The previous structure was disintegrated and lacked linkage of the investment and special economic zones (SEZ), thus the process was long and lacked linkage, investment was under TIC and SEZ was under Export Processing Zone Authority (EPZA).
EPZA specifically deals with investments in manufacturing industries within designated export zones. Its primary focus is on encouraging new investments in manufacturing for export purposes, with strict conditions. For example, only 20% of the products manufactured within the EPZ zones can be sold in the Tanzanian domestic market, and the rest must be exported. EPZA's scope is limited to activities within these zones, emphasizing export-oriented manufacturing and infrastructure improvements linked to the zones.
TIC encourages a wide range of investments, including both new businesses and the expansion of existing enterprises. Unlike EPZA, TIC does not restrict investments to manufacturing industries or export-oriented activities. Investors registered with TIC establish diverse types of businesses, such as manufacturing, services, or other sectors. There are no limitations on exporting products; investors can choose to sell their goods only within Tanzania, only in foreign markets, or both.
These two public institutions overlapped in functions and operations creating inefficiency in the management of investments and resulted in high operating costs, to ensure alignment the institutions were merged together, the new legislation SCOPE OF ITS APPLICATION, specifying that it applies to investors except those involved in activities such as mineral exploration and extraction under the Mining Law, oil exploration and pipeline construction under the Petroleum Law, and those engaged in the manufacturing, marketing, or distribution of hazardous chemicals, weapons, or explosives. The regulatory authority will serve all investors, whether their activities fall under specific zones or sectors, providing necessary permits and approvals for establishing and operating investments.
as a semi-autonomous body responsible for coordinating, promoting, and regulating investment activities. Its functions include facilitating investor registration, issuing licenses, promoting investment opportunities, overseeing infrastructure development, and ensuring compliance with statutory requirements.
THE PROCEDURES FOR ESTABLISHING AND MANAGING SPECIAL ECONOMIC ZONES, include identification of suitable land, delineation of zone boundaries, and the process for declaring areas as economic zones through official notices. The law stipulates the management of customs within zones, import and export procedures, and the handling of goods and services within these zones, ensuring smooth operations and compliance with national and international trade laws.
INCENTIVES, with provisions for tax exemptions, customs duty waivers, VAT exemptions, and reduced port charges for investments that meet certain criteria, such as strategic importance, technological innovation, or export orientation. These incentives are designed to make investments more attractive, especially in sectors prioritized by national development plans.
INVESTMENT PROMOTION, including the creation of a comprehensive register of investors, the issuance of certificates and licenses, and the establishment of electronic systems for efficient service delivery. It also highlights the role of the Authority in resolving disputes, managing complaints, and ensuring that both domestic and foreign investors enjoy equal treatment under the law.
MEASURES TO SAFEGUARD INVESTMENTS, including provisions against expropriation without fair compensation, and guarantees the repatriation of profits, capital, and dividends, subject to tax obligations. It also establishes the legal procedures for handling violations, misconduct, and disputes, ensuring transparency and accountability.
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