Governing ministries

Government ministries which facilitate trade

The government has two ministries which are directly involved in facilitating commercial activities in the country.

These ministries are

1. Ministry of Trade and Industries
2. Ministry of Finance

a. The Ministry of Commerce and Industries

In Tanzania, the ministry concerning with business affairs in the Ministry of Commerce and Industries. This ministries is responsible for the promotion and development of home and foreign trade. The ministry regulated the retail and wholesale activities. It also responsible for providing advisory services to traders. It controls all imports from other countries and protects home infant industries from unfair competition from foreign multinational corporations.

Organization

Even through organization of this ministry may always change, it is basically divided into the following departments:

1. Administrative department
2. Department of commerce
3. Department of industries.

i. Administration department (section)

This is charged with the responsibility of overall administration and formulating of the ministry's policies.

Department of commerce

This department is responsible for the promotion of commercial sectors i.e. Trading and commercial services.

This departments is sub divided into:

1. Internal trade section
2. Commercial trade section
3. Export trade guarantee section

Internal trade section

This section is concerning with the regulation of trading activities within the country. It is responsible for:

Ensuring that the weight and measures used by traders and businessmen are of required standards.

1. Controlling prices of essential commodities such as fuel, sugar, etc.
2. Ensuring that the essential goods are equally distributed within the country.
3. Issuing of trading license to the prospective retailers and wholesalers.
4. Provision of training and advisory services to traders and ministry staff.
5. Supplying business information and statistics to the business firms.
6. Solving trade disputes.

External trade section

This section responsible for promotion and development of Tanzanian products in international market. Most of its activities are performed by the Board of External Trade (B.E.T) which was instituted in 1977 and started operations in the same year.

Board of External Trade (B.E.T)

It was set up with the main objective of keeping a continuous review of export promotion policies in consultation with the concerned Trading and Industries Ministry. It makes an intensive study of the problems facing export of the country and makes recommendations to the government from the time to time for securing its policy adjustments to stimulate exports.

It gives particular attention to product development, improvement in export marketing techniques, provision of commercial services to exporters, import substitution. Etc.

Functions and objectives of Board of External Trade

Marketing of Tanzanian products in the foreign market.

1. Advising the manufacturers how to improve the quality of their products in order to get bigger market overseas.
2. Arranging the trade fairs and exhibition. In foreign countries to introduce Tanzanian products in those countries.
3. Publishing and providing information on the responsibilities of the expansion of exports.
4. Providing training facilities on exporter matters.
5. Sending trading delegations study terms for expert study teams of markets abroad.
6. Encouraging the production and marketing of handcrafts.

ii. Commercial services section

This section is responsible for regulation promotion and development of commercial services in Tanzania for the benefit of producers, traders and consumers. Those commercial services include: Insurance and communication warehousing etc.

Export credit guarantee section

This section provides insurance for exporters to cover risk of being unpaid where credit has been allowed.

ii. Department of industries

This department is specifically responsible for the promotion and development of industries in Tanzania.

The ministry through this department:

1. Formulates the industrial policy and encourage the establishment of new industry in both public and private sector including foreign investors.
2. Induces the industrialists to establish new industry in less developed areas.
3. Cooperate with the department of commerce to give protection to the domestics industries against the foreign competition.
4. Provision of financial assistance to the industrialists.

b. The Ministry of Finance

This is the ministry responsible for control of all financial sectors of a country. The ministry of finance applies instruments of fiscal policies i.e. Taxation and government expenditures to regulate business activities. For example when there is low purchasing power due to unemployment, the ministry increasing spending and reduces tax. The ministry of finance also applies instruments of monetary policy such as open market operation (OMO) through the central bank to control money supply in order to regulate the economy. For example when there is inflation The central bank reduces money supply.