2013 Investors guide to tanzania - Tanzania Investment Centre
2013 Investors guide to tanzania - Tanzania Investment Centre
2013 Investors guide to tanzania - Tanzania Investment Centre
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<strong>2013</strong> <strong>Inves<strong>to</strong>rs</strong> <strong>guide</strong> <strong>to</strong> <strong>Tanzania</strong><br />
<strong>2013</strong> <strong>Inves<strong>to</strong>rs</strong><br />
Guide <strong>to</strong> <strong>Tanzania</strong><br />
<strong>Tanzania</strong> <strong>Investment</strong> <strong>Centre</strong><br />
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<strong>2013</strong> <strong>Inves<strong>to</strong>rs</strong> <strong>guide</strong> <strong>to</strong> <strong>Tanzania</strong><br />
Written & produced by:<br />
<strong>Tanzania</strong> <strong>Investment</strong> <strong>Centre</strong> (TIC)<br />
Shaaban Robert Street<br />
Plot No: 9A & B,<br />
P.O. Box: 938<br />
Dar es Salaam, <strong>Tanzania</strong><br />
Email: information@tic.co.tz<br />
Pho<strong>to</strong>graphy credits:<br />
Salim Ally, Malimbika Pho<strong>to</strong>graphy<br />
www.mtaa-wa-malimbika.tumblr.com<br />
malimbika@gmail.com<br />
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<strong>2013</strong> <strong>Inves<strong>to</strong>rs</strong> <strong>guide</strong> <strong>to</strong> <strong>Tanzania</strong><br />
Table of Contents<br />
1. Reasons <strong>to</strong> invest in <strong>Tanzania</strong> _______________________________________________________________ 18<br />
2. Executive Summary ___________________________________________________________________________ 19<br />
3. About <strong>Tanzania</strong> ________________________________________________________________________________ 21<br />
3.1. Geography and Climate ______________________________________________________________ 21<br />
3.2. People and Culture ___________________________________________________________________ 22<br />
3.3. Political System and Governance ____________________________________________________ 22<br />
3.4. The Economy _________________________________________________________________________ 23<br />
4. <strong>Investment</strong> Opportunities ___________________________________________________________________ 24<br />
4.1. Why Invest in <strong>Tanzania</strong>? _____________________________________________________________ 24<br />
5. Priority Areas of <strong>Investment</strong> ________________________________________________________________ 27<br />
5.1. Agricultural & Lives<strong>to</strong>ck Development _____________________________________________ 27<br />
5.1.1. Southern Agricultural Growth Corridor of <strong>Tanzania</strong> (SAGCOT) _____________ 29<br />
5.1.2. Sugarcane Cultivation ___________________________________________________________ 31<br />
5.1.3. Rice Crop Growing _______________________________________________________________ 33<br />
5.1.4. Lives<strong>to</strong>ck Sec<strong>to</strong>r _________________________________________________________________ 36<br />
5.1.5. Horticulture Sec<strong>to</strong>r ______________________________________________________________ 37<br />
5.2. Natural Resources ____________________________________________________________________ 39<br />
5.2.1. Fisheries __________________________________________________________________________ 40<br />
5.2.2. Forestry __________________________________________________________________________ 45<br />
5.2.3. Beekeeping _______________________________________________________________________ 47<br />
5.3. Tourism _______________________________________________________________________________ 48<br />
5.4. Manufacturing ________________________________________________________________________ 51<br />
5.4.1. Export Processing and Special Economic Zones (EPZ) _______________________ 53<br />
5.5. Oil and Gas Exploration and Production ____________________________________________ 55<br />
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<strong>2013</strong> <strong>Inves<strong>to</strong>rs</strong> <strong>guide</strong> <strong>to</strong> <strong>Tanzania</strong><br />
5.6. Mining _________________________________________________________________________________ 56<br />
5.6.1. Reasons <strong>to</strong> Invest in <strong>Tanzania</strong> Mining Sec<strong>to</strong>r __________________________________ 58<br />
5.6.2. Mineral Endowments ___________________________________________________________ 59<br />
5.6.3. Competitive advantages of the Mining Sec<strong>to</strong>r: ________________________________ 60<br />
5.7. Real estate _____________________________________________________________________________ 61<br />
5.8. Transportation ________________________________________________________________________ 62<br />
5.8.1. <strong>Investment</strong> Opportunities Available in Roads _________________________________ 63<br />
5.8.2. <strong>Investment</strong> Opportunities Available in Railways ______________________________ 65<br />
5.8.3. <strong>Investment</strong> Opportunities Available in Maritime Transport _________________ 66<br />
5.8.4. <strong>Investment</strong> Opportunities Available in Air Transport ________________________ 66<br />
5.9. Services________________________________________________________________________________ 68<br />
5.10. Information & Communication Technology ______________________________________ 69<br />
5.11. Financial Institutions ______________________________________________________________ 70<br />
5.12. Telecommunication ________________________________________________________________ 71<br />
5.13. Energy ______________________________________________________________________________ 74<br />
5.14. Broadcasting _______________________________________________________________________ 75<br />
6. Other Areas of <strong>Investment</strong> ___________________________________________________________________ 77<br />
6.1. Education Sec<strong>to</strong>r ______________________________________________________________________ 77<br />
6.2. Health Sec<strong>to</strong>r __________________________________________________________________________ 79<br />
6.3. Insurance Services ___________________________________________________________________ 80<br />
6.4. Security Services _____________________________________________________________________ 81<br />
6.5. Construction Industry ________________________________________________________________ 82<br />
6.6. Water and Sanitation _________________________________________________________________ 83<br />
6.7. Integrated Waste Management ______________________________________________________ 84<br />
7. <strong>Investment</strong> Incentives ________________________________________________________________________ 86<br />
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7.1. <strong>Investment</strong> Tax Incentives ___________________________________________________________ 86<br />
7.2. Zero Rated VAT on Exports __________________________________________________________ 88<br />
7.2.1. Import Duty Drawback __________________________________________________________ 88<br />
7.2.2. Manufacturing Under bond _____________________________________________________ 88<br />
7.2.3. Economic infrastructure ________________________________________________________ 88<br />
7.2.4. Mineral sec<strong>to</strong>r____________________________________________________________________ 89<br />
7.2.5. Holders of Certificate of Incentives ____________________________________________ 90<br />
7.2.6. Agriculture _______________________________________________________________________ 90<br />
7.2.7. Tourism ___________________________________________________________________________ 91<br />
7.2.8. Petroleum and Gas ______________________________________________________________ 91<br />
8. Know Before You Go! __________________________________________________________________________ 92<br />
8.1. Cost and Types of Visa: _______________________________________________________________ 92<br />
8.1.1. Categories of Visa: _______________________________________________________________ 92<br />
8.1.2. General requirements for a Visa: _______________________________________________ 93<br />
8.1.3. Visa Issuing Centers _____________________________________________________________ 94<br />
8.1.4. Visa Fees __________________________________________________________________________ 94<br />
8.2. Residence Permit Application Process ______________________________________________ 94<br />
8.2.1. Types of Residence Permits: ____________________________________________________ 95<br />
8.3. Human Resources and Labour Relations ___________________________________________ 97<br />
8.3.1. Work Permit _____________________________________________________________________ 97<br />
8.3.2. Social Security ___________________________________________________________________ 98<br />
8.3.3. Workmen’s Compensation Ordinance _________________________________________ 98<br />
8.3.4. Working Hours ___________________________________________________________________ 99<br />
8.3.5. Leave & Holidays ________________________________________________________________ 99<br />
8.3.6. Maternity Leave _________________________________________________________________ 99<br />
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<strong>2013</strong> <strong>Inves<strong>to</strong>rs</strong> <strong>guide</strong> <strong>to</strong> <strong>Tanzania</strong><br />
8.3.7. Paternity Leave __________________________________________________________________ 99<br />
8.3.8. Other Statu<strong>to</strong>ry Benefits ________________________________________________________ 99<br />
8.3.9. Retrenchment and Termination Procedures __________________________________ 99<br />
8.3.10. Severance Pay ________________________________________________________________100<br />
8.3.11. Laws Regulating Various Professions ______________________________________100<br />
8.3.12. Settlement of Labour Disputes ______________________________________________100<br />
8.4. Occupational Safety and Health Administration __________________________________101<br />
8.5. Medical Insurance and Health Services ____________________________________________102<br />
8.5.1. Medical Insurance ______________________________________________________________102<br />
8.5.2. Hospitals ________________________________________________________________________102<br />
8.6. Emergency Services _________________________________________________________________103<br />
8.7. Airports in <strong>Tanzania</strong> _________________________________________________________________103<br />
8.8. Accommodation Cost ________________________________________________________________103<br />
8.8.1. Hotel Accommodation _________________________________________________________103<br />
8.8.2. Residential Apartments ________________________________________________________103<br />
8.8.3. Single Family (Stand Alone) Homes ___________________________________________104<br />
8.8.4. Office Space _____________________________________________________________________104<br />
8.8.5. Warehousing Space _____________________________________________________________104<br />
8.9. Water and Utility ____________________________________________________________________104<br />
8.9.1. Water ____________________________________________________________________________104<br />
8.9.2. Electricity _______________________________________________________________________105<br />
8.10. Means of Local Transport ________________________________________________________106<br />
8.11. Telecommunication _______________________________________________________________107<br />
8.11.1. National ICT Infrastructure Backbone _____________________________________107<br />
8.12. Opening a Business Bank Account _______________________________________________107<br />
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9. About <strong>Tanzania</strong> <strong>Investment</strong> <strong>Centre</strong> _______________________________________________________ 109<br />
9.1. Organization Description ___________________________________________________________109<br />
9.2. Functions of the <strong>Centre</strong> _____________________________________________________________109<br />
9.3. One S<strong>to</strong>p Facilitation <strong>Centre</strong> ________________________________________________________110<br />
9.4. Public-Private Partnerships ________________________________________________________111<br />
10. One S<strong>to</strong>p Facilitation Services _____________________________________________________________ 114<br />
10.1. Immigration _______________________________________________________________________114<br />
10.2. Land Acquisition __________________________________________________________________115<br />
10.2.1. Right of Occupancy___________________________________________________________115<br />
10.2.2. For Urban Land _______________________________________________________________116<br />
10.2.3. For Farmland _________________________________________________________________117<br />
10.3. Starting a Business: _______________________________________________________________119<br />
10.3.1. Company Registration Procedures _________________________________________119<br />
10.3.2. Types of Companies ____________________________________________________________119<br />
10.3.3. Patent Registration___________________________________________________________121<br />
10.3.4. Industrial License ____________________________________________________________122<br />
10.3.5. Business Licensing ___________________________________________________________123<br />
10.3.6. Certificate of Incentives _____________________________________________________125<br />
11. Other Important Processes ________________________________________________________________ 128<br />
11.1. Taxation ____________________________________________________________________________128<br />
11.2. Registration with Domestic Revenue and Tax Structure and Administration 129<br />
11.2.1. Value Added Tax (VAT) _________________________________________________________131<br />
11.2.2. VAT Special Relief _______________________________________________________________131<br />
11.2.3. VAT Refunds _____________________________________________________________________131<br />
11.2.4. VAT Schedules __________________________________________________________________131<br />
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11.3. Taxes on International Trade_____________________________________________________132<br />
11.3.1. Import Duty __________________________________________________________________132<br />
11.4. Agreement on Cus<strong>to</strong>ms Value (ACV) ____________________________________________133<br />
11.4.1. Excise Duty ___________________________________________________________________133<br />
11.4.2. Stamp Duty ___________________________________________________________________133<br />
11.4.3. Mo<strong>to</strong>r Vehicle _________________________________________________________________133<br />
11.4.4. Double Taxation Agreements _______________________________________________134<br />
11.5. <strong>Investment</strong> Guarantees ___________________________________________________________134<br />
11.6. Bilateral Trade & <strong>Investment</strong> Agreements ______________________________________134<br />
11.7. Settlements of Commercial Disputes ____________________________________________135<br />
11.8. Fire and Rescue Compliance _____________________________________________________135<br />
12. Appendices ____________________________________________________________________________________ 136<br />
Appendix A - <strong>Tanzania</strong> Fact Sheet _________________________________________________________________ 136<br />
Appendix B – List of Official Public Holidays ____________________________________________________ 137<br />
Appendix C – Main Annual Trade Exhibitions ___________________________________________________ 138<br />
Appendix D – Sources of Further Information __________________________________________________ 140<br />
Appendix E – <strong>Tanzania</strong> Missions Abroad ________________________________________________________ 144<br />
Appendix F – Foreign Missions in <strong>Tanzania</strong> _____________________________________________________ 146<br />
Appendix G – <strong>Tanzania</strong> Africa Map________________________________________________________________ 147<br />
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<strong>2013</strong> <strong>Inves<strong>to</strong>rs</strong> <strong>guide</strong> <strong>to</strong> <strong>Tanzania</strong><br />
<strong>Investment</strong> and partnerships for mutual gain<br />
His Excellency Dr. Jakaya Mrisho Kikwete is<br />
the 4 th and current President of the United<br />
Republic of <strong>Tanzania</strong>.<br />
The President is the head of state and head<br />
of government. The President leads the<br />
executive branch of the government and is<br />
the Commander-in-Chief of the Armed<br />
Forces.<br />
Prior <strong>to</strong> his election in 2005, President<br />
Kikwete was the Minister of Foreign Affairs<br />
for ten years under his predecessor, former<br />
President Benjamin Mkapa.<br />
Dr. Jakaya Mrisho Kikwete,<br />
President, the United Republic of <strong>Tanzania</strong><br />
President Kikwete has served as the Chairperson of the African Union in 2008/09 and the<br />
Chairman of the Southern African Development Community Troika on Peace, Defense and<br />
Security in 2012/13.<br />
The government of <strong>Tanzania</strong> is committed <strong>to</strong> engaging in innovative partnerships with<br />
inves<strong>to</strong>rs <strong>to</strong> ensure development success. President Kikwete has spearheaded several<br />
such initiatives such as the Southern Agricultural Growth Corridor (SAGCOT), a publicprivate<br />
initiative <strong>to</strong> drive growth and productivity in <strong>Tanzania</strong>’s breadbasket region.<br />
“Partnerships are desirable and necessary and have worked well for <strong>Tanzania</strong>.”<br />
Remarks by the President at the World Economic Forum on Africa in Cape Town, South<br />
Africa held on May 5 th 2011.<br />
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<strong>2013</strong> <strong>Inves<strong>to</strong>rs</strong> <strong>guide</strong> <strong>to</strong> <strong>Tanzania</strong><br />
<strong>Investment</strong> promotion and facilitation in <strong>Tanzania</strong><br />
<strong>Investment</strong> promotion and facilitation in <strong>Tanzania</strong> is driven by the <strong>Tanzania</strong> <strong>Investment</strong><br />
<strong>Centre</strong> (TIC), the Government’s investment promotion agency created by an act of<br />
Parliament. The development of investment promotion policy and its execution by TIC<br />
falls under the overall responsibility of the Prime Minister’s Office (PMO) and is<br />
supervised by the Minister of State for <strong>Investment</strong> & Empowerment in the PMO.<br />
Honorable Mizengo Pinda is the current<br />
Prime Minister of <strong>Tanzania</strong> and Member of<br />
Parliament for Katavi constituency. As Prime<br />
Minister, Mr. Pinda is head of government<br />
business.<br />
“...<strong>Tanzania</strong> is ready <strong>to</strong> do business with<br />
you; our doors are wide open. Secondly, we<br />
have everything that you need <strong>to</strong> invest in<br />
<strong>Tanzania</strong>; conducive business environment,<br />
political and macroeconomic stability, a<br />
facilitative government, abundant natural<br />
resources, educated labour-force, a sizeable<br />
and captive market, unique geographical<br />
location…”<br />
Honorable Mizengo Pinda,<br />
Prime Minister, the United Republic of<br />
<strong>Tanzania</strong><br />
The Prime Minister’s keynote address at the<br />
<strong>Investment</strong> Partnership Promotion meeting<br />
held on November 2012 in Dar es Salaam<br />
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<strong>2013</strong> <strong>Inves<strong>to</strong>rs</strong> <strong>guide</strong> <strong>to</strong> <strong>Tanzania</strong><br />
Dr. Mary Michael Nagu is the current Minister<br />
of State for <strong>Investment</strong> & Empowerment<br />
under the Prime Minister’s Office; she is also<br />
a Member of Parliament for Hanang<br />
constituency.<br />
“Strengthening the private sec<strong>to</strong>r in the<br />
country is one of our priorities... we appreciate<br />
the huge contribution of the sec<strong>to</strong>r since the<br />
government ceased <strong>to</strong> participate actively in<br />
business…The government has taken various<br />
measures <strong>to</strong>wards creating [an] enabling<br />
environment for the private sec<strong>to</strong>r <strong>to</strong> prosper.<br />
Efficient implementation of the public-private<br />
partnerships constitutes one of the avenues for<br />
achieving our development goals. “<br />
