Dar es Salaam. In today’s rapidly globalizing world, the strength of a nation’s judicial system plays an indispensable role in fostering sustainable economic growth.
President of Tanzania, Dr Samia Suluhu Hassan, Prime Minister Kassim Majaliwa, and economists have consistently underscored the critical relationship between a robust judiciary and economic development.
For the Head of State, the judicial system is integral to enhancing the investment climate, ensuring that property rights are protected, contracts are enforced, and businesses can operate in a fair and transparent environment.
Under her leadership, Tanzania has made significant strides in judicial reforms, including the introduction of digital platforms and specialized courts for commercial cases, which streamline the legal process and expedite case resolution.
For Mr Majaliwa, the judiciary is not just a tool for upholding law and order but a pivotal driver of the country’s growth trajectory.
“A strengthened justice delivery system within judiciaries is very important for regional integration and economic growth,” said the Premier, emphasizing the role of a transparent and efficient legal system in attracting both local and foreign investments.
He made the remarks while inaugurating the 21st East African Magistrates and Judges’ Association (EAMJA) Conference and Annual General Meeting in Arusha, on behalf of the President, Dr Samia.
Economic experts who spoke to The BizLens on Wednesday echo this sentiment, agreeing that a well-functioning judiciary fosters a favorable environment for businesses to thrive.
Prof Abel Kinyondo, an economist from the University of Dar es Salaam, noted that businesses, both local and international, are more likely to invest in an economy where they know their rights will be protected, contracts will be enforced, and disputes will be resolved equitably.
“When businesses feel secure in the legal landscape, they are more likely to expand and innovate. This, in turn, drives economic prosperity,” said Prof Kinyondo.
He went on to add: “No developed country undermines property rights, and it is here that the rule of law takes its rightful seat.”
In this context, Tanzania has prioritized strengthening the independence and effectiveness of its courts to encourage both domestic and foreign investments.
Confidence in the system
At the heart of a flourishing economy lies trust—trust in the institutions that regulate the market and uphold fairness.
Economic experts agree that an efficient and impartial judicial system can significantly reduce the risks involved in doing business, making it easier for companies to operate with confidence.
In this context, Tanzania has seen a concerted effort to enhance the functionality of its judicial system in recent years.
The reforms in the judiciary, particularly in the Commercial Court Division, have been instrumental in creating a more predictable environment for investors.
The government has set up a series of measures to speed up case handling, reduce backlogs, and ensure that both large corporations and small businesses can resolve disputes swiftly.
The power of fair and timely justice
An economist and lecturer at the University of Dodoma, Dr Mwinuka Lutengano, told The BizLens on Wednesday that in a globalized economy, the speed at which legal cases are resolved can be a deal-breaker for businesses.
“A slow legal system can deter investment, disrupt operations, and reduce confidence among potential business partners,” he cautioned.
Adding: “In contrast, a fast and efficient legal process can enhance business environment stability and foster economic growth by ensuring timely resolution of disputes.”
Through reforms, Tanzania has made significant strides in improving the efficiency of its courts.
Under President Dr Samia’s leadership, the sixth-phase government has consistently emphasized its commitment to creating a business-friendly legal environment where disputes are resolved promptly and fairly.
One of Tanzania’s key milestones is the establishment of specialized courts for commercial cases.
“We are committed to ensuring that the legal process does not become a barrier to growth,” Dr Samia has been quoted as saying on several occasions, underscoring the government’s focus on fostering a legal system that supports, rather than hinders business development.
The introduction of digital platforms to manage cases and court filings has streamlined processes, enabling faster case resolution.
This is critical for the country’s competitiveness on the global stage, where speed is often a defining factor in investment decisions.
The role of transparency
Beyond speed, transparency in legal proceedings is essential for establishing a sound business environment.
When businesspeople know that their legal challenges will be handled impartially, without favoritism or corruption, they are more likely to view the country as a stable investment hub.
Transparency also encourages fair competition, which is vital for economic growth.
To this end, strengthening judicial independence, enhancing accountability, and providing fair access to justice have been at the forefront of reform initiatives.
These efforts have resulted in improved rankings for Tanzania in global indices measuring ease of doing business and transparency.
Access to justice for all
A strong judiciary is not only about efficiency and transparency; it is also about ensuring equal access to justice for everyone.
In emerging economies, the marginalized and small businesses often suffer the most from inefficient or corrupt legal systems.
By improving access to justice for all citizens, the government can promote inclusivity and create a fairer society, which is beneficial for long-term economic growth.
The Tanzanian government has been actively working on initiatives to make the judicial system more accessible to the public.
For instance, mobile courts have been introduced to reach remote areas, ensuring that even those in rural parts of the country can access legal recourse.
As Prime Minister Majaliwa asserts: “A strong judiciary is the bedrock of economic stability.”
It provides a predictable environment for investors, helps maintain fair competition, and ensures that businesses can operate efficiently and transparently.
Through continuous judicial reforms, Tanzania is positioning itself as an increasingly attractive destination for investment.
As other nations look to boost their economic standing, they would do well to recognize the profound impact a strong, efficient, and transparent judicial system can have on their growth prospects.
The Tanzanian experience provides a clear lesson: for economies to thrive, they must ensure that justice is not only done but seen to be done quickly, fairly, and impartially.
