2015 along with

one new act in Zanzaniar, but none in 2016. The

International Trade Union Confederation (ITUC) has

various observations with legislations that affect

negatively the labour markets environment. Two key

points are that the state has lack of resources to

implement the labour market regulations in practice in

the formal sector and indirectly not covering a vast

majority (85 percent) of the labour force that operate

in the informal economy. It has also been noted that

workers are confronting regular violations of trade

union rights.

The labour force employment rate fell during the last

decade, especially among the youth. More and more

people were instead inactive on the labour market.

Unemployment is not a critical issue in Tanzania, but is

more affected by skills mismatch between job

requirements and qualifications due to a high incidence

of under-education.

The employment in the agricultural sector has been

fallen significantly, entering into the service sector and

slightly also in the industry sector. This is reflected in a

considerable drop of own-account workers that instead

became contributing family workers or wage &

salaried workers. These changes have been illustrated

by an increasing GDP growth in the industry sector

while the agricultural sector has more or less been flat

and the service sector was dwindling. On the positive

side, the changes in the industry sector is a step towards

a more economic transformation On the negative side,

that latter sector is not offering enough new jobs and a

majority find their possibilities in the service sector with

a lower labour productivity.

Changes are also demonstrated by an internal

migration from rural to urban areas in the country. This

is driven by by the youth that is seeking for better jobs.

Also child labour remains very acute. Gender-based

discriminations in terms of wages and protections in

employment are present. The education system has

been hard affected by resource shortages during

recent years and the enrolment in schools on all levels

experienced drops. The membership of social protection

shemes have increased fast, but remain with very low

national coverages.

Tanzania mainland

The growth of trade union membership in Tanzania

mainland were on a fast increase on absolute terms

during the last decade. This influx has mainly been

related to a growing number of wage & salaried

workers. In recent years, the total membership’s

intensification has been stalled, though. Likewise the

coverage of collective bargaining agreements (CBAs)

also increased but lost its tempo. These negative

impacts have been related to financial constraints as

well as challenges in the education system, among

others.

Zanzibar

The trade union movement in Zanzibar had an influx of

new members due to an improved social dialogue with

the government and employers’ organizations as well

as creating possibilities of affiliated organized workers

from the informal economy. Despite these

improvements, organizational reforms in 2015 affected

hard the membership that fell by 11 percent in the

period from 2015 to 2016 (September). On the

positive side, social security schemes have opened up

for workers from the informal economy.

T

Danish Trade Council for International Development and Cooperation

Labour Market Profile 2016

Tanzania and Zanzibar 2016 Page iv

COUNTRY MAP

Source: The CIA World Factbook

Danish Trade Council for International Development and Cooperation

Labour Market Profile 2016

Tanzania and Zanzibar 2016 Page v

TABLE OF CONTENTS Preface ................................................................................................................................................................................................................ ii

Acknowledgment ................................................................................................................................................................................................ ii

Executive Summary ........................................................................................................................................................................................... iii

Country Map ......................................................................................................................................................................................................iv

Trade Unions .......................................................................................................................................................................................................1

Tanzania, mainland ............................................................................................................................................................................................................... 1

Zanzibar ................................................................................................................................................................................................................................. 2

Employers’ Organisations ..................................................................................................................................................................................3

Tanzania, mainland ............................................................................................................................................................................................................... 3

Zanzibar ................................................................................................................................................................................................................................. 4

Central Tripartite Structures ................................................................................................................................................................................4

Tanzania, mainland ............................................................................................................................................................................................................... 4

Zanzibar ................................................................................................................................................................................................................................. 6

National Labour Legislation ...............................................................................................................................................................................6

Tanzania, mainland ............................................................................................................................................................................................................... 7

Zanzibar ................................................................................................................................................................................................................................. 7

Observations on the labour legislation .............................................................................................................................................................................. 7

Ratified ILO Conventions ...................................................................................................................................................................................................... 8

TRADE UNION RIGHTS VIOLATIONS .................................................................................................................................................................8

Working Conditions ............................................................................................................................................................................................9

Workforce ......................................................................................................................................................................................................... 10

Unemployment ..................................................................................................................................................................................................................... 12

Sectoral Employment ........................................................................................................................................................................................................... 13

Migration .............................................................................................................................................................................................................................. 15

Informal Economy ................................................................................................................................................................................................................ 15

Child Labour ......................................................................................................................................................................................................................... 16

Gender .................................................................................................................................................................................................................................. 17

Youth...................................................................................................................................................................................................................................... 18

Education ......................................................................................................................................................................................................... 19

Vocational training .............................................................................................................................................................................................................. 20

Social Protection .............................................................................................................................................................................................. 20

Tanzania, mainland ............................................................................................................................................................................................................. 20

Zanzibar ............................................................................................................................................................................................................................... 22

Economic Performance .................................................................................................................................................................................... 22

Trade ................................................................................................................................................................................................................ 25

Trade Agreements ............................................................................................................................................................................................................... 25

Export Processing Zones (EPZ) ........................................................................................................................................................................................... 26

Appendix: Additional Data ............................................................................................................................................................................. 28

Status of Tanzania’s Ratified ILO Conventions ................................................................................................................................................................ 28

Status of Trade Unions in Tanzania, 2016 ...................................................................................................................................................................... 29

Trade Union Centre and affiliates in Zanzibar, 2016 ................................................................................................................................................... 30

References ........................................................................................................................................................................................................ 31

Danish Trade Council for International Development and Cooperation

Labour Market Profile 2016

Tanzania and Zanzibar 2016 Page vi

Tables Table 1: Status of trade unionism in Tanzania mainland, 2016 (est.).................................................................................................................................................. 1 Table 2: Paid employees with trade unions or employees associations, 2014 .................................................................................................................................. 1

Table 3: Status of trade unionism in Zanzibar, 2016 ............................................................................................................................................................................. 2 Table 4: Membership of Association of Tanzania Employers (ATE), 2008 ......................................................................................................................................... 3

Table 5: Number of cases in Tanzania Commission for Meditation and Arbitration, 2013-2015.................................................................................................. 4 Table 6: Status of Collective Bargaining Agreements (CBAs) in Tanzania, 2016 ............................................................................................................................. 5

Table 7: Status of Collective Bargaining Agreements in Zanzibar, 2016 .......................................................................................................................................... 6 Table 8: Status of the national labour, social security and human rights related legislations in Tanzania .................................................................................... 7

Table 9: Global Rights Index, Tanzania ranking, 2014-2016 ............................................................................................................................................................. 8 Table 10: Wages and earnings Monthly average and legal minimum wages .................................................................................................................................. 9

Table 11: Working Conditions in Tanzania ...........................................................................................................................................................................................10 Table 12: Employment-to-population ratio, Age and Sexes distribution, 2016 ..............................................................................................................................10

Table 13: Inactivity rate in Tanzania, 2016, % ....................................................................................................................................................................................11 Table 14: Skills mismatch between job requirements and qualifications in Tanzania, 2013 .........................................................................................................11

Table 15: Unemployment in Tanzania, 2016 ........................................................................................................................................................................................12 Table 16 : Employed persons and GDP share per sector, 2014 .......................................................................................................................................................13

Table 17: Key Migration Facts in Tanzania ...........................................................................................................................................................................................15 Table 18: Employment in the informal economy in Tanzania ..............................................................................................................................................................16 Table 19: Proportion of households with informal sector activities, 2001-2014 .............................................................................................................................16

Table 20: Working children Proportion of all children, age 5-17 years ..........................................................................................................................................17 Table 21 : Highest level of schooling attained ......................................................................................................................................................................................19

Table 22: Status of Vocational Training in Tanzania, 2013 ...............................................................................................................................................................20 Table 23: Public spending and coverage on social protection schemes in Tanzania, 2010, % ....................................................................................................21

Table 24: Pension Schemes: Benefits, Coverage and Contributions, 2010, % .................................................................................................................................21 Table 25: Key Economic Facts in Tanzania, 2015 ................................................................................................................................................................................22

Table 26: Ease of Doing Business in Tanzania .......................................................................................................................................................................................24 Table 27: Tanzania's Governance Indicators, 2009-2014 .................................................................................................................................................................24

Table 28: Trade and Foreign Direct Investment in Tanzania, 2015 ..................................................................................................................................................25 Table 29: Status of Tanzania’s Ratified ILO Conventions, 2016 ........................................................................................................................................................28

Table 30: Status of Trade Unions in Tanzania, 2016 ..........................................................................................................................................................................29 Table 31: Trade Union Centre and affiliates in Zanzibar, 2016 .......................................................................................................................................................30

Figures Figure 1: Trend of number of members in TUCTA and the trade union density, 2008-2016 .......................................................................................................... 1

Figure 2: TUCTA membership covered by Collective Bargaining Agreements (CBA), 2008-2016 ................................................................................................ 5 Figure 3: Minimum wage trend in Tanzania, 2000-2016 ...................................................................................................................................................................10

Figure 4: Labour force employment rate, 2007-2016, % ..................................................................................................................................................................11 Figure 5: Inactivity rate trend in Tanzania, 2007-2016, Sexes, % ...................................................................................................................................................11

Figure 6: Labour productivity, 2007-2016 ............................................................................................................................................................................................12 Figure 7: Unemployment rate trend in Tanzania and Eastern Africa, 2007-2016 .........................................................................................................................12

Figure 8: Employment by aggregate sector in Tanzania, 2001-2014 .............................................................................................................................................14 Figure 9: Sector Share in Tanzania, 2000-2015, % of GDP .............................................................................................................................................................14 Figure 10: Status of employment in Tanzania, % .................................................................................................................................................................................14

Figure 11 : Distribution of enterprises by size in Tanzania, 2011 .....................................................................................................................................................14 Figure 12: Employment in the informal economy ..................................................................................................................................................................................16

Figure 13: Labour force participation rate, sexes, % ..........................................................................................................................................................................17 Figure 14: Women in Management and Ownership, 2013 ................................................................................................................................................................18

Figure 15: Youth unemployment rate, 2007-2016, sexes, % .............................................................................................................................................................18 Figure 16: School Levels and Enrolment .................................................................................................................................................................................................19

Figure 17: Ratio of vocational student to all pupils in secondary education ....................................................................................................................................20 Figure 18: Total health-care expenditure not financed by private household's out-of-pocket payments ...................................................................................21

Figure 19: GDP per capita growth, 2006-2015, % ............................................................................................................................................................................22 Figure 20: GDP per capita (PPP) growth, Current US$; and Gini Index ..........................................................................................................................................23

Figure 21: Working poor, 2000-2012, % ............................................................................................................................................................................................23 Figure 22: Middle-class growth in Tanzania and the sub-Saharan Africa, 2000-2012 ................................................................................................................23

Figure 23: Inflation trend, 2006-2015, % .............................................................................................................................................................................................23 Figure 24: Gross Fixed Capital Formation, 2006-2015, % of GDP .................................................................................................................................................24

Figure 25: Export, Import and Foreign Direct Investment (FDI) trends ...............................................................................................................................................25 Figure 26: Tanzania's main products share of exports, 2014 ............................................................................................................................................................25

Figure 27: Tanzania's main export markets, 2015 ...............................................................................................................................................................................25 Figure 28: Number of Zone Developers and Operators since established of EPZA, 2006-2010 ................................................................................................26

Danish Trade Council for International Development and Cooperation

Labour Market Profile 2016

Tanzania and Zanzibar 2016 Page 1

TRADE UNIONS

Tanzania, mainland

There are 29 trade unions in Tanzania mainland; one

was deregistered and another three trade unions are in

the process of being deregistered. The trade union

movement covers 588,000 members. Two out of five

(40 percent) are women. The trade union density was

estimated at 2.5 percent of the total labour force and

at 19 percent of the wage and salaried workers (Table

1). Other data show that the number of women in trade

union leadership increased from 435 in 2009 to 461 in

2013 in the Trade Unions Congress of Tanzania (TUCTA)

which equals a growth at 5.6 percent.

Table 1: Status of trade unionism in Tanzania mainland, 2016 (est.)

Number of trade unions 29

Due (median) N/A

Members of trade unions 587,918

Women members of trade unions (TUCTA)

40 %

Trade union member share of labour force

2.5 %

Trade union member share of wage and salaried workers (2013)

19 %

Members of affiliated trade unions from the informal economy

17,865

Source: EATUC & EAEO Baseline Study on Social Dialogue within the

East Africa Community 2016; TUCTA; and estimated based on Key

Indicators of the Labour Market (KILM), 9th Edition.

The number of members in trade unions grew by 46

percent from 2008 to 2016; however, only by 0.3

percent from 2012 to 2016. Estimations suggest that

the trade union density increased among the total

employment while it stayed flat among wage &

salaried workers (Figure 1; see also Figure 10).

Figure 1: Trend of number of members in TUCTA and the trade union density, 2008-2016

Source: TUCTA, performance Indicators 2008-2013; TUCTA Narrative

Report 2015; EATUC & EAEO, Baseline Study on Social Dialogue within

East Africa Community, 2016.

A national survey from 2014 showed that around one-

quarter (27 percent) of paid employees are members

of trade unions or employees associations. This

diverges slightly from the above calculation of trade

union member share of labour salaried workers due to

the including of employees associations. Based on this

broader interpretation of the trade union density, the

central and local government and parastatal

organizations have a quite high trade union density at

81 percent and 63 percent, respectively. It is interesting

that women have a higher density (29 percent) than

men (26 percent). The sector with the smallest

proportion is private sector (agriculture) (1.1 percent)

(see more on Table 2).

