IFLR 1000
The Guide to the World's Leading Financial Law Firms

Tanzania went through an election in late 2010 and as with every election the disruption to investments and the internal economy is significant. Firms note that prior to the election there was a mini run on the banks with companies taking Tanzanian shillings out of the country for a few months.

"Last year was an election year so there was a slowdown and the people were taking money out of banks - the shilling is a weak currency, a bit unstable and very weak at the moment against the US dollar, it is at a 45 year low and having an impact on importers," says one partner.

Despite this there has been a relatively consistent level of activity and the government has been making an effort to attract further investment and better structure the investments.

The country is seeing activity in the mining and oil & gas sectors. "The mining sector is picking up, there is a national natural resources steering committee headed by the prime minister as a way of attracting big investments and offering sweeteners to investors for big projects," says a local lawyer.

A new mining act in November 2010 "allows the government to participate in mining interests with investors and gives the government a stake of 5% – 20% in projects," says a partner, who adds that "the mining group would also ultimately have to give shares to the public, but it is very negotiable". The Act also introduced new tax breaks in various sectors. "As a result, some areas are very busy and there are a number of new clients in copper concessions in the west of the country," says a partner.

In oil and gas, additional offshore hydrocarbon reserves were discovered to supplement the existing producing Songo Songo gas field and the Government has claimed that there could be enough natural gas to supply the entire East African region. The discoveries have increased activity in the energy sector with players such as BP, Tullow Oil and Halliburton establishing a more permanent presence.

Another development has been the real estate boom in Dar es Salaam, a trend also noted in neighbouring countries. As in Kenya, the boom is not completely based on demand and there are suggestions that a market correction may be on its way.

Adept Chambers is gathering momentum in the market and is well known to clients in Southern and Eastern Africa. The attractions are head of litigation Frederick Ringo and transactions head Mustafa Tharoo. According to a client: "Tharoo is very good in drafting documents and with financial institutions."

One of the top firms says: "They are very good, we consider them our main rivals, a lot of overseas work for investors, we see them quite a lot and they are very capable." In 2011 it grew in headcount, adding senior associate Nasra Hassan from Mkono & Co and others, and it now boasts the largest corporate team in Tanzania. The firm is also part of the Africa Legal Network (ALN).

In big deals, Tharoo and Sarah Massamu advised both Cumberland and Jeppe Star on sale of Jeppe Star to a consortium of HSBC Investment Bank and Satya Capital, marking the largest private equity deal of 2010. Tharoo also worked with Amish Shah to assist global natural gas company BGI on its operations in Tanzania and its farm-in with Ophir for off-shore blocks 1, 3 and 4.

Tharoo, Massamu and Shamiza Ratanzi acted for HIS Towers on its abandoned $100 million acquisition of the tower assets of MIC Tanzania and also advised Kenya Commercial Bank, KCB Tanzania and I&M Bank on a $38 million syndicated project finance facility for Lake Cement Tanzania.

Mkono & Co is the Tanzanian powerhouse. "Very solid, the largest law firm, [well] connected," says an in-house counsel.

"I use them in major litigations and also with transactions involving banks and financing and for this I would say they are top class in Tanzania," says a local client. Another says it is "a one stop shop, big law firm which can do everything". The firm also has an expat partner, former partner in the Belgian office of Wilmer Cutler Pickering Hale & Dorr, Karel Daele.

Peers, who point out that Nimrod Mkono is largely tied up with his managerial role these days, say: "They have done international work for many many years, while everyone else was sleeping, but now others are doing international work. It is losing out a bit, but has been redeveloping and is a very good firm". In late 2010 the firm recruited a cross-border consultant, Filip Tack, from Belgian firm Vermulst Verhaeghe Graafsma Bronckers.

Wilbert Kapinga heads the corporate transactions practice. In July 2010 leading a team of Joy Alliy, Bijal Mehta and Patrick Ache, he advised Standard Chartered on a $120 million syndicated loan to Agri Commodities & Finance.

The same team was acting for Trinity International on the establishment of a $400 million bio-fuels project in Tanzania and advising the Hilton Group on a proposed hotel project in Zanzibar. In another on-going deal, Kapinga, Alliy, Rehema Khalid and Aisha Sinda were assisting Dasos Capital on its proposed acquisition of a majority shareholding in a Tanzanian teak company.

The firm also manages an office in Burundi.

IMMMA is a well-established firm with broad competencies in the corporate/commercial sphere. Commentators also note that the firm has useful connections in the country.

"Of the law firms that I use, I would consider them the best in terms of quality of service," says a local client from a global company. "You do not just get an ordinary legal opinion. I highly consider them, whatever I get is highly researched work and you expect to be surprised, they tell you what the market is like and what the recent changes were."

Another client praises the firm for "speed and quality of organisation and business continuity, it is not typical of this part of the world, they have partners, junior partners, associates and divisions of specialisation". The client adds that the firm "can create the next generation, it is that type of institution".

Sadock Magai led a team to advise the National Bank of Commerce in an audit process to inspect lending practices and to improve securities practices to secure facilities. Magai also led a team to assist Stanbic Bank Tanzania on a similar audit related to securities and regulatory matters.

In 2011, Protase Ishengoma was representing the government of Tanzania and National Development Corporation on the $3 billion concessions for the Mchuchuma coal and thermal power plant project, which includes a planned 600MW power plant, and Liganga iron-ore complex for the production of iron and steel. Ishengoma was also advising Aldwych International and Ruhudji Power Company on a public-private partnership (PPP) agreement for the establishment of a hydropower plant in the Njombe district.

