James Pius Rushomesa

Picture the scene. Three years ago – towards the end of 2022 – I am sitting with the senior management of Orecorp (the ASX-listed then majority owners of the Nyanzaga Project) at the Seacliff Hotel in Dar es Salaam. We are on the terrace overlooking the Indian Ocean, enjoying sundowners. In spite of the beautiful view, all is not entirely well with the world. Having put the challenges of previous years behind it, Tanzania was enjoying a notable resurgence in the eyes of investors.

A proposed amendment in the Draft Taxation Laws Amendment Bill will create a substantial cashflow problem for schools if it comes into effect. Many schools supplement their income through taxable commercial activities such as letting facilities like sports fields and school halls; providing accommodation during certain periods; and tuckshop sales. Where the value of these supplies exceeds the ZAR 1 million registration threshold, the schools are obliged to register as VAT vendors.