U4 Anti-Corruption Resource Centre

This Anti-Corruption Helpdesk brief was produced in response to a query from a U4 Partner Agency. The U4 Helpdesk is operated by Transparency International in collaboration with the U4 Anti-Corruption Resource Centre based at the Chr. Michelsen Institute.

Query

Please provide us with an overview of corruption in Tanzania, with an emphasis on corruption challenges related to joint ventures and local content development. To the extent possible, please also provide an overview of main actors in the fight against corruption and promotion of accountability and transparency.

Content

1. Overview of corruption in Tanzania
2. Corruption challenges associated with joint ventures and local content development
3. Governance structure and anti-corruption efforts
4. Main actors in the fight against corruption
5. References

Summary

Tanzania has undergone a significant transformation since independence. Now a multi-party democracy with strong economic growth, the government has taken a variety of steps towards good governance and anti-corruption through its National Anti-Corruption Strategy and Action Plan. While there is an established media and civil society presence, the government’s restrictions on freedom of press and association limit the role these stakeholders can play in the fight against corruption.

Against this backdrop, corruption is still rampant and is an issue of particular concern in the context of the country’s growing extractives industry. Corruption both within the public and the private sector risks undermining any benefit that citizens can gain from the extraction of natural resources.

Joint ventures – both in the form of public-private partnerships and between companies – are a common practice for companies wishing to gain entry into Tanzanian markets. The complex corporate nature of joint ventures presents additional corruption challenges, in particular when they are combined with local content policies aimed at adding value to the local economy. When poorly executed, these local content policies can create conditions conducive to rent-seeking behaviour.

Authors

Samira Lindner, tihelpdesk@transparency.org

Date

07/03/2014

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