Dr. Mary Michael Nagu,<br />
Minister of State for <strong>Investment</strong> &<br />
Empowerment (Prime Minister’s<br />
Office)<br />
Speaking in July <strong>2013</strong> at a workshop in Dar es<br />
Salaam on Public-Private Partnerships (PPPs)<br />
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<strong>2013</strong> <strong>Inves<strong>to</strong>rs</strong> <strong>guide</strong> <strong>to</strong> <strong>Tanzania</strong><br />
Message from the Executive Direc<strong>to</strong>r of TIC<br />
It is with great pleasure that I introduce the<br />
<strong>2013</strong> <strong>Investment</strong> Guide <strong>to</strong> readers. The<br />
<strong>Tanzania</strong> <strong>Investment</strong> <strong>Centre</strong> (TIC) has<br />
prepared this <strong>guide</strong> with the intention of<br />
providing accurate and relevant<br />
information regarding the<br />
opportunities and procedures for investing<br />
in <strong>Tanzania</strong>. Importantly, this <strong>guide</strong><br />
encompasses answers <strong>to</strong> a range of<br />
questions frequently received by TIC such<br />
as the reasons for investing in <strong>Tanzania</strong>;<br />
Juliet Rugeiyamu Kairuki,<br />
how <strong>to</strong> start up a business; how <strong>to</strong> enter<br />
Executive Direc<strong>to</strong>r, <strong>Tanzania</strong> <strong>Investment</strong><br />
the country; where <strong>to</strong> invest, how <strong>to</strong> invest<br />
<strong>Centre</strong><br />
and how <strong>to</strong> obtain business support and<br />
incentives.<br />
As this <strong>guide</strong> reveals, <strong>Tanzania</strong> offers a positive, peaceful, and stable environment for<br />
business and investment in the short, medium, and long term. The conducive investment<br />
climate is underpinned by effective political, economic and social policies that favour<br />
inves<strong>to</strong>rs seeking <strong>to</strong> take advantage of the vast and in many instances, untapped<br />
investment opportunities. <strong>Tanzania</strong> is uniquely endowed with physical attributes<br />
comparable <strong>to</strong> none in the East African region and beyond. These include offshore gas<br />
deposits, minerals, accessible harbours, vast tracts of arable land (e.g. the SAGCOT area),<br />
water bodies abundant with resources, and national parks with flora and fauna that serve<br />
as magnets for investment in <strong>to</strong>urism and other affiliated sec<strong>to</strong>rs. Most importantly,<br />
<strong>Tanzania</strong>'s human capital remains eager, friendly, and determined <strong>to</strong> contribute <strong>to</strong> efforts<br />
<strong>to</strong> attract and retain investment from both foreign and domestic sources.<br />
The Government of <strong>Tanzania</strong> through TIC offers predictable, competitive fiscal and nonfiscal<br />
teasers <strong>to</strong> the investment community (domestic and foreign) as we recognize the<br />
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<strong>2013</strong> <strong>Inves<strong>to</strong>rs</strong> <strong>guide</strong> <strong>to</strong> <strong>Tanzania</strong><br />
importance of the private sec<strong>to</strong>r as the driver and engine of growth. Amongst other<br />
things, <strong>Tanzania</strong>'s investment regime offers free repatriation of capital and the ability <strong>to</strong><br />
externalise profits, by putting fewer restrictions on capital movements.<br />
As <strong>Tanzania</strong> gears up <strong>to</strong> become a middle income country by 2025, the Government Of<br />
<strong>Tanzania</strong> has zoomed in on specific sec<strong>to</strong>rs <strong>to</strong> drive results oriented delivery in the short<br />
term. TIC feeds in<strong>to</strong> this process by providing a series of services from our one s<strong>to</strong>p<br />
centre including derivative title as security of tenure for land <strong>to</strong> foreigners as well as<br />
project specific incentives for approved strategic investments that are aligned <strong>to</strong><br />
achieving the country's long term vision. Recent gas finds in <strong>Tanzania</strong> has propelled<br />
unprecedented interest and capital inflows in<strong>to</strong> the country. We welcome these<br />
developments and encourage all prospective inves<strong>to</strong>rs <strong>to</strong> read the <strong>Tanzania</strong> <strong>Investment</strong><br />
Act as it provides clear parameters in terms of the role of TIC on matters related <strong>to</strong><br />
minerals and energy. We also invite interested parties <strong>to</strong> refer <strong>to</strong> our website<br />
(www.tic.co.tz) for further information.<br />
I thank all participating ministries and agencies from the Government of <strong>Tanzania</strong> and<br />
other institutions for their contribution <strong>to</strong> this <strong>guide</strong>.<br />
Truthfully,<br />
Juliet Rugeiyamu Kairuki<br />
Executive Direc<strong>to</strong>r, <strong>Tanzania</strong> <strong>Investment</strong> <strong>Centre</strong><br />
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Disclaimer<br />
This <strong>guide</strong>book was published <strong>to</strong> assist potential inves<strong>to</strong>rs in terms of providing access <strong>to</strong><br />
essential information regarding investments and investing in <strong>Tanzania</strong>. This <strong>guide</strong>book<br />
does not in any way give exhaustive information or detailed practical instructions. The<br />
<strong>guide</strong>book also points out sources of other information in both private and public sec<strong>to</strong>rs.<br />
Most or all of information contained in this <strong>guide</strong>book was derived from consultation<br />
among government ministries, private sec<strong>to</strong>r, and other agencies. Materials in this<br />
<strong>guide</strong>book therefore should only be used for the intended purposes and not <strong>to</strong> be used for<br />
defense in a legal dispute or any matter of that nature. Government ministries and other<br />
agencies from which information contained in this <strong>guide</strong>book was derived are listed in<br />
Appendix D - Sources of Further Information.<br />
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Abbreviations & Acronyms<br />
AGOA<br />
ATIA<br />
BoT<br />
BRELA<br />
CMSA<br />
EAC<br />
EPZ<br />
EUR<br />
GBP<br />
GDP<br />
ICT<br />
IPTL<br />
ISD<br />
ISP<br />
MIGA<br />
MoF<br />
NHIF<br />
NSSF<br />
PCCB<br />
PPP<br />
SADC<br />
SAGCOT<br />
TANESCO<br />
TBS<br />
TCRA<br />
TIC<br />
TIN<br />
TPA<br />
TPDC<br />
African Growth and Opportunity Act<br />
Africa Trade Insurance Agency<br />
Bank of <strong>Tanzania</strong><br />
Business Registration and Licensing Agency<br />
Capital Market and Securities Authority<br />
East African Community<br />
Export Processing Zones<br />
EURO<br />
British Pound<br />
Gross Domestic Product<br />
Information and Communication Technology<br />
Independent Power <strong>Tanzania</strong> Limited<br />
Insurance Supervisory Department<br />
Internet Service Provider<br />
Multilateral <strong>Investment</strong> Guarantee Agency<br />
Ministry of Finance<br />
National Health Insurance Fund<br />
National Social Security Fund<br />
Prevention Combating of Corruption Bureau<br />
Public Private Partnership<br />
Southern African Development Community<br />
Southern Agricultural Growth Corridor of <strong>Tanzania</strong><br />
<strong>Tanzania</strong> Electric Supply Limited<br />
<strong>Tanzania</strong> Bureau of Standards<br />
<strong>Tanzania</strong> Communications Regula<strong>to</strong>ry Authority<br />
<strong>Tanzania</strong> <strong>Investment</strong> <strong>Centre</strong><br />
Tax Payer Identification Number<br />
<strong>Tanzania</strong> Ports Authority<br />
<strong>Tanzania</strong> Petroleum Development Corporation<br />
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<strong>2013</strong> <strong>Inves<strong>to</strong>rs</strong> <strong>guide</strong> <strong>to</strong> <strong>Tanzania</strong><br />
TRA<br />
TTB<br />
TTCL<br />
TZS<br />
USD<br />
VRN<br />
<strong>Tanzania</strong> Revenue Authority<br />
<strong>Tanzania</strong> Tourist Board<br />
<strong>Tanzania</strong> Telecommunications Company Limited<br />
<strong>Tanzania</strong> Shilling<br />
United States Dollar<br />
VAT Registered Number<br />
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List of Exhibits<br />
Exhibit 1: Mineral Deposits Map<br />
Exhibit 2: <strong>Tanzania</strong> Trunk Road Map<br />
Exhibit 3: Airline Opera<strong>to</strong>rs Market Share<br />
Exhibit 4: Subscribers of Voice Telecommunications in <strong>Tanzania</strong><br />
Exhibit 5: Subscribers of Fixed Networks in <strong>Tanzania</strong><br />
Exhibit 6: Transport Infrastructure Network<br />
Exhibit 7: <strong>Investment</strong> Facilitation and Service Delivery<br />
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<strong>2013</strong> <strong>Inves<strong>to</strong>rs</strong> <strong>guide</strong> <strong>to</strong> <strong>Tanzania</strong><br />
1. Reasons <strong>to</strong> invest in <strong>Tanzania</strong><br />
Peace & Political Stability<br />
Strategic Location<br />
Attractive <strong>Investment</strong> Regime<br />
<strong>Investment</strong> Incentives<br />
<strong>Investment</strong> Guarantees<br />
Plenty of Natural Resources<br />
High Growth Potential<br />
Memberships of Bilateral Trade Agreements<br />
Public Private Partnerships<br />
Export Processing & Special Economic Zones<br />
Magnificent Business and Leisure Destinations<br />
<strong>Tanzania</strong> creates a strong infrastructure for all<br />
investments while providing the strong growth and<br />
security needed <strong>to</strong> proposer.<br />
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<strong>2013</strong> <strong>Inves<strong>to</strong>rs</strong> <strong>guide</strong> <strong>to</strong> <strong>Tanzania</strong><br />
2. Executive Summary<br />
<strong>Tanzania</strong>, with its large and growing domestic population, strategic location, abundance<br />
of natural resources and internal political stability, presents a uniquely attractive<br />
investment opportunity.<br />
The country with a population of 44.9 million (national census 2012) is the largest in East<br />
Africa and its new middle-class is growing rapidly. <strong>Tanzania</strong> faces the Indian Ocean; it is<br />
the natural trading gateway for the 5 landlocked countries surrounding it, which are: the<br />
Democratic Republic of Congo (DRC), Rwanda, Burundi, Uganda and Zambia. The country<br />
is further blessed with vast natural riches: minerals in the form of gold, diamonds, copper,<br />
coal; more recently large discoveries of natural gas along its shores and it enjoys vast<br />
tracts of beautiful natural scenery including game reserves and sandy beaches.<br />
Democratic principles are firmly engrained in the country; since its independence in<br />
1961, the country has never suffered a civil war and its political leaders have come <strong>to</strong><br />
power through an elec<strong>to</strong>ral process. Free-market principles are also firmly engrained and<br />
successive Governments have continued <strong>to</strong> open up and liberalize <strong>Tanzania</strong>’s economy. As<br />
a result, <strong>Tanzania</strong> has enjoyed over 5 consecutive years of 7% real GDP growth and is a<br />
member what the World Bank has dubbed the “7% Club”, a group of countries forecast <strong>to</strong><br />
achieve 7% or more real GDP growth for next decade.<br />
<strong>Investment</strong>s in <strong>Tanzania</strong> are guaranteed against nationalization and expropriation<br />
through various agreements of protection and promotion of investments such as the<br />
Multilateral <strong>Investment</strong> Guarantee Agency (MIGA), of which <strong>Tanzania</strong> is a member.<br />
<strong>Tanzania</strong> also offers access <strong>to</strong> major markets of the world, such as America and Europe,<br />
through special bilateral trade and investment agreements and arrangements, for<br />
instance, the Africa Growth Opportunity Act (AGOA) of which <strong>Tanzania</strong> is a signa<strong>to</strong>ry.<br />
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<strong>2013</strong> <strong>Inves<strong>to</strong>rs</strong> <strong>guide</strong> <strong>to</strong> <strong>Tanzania</strong><br />
Priority areas of investments are:<br />
• agriculture and lives<strong>to</strong>ck development,<br />
• natural resources,<br />
• <strong>to</strong>urism,<br />
• manufacturing,<br />
• oil and gas exploration,<br />
• mining,<br />
• commercial building,<br />
• transportation,<br />
• services, and<br />
• ICT<br />
University of Dodoma Bilila Lodge Dar es Salaam beach<br />
This <strong>guide</strong> provides prospective inves<strong>to</strong>rs and interested parties with insightful<br />
information about investing in <strong>Tanzania</strong>, including:<br />
• An overview of the main investment opportunities the country presents<br />
• An summary of the geographical, political and economic characteristics of the<br />
country<br />
• An introduction <strong>to</strong> the primary agency responsible for promoting and facilitating<br />
investment in<strong>to</strong> the country, the <strong>Tanzania</strong> <strong>Investment</strong> <strong>Centre</strong> (TIC)<br />
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<strong>2013</strong> <strong>Inves<strong>to</strong>rs</strong> <strong>guide</strong> <strong>to</strong> <strong>Tanzania</strong><br />
3. About <strong>Tanzania</strong><br />
3.1. GEOGRAPHY AND CLIMATE<br />
Mount Kilimanjaro<br />
<strong>Tanzania</strong> is a union between mainland of<br />
Tanganyika and the Zanzibar islands. The<br />
country’s <strong>to</strong>tal area covers 947,300km 2 ,<br />
inclusive of land mass and the three large<br />
fresh water lakes, namely Vic<strong>to</strong>ria,<br />
Tanganyika, and Nyasa, which form<br />
boundaries with neighbouring countries.<br />
Mount Kilimanjaro, the tallest mountain in<br />
Africa, is a dormant volcano, rising <strong>to</strong> 5,895<br />
metres, and is the only snowcapped mountain in Africa, thus, a major <strong>to</strong>urist attraction in<br />
the north- east of the country.<br />
Mount Meru, 4,565m, is <strong>to</strong> the west of<br />
Kilimanjaro and is also of volcanic origin.<br />
The Usambara and Pare mountains are also<br />
<strong>to</strong> the northeast, and, <strong>to</strong> the west of these<br />
mountains is the eastern arm of the Rift<br />
Valley. The narrow coastal belt with<br />
tropical beaches on the Indian Ocean gives<br />
Lake Vic<strong>to</strong>ria<br />
way <strong>to</strong> savannah woodlands, forests, and highland areas. The southern western highlands<br />
are dominated by the Livings<strong>to</strong>ne Mountains. The climate is tropical in most areas with<br />
average temperatures of 25 ○ C - 31 ○ C, and temperate in the highlands with temperatures<br />
of 10 ○ C - 20 ○ C. The hottest months are November <strong>to</strong> February and the coolest months are<br />
May <strong>to</strong> August.<br />
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3.2. PEOPLE AND CULTURE<br />
<strong>Tanzania</strong> is the largest nation in East Africa with a population of 44.9 million (national<br />
census 2012) growing at an annual rate of about 3%. <strong>Tanzania</strong> is also a very young<br />
country with 44% of the population below the age of 15. The people comprise not less<br />
than 120 tribes; however they are united by a common language, a common sense of<br />
purpose and common sense of nationhood. Most of the people are of Bantu origin and<br />
few of Asian descent. The majority of <strong>Tanzania</strong>ns, over 70%, live in their native rural<br />
areas, where they adhere <strong>to</strong> native cultural norms. In the cosmopolitan areas there is a<br />
diversity of people from all over the country. Overall, <strong>Tanzania</strong>ns are very warm and<br />
hospitable people who often display a positive and pleasant reception <strong>to</strong> foreigners.<br />
Kiswahili is the national language in daily use and English is the official medium of<br />
communication in secondary schools, academic institutions, and business settings.<br />
3.3. POLITICAL SYSTEM AND GOVERNANCE<br />
The Government of the United Republic of <strong>Tanzania</strong> is formed by the union of Tanganyika,<br />
called ‘Mainland <strong>Tanzania</strong>’, and Zanzibar Islands of Unguja and Pemba. The country<br />
operates as one state with two governments, namely the Union Government and the<br />
Revolutionary Government of Zanzibar. <strong>Tanzania</strong> is a democracy with a multi-party<br />
elec<strong>to</strong>ral system with 17 political parties. The President of <strong>Tanzania</strong> is the Head of State<br />
and Head of Government and is elected every 5 years and mandated <strong>to</strong> serve a maximum<br />
of two terms.<br />
The central government comprises three organs, which are:<br />
• President and Cabinet (the ‘executive branch’)<br />
• the Judiciary;<br />
• and the Parliament.<br />
Parliamentary elections take place every 5 years and several political parties participate.<br />
The constitution of the United Republic is currently undergoing review by the<br />
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<strong>2013</strong> <strong>Inves<strong>to</strong>rs</strong> <strong>guide</strong> <strong>to</strong> <strong>Tanzania</strong><br />
“Constitutional Review Commission”. The current constitution provides for the rule of<br />
law, separation of powers, and political pluralism. Since independence in 1961, the<br />
country has never suffered a civil war or a period of violent internal strife. It enjoys a high<br />
level of political stability that creates an ideal climate for investment.<br />
3.4. THE ECONOMY<br />
<strong>Tanzania</strong> is a rapidly growing emerging market; it ranks among the 20 fastest growing<br />
economies in the world. The country has exhibited a GDP growth rate of around 7% for<br />
past 5 years and it is predicted by the IMF and World Bank <strong>to</strong> continue this rapid growth<br />
for the next decade.<br />
Over the past two decades, it has been<br />
transformed from a centrally planned<br />
economy <strong>to</strong> a market oriented system<br />
through successful implementation freemarket<br />
orientated reforms. The<br />
Government has encouraged private sec<strong>to</strong>r<br />
led growth through res<strong>to</strong>ration of market<br />
forces and less Government intervention in<br />
commercial activities.<br />
Overall, the reforms have resulted in<br />
positive growth trends and impressive<br />
PSPF Commercial Towers<br />
macro -economic indica<strong>to</strong>rs with inflation rates falling from 27.4% in 1995 <strong>to</strong> about 9%<br />
in 2012.<br />
The recent discovery of large quantities of natural gas on the east coast, and the interest<br />
that inves<strong>to</strong>rs have shown in this field, is a positive sign of rapid advancement of the<br />
economy. Recent reforms are intended <strong>to</strong> improve infrastructures and private sec<strong>to</strong>r<br />
growth through Public-Private Partnerships (PPP).<br />
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4. <strong>Investment</strong> Opportunities<br />
4.1. WHY INVEST IN TANZANIA?<br />
Peace &<br />
Political<br />
Stability<br />
Strategic<br />
Location<br />
<strong>Tanzania</strong> is one of the most peaceful and politically stable countries in Africa.<br />
Since its independence in 1961, the country has never experienced a civil war<br />
or any major internal strife. <strong>Tanzania</strong>ns continue <strong>to</strong> live in peace and with a<br />
sense of a common national identity. Since the resignation of Julius Nyerere,<br />
the country’s first president, all succeeding presidents have been elected in<strong>to</strong><br />
office in fair and free elections. Presidential terms are limited <strong>to</strong> two five-year<br />
terms. This political stability provides protection <strong>to</strong> inves<strong>to</strong>rs<br />
The country’s geography is greatly beneficial. It is connected directly <strong>to</strong> the<br />
Indian Ocean giving it trade links <strong>to</strong> Asia and sits in between the ocean and 6<br />
landlocked countries (Uganda, DRC, Rwanda, Burundi, Zambia and Malawi)<br />
that rely on <strong>Tanzania</strong> for passage of goods. The country has 3 deep water<br />
ports (Dar es Salaam, Tanga and Mtwara) that are servicing the neighbouring<br />
countries. Furthermore, its membership <strong>to</strong> the SADC Free Trade Area and<br />
EAC Common Market, with developed rail and road networks, makes<br />
<strong>Tanzania</strong> a natural transportation gateway for East and Central Africa.<br />
Attractive<br />
