Licensing Laws and Implications for Private Investment: The Case of Tanzania

Marandu, Edward E.

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Title:	Licensing Laws and Implications for Private Investment: The Case of Tanzania
Author:	Marandu, Edward E.
Year:	2004
Periodical:	African Development Review
Volume:	16
Issue:	2
Period:	September
Pages:	363-384
Language:	English
Geographic term:	Tanzania
Subjects:	investments private sector energy policy electricity Development and Technology Economics and Trade Law, Human Rights and Violence
External link:	https://onlinelibrary.wiley.com/doi/10.1111/j.1017-6772.2004.00095.x/pdf
Abstract:	This article investigates the licensing provisions in the Electricity Ordinance of Tanganyika, the principal Act governing the electricity sector in Tanzania since 1931, that are believed to influence private sector investment. There are three main strands to the analytical methodology - textual analysis, actual practice and perceptions of key stakeholders. The findings suggest that there is sufficient evidence to support the belief that the existing licensing laws in Tanzania do not provide the necessary features for attracting private investment, namely clarity, efficiency and transparency. More specifically the Electricity Ordinance is so outdated that it is not fit for amendment; instead it should be considered for revocation and a new law be enacted. The new law should: (a) provide for a clear licensing procedure in the sense that it should specify what activities need licence; who can apply for licence; where one can apply for licence; what documents to fill; (b) provide for efficiency-enforcing provisions such as stipulating the time frame for the regulator to finish processing an application; (c) provide for a transparent licensing procedure in the sense that it should prescribe a large amount of openness (publishing of applications and that minutes be on open display as required in Uganda and Zimbabwe). The proposed multisector regulator for utilities is a step in the right direction for it reduces the chances for regulatory capture, thus reinforcing transparency in the dealings of the regulator. Bibliogr., note, sum. in English and French. [Journal abstract, adapted]

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