Embassy of the Netherlands in Tanzania Covid-19 Economic Update
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Embassy of the Netherlands in Tanzania
Covid-19 Economic Update
Latest update: 28 April 2020
Publication Note:
The Embassy has carefully compiled this Covid-19 Economic Update by selecting and assessing
publicly available information using sources from Tanzanian and Dutch government authorities,
sector organizations, reputable law- tax, and consultancy firms, and international organizations
This update serves to enable Dutch businesses with general information and multiple web links to
make better-informed decisions. The Embassy is not providing any recommendations and neither
responsible for the use nor for the quality of the information provided. The Embassy continues to
monitor developments closely and will update this document regularly. The Embassy would also
welcome suggestions or comments to improve this Economic Update
Contact us via dar-lnv@minbuza.nl (agri) or dar-ea@minbuza.nl (general)
1CURRENT ECONOMIC SITUATION & (POTENTIAL) ECONOMIC IMPACTS
On 16 March, Tanzania reported its first case of Covid-19. Even though this first case was reported only
recently, the pandemic has already negatively affected key economic sectors in Tanzania such as the tourism
and hospitality sectors. Given the current worldwide nature of the pandemic and the measures taken by
governments, Covid-19 affects daily operations of almost all businesses across all sectors. While impacts in
some sectors are immediate, others may take time to manifest in Tanzania. Until now, the Government of
Tanzania has taken numerous measures, including suspending international passengers’ flights, travel
restrictions and suspension of public gatherings. The Government of Tanzania has established a Covid-19
taskforce and associated sub-committees composed by Ministers and Permanent Secretaries to coordinate
responses. As Covid-19 could possibly further spread in Tanzania, additional measures from the Government
of Tanzania cannot be ruled out. The Embassy is until now not aware of any economic stimulus package
adopted by the Government of Tanzania to combat Covid-19. Numerous international organizations, sector
organizations, law- tax, and consultancy firms have conducted assessments on the (potential) economic
impact of Covid-19 on Tanzania, East Africa and Sub-Saharan Africa at large and provide general guidance on
how to respond.
• World Bank, Africa's Pulse, No. 21, Spring 2020: An Analysis of Issues Shaping Africa’s Economic
Future: https://openknowledge.worldbank.org/handle/10986/33541
• The Economist Intelligence Unit Briefing Sheet Tanzania, April 2020,
http://country.eiu.com/article.aspx?articleid=129333996&Country=Tanzania&topic=Summary&subt
opic=Briefing+sheet
• European Union, 8 April, Q&A: Global EU response to the coronavirus pandemic,
https://ec.europa.eu/commission/presscorner/detail/en/QANDA_20_606
• Economic Commission for Africa, 13 March, Economic Impact of the COVID 19 on Africa:
https://www.uneca.org/sites/default/files/uploaded-documents/stories/eca_analysis_-_covid-
19_macroeconomiceffects.pdf
• UNDP in Tanzania, Support to the National Response to Contain the Impact of COVID19:
https://www.undp.org/content/dam/rba/docs/COVID-19-CO-Response/undp-rba-covid-tanzania-
apr2020.pdf
• East African Business Council, Private Sector recommendations to EAC partner states to mitigate
impact of covid-19 pandemic. http://eabc-online.com/aboutus/objectives-and-strategies?id=269
• Tanzania Investment Centre (TIC), Covid-19 impact assessment survey on investment:
http://tic.go.tz/images/publication/1586594313.pdf.
• McKinsey & Company, Tackling COVID-19 in Africa, April 2020, https://www.mckinsey.com/featured-
insights/middle-east-and-africa/tackling-covid-19-in-africa
AGRICULTURE
• An Agricultural Advisory Committee has been formed under the Agricultural Council of Tanzania to
assess the impact of Covid-19 on the agricultural sector. This committee has presented a preliminary
report with recommendations to the Ministry of Agriculture and the Ministry of Industry and Trade.
The Permanent Secretaries of the two Ministries are mandated to inform the public once decisions are
made.
• The Horticulture industry encounters a major hurdle in transporting perishable goods to the
international markets as most global airlines suspended flights. The Tanzania Horticulture Association
(TAHA) in collaboration with the Government of Tanzania has secured cargo services with Ethiopian
Airlines to ferry goods to international markets. This provides cargo freight from Kilimanjaro (KIA) to
Liege (LGG), Belgium starting from 9th April 2020 https://www.taha.or.tz/taha/newsroom
Contact us via dar-lnv@minbuza.nl (agri) or dar-ea@minbuza.nl (general)
2LABOUR
Covid-19 will have various effects on the existing employment contracts/relationships, as well as on
independent contractor arrangements. The Embassy is not aware of any official public information (yet) made
available by the Government of Tanzania, but several law firms have provided (legal) analyses on the Covid-19
implications on employment related matters.