<strong>Investment</strong><br />
Fiscal Regime<br />
<strong>Tanzania</strong> fosters a very stable and predictable Fiscal <strong>Investment</strong> Regime,<br />
which provides a soft landing <strong>to</strong> all inves<strong>to</strong>rs. It is the kind of regime that<br />
recognizes the fact that inves<strong>to</strong>rs need <strong>to</strong> recover their investment expenses<br />
prior <strong>to</strong> paying corporate taxes<br />
<strong>Investment</strong><br />
Incentives<br />
<strong>Tanzania</strong> offers a well-balanced and competitive package of fiscal incentives<br />
in comparison with other African countries. Aiming at providing competitive<br />
fiscal regime on foreign trade, <strong>Tanzania</strong> has signed double taxation treaties<br />
with numerous countries, and still is negotiating with other countries<br />
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<strong>Investment</strong><br />
Guarantee<br />
<strong>Inves<strong>to</strong>rs</strong> in <strong>Tanzania</strong> are guaranteed against nationalization and<br />
expropriation. <strong>Tanzania</strong> is a signa<strong>to</strong>ry of several multilateral and bilateral<br />
agreements on protection and promotion of investments. Just <strong>to</strong> mention the<br />
few, <strong>Tanzania</strong> is a member of Multilateral <strong>Investment</strong> Guarantee Agency<br />
(MIGA) and Africa Trade Insurance Agency (ATIA)<br />
Plenty of<br />
Natural<br />
Resources<br />
<strong>Tanzania</strong>’s untapped natural resources offer a wide range of investment<br />
opportunities; arable land, minerals and natural <strong>to</strong>urist attractions are all<br />
awaiting potential inves<strong>to</strong>rs. <strong>Tanzania</strong> is internationally renowned for its<br />
abundance of wildlife attractions and unexploited mineral reserves<br />
High Growth<br />
Potential<br />
<strong>Tanzania</strong> is an emerging economy with high growth potential through the<br />
unforeseen future. <strong>Tanzania</strong> was named best investment promoter of African<br />
<strong>Investment</strong> Promotion Agencies, 2004 competition<br />
Membership<br />
of Regional<br />
Blocs and<br />
Bilateral<br />
Trade<br />
Agreements<br />
<strong>Tanzania</strong> is a member of regional trading blocs of SADC and the EAC, as well<br />
as a beneficiary country under the preferential trade enhancing schemes<br />
offered by the AGOA legislation, of which 6,500 products enjoy duty and<br />
quota free access <strong>to</strong> the U.S.A. market. Additionally, <strong>Tanzania</strong> enjoys benefits<br />
set by the European Union Everything But Arms (EBA) and the ACP-EU<br />
Cooperation and various bilateral cooperation agreements<br />
Public<br />
Private<br />
Partnerships<br />
<strong>Tanzania</strong> embraces a strong and cooperative relationship between the<br />
government, the private sec<strong>to</strong>r and development partners, and that makes it<br />
exceptionally conducive <strong>to</strong> attracting investments<br />
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Export<br />
Processing<br />
Zones &<br />
Special<br />
Economic<br />
Zones<br />
Magnificent<br />
Business and<br />
Leisure<br />
Destination<br />
Benefit from highly advantageous special investment schemes—Export<br />
Processing Zones (EPZs) and Special Economic Zones (SEZs)<br />
The Government of <strong>Tanzania</strong> is highly determined <strong>to</strong> deploying whatever<br />
necessary measures <strong>to</strong> lower the costs of doing business and maintain a fair<br />
competition business practices. Besides, <strong>Tanzania</strong> offers an extremely<br />
gorgeous leisure opportunities, for instance global 5* Hotels, Exotic Beach<br />
Hotels, private jet and helicopter for hire, elegant mansions and apartments<br />
for both hire and buy, etc.<br />
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<strong>2013</strong> <strong>Inves<strong>to</strong>rs</strong> <strong>guide</strong> <strong>to</strong> <strong>Tanzania</strong><br />
5. Priority Areas of <strong>Investment</strong><br />
Agriculture & Lives<strong>to</strong>ck development<br />
Natural resources<br />
Tourism<br />
Manufacturing<br />
Petroleum and Mining<br />
Commercial Building<br />
Transportation<br />
Services<br />
ICT<br />
Financial Institutions<br />
Telecommunications<br />
Energy<br />
Human Resources<br />
Economic Infrastructure<br />
Broadcasting<br />
5.1. AGRICULTURAL & LIVESTOCK DEVELOPMENT<br />
Agriculture Sec<strong>to</strong>r, with annual growth rate of 6%, accounts for nearly half of national<br />
GDP contribution, 70% of rural household income, and absorbs 80% of the entire<br />
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<strong>2013</strong> <strong>Inves<strong>to</strong>rs</strong> <strong>guide</strong> <strong>to</strong> <strong>Tanzania</strong><br />
workforce. Lately, the government introduced a special agricultural revolution initiative,<br />
namely “Kilimo Kwanza”, with the aim of commercialising agriculture and improving<br />
cultivation methods of peasant farmers <strong>to</strong> supplement agribusiness and assure the<br />
country of self-sufficiency in food supplies. Agricultural and lives<strong>to</strong>ck development is the<br />
leading economic sec<strong>to</strong>r in <strong>Tanzania</strong> and remains critical for achieving sustained growth,<br />
poverty reduction, and rural development.<br />
Several reforms have been undertaken in<br />
this sec<strong>to</strong>r, such as review of land laws <strong>to</strong><br />
allow for long term leases for foreign<br />
companies and redefining the role of<br />
government and the private sec<strong>to</strong>r that<br />
allow for the latter <strong>to</strong> participate in<br />
production, processing, and marketing,<br />
Coffee beans<br />
while the former retain regula<strong>to</strong>ry and<br />
public support functions. <strong>Tanzania</strong> has enormous water resources potential. Water for<br />
irrigation can be obtained in flood basins of rivers and lakes as well as from underground<br />
sources. Potential irrigable farmland in <strong>Tanzania</strong> is approximately 29 million hectares,<br />
out of which only 280,000 hectares are under irrigation farming. This provides for high<br />
agricultural investment opportunities. In addition <strong>to</strong> the following specific investment<br />
opportunities available, this sec<strong>to</strong>r offers varying business avenues, such as importing<br />
modern-and-efficient farming equipment, for instance trac<strong>to</strong>rs and power tillers;<br />
providing training of modern farming, for example, how <strong>to</strong> use appropriate irrigation<br />
technology, etc.<br />
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5.1.1. Southern Agricultural Growth Corridor of <strong>Tanzania</strong> (SAGCOT)<br />
Agriculture is the basis of <strong>Tanzania</strong>’s economy. It is the major source of employment, a<br />
significant export earner and an important component of the national GDP. Yields are<br />
low, but with improved access <strong>to</strong> finance, infrastructure, modern farming inputs and<br />
know-how, <strong>Tanzania</strong>’s smallholder farmers could achieve much higher yields, allowing<br />
them <strong>to</strong> sell in<strong>to</strong> regional and international markets.<br />
Launched at WEF Africa in 2010, SAGCOT is a public-private partnership that aims <strong>to</strong><br />
boost agricultural productivity in <strong>Tanzania</strong> and the wider region, and thereby achieve the<br />
country’s agricultural strategy. SAGCOT will promote “clusters” of profitable agricultural<br />
farming and services businesses, with major benefits for smallholder farmers and local<br />
communities. By catalyzing large volumes of responsible private investment, the initiative<br />
aims <strong>to</strong> deliver rapid and sustainable agricultural growth and thereby tackle food<br />
security, poverty reduction and reduced vulnerability <strong>to</strong> climate change.<br />
Key features of SAGCOT include:<br />
• SAGCOT Partnership established with members from government, global business,<br />
the <strong>Tanzania</strong>n private sec<strong>to</strong>r, farmers, foundations and donor institutions.<br />
• Executive Committee co-chaired by the Minister of Agriculture of <strong>Tanzania</strong>; and<br />
the Executive Vice President (North and Central Africa) of Unilever.<br />
• SAGCOT <strong>Centre</strong> established as a formal secretariat <strong>to</strong> advance the initiative.<br />
• An <strong>Investment</strong> Blueprint outlines the initiative and opportunities.<br />
• A Catalytic Fund will soon be in place<br />
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<strong>Investment</strong> Opportunities<br />
The <strong>Investment</strong> Blueprint highlights 15 ‘early win’ investment opportunities where rapid<br />
progress could be made. These include:<br />
• Mbozi seed farm. A 3,000 hectare nucleus seed estate plus irrigated outgrower<br />
scheme for maize, soya, sunflower, sesame and pulses.<br />
• Ruvu cattle ranch. Redevelopment of a 40,000 hectare government-owned ranch,<br />
with the introduction of fattening and slaughter facilities for local breeders.<br />
• Smallholder commercialization and agro-dealer program. Providing extension<br />
services, inputs, weather insurance and market access <strong>to</strong> large numbers of<br />
smallholder farmers.<br />
• Sao Hill agri-centre. Irrigated vegetable production linked <strong>to</strong> an agriculture<br />
processing centre (including a biomass plant) with s<strong>to</strong>rage and processing<br />
facilities.<br />
Additionally, SAGCOT has prepared concrete opportunities for promotion <strong>to</strong> inves<strong>to</strong>rs:<br />
• Sugar: Opportunity <strong>to</strong> develop modern sugar operations drawing on <strong>Tanzania</strong>’s<br />
natural advantages for sugarcane cultivation, and supply the large domestic and<br />
regional sugar markets.<br />
• Rice: Opportunity <strong>to</strong> take advantage of the growing gap in rice supply by investing<br />
in rice production <strong>to</strong> serve the rapidly growing market in <strong>Tanzania</strong> and the region.<br />
• Lives<strong>to</strong>ck: Opportunities <strong>to</strong> benefit from exponential growth in demand for<br />
lives<strong>to</strong>ck products across the region.<br />
• Horticulture: Opportunities <strong>to</strong> establish modern vegetables, fruits, flowers, spices<br />
and horticultural seed business operations for domestic, regional and<br />
international markets.<br />
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5.1.2. Sugarcane Cultivation<br />
Aim:<br />
To develop modern sugar operations drawing on <strong>Tanzania</strong>’s natural advantages for<br />
sugarcane cultivation, and supply the large domestic and regional sugar markets.<br />
Current situation:<br />
• All 4 existing sugar estates and mills have been rehabilitated by local and<br />
international inves<strong>to</strong>rs and production has increased very fast since privatization<br />
in the early 2000’s, growing from 135,000 <strong>to</strong>ns in 2001 <strong>to</strong> 300,000 <strong>to</strong>ns sugar in<br />
2011<br />
• As current estates reach peak production and expansion potential, the<br />
government has put a high priority on attracting inves<strong>to</strong>rs <strong>to</strong> develop new<br />
greenfield sugar projects<br />
• Attesting of the attractiveness of the sec<strong>to</strong>r in <strong>Tanzania</strong>, global sugar industry<br />
players already present in <strong>Tanzania</strong>, Illovo and Tereos, are eager <strong>to</strong> explore these<br />
new opportunities<br />
Market Opportunity:<br />
• With rapidly growing population and rising incomes, the <strong>Tanzania</strong>n sugar market<br />
growth is estimated at 6% p.a.<br />
• The current sugar supply gap is approximately 300,000 <strong>to</strong>ns, expected <strong>to</strong> increase<br />
sharply as current estates are limited in their expansion<br />
• An additional 400,000 <strong>to</strong>ns sugar supply gap is observed in the EAC common<br />
market<br />
• region, progressing at >10% p.a., presenting a significant import substitution<br />
opportunity within a common market protected by a 30% external tariff<br />
• Booming global ethanol market favouring African producers and the local power<br />
market offer strong market opportunities for other sugarcane products and byproducts<br />
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<strong>2013</strong> <strong>Inves<strong>to</strong>rs</strong> <strong>guide</strong> <strong>to</strong> <strong>Tanzania</strong><br />
300,000 <strong>to</strong>n sugar production deficit in <strong>Tanzania</strong> (metric <strong>to</strong>ns)<br />
<strong>Tanzania</strong>’s Competitive Advantage:<br />
• With ideal soils and climate for sugar cane production, <strong>Tanzania</strong> boasts among the<br />
highest average cane yields in the World, at 120 <strong>to</strong>ns/ha<br />
• With ample rainfall and generous rivers fed by the high hinterland plateaus,<br />
<strong>Tanzania</strong> has among the best irrigation potential in the sub-region<br />
• Soil and <strong>to</strong>pography in target sugar zones are ideal for industrial sugarcane<br />
cultivation, and the government is preparing new sites for greenfield sugar<br />
projects<br />
• Under the Southern Agricultural Growth Corridor of <strong>Tanzania</strong> (SAGCOT),<br />
numerous donors (World Bank, USAID, DFID, etc.) are investing in infrastructure<br />
and institutional capacity that will benefit inves<strong>to</strong>rs<br />
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Average sugarcane yields – 2010 (<strong>to</strong>ns/ha)<br />
5.1.3. Rice Crop Growing<br />
Aim:<br />
To take advantage of the growing gap in rice supply by investing in rice production <strong>to</strong><br />
serve the rapidly growing market in <strong>Tanzania</strong> and the region.<br />
Current Situation:<br />
• Around 90% of <strong>Tanzania</strong>’s rice production is done by small--scale farmers, on an<br />
average farm size of 1.3 ha<br />
• Current rice yields are low, creating opportunity for inves<strong>to</strong>rs ready <strong>to</strong> introduce<br />
latest techniques and inputs<br />
• Rice prices in <strong>Tanzania</strong> are consistently higher than the global rice price<br />
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<strong>2013</strong> <strong>Inves<strong>to</strong>rs</strong> <strong>guide</strong> <strong>to</strong> <strong>Tanzania</strong><br />
Low yields create opportunity for modern farms<br />
High local market prices<br />
Market Opportunity:<br />
• <strong>Tanzania</strong> has one of the fastest growing urban populations in East Africa, rising<br />
4.7% per year; the growing middle class prefer rice over other staples: local rice<br />
production cannot keep up with demand, driving imports<br />
• Producers in <strong>Tanzania</strong> also have duty-‐free access <strong>to</strong> the rest of the EAC, SADC and<br />
COMESA, where demand and imports are also rising<br />
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+40% annual growth in rice imports by <strong>Tanzania</strong><br />
+20 annual growth in rice imports by EAC<br />
<strong>Tanzania</strong>’s Competitive Advantage<br />
• <strong>Tanzania</strong> offers ideal conditions for rice cultivation, with tropical temperatures,<br />
rich and fertile soil, plenty of sunshine and rainfall, and a number of large river<br />
systems ideal for irrigated rice projects<br />
• Key fac<strong>to</strong>r costs (labour, land, power) are very competitive – generally lower than<br />
in alternate locations<br />
• Several specific sites for large-scale irrigated rice schemes have already been<br />
earmarked, and the government and donors are ready <strong>to</strong> help fund outgrower<br />
irrigation systems, training and input supplies<br />
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• One major nucleus-outgrower rice venture is already cultivating more than 10,000<br />
hectares, with some outgrowers achieving yields of 8T/ha, proving the success of<br />
the model<br />
5.1.4. Lives<strong>to</strong>ck Sec<strong>to</strong>r<br />
Aim:<br />
To position <strong>Tanzania</strong> such that it can benefit from the exponential growth in demand for<br />
lives<strong>to</strong>ck products across the region.<br />
Current Situation:<br />
• <strong>Tanzania</strong>’s lives<strong>to</strong>ck population has been increasing by 5% per annum; its 21.3<br />
million large cattle population make it the biggest in Southern Africa<br />
• However 97% of all animals are kept by smallholders who are often faced with<br />
poor productivity and yields<br />
Market Opportunity:<br />
• Increased population sizes, urbanization and income levels across Africa are<br />
boosting demand for meat<br />
• Starting from a per capita consumption of 12kg pa, <strong>Tanzania</strong>’s demand for meat is<br />
expected <strong>to</strong> triple by 2030<br />
• Current increases in lives<strong>to</strong>ck supply will not be able <strong>to</strong> meet future demand and<br />
large scale investments are needed <strong>to</strong> provide technical skills and capital <strong>to</strong> run<br />
ranches, feedlots, abat<strong>to</strong>irs, meat processors and tanneries<br />
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200% increase local demand for meat<br />
<strong>Tanzania</strong>’s Competitive Advantage:<br />
• <strong>Tanzania</strong> already exports meat <strong>to</strong> the middle east & neighboring countries, with<br />
significant growth potential<br />
• The National Ranching Company (NARCO) has made 100,000ha of prime ranch<br />
land available for inves<strong>to</strong>rs and supports investments in feedlots, abat<strong>to</strong>irs, meat<br />
processors, rendering plants and tanneries<br />
• The climatic conditions for lives<strong>to</strong>ck operations in <strong>Tanzania</strong> are ideal, with high<br />
rainfalls providing the mostly flat grasslands with the necessary water <strong>to</strong> keep<br />
lives<strong>to</strong>ck at a s<strong>to</strong>cking rate of 1 animal per 3 hectare or better<br />
• <strong>Inves<strong>to</strong>rs</strong> are supported and incentivized though tax holidays, duty free imports of<br />
capital assets, favorable loans from the <strong>Tanzania</strong> <strong>Investment</strong> Bank (TIB) and<br />
administrative support from the <strong>Tanzania</strong>n <strong>Investment</strong> <strong>Centre</strong><br />
5.1.5. Horticulture Sec<strong>to</strong>r<br />
Aim:<br />
To establishing modern vegetables, fruits, flowers, spices and horticultural seed business<br />
operations for domestic, regional and international markets<br />
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Current Situation:<br />
• The horticultural industry in <strong>Tanzania</strong> is the fastest growing industry within the<br />
agricultural sec<strong>to</strong>r recording an annual average growth of 9 - 12 per cent in the<br />
past five years. Contribution of the investments in horticultural businesses <strong>to</strong> <strong>to</strong>tal<br />
agricultural investments has averaged 17 per cent since 2007<br />
• The sub-sec<strong>to</strong>r has been earmarked as one of the potential areas for fast growth in<br />
the <strong>Tanzania</strong> Agriculture and Food Security <strong>Investment</strong> Plan (TAFSIP) and<br />
Southern Agricultural Growth Corridor of <strong>Tanzania</strong> (SAGCOT)<br />
• A number of inves<strong>to</strong>rs are already engaged in the production and marketing of<br />
horticultural crops mainly for export markets. The crops include vegetables (such<br />
as green beans and baby corns), flowers (e.g. roses and cuttings) and fruits (e.g.<br />
avocado, mangoes, pineapples and berries)<br />
Market Opportunity:<br />
• There is huge demand for quality<br />
horticultural products in both local<br />
and export markets. <strong>Tanzania</strong>’s<br />
horticultural exports have<br />
increased significantly.<br />
• Domestically, there is still<br />
inconsistent supply of quality<br />
products making the country<br />
import fruits, vegetables and spices<br />
such as <strong>to</strong>ma<strong>to</strong>es, onions, garlic<br />
and leeks, fresh apples, grapes,<br />
pears and quinces and<br />
strawberries accounts<br />
Banana tree<br />
• There is an increased processing of fruits in<strong>to</strong> juice which has led <strong>to</strong> an increased<br />
demand of the produce in the country. This has contributed <strong>to</strong> the reduction in<br />
supply <strong>to</strong> the market of some fresh fruits such as mangoes making the prices fairly<br />
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• Consistent and attractive.<br />