There is a lingering perception that Rex Attorneys has lost some ground in the market over the past few years. However, this perception is questionable as the firm is still a regular fixture on big ticket deals, mining and oil related especially, and consistent positive feedback pushes it up a tier this year.

One local in-house counsel of a global company recommends the firm "for mining and petroleum; it is the best one stop shop for these". "We have come up against them in a number of deals," says a competitor, "and they deserve to be highly recommended".

In notable M&A mandates, the firm advised Hardy Bowen Mantra Tanzania on its $1 billion sale to ARMZ Uranium Holdings, the largest ever deal in the uranium industry in Tanzania. Aside from the high value and sensitive nature of the deal, the acquisition was done in a highly regulated sector. The firm was also representing one of the parties on the proposed acquisition by Dasos Capital of a majority shareholding in a Tanzanian teak company.

On the financing side, firm advised client Helios Tanzania as it secured syndicated financing from Standard Bank for $105 million. The firm was also advising Helios on an acquisition transaction.

CRB Africa Legal is attractive for its integration into the Norton Rose network, which gives the firm access to international training, expertise and resources as well as large mandates, and for well-established local partner Charles Rwechungura who, says a client, "is preeminent, the most distinguished commercial lawyer there".

Adam Lovett, a UK qualified partner of Norton Rose Africa Legal, and UK trained Nicholas Zervos are consultants at the firm and lead on many deals. In recent developments, CRB recruited Cyril Pesha (2010), former managing partner of Pesha & Co and in-house counsel at the Tanzania Development Finance Company, and partner Abdul Abdallah (2011) from IMMMA.

In 2011, Rwechungura and Pesha were busy advising Precision Air and Tanzanite One on their respective IPOs on the Dar es Salaam stock exchange. Tanzanite One's IPO will be done in conjunction with a listing on the LSE. The pair was also acting for the Industrial Development Corporation of South Africa on a $47 million finance facility to Mtibwa Sugar Estates for rehabilitation and expansion of its operations.

Rwechungura and Zervos were advising HSBC and GIEK on a $100 million facility for the Ministry of Finance and Economic Affairs in connection with supply installation and commissioning of a gas-fired power plant in Dar es Salaam.

Lovett meanwhile worked on a $105 million syndicated financing by Standard Bank (the client) for Helios and a $44 million African Development Bank (ADB) financing for the construction of an undersea cable to the Seychelles. Elsewhere the firm has been active on financings for other clients such as Stanbic Bank Tanzania and ABC Bank.

FB Attorneys is traditionally known for litigation and arbitration expertise but the firm has been increasing its corporate transactional practice significantly and has a very strong deal list for 2010/2011. It handles 50/50 litigation and transactional and is ranked for the first time.

"We are completely satisfied with the services provided by FB Attorneys," says a client from a global company, "we had some previous experiences with other two law firms and they were not good". The client adds that "considering just other Tanzanian law firms and Tanzania reality itself, I could attribute a nine to FB Attorneys' services... they have treated us with lots of professionalism and in general, provided us prompt responses".

In December 2010, Fayaz Bhojani, Gaudiosus Ishengoma and Mustafa Chandoo advised ARMZ Uranium Holdings on its $1 billion acquisition of Mantra Tanzania, the first ever uranium transaction in Tanzania. The deal was done within a sensitive and very highly regulated sector and involved the sale of all shares to a Canadian company, along with environmental approval.

Bhojani and Ishengoma also acted for a Tanzanian food manufacturer alongside an international firm for syndicated loans of $75 million for expansion plans. In 2011 the pair was also busy acting for Vaksons Investments on construction and financing aspects for the development of a housing complex with over 1000 homes. Ohase one and two of the projects has a combined value of $287 million.

In January 2011 the pair closed a deal for Sharaf Logistics on the $27 million financing for an inland container and vehicle depot in Dar es Salaam.

FK Law Chambers is has a good reputation especially in tax work. The firm developed its name prior to the split with Ako Law and loss of Krista Bates and Kibuta Ongwamuhana, however under managing partner Florens Luoga and senior partner Angelo Mapunda the firm holds a steady course.

"Maybe it is on a par with the top firms," says a client, "though FK is my preference in tax matters especially, it is one of the most distinguished law firms in tax". Peers agree that the firm turns over a lot of tax work.

Ako Law has been a big player in Tanzania over the years and one of its key attractions is its integration with Clyde & Co, allowing it to offer international standards and expertise.

Locally, the firm has taken a knock with the departure in late 2010 of Krista Bates, a leading key figure in the local corporate/commercial market. Bates left for a leading firm in Kenya and colleague Peter Huljich also left the firm with Bates. The departures have rocked the firm's reputation, leaving some clients unsure: "They lost a couple of very good people," says one.

Ako still dominates in tax with the well-known Kibuta Ongwamuhana. "The tax practice is still very, very strong with Kibuta. He is preeminent, head and shoulders above the rest," says an in-house counsel. In corporate, sources comment that the firm is "driving deals out of London, they do many trade, energy and aviation deals".

In top deals, Peter Gray and local senior associate Teresa Hettich advised Econet Wireless Global and its subsidiaries on a number of ongoing bridge financing from international institutions, so far totalling $139 million, to fund expansion plans primarily in Zimbabwe and Burundi.

London based Philip Rogers, again with Hettich, acted for the Commonwealth Development Corporation (CDC) on international and local law aspects of the sale of its majority stake in KilomberoValley Teak Company to the Global Environment Fund in March 2011. Associates Lotus Menezes and Angela Mndolwa supported Gide Loyrette Nouel to advise Tanesco on Tanzanian regulatory and other issues for its Kinyerezi 240MW gas-to-power project.