• FB Attorneys, Legal Update – 27 March 2020, Labour Laws and Coronavirus – what you need to know:
https://fbattorneys.co.tz/faq-labour-laws-and-coronavirus-what-you-need-to-know/
• FB Attorneys, Q&A – 30 March 2020, https://fbattorneys.co.tz/qa-30-march-2020/
• Fin & Law. The Legal Implications of the Novel Coronavirus (COVID-19): Contractual, Employment and
Immigration Aspects in Tanzania https://finandlaw.com/the-legal-implication-of-corona-virus-covid-
19-contractual-employment-and-immigration-aspects-in-tanzania/
• Clyde & Co, 21 April, COVID-19 Tanzania: Employment update,
https://www.clydeco.com/insight/article/covid-19-tanzania-employment-update
TRAVEL & IMMIGRATION
The Government of Tanzania has taken various additional measures on permits, visa, certificates and
migration documents. It has also imposed measures on all travelers entering Tanzania and for traveling within
Tanzania. Several law firms have provided (legal) updates analyzing these measures.
• Press Release, Tanzania Immigration Service Department, 24 April,
https://twitter.com/UhamiajiTz/status/1253710589135896584 - N.B. This information is not (yet)
available on the website of the Tanzania Immigration Service Department but only on the
Immigration Department’s Twitter account
• Press Release, Tanzania Immigration Service Department, 2 April,
https://www.immigration.go.tz/index.php/en/information/events/184
• VELMA LAW, 8 April, Tanzania Coronavirus Travel Restrictions – March 202,
https://www.velmalaw.co.tz/tanzania-coronavirus-travel-restrictions-march-2020/
• FB Attorneys Legal Update, 2 April 2020, Immigration grants relief to immigration status holders:
https://fbattorneys.co.tz/immigration-grants-relief-to-immigration-status-holders/
• Fin & Law, March 30, The Legal Implications of the Novel Coronavirus (COVID-19): Contractual,
Employment and Immigration Aspects in Tanzania: https://finandlaw.com/the-legal-implication-of-
corona-virus-covid-19-contractual-employment-and-immigration-aspects-in-tanzania/
The latest Dutch travel advice with FAQs on traveling to and from Tanzania can be found here
https://www.nederlandwereldwijd.nl/documenten/vragen-en-antwoorden/reisadvies-tanzania (Dutch version
only).
TAX & FISCAL
Notwithstanding Covid-19, businesses are still required to comply with tax obligations under the prevailing
Tanzanian tax laws unless there is a change in law or policy by the Government of Tanzania (which until now has
not (yet) been reported).
• https://www.bowmanslaw.com/insights/covid-19-legal-considerations-for-businesses-tanzania/
Contact us via dar-lnv@minbuza.nl (agri) or dar-ea@minbuza.nl (general)
3IMPORT & EXPORT OF GOODS AND SERVICES
Information provided by the Ministry of Health and other public sources indicate that the movement of goods
and services continues, but with additional strict (travel) measures in place. These measures include, amongst
others, restricting only 2-3 crew members per vehicle to facilitate smooth border crossing, vehicles to be
decontaminated if crew members are suspected to have Covid-19, crew for cargo planes and other vessels to
be quarantined at designated hotels or within their vessels (in case of ship) for the period of their stay and air
operators should maintain two sets of crews to work in rotation in order to minimize the chances of being
subjected to mandatory quarantine.
• Ministry of Health has issued updated travel advice to Tanzania giving measures relating to
vessels/plains/trucks/vehicles carrying goods and services: https://www.moh.go.tz/en/covid-19-info
(Travel advisory no.2 of 04.04.2020)
• Borders: the Government of Tanzania rules out closure of boarders with its neighboring countries.
Source: https://www.ippmedia.com/en/news/govt-rules-out-closure-border-over-covid-19
• Ports: President orders Dar es Salaam port to stay in operation and service the land-locked countries
for importing and exporting of goods. Source: https://allafrica.com/stories/202004120004.html
HEALTH
Kindly consult the websites below for the latest information on health updates and (preventive) measures.
• Website WHO Tanzania: https://www.who.int/countries/tza/en/
• Website WHO regional Africa: https://www.afro.who.int/health-topics/coronavirus-covid-19
• Tanzania Ministry of Health: https://www.moh.go.tz/en/covid-19-info
• IST Clinic, COVID-19: Advice on self-isolating at home, 14 April 2020,
https://www.istclinic.com/covid-19-advice-on-self-isolating-at-home/
• IST Clinic, COVID-19 Frequently Asked Questions, 6 April 2020, https://www.istclinic.com/covid-19-
frequently-asked-questions/
OTHER
• Clyde & Co, 9 April, COVID-19 Sub-Saharan Africa: Mitigating the risk of Coronavirus on
infrastructure projects: https://www.clydeco.com/insight/article/mitigating-the-risks-of-the-covid-
19-outbreak-on-infrastructure-projects-in
• UNTWO, 27 March 2020, Impact assessment of the COVID-19 outbreak on international tourism:
https://www.unwto.org/impact-assessment-of-the-covid-19-outbreak-on-international-tourism
COVID-19 AND DUTCH GOVERNMENT PRIVATE SECTOR INSTRUMENTS
Instruments for trade and doing business abroad
• The Dutch government has decided to extend the measures taken to combat the Corona-virus until
28 April 2020.
• For this reason the period in which RVO will not actively communicate about new activities such as
trade missions, trade fair participation and other events, is also extended from 6 April until 28 April
2020.