Table 2: Paid employees with trade unions or employees associations, 2014

Sector Men Women Both

sexes

Central and local

government 77 % 87 % 81 %

Parastatal organizations 67 % 44 % 63 %

Private sector (agriculture) 1.2 % 0.8 % 1.1 %

Private informal sector 2.7 % 0.4 % 1.6 %

Private sector (non-

agriculture) 17 % 12 % 16 %

Household duties 32 % 0.0 % 27 %

Total 26 % 29 % 27 %

Note: The percentages are from Tanzania Mainland.

Source: The 2014 Integrated Labour Force Survey (ILFS).

Overall, private sectors have smaller proportion of

members in trade union than public sectors. This

indicates that paid employees in private sectors have a

low bargaining power with their employers.

The Trade Unions Congress of Tanzania (TUCTA)

The sole national trade union federation in Tanzania is

TUCTA. It was established in 2001 under the Trade

Unions Act of 1998. There is a 28 percent

representation of women in the Congress; and regional

meetings, making them slightly less than the targeted

30 percent.

TUCTA maintains strong ties with the government and

has regular meetings with many other state institutions

for discussion on issues related to the labour market.

This organization’s Congress covers 390 members, the

General Council with 190 members, Executive

Committee with 47 members, Executive Board with 15

members. The organization is affiliated to the

International Trade Union Confederation (ITUC). Table

30 shows details of the trade union movement’s

2,4% 3,0%

19% 19%

0%

5%

10%

15%

20%

25%

0

100000

200000

300000

400000

500000

600000

700000

2008 2009 2010 2011 2012 2013 2014 2015 2016

(est.)Trade union density (total employment)

Trade union density (wage and salaried workers)

Number of members in TUCTA affiliated unions

Danish Trade Council for International Development and Cooperation

Labour Market Profile 2016

Tanzania and Zanzibar 2016 Page 2

membership, number of Collective Bargaining

Agreements, and number of Occupational Health and

Safety Committees at workplaces.

One third of TUCTA’s total membership is organized by

the Tanzania Teacher Union (TTU), which is one of the

strongest trade unions in Tanzania. TTU, together with

the trade unions for government workers (TUGHE) and

local government workers (TALGWU), represent more

than 50 percent of the total TUCTA membership (see

more on Appendix Table 30).

TUCTA has had regular consultations with the president

and officials as well as the employers’ association, the

Association of Tanzania Employers (ATE), on labour

issues. Meetings in tripartite institutions such as the

Institution Labour, Economic and Social Council (LESCO)

have been seldom, though (see also the section: Central

Tripartite Structures).

TUCTA conducted advocacy campaigns through

national media on topics like domestic workers, gender

labour rights and labour rights compliance, workman’s

compensation fund, informal economy contributions to

social security schemes, among others. TUCTA managed

to pressurize government to allow workers from the

informal economy to pay contributions to - and benefit

from - social security schemes. On the same token,

TUCTA has supported regional trainers’ network through

training of (master) trainers, researchers and regional

trade union representatives.

The TUCTA strategic plan 2012-2016 continues to

promote attention to strengthen the financial situation of

the organization. The management of the real estate

owned by the organization has been improved and a

business plan has been developed for the revamping of

the Mbeya Labour College. Furthermore, a membership

database is under development. Also a draft policy has

been developed on how TUCTA and affiliated unions

can engage and organize in the informal sector.

The organization is recognized as an institutional player

in the labour market. However, TUCTA is faced with

serious financial constraints due to lack of income from

fees from affiliated unions, real estates, and losing

external donor support, among others. TUCTA is

working on financial recovery plans. Internal conflicts

have also arisen because affiliated unions oppose

TUCTA’s constitutional right to direct check-off from the

source (5 percent of member fees paid to unions). In

addition, TUCTA hardly pay salaries to the secretariat,

and most activities have been donor funded. It is

equally important to note, that TUCTA faces challenges

and competition from new and fragmented unions.

Zanzibar

Zanzibar’s labour concerns have historically been

neglected when it comes to constitutional matters. The

Zanzibar House of Representatives was compelled to

enact the Zanzibar Trade Union Act of 2001, which

allowed registration of trade unions in Zanzibar.

Subsequently, the national trade union centre -

Zanzibar Trade Union Congress (ZATUC) - was

established in 2003. The ITUC affiliates the Zanzibar

Trade Union Congress (ZATUC).

The labour law requires a union with 50 or more

members to be registered and sets literacy standards

for trade union officers. Not to mention the law

provides considerable powers of the registrar to restrict

registration by setting forth criteria for determining

whether an organization’s constitution contains suitable

provisions to protect its members’ interests.1

The trade union movement covers nine trade unions. In

ZATUC is now recruiting members who are paying

contributions to their unions and those who are not

paying at all are not considered as members any more.

Consequently basing on such criteria, ZATUC

membership has been registered from 21,000 in 2015

to 19,000 as of September 2016, i.e. 11 percent

decrease. Around 40 percent are women. The trade

union density was estimated at 2.4 percent as a share

of the total workforce in Zanzibar (Table 3).

Table 3: Status of trade unionism in Zanzibar, 2016

Number of trade unions 9

Due (median) 4,000

Members of trade unions 19,000

Women members of trade unions 7,397

Trade union members share of workforce

2.4 %

Members of affiliated trade unions from the informal economy

896

Labour force (2012 )2 776,176

Source: ZATUC; LO/FTF Council research; and ILO, Key Indicators of

the Labour Market (KILM), 9th Edition.

The Zanzibar Trade Union Congress (ZATUC)

ZATUC continues its positive development and is

continuously consulted by the government. Among

others, trade union leaders are placed centrally in

standing committees in the House of Representatives to

lobby tabled Bills. For instance, ZATUC participated in

formulating the new regulation on public service to

Danish Trade Council for International Development and Cooperation

Labour Market Profile 2016

Tanzania and Zanzibar 2016 Page 3

establish committee of negotiating machinery for public

sector employees.

The trade union movement in Zanzibar is under reforms.

Internally ZATUC is merging resources together to make

fewer and stronger unions. So far it has managed to

reduce the number of affiliates from eleven to nine. The

new Zanzibar Public Sector Workers Union (ZAPSWU)

is in place, while another merger process for private

sector unions has been initiated. It is without the

Zanzibar Teachers’ Union (ZATU). In addition, TUICO-Z

and ZAFICOWU are in last stages of merger. Should

this merger be completed, then ZATUC Affiliates will

further drop from current 9 to 7.

ZATUC continues to strengthening its working relations

with the Government of Zanzibar as well as employers’

organization. ZATUC presented a proposal for public

sector negotiation machinery to the Government and

succeeded having it established. ZATUC also played a

major role in the development of the Zanzibar Youth

Employment Action Plan and developed a strategic

plan and guidelines for combating HIV/AIDS in private

sector work places.

ZATUC Congress was held in December 2013. The

number of women leaders increased at national level

from 27 percent to 54 percent. ZATUC continued in

2015 of promoting young and women leaders in the

affiliated unions in line with its new policies on gender

and youth.

A new five year strategic plan and a work plan were

adopted, which is related on how to engage with

informal economy. So far 896 members from the

informal economy have been organized. In 2015

ZATUC set up a national union committee and informal

economy desk on informal economy to organize its

workers, and informal economy associations have been

trained on trade unionism and labour rights.

It is noteworthy to mention that the teachers union ZATU

has reached a membership rate of 52 percent of all

public teachers in Zanzibar and the largest affiliated

union in ZATUC. However, ZATU is facing a membership

saturation point, and has reached a deadlock in

collecting dues/payment arrears especially from

secondary teachers who are opposed to a flat rate of

2 percent direct check-off. In 2015 ZATU intensified its

membership service by disseminating newsletters,

training manuals and cluster visits to schools.

Regionally, ZATU is active in the federation for East

African Teachers’ Unions (FEATU) that recently gained

legal registration in Tanzania and is in the process to

finalize establishment of permanent office in Arusha

and receiving official observer status in the East Africa

Community (EAC) in line with the East African Trade

Union Confederation (EATUC) (only on issues pertaining

teachers’ rights and education matters).

Table 31 shows details of the trade union movement’s

membership, number of Collective Bargaining

Agreements, and number of Occupational Health and

Safety Committees at workplaces.

EMPLOYERS’ ORGANISATIONS

Tanzania, mainland

Founded in 1960, the Association of Tanzania

Employers (ATE) is the main employers’ organization in

Tanzania. The organization has representatives in most

important bi/tripartite organs. Their main objective is to

enhance sustainable socio-economic development in

coordination with the government and trade union

movement.

ATE has at least 10 representatives at secretariat and

board level. Based on the limited of data availability,

the eight divisions in ATE had a total 826 enterprise

members in 2008, employing 165,089 workers, which is

roughly equivalent of 14 percent of all formal workers

(Table 4). In 2016 it has been estimated that ATE

operates with 1,300 enterprise members.3 The majority

of the enterprises are based in Dar es Salaam (70

percent) and the remainder in other parts of Tanzania

mainland.

Table 4: Membership of Association of Tanzania Employers (ATE), 2008

Divisions No. of

enterprises per division

No. of employees per

division

Agriculture 30 25,956

Banking and finance 42 10,298

Commerce 288 25,210

Industry 259 41,263

Mining 20 6,238

Oil industry 17 1,694

Utilities and services 170 54,430

Total members 826 165,089

Source: ILO, Decent Work Country Profile, Tanzania (mainland), 2010

Danish Trade Council for International Development and Cooperation

Labour Market Profile 2016

Tanzania and Zanzibar 2016 Page 4

The organization provides advisory and representation

services to its members with industrial relations, legal,

management, among others. ATE is governed by an

annual general meeting and an executive council.

ATE is an active member of Tanzania Private Sector

Foundation (TPSF) and East African Business Council

(EABC). The organization is affiliated to the

International Organization of Employers (IOE) and it is

also a founder member of the Business Africa formerly

known as Pan African Employers Confederation (PEC).

ATE participates in ILO’s annual conference of which

Tanzania is a member and has one vote as an apex

employers’ association in Tanzania. Finally, ATE is

member of the East African Employers Organization

(EAEO).

ATE launched the Female Future Program in February

2016 that aims to attract more women into

management positons, decision making processes and

on Corporate Boards.

Zanzibar

Zanzibar's employers’ organization is the Employers

Association of Zanzibar (ZANEMA). Main activities are

to represent the private sector in policy advocacy and

to conduct training workshops for members. ZANEMA

maintains good working relations with ZATUC, but the

organization faces constraints in terms of manpower

resources. Recently ZANEMA expressed that despite

hefty work permit fees to protect domestic labour

forces from alien workers, it should also apply other

measures, such as upgrading skills of the workforce.4

ZANEMA is member of the East African Employers

Organization (EAEO).

CENTRAL TRIPARTITE STRUCTURES

Tanzania, mainland

Labour, Economic and Social Council (LESCO)

LESCO advises the Minister on e.g. national labour

market policy, any proposed labour law before it is

submitted to cabinet. It also collects and compiles

information and statistics relating to the administration

of the labour laws. LESCO consists of an independent

chairperson and sixteen members all appointed by the

Minister of Labour, which represent the interest of the

government, employers, workers; and four members

appointed because of their expertise.

Meeting in LESCO have not been often, but with

occasional consultations with trade unions.

Representatives’ on some issues prior to meetings have

been effectuated albeit coordination mechanisms are

not well established. What affects the dialogue has

frequently been related to its recommendations are not

acted on by the government because of political

position.

Labour Court

The Labour Court is a division of the high court, which

settles labour disputes referred to it. This Court is

presided by a judge and two assessors from the

employers’ organizations and trade unions.

It has also been registered that there is no

administrative sanctions or fines available to labour

inspectors. According to ILO, labour inspectors are

hindered in their ability to ensure labour law

compliance because sanctioning an employer through

the courts is cumbersome and appears to depend on the

seldom-used delegation of prosecutorial authority from

the Director of Public Prosecutions.5 In addition, the

Labour Court lacks resources and processing slightly less

than half of the cases it receives.6

Commission for Mediation and Arbitration (CMA)

Labour disputes are mainly regulated and resolved by

mediation through the CMA. It is an independent

department of the government and has been operating

since 2007. The functions of this Commission are to

mediate or arbitrate in any dispute referred to the

Commission in terms of any labour laws, including

antiunion discrimination, if the parties to the dispute

agree to arbitration or the Labour Court refers a

dispute. The CMA is well functioning and therefore an

important organ in the Tanzanian labour market.7

CAM has received 10,281 cases, 6,057 have been

resolved and 4,224 have been appealed to the Labour

Court for revision during the period 2010-2015 (April)

(Table 5).

Table 5: Number of cases in Tanzania Commission for Meditation and Arbitration, 2013-2015

Year 2013 2014 2015

(Jan-April)

Total number of cases 1,751 1,732 1,285

Source: Commission for Mediation and Arbitration in Tanzania

CAM has encountered a number of challenges, e.g. no

common understanding on how Workers’ Council

contract should be prepared and applied in practice.

