Tanzania is rich in natural resources and offers numerous investment opportunities. To attract global investors, the Government of the United Republic of Tanzania has streamlined investment regulations. The Tanzania Investment Centre (TIC) serves as the primary government agency responsible for managing investment-related matters.
Functions of the Tanzania Investment Centre (TIC):
- Promoting investment activities in Tanzania.
- Resolving administrative challenges faced by local and international investors.
- Assisting with enterprise registration and establishment processes.
- Helping investors obtain necessary licenses, work permits, visas, approvals, and services.
- Supporting investors in securing sites and establishing Export Processing Zone (EPZ) projects, particularly in sectors such as Agriculture, Mining, Infrastructure, Fisheries, and Tourism.
- Issuing Certificates of Incentives, investment guarantees, and registering technology agreements for investments exceeding US$300,000 for foreign and US$100,000 for local investors.
- Providing and sharing updated information about investment opportunities, benefits, and available incentives.
- Facilitating effective collaboration between investors and public/private sector organizations, including the Tanzania Chambers of Commerce, Industry and Agriculture (TCCIA), Confederation of Tanzania Industries (CTI), Tanzania National Business Council (TNBC), and Tanzania Private Sector Foundation (TPSF).
Incentives for TIC Certificate Holders:
- Recognition and protection of private property, with safeguards against non-commercial risks. Tanzania is an active member of the Multilateral Investment Guarantee Agency (MIGA) and the International Centre for Settlement of Investment Disputes (ICSID), allowing investors the right to international arbitration in case of disputes with the government.
- Reduced import tariffs on capital project items (5% import duty for priority sectors and 0% for lead sectors).
- Attractive investment allowances and deductions, including 100% capital allowance on industrial buildings, plants, machinery, and agricultural expenditure.
- Deferred VAT on project capital goods, as specified in the tariff book, shown on monthly returns and cleared after audit.
- Duty drawback on imported raw materials.
- Zero-rated VAT on inputs for Mining, Agriculture, manufactured export goods, foodstuff, and tourism.
- Accelerated depreciation allowance on capital goods using a straight-line method.
- The ability to carry forward business losses for up to five years against future profits.
- A reasonable corporate tax rate of 30% and a low withholding tax on loan interest payments.
- Full rights to transfer 100% of foreign exchange profits and capital outside the country.
- Simplified acquisition of permits, including residence and work permits, industrial licenses, and trading licenses, through TIC’s one-stop-shop service.
- Automatic permits for employing an initial quota of five foreign nationals for projects holding a Certificate of Incentives.
Mining and Support Services for the Mining Industry: Incentives for Economic Infrastructure Projects The incentives provided for economic infrastructure projects are consistent with those in the mining sector.
Incentives for the Tourism Sector In addition to the incentives available for holders of Certificates of Incentives under “Economic Infrastructure,” essential hotel facilities are classified as capital goods as outlined in the Capital Goods Schedule annex.
Incentives for the Agriculture Sector
- Duty-free import of capital goods, farm equipment, fertilizers, pesticides, etc.
- Zero-rated VAT on capital goods, farm equipment, fertilizers, pesticides, etc.
- Additional incentives are provided as detailed under “Economic Infrastructure.”
Incentives for Petroleum Exploration and Development
Required Documents for Investment Registration with the Tanzania Investment Centre (TIC) Note: Applications must be submitted directly to the TIC Registry or Reception in Dar es Salaam.
Facilitation Services and Fees The TIC facilitates services for all investors, whether they are covered by the TIC Act (1997) or not.
Fees for Services:
- Certificate of Incentives: US $750
- Application Forms: US $120
- Additional Services: 10% fee added to charges by relevant departments.
Trade in Tanzania Tanzania prioritizes trade as a key strategy for achieving national economic transformation and poverty reduction, led by the private sector as a driver of economic growth. The country offers competitive fiscal incentives across priority sectors such as manufacturing, agriculture, tourism, petroleum, gas, and mining. For all sectors except petroleum and gas, capital goods and parts imports are zero-rated for import duties, with VAT deferred.
Research expenses in agriculture are deductible for income tax purposes, and capital acquisitions are fully expensed. Importation of capital goods, spare parts, hotel facilities, and explosive materials for oil and gas exploration is duty-free. Tanzania also has double taxation agreements with Denmark, India, Italy, Norway, Sweden, Kenya, Uganda, Zambia, and Finland.
Leading Investment Sectors:
- Agriculture and Agro-based Industries
- Mining
- Petroleum and Gas
- Tourism
- Infrastructure
Priority Sectors:
- Energy
- Manufacturing
- Chemical Industries
- Natural Resources (Fishing & Forestry)
- Construction and Real Estate Development
- Management Consultancy
- Human Resource Development (Hospitals, Health Centers, Educational Facilities)
- Broadcasting (Radio and TV)
- Export-oriented projects
Import Products Tanzania imports a range of commodities, including agricultural machinery and pesticides, industrial raw materials, machinery and transport equipment, petroleum and petroleum products, construction materials, and consumer goods.
Export Products Key exports include minerals (gold, gemstones, diamonds, coal), coffee, cotton, cashew nuts, tea, sisal, tobacco, pyrethrum, and cloves. Major imports consist of machinery, transport equipment, textiles, clothing, and petroleum products.
Trading Partners Tanzania’s major trading partners are China, Germany, Japan, India, the European Union, UAE, UK, Kenya, and South Africa. Major commercial hubs include Dar es Salaam, Mwanza, Zanzibar, Arusha, Mbeya, Tanga, Kilimanjaro, and Kigoma.
