Tanzania eases regulations to attract investments

DAR ES SALAAM: THE government has assured foreign investors of an improved investment climate, stressing timely provision of necessary incentives for profitable operations.

Tanzania Investment Centre’s (TIC) Board of Directors’ Chairman, Dr Binilith Mahenge said on Friday that the government has eased the environment of doing business purposely to promote investment and boost businesses in the country.

He was speaking during the Dialogue Forum for Foreign Investors in Tanzania that took place in Dar es Sa-laam.

The dialogue forum, which was organised by the TIC and the Tanzania Revenue Authority (TRA) brought together over 500 foreign investors in the country who were informed on various developments the government has undertaken to support business growth.

The forum was also attended by representatives from the government agencies under the TIC’s One Stop Facilitation Centre including the Business Registration and Licensing Agency (BRELA) and the TRA’s Commissioner General, Mr Yusuph Mwenda.

Dr Mahenge said under President Samia Suluhu Hassan, the government has adopted an open-door policy, inviting global investors to invest in Tanzania while ensuring a fair playing field for profit making.

“Our government operates an open-door policy for businesses and investors from around the world, with no preference for any specific country. By investing in Tanzania, you can expect quick returns on your investment,” Dr Mahenge assured.

He added that the country is committed to continuously improving the institutions responsible for coordinating, encouraging, promoting and facilitating investment in Tanzania.

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As a result, the government has adopted the new Investment Act, 2022, which extends the duration for foreign investors to receive fiscal incentives from three to five years.

Moreover, the new Act reduces the time for obtaining investment licenses from 14 days to just seven days.

He added that the Act guarantees foreign investors access to internal arbitration, allowing conflicting parties to settle disputes under Tanzania’s arbitration laws or through the International Centre for Settlement of Investment Disputes (ICSID).

Dr Mahenge reminded attendees that President Samia recently inaugurated the Tax Commission as the primary body for coordinating tax reforms in the country.

He pledged that recommendations from foreign investors during the dialogue forum will be considered by the Tax Commission.

Dr Mahenge further said the government has implemented institutional and ministerial reforms, including the establishment of the Ministry of Planning and Investment and the merger of the TIC with the Export Processing Zones Authority (EPZA) to enhance efficiency in monitoring investment activities.

He insisted that the dialogue forum reflects the government’s commitment to listening to investors, understanding their concerns and identifying sustainable solutions to ensure their businesses operate smoothly.

He pointed out that foreign investment, which accounts for about 60 per cent of the country’s total investment, is a key driver of job creation, new technologies and overall socio-economic development.

For his part, TRA’s Commissioner General, Mr Mwenda, said the revenue authority has adopted Information Communication Technologies (ICT) to reduce the time investors spend on tax payments.

The TRA boss assured that the authority will continue to assist investors in securing their tax incentives by leveraging the joint technical team formed with TIC to address their concerns.