Likewise budgetary crisis/inadequate fund to support

and accomplish matters of workers councils at work

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places, e.g. the problems with documentation when

registering the workers council contract e.g. its

commencement and expiry time

Sectoral Wage Boards

The members of the Wage Boards are appointed by

the Minister of Labour and Employment in consultation

with LESCO. The functions of the Wage Boards are to: i)

conduct an investigation on a minimum remuneration

and other conditions of employment; ii) promote

collective bargaining between registered trade unions,

employers and registered employer’s associations, and

iii) make recommendations to the Minister on minimum

wages and conditions of employment. Wage boards

have been established in sectors such as domestic

service, private security, agriculture, mining, and

health.8

Essential Services Committee

The Essential Services Committee is composed of

employers, workers, and government representatives.

Workers in certain “essential” sectors, which may not

strike without a pre-existing agreement to maintain

“minimum services”, and workers in other sectors may

also be subject to strike limitation as determined by the

Essential Services Committee. This committee has the

authority to deem periodically which services are

essential.9

Collective Bargaining Agreements (CBAs) in Tanzania

Mainland

The number of CBAs was recorded by 325 in 2016. It

has been estimated that the CBAs are covering

424,000 workers, i.e. 14 percent of the wage and

salaried workers (Table 6).

Table 6: Status of Collective Bargaining Agreements (CBAs) in Tanzania, 2016

Number of valid CBAs 325

Workers covered by CBAs 423,950

Annual increase of wages per CBAs 0-20 %

Share of wage workers covered by CBAs 14 %

Source: The Ministry Advisory Board; WageIndicator 2015, Country

Profile 2015, Tanzania; LO/FTF Council.

The number of workers covered by CBAs experienced a

growth of 31 percent from 2010 to 2016 (Figure 2). To

point out, in recent years the coverage actually

dropped which were related to the already mentioned

trade union movement’s organizational challenges.

Figure 2: TUCTA membership covered by Collective Bargaining Agreements (CBA), 2008-2016

Note: The year 2016 is an estimation.

Source: TUCTA, TUCTA performance Indicators.

Based on research of comparative collective bargaining

agreements from development countries from 2015

showed that 16 percent of CBAs in Tanzania were

extended to employers who did not sign the agreement.

This was relatively higher than the ten other surveyed

countries (eight in Africa), which was estimated at 9

percent on average. The country has a relatively low

share of agreements signed by one or more employers’

associations at 21 percent in contrast to the total

average at 26 percent. The share of CBAs covering the

private sector was assessed at 95 percent.10

Other bi/tripartite organs11

Workman Compensation Body

Work Permit Board

Vocational Training Board

Tanzania Commission for AIDS

National Social Security Board (NSSF)

National Health Insurance Fund Board (NHIF)

Public Pension Fund

Regulatory Board for Social Security

Joint Assistance Strategy

Negotiation machinery at the Joint Staff Council

(central) and at the Master Joint Staff Council.

Teacher Education Quality Task Force, EFA

Committee

Education Sector Advisory Council

Education Sector Master Workers Council

Board of the Vocational Education & Training

Authority (VETA)

Boards of Trustees

The Ministerial Advisory Board

3,0%

14% 14%

0%

2%

4%

6%

8%

10%

12%

14%

16%

0

100000

200000

300000

400000

500000

600000

2008 2009 2010 2011 2012 2013 2014 2015 2016

CBA density (wage & salaried workers)

Number of union members covered by CBA

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Zanzibar

Zanzibar Industrial Court

The Zanzibar Industrial Court is a division of the High

Court of Zanzibar, which settles formal labour disputes

conferred to it and like its mainland counterpart the

Zanzibar Industrial Court is presided by a judge and

two assessors from employers’ organisations and trade

unions.12 The courts are the only venue in which labour

disputes can be heard. According to an ILO labour

administration audit,13 the industrial court is functioning,

but is slow and irregular due to lack of resources.

During 2015 the government advised for the speeding

up of the establishment of industrial court. Among

others, the Ministry for Justice and Legal Affairs

initiated hearings with experts to improve the trust of

the courts as well as delimit the case delays.14

Other sources argue that Zanzibar judges and all

judicial officers, members of special departments, and

employees of the House of Representatives are

excluded from labour law protection.15

Labour Advisory Board

The Labour Advisory Board consists of nine member,

with three members each from the government,

employers and workers, all appointed by the Labour

Minister. The board provides advice on labour related

issues, such as proposed legislation, ILO conventions,

industrial relations, and working conditions. It is required

to meet four times a year.16 However, the board is

reported not to function effectively and bipartite

meetings between trade union and employers

association are very informal with general discussions.

Wages Advisory Board

The Wages Advisory Board consists of 13 members,

representing government, employers, workers, informal

economy, commerce and independent experts. It

provides recommendation for minimum wages and

working conditions. The board is required to meet twice

a year. This board takes consequential decisions

annually and one of the major recent decisions was the

new minimum wage fixing in the private sector (see

more in section: Labour Conditions). However, when the

political tensions are high the dialogue is somewhat

affected.

Collective Bargaining Agreements in Zanzibar

Unions affiliated to ZATUC have concluded 7 CBA’s,

which is up from two in 2012 (Table 7). In the private

sector, affiliated unions have negotiated at least 3

CBAs at workplaces; others still on-going.

Table 7: Status of Collective Bargaining Agreements in Zanzibar, 2016

Number of CBAs (Oct. 2016) 7

Workers covered by CBAs 3,300

Share of workers covered by CBA 5.1%

Source: ZATUC and LO/FTF Council research.

National OSH Committee

This committee negotiates for all matters concerning

labour with a legal mandate with reference to the

Labour Relation Act. Two people from each constituent

(Employer, Employee and Government) and the chair is

appointed by the minister concerning with labour.

Mainly decision is made by consensus thus the influence

of the parties is high.

Other important bi/tripartite organs

Conflict Resolution Committee

Zanzibar Social Security Board

Zanzibar Disabled Board

Zanzibar Business Council (bipartite)

MKUZA on Irrigation/Poverty Board

National Committee on HIV/AIDS

Committee on Education Policy

Aids Business Coalition Zanzibar (ABCZ)

Education Coordinating Board

National Tripartite for Dispute Handling Unit

NATIONAL LABOUR LEGISLATION

Constitution17

The Constitution applies to the United Republic of

Tanzania. The state is obliged to realize the right to

work and social welfare. The freedom of association is

guaranteed, though with several restrictions. Equal

opportunity and just remuneration is enshrined in the

constitution.

A Constitution Review process was initiated in 2013. It

was finalized in 2015. However, the constitutional

referendum was planned to be held in Tanzania in April

2015, but due to heightening political tensions, delays

to voter registration and security sectarian issues led to

be postponed.

The participating trade union representatives ensured

inclusion of labour rights clauses in a draft constitution

that awaits the coming referendum. There has been

concerns mainly relate to the division of Tanzania

mainland and Zanzibar, ethnic relations, ownership of

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oil and gas reserves, among others. The same awaits

the proposed amendment of employment and labour

legislation that takes into account ILO core conventions.

***

The Tanzania mainland and Zanzibar have separate

labour laws:

Tanzania, mainland

Employment and Labour Relations Act18

The Employment and Labour Relations Act of 2004 sets

fundamental rights at work and regulates hours of

work, remuneration, leave, termination of employment,

trade unions and employers’ organizations,

organizational rights, collective bargaining, strikes and

lockouts and sets dispute resolution under the

Commission for Mediation and Arbitration. The labor

laws cover all workers, including foreign and migrant

workers.

The Labour Relations Act is contradicted by the Public

Service (Negotiation Machinery) of 200319 for civil

servants by having conflicting regulations concerning

strikes. Amendments of the Act are prepared and are

underway to parliament discussions.

Labour Institutions Act20

The Labour Institutions Act of 2004 applies to the

United Republic of Tanzania. It establishes the Labour,

Economic and Social Council, the Commission for

Mediation and Arbitration, the Essential Services

Committee, the Sectoral Wage boards, the Labour

Administration and Inspection, and the Labour Court.

According to an assessment from 2013 by the Legal

and Human Rights Centre in Tanzania, 67% of workers

are completely unaware of the labour laws.21

Zanzibar

Labour Relations Act22

Of the laws specifically to Zanzibar, the Labour

Relations Act from 2005 regulates fundamental

employees’ rights, establishes the framework for

registration of trade unions and organizations,

organizational rights, collective bargaining and

agreements, labour disputes / right to strike, dispute

prevention and resolution and establishes the Zanzibar

Industrial Court.

The Employment Act

The Employment Act from 2005 regulates fundamental

rights and protection, employment procedures and

foreign employment, contracts of service and

employment standards and rights (hours at work,

wages, leave, vacation, penalties, termination of

employment, etc.). The law also establishes the Labour

Advisory Board, wage fixing machinery and wages

protection as well as the Labour Commission and labour

inspection.

Other legislations

Several other legislations exist from Tanzania mainland

and Zanzibar which regulate and set standards and

restrictions for the labour market.23 ILO has registered

a total 283 national labour, social security and related

human rights legislations. Six were registered in 2015

(none in 2014 and 2016) (see also Table 8):

Employment and Labour Laws (Miscellaneous

Amendments) Act, 2015.

Zanzibar Public Leaders Code of Ethics Act, 2015

(Act No. 4 of 2015).

Youth Council of Tanzania Act, 2015 (registered

among ‘Elimination of child labour, protection of

children and young persons’ as well as

‘Employment policy, promotion of employment and

employment services’).

Non-Citizens (Employment Regulations) Act 2015.

Teacher's Service Commission Act, 2015 (No. 25 of

2015).

Table 8: Status of the national labour, social security and human rights related legislations in Tanzania

2014 2015 2016

Number of new legislations 0 6 0

Source: ILO, NATLEX, Tanzania

Observations on the labour legislation

Equally important the International Trade Union

Confederation (ITUC) has registered several

observations of the legislations. Among others, they

vary from:24

Power to refuse official registration on arbitrary,

unjustified or ambiguous grounds;

formalities or requirements which excessively delay

or substantially impair the free establishment of

organizations;

restrictions on trade unions’ right to establish

branches, federation and confederation or to

affiliate with national and international

organizations;

administrative authorities’ power to unilaterally

dissolve, suspend or de-register trade union

organizations;

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Compulsory conciliation and/or binding arbitration

procedure in the event of disputes during collective

bargaining, other than in essential services;

Compulsory recourse to arbitration, or to long and

complex conciliation and mediation procedures

prior to strike actions; and

discretionary determination or excessively long list

of “essential services” in which the right to strike is

prohibited or severely restricted.

Ratified ILO Conventions

With reference to Tanzania’s ratification of

international labour standards, a total 35 ILO

Conventions are ratified (see also Appendix Table

29):25

Ratifications for the United Republic of Tanzania

Fundamental Conventions: 8 of 8.

Governance Conventions (Priority): 1 of 4

Technical Conventions: 26 of 177.

Out of 35 Conventions ratified by Tanzania, of

which 34 are in fovece, 1 Convention has been

denounced; none has been ratified in the past 12

months.

The latest ratified Conventions were the Discrimination

(Employment and Occupation) Convention (C111) and

the Equal Remuneration Convention (C100), both from

February 2002.

A tripartite plan of action of promoting the ratification

of the Domestic Workers Convention No. 189 was

launched in February 2014.

With reference to the Article 22 of the ILO Constitution,

i.e. annual reports on ratified Conventions, both the

International Organization of Employers (IOE) and ITUC

had observations to the Convention 87 on Freedom of

Association and Protection of the Right to Organise in

Tanzania in 2015; only the latter organization received

responses from the government, so far.26

TRADE UNION RIGHTS VIOLATIONS

Tanzania has been ranked as 3 out of 5 at ITUC’s

Global Rights Index since 2014 (Table 9), which was

classified as ‘regular violations of rights’. This is

interpreted as governments and/or companies are

regularly interfering in collective labour rights or are

failing to fully guarantee important aspects of these

rights. There are deficiencies in laws and/or certain

practices which make frequent violations possible.

Table 9: Global Rights Index, Tanzania ranking, 2014-2016

2014 2015 2016

Ranking on the Global Rights

Index 3 3 3

Note: Five clusters in total with ratings from 1 to 5. A country is

assigned the rating 5+ by default, if the rule of law has completely

broken down.

Source: ITUC, Global Rights Index

ITUC registered one case on the regular violations of

rights in 2015.27 This was related to the labour division

of Tanzania’s High Court ruled that a strike by workers

of Tanzania-Zambia Authority Railways Authority

(TAZARA) was illegal. It had been agreed workers

would resume work if the salary arrears were paid.

However, not all salary arrears were paid in time, and

other demands were not met. The government ordered

the workers to resume work, failing which they would

lose their jobs, and directed the TAZARA management

to keep a record of the number of days the workers

were on strike and deduct their salaries accordingly.

A similarly problem was repeated. TAZARA workers

went on strike but were ordered back to work by the

High Court. The strike was called to demand five

months’ salary arrears. The strikers returned to work

after receiving promises that their salaries would be

paid. The workers did start receiving their salary

arrears, after they returned to work, but the process

was slow.

According to the U.S. Annual Country Report on Human

Rights Practices 2015, 28 many private sector employers

adopt antiunion policies or tactics, although case law

discourages discriminatory activities by an employer

against union members. This is on both the mainland and

Zanzibar.