<strong>Tanzania</strong>’s Competitive Advantage:<br />
• Land availability, wide range of climatic conditions supporting production of a<br />
variety of horticultural crops, access <strong>to</strong> markets through preferential and other<br />
regional/multilateral schemes and peace and stability of the country are among<br />
the fac<strong>to</strong>rs that make <strong>Tanzania</strong> an important investment destination for<br />
horticulture<br />
• Cool climate, altitudes of 800m <strong>to</strong> 200m, low humidity and average rainfall greater<br />
than 700mm make production of crops such as flower, cuttings, vegetable/flower<br />
seeds, avocados, strawberries, raspberries and spices (cardamom) possible in the<br />
SAGCOT area and the northern zone.<br />
• Strategic positioning of the country: Good links <strong>to</strong> ports and airports: DSM and<br />
Tanga ports, Julius Nyerere International Airport in DSM, Songwe International<br />
Airport in Mbeya, KIA and Nairobi provides guarantee for sea freighting and<br />
airlifting of horticultural products destined for international markets.<br />
5.2. NATURAL RESOURCES<br />
In terms of sec<strong>to</strong>r classification, Natural Resources in <strong>Tanzania</strong> refer <strong>to</strong> forestry &<br />
beekeeping, wildlife, and fisheries. The country has vast untapped natural resources that<br />
provide a base for investment in fac<strong>to</strong>ries, industries and training. The terrestrial area is<br />
the grassland savannah rich in wildlife, with equa<strong>to</strong>rial rainforests, miombo woodlands<br />
and plateau with amazing natural scenery and beauty. The area houses archaeological<br />
sites such as the Olduvai Gorge, Kondoa Rock Arts and other his<strong>to</strong>rical sites. The coastal<br />
strip and water support a combination of natural systems including coral reefs, estuarine,<br />
sea grass beds and extensive mangrove stands. Similar <strong>to</strong> other sec<strong>to</strong>rs, private<br />
investments are highly encouraged in the natural resources sec<strong>to</strong>r, of which the<br />
government plays the role as policy maker, promoter and regula<strong>to</strong>r. This sec<strong>to</strong>r presents<br />
enormous investment opportunities, some of which are outlined hereafter.<br />
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<strong>2013</strong> <strong>Inves<strong>to</strong>rs</strong> <strong>guide</strong> <strong>to</strong> <strong>Tanzania</strong><br />
5.2.1. Fisheries<br />
<strong>Tanzania</strong> is one of the largest fishing nations in Africa, according <strong>to</strong> FAO; it is ranked in<br />
the <strong>to</strong>p 10 countries in terms of <strong>to</strong>tal capture fisheries production.<br />
The annual fish production is about 341,065 <strong>to</strong>ns. In addition, the sec<strong>to</strong>r contributed<br />
about 1.4 percent <strong>to</strong> the GDP (National Statistics Bureau; 2010) and 10 percent <strong>to</strong> the<br />
national foreign exchange earnings. The sec<strong>to</strong>r employs more than 177,527 full time<br />
fishermen and about other 4 million people earn their livelihoods from the fisheries<br />
sec<strong>to</strong>r (Fisheries Statistics, 2011). For the years 2005 – 2010, fish and fishery products<br />
exports from <strong>Tanzania</strong> earned the country US$ 195.2 million per annum.<br />
Local fisherman<br />
<strong>Tanzania</strong> has a <strong>to</strong>tal surface area of 945,037 sq. km. The area of freshwater cover is<br />
estimated at 54,337 sq. km., which is about 6.1 percent of the <strong>to</strong>tal country’s surface area.<br />
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The country has a Terri<strong>to</strong>rial Sea of 64,000 sq. km., an Exclusive Economic Zone (EEZ)<br />
covering an area of about 223,000 sq. km. and a stretch of a coastline of about 1,424 km<br />
long all in the Indian Ocean, and other inland water bodies (major and minor lakes, rivers,<br />
dams, ponds and wetlands), covering about 5,000 sq. km.<br />
The country shares three major inland lakes: Lake Vic<strong>to</strong>ria (shared with Kenya and<br />
Uganda), Lake Tanganyika (shared with Burundi, DRC and Zambia) and Lake Nyasa<br />
(shared with Malawi and Mozambique).<br />
<strong>Tanzania</strong>’s Water Bodies Distribution<br />
Water body<br />
Total area (sq. km)<br />
<strong>Tanzania</strong> terri<strong>to</strong>rial<br />
claim (%)<br />
Fishery potential<br />
(<strong>to</strong>ns)<br />
Lake Vic<strong>to</strong>ria 68,000 35,088 (51%) 2,072,360<br />
Lake Tanganyika 32,900 13,489 (41%) 295,000<br />
Lake Nyasa 30,800 5,760 (20%) 168,000<br />
Marine (Terri<strong>to</strong>rial sea) 64,000 64,000 (100%) 100,000<br />
EEZ 223,000 223,000 (100%) N/A<br />
Other (minor water<br />
bodies)<br />
5,000 5,000 (100%) 30,000<br />
Source: Ministry of Lives<strong>to</strong>ck & Fisheries Development (MLFD, 2010)<br />
<strong>Investment</strong> Opportunities:<br />
The main investment opportunities existing in the fisheries industry are in the following<br />
areas: fishing, fish processing, value addition in fish and other fisheries products; cold<br />
chain, boat building, construction of a fish harbour, construction of dry docking facility,<br />
eco<strong>to</strong>urism, manufacturing of fishing gear and accessories. Other areas include;<br />
prawn/shrimp farming, mud-crab farming, pearl culture, finfish culture, seaweed<br />
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farming, hatchery for fingerlings production, fishing and culture of ornamental fish, fish<br />
feeds production and live food production.<br />
Fishing in the Exclusive Economic Zone (EEZ)<br />
Fishing in the EEZ targets mainly tuna and tuna-like species which include; Yellow fin, Big<br />
eye, Albacore and Skip jack. Other species include; Marlin, Sharks and Swordfish.<br />
Although fish potential for this area have not yet been estimated, the existing catch on the<br />
fishery and willingness from long liners and purse seiners buying license from <strong>Tanzania</strong>n<br />
jurisdiction, indicates a potential for investment in this fishery. Fishing in the EEZ is<br />
under the jurisdiction of the Deep Sea Fishing Authority (DSFA). <strong>Tanzania</strong> is within the<br />
western Indian Ocean zone which has high productivity and there is strong seasonal<br />
migration of tuna with peaks between July and November.<br />
Value Addition in Fish and other Fishery Products<br />
As at December 2011 there were 9 fish processing plants operating around Lake Vic<strong>to</strong>ria<br />
on the <strong>Tanzania</strong>n side of the lake. These plants fillet Nile perch mainly for export market.<br />
Through this process, good amount of fish by-products such as fish maws, skins, off cuts,<br />
chips, frames, chests and silage are realized. Most of these byproducts are semi processed<br />
through salting, sun drying and dry smoking. <strong>Investment</strong> opportunity exist in the<br />
purchase of semi processed fish products from fish processing plants and further process<br />
them <strong>to</strong> produce various value added marketable products such as fish meal and cakes<br />
for domestic and export markets.<br />
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List of Fish Processing Establishments in <strong>Tanzania</strong><br />
Plant<br />
Established<br />
Installed capacity Avg. production<br />
(<strong>to</strong>ns/day) (<strong>to</strong>ns/day)<br />
Vicfish Ltd - Mwanza 1992 107 25<br />
Tanperch Ltd - Mwanza 1992 120 20<br />
Mara Fish Packers Ltd 1992 50 -<br />
<strong>Tanzania</strong> Fish Processors Ltd 1993 120 20<br />
Mwanza Fishing Industry 1994 50 25<br />
Omega Fish Ltd – Mwanza 1997 70 25<br />
Nile Perch Fisheries Ltd – Mwanza 1992 90 30<br />
Chain Food International Ltd -<br />
Mwanza<br />
1999 15 -<br />
Prime Catch (Exporter) Ltd – Mara 2000 100 20<br />
Musoma Fish Processors Ltd - Mara 2001 40 20<br />
Kagera Fish Company Ltd 2003 18 -<br />
Vicfish Ltd (BKB) - Kagera 2005 60 18<br />
<strong>Tanzania</strong> Fisheries Development<br />
Company - Mwanza<br />
2008 80 25<br />
Sea Product Ltd - Tanga 1998 50 < 1<br />
Bahari Food Ltd – DSM 2005 10 < 1<br />
Tanpesca Mafia Ltd. 2003 50 2<br />
Royal African Lobster Tropical Ltd -<br />
DSM<br />
2003 52 1<br />
Alphakrust Ltd 2003 10 2<br />
Shamez Enterprises Ltd 1998 3 -<br />
Asmara Trading Company 2000 5 -<br />
Siza Cold S<strong>to</strong>rage 2001 3 -<br />
Fruits De La Mer Ltd 1996 10 -<br />
Source: Ministry of Lives<strong>to</strong>ck & Fisheries Development (MLFD, 2010)<br />
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Most of the fish packaging materials are imported from outside the country as such<br />
investment opportunities exist in manufacturing of fish packaging materials. Other<br />
avenues for investment include marketing and distribution of value added fishery<br />
products, establishment of fish canning facilities and improvement of fish processing<br />
technology.<br />
Construction of Fishing Harbour<br />
Currently, fishing in the EEZ is dominated by foreign fleets (in 2008 35 foreign fleets were<br />
given license) which fish and take the produce without off-loading or undergoing<br />
production and export certification in the country. Construction of a fishing harbour will<br />
therefore, provide for the EEZ fishing vessels <strong>to</strong> anchor onshore which will enable the<br />
government and the would-be inves<strong>to</strong>rs <strong>to</strong> obtain data/information on the catch and<br />
appropriate revenues from the fishing vessels in the EEZ.<br />
Construction of Dry Docking Facility<br />
The dry docking facility will serve the fishing vessels as well as merchant ships. Currently,<br />
there is no such a facility in <strong>Tanzania</strong> and as a result, dry docking for most of the fishing<br />
and merchant ships operating in the <strong>Tanzania</strong>n waters are done in Mombasa, Kenya. The<br />
need for such a facility in the country therefore, offers a great opportunity for investment.<br />
In summary there are ample potential investment and trade opportunities in the fisheries<br />
industry in <strong>Tanzania</strong>. The Government has taken initiatives in facilitating investment<br />
undertakings in various sec<strong>to</strong>rs of the economy. Conducive investment policies and<br />
regula<strong>to</strong>ry frameworks are in place. The investment policy encourages private inves<strong>to</strong>rs<br />
<strong>to</strong> proactively get engaged individually, through joint ventures and through Public-Private<br />
Partnership (PPP).<br />
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5.2.2. Forestry<br />
Forests and woodlands in <strong>Tanzania</strong> are estimated <strong>to</strong> cover about 35.5 million hectares,<br />
and constitute about 38% of the <strong>to</strong>tal area of the country. Of this, 13.5 ha are gazetted as<br />
national forests or local government forests and the remaining 25.5 million ha are on<br />
village or general land. <strong>Tanzania</strong> has 600 government forest reserves, covering about<br />
13% of the <strong>to</strong>tal land area. The reserved area includes 1.6 million ha that are managed as<br />
catchment forests and 80,000 ha of government plantations.<br />
In addition, there are 80,000 ha of private forest plantations. Most of the forest is<br />
savannah and intermediate woodland (dominated by brachy-stegia and isoberlinia<br />
species). The principal species of wood in <strong>Tanzania</strong> are valuable tropical woods, such as<br />
cedar, African rosewood, podocarpus and mahogany. There are also plantation forests<br />
covering an area of 250,000 - 300,000 ha. consisting of Pinus, Cupressus or Eucalyptus<br />
and Wattle. <strong>Investment</strong> opportunities available in forest industry include:<br />
Establishment of plantation forests<br />
The Government is actively promoting private sec<strong>to</strong>r and community involvement in<br />
management of governmental industrial plantation. It is seeking <strong>to</strong> encourage companies<br />
and individuals <strong>to</strong> invest in pulp and saw log growing and processing through mutually<br />
Public Private Partnership (PPP) arrangements.<br />
Currently, there are 16 government-managed plantations in <strong>Tanzania</strong>, classified as forest<br />
reserves under the control of Forestry & Beekeeping Division (FBD) of the Ministry of<br />
Natural Resources and Tourism (MNRT) encompassing a <strong>to</strong>tal of 83,000 ha. Future plans<br />
are for a 50,000 ha. expansion.<br />
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The major private industrial plantations include TANWAT, Green Resources Limited and<br />
Kilombero Valley Teak Company accounting in aggregate for 30,000 ha. there are also<br />
numerous small-scale woodlots and medium-sized plantations owned by small-holders,<br />
communities, districts, tea companies, faith-based organizations, schools etc. This<br />
accounts for between 120,000 – 150,000 ha in aggregate.<br />
Tea plantation<br />
<strong>Investment</strong> Opportunities<br />
There are multiple commercial opportunities in forestry sec<strong>to</strong>r. New large-scale inves<strong>to</strong>rs<br />
such as New Forests Company and Oji Paper have entered the sec<strong>to</strong>r and are at initial<br />
phases of their large planting programs. Both are acquiring large areas of lands, in<br />
magnitude of 30,000 <strong>to</strong> 40,000 ha each <strong>to</strong> combine their own large plantation program<br />
with the adjacent communities in form of outgrower schemes.<br />
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<strong>2013</strong> <strong>Inves<strong>to</strong>rs</strong> <strong>guide</strong> <strong>to</strong> <strong>Tanzania</strong><br />
Industrial establishments are needed <strong>to</strong> utilize forests <strong>to</strong> produce timber, chipboards,<br />
plywood, fiberboard, furniture, poles etc. <strong>Investment</strong> is needed in terms of transportation<br />
network as well as in bringing in new and efficient technology. The state of the privatized<br />
industries is insufficient as they still operate using outdated technology. It is currently<br />
estimated that only 30 - 40% of the raw material contributes <strong>to</strong>wards the final product<br />
and the rest is wasted.<br />
5.2.3. Beekeeping<br />
<strong>Tanzania</strong> has a large potential for the establishment and management of bee reserves.<br />
Beekeeping plays a major role in socio – economic development and environmental<br />
conservation. It is a source of food (honey pollen and brood); raw materials for various<br />
industries, medicine and income for beekeepers. The sec<strong>to</strong>r’s contribution <strong>to</strong> the GDP is<br />
1%. It is a source of employment, provides income <strong>to</strong> the people, a source of recreation,<br />
eco<strong>to</strong>urism and foreign exchange earner. The estimated potential of bee products is about<br />
138,000 <strong>to</strong>ns of honey and 9,200 <strong>to</strong>ns of beeswax per annum from an estimated potential<br />
of 9.2 million honeybee colonies. Reports show that only 4,860 <strong>to</strong>ns of honey and 324<br />
<strong>to</strong>ns beeswax are produced annually, about 3.5 percent of the production potentials of<br />
bee products are tapped.<br />
Traditional beekeepers are the main producers of these products. Other non-wood<br />
products include tanwin, gum Arabic, wattle and medicinal plants. The bee-keeping<br />
segment offers numerous areas of investments, such as:<br />
Establishment of bee apiaries<br />
Honeybees are natural components of the ecosystem; they freely go across in public<br />
(unreserved) lands, forest reserves, game reserves and national parks. Cultivated plants<br />
such as sunflower, legumes, citrus trees, sisal, coffee, bananas, and maize, are also<br />
suitable for beekeeping. Apiaries can therefore, be established across a wide range of<br />
ecosystems.<br />
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Production of beekeeping equipment<br />
Opportunities exist for manufacturing and supply of equipment used in bee-keeping such<br />
as e.g. bee hives, protective gears, honey presses, honey extrac<strong>to</strong>rs etc.<br />
Establishment of Bee products Based Industries<br />
There is potential for investing in industries such as in manufacturing of bees wax<br />
candles, shoe polishes, wood polishes, lubricants and pharmaceutical products. Honey<br />
packing plants and other industries, which use honey <strong>to</strong> make honey beer, wine, and<br />
confectioneries also qualifies for investment.<br />
5.3. TOURISM<br />
<strong>Tanzania</strong> has many <strong>to</strong>urist attractions. More than 44 per cent of the country’s land area is<br />
covered with game reserves and national parks. There are 16 national parks, 29 game<br />
reserves, 40 controlled conservation areas and marine parks. <strong>Tanzania</strong> is also home <strong>to</strong><br />
the famous ‘Roof of Africa’, Mount Kilimanjaro. On 6 January 2012, The New York Times<br />
newspaper awarded <strong>Tanzania</strong> the 7 th position among 45 <strong>to</strong>p destinations <strong>to</strong> visit.<br />
The <strong>to</strong>urist industry currently supports 27,000 jobs and generates 25% of <strong>Tanzania</strong>'s<br />
foreign exchange. <strong>Tanzania</strong> received over 800,000 <strong>to</strong>urists in 2011.<br />
<strong>Tanzania</strong> has six World Heritage Sites. Only three countries in Africa have more: Tunisia<br />
(8) and Algeria and Ethiopia (7) and only Morocco has as many sites as <strong>Tanzania</strong>. The<br />
sites in <strong>Tanzania</strong> comprise two cultural and four natural sites:<br />
1. Ngorongoro Conservation Area<br />
2. Ruins of Kilwa Kisiwani and Ruins of Songo Mnara<br />
3. Serengeti National Park<br />
4. Selous Game Reserve<br />
5. Kilimanjaro National Park<br />
6. S<strong>to</strong>ne Town of Zanzibar.<br />
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<strong>2013</strong> <strong>Inves<strong>to</strong>rs</strong> <strong>guide</strong> <strong>to</strong> <strong>Tanzania</strong><br />
<strong>Tanzania</strong>'s most well-known <strong>to</strong>urist attractions are located in north of the country and<br />
include Mount Kilimanjaro, Africa's highest mountain. Serengeti National Park is world<br />
famous and has spectacular seasonal migrations of animals. The Ngorongoro Reserve is<br />
an extinct volcanic caldera with excellent game viewing from the crater rim. The reserve<br />
has large herds of wildebeest and zebra, and lions and the endangered black rhinoceros.<br />
Tourism is also focused on the coast, especially the islands of Zanzibar, Pemba and Mafia.<br />
Game fishing and diving are the main attractions in these islands. There is also a wide<br />
variety of destinations for cultural <strong>to</strong>urism such as Maasai boma and Bushmen<br />
settlements. All these present high value investment opportunities.<br />
Tourism trends in <strong>Tanzania</strong><br />
2007 2008 2009 2010<br />
Arrivals 719,000 770,000 714,000 782,000<br />
International<br />
<strong>to</strong>urists in<br />
hotels<br />
Earnings in<br />
$ millions<br />
Avg. number of<br />
days stay<br />
Avg.<br />
expenditure per<br />
<strong>to</strong>urist per day<br />
674,000 724,000 665,000 719,000<br />
1, 198 1,315 1,159 1,254<br />
12 12 11 11<br />
217 235 241 282<br />
Source: National Bureau of Statistics<br />
Provision of Accommodation and Tourist Services<br />
The development of <strong>Tanzania</strong> as a multi centre <strong>to</strong>urism destination offers considerable<br />
potential growth prospect and provides ideal opportunities for investment. New<br />
accommodation, entertainment facilities, camping, lodges and guesthouses of<br />
international standards are needed in <strong>Tanzania</strong>. Joint venture opportunities are available<br />
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in Kilwa, Zanzibar, Mafia, Dar es Salaam, Mwanza, Arusha, Iringa, Kilimanjaro, Selous,<br />
Katavi, Saadani, Serengeti, Babati and Bukoba.<br />
Locations ranging from his<strong>to</strong>rical, cultural and archaeological sites <strong>to</strong> unspoiled beaches<br />
offer investment opportunities that cannot be matched anywhere in eastern and central<br />
Africa. His<strong>to</strong>rical buildings that can be leased <strong>to</strong> private opera<strong>to</strong>rs exist in <strong>to</strong>wns such as<br />
Bagamoyo, Pangani, Tabora and Kilwa.<br />
Opportunities for man-made <strong>to</strong>urist attractions like theme parks and gambling resorts<br />
are still untapped. Others include establishing amusement parks, deep-sea fishing and<br />
sea and lake cruising.<br />
Need for more hotel rooms<br />