Contact us via dar-lnv@minbuza.nl (agri) or dar-ea@minbuza.nl (general)
4• Exporting companies with ongoing activities in foreign markets will have access to information via
RVO (telephone and website incl. country specific Q&As). Customized assistance will be made
available in cooperation with relevant diplomatic missions in case of more complex queries.
• Large scale physical events, trade missions and trade fair participation that were planned for June, July
and August 2020 will be cancelled;
• All planned activities (missions, fairs and conferences) in the months September until December 2020
will collectively be re-evaluated.
Export credit insurance (Atradius)
Dutch state business Atradius is extending certain conditions of its export credit insurances:
• Enabling coverage on short-term export credits < 2 years;
• Insuring indirect export transactions
• Extending country policies and country ceilings
• Offering ECG (export credit guarantees) on existing loans
• Increasing the percentage covered on counter-guarantees and working capital insurance
• Removal of the 5% down payment requirement
• Speed up processes by Fast tracking the approval process.
Demonstration projects, Feasibility studies and Investment preparation studies (DHI) (Dutch)
• Covid-19 zal ook voor veel DHI-projecten gevolgen hebben. Denk daarbij aan vertragingen agv
uitgestelde activiteiten, reisbeperkingen etc. Ook kan het zijn dat het terug moeten betalen van
subsidie, wanneer dat aan de orde is, tot problemen gaat leiden. Insteek van RVO is om hier maximaal
flexibel en pragmatisch mee om te gaan, binnen de mogelijkheden. In dergelijke gevallen vragen we u
contact met ons (DHI-contactpersonen) op te nemen en dit met ons te bespreken
• Quickscans en nieuwe aanvragen kunnen gewoon worden ingediend en worden in behandeling
genomen. Als dat aan de orde is zullen we de gevolgen van Covid-19 voor de start en het verloop van
een (nieuw) DHI-project met u gaan bespreken.
Dutch Good Growth Fund (DGGF) (Dutch)
• Voor bestaande relaties: heb je vragen of ondervind je moeilijkheden als gevolg van Covid-19? Neem
contact op met je Investment Manager om te spreken over de mogelijkheden.
• Voor nieuwe aanvragen: DTIF en DGGF blijft geopend voor aanvragen. Heb je internationale ambities
en financiering nodig? Vul de QuickScan in en een adviseur neemt contact met je op.
Trade missions, trade fair participation and other events
In view of uncertainties around the Corona outbreak and developments in other countries, as well as limited
possibilities to immediately restart activities after April 28, all trade missions, trade fair participations and
other events planned until August 2020 will be postponed or cancelled. As longs as the MFA Travel Advice
indicates a code orange for all countries around the world, no trade missions, trade fair participation or other
events abroad will be organized.
Contact us via dar-lnv@minbuza.nl (agri) or dar-ea@minbuza.nl (general)
5Instruments within the Netherlands (Binnenlandse regelingen, Dutch only)
• Verruimde BMKB-regeling https://www.rvo.nl/actueel/nieuws/coronavirus-verruimde-bmkb-
regeling-voor-ondernemers-versneld-open
• De tijdelijke Noodmaatregel Overbrugging Werkgelegenheid (NOW)
https://www.uwv.nl/werkgevers/actueel/now.aspx?friendlyurl=/werkgevers/actueel/noodfonds-
overbrugging-werkgelegenheid-now.aspx
• Belastingmaatregelen voor ondernemers (inclusief zzp’ers)
https://www.belastingdienst.nl/wps/wcm/connect/nl/ondernemers/content/coronavirus-
belastingmaatregelen-om-ondernemers-te-helpen
• Garantie Ondernemingsfinanciering https://www.rvo.nl/subsidie-en-financieringswijzer/garantie-
ondernemingsfinanciering-go
Relevant websites for more information
• MKB Nederland https://www.mkb.nl/corona
• Rijksdienst van Ondernemend Nederland RVO https://www.rvo.nl/coronavirus/veelgestelde-vragen-
zakendoen-en-coronavirus-land
• Atradius Dutch State Business https://atradiusdutchstatebusiness.nl/en/
• Buitenlandse Zaken https://www.nederlandwereldwijd.nl/reizen/reisadviezen
• RIVM https://www.rivm.nl/coronavirus
• VNO-NCW https://www.vno-ncw.nl/
• KVK https://ondernemersplein.kvk.nl/coronavirus-wegwijzer-voor-ondernemers /
• The Netherlands-African Business Council (NABC): https://www.nabc.nl/africa-business-
news/2/business/422/zakendoen-met-afrika-na-corona-nog-belangrijker
Contact us via dar-lnv@minbuza.nl (agri) or dar-ea@minbuza.nl (general)
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