Other antiunion activities were registered such as

international mining interests engaged in paying

officials from the Ministry of Labour Inspectorate to

ignore worker complaints or to write favorable reports

on working conditions. It was also registered that during

2015 some mining interests barred unions from

organizing and used security staff to block labour

inspectors from entering mines. TUCTA officials stated

there were many instances of discrimination against

union workers. Mining companies reportedly established

employer-controlled unions called “welfare committees”

and declared workers redundant to prevent organizers

from starting a union. The Tanzanian Mining and

Construction Workers Union (TAMICO) reported 120

active cases of unfair termination involving mining

companies in different stages of adjudication. TUCTA

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also reported cases of hotels and construction firms

dismissing employees for attempting to unionize.

Both Tanzania mainland and Zanzibar have no cases

with the ILO's Committee of Freedom of Association.29

WORKING CONDITIONS

In Tanzania mainland minimum wages are fixed by the

Government after tripartite consultation in the LESCO

based on recommendations from 12 sub-sectoral wage

boards.

In July 2014 the minimum wages for public sector were

raised from 200,000 TZS (US$120) to 240,000 TZS

(US$144). TUCTA and the Ministry of Labour agreed to

increase minimum wages by 11 percent in 2015/16,

but in future, minimum wage negotiations will be dealt

by special wage regulatory committees and social

partners. Public civil servants have received increased

travel allowances (up to 50 percent) after years of

lobbying by trade unions to align salaries with the

rising cost of travelling fees and accommodations.

The government announced in July 2014 a substantial

increase in private sector minimum wages up to 65

percent. The decision to raise statutory minimum wages

for private sector employees came after years of

debate. The announced increase brought the minimum

wages to TZS 40,000 (US$25) per month for domestic

workers, which is the lowest, while TZS 400,000

(US$248) for workers in the commercial and

communication services is the highest (Table 10).

TUCTA has been advocating and lobbying for a

minimum wage policy, wage boards for public sector

put in place; and reduction of tax rates for low income

earners. Intensive TUCTA protests have eventually

caused the President to form a tripartite task force to

sort out the issue. As a result a new minimum salary

raise was reached in June 2015 at TZS 310,000

(US$167) per month. In addition, the Pay-As-You-Earn

(PAYE) – i.e. withholding tax on taxable incomes of

employees - was reduced from 12 percent in 2014 to

11 percent in 2015 (June) for income between TZS

170,000-360,000 per month. No income tax under TZS

170,000 per month. The government promised in May

2016 a PAYE reduction of 2 percent across the board

and it was welcomed by TUCTA and ATE. Be as it may,

the inflation of consumer prices, the exchange rate and

consumable tax increases are curbing the salaries tax-

cuts.

According to the Income Tax Act from 2004, the

resident individual income tax rates applicable in

Zanzibar differ from those which are applicable the

Mainland. The public sector minimum wage in Zanzibar

increased from TZS 180,000 (US$111) in 2013 to TZS

300,000 (US$137) per month from April 2016,

reaching an increase of 66 percent. In 2010, before the

minimum wage increase, the median wage was around

TZS 170,000 (US$122), notably higher than on the

mainland. It has been observed that officials

responsible for checking minimum wages are often

corrupt, with the result that some rival businesses can

ignore the law without being penalized, which includes

kept in check enterprises in the informal economy.30

Table 10: Wages and earnings Monthly average and legal minimum wages

Current Shilling (TZS)

Current US$

Tanzania, nation wide

Mean nominal, average wage (2012)

356,666 226

Minimum wage, average (2015) 310,000 167

Tanzania, mainland

Highest minimum wage (2013-16) 400,000 248

Lowest minimum wage (2013-16) 40,000 25

Median wage (2012) 114,400 72

Zanzibar

Minimum wage (public sector) (2016)

300,000 137

Median Wage (2010) 170,000 122

Source: ILO, Global Wage Report; The Citizen, Minimum salary raised

to Sh310,000, May 19, 2015; WageIndicator.org, Minimum Wages

in Tanzania with effect from 01-07-2013 to 30-06-2016; and

WageIndicator.org, Minimum Wages in Zanzibar with effect from 01-

04-2016.

The real minimum wage has been affected negatively

by the rising inflation in consumer prices during the

2010s, so far (Figure 3 & Figure 23).

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Figure 3: Minimum wage trend in Tanzania, 2000-2016

Note: This measured minimum wage covers unskilled workers. Source: ILO, Global Wage Report; WageIndicator.org, Minimum Wages in Tanzania with effect from 01-07-2013 to 30-06-2016.

Although earnings are pegged on productivity indices,

in practice wages are related to levels of education, i.e.

those sectors employing workers with low levels of

education pays lower wages. Other facts demonstrate

that only 6 percent of annual graduates from

secondary and tertiary schools in the mainland find

formal waged employment.31 In addition, the

Employment and Earnings Survey from 2015 revealed

by comparisons of monthly wages across sectors that

one out of four (25 percent) of the employees in both

public and private sectors earn monthly wages between

TZS 300,001- 500,000 (US$147 - US$244).32

General working conditions in Tanzania are available

below (Table 11). Generally, the labour standards are

not effectively enforced, particularly in the informal

economy.

Table 11: Working Conditions in Tanzania

Normal Weekly Hour

Limit 45 hours (mainland Tanzania)

Overtime Limit

12 hours (including overtime);

50 hours over a 4-week

period (mainland)

Max. Weekly Hours Limit 57 hours (mainland)

Min. Mandatory

Overtime premium/time

off in Lieu of Overtime

Wages

50% increase (mainland

Tanzania); no universal natinal

entitlement to compensatory

time off

Min. Annual Leave 20 days (mainland Tanzania)

Duration of Maternity

Leave Benefits 84 days

Amount of Maternity

Leave Benefits 100 %

Source of Maternity

Leave Benefits Social ensurance

Source: ILO, Working Conditions Law Report 2012.

Laws regulate safety in the workplace, but the

Occupational Safety and Health Authority (OSHA) is

ineffective. According to sources, the inspection system

operates with a limited effectiveness and a small

number of labour officers are available to conduct

inspections. As an example, mining companies take

advantage of these limitations to avoid inspections.33

The authorities operate with 88 labor inspectors on the

mainland; the number of inspectors in Zanzibar was

unavailable. It equals one inspector per 270,034

workers in the workforce. In contrast, the ILO

recommends one inspector per 40,000 workers in less

developed countries.34 Thus, Tanzania has very low

inspector coverage.

A large majority of workers do not have employment

contracts and lacked legal protections. Based on a

study form the Legal and Human Rights Center (LHRC),

when companies offer written contracts in compliance

with labour laws, they do not fulfill the contracts’ terms.

For example, 99 percent of contract documents do not

include job descriptions, an omission used to exploit

workers.35

WORKFORCE

The total population of Tanzania is 51.1 million (1.3

million in Zanzibar) and an estimated total workforce

by 23.8 million workers in 2016. Men (81 percent) are

more engaged active in the labour market than women

(71 percent). Tanzania holds a slightly higher

employment-to-population ratio than the Eastern Africa

average (Table 12).

Table 12: Employment-to-population ratio, Age and Sexes distribution, 2016

Sex Age Tanzania Eastern Africa

Men & women

Total 15+ 76 % 74 %

Youth 15-24 61 % 59 %

Adult 25+ 84 % 82 %

Men

Total 15+ 81 % 79 %

Youth 15-24 66 % 63 %

Adult 25+ 90 % 88 %

Women

Total 15+ 71 % 69 %

Youth 15-24 55 % 56 %

Adult 25+ 79 % 76 %

Sources: ILO, Key Indicators of the Labour Market (KILM), 9th Edition.

During the last decade, the country’s total employment

rate has been on a decreasing trend, but stayed flat

0

20000

40000

60000

80000

100000

120000

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

Minimum wage

Real minimum wage

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since 2013. It has since then followed the Eastern Africa

average rate. Youth experienced a very high

employment rate declining trend from 80 percent in

2007 to 65 percent in 2016, gliding below the region’s

average (Figure 4).

Figure 4: Labour force employment rate, 2007-2016, %

Sources: ILO, Key Indicators of the Labour Market (KILM), 9th Edition

Sources reported that around 850,000 young people

enter the country’s job market annually, but only

50,000 to 60,000 formal sector jobs are created each

year. With more than 66 percent of the population

under 25, this job shortage will keep rising.36 It gives

pressure on the unemployment and underemployment as

well as a growing informal economy.

In Zanzibar the labour market is estimated to hold

70,000 public and private workers from the formal

sector. The informal economy is expanding along a high

unemployment. As a result of promoting the need for

decent employment, over 2,800 jobs have been

created in 2015.

Inactivity

One out of five (22 percent) of the working-age

population (WAP) and 35 percent of the youth

population (15-24 years old) are inactive on the labour

market. These trends have been on a fast increase from

2007 to 2016: a relatively high increase by 89 percent

among the total WAP and at 70 percent among youth.

There is a significant gap between men (17 percent)

and women (26 percent). It remains similar among youth

(Table 13).

Table 13: Inactivity rate in Tanzania, 2016, %

Total Men Women

Inactivity rate 22 % 17 % 26 %

Inactivity rate, youth 35 % 30 % 40 %

Sources: ILO, Key Indicators of the Labour Market (KILM), 9th Edition.

The inactivity on the labour market increased among

both men and women, but especially expanded fast in

2011 among the latter segment, staying flat since 2013

(Figure 5).

Figure 5: Inactivity rate trend in Tanzania, 2007-2016, Sexes, %

Sources: ILO, Key Indicators of the Labour Market (KILM), 9th Edition

Skills mismatch

Based on estimations, skills mismatch between labour

supply and demand by educational attainment is

present in Tanzania, with an estimated 28 percent in

2013 and a noteworthy gap between men (21 percent)

and women (32 percent).

In terms of skills mismatch between job requirements

and qualifications has been assessed at 40 percent in

terms of incidence of under-education and 14 percent

of over-education (Table 14). This indicates that many

youth have few opportunities to learn skills to help them

start and sustain enterprises.

Table 14: Skills mismatch between job requirements and qualifications in Tanzania, 2013

Total Men Women

Incidence of over-

education 14 % 13 % 15 %

Incidence of under-

education 40 % 41 % 38 %

Source: ILO, Key Indicators of the Labour Market (KILM), 8th Edition.

Labour productivity

Tanzania has demonstrated a slightly higher labour

productivity growth than the Eastern Africa average,

but it remains below the sub-Saharan Africa average

(Figure 6). The improvements are related to an

expansion in agricultural production, services,

construction as well as an increased access to electricity.

60

65

70

75

80

85

90

95

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Total - Tanzania Youth - Tanzania

Total - Eastern Africa Youth - Eastern Africa

0

5

10

15

20

25

30

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Men Women

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Figure 6: Labour productivity, 2007-2016

Note: Labour productivity is defined as output per worker (i.e. GDP

constant 2011 international US$ in Purchasing Power Parity (PPP)); and

indexed year 2000 (=100).

Source: ILO, Key Indicators of the Labour Market (KILM), 9th Edition.

Unemployment

ILO's has estimated Tanzania's unemployment rate (i.e.:

"without work", "currently available for work" and

"seeking work") at 3.3 percent whereas youth

unemployment is double as high at 6.4 percent in 2016.

The national 2014 Integrated Labour Force Survey

(ILFS) illustrated higher rates at 10 percent and 13

percent, respectively.37 These figures diverge due to

different methods. Overall, women have higher

unemployment rates than men, except in terms of the

underemployment (Table 15).

Table 15: Unemployment in Tanzania, 2016

Sexes Rate

Unemployment

Total 3.3 %

Men 2.3 %

Women 4.3 %

Youth Unemployment

Total 6.4 %

Men 5.3 %

Women 7.7 %

Underemployment (2006)

Total 7.8 %

Men 8.2 %

Women 7.6 %

Source: ILO, Key Indicators of the Labour Market (KILM), 9th Edition.

The unemployment rate has stayed stable in recent

years and significant below the Eastern Africa

averages (Figure 7).

Figure 7: Unemployment rate trend in Tanzania and

Eastern Africa, 2007-2016

Source: ILO, Key Indicators of the Labour Market (KILM), 9th Edition.

Unemployment rates differ depending on the locality.

According to the mentioned 2014 ILFS, data signal that

the rural areas have a lower unemployment rate at 8.4

percent in 2014; and it has been on a slender increase

since 2006, assessed at 7.5 percent. Urban zones have

a higher unemployment rate at 13 percent, which has

declined significantly from 23 percent. To point out the

unemployment rate in Dar es Salaam) remains very high

at 22 percent.38

Still close to 137,000 are discouraged jobseekers.

Three-quarters are women and one-quarter is men.

Moreover, across age groups, more than three-quarters

of discouraged job seekers (79 percent) are youth

aged 15 to 35 years. The largest group of discouraged

job seekers is that of women youths at 59 percent.

As many other countries in the sub-Saharan Africa, the

Tanzanian population increases with many young

Tanzanians entering the labour force as well as moving

from rural to urban areas. The economy is simply not

able to generate enough jobs in the formal economy to

absorb them. Youth in Dar es Salaam are six times more

likely to be unemployed than rural youth. Many end up

in the informal economy.

Newly recruited workers are on increase: In 2011/12

was around 75,000 as compared to 48,000 workers

recruited in 2010/11. The majority of the newly

recruited workers were technicians and professionals.

