The framework for competition policy enforcement was created by the Fair Competition Act 2003 (Act). The Act prescribes that where there is an acquisition of shares, a business or other assets resulting in a change of control of an asset or business in Tanzania of a requisite value, the merger is mandatorily referable to the Fair Competition Commission (FCC).
It has been a tumultuous year in the Tanzanian legal market, marked by significant lateral movements and even the emergence of a new firm. Leading lawyers Steven De Backer and Charles Rwechungura left Mkono & Co and Rex Attorneys, respectively, while a large swathe of FK Law Chambers lawyers left the firm to set up a new practice called Ako Law....
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It has been a tumultuous year in the Tanzanian legal market, marked by significant lateral movements and even the emergence of a new firm. Leading lawyers Steven De Backer and Charles Rwechungura left Mkono & Co and Rex Attorneys, respectively, while a large swathe of FK Law Chambers lawyers left the firm to set up a new practice called Ako Law.
If the legal market has created excitement, the actual work has not proved such a draw. Tanzania is not hit as hard as western countries by the global downturn, but there have been effects. A lack of liquidity has affected the M&A market for example, reducing deal flow dramatically. Capital markets work has seen little activity too; a couple of IPOs are are in the pipeline, but partners foresee growth in this market based on a regional rather than a national outlook.
What is worrying is that arguments between corporations and government entities about tax, combined with a lack of power generation capability is threatening Tanzania's attractiveness for investment and status as one of Africa's five emerging economies.
However, one partner notes there is still some investment activity coming from outside Tanzania: "We are still seeing money from funds set up two years ago. For investors, Africa can be sexier than Europe."
Another note of concern for the legal market is the general quality of lawyers. Commentators feel there is a lack of training for lawyers coming from the universities, creating problems for the firms. International clients find a similar concern in the experience of some local lawyers. "The thing with Tanzania is that their lawyers are very expensive and not so good," says an international client of one firm.
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