There are 174 registered and licensed <strong>to</strong>urist class hotels, offering 11,568 rooms in<br />
<strong>Tanzania</strong>. Dar es Salaam leads in accommodation facility investments, the large hotels of<br />
international standards, including Serena Hotel, Southern Sun, Hyatt Kilimanjaro Hotel,<br />
Double Tree Hotel, Sea Cliff Hotel and White Sands Hotel. These have a combined room<br />
capacity of about 1,500.<br />
The Hyatt Regency, a five<br />
star hotel with 180 rooms<br />
and suites, a casino and a<br />
ballroom for up <strong>to</strong> 400<br />
guests.<br />
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The northern <strong>to</strong>urist city of Arusha has been developed with 91 hotel investments,<br />
including the leading Impala Chain, which manages Impala Hotel, Naura Springs, and the<br />
prestigious Ngurdo<strong>to</strong> Mountain Lodge on the middle of Mount Kilimanjaro and Mount<br />
Meru.<br />
The Kilimanjaro region, famous for Mount Kilimanjaro and home of <strong>Tanzania</strong>’s Arabica<br />
coffee, has been developed with 38 high-class <strong>to</strong>urist hotels and lodges, including<br />
Kilemakyaro Mountain Lodge, Mountain Inn (Shah Tours), and Nakara Hotels.<br />
The rest of <strong>Tanzania</strong>, excluding Zanzibar, remains with little or negligible hotel<br />
investments. <strong>Investment</strong> is required for additional hotel capacity in existing <strong>to</strong>urist<br />
locations and new investment in untapped areas.<br />
Tour Opera<strong>to</strong>rs and Agencies<br />
An increasing number of <strong>to</strong>urists also provide excellent opportunities in the <strong>to</strong>ur<br />
opera<strong>to</strong>rs and agencies business as well as investment in manmade <strong>to</strong>urist attractions<br />
like theme parks and gambling resorts. Other areas, which provide excellent investment<br />
opportunities, include beach <strong>to</strong>urism, his<strong>to</strong>rical sites, developing amusement parks,<br />
deep-sea fishing and sea and lake cruising.<br />
5.4. MANUFACTURING<br />
The manufacturing sec<strong>to</strong>r is at its infancy stage with few exploited areas whereby<br />
unprocessed agricultural commodities have dominated major exports.<br />
The manufacturing sec<strong>to</strong>r has shown steady growth over the years, registering 4%<br />
annual growth rate and a small contribution of 8% <strong>to</strong> the GDP. The sec<strong>to</strong>r employs around<br />
140,000 workers mainly in the urban areas, making 48% of monthly paid employees. The<br />
sec<strong>to</strong>r contributes <strong>to</strong> the <strong>Tanzania</strong> economy through revenue collection of import and<br />
export sales, corporate tax, and income tax, contributing about 20% foreign exchange <strong>to</strong><br />
the government, third after agriculture, and <strong>to</strong>urism.<br />
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The activities consist of manufacturing simple consumer goods like food, beverages,<br />
textiles, <strong>to</strong>bacco, wood products, rubber products, iron, steel, and fabricated metal<br />
products. This sec<strong>to</strong>r offers a wide range of opportunities <strong>to</strong> both potential local and<br />
foreign inves<strong>to</strong>rs. Even though the Government puts emphasis on few manufacturing<br />
areas, which are textile, leather, and food processing, there are plenty of manufacturing<br />
area that offer attractive returns on investments.<br />
<strong>Inves<strong>to</strong>rs</strong> are advised <strong>to</strong> acquaint themselves with “ Sustainable Industrial Development<br />
Policy” that envisages industrialization of <strong>Tanzania</strong> during the first quarter of 21st<br />
century <strong>to</strong> become a semi industrialized country <strong>to</strong> the tune of contributing 40% of GDP.<br />
The potential for investment in this sec<strong>to</strong>r is great. Major players of this industry include<br />
Tanga (Holcim), Mbeya (Lafarge), and Portland (Heidelberg) cement companies, <strong>Tanzania</strong><br />
Breweries Ltd (SABMiller), <strong>Tanzania</strong> Cigarette Company (JTI) and Kilombero Sugar<br />
Company (Illovo), etc.<br />
Some areas of investments involve:<br />
• Fruit/Vegetable Processing: <strong>Tanzania</strong> is richly endowed with a large variety of<br />
fruits and vegetables. Less than 10% of fruits and vegetables produced are<br />
processed. There is room for large scale production of a range of tropical as well as<br />
temperate fruits and vegetables. The following are possible areas for investment:<br />
(1) Processing and canning fac<strong>to</strong>ries in regions with high potential for production<br />
of fruits and vegetables (2) Open fruit and vegetables plantations for domestic and<br />
export markets. Potential areas for horticultural crops are Arusha, Kilimanjaro,<br />
Tanga ,Morogoro, Dar es Salaam, Dodoma, Iringa, Mbeya, Mwanza and Kagera.<br />
• Cashew nut processing: <strong>Tanzania</strong> is Africa's largest cashew nut grower after<br />
Nigeria and Ivory Coast, and the world's eighth biggest producer. <strong>Tanzania</strong><br />
exported about 158,000 <strong>to</strong>ns of cashew nuts in the 2011/2012 season. However,<br />
although 90% of the crop was harvested in the country, less than 10% was<br />
processed locally. The country is actively seeking <strong>to</strong> export processed cashew nuts.<br />
The <strong>to</strong>tal installed cashew nut processing capacities for the large firms in <strong>Tanzania</strong><br />
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in 2012 was about 94,000 <strong>to</strong>ns per season. The Cashew nut Board of <strong>Tanzania</strong><br />
(CBT) and the Cashew nut Industry Development Trust Fund (CIDF) has set aside<br />
TZS 10 billion ((US$ 6 million) <strong>to</strong> boost local processing capacity. Opportunities<br />
exist for private inves<strong>to</strong>rs <strong>to</strong> enter partnerships and joint ventures <strong>to</strong> boost local<br />
processing of cashew nut production.<br />
• Textile and apparel: <strong>Tanzania</strong> is Africa’s fourth largest producer of cot<strong>to</strong>n; in<br />
2012 it produced 354,000 <strong>to</strong>ns and had 1.4 million ha. of plantings. The country<br />
ranks behind Mali, Burkina Faso and Egypt as Africa’s largest grower of cot<strong>to</strong>n,<br />
according <strong>to</strong> the Food and Agricultural Organization (FAO). <strong>Tanzania</strong> has more<br />
than 40 ginning companies, including S.M. Holdings Ltd., Alliance Ginneries Ltd.,<br />
Birchand Oil Mill Ltd., Afrisian Ginning Ltd. and Gaki <strong>Investment</strong> Co. <strong>Tanzania</strong>’s<br />
cot<strong>to</strong>n-planting season begins in Oc<strong>to</strong>ber and ends in January, while harvesting<br />
takes place from June <strong>to</strong> December. Opportunities exist in establishing fullintegrated<br />
textile mills as well as plants for cot<strong>to</strong>n ginning, cutting, making, and<br />
trimming.<br />
• Leather: Leather sec<strong>to</strong>r offers huge investment opportunities for manufacturing.<br />
<strong>Tanzania</strong> produces about 2.6 million pieces of raw hids and skins annually,<br />
whereas just 10% are processed locally and a large portion is exported in raw<br />
form. Opportunities in this area include putting up modern tanneries and leather<br />
finishing production units.<br />
5.4.1. Export Processing and Special Economic Zones (EPZ)<br />
EPZ and SEZ provide for a wide range of investment operations within the zones or<br />
within the stand alone industrial park, inves<strong>to</strong>rs in this category are provided with<br />
opera<strong>to</strong>rs’ license and start their business immediately without any need of having<br />
another license. An inves<strong>to</strong>r might choose <strong>to</strong> invest but not limited <strong>to</strong> the following<br />
sec<strong>to</strong>rs:<br />
1. Agriculture and agricultural products.<br />
2. Metal products, machinery and transport equipment.<br />
3. Electronics and electrical appliances.<br />
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4. Chemical, paper and plastics.<br />
5. Light industries.<br />
6. Mining, ceramics and gems<strong>to</strong>nes.<br />
Qualification <strong>to</strong> invest in SEZ:<br />
Any inves<strong>to</strong>r can qualify <strong>to</strong> invest under Special Economic Zone Scheme provided he<br />
fulfills only these simple criteria.<br />
• The investment must be new.<br />
• Annual export turnover should not be less than US$ 5 million for foreign inves<strong>to</strong>rs<br />
and US$ 1 million for local inves<strong>to</strong>rs.<br />
• Adequate environmental protection systems.<br />
• Utilization of modern production process and new machinery.<br />
• <strong>Investment</strong>s must only be located in SEZ industrial parks.<br />
Eligibility criteria for SEZ user licensing:<br />
• New investment<br />
• Minimum capital of US$ 500,000 and US$ 100,000 for foreign and local inves<strong>to</strong>rs<br />
respectively<br />
• The investment must be located in the Special Economic Zone<br />
Eligibility criteria for SEZ Export user licensing:<br />
• New investment<br />
• At least 80% of goods produced/processed should be exported<br />
• Minimum annual export turnover of US$ 500,000 and US$ 100,000 for foreign and<br />
local inves<strong>to</strong>rs respectively<br />
The EPZ policy places emphasis on products that use local materials, such as textiles and<br />
garments, leather goods, agro-processing, and the lapidary industry. The EPZ activities<br />
are regulated by the Export Processing Zones Act no.11 of 2002. The Special Economic<br />
Zones Act 2006 outlines areas, such as industrial parks, export processing zones, free<br />
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trade zones, free ports, <strong>to</strong>urist parks, science and technological parks, etc; as areas that<br />
may be regarded as special economic zones. The special economic zones also invite light<br />
industry in specific regions, such as Dar es Salaam, Tanga, Kigoma, and Mtwara. The<br />
Exemptions under EPZ and SEZ are available under their respective laws.<br />
Multiple incentives for SEZ inves<strong>to</strong>rs:<br />
1. Exemption from payment of taxes and duties for machinery, equipment, heavy<br />
duty vehicles, building and construction materials and any other goods of capital<br />
nature <strong>to</strong> be used for purposes of development of SEZ infrastructure;<br />
2. Exemption from payment of corporate tax for an initial period of ten years and<br />
thereafter a corporate tax shall be charged at the rate specified in the Income Tax<br />
Act;<br />
3. Exemption from payment of withholding tax on rent, dividends and interest for<br />
the first ten years;<br />
4. Exemption from payment of property tax for the first ten years;<br />
5.5. OIL AND GAS EXPLORATION AND PRODUCTION<br />
There have been several gas discoveries on the coastal shore of the Indian Ocean at<br />
Songosongo, Mnazi bay and Mkuranga in Coast Region. These discoveries are catalysts of<br />
natural gas developments in <strong>Tanzania</strong>. Currently there are 22 Oil Companies undertaking<br />
exploration activities for oil and gas in the country. These companies include: BG Group,<br />
Sta<strong>to</strong>il, Petrobas and Ophir Energy. <strong>Tanzania</strong> is becoming a regional hub after flurry of<br />
discoveries, it is said <strong>to</strong> be blessed with over 41.7 trillion cubic feet of gas reserves at the<br />
latest estimates.<br />
There are still numerous deep-sea blocks that are yet <strong>to</strong> be explored. <strong>Tanzania</strong> Petroleum<br />
Development Corporation (TPDC), the National Oil Company is inviting oil and gas<br />
companies and other specialized inves<strong>to</strong>rs <strong>to</strong> participate in the exploration of<br />
hydrocarbons in <strong>Tanzania</strong>. Companies may apply for tendered out blocks for available<br />
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blocks, successful companies will be invited <strong>to</strong> negotiate a Production Sharing Agreement<br />
(PSA).<br />
Currently, an open acreage includes the deep offshore sedimentary basin comprising of 7<br />
blocks, each with average size of 3,000 sq. km, that are located between 2,000 meters <strong>to</strong><br />
3,000 meters of water depths from 20° 30’E <strong>to</strong> 41°40’E and 7°30’ <strong>to</strong> 9°00S and North lake<br />
Tanganyika block located offshore on the western arm of the East African Rift System. The<br />
Deep offshore blocks have a good coverage of modern regional 2D seismic data, which<br />
can be viewed at the ION GX Technology of Hus<strong>to</strong>n, Texas and WesternGeco of UK. Lake<br />
Tanganyika is the world’s longest (650 km) and second-deepest (1,500 meters). It is<br />
covered by sparse 2D seismic data, which were collected in the year 1980s during the<br />
African lakes drilling Project.<br />
For those interested in open acreage onshore or who wish <strong>to</strong> buy deep-sea data, they may<br />
contact:<br />
Permanent Secretary<br />
Ministry of Energy and Minerals<br />
P.O. Box 2000<br />
Tel: +255 22 117 153/9<br />
Fax: +255 22 116 719<br />
E-mail: mem@mem.go.tz<br />
Managing Direc<strong>to</strong>r<br />
<strong>Tanzania</strong> Petroleum Development<br />
Corporation<br />
P.O. Box 2774<br />
Tel: +255 222 200 103/4<br />
Fax: +255 222 200 113<br />
E-mail:tpdcmd@raha.com<br />
5.6. MINING<br />
The <strong>Tanzania</strong> Mining industry is highly important due <strong>to</strong> that it accounts for a significant<br />
share of the country’s export revenues. The Government’s plan is <strong>to</strong> have this sec<strong>to</strong>r<br />
contribute 10% of GDP by 2025. Besides a few major companies, such as African Barick<br />
Gold, AngloGold Ashanti, Williamson Diamonds Limited (WDL), etc., this sec<strong>to</strong>r contains<br />
several medium scale companies and a cluster of small-scale mining companies. Key<br />
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mineral deposits include coal, copper, diamonds, gold, nickel, silver, uranium, and<br />
Tanzanite gems<strong>to</strong>ne, which is found nowhere in the world other than <strong>Tanzania</strong>. Even<br />
though the current discoveries of huge deposits of gas may change the equation, the<br />
Government had a long view that coal should become one of the fastest growing areas in<br />
<strong>Tanzania</strong>, mainly because the country planned <strong>to</strong> deploy coal-fired power <strong>to</strong> offset the<br />
shortage of energy.<br />
Copper mine<br />
Rubies<br />
Coal mine<br />
Nickel mine<br />
This sec<strong>to</strong>r presents plenty of investment opportunities, such as:<br />
• Establishment of gold refinery activities<br />
• Establishment of value added activities:<br />
• Gems<strong>to</strong>ne cutting and polishing (lapidary);<br />
• Rock and mineral carvings;<br />
• Jewelry manufacturing utilizing gold and gems<strong>to</strong>nes;<br />
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• Mineral processing industry – e.g. smelters (amount of Cu –Concentrates)<br />
• New areas in mineral exploration:<br />
• Industrial minerals beneficiation for local consumption & export – e.g. lime<br />
production, soda ash, kaolin, gypsum, coal, iron ore, dimension s<strong>to</strong>nes etc.<br />
• Base metals including platinum group metal (PGMs)<br />
• Service industry:<br />
• Supply equipment & materials e.g. explosives, grinding media, mill liners<br />
etc. under JVs with <strong>Tanzania</strong>n entrepreneurs<br />
• Drilling<br />
5.6.1. Reasons <strong>to</strong> Invest in <strong>Tanzania</strong> Mining Sec<strong>to</strong>r<br />
1. Over 800,000 sq. km of varied geological terrains with potential mineral resources<br />
• Ongoing exploration works, which resulted in discovery of resources in excess of<br />
45 million ounces of gold, 1.5 million <strong>to</strong>ns of nickel and 50 million carats of<br />
Tanzanite<br />
• An Achaean shield environment with a number of classical Canadian-and-<br />
Australian-type greens<strong>to</strong>ne gold lode deposits, many capped by tropically<br />
weathered enrichment zones<br />
• An extensive Proterozoic terrain containing lode and near-surface gold deposit<br />
types, now attracting exploration attention in South America, West Africa and<br />
elsewhere<br />
• Potential for epithermal gold deposits in the faulted younger rocks on the coastal<br />
plain<br />
• A world-class diamondiferous kimberlite at Mwadui and more than 200 other<br />
kimberlites, many of which are yet <strong>to</strong> be thoroughly evaluated<br />
• Scores of occurrences of high-value coloured gems<strong>to</strong>nes, such as emerald, ruby,<br />
tsavorite, sapphire, tanzanite, and alexandrite<br />
• A wealth of other opportunities in minerals, particularly industrial minerals<br />
including coal, iron, tin, graphite, evaporates, kaolin, lime s<strong>to</strong>nes, dimension<br />
s<strong>to</strong>nes, phosphates and gypsum<br />
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• More than a dozen carbonatites, dimension s<strong>to</strong>nes, few of which have been<br />
thoroughly explored<br />
2. Recent his<strong>to</strong>ry of production decisions by well-financed, international companies<br />
3. A his<strong>to</strong>ry of precious and base metals mining, with opportunities for revival in a new<br />
economic era<br />
4. Ample inven<strong>to</strong>ry of unexplored mineral ground<br />
5. A comprehensive, systematically archived database on geoscientific information and<br />
mineral resources<br />
6. Minimal competition at present from large multinational mining companies<br />
7. Technical staff trained in various disciplines associated with mining<br />
8. Well established supporting services <strong>to</strong> the mining sec<strong>to</strong>r<br />
5.6.2. Mineral Endowments<br />
<strong>Tanzania</strong> has over 800,000 sq. km of various geological terrains with potential mineral<br />
resources:<br />
• Gold in Archaean greens<strong>to</strong>ne belts – south and east of Lake Vic<strong>to</strong>ria<br />
• Gold and base metals in Proterozoic rocks in southwestern, southern and eastern<br />
parts of the country<br />
• Kimberlite pipes in central and southern portion of the Archaean cra<strong>to</strong>n and in<br />
proterozoic south and east of the Cra<strong>to</strong>n<br />
• Gems<strong>to</strong>nes such as tanzanite, ruby, sapphire, spinel, <strong>to</strong>urmaline, <strong>to</strong>paz, scapolite,<br />
aquamarine, emeralds, amethyst, garnets (tsavorite, rhodolite, hessonite,<br />
almandine, pyrope, etc.) in Proterozoic rocks east, west and south of the Archaean<br />
Cra<strong>to</strong>n<br />
• Nickel, copper and cobalt associated with ultramafic rocks Western part of the<br />
country<br />
• Tin and tungsten in Proterozoic rocks North western part of the country<br />
• Iron ore in Proterozoic rocks southern part of the country<br />
• Coal in Karoo System southern part of the country<br />
• Evaporates such as gypsum, salts in the rift valley and along the coastal belt<br />
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• Industrial minerals such as limes<strong>to</strong>ne, kaolin, dia<strong>to</strong>mite, phosphates, graphite in<br />
different parts of the country.<br />
Exhibit 1: Mineral Deposits Map<br />
5.6.3. Competitive advantages of the Mining Sec<strong>to</strong>r:<br />
• Considerable unexploited mineral potentials;<br />
• Good investment climate through policy, legal, institutional reform;<br />
• Attractive fiscal package;<br />
• Social and political stability;<br />
• Accessible geological data and information; and<br />
• Transparent process of granting mineral rights<br />
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• For more information regarding this sec<strong>to</strong>r, please refer <strong>to</strong> the publication known<br />
as “opportunities for mineral resource development” prepared by and available at<br />
the Ministry of Energy and Minerals.<br />
5.7. REAL ESTATE<br />
It is projected that half of <strong>Tanzania</strong>’s 45 million population will have moved <strong>to</strong> urban<br />
centres in the next 20 years, more has <strong>to</strong> be done in terms of offering more housing loans<br />
and constructing homes <strong>to</strong> meet the ever-growing housing needs.<br />
Dar es Salaam, <strong>Tanzania</strong><br />
As evidence, the major urban areas,<br />
namely Dar es Salaam, Mwanza,<br />
Tanga, Arusha and Mbeya, continue <strong>to</strong><br />
experience a rapid population<br />
growth, as do dozens of smaller<br />
<strong>to</strong>wns and <strong>to</strong>wnships. For over three<br />
decades, the urban population has<br />