However, employment services in Tanzania are

unpopular and ineffective. Not to mention, it is

insufficient to curb the rising youth unemployment and

underemployment. These themes are areas of policy

concern due to the previously mentioned high new

130 135 140

147 158

164

176 183

190 197

0

50

100

150

200

250

0

5000

10000

15000

20000

25000

30000

35000

40000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Tanzania Eastern AfricaSub-Saharan Africa WorldIndex year 2000 (=100)

0

2

4

6

8

10

12

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Total - Tanzania Youth - Tanzania

Total - Eastern Africa Youth - Eastern Africa

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Tanzania and Zanzibar 2016 Page 13

entrants in the labour market coming from schools and

colleges each year.39

Unemployment in Zanzibar

Official data have estimated the Zanzibar general

population unemployment rate at 4.4 percent in 2010.

The youth unemployment is significantly higher at 17

percent; and women are the majority compared to men.

According to the authorities, this is a strong indication

that unemployment in Zanzibar is essentially a youth

phenomenon.40 Based on other methids of measuring the

unemployment, other sources argue that the

unemployment rate is much higher at 34 percent in

2012; with youth joblessness and underemployment

estimated at 85 percent.41 Unemployment in Zanzibar

has also been called a “ticking time bomb”.42

In Zanzibar the Ministry for Labour and the Ministry of

Public Services were drawn together as the Ministry of

State President Office Labour and Public Service, thus

merging labour and public service issues. Zanzibar's

Employment Policy was adopted in 2005 and endorsed

in 2009. Following a 2012 government report on the

employment situation, ZATUC asked the Government to

develop a plan of action. The exercise resulted in the

Zanzibar Youth Employment Policy, which holds issues on

youth employment and job creation.

Sectoral Employment

A majority of people in employment are concentrated

in the agriculture sector (67 percent) followed by

service sector by 27 percent and the industry sector at

6.4 percent. There is a very little marginal gender gap

on the total employment share of workers.

The trade, hotel and restaurant sector from the service

sector has also a relatively high employment rate at 17

percent.

Men are dominating the construction sector (97 percent),

the transport and communication sector (95 percent), the

mining and quarrying sector (80 percent), the electricity,

gas and water sector (82 percent), and the public

administration, education and health sector (73

percent).

The finance, real estate & business services sector has

relatively low employment rate (0.3 percent) but a

relatively very high GDP share at 11 percent. In

contrast, in terms of the mentioned high employment in

the agricultural sector (67 percent), it has relatively low

GDP share, which was estimated at 32 percent. You can

see more differences on the employment per sector on

Table 16.

Table 16 : Employed persons and GDP share per sector, 2014

Sector Men Women GDP share

Agriculture 6,493,324 6,916,489 32 %

Mining & quarrying

173,926 44,098 4.0 %

Manufacturing 362,769 252,554 6.1 %

Electricity, gas & water

27,133 5,850 1.3 %

Construction 408,697 13,698 14 %

Trade, restaurants & hotels

1,402,244 1,913,565 13 %

Transport, storage & communication

526,414 26,017 7.0 %

Finance, real estate & business services

31,607 35,016 11 %

Public administration, education and health

565,247 371,716 7.2 %

Other services 152,041 307,733 5.9 %

Total 10,143,402 9,886,736 100 %

Source: ILO, Key Indicators of the Labour Market (KILM), 9th Edition &

African Economic Outlook, Tanzania 2016

Another key point is that the agricultural sector is also

the biggest employer for young people. Albeit it small-

scale agricultural producers are not characterized as

workers in the informal economy, but termed as self-

employed, they do not have any access to decent work

benefits, coverage of labour rights and social

protection.

In the last decade, Tanzania has experienced some

sectoral shifts. The employment trend from the period

2001 to 2014 demonstrates that the agricultural sector

declined from 82 percent in 2001 to the already

mentioned 67 percent from 2014. Instead the

employment in the industry sector grew from 3 percent

to 6 percent while the service sector from 15 percent to

27 percent, respectively (Figure 8). This could also

explain part of the increasing labour productivity that

was previously showed.

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Tanzania and Zanzibar 2016 Page 14

Figure 8: Employment by aggregate sector in Tanzania, 2001-2014

Source: ILO, Key Indicators of the Labour Market (KILM), 9th Edition

The structural changes on the sectoral employment have

also been reflected by significant alteration on the

sector share of the Gross Domestic Product (GDP). The

agricultural sector experienced a drop from 33 percent

in 2000 to 30 percent in 2015. The industry sector

increased from 19 percent to 26 percent, while the

service sector leaped from 47 percent to 44 percent,

respectively (Figure 9). In comparison with the sectoral

employment (Figure 8), the economy is not creating

sufficient new jobs in the industry sector, which is more

created by capital formation (Figure 24); while the

service sector has a declining labour productivity that

are related to a dominating informal economy.

Figure 9: Sector Share in Tanzania, 2000-2015, % of GDP

Source: World Bank, World Development Indicators

Also some structural changes have been observed in the

status of employment. Especially own-account workers

have experienced a significant decrease from 90

percent in 1990 to 42 percent in 2013. As a contrast,

both waged & salaried workers and contributing family

workers increased (Figure 10).

Figure 10: Status of employment in Tanzania, %

Source: ILO, Key Indicators of the Labour Market (KILM), 9th Edition

The own-account workers and contributing family

workers make up a category of “vulnerable

employment”, i.e. they are less likely to have formal

work arrangements, and are therefore more likely to

lack decent working conditions, adequate social security

and ‘voice’ through effective representation by trade

unions and similar organizations.43 This category fell by

23 percent in the period 1991-2013, i.e. from 91

percent to 71 percent, respectively.

A study shows that that there are about five million non-

farm businesses in Tanzania, which mostly consist of

household enterprises. This number is growing fast at

approximately 10 percent-15 percent per year, fueled

by the rapid urbanization and by lack of other

employment options for the majority of Tanzanian

workers. As a result about half of small non-farm

businesses are located in urban centers today. As

mentioned, they are very small with little specialization;

they tend to operate only a few hours per day or a

few days a week.44 Figure 11 shows that close to nine

out of ten (88 percent) enterprises are between one to

four employees. Around 70 percent to 90 percent of

the workforce in the private sector is casual labours.

The country has a low professional density, e.g. very

low numbers of accountants and lawyers.45

Figure 11 : Distribution of enterprises by size in Tanzania, 2011

Source: Africa Investments, Labour Force Profile, Tanzania Business Sector Support - Programme Phase III - BSPS III 2008-2014, 2014.

82%

3%

15%

75%

5%

20%

67%

6%

27%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Agriculture Industry Service

2001 2006 2014

0

10

20

30

40

50

60

Agriculture Industry Serice

90 88 84

76 69

48 42

0

50

100

0

20

40

1991 2001 2002 2006 2007 2011 2013Wage & salaried workers EmployersContributing family workers Own-account workers

Micro (1-2 employees);

60%

Small (3-4 employees);

28%

Medium (5-9

employees); 9%

Large (10 - <100

employees); 2%

Danish Trade Council for International Development and Cooperation

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Tanzania and Zanzibar 2016 Page 15

The government operates with the Vision 25 that is

based on three five-year development plans that

linkage with skills development initiatives. The sectors

services, engineering, manufacturing, constructions, and

health and welfare have high skills targets. A study has

showed, though, that the planned enrolment targets,

especially in the health and welfare sectors,

engineering as well as technical and vocational levels

are far behind the targets. There is a mismatch of the

labour market’s needs relative to the government’s

effort in terms of funds and enrolments.

Migration

In Tanzania almost double as many leave the country

than enter in comparison with the sub-Saharan Africa

average. This is frequently due to native Tanzanians

migrating for labour opportunities. Due to Tanzania’s

stability it has hosted many refugees from conflict

riddled neighbouring countries, mainly Rwanda and

Burundi. Many of these have returned home, which is

reflected in the decline of -300,000 net migrants in the

period 2006-2010 to -150,000 in 2008-2012 (Table

17).

Table 17: Key Migration Facts in Tanzania

Net migration (2008-2012)

Tanzania -150,000

Net migration to average population (2008-2012)

Tanzania - 1 : 1,501 inhabitants

Sub-Saharan Africa

- 1 : 2,838 inhabitants

Remittances received, % of GDP (2012)

Tanzania 0.2 %

Sub-Saharan Africa

2.0 %

Source: World Bank, World Development Indicators

Tanzania Immigrations Authorities often carry out

blueprint operations to catch illegal immigrants.

However, in 2014 almost 170,000 Burundians living in

Eastern parts of Tanzania were granted citizenship.

Survey data from 2013 also showed that only 0.13

percent of the total workforce is regular non-citizen

employees. It suggests that most immigrants operate in

the informal economy.46

In practice, Tanzania is attracting labour migrants.47 On

the other hand, a relatively very low share of

remittances is directed towards Tanzania, which

indicates few Tanzanians abroad sending money home

to their families.

The East African Community (EAC) commits Tanzania to

adopt measures to the free movement of persons and

labour from the other five member states. So far,

Tanzania has been very reluctant to open its borders

and thus lack behind neighbouring countries in

implementing the provisions in the EAC’s Common

Market Protocol.

Discrimination against migrant workers also occurred.

Migrant workers often faced difficulties in seeking

legitimate employment. In March 2015 the parliament

passed the Non-Citizens Employment Regulation Act,

which gives the labour commissioner authority to deny

work permits if a Tanzanian worker with the same skills

is available. Because legal refugees lived in camps and

could not travel freely.

Equally important the internal migration in Tanzania is

under an evolution. Like in many other African countries,

Tanzania is experiencing a fast urbanizing. Albeit this

urbanization has been an economic power engine in

Asia, it has, so far, not experienced the same impact in

Tanzania.

Informal Economy

According to Tanzania’s National Bureau of Statistics

the informal employment refers to employed persons

who by law or in practice hold jobs that are not

protected by labour legislation, not subject to income

tax or entitled to social protection and employment

benefits. Informal employment can be found in the

informal economy, formal sector and the household.48

Based on the 2014 Integrated Labour Force Survey,

three-quarter of paid and self-employed employees in

non-agriculture have informal employment (76 percent)

with a higher proportion of women (82 percent) than

men (72 percent). Stated differently, Tanzania has a

challenge of employment informality.

Based on broader definition of employment in the

informal economy (i.e. including workers from

subsistence farming), demonstrate that the vast majority

of Tanzanian mainland and Zanzibar workers (85

percent and 88 percent, respectively) are employed in

this ‘sector’ (Table 18). A gender gap in terms of paid

employees and self-employed in non-agriculture is

present.

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Tanzania and Zanzibar 2016 Page 16

Table 18: Employment in the informal economy in Tanzania

Paid employees and self-employed in non-agriculture (Mainland) (2014)

Total 76 %

Men 72 %

Women 82 %

Share of persons employed in the informal economy

Tanzania (2014) 85%

Zanzibar (2010) 88 %

Source: ILO & DFID, Zanzibar Social Protection Expenditure and Performance Review and Social Budget, 2010; The National Bureau of Statistics, the Integrated Labour Force Survey (ILFS), 2014.

Survey data have outlined that a growing

informalization of the proportion of households with

informal ‘sector’ activities increased from 40 percent in

2006 to 43 percent in 2014, which has been related to

that the urban economy has a lack of formal jobs

alternatives (Table 19).

Table 19: Proportion of households with informal sector activities, 2001-2014

Area 2001 2006 2014

Dar es Salaam 62 % 57 % 65 %

Other urban 61 % 54 % 57 %

Rural 27 % 33 % 32 %

Total 35 % 40 % 43 %

Source: The National Bureau of Statistics, the Integrated Labour Force Survey (ILFS), 2006; the National Bureau of Statistics, ILFS, 2014.

There are no formal policies and legislation developed

by the government in formalizing informal economy,

except social security reform has promoted to roll over

into the informal ‘sector’ (see also the section: Social

Protection). Moreover, the formal registration of

companies can be measured as a proxy of the

possibilities of formalizing doing business in Tanzania. In

terms of the ease of ‘Starting a Business’ in Tanzania

was ranked at 129 out of 189 countries (see also Table

26). It is higher than the sub-Saharan Africa average,

but measured lower than the neighboring countries

Burundi (19) and Rwanda (111) rankings. Just as in

many other African countries, most new jobs are

created in the informal economy, crowding-out jobs in

the formal sector. The informal economy also absorbs

many of youth, since unemployment is not an option.

A Tanzania mainland Wage Indicator survey from

2012 showed that around 33 percent work without a

contract.49 The survey preselected workers, though, who

have better conditions as it sampled registered self-

employed and employees, and not unregistered self-

employed in the agricultural sector. The survey also

showed that the more young people tend to have no

contract. The median wage for workers with a

permanent contract is more than double than for

workers with no contract. In Zanzibar, 33 percent do not

operate with contracts (Figure 12).50

Figure 12: Employment in the informal economy

Source: WageIndicator, Data Report, Wages in Tanzania, WageIndicator survey 2012; and WageIndicator, Data Report, Wages in Zanzibar, WageIndicator survey 2013

There is a big room to widen the tax base in the

informal 'sector' and improve government revenue

performance, but, in practice, it is the informality that

complicates it. Trade unions and cooperatives in

Tanzania have demonstrated as natural partners in

providing services and support to curb the informal and

unprotected situations of the workforce.51

Tanzania's National Employment Policy (NEP) has

assessed that the informal economy has a capacity to

employ 63 percent of the yearly increasing labour

force in urban areas while the formal sector is 8.5

percent.52

Child Labour

Child labour was estimated at 29 percent in Tanzania

in 2014, which is similar than the sub-Saharan Africa

average (Table 20). The largest number of working

children is in unpaid family workers (93 percent) and

nine out of ten (92 percent) are in the agricultural

sector. In the more urban zones the children work as

domestic workers, street vendors, and shopkeepers.

