There are 4 Companies in Tanzania
that provide Due Diligence Services!

Tanzania is more known for its safari, national parks, and UNESCO heritage sites. Also, in Tanzania people are coming more for observing wildlife and lions in their natural habitat - so far, nothing about the IT sector. But it’s no surprise, since the World Bank ranked Tanzania 141/190 in the ease of doing business, and this may look somehow intimidating both for investors and for potentially interested clients of IT companies. Now, in 2020 when you have the whole of Europe, the Americas, and Asia, almost no one would choose an African country for digital services. 

With all these, Tanzania made huge progress in the digital sector, and local companies are providing non-financial aid to interested investors in their IT sector. Consulting, co-working spaces with views to safari, and mentoring are only a few of the services you can benefit from in Tanzania. Also, in the context of Covid-19, the country entered the Green Zone, with around 10 cases in the entire country. 

Why you should work with Tanzanian IT companies

So, obviously, you will not find in Tanzania a well-developed IT infrastructure and the industry overall. However, you may find in Tanzania a friendly ecosystem that will help you develop the industry, and this may be very rewarding. 

Not so many Tanzanians IT companies are present on the local market, and the ones that exist are doing BPO and working for foreign customers from their operational centers located across the country. Its strategic location and a friendly business environment can make the country for many a great place where you can combine business with a vacation. 

There are no specific restrictions and things that you should know about Tanzania when visiting it, except that you can enjoy your time and do the work you planned to do. 

What to pay attention to when working with Tanzanian IT companies

On the other hand, there are specific risks one may be exposed to in Tanzania. The undeveloped  IT industry, language barriers, and inexperienced developers and project managers can be a headache if Tanzanian IT companies were chosen as partners in a digital project. These risk factors come in contrast with the benefits the country has to offer, so taking a decision in this direction is an important step. 

How reliable are Tanzanian IT companies

You can’t really tell if Tanzanian IT companies are reliable or not. Simply because the local digital agencies didn’t take a chance to make a name for themselves on the international market - the country has a chance now to attract investors, create businesses that provide decent service quality, and start developing the country IT sector to a certain level. 

How the Tanzanian IT sector relates to the neighboring countries

In the region, there are countries that perform better and lower than Tanzania. Even though the development levels of the IT sector are not comparable between Tanzania and its neighboring countries, Kenya and Congo have managed to become the hosts of some international IT companies, but that’s probably because of the location rather than because of development. On the other hand, Uganda, Rwanda, and Burundi  - the other neighboring countries, are far from implementing digitalization at the level Tanzania is today.  Another thing that worth mentioning is that the main investor in East Africa is China and its companies. Probably, this will help the countries to develop at least in some fields which are more essential than IT. 

Due diligence services are like thorough investigations that help businesses make informed decisions. They assess risks and opportunities when entering into partnerships, acquisitions, or other critical business transactions.

Many IT companies offer due diligence services, specializing in analyzing technology, data security, and compliance aspects of potential business ventures. Notable IT companies providing due diligence services include Deloitte, KPMG, and Ernst & Young (EY).

Due diligence service providers use a combination of tools and technologies to assess various aspects of a business. These may include data analytics platforms, cybersecurity tools, compliance management software, and financial modeling software. They also leverage document management systems and communication tools for efficient collaboration during due diligence processes.

Due diligence and audit services share similarities in their examination of the financial and operational aspects of a business. However, they differ in scope and purpose. Due diligence is typically conducted before entering into a business transaction to evaluate the potential risks and rewards. In contrast, audit services are often part of ongoing financial reporting and compliance requirements within a business.

Due diligence services are closely related to other advisory and consulting services, including:

• Financial Advisory: Providing financial insights and recommendations.

• Cybersecurity Assessment: Evaluating a company's cybersecurity posture.

• Mergers and Acquisitions (M&A) Consulting: Assisting in the strategic aspects of M&A transactions.

• Compliance Consulting: Ensuring adherence to industry regulations and standards.

Selecting the best IT company for due diligence services requires evaluating their expertise, industry knowledge, track record, and the comprehensiveness of their due diligence process. Seek providers who can tailor their services to your specific industry and transaction type.

Due diligence service providers are essential for various projects, including:

• Mergers and Acquisitions: Evaluating the financial health and potential risks of target companies.

• Investment Assessments: Analyzing potential investments in startups or new ventures.

• Partnership Agreements: Assessing the suitability and risks of partnering with another organization.

• Regulatory Compliance: Ensuring adherence to data protection and industry-specific regulations.

Conducting due diligence is essential for businesses of all sizes and industries. Some examples include private equity firms, which need to assess potential investments and portfolio companies; startups, which must evaluate the feasibility and risks of new business ventures; large corporations, which conduct due diligence on acquisitions and strategic partnerships; and financial institutions, who ensure compliance and risk management in lending and investments.

The cost of due diligence services can vary significantly based on the scope and complexity of the project. Factors such as the size of the target company, industry regulations, and the depth of analysis required influence the price. In the US, costs can range from a few thousand dollars to millions for complex M&A transactions. UK and Australian costs can be similar but may also vary depending on regional factors and the specific nature of the project. It's advisable to obtain quotes and assess the value provided by service providers before proceeding with due diligence.