Analysis Of The Tanzania’s Investment And Special Economic Zones Bill, 2024
The Investment and Special Economic Zones Bill, 2024 of Tanzania introduces significant reforms aimed at enhancing Tanzania’s investment climate.
This analysis evaluates the Act’s strengths and weaknesses, particularly concerning its ability to attract investments in the manufacturing sector, which is a priority for the government of the United Republic of Tanzania and reflected in the Tanzania National Vision 2050.
Key Strengths of the Act
Establishment of a Centralized Authority
The Act establishes the Tanzania Investment and Special Economic Zones Authority (TISEZA) as a one-stop center for investors.
This is a combination of the Export Processing Zone Authority and the Tanzania Investment Centre, which means that all investments will fall under one authority.
This structure centralizes investment facilitation. For manufacturing investors, streamlined services such as licensing, land acquisition, and permits are critical. Furthermore, there is a proposed obligation now for all investments in the country to register themselves with TISEZA, whether they will be eligible for incentives.
This will allow TISEZA to have accurate data on the investments in the country.
Comprehensive Incentives
Investors in Special Economic Zones (SEZs) enjoy generous incentives, including:
Exemptions from customs duties, VAT, and corporate income tax for up to ten years.
Duty-free importation of essential equipment and construction materials.
Exemptions from local government taxes and port charges.
Facilitated issuance of business visas for foreign employees.
Such fiscal incentives make the manufacturing sector attractive, particularly for export-oriented industries requiring capital-intensive operations.
Integration with Technology
The proposed Act mandates an integrated electronic system linking all authorities involved in licensing, permits, and clearances. This technology-driven approach already exists and is functioning within the Tanzania Investment Center therefore building on what already exists can improve transparency and efficiency, ensuring timely support for manufacturers who often require precise coordination of multiple regulatory approvals.
Mondaq.com
The Investment and Special Economic Zones Bill, 2024 of Tanzania introduces significant reforms aimed at enhancing Tanzania’s investment climate.
This analysis evaluates the Act’s strengths and weaknesses, particularly concerning its ability to attract investments in the manufacturing sector, which is a priority for the government of the United Republic of Tanzania and reflected in the Tanzania National Vision 2050.
Key Strengths of the Act
Establishment of a Centralized Authority
The Act establishes the Tanzania Investment and Special Economic Zones Authority (TISEZA) as a one-stop center for investors.
This is a combination of the Export Processing Zone Authority and the Tanzania Investment Centre, which means that all investments will fall under one authority.
This structure centralizes investment facilitation. For manufacturing investors, streamlined services such as licensing, land acquisition, and permits are critical. Furthermore, there is a proposed obligation now for all investments in the country to register themselves with TISEZA, whether they will be eligible for incentives.
This will allow TISEZA to have accurate data on the investments in the country.
Comprehensive Incentives
Investors in Special Economic Zones (SEZs) enjoy generous incentives, including:
Exemptions from customs duties, VAT, and corporate income tax for up to ten years.
Duty-free importation of essential equipment and construction materials.
Exemptions from local government taxes and port charges.
Facilitated issuance of business visas for foreign employees.
Such fiscal incentives make the manufacturing sector attractive, particularly for export-oriented industries requiring capital-intensive operations.
Integration with Technology
The proposed Act mandates an integrated electronic system linking all authorities involved in licensing, permits, and clearances. This technology-driven approach already exists and is functioning within the Tanzania Investment Center therefore building on what already exists can improve transparency and efficiency, ensuring timely support for manufacturers who often require precise coordination of multiple regulatory approvals.
Mondaq.com