Self-employed

7%

Permanent labour contract

41%

Fixed-term contract

26%

No contract

26%

Employment status, mainland

Self-employed

25%

Permanent labour contract

22%

Fixed-term contract

45%

No contract 8%

Employment status, Zanzinar

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Tanzania and Zanzibar 2016 Page 17

In Zanzibar only 9 percent of 5-17 year olds are

reported to be engaged in child labour. These children

worked primarily in transportation, fishing, clove

picking, domestic labor, small businesses, and gravel

making.

Table 20: Working children Proportion of all children, age 5-17 years

Region Year Type %

Tanzania, mainland

2014 Child labourers 29 %

Hazardous work 22 %

Zanzibar 2006 Child labourers 9 %

Sub-Saharan Africa

2008

Children in employment

28 %

Child labourers 25 %

Hazardous work 13 % Note: Children in employment include all children who conduct some kind of work, whereas child labourers are a narrower term without mild forms of work. Hazardous work is the worst from of child labour as defined in ILO C182. Source: National Bureau of Statistics, Tanzania National Child Labour Survey 2014; ILO, IPEC, National Action Plan for the elimination of child labour 2009 - 2015; ILO, Accelerating action against child labour, International Labour Conference, 99th Session 2010.

The Government launched the National Costed Plan of

Action for Most Vulnerable Children II (2013-17), which

includes plans to provide social services to vulnerable

children, including child laborers. However, not much has

been achieved in recent years, except initiating a

National Child Labour Survey and with some support

programs on the elimination of child labour.53

Law prohibits the exploitation of children in the

workplace. Among others, the minimum age for

contractual employment is 14. Children over 14 but

under 18 may be employed to do only light work

unlikely to harm their health, development, or

attendance at school. However, the government does

not effectively enforce the law. One reason is that

many children work in private homes or rural areas.

And distance from urban-based labour inspectors and

the unwillingness of children to report the conditions of

their employment complicated inspections the

enforcement of the law. On the same token, the children

are vulnerable to exploitation and with few protections.

It has been registered that no reported child labour

cases have been brought to court in 2015.54

It is noteworthy to mention that Zanzibar’s child rights

law from 2011 was the winner of the 2015 Future

Policy Award on securing children’s rights, beating 29

other nominated policies to the prize. It earned the

award for its balanced coverage of child abuse and

violence against children and for its promotion of child

rights.55

In Tanzania the number of HIV orphans exceeded 1.3

million representing the word’s third highest number of

HIV orphans. Tanzania's trade unions implement

activities aiming at helping children to stop work and

register for schooling, and at supporting vocational

training programs that equip youth with skills and

enhance their meaningful employability.56

Gender

As already mentioned, the labour force participation

rate has been on a declining trend during the last

decade. According to estimations, this has particularly

happened among women that fell from 88 percent in

2007 to 74 percent in 2016 while men from 90 percent

to 83 percent, respectively (Figure 13). This has

widened the gender gap significantly from 1.7 percent

in 2007 to 9.7 percent in 2016.

Figure 13: Labour force participation rate, sexes, %

Source: ILO, Key Indicators of the Labour Market (KILM), 9th Edition

Unequal division of labour responsibilities and decision

making within the family, limits women’s control over

household assets and income. For example, while

women have some decision making powers on the

utilization of their income, the amount of money earned

was insufficient to meet household needs adequately.

Thus, majority relies on their children’s earning to

supplement the family income.57

Women’s slightly lower levels of education are barriers

for women obtaining better-paid jobs on commercial

farms just as working on agricultural estates they are

frequently the pickers and packers. Very rarely they

attain management positions. In practice many women

are locked out of land ownership, access to credit and

productive farm inputs, support from extension services

and access to markets.

60

65

70

75

80

85

90

95

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Men Women

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Tanzania and Zanzibar 2016 Page 18

Gender-based discrimination in terms of wages and

legal protections in employment occurred frequently.

For example, young women earn lower incomes where

they are employed, and often face hostile conditions in

seeking employment and within the workplace.

A 2013 Enterprise Survey reported that 24 percent of

firms had women participation in ownership in

Tanzania, which is lower than the sub-Saharan Africa's

average at 34 percent. Tanzania has also a lower

score in terms of firms with women in top management

(Figure 14).

Figure 14: Women in Management and Ownership, 2013

Source: World Bank & IFC, Enterprise Surveys: Tanzania Country

Profile 2013

Trade unions need for increased gender equity in

membership. Some improvements have been registered.

TUCTA and ZATUC are also collaborating with the

trade union confederation for the East African

Community EATUC to promote gender equality, both

within the labour movement and in Tanzania.58

Although employers in the formal sector are more

attentive to laws against gender discrimination, this is a

more critical issue in the informal economy. And, in the

informal economy, women are disproportionately

employed, as previously mentioned. In practice, women

often are employed in hazardous jobs, bullying, threats,

and sexual harassment.59

Youth

Nearly 1 out of 2 (47 percent) of Tanzania’s population

is under 15 years of age. A youth boom is thus

expected to rise in the upcoming years.

Since paid employment in rural areas is limited, it

pushes an increasing rural-urban migration of young

people. This is not met by supply of jobs. This explains

the fast increasing contributing family workers among

youth (see also Figure 10). The youth population covers

57 percent of unemployed workers in 2016, and is

significantly higher within urban areas; and likely to

increase with their population growth. When comparing

youth unemployment rate between men and women, the

latter outnumber the former with a gap of 2.4 percent

(Figure 15).

Figure 15: Youth unemployment rate, 2007-2016, sexes, %

Source: ILO, Key Indicators of the Labour Market (KILM), 9th Edition

The majority of Tanzanian youth had begun their

transition from studying to the labour market. As a

matter of fact, based on a survey from 2014, young

Tanzanians are either in a period of labour market

transition (47 percent) or has completed their transition

to a job designated as either stable and/or satisfactory

(32 percent). With attention to nearly one-third of

Tanzanian youth has completed their transition, most are

experienced into low-skill or unskilled manual jobs that

the respondent deemed satisfactory. This is likely to be

on recognition of the limited options available. After all,

young people are rarely found in professional jobs as

managers, professionals or technicians.60 The private

sector employs slightly more young people than the

public sector.61

Sources have demonstrated that Zanzibar’s youth tend

to be slightly better educated than the mainland’s. In

contrast the former are less likely to be employed than

the latter. The agriculture and tourism sectors are the

primary industries employing youth.62

0%

5%

10%

15%

20%

25%

30%

35%

40%

Firms with female top manager Firms with female participation inownership

Tanzania Sub-Saharan Africa Low income

0

1

2

3

4

5

6

7

8

9

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Youth - Men Youth - Women

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Tanzania and Zanzibar 2016 Page 19

EDUCATION

In terms of schooling, Tanzania’s population receives on

average of 5 years education. Around three out of four

(26 percent) have been in school enrolment. When it

comes to secondary school, there are only a few

Tanzanians who have attained this level of education.

Not to mention very few have completed university

(Table 21).

Table 21 : Highest level of schooling attained Population 25+, Total and Women, 2010

Highest Level Attained Total Women

No Schooling

26 % 34 %

Primary Begun 17 % 17 %

Completed 49 % 43 %

Secondary Begun 5.5 % 4.0 %

Completed 1.2 % 0.8 %

Tertiary Begun 0.2 % 0.3 %

Completed 0.5 % 0.5 %

Average year of total schooling

5.1 years 4.5 years

Source: Barro, Robert and Jong-Wha Lee, April 2010, "A New Data Set of Educational Attainment in the World, 1950-2010." NBER Working Paper No. 15902.

Based on a Basic Education Master Plan, the Tanzanian

government aimed to achieve universal access to basic

education for children over the age of 7 years and

ensures that at least 80 percent of children complete

primary education.

And the government has successfully implementing free

and compulsory primary education since 2001. Data

show that the primary enrolment rates increased very

fast in the beginning of the 2000s, peaking at 95

percent in 2006 for both boys and girls. And this is with

the high prevalence of child labour in Tanzania in mind.

However, during the last decade the high primary

enrolment rate has plummeted reaching 80 percent in

2013. It is now in line with the sub-Saharan Africa

average for boys while girls are still slightly higher than

the region average (Figure 16). The expansion in

primary school has not been equalled by expansion of

teachers and schools facilities, which constrain the

educational system. This includes with low teaching time,

weak performance incentives for teachers, delayed or

insufficient resource flows to schools, and absence of

student assessments in early grades, according to

sources.63

Data for enrolment in secondary school show a lower

rate than the sub-Saharan Africa average and has

entered a decline from 2012 to 2013, reaching 33

percent.

Tertiary educations have also lower enrolment rates

than the rest of the region with a high gender gap

(Figure 16).

Figure 16: School Levels and Enrolment Boys and girls, Tanzania and the sub-Saharan Africa (SSA), 2000-2013, %

Note: Net enrolment is the ratio of children of official school age, who 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 enrolment can therefore be higher than 100 percent, but with tertiary or university education, the age of the pupils is more diverse. Source: World Bank, Education Statistics.

40

50

60

70

80

90

100

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Net enrolment in Primary School

Boys -Tanzania

Girls -Tanzania

Boys - SSA

Girls - SSA

20

25

30

35

40

45

50

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Gross Enrolment in Secondary School

Boys -Tanzania

Girls -Tanzania

Boys - SSA

Girls - SSA

0

2

4

6

8

10

12

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Gross Enrolment in Tertiary School

Boys -Tanzania

Girls -Tanzania

Boys -SSA

Girls -SSA

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Vocational training

There has been a 39 percent increase of pupils in

vocational training in Tanzania in the period from 2010

to 2013, reaching 248,239 pupils. Also the ratio of

pupils in vocational training in terms of all pupils in

secondary education was 11 percent, which is higher

than the sub-Saharan Africa average. It should be

mentioned, though, that the rate of secondary pupils is

lower in Tanzania in comparison with the sub-Saharan

Africa average which inflates the vocational pupils’

ratio (Table 22, Figure 16 &

Figure 17).

Table 22: Status of Vocational Training in Tanzania, 2013

Pupils in vocational training Tanzania 248,239

Pupils in vocational training (% females)

Tanzania 46 %

Sub-Saharan Africa (2012)

40 %

Ratio of pupils in vocational student to all pupils in secondary education

Tanzania 11 %

Sub-Saharan Africa

7.6 %

Ratio of pupils in vocational training out of 15-24 year olds

Tanzania 2.5 %

Sub-Saharan Africa

2.0 %

Note: Ratios are calculated based on average of the period 2010-2012. Source: World Bank, Education Statistics & UN Data.

Figure 17: Ratio of vocational student to all pupils in secondary education Tanzania and the sub-Sahara Africa, 2004-2013

Source: Source: World Bank, Education Statistics.

Formal vocational training is administered by the

Vocational Education and Training Authority (VETA) of

Tanzania, which runs training centres. Vocational

training is also performed by technical colleges,

religious training centres; private training centres and

through informal apprenticeships. The government

launched new specialized vocational training centers in

July 2016 to plug the gaps for skilled labours currently

depending on the VETA.64

It is estimated that 37 percent of formal firms in

Tanzania are offering formal training.65 Due to the

Skills and Development Levy employers in Tanzania are

required by law to pay 6 percent of their wage bill.

Two percent of the wage bill goes to the Vocational

Training Fund, which is administered by VETA and 4

percent is remitted directly to the Treasury. Recently the

government has allocated the 4 percent to the Higher

Education Student Loans Board (HESLB). Employers have

argued that the levy is unacceptably high, and that

there is misallocation of the 4 percent remitted to the

Treasury.66 On the other hand, the trade unions seem to

have played a modest role in developing the

vocational education and training system. The unions

have not been very active in developing policies or

putting forward initiatives in this field.

Apprenticeships average 21 months. The training fee is

an average around TZS 4,000 per month (US$3.2), and

a skilled worker will earn an average of TZS 81,228

(US$65).67

Informal training represents the most common since 58

percent of skilled workers coming from informal

apprenticeships, compared to 15 percent from formal

vocational training and 15 percent in NGO non-formal

training.

The labour market’s demand-side is mainly guided by

the National Employment Policy (NEP). This promotes

employment creation initiatives and employment

growth. The policy has deficiencies in terms of the post-

employment education and training system that lacks

guiding such skills development initiatives.

Opportunities for vocational training in Zanzibar are

limited. While enrolment in general education has

expanded rapidly within the last decade, technical and

vocational education has only experienced a limited

growth. There are few recognized institutions which

offer this type of education/training in Zanzibar.68

Regarding statistics there are only outdated data.69

SOCIAL PROTECTION

Tanzania, mainland70

There are seven social security funds supervised by the

Social Security Regulatory Authority. They registered a

total membership growth from 1,274,000 in 2008 to

0%

2%

4%

6%

8%

10%

12%

14%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Tanzania Sub-Saharan Africa

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2,142,000 in 2015. The two largest social insurance

funds offering health and medical coverage are: i) the

National Health Insurance Fund (NHIF) providing the

main access to health services, after the state tax-

financed health programs; and ii) the National Social

Security Fund (NSSF). In 2014 NSSF had registered

600,000 members.