been growing faster than the supply<br />
of descent living homes for the urban<br />
dwellers.<br />
Accommodation in Dar es Salaam and other cosmopolitan areas is in acute shortage due<br />
<strong>to</strong>, among other reasons, the rapid growth of economic projects, which have attracted a<br />
huge population of persons (international and local) with the need of residence. <strong>Inves<strong>to</strong>rs</strong><br />
may form a synergy with National Housing Corporation (NHC) or <strong>Tanzania</strong> Building<br />
Agency (TBA), or other private firms and provide commercial building solutions for<br />
residential and commercial purposes. Some specific opportunities in this sec<strong>to</strong>r include:<br />
• Development and management of housing estates<br />
• Erection and management of residential apartments<br />
• Development and management of office buildings<br />
• Building and management of conference and banquet facilities<br />
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• Creation and management of shopping malls<br />
• Setting up and managing movie theatres and entertainment facilities<br />
• Development and management of hotels<br />
• Establishment and management of mixed use real estate properties<br />
• Provision of home financing, etc.<br />
5.8. TRANSPORTATION<br />
There has been a sustained effort on the part of Government <strong>to</strong> create essential transport<br />
infrastructure and services <strong>to</strong> improve access <strong>to</strong> jobs, education and health facilities and<br />
also <strong>to</strong> facilitate domestic and international trade as well as strengthen regional<br />
integration and attract foreign investment<br />
Transport services grew by 6.0% in 2009 compared <strong>to</strong> 6.9% in 2008, based on latest<br />
figures available. However, the subsec<strong>to</strong>r’s contribution <strong>to</strong> GDP grew from 4.2% in 2008<br />
<strong>to</strong> 5.2% in 2009.<br />
Institutional Sec<strong>to</strong>r Reforms<br />
The Ministry of Infrastructure Development oversees the development of the transport<br />
sec<strong>to</strong>r in the country. It has instituted several reforms aimed at improving transport<br />
infrastructure development and management. Among the reforms is the transforming<br />
in<strong>to</strong> semi-au<strong>to</strong>nomous agencies whose functions are of operational or service delivery<br />
nature. Operational Agencies are <strong>Tanzania</strong> National Roads Agency (TANROADS), <strong>Tanzania</strong><br />
Airports Authority (TAA), <strong>Tanzania</strong> Meteorological Agency (TMA), <strong>Tanzania</strong> Government<br />
Flight Agency (TGFA), and <strong>Tanzania</strong> Electrical, Mechanical and Electronic Services Agency<br />
(TEMESA). Reforms have also resulted in<strong>to</strong> the establishment of transport regula<strong>to</strong>ry<br />
authorities that include Surface and Marine Transport Regula<strong>to</strong>ry Authority (SUMATRA)<br />
and the <strong>Tanzania</strong> Civil Aviation Authority (TCAA).<br />
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The reforms include increasing private sec<strong>to</strong>r participation in the transport sec<strong>to</strong>r<br />
through management contracts and/or outright sale of parastatal.<br />
Government’s 5 Year Development Plan:<br />
The Government has set various specific goals <strong>to</strong>wards achieving the Vision 2025 and the<br />
Five Year Development Plan. Such goals include:<br />
1. Maintaining and upgrading existing railway lines in order <strong>to</strong> increase the current<br />
<strong>to</strong>nnage of cargo that is transported within and through <strong>Tanzania</strong> <strong>to</strong> neighbouring<br />
countries. The specific goal is <strong>to</strong> strive <strong>to</strong> reach the 2.3 million <strong>to</strong>ns by 2018 and<br />
then increasing that <strong>to</strong>nnage <strong>to</strong> 4.0 million per annum by 2023<br />
2. Expanding cargo volume handling capacity at sea ports and lake ports from the<br />
present 10.0 million <strong>to</strong>ns handled annually <strong>to</strong> 20.0 million by 2020<br />
3. Development of effective modal interfaces on the sea and inland water ports, and<br />
inland cargo and passenger terminals <strong>to</strong> promote inter-modal transport thereby<br />
reducing tariff and travel and delivery times for upcountry and transit traffic<br />
4. Expanding <strong>Tanzania</strong>’s air cargo and passenger freight handling capacities and<br />
specifically developing Julius Nyerere International Airport in<strong>to</strong> a hub by 2020<br />
5. Developing and strengthening institutions <strong>to</strong> implement strategic PPPs in<br />
transport infrastructure<br />
5.8.1. <strong>Investment</strong> Opportunities Available in Roads<br />
• Building road related infrastructure through Build Operate and Transfer<br />
• Partnership among private opera<strong>to</strong>rs <strong>to</strong> create medium-size commercial fleet<br />
opera<strong>to</strong>rs<br />
• Establishment of the commuter city bus transportation companies<br />
• Provision of infrastructure facilities in major cities like Dar es Salaam. These<br />
facilities may include Parking, Bus Bays and Shelters<br />
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• In an endeavor <strong>to</strong> promote PPPs in infrastructure investment, <strong>Tanzania</strong> is about <strong>to</strong><br />
enact a legislation which will provide the necessary legislative framework for <strong>to</strong>ll<br />
roads, which covers the following areas:<br />
• Grant of concession <strong>to</strong> the private sec<strong>to</strong>r and the right <strong>to</strong> levy and collect user<br />
charges<br />
• Specification of highway functions that need <strong>to</strong> be exercised by the concessionaire<br />
• Toll setting and revision mechanism<br />
Exhibit 2: <strong>Tanzania</strong> Trunk Road Map<br />
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5.8.2. <strong>Investment</strong> Opportunities Available in Railways<br />
The railways system has a <strong>to</strong>tal track length of 3,676 km, which are operated by two<br />
railway systems: the <strong>Tanzania</strong> Railway Limited (TRL)-2,706km and <strong>Tanzania</strong>-Zambia<br />
Railway Authority (TAZARA)-970 km. The two systems interface at Kidatu and at Dar es<br />
Salaam port. Together, the railways serve 14 of the 21 regions of Mainland <strong>Tanzania</strong>. They<br />
also serve neighbouring countries of Zambia, DRC, Burundi, Rwanda, Uganda and Malawi.<br />
The system is requires investment, particularly the TRL network, <strong>to</strong> upgrade the network<br />
and improve operations in order <strong>to</strong> meet demand and <strong>to</strong> compete against road<br />
transportation. <strong>Tanzania</strong> Railways Limited carried a <strong>to</strong>tal of 237,000 <strong>to</strong>ns of cargo in<br />
2009 and a <strong>to</strong>tal of 285,000 passengers were transported in 2009.<br />
• Develop inland container depots and inter-modal container operations<br />
• Specialized railway maintenance and construction<br />
• Expand railway network through various schemes including Build Operate and<br />
Transfer (BOT), Build Own Operate Transfer (BOOT) etc.<br />
• Possible areas for expansion are Isaka-Kigali, Arusha – Musoma, Uvinza –<br />
Kasulu – Magamo (Burundi), and Mbamba Bay – Mtwara<br />
• Own Locomotives and rolling s<strong>to</strong>ck for on account usage<br />
• Develop Inland Container Depots (ICD) and International Container Operations<br />
(ICO) at Mwanza, Kigoma, Tabora, Morogoro, Arusha, Tanga, Shiyanga, Dodoma<br />
and Mpanda<br />
• The major area for investment includes, the construction of a railway line <strong>to</strong> link<br />
TAZARA railway and the mining sites of Mchuchuma coal and Liganga iron fields<br />
so as <strong>to</strong> export mines via Dar es Salaam port or Mtwara port. This project is under<br />
the Mtwara Development Corridor<br />
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5.8.3. <strong>Investment</strong> Opportunities Available in Maritime Transport<br />
Both sea and inland waterways ports in <strong>Tanzania</strong> are managed and operated by the<br />
<strong>Tanzania</strong> Ports Authority (TPA). The port of Dar es Salaam is one of the key entry points<br />
in<strong>to</strong> the East Africa region with an annual throughput of 7 million <strong>to</strong>ns handling about<br />
93% of <strong>Tanzania</strong>’s port traffic.<br />
It is also an important outlet for<br />
neighboring land-locked countries. In 2009<br />
it had a rated capacity of 4.1 million (dead<br />
weight <strong>to</strong>nnage) dry cargo and 6.0 million<br />
(dead weight <strong>to</strong>nnage) bulk liquid cargo.<br />
Cargo volumes handled at the port have<br />
expanded by 15% per year since 2004.<br />
Maritime transport vessel in Dar es Salaam<br />
• Supplying of provisions <strong>to</strong> ships such as fresh water, brokers and slop chest for<br />
ships<br />
• Providing ships docking facility – Synchno Lift/engraved Dock. Possible areas for<br />
investing are Tanga, Dar es Salaam, Mtwara ports; and Mwanza on Lake Vic<strong>to</strong>ria,<br />
Kigoma and Kasanga ports on Lake Tanganyika and Itungi on Lake Nyasa<br />
• Private opera<strong>to</strong>r's participation in providing marine services over Lake Vic<strong>to</strong>ria,<br />
Tanganyika and Nyasa<br />
• Provide dry docking service <strong>to</strong> ports<br />
• Build a car freight station and freight village which will offer an opportunity for<br />
consolidating cargo handling activities in the port, rail and road in a designated<br />
area<br />
5.8.4. <strong>Investment</strong> Opportunities Available in Air Transport<br />
There are 126 airports in <strong>Tanzania</strong> including airstrips serving domestic and international<br />
traffic. 62 of the airports and airstrips are owned and managed by the government.<br />
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<strong>Tanzania</strong> has 4 international airports located in Dar es Salaam (JNIA), Zanzibar (ZIA),<br />
Kilimanjaro (KIA), and Mwanza (MWZ).<br />
Julius Nyerere International Airport (JNIA)<br />
The government through the <strong>Tanzania</strong><br />
Airports Authority (TAA) and <strong>Tanzania</strong><br />
Civil Aviation Authority (TCAA) has<br />
implemented a number of development<br />
projects which are designed <strong>to</strong> further<br />
modernize the airports, particularly: JNIA,<br />
KIA and ZIA.<br />
In 2009 there were 63 aviation industry providers and about 1 million international<br />
travelers.<br />
• Establish a new airline <strong>to</strong> compete with existing service providers<br />
• Building of hotels at an Airport-Mwalimu Nyerere International Airport, Mwanza<br />
and Arusha;<br />
• Building Warehousing facilities including cold s<strong>to</strong>rages at Mwalimu Nyerere<br />
International Airport, Mwanza and Kigoma<br />
• Building a shopping complex at Mwalimu Nyerere International Airport and<br />
Mwanza Airport<br />
• Building of hanger facilities at Mwalimu Nyerere International Airport, Mwanza<br />
and Arusha Airports<br />
• Extension of Terminal Building at Mwalimu Nyerere International Airport<br />
• Development of EPZ at Mwalimu Nyerere International Airport, KIA, Mtwara,<br />
Kigoma and Mwanza Airports<br />
• Construction of first and business class lounges at Mwalimu Nyerere International<br />
Airport<br />
• Lease of the entire lake Manyara, Shinyanga and Moshi Airports for development<br />
of aviation related activities<br />
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Please refer <strong>to</strong> the next exhibit for more details regarding key airline opera<strong>to</strong>rs and<br />
market share.<br />
Exhibit 3: Airline Opera<strong>to</strong>rs Market Share<br />
20.70%<br />
6.10%<br />
Air <strong>Tanzania</strong><br />
Precision Air<br />
14.30%<br />
Costal Travel<br />
Others<br />
58.90%<br />
5.9. SERVICES<br />
<strong>Tanzania</strong>’s service sec<strong>to</strong>r has increased in the last few years relative <strong>to</strong> other sec<strong>to</strong>rs.<br />
Tourism, real estate and business services helped the broader service sec<strong>to</strong>r grow <strong>to</strong> an<br />
estimated 43.8 percent of <strong>Tanzania</strong>’s GDP in 2007. A worth noting point is how important<br />
the Public Private Partnership concept in terms of bridging the gap between the need and<br />
supply of high quality services that require substantial amount of initial capital<br />
investment. Some of these services include transport and communications, which are<br />
essential public utilities, but which, in a developing economy, are <strong>to</strong>o expensive for the<br />
Government alone or the private sec<strong>to</strong>r <strong>to</strong> execute, but which, due <strong>to</strong> the essential nature<br />
require close coordination between public and private partnership.<br />
Similarly, utilities like electricity and water are essential services which the public needs,<br />
but which also, in developing economies, may be <strong>to</strong>o expensive for either the Government<br />
or the private sec<strong>to</strong>r <strong>to</strong> individually execute. These services therefore require some sort<br />
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of concerted efforts between the government and partners in the form of Public –Private<br />
Partnership (PPP). The Services Sec<strong>to</strong>r is thus one vast area where PPP Partnerships<br />
seem <strong>to</strong> offer appropriate solutions in implementation for the public good, and where<br />
investments can be planned and accomplished in coordination between the Government<br />
and the private sec<strong>to</strong>r.<br />
5.10. INFORMATION & COMMUNICATION TECHNOLOGY<br />
<strong>Tanzania</strong> has made remarkable progress in deploying Information and Communication<br />
Technology ICT. This progress has been well received by the citizens and service<br />
providers who are striving <strong>to</strong> address unmet demand and competition in newly opened<br />
markets. Development of science, technology and innovation capabilities are critical in<br />
bolstering the country’s competitiveness. The goals and targets discussed in Vision 2025<br />
that are especially relevant <strong>to</strong> competitiveness are promotion of science and technology;<br />
education; and promotion of ICTs. The fact unquestionable by many is that productivity<br />
growth is driven by the adoption of technology.<br />
ICT will play a crucial role in the<br />
transformation process from a resourcebased<br />
<strong>to</strong> a skill-based and technologybased<br />
economy in order <strong>to</strong> transform the<br />
country’s production structure. The ICT<br />
sec<strong>to</strong>r in <strong>Tanzania</strong> offers plenty of<br />
investment opportunities. Some of the<br />
Utilizing latest technology in new media<br />
opportunities include:<br />
• E-Business<br />
• Provision of media services<br />
• Supply of digitization equipment<br />
• Software development<br />
• Business process outsourcing<br />
• Rural communication (internet villages)<br />
• Data s<strong>to</strong>rage area networks<br />
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• Hardware assembling<br />
• Call centres<br />
• Integrated solution planning<br />
• Financing of the National ICT Infrastructure Backbone<br />
• Multimedia development<br />
• Establishment of ICT village hubs<br />
• Hardware assembly and repairs, etc.<br />
5.11. FINANCIAL INSTITUTIONS<br />
Testimonial<br />
“Over the last two decades, the financial landscape in Sub Saharan Africa has<br />
changed enormously. Hand in hand with the various reform programs that have<br />
been adopted by many countries in Africa, the banking system across the<br />
continent has grown significantly, keeping pace with the remarkable economic<br />
growth witnessed in many African countries. The banking<br />
The system has not only increased in scale, but now offers a wider range of<br />
services across a much wider geographic coverage than it did a decade ago.”<br />
Prof. Benno Ndulu,<br />
Governor, Bank of <strong>Tanzania</strong> (2012).<br />
The banking system in <strong>Tanzania</strong> (which dominates the financial system) is liquid and<br />
resilient <strong>to</strong> most of the shocks. Despite some indications of progress resulting from the<br />
reforms, the system falls short of what is needed <strong>to</strong> support economic growth. This<br />
results in high interest rates on loans, currently 12% <strong>to</strong> 20%, while the interest rates on<br />
deposits are at 2%.<br />
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The banking sec<strong>to</strong>r in <strong>Tanzania</strong> has been booming, growing in assets and in profits<br />
Because of this, new merchant banks, commercial banks, bureau de change, insurance<br />
companies, a s<strong>to</strong>ck exchange and related financial units, have entered the market. There<br />
are four categories of banks, oriented <strong>to</strong>wards different markets and clientele operating<br />
in <strong>Tanzania</strong>: local private banks, regional banks, international banks and multinational<br />
banks. Overall, the outlook for the banking industry in <strong>Tanzania</strong> is very positive and there<br />
are appealing opportunities for newcomers <strong>to</strong> the sec<strong>to</strong>r.<br />
<strong>Tanzania</strong>’s higher-than-average economic growth rate is fuelling the emergence of an<br />
educated middle class that aspires <strong>to</strong> achieve a more affluent lifestyle in which traditional<br />
deposi<strong>to</strong>ry, credit, insurance, and investment products play an important role. The<br />
expansion of this middle class is expanding national demand for financial services from<br />
established providers and could represent a new opportunity for financial services<br />
companies looking for growth.<br />
Currently, there is a positive trend in lending <strong>to</strong> SMEs that is producing greater<br />
confidence in their growth potential among financial institutions and, more generally, in<br />
the economy as well, which is generating a positive spiral. In addition, the government is<br />
also introducing new laws that are expected <strong>to</strong> enhance lending activities.<br />
5.12. TELECOMMUNICATION<br />
The Communication Act of 1993 paved the way for advancement of the<br />
telecommunication sec<strong>to</strong>r, while the National Telecommunication Policy (NTP) of 1997<br />
provided the framework for further reforms and private-sec<strong>to</strong>r engagement in the sec<strong>to</strong>r.<br />
A miles<strong>to</strong>ne in telecom sec<strong>to</strong>r was achieved by the establishment of the <strong>Tanzania</strong><br />
Communications Regula<strong>to</strong>ry Authority (TCRA) in 2003, as an independent agency for the<br />
regulating and licensing of postal, broadcast, and communication, industries. The TCRA is<br />
mandated <strong>to</strong> promote competition and economic efficiency, protect consumer interests,<br />
grant licenses and enforce license conditions, regulate tariffs, and moni<strong>to</strong>r performance.<br />
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Please refer <strong>to</strong> the next exhibit regarding subscribers of voice telecommunication in<br />
<strong>Tanzania</strong>.<br />
Exhibit 11: Subscribers of Voice Telecommunications in <strong>Tanzania</strong><br />
11%<br />
0%<br />
0% 1%<br />
23%<br />
34%<br />
Sasatel<br />
Benson<br />
TTCL<br />
Vodacom<br />
Airtel<br />
Tigo<br />
Zantel<br />
31%<br />
Source: <strong>Tanzania</strong> Communication Regula<strong>to</strong>ry Authority (TRCA)<br />
Communication activities continue <strong>to</strong> grow at a rate of 20% annually due <strong>to</strong> increase in<br />
mobile phone activities. Major providers of mobile services include Vodacom, Airtel, Tigo,<br />
TTCL, and Zantel. <strong>Tanzania</strong> is now connected <strong>to</strong> the fiber optic cable <strong>to</strong> global networks<br />
through India and Europe. This development has resulted in increased investments by<br />
internet service providers (ISP). As indicated by TCRA, the number of internet users was<br />
4.9 million (2010 estimates), which implied that only 20% percent of people in <strong>Tanzania</strong><br />
had access <strong>to</strong> internet services. During the same year 2010, the tele-density of<br />
telecommunication sec<strong>to</strong>r grew by 50% percent. Please refer <strong>to</strong> figure below for more<br />
information regarding subscribers of fixed networks in <strong>Tanzania</strong>.<br />
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Number of subscribers<br />
