This report highlights the state of the business environment in Tanzania by presenting both the trends and current status of key areas affecting DB. The next section set the analytical stage by outlining the conceptual framework followed by methodology (section 3) and review of policies (section 4). Section 5 as the core section of the report, presents the trends and the current status of the business environment in Tanzania. Discussion on national competitiveness follows next section 6 and conclusion in section 7.