The NHIF has expanded its active registered members

from 164,708 in 2001 to 600,000 in 2014; and,

including dependents, a total of more than 1 million

people were covered.71 Other estimations of health

social protection coverage is estimated at 13

percentage of the total population, which is relatively

low in comparison with the Africa average that is

assessed at 25 percentages (see also Table 23).

Table 23: Public spending and coverage on social protection schemes in Tanzania, 2010, %

Indicator Measure %

Total social protection

expenditure % of GDP 6.8 %

Public Health care

expenditure % of GDP 4.5 %

Health social protection

coverage

% of total

population 13 %

Trends in government

expenditure in health

% change per

year (2007-2011) -2.6 %

Source: ILO, Social Protection, Statistics and indicators

Overall are the social benefits for the active age in

terms of the public social protection expenditure very

low in Africa region at 0.4 percent of the GDP, but it is

even extremely lower in Tanzania, which was estimated

at 0.03 percent. Also in terms of the active contributors

to a pension scheme in the working age (15-64 years)

is also lower than the sub-Saharan Africa average, i.e.

3.1 percent and 5.9 percent, respectively (Table 24).

Table 24: Pension Schemes: Benefits, Coverage and Contributions, 2010, %

Social benefits for active age % of GDP 0.03 %

Pensionable age receiving an

old age pension (age 60+)

Proportion

of total 3.2 %

Active contributors to a pension

scheme 15+ 3.3 %

Active contributors to a pension

scheme 15-64 years 3.1 %

Source: ILO, Social Protection, Statistics and indicators

The expenditure on health declined on -2.6 percent per

year on average in the period 2007-2011 and the not

out-of-pocket payment fell from 85 percent in 2009 to

68 percent in 2011 (Figure 18).

Figure 18: Total health-care expenditure not financed by private household's out-of-pocket payments East African countries, 1995-2011, %

Source: ILO, Addressing the Global Health Crisis: Universal Health

Protection Policies, 2014

This low social protection coverage is related to

restrictive legislation which defines the personal scope

of coverage for each of the social security schemes in

Tanzania. In practice, this created hurdles that

complicate access to workers from the informal

economy. On the positive side, the Social Security Laws

Amendment Act from 2012 extends coverage to the

informal economy workers. This law is already inforce

but the implementation has been silently stalled on

account of workers being disgruntled because the law

abolishes withdrawal benefits.72

Basically are workers from the informal economy not

covered by any coordinated form of social security

schemes. Be that as it may, NSSF’s special scheme on

health insurance for members in the informal economy

has shown positive impacts after registering over

70,000 members since its establishment.73 It is

noteworthy to mention that there is no unemployment

benefit scheme.

Reformed social security regulations have been in

progress. Many people are concerned about their rights

and pension benefits, especially the probability of

social rights between the social security schemes and the

right to withdraw pension funds before retirement age.

The Government of Tanzania has reached huge arrears

in payments to the social security funds, which threatens

the whole social security system.

The government is expanding the Tanzania Social

Action Fund conditional cash transfer program, which

demonstrated an increase in school enrollment and a

decrease in child labor.

The government adopted the Arusha Declaration on

Social Protection in December 2014 which provides

40%

50%

60%

70%

80%

90%

1995 2000 2005 2006 2007 2008 2009 2010 2011

Burundi Kenya Rwanda

Tanzania Uganda

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a foundation for advancing the agenda of social

protection in Tanzania.

Zanzibar74

The Zanzibar Social Security Fund (ZSSF) is the only

public insurance scheme in Zanzibar. It provides old age

pension, life insurance, invalidity and maternity benefits.

In 2011 ZSSF registered 61,396 employee members

originating from 927 registered employers.75 It is a

contributory scheme with 10 percent of salary paid by

the employer and 5 percent by the employee. Pension

in Zanzibar is generally much lower than in mainland

Tanzania, at an average 3.5 times lower. Pay-out to

old age pensions has tended to be delayed, often for

several years.76 By intervention from ZATUC this

problem has been reduced.

The National Health Insurance Fund (NHIF) is operating

in Zanzibar providing the access to health services.

There are also several non-contributory safety net

programmes for vulnerable children, elderly and

disabled. Zanzibar also has several funds for Zakat the

Islamic founded social welfare, for an amount

equivalent to 2.5 percent of annual personal wealth.

In 2013 the ZSSF opened the issue of extending social

security coverage to informal economy, which was

discussed for the first time in the islands’ history. A

Social Security Law revision has been in the final

process. This also includes that the Government of

Zanzibar decided to introduce a universal social

pension to be provided to all older people aged 70

years and above, starting from April 2016. This new

universal pension is the first of its kind in east Africa.

Anyone over the age of 70 will receive a monthly non-

contributory pension of TZS 20,000 (US$9).77 ZATUC is

still concerned about compulsory transfers from social

security to health schemes. By the same token, ZANEMA

has raised their attention to the increase of the

contribution from 10% to 13% for the employers,

entitlements of the full benefit from 60 months to 156

months, among others.

ECONOMIC PERFORMANCE

In the past two decades, Tanzania has experienced a

liberalized market economy transition as well as

political and social stability. There has been a solid

economic growth in the last decade; estimated at 7.0

percent in (Table 25).

This has mainly been driven by several fast growing

sectors, such as construction, transport and financial

services. Discovery of oil and gas reserves holds

promises for the development of the extractive industry

and for substantial contributions to the country’s

economy.

Table 25: Key Economic Facts in Tanzania, 2015

GDP GDP real

growth

Doing Business 2016*

Human Development

Index**

Gini Index*** (2011)

44.9 billion US$

7.0 % 139 of

189 countries

151 of 188 countries

37.8

76 of 145 countries

* A high ranking on the Ease of Doing Business Index means the

regulatory environment is more conducive to the start-up and operation of

a local firm.78

** The Human Development Index (HDI) measures the average of a long

and healthy life, access to knowledge, and a decent standard of living.

*** A Gini coefficient of 1 (or 100 percent) expresses maximal inequality

among values. This Gini Index ranks the first country with the highest

inequality while the number 145 has the highest equality.

Source: CIA, The World Factbook, Tanzania, World Bank, World Development Indicators; World Bank & IFC, Ease of Doing Business 2015/2016 in Tanzania; and UNDP, Human Development Index trends

The GDP per capita growth in Tanzania has stayed

much higher than the sub-Saharan Africa average

during the last decade (Figure 19). The country is close

to achieving the middle-income status.

Figure 19: GDP per capita growth, 2006-2015, %

Source: World Bank, World Development Indicators

However, the GDP per capita in Purchasing Power

Parity (PPP) remains low and below the sub-Saharan

Africa average; and ranked as 191 out of 229

countries (Figure 20).

0

1

2

3

4

5

6

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Tanzania Sub-Saharan Africa

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Figure 20: GDP per capita (PPP) growth, Current US$; and Gini Index

Source: World Bank, World Development Indicators

Based on the distribution of income (Gini index) the

country has experienced a trend towards more equality

(Table 25 & Figure 20). But taking the low GDP per

capita (PPP) in account, the population is still relatively

poor. Tanzania has stepped up by two steps in the

Human Development Index (HDI) in the period from

2009 to 2014.

Other data show that Tanzania has experienced a

noteworthy reduction of the working poor. In the share

of extreme working poor (US$1.9 a day) in total

employment, it fell fast from 82 percent in 2000 to 42

percent in 2012. This rate remains higher than the sub-

Saharan Africa average, but getting closer to it.

Equally important the working poor (US$3.1 a day)

also decreased, but a slightly lower rate from 89

percent in 2000 to 73 percent in 2012. This latter trend

also remains higher than the sub-Saharan Africa

average (Figure 21).

Figure 21: Working poor, 2000-2012, %

Source: ILO, Key Indicators of the Labour Market (KILM), 9th Edition

These changes have also been reflected in the

increasing middle-class. Especially the lower middle-

class (US$3.1-US$5 a day) increased fast from 5

percent in 2000 to 16 percent in 2012, but remains

lower that the sub-Saharan Africa average. Also the

higher middle-class (US$5-US$13 a day) also grew,

just staying below the sub-Saharan Africa average. The

low middle-class remains economically vulnerable and

could rapid drop below the US$3 per day (Figure 22).

Figure 22: Middle-class growth in Tanzania and the sub-Saharan Africa, 2000-2012

Source: ILO, Key Indicators of the Labour Market (KILM), 9th Edition

Inflation in consumer prices used to be low, but during

the last decade it became volatile; peaking at 16

percent in 2012 due to rising oil prices, monetary

expansion and mounting food prices. This also affected

real wages purchasing power. The inflation returned to

one-digit since 2013 and has remained steady at

around 6 percent, largely due to the stability of food

and energy prices on international markets (Figure 23).

Figure 23: Inflation trend, 2006-2015, %

Source: World Bank, World Development Indicators

40,3

37,8

36

37

38

39

40

41

0

1000

2000

3000

4000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Gini Index - Tanzania TanzaniaSub-Saharan Africa

30%

40%

50%

60%

70%

80%

90%

100%

2000 2007 2012Tanzania - US$1.9 per day Tanzania - US$3.1 per day

SSA- US$1.9 per day SSA - US$3.1 per day

0%

5%

10%

15%

20%

2000 2007 2012

Middle-class US$3.1-US$5 (Tanzania) Middle-class US$5-US$13 (Tanzania)

Middle-class US$3.1-US$ (SSA) Middle-class US$5-US$13 (SSA)

0

2

4

6

8

10

12

14

16

18

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Tanzania Sub-Saharan Africa

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There is a significant high level of capital formation in

Tanzania in comparison with the sub-Saharan Africa

average (Figure 24). The trend is related to growing

capital inflows from the private sector that goes

towards the industrialization process, and a lower

proportion from development aid.

Figure 24: Gross Fixed Capital Formation, 2006-2015, % of GDP

Source: World Bank, World Development Indicators

The doing business environment in Tanzania has not

experienced many improvements since last year. Said

differently, eight of the ten Doing Business indicators

did not demonstrate improvements (Table 26). The

country was indexed at 139 out of 189 countries in

2016. The country’s ranking remains slightly better than

the sub-Saharan Africa average ranking, though.

This modest increase in Tanzania is related to

improvements of dealing with construction permits.

Endorsing contracts as well as getting electricity have

the highest rankings, 64 and 83 out of 189 countries,

respectively. Trading across borders (180), getting

credit (152), and paying taxes (150) are the most

underperforming indicators.

Table 26: Ease of Doing Business in Tanzania

Topics 2016 2015 Change

Starting a Business 129 122 -7

Dealing with Construction Permits 126 147 21

Getting Electricity 82 83 No change

Registering Property 133 132 -1

Getting Credit 152 150 -2

Protecting Minority Investors 122 121 -1

Paying Taxes 150 147 -3

Topics 2016 2015 Change

Trading Across Borders 180 181 1

Enforcing Contracts 64 64 No change

Resolving Insolvency 99 98 -1

Note: Doing Business 2016 indicators are ranking from 1 (top) to 189

(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.

Note: This Index has been controversial due to flawed data, especially in

terms of labour market flexibility and undervalued paying taxes.

However, the table can still be used as indicative measurement with

reservations.79

Source: World Bank & IFC, Doing Business 2016, Economy Profile: Tanzania

Tanzania's tax system revenues have rapidly grown, but

remains with insufficient finance to cover the public

sector demand. Roughly 450 big firms cover 70 percent

of the country's income tax. A challenge authority’s face

is the non-existent system to identify tax contributors of

their citizens. An additional burden is that the informal

economy retains most workers, making it harder to

collect tax payments from small-medium enterprises

(SMEs)

Overall, Tanzania continues to enjoy a stable and

democratic government. In the light of the governance

milieu, the country has experienced declining trends on

five out of six of the Governance Indicators. Especially

has the political stability and control of corruption

declined, but also government effectiveness has

underachieved. Only has there been registered some

improvements on regulatory quality (Table 27).

Table 27: Tanzania's Governance Indicators, 2009-2014

Year Voice and

Accountability Political Stability

Government Effectiveness

2009 -0.16 / 44%

0.07 / 48%

-0.59 / 34%

2014 -0.17 / 42% -0.54 / 27% -0.64 / 27%

Year Regulatory

Quality Rule of Law

Control of Corruption

2009 -0.42 / 36%

-0.48 / 39%

-0.44 / 39%

2014 -0.34 / 41% -0.41 / 39% -0.80 / 23%

Note: The Governance Indicators score from ‐2.5 to 2.5 while the percentiles rank from 0 (lowest) to 100 (highest).80 Source: World Bank, Worldwide Governance Indicators, 2004-2014

0

5

10

15

20

25

30

35

40

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Tanzania Sub-Saharan Africa

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TRADE

The growth of the export on average in Tanzania has

basically stayed flat during the last decade reaching

21 percent of GDP in 2015. The export is far below

the sub-Saharan Africa average. The import has been

more volatile dropping down from 36 percent in 2001

to 29 percent in 2015; it also dropped below the sub-

Saharan Africa average. The import in Tanzania is

mainly due to imports of capital and a rapid increase in

consumption, particularly of vehicles and fuel. This has

not been matched by the development of productive

sectors. It is basically the mining that is able to keep up

with the growth in imports. Stated differently, a

significant trade deficit is present in the country, and

keeping this balance of trade with a deficit at around

11 percent of GDP on average during the last decade

(Table 28 & Figure 25).