<strong>2013</strong> <strong>Inves<strong>to</strong>rs</strong> <strong>guide</strong> <strong>to</strong> <strong>Tanzania</strong><br />
Exhibit 5: Subscribers of Fixed Networks in <strong>Tanzania</strong><br />
160,000<br />
150,000<br />
140,000<br />
120,000<br />
100,000<br />
80,000<br />
60,000<br />
40,000<br />
20,000<br />
-<br />
TTCL<br />
10,000<br />
Zantel<br />
Source: <strong>Tanzania</strong> Communications Regula<strong>to</strong>ry Authority (TCRA)<br />
The TCRA has also approved a Converged Licensing Framework (CLF), which allows<br />
opera<strong>to</strong>rs <strong>to</strong> offer any type of services with the technology of their choice with one single<br />
license. The licenses are technology-neutral and service-neutral. Following such<br />
convergence in licensing, <strong>Tanzania</strong>’s telecommunication sec<strong>to</strong>r has become more<br />
appealing <strong>to</strong> both Foreign Direct <strong>Investment</strong> (FDI) and domestic capital, and is becoming<br />
one of the country’s fastest growing sec<strong>to</strong>rs. Telecommunication market potential<br />
indicated positive signs, such as penetration rate of 61% percent; 24,345,279,292<br />
minutes of national traffic; 201,827,164 minutes of traffic <strong>to</strong> international; and<br />
253,811,569 minutes of traffic from international. This sec<strong>to</strong>r offers numerous<br />
investment opportunities, such as:<br />
• Provision and operation of Private Network Links employing cables, radio<br />
communications, or satellite, within <strong>Tanzania</strong><br />
• Provision and operation of Public Mobile Communications (Cellular Mobile<br />
telephony, Paging, and Trunked Radio)<br />
• Provision and operation of Community Telecommunication (Rural and Urban)<br />
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• Provision and operation of Value Added Network/Data Services (Internet, Voice<br />
Mail, Electronic Mail services)<br />
• Sales and installation of Terminal Equipment<br />
• Repair and maintenance of telecommunications facilities, and<br />
• Cabling (e.g. Telephone-external and internal wiring for residential, office etc.).<br />
5.13. ENERGY<br />
<strong>Tanzania</strong> is endowed with diverse energy sources including biomass, natural gas, hydro,<br />
coal, geothermal, solar and wind power and uranium, much of which is untapped.<br />
Commercial energy sources i.e., petroleum and electricity, account for about 8% and<br />
1.2%, respectively, of the primary energy used. Coal, solar and wind account for less than<br />
1%.<br />
Electricity lines<br />
<strong>Tanzania</strong> has per capita electricity<br />
consumption of 46/KWh per annum, which<br />
is growing at the rate of 11 - 13 per cent.<br />
Hence the government is encouraging<br />
investment <strong>to</strong> expand generating capacity,<br />
distribution system and developing<br />
indigenous sources of energy.<br />
At present, 21% of the population with about 7.4 percent in the rural areas has access <strong>to</strong><br />
electricity. Considerable scope exists for accelerating the production of electricity <strong>to</strong> meet<br />
the growing demand especially in the rural areas through off-grid solutions.<br />
The <strong>Tanzania</strong> power sec<strong>to</strong>r is dominated by a single vertically integrated national utility,<br />
<strong>Tanzania</strong> Electricity Supply Company Ltd (TANESCO). The <strong>to</strong>tal grid installed generation<br />
capacity of both TANESCO’s power plants and private producers is currently at 1,438.24<br />
MW, whereby 561 MW is generated from TANESCO owned hydro power stations and<br />
thermal 658 MW. National electricity connectivity is about 14%. The contribution of non-<br />
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hydro renewable energy for power generation is less than 5%. The following investment<br />
opportunities exist in the energy sec<strong>to</strong>r:<br />
• Generation, transportation and distribution of energy from various sources<br />
• Power infrastructure development, rehabilitation and expansion<br />
• Extraction of biofuels – Ethanol from sugar; Biodiesel from palm oil and jatropha<br />
• Construction of Petroleum pipeline and Petroleum products offloading terminals<br />
development of upcountry s<strong>to</strong>rage and distribution facilities<br />
• Geothermal exploration and development<br />
• Rural Electrification<br />
• Development of new and renewable energy resources, and<br />
• Promotion of energy efficiency and conservation initiatives<br />
<strong>Tanzania</strong> is a participating member <strong>to</strong> Southern African Power Pool and Eastern Africa<br />
Power Pool. <strong>Tanzania</strong> plans <strong>to</strong> join various regional interconnec<strong>to</strong>rs <strong>to</strong> countries like<br />
Zambia, Mozambique, Kenya, Ethiopia, Uganda, and Rwanda. These interconnec<strong>to</strong>rs<br />
provide opportunities for power trading in the region.<br />
Wood-fuel accounts for up <strong>to</strong> 90% of <strong>to</strong>tal national energy consumption, with about 2%<br />
from electricity and 8% from petroleum products. Whereas <strong>Tanzania</strong> has plentiful natural<br />
gas, coal, hydropower, solar and biomass resource potential; it has one of the world’s<br />
lowest levels of electricity consumption per capita. Considerable scope exists for<br />
accelerating electrification <strong>to</strong> meet the growing demand, especially in the rural areas<br />
through off-grid solutions.<br />
5.14. BROADCASTING<br />
Broadcasting sec<strong>to</strong>r constitutes few players who own multiple TV stations and or radio<br />
channels. IPP Media, for instance, owns three TV channels, namely ITV, EATV, and Capital.<br />
Africa Media Group owns four TV channels, known as DTV, Channel 10, CTN and C2C,<br />
whereas <strong>Tanzania</strong> Broadcasting Corporation owns two TV channels, TBC1 and TBC2.<br />
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Most current information available from TCRA indicated that, there are now 29 television<br />
stations and 47 radio stations nationwide. With regards <strong>to</strong> radio broadcasting, FM radio<br />
stations dominate the airwaves, most of them focusing on musical entertainment. As of<br />
December 2012, TCRA managed <strong>to</strong> perform a digital broadcast switch, which entails the<br />
end of analogue broadcast as most broadcasting is now digital, the fact that improved the<br />
signal quality and increased the coverage area.<br />
Given the amount of broadcasting players in addition <strong>to</strong> the nature of products, this<br />
sec<strong>to</strong>r offers an attractive environment for further investments. Some specific areas of<br />
investment are mentioned in the next bullet paragraph. Radio broadcast media also<br />
presents lucrative areas of investing, thanks <strong>to</strong> TCRA’s digital switchover initiative. The<br />
broadcasting sec<strong>to</strong>r [both TV and radio] presents plenty of investment opportunities,<br />
such as:<br />
• Establishment of television production companies<br />
• Creating mainstream television programs for international market<br />
• Provision of local content television channels for local market<br />
• Management of the programs data stream<br />
• Service of program <strong>guide</strong><br />
• Channel capacity and reconfiguration management<br />
• Transmission path redundancy and fail-safe systems<br />
• News systems [for gathering and processing news]<br />
• Digital audio equipment (for production and processing)<br />
• Archiving (for the s<strong>to</strong>rage of audio and text)<br />
• Au<strong>to</strong>mation (for scheduling and control), etc.<br />
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6. Other Areas of <strong>Investment</strong><br />
Education Sec<strong>to</strong>r<br />
Health Sec<strong>to</strong>r<br />
Insurance Services<br />
Security Services<br />
Construction Industry<br />
Water and Sanitation<br />
Integrated Waste Management<br />
6.1. EDUCATION SECTOR<br />
The demand for investment in educational services is also enormous. The government<br />
endures the most of providing education <strong>to</strong> most of schooling population. Lately, the<br />
private sec<strong>to</strong>r has been involved <strong>to</strong> a certain extent, but the fact remains that, the capacity<br />
of educational institutions—from elementary <strong>to</strong> college levels—can hardly accommodate<br />
just a proportion of the huge supply of prospective students. Despite the achievements<br />
made in this sec<strong>to</strong>r, in order <strong>to</strong> meet the demand for skilled labor by 2015/16,<br />
institutions of higher education need at least 80,000 skilled graduates each year, which<br />
implies almost two times of the current enrollment.<br />
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University of Dar es Salaam<br />
University of Dodoma<br />
In addition, Vocational Training schools shall need <strong>to</strong> produce approximately 635,000<br />
compared <strong>to</strong> current 116,000. These educational goals are in line with the Government’s<br />
objective <strong>to</strong> have 26,000 physical scientists; 88,000 architects and engineers; 22,000 life<br />
scientists; 64,000 medical, dental, and veterinary scientists; 30,000 economists; 63,000<br />
accountants; etc. So as <strong>to</strong> cope with globalization and local skill needs in knowledge<br />
based economy, the education sec<strong>to</strong>r plays a huge role hence opportunities <strong>to</strong> establish<br />
“centres of excellence” in the hospitality industry, agriculture, trade, manufacturing,<br />
financial services, engineering and information technology, <strong>to</strong> produce high skilled man<br />
power. In summary, investment opportunities in the education sec<strong>to</strong>r may be explained<br />
by referring <strong>to</strong> the government objectives [as laid down in 2011-16 development plan],<br />
which involves:<br />
• Improve availability of skilled labour<br />
• Train diploma and grade A teachers in Teachers' colleges<br />
• Improve learning and teaching environment for Folk Development<br />
<strong>Centre</strong>s/Colleges<br />
• Provision of scholarships for targeted skills (development of natural gas, uranium,<br />
iron and steel and petroleum)<br />
• Improve and increase the number of training centres and programmes as<br />
suggested in the strategic interventions and/or activities/projects of each of the<br />
core priority sec<strong>to</strong>r<br />
• Improve accessibility and equity at all levels of education<br />
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• Improve quality at all levels of education<br />
• Increase student enrollment in science and engineering, education, agriculture<br />
and health profession.<br />
6.2. HEALTH SECTOR<br />
<strong>Tanzania</strong> Government in association with several stakeholders has continued <strong>to</strong> pursue<br />
improvements on availability along with the standards of health services. Reproductive<br />
and child health services are among key priority areas with an intention <strong>to</strong> reduce<br />
maternal and child mortality rate. As of 2010, there were 6,321 health facilities in the<br />
country with a <strong>to</strong>tal number of 45,241 beds. The health care continues <strong>to</strong> show some<br />
improvements, in particular by looking at health indica<strong>to</strong>rs. The achievements in health<br />
care were mostly due <strong>to</strong> some specific Government interventions.<br />
Besides the achievements made, there are still some areas that need further<br />
improvements, such as the number of health care facilities and skilled health care<br />
workforce. As evidence, only 35% of required skilled health care personnel were active in<br />
rural areas (2009 estimates). For those who wish <strong>to</strong> invest or give a hand in<strong>to</strong> the health<br />
care sec<strong>to</strong>r, there are numerous opportunities, especially as demonstrated in <strong>Tanzania</strong>’s<br />
Five Year Development Plan (2011-2016) with emphasis on improving health services<br />
and strengthen the management of health care system.<br />
By the end of 2016, the government intends <strong>to</strong> reduce the burden of Malaria by 80%,<br />
Increase and strengthen services for the care and treatment of those with HIV/AIDS<br />
down <strong>to</strong> 800,000, reduce prevalence and death rates associated with tuberculosis by<br />
50%, increase the percentage of deliveries attended by skilled health care workers from<br />
46% in 2004 <strong>to</strong> 80%. Obviously, these government objectives infer opportunities in<br />
establishing more private health centres and dispensaries, additional medical training<br />
facilities, modern diagnosis and health service equipment, extra ambulances and other<br />
life-saving items, plus other amenities that will enhance government capacity in its<br />
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objective <strong>to</strong> improve the accessibility and quality of health services. Some specific<br />
investment areas involve:<br />
• Creating mechanisms and methods for care and rehabilitative treatment services<br />
at all levels<br />
• Providing resources <strong>to</strong> facilitate the construction and rehabilitation of health<br />
facilities at all levels<br />
• Offering housing and other incentives for public health workers<br />
• Providing training for health personnel (medical doc<strong>to</strong>rs, nurses and paramedical<br />
graduates, labora<strong>to</strong>ry technicians)<br />
• Offering health <strong>to</strong>ols and equipment at all levels<br />
• Establishing pharmaceuticals and offering drugs for curative and preventive<br />
measures<br />
• Providing health information systems <strong>to</strong> facilitate efficient health planning and<br />
programs<br />
6.3. INSURANCE SERVICES<br />
Both present and future market environment offers enormous opportunities for growth<br />
of the insurance industry. Data obtained from the Insurance Supervisory Department<br />
(ISD) indicated that, insurance market size (with respect <strong>to</strong> premiums) increased by<br />
33.6% <strong>to</strong> TZS 154 billion in 2007. The projected average annual growth rate was 15% for<br />
subsequent five years. According <strong>to</strong> the ISD, there was a growing demand for insurance.<br />
The growing demand was due <strong>to</strong> several fac<strong>to</strong>rs, such as regained public confidence in<br />
insurance services and government’s efforts <strong>to</strong> create wealth.<br />
Regula<strong>to</strong>ry environment creates great opportunity for success <strong>to</strong> industry, for example,<br />
section 111 of insurance act of 1996 and insurance regulation 33 that requires all<br />
insurances for locally based risks must be placed within <strong>Tanzania</strong>n insurers in order <strong>to</strong><br />
boost the market. An increasing number of individuals and institutions who need<br />
insurance services is a clear indica<strong>to</strong>r of the potential insurance market. Currently, there<br />
is a huge population of individuals, groups, and institutions, which is not covered by any<br />
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insurance plan. This untapped segment may offer a significant potential market if<br />
appropriate strategies are carried out <strong>to</strong> reach them. Insurance sec<strong>to</strong>r in <strong>Tanzania</strong> offers<br />
plenty of assurance, reinsurance, and reassurance, business opportunities. To be specific,<br />
some areas of investment available in the business of providing insurance services<br />
include:<br />
• Accident<br />
• Aircraft liability<br />
• Sickness<br />
• Liability for ships<br />
• Land vehicles<br />
• General liability<br />
• Railway rolling<br />
• Credit<br />
• Aircraft<br />
• Suretyship<br />
• Ships<br />
• Miscellaneous<br />
• Goods in transit<br />
• Legal expenses<br />
• Fire and natural forces<br />
• Assistance<br />
• Damage of property<br />
• Life insurance<br />
• Mo<strong>to</strong>r vehicle liability<br />
• Pension<br />
• Permanent health<br />
6.4. SECURITY SERVICES<br />
There are few security firms operating in <strong>Tanzania</strong> relative <strong>to</strong> the market potential.<br />
Fac<strong>to</strong>rs such as rapid gains in economic activity, rising personal incomes, foreign direct<br />
investment activities, and the increasing belief that public safety forces are overburdened<br />
or unable <strong>to</strong> provide sufficient protection, are positive signs in this sec<strong>to</strong>r. High increase<br />
of banks imply more opportunity <strong>to</strong> provide cash-in-transit security, high speed<br />
construction of office facilities indicates more room for security providers, and the influx<br />
of more firms engaged in exploration and extraction of gas, oil, and other minerals, is a<br />
clear indica<strong>to</strong>r of promising security services market.<br />
The demand for security services in <strong>Tanzania</strong> is increasing due <strong>to</strong> the drivers of demand<br />
for security services, such as urbanization, real and perceived risks of crime and<br />
terrorism, belief that public safety measures are not efficient, and most importantly, the<br />
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growth of the middle class, with assets <strong>to</strong> protect and the means <strong>to</strong> pay for<br />
supplementary services. The intensity of security service use (measured against<br />
indica<strong>to</strong>rs such as GDP and urban population) in <strong>Tanzania</strong> is relatively low, indicating<br />
significant growth potential now and <strong>to</strong>wards the unforeseen future. Furthermore,<br />
increasing regulation and a trend <strong>to</strong>ward greater professionalism improves public trust in<br />
security service businesses, thereby driving the market size.<br />
6.5. CONSTRUCTION INDUSTRY<br />
With <strong>Tanzania</strong>ns’ intent <strong>to</strong> improve roads, the demand for constructing roads is very high.<br />
Good trunk roads are needed not only <strong>to</strong> connect regions but also the demand is<br />
increasing in also connecting district headquarters.<br />
The demand therefore is huge in<br />
investment in road construction even if <strong>to</strong><br />
facilitate transport of produce from rural <strong>to</strong><br />
district markets, and <strong>to</strong> facilitate economic<br />
activities. While the Government reserves a<br />
substantial amount of its budget for road<br />
construction each year, there is also a room<br />
for those construction companies that<br />
source funds in special arrangements from<br />
their native countries. Civil construction is<br />
also booming for both commercial and<br />
residential buildings <strong>to</strong> accommodate for<br />
the high demand of office premises as well<br />
as residential houses. Some specific<br />
investment areas in the construction sec<strong>to</strong>r<br />
involve <strong>to</strong>:<br />
New skyscraper construction in Dar es Salaam<br />
• Construct tarmac and non-tarmac roads <strong>to</strong> connect districts, regions, and other<br />
nations<br />
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• Build housing estates<br />
• Construct residential apartments<br />
• Build office buildings<br />
• Construct conference and banquet facilities<br />
• Build shopping malls<br />
• Construct movie theatres and entertainment facilities<br />
• Build hotels<br />
• Construct mixed use real estate properties<br />
• Offer construction support services, such as financing and provision of<br />
construction materials.<br />
6.6. WATER AND SANITATION<br />
Water is one of the country’s most important natural resources. <strong>Tanzania</strong> is not only<br />
endowed with some of the world’s largest lakes, it is also covered with a myriad of rivers<br />
and basins. Many of the country’s sec<strong>to</strong>rs rely on water as a major input of production,<br />
but two sec<strong>to</strong>rs stand out as being particularly reliant on water: the agriculture and the<br />
energy sec<strong>to</strong>rs. As revealed by the government budget speech, just about 1 percent of the<br />
29 million hectares available for cultivation in the country are irrigated. Increasing the<br />
water supply <strong>to</strong> those fields through irrigation would positively affect the growth rate of<br />
the sec<strong>to</strong>r and the productivity in crop production as a whole. In addition, around 59<br />
percent of the country’s electricity is produced by hydro-energy, making it by far the first<br />