The growth of foreign direct investment (FDI) has been

slightly higher than the sub-Saharan Africa average in

recent years. Oil and gas exploration activities will

continue to attract private capital in the country, and

net inflow of FDI is expected to remain strong.81

Table 28: Trade and Foreign Direct Investment in Tanzania, 2015

Exports Imports FDI flow FDI Stock

9.3 billion US$

12.9 billion US$

2.0 billion US$

18.5 billion US$

21 % of GDP

29 % of GDP

4.4 % of GDP

41 % of GDP

Source: World Bank, World Development Indicators & Santander, Tanzania: Foreign Investment, FDI in figures

Figure 25: Export, Import and Foreign Direct Investment (FDI) trends Tanzania and the sub-Saharan Africa (SSA), 2006-2015

Source: World Bank, World Development Indicators

The largest contributor to the export basket continues to

be primary commodities, particularly gold, metal ore,

tobacco, and coffee (Figure 26). The volume of

manufactured exports is also up surging.82 The

development of the extraction sector will likely continue

through gas exportation.

Figure 26: Tanzania's main products share of

exports, 2014

Source: MIT, The Observatory of Economic complexity, Tanzania

The European Union (EU-28), China and India are the

main importers of Tanzania’s goods (Figure 27).

Figure 27: Tanzania's main export markets, 2015

Source: European Commission, DG TRADE, Bilateral Relations, Statistics

Trade Agreements

Tanzania is part of the East African Community (EAC).

The EAC free trade agreement from 1999 contains a

labour provision with cooperation on employment and

working conditions with an emphasis on gender equality

and discriminatory law and practices. Likewise, the

labour provision of the Common Market for Eastern and

0

5

10

15

20

25

30

35

40

45

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Export - Tanzania Import - Tanzania

FDI - Tanzania Export - SSA

Import - SSA FDI - SSA

Gold; 21%

Precious Metal Ore;

5,7%

Raw Tobacco;

6,3%

Palm oil; 3,2% Copper Ore;

3,8% Other Oily

Seeds; 4,4% Fish; 2,8%

Coconuts, Brazil Nuts,

and Cashews;

3,7%

Others; 49%

EU 28; 17%

China; 8%

India; 21%

Japan; 5%

U.A.Emirates; 4%

Kenya; 5%

Others; 41%

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Southern Africa (COMESA) agreement extends to

cooperation on employment conditions and labour

law.83 Tanzania is also part of the 2000 Cotonou

Agreement between the European Union (EU) and

African, Caribbean and Pacific (ACP) countries, which

reaffirms commitment to ILO’s Fundamental Conventions

and includes a labour provision on cooperation on

various labour and social issues.

In 2005 the EAC established a customs union and in

2010 the EAC agreed to establish full common market

with free movement for workers, goods, services and

capital.

Freedom of association and collective bargaining is

enshrined in the EAC common market in the sense that

an EAC migrant worker has equal rights as a national.84

The free movement of labour within the EAC opens up

questions of how to achieve equal opportunities and

equal social and labour rights for migrant workers, for

example if workers can bring pensions with them across

borders. The free movement of labour is also a source

of concern in some of the EAC countries, as the countries

workforces have differences in productivity and

educational level. However, the actual implementation

of the economic integration have slowed down the last

few years especially with regards to lifting barriers to

trade and free movement of labour. Although formal

tariffs are increasing abolished, trade is still challenged

by non-tariff barriers and corruption.

The objective of the East African trade union movement

is to safeguard workers’ interests in the EAC. They aim

to ensure that ILO standards are upheld and member

states’ labour policies are harmonized and the tripartite

model is institutionalized, while the free movement of

labour is promoted. The trade union movement has

reached observer status in the EAC in 2009, and along

with employers’ organizations they participate in

ministerial summits, sectoral summits, and other summits

that involve labour market issues. However, no meetings

were conducted in the Council of Ministers responsible

of Labour since 2009/2010 and implementation of the

EAC Common Market Protocol is moving very slowly

In terms of regional trade integration, Tanzania’s legal

services and accounting/auditing services tend to be

very regulated and restricted. Moreover, the country

does not allow foreign participation in initial public

offerings (IPOs). Sale or issue of shares by foreigners is

not restricted. Institutional investors, national pension

funds, fund management firms, and insurance companies

usually dominate participation in EAC stock and bond

markets, but the participation of Tanzanian investors in

other EAC markets is a maximum of 0.5 percent, which

is very low.85

Through the EAC, Tanzania is allowed to export duty

and quota free to the European Union (EU) since 2008,

and will have to gradually remove duties and quotas

on EU exports to Tanzania on most products, except the

products deemed to need protection from EU exports.

These include agricultural products, wines and spirits,

chemicals, plastics, wood based paper, textiles and

clothing. Negotiations on Economic Partnership

Agreement (CPA) between the EAC and the EU were

long last concluded in late 2014, securing continued

free access to the European markets. However, in July

2016 Tanzania decided to halt signing the agreement

due to the uncertainties in the aftermath of the Britain’s

exit of the EU.

Since 2001 Tanzania has benefitted from the United

States’ African Growth and Opportunity Act (AGOA),

which is a Generalised System of Preferences. It allows

duty and quota free access for some products.

Tanzania can be removed from AGOA, if the United

States deems that Tanzania among other human rights

issues, do not seek to uphold the ILO Core Labour

Standards and have acceptable minimum wages, hours

of work and occupational safety and health.

Export Processing Zones (EPZ)

The EPZ and Special Economic Zone (SEZ) programs in

Tanzania were established in 2002 and have been

under significant expansion (Figure 28).

Figure 28: Number of Zone Developers and Operators since established of EPZA, 2006-2010

Source: EPZA, EPZ & SEZ Programs in Tanzania, May 2010

There are 25 EPZ with 70 manufacturing industries

whereby about 15 companies have applied for

establishment of industries in different areas in the

country. These EPZ has created around 36,000 direct

4 5

10

18

24

3

15 18

28

35

0

5

10

15

20

25

30

35

40

2006 2007 2008 2009 2010

Zone Developers Operators

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employment, and at least 120,000 indirect ones;86 and

contributing with 5 percent of national exports. The

industries operate in machinery, processing of food and

of minerals.

A study concluded that Tanzania’s EPZ program is

lagging behind, mainly due to the rigid and expensive

infrastructural issues. While EPZ firms have been

enjoying fiscal incentives, the government has not been

reaping benefits from the scheme as well as borne

fiscal losses in terms of huge tax exemptions extending

over up to 10 years.87 The EPZ program also face a

number of other challenges: High cost of operations and

production due to unreliable supply of electricity and

water made the EPZ operating enterprises

uncompetitive in the international markets.88

There are two EPZs on Zanzibar, where there previously

have been unconfirmed reports of trade union rights

violations.

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APPENDIX: ADDITIONAL DATA

Table 29: Status of Tanzania’s Ratified ILO Conventions, 2016

Subject and/or right Convention Ratification

date

Fundamental Conventions

Freedom of association and collective bargaining

C087 - Freedom of Association and Protection of the Right to Organise, 1948 2000

C098 - Right to Organise and Collective Bargaining Convention, 1949 1962

Elimination of all forms of forced labour

C029 - Forced Labour Convention, 1930 1962

C105 - Abolition of Forced Labour Convention, 1957 1962

Effective abolition of child labour

C138 - Minimum Age Convention, 1973 1998

C182 - Worst Forms of Child Labour Convention, 1999 2001

Elimination of discri-mination in employment

C100 - Equal Remuneration Convention, 1951 2002

C111 - Discrimination (Employment and Occupation) Convention, 1958 2002

Governance Conventions

Labour inspection C081 - Labour Inspection Convention, 1947 Not ratified

C129 - Labour Inspection (Agriculture) Convention, 1969 Not ratified

Employment policy C122 - Employment Policy Convention, 1964 Not ratified

Tripartism C144 - Tripartite Consultation (International Labour Standards) Convention, 1976 1983

Up-to-date Conventions

Wages

C094 - Labour Clauses (Public Contracts) Convention, 1949 1962

C095 - Protection of Wages Convention, 1949 1962

C131 - Minimum Wage Fixing Convention, 1970 1983

Industrial relations C135 - Workers’ Representatives Convention, 1971 1983

C154 - Collective Bargaining Convention, 1981 1998

Vocational guidance and training

C140 - Paid Educational Leave Convention 1983

C142 - Human Resources Development Convention 1983

Occupational Safety and Health

C148 - Working Environment (Air Pollution, Noise and Vibration), 1977 1983

C170 - Chemicals Convention, 1990 1999

Specific categories of workers

C149 - Nursing Personnel Convention, 1977 1983

Dockworkers C152 - Occupational Safety and Health (Dock Work) Convention, 1979 1983

Note: Fundamental Conventions are the eight most important ILO conventions that cover four fundamental principles and rights at work. Equivalent to basic human rights at work. Governance Conventions are four conventions that the ILO has designated as important to building national institutions and capacities that serve to promote employment. In other words, conventions that promotes a well-regulated and well-functioning labour market. In addition, there are 71 conventions, which ILO considers “up-to-date" and actively promotes. Source: ILO, NORMLEX

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Table 30: Status of Trade Unions in Tanzania, 2016

Trade Unions Total

Members Women

Members

Estimated potential members

No. of CBAs

Workers covered by

CBAs

No. of OHS Committees

at workplaces

Affiliated to TUCTA

CHODAWU - Conservation, Hotel Domestic and Allied Workers Union

39,666 10,976 11,479 35 N/A 7

COTWU - Communication Transport Workers Union of Tanzania

6,043 1,301 6,180 15 1,703 4

TTU - Tanzania Teachers Union/ Chama cha Waalimu Tanzania

265,921 111,641 46,770 1 266,039 0

DOWUTA - Dock Workers Union of Tanzania

3,865 - 325 2 3,810 1

RAAWU - Researchers, Academician and Allied Workers Union

12,437 4,468 2,864 4 N/A 2

TALGWU - Tanzania Local Government Workers Union

59,903 32,145 - 1 N/A 0

TAMICO - Tanzania Mines, Energy and Construction Workers Union

12,071 1,421 17,820 10 18,765 10

TEWUTA - Telecommunication Workers Union of Tanzania

1,593 631 6,439 3 1,627 2

TPAWU - Tanzania Plantation and Agricultural Workers Union

47,861 16,769 20,580 198 N/A 25

TRAWU - Tanzania Railways Workers Union

3,540 391 478 2 3568 0

TUGHE - Trade Union of Government and Health Workers

66,038 26,973 29,366 5 300 2

TUICO - Tanzania Union of Industrial and Commercial Workers *

73,122 27,192 22,500 31 35,438 345

Not affiliated to TUCTA

TASU - Tanzania Seafarers Union

841 40 640 3 741 0

TFCAWU - Tanzania Fishing Crew and Allied Workers’ Union

2,400 - - - - -

TUJ - Tanzania Union of Journalists

150 - - - - -

TAFIMU 573 - - - - -

IGWUTA 676 - - - - -

TASIWU 2,851 - - - - -

TUPSE 1,102 - - - - -

MPETU 303 - - - - -

FIBUCA 4,508 - - - - -

PRIPPAWUTA 361 - - - - -

NUMET 1,182 - - - - -

* Data of TUICO’s total and women union membership are from June 2015.

Note: An addition eight trade unions are not affiliated with TUCTA, but lack data of members. These following trade unions are: TMW, TPU, TAWU, THTU, TARWOTU, TMDPWU, DOSHITWA, and TAWUTA.89 Source: TUCTA and LO/FTF Council research.

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Tanzania and Zanzibar 2016 Page 30

Table 31: Trade Union Centre and affiliates in Zanzibar, 2016

Trade unions Total

Members Female

Members No. of CBAs

Workers covered by CBAs

No. of OSH committees

at workplaces

ZATUC - The Zanzibar Trade Union Congress 19,959 7,397 7 3,300 24

COTWU-ZNZ - Zanzibar Communication and Transport Workers’ Union

1,125 329 1 720 4

ZASU - Zanzibar Seafarers Union 3,920 3 - - 1

TUICO-Z - Zanzibar Union of Industrial and commercial Workers

984 393 2 335 -

ZUPHE - Zanzibar Union for Public and Health employees 2,257 1,207 - - 12

CHODAWU-Z - Zanzibar Conservation, Hotel, Domestic and Allied Workers’ Union

1,739

688 3 1,900 -

ZATU - Zanzibar Teachers’ Union 5,833 3,347 - - -

ZAFICOWU - Zanzibar Financial and Commercial Workers Union

551

291 1 55 -

TEWUTA-Z - Zanzibar Telecommunication Workers Union 336 76 - - 1

ZAPSWU - Zanzibar Public sector Workers Union 3,214 1,063 1 345 6

Source: ZATUC and LO/FTF Council research.

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Tanzania and Zanzibar 2016 Page 31

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