source of energy production. A close moni<strong>to</strong>ring of the dams and plants and the water<br />
flow reaching those facilities will be crucial in order <strong>to</strong> stabilize the electricity supply in<br />
the coming years.<br />
Provision of safe water and good quality sanitation facilities is of primary importance <strong>to</strong><br />
ensure the well-being of the people. At present, the share of population with access <strong>to</strong><br />
safe drinking water stands at 57.8 % in rural areas and 86 % in urban areas. Based on the<br />
World Bank WDI data, <strong>Tanzania</strong> has a long way <strong>to</strong> go with regard <strong>to</strong> its performance in<br />
the provision of safe water services. Particularly, in parts of the Central Region, women<br />
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and children still commute long distances every day <strong>to</strong> fetch water. Around 11 percent of<br />
the rural population has no access <strong>to</strong> sanitation facilities, compared <strong>to</strong> 1.5 percent in the<br />
urban areas.<br />
Knowing the need <strong>to</strong> significantly increase investments in water supply and resources<br />
infrastructure in the nation, the Government set numerous operational objectives<br />
designed <strong>to</strong> improve water and sanitation sec<strong>to</strong>r, such as expansion of irrigation land,<br />
ensure reliable water supply <strong>to</strong> key production sec<strong>to</strong>rs and services (agriculture and<br />
industry), stabilization of hydro power generation, ensure reliable water sources for<br />
domestic use as one of the indirect production fac<strong>to</strong>rs <strong>to</strong>wards economic development.<br />
Specific opportunities in this sec<strong>to</strong>r, based on Government intervention initiatives, are<br />
prevalent in terms of:<br />
• Strengthen water resources management <strong>to</strong> cater for social-economic activities<br />
(irrigation, hydropower generation, industrial, domestic use and for ecosystem)<br />
• Scale-up rural water supply services<br />
• Improve water supply services in Dar es Salaam<br />
• Enhance water supply services in district and small <strong>to</strong>wns<br />
• Increase water supply services in regional centres<br />
• Improve sanitation facilities in urban and rural areas<br />
• Advance water pollution control and moni<strong>to</strong>ring<br />
6.7. INTEGRATED WASTE MANAGEMENT<br />
The avenue of providing solutions for solid waste management in the country presents<br />
enormous opportunities, especially in Dar es Salaam and other major cities like Mwanza<br />
and Arusha. Dar es Salaam city produces a substantial amount of metric <strong>to</strong>nnes of solid<br />
waste per day. Management of this waste through recycling will reduce environmental<br />
pollution and offer employment opportunities through commercial ventures. <strong>Inves<strong>to</strong>rs</strong><br />
are highly welcome <strong>to</strong> invest in solid waste management. Recycling of waste can be<br />
undertaken through various forms, such as Public Private Partnerships (PPPs) or a<br />
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private sec<strong>to</strong>r initiative, and may be extended <strong>to</strong> other cities and <strong>to</strong>wns in the country.<br />
Specific areas of investment interests include:<br />
• Waste disaggregation<br />
• Sanitary landfills<br />
• Recycling<br />
• Sewerage systems maintenance<br />
• Cleaning of the polluted rivers and other areas<br />
• Modern waste management equipment, such as self-loading trucks, mixers,<br />
sorters etc.<br />
• Establishment and maintenance of public parks along the selected river banks<br />
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7. <strong>Investment</strong> Incentives<br />
With an investment climate supported by a sound regula<strong>to</strong>ry framework, improved<br />
infrastructure, high quality telecommunications, and a reasonably professional<br />
workforce, the <strong>Tanzania</strong>’s economy is dynamic and offers substantial tax and other<br />
incentives that are designed <strong>to</strong> encourage investment projects.<br />
7.1. INVESTMENT TAX INCENTIVES<br />
<strong>Tanzania</strong> recognizes the importance of investment in stimulating economic growth and<br />
development in the country and creating a potential for sustainable future revenue<br />
generations. A number of tax incentives are granted <strong>to</strong> both local and foreign inves<strong>to</strong>rs in<br />
a variety of sec<strong>to</strong>rs in order <strong>to</strong> encourage investment.<br />
An <strong>Investment</strong> policy was put in place in 1990 when the Government enacted the<br />
National <strong>Investment</strong> Promotion and Protection Act (NIPPA) 1990, which granted tax<br />
incentives <strong>to</strong> inves<strong>to</strong>rs in the form of tax holidays for a specific period of time. The NIPPA<br />
1990 was repealed and replaced by the <strong>Tanzania</strong> <strong>Investment</strong> Act, 1997 that is now<br />
operational.<br />
The <strong>Tanzania</strong> <strong>Investment</strong> Act (TIA) 1997 transferred all the tax incentives <strong>to</strong> Income Tax,<br />
2004, East African Community Cus<strong>to</strong>ms Management Act, 2004, Value Added Tax Act.<br />
1997 as revised in 2006. The main objective of this incentive was <strong>to</strong> make the tax<br />
structure more transparent and less complicated <strong>to</strong> taxpayers. Since then income tax<br />
holidays were abolished and tax incentives are now granted <strong>to</strong> inves<strong>to</strong>rs in the form of<br />
enhanced capital deductions and allowances.<br />
<strong>Investment</strong> Laws abolished Income Tax holidays and tax incentives are now granted in<br />
the form of enhanced capital deductions and allowances. 100% capital expenditure <strong>to</strong><br />
mining and agricultural sec<strong>to</strong>rs. The Income Tax Laws allow 50% capital allowances in<br />
the first year of use for plant and machinery used in manufacturing processes and fixed in<br />
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a fac<strong>to</strong>ry, fish farming; or providing services <strong>to</strong> <strong>to</strong>urists and in a hotel. Indefinitely carry<br />
forward of losses against future profits. However companies with perpetual tax loss for 3<br />
consecutive years as a result of tax incentives on investments are charged 0.3% of annual<br />
turnover.<br />
Corporate Tax - 30% and newly listed company <strong>to</strong> DSE with at least 30% of its shares<br />
issued <strong>to</strong> the public for three consecutive years from the date of listing – 25%<br />
Withholding Tax on: dividends (10%) and (10%) on loan interest, on Rental Income<br />
(10%).<br />
The inves<strong>to</strong>rs who are in lead and priority sec<strong>to</strong>rs, they are allowed Import Duty and VAT<br />
exemptions on their Capital/ Deemed Capital Goods; these sec<strong>to</strong>rs are; agriculture<br />
including lives<strong>to</strong>ck, Air Aviation, Commercial buildings, Commercial, development and<br />
microfinance Banks, export oriented projects, Geographical Special development areas,<br />
Human resources development, manufacturing, Natural Resources including fisheries,<br />
timber and beekeeping, rehabilitation and expansion, <strong>to</strong>urism and <strong>to</strong>ur operations, Radio<br />
and television broadcasting, Transportation (Cargo and marine) and Economic<br />
Infrastructure.<br />
Import duty and VAT exemption on Deemed Capital Goods. These include: building<br />
materials, utility vehicles, equipment etc.<br />
According <strong>to</strong> the <strong>2013</strong>/14 budgetary changes the import duty exemption granted <strong>to</strong><br />
Deemed Capital Goods is now 75% whereby the inves<strong>to</strong>r shall pay 10% of import duty<br />
due.<br />
Import duty (0%) on imported 4WD vehicles designed and built for <strong>to</strong>urist purposes,<br />
subject <strong>to</strong> satisfying criteria set by East African Community Secretariat.<br />
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Import duty (0%) on hotel equipment, which where engraved, printed, or marked with<br />
hotel logo imported by licensed hotel for its use.<br />
VAT Special Relief on Project Capital Goods (i.e. Capital Goods by Generic Description).<br />
These include: plant, machinery, forklifts, crane, boilers, furnace, crushers, graders,<br />
caterpillars, excava<strong>to</strong>rs, bulldozers, angle dozers, lifts, escala<strong>to</strong>rs etc.<br />
VAT Exemption on pesticides, fertilizers, health supplies, lives<strong>to</strong>ck, unprocessed<br />
agricultural products, agricultural implements, books and newspapers, educational<br />
services, financial services, petroleum products, aircraft, aircrafts engines, aircrafts parts,<br />
computers, wind genera<strong>to</strong>rs and liquid eleva<strong>to</strong>rs, pho<strong>to</strong>voltaic and solar thermal. Heat<br />
insulated milk cooling tanks and aluminum jerry cans used for s<strong>to</strong>rage and collection of<br />
milk in diary industry. Farm services of land preparation, cultivation, planting and<br />
harvesting.<br />
7.2. ZERO RATED VAT ON EXPORTS<br />
7.2.1. Import Duty Drawback<br />
Import duty charged on imported inputs used for producing goods for export and goods<br />
sold <strong>to</strong> foreign institutions like the United Nations in <strong>Tanzania</strong>, is refundable.<br />
7.2.2. Manufacturing Under bond<br />
All fac<strong>to</strong>ries registered <strong>to</strong> manufacture goods under bond for export purpose are<br />
exempted from import duty and other taxes on inputs used <strong>to</strong> manufacture such goods.<br />
7.2.3. Economic infrastructure<br />
Road, railways, air and sea transport, port facilities, telecommunication, banking &<br />
insurance.<br />
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Item Duty VAT<br />
All capital goods 0% Relieved<br />
Corporate tax 30%<br />
Listed Company <strong>to</strong> DSE 25%<br />
Withholding tax on dividends 10%<br />
Withholding tax on interest 10%<br />
Losses carried forward. Companies with perpetual unrelieved losses for 3 consecutive<br />
years are charged 0.3% of annual turnover.<br />
7.2.4. Mineral sec<strong>to</strong>r<br />
Item Duty VAT<br />
All capital goods 0% Relieved<br />
Fuel 0% Relieved<br />
Corporate tax 30%<br />
Capital allowance 100%<br />
• Royalty of 4% is charged on gold and other metallic minerals<br />
• Royalty of 5% on diamond, uranium and gems<strong>to</strong>ne<br />
• Royalty of 1% on gem (cut and polished)<br />
• Royalty of 3% for other minerals (e.g. coal, industrial minerals and building<br />
minerals)<br />
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7.2.5. Holders of Certificate of Incentives<br />
Item Duty VAT<br />
All capital goods 0% Relieved<br />
Corporate tax 30%<br />
Listed Company <strong>to</strong> DSE 25%<br />
Withholding tax on dividends 10%<br />
Withholding tax on interest 10%<br />
Losses carried forward. Companies with perpetual unrelieved losses for 3 consecutive<br />
years are charged 0.3% of annual turnover.<br />
7.2.6. Agriculture<br />
Item Duty VAT<br />
All capital goods 0% Relieved<br />
Agricultural machinery/ equipment 0% Exempt<br />
Fertilizers & pesticides 0% Exempt<br />
Farm implements & inputs 0% Exempt<br />
Corporate tax 30%<br />
Capital allowance 100%<br />
Withholding tax on interest 10%<br />
Withholding tax on dividends 10%<br />
Losses carried forward. Companies with perpetual unrelieved losses for 3 consecutive<br />
years are charged 0.3% of annual turnover.<br />
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7.2.7. Tourism<br />
Item Duty VAT<br />
All capital goods 0% Relieved<br />
Corporate tax 30%<br />
Capital allowance 50%<br />
Withholding tax on interest 10%<br />
Withholding tax on dividends 10%<br />
Losses carried forward indefinitely<br />
• Exempt import duty on imported 4WD vehicles designed and built for <strong>to</strong>urist<br />
purposes, subject <strong>to</strong> satisfying criteria set by East African Community Secretariat<br />
• Exempt import duty on hotel equipment, which where engraved or printed or<br />
marked with hotel logo imported by licensed hotel for its use<br />
7.2.8. Petroleum and Gas<br />
• Tax exemption on equipment & material used for exploration<br />
• Negotiated levels of cost oil or gas split after the discovery of oil or gas for the<br />
purposes of recovering costs for exploration, development, and production<br />
• Negotiated levels of profit oil or profit gas split<br />
• Importation by or supply <strong>to</strong> a registered licensed exploration, prospecting, mineral<br />
assaying, drilling or mining company, of goods which if imported will be eligible<br />
for duty under cus<strong>to</strong>ms law, and service for exclusive use in exploration,<br />
prospecting, drilling or mining activities.<br />
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8. Know Before You Go!<br />
TIC provides assistance with immigration matters <strong>to</strong> prospective inves<strong>to</strong>rs.<br />
8.1. COST AND TYPES OF VISA:<br />
8.1.1. Categories of Visa:<br />
There are 5 categories of visas which may be granted <strong>to</strong> foreigners, other than prohibited<br />
immigrants, who seek <strong>to</strong> enter the United Republic of <strong>Tanzania</strong>:<br />
Category<br />
Ordinary<br />
Description<br />
This is a visa granted <strong>to</strong> foreigners, other than prohibited immigrants, seeking <strong>to</strong> enter<br />
the United Republic of <strong>Tanzania</strong> upon application for the purpose of visit, leisure,<br />
holiday, business, health treatment, studies, or any other activity legally recognized by<br />
the Laws of the United Republic for validity not exceeding three months for a single<br />
entry only.<br />
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Transit<br />
Multiple Entry<br />
Gratis<br />
Referral<br />
This is a visa granted <strong>to</strong> foreigners, other than prohibited immigrants, intending <strong>to</strong><br />
pass through the United Republic of <strong>Tanzania</strong> <strong>to</strong> other destinations for a period not<br />
exceeding fourteen days, provided that such persons should have onward tickets,<br />
sufficient fund for subsistence, while in the United Republic of <strong>Tanzania</strong>, and an entry<br />
Visa <strong>to</strong> the country of destination (where applicable), or any other proof <strong>to</strong> satisfy that<br />
such a person will be allowed entry <strong>to</strong> that other country.<br />
This is a visa granted <strong>to</strong> persons who are nationals of countries that require a visa <strong>to</strong><br />
enter the United Republic of <strong>Tanzania</strong> and who, by nature of their businesses, or<br />
circumstances require making frequent visits <strong>to</strong> the United Republic of <strong>Tanzania</strong>.<br />
Multiple visas may be issued for a period of three, six or twelve months, <strong>to</strong> permit the<br />
holder <strong>to</strong> enter and re-enter, subject <strong>to</strong> the validity of the visa, provided that a single<br />
stay of the holder should not exceed three months.<br />
This is a visa granted <strong>to</strong> holders of Diplomatic or Official/Service Passports when<br />
travelling on official missions <strong>to</strong> the United Republic of <strong>Tanzania</strong>, and it is granted free<br />
of charge. In some cases, Gratis visa may be granted <strong>to</strong> holders of Ordinary Passports<br />
where an exemption has been given by the Issuing Authority.<br />
Note: Holders of Diplomatic and Service/Official passports when travelling on private<br />
visits in<strong>to</strong> the United Republic of <strong>Tanzania</strong> are required <strong>to</strong> apply for a visa like holders<br />
of ordinary passport.<br />
This is a visa granted <strong>to</strong> nationals of countries that require a special clearance and<br />
approval from the Principal Commissioner of Immigration Services, or the<br />
Commissioner of Immigration Services (Zanzibar), prior <strong>to</strong> the issuance of visa. These<br />
are 27 countries including: Afghanistan, Bangladesh, Chad, Djibouti, Mali, Lebanon,<br />
Somalia, Morocco, Sri Lanka, Sierra Leone, Turkmenistan, refugees and individuals<br />
who are deemed stateless<br />
8.1.2. General requirements for a Visa:<br />
An application of visa for United Republic of <strong>Tanzania</strong> should be accompanied with:<br />
• Application form duly filled in<br />
• Security Bond duly filled in (for multiple visa)<br />
• Five passport size pho<strong>to</strong>graphs (if required)<br />
• Copy of the Applicant’s valid passport<br />
• Copy of the valid Passport or any other identity of the person <strong>to</strong> be visited<br />
(applicant’s host if required)<br />
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• Documents of the Company or Business <strong>to</strong> be visited; (for multiple visa)<br />
• Any other evidence <strong>to</strong> prove that the applicant is bound <strong>to</strong> travel frequently in<strong>to</strong><br />
the United Republic of <strong>Tanzania</strong> (for multiple visas).<br />
8.1.3. Visa Issuing Centers<br />
A visa may be obtained at any United Republic of <strong>Tanzania</strong> Mission abroad or Consulate,<br />
and also on arrival at all designated Entry Points. In case of Referral and Multiple entry<br />
visas, applicants are required <strong>to</strong> submit their applications <strong>to</strong> the office of the Principal<br />
Commissioner of Immigration Services, Dar Es Salaam, or at the office of the<br />
Commissioner of Immigration Services Zanzibar. To avoid unnecessary delays, foreigners<br />
are encouraged <strong>to</strong> apply for a visa through <strong>Tanzania</strong>n embassies and consulates in their<br />
nearest location.<br />
8.1.4. Visa Fees<br />
The standard fee rate for<br />
• Ordinary visa is US$ 50<br />
• Multiple entry visa is US$ 100<br />
• Transit visa is US$ 30<br />
Note that these rates can change at any time without prior notice. Visa fees are payable at<br />
Issuing Centers and an Exchequer Receipt should be provided for the payment made.<br />
Additional and up <strong>to</strong> date information can be found on the website of the Immigration<br />
Services Department at the Ministry of Home Affairs (www.immigration.go.tz)<br />
8.2. RESIDENCE PERMIT APPLICATION PROCESS<br />
Any foreigner intending <strong>to</strong> reside in the United Republic of <strong>Tanzania</strong> for investment,<br />
business, employment or any other legal activity may be issued with a Residence Permit.<br />
The issuance of Residence Permit is governed by the Immigration Act. No.7 of 1995 and<br />
its Regulations of 1997.<br />
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8.2.1. Types of Residence Permits:<br />
TIC offers two types of Residence Permits, which are:<br />
1. Residence Permit Class A<br />
2. Residence Permit Class B<br />
3. Residence Permit Class C<br />
Note that applications for Residence Permit Class B and C should be submitted while<br />
applicants are outside the country. Holders of Residence Permits Class A, B and C are<br />
required <strong>to</strong> obtain the Re-entry passes after their applications have been approved.<br />
Residence Permit Class A<br />
Residence Permit Class A may be granted <strong>to</strong> a person other than a prohibited immigrant,<br />
who intends <strong>to</strong> enter or remain in <strong>Tanzania</strong> and engage in trade, business, profession,<br />
agriculture, animal husbandry, prospecting of minerals, or manufacturing.<br />
Application for Residence Permit Class A may be lodged at Immigration Department's<br />
Headquarters or the <strong>Tanzania</strong> <strong>Investment</strong> <strong>Centre</strong> (TIC) or Zanzibar <strong>Investment</strong><br />
Promotion Authority (ZIPA) for Zanzibar (depending on whether the business or project<br />
has been registered with either TIC or ZIPA).<br />
Exhibit 1: Fees for Residence Permits Class A<br />
Category Sec<strong>to</strong>r Eligibility Reason Fees in US$<br />
1 Prospecting and<br />
Mining<br />
Persons intending <strong>to</strong> engage<br />
in prospecting for minerals or<br />
mining.<br />
First issued renewal<br />
and Re-entry<br />
3,050+10%<br />
2 Large Scale trade<br />
and business<br />
3 Prescribed<br />
profession and<br />
consultancy<br />
services<br />
Persons intending <strong>to</strong> engage<br />
in a specific trade<br />
Members of prescribed<br />
profession in possession of<br />
prescribed qualifications<br />
intending <strong>to</strong> practice such<br />
First issue and<br />
renewal<br />
First issue, renewal<br />
and Re-entry<br />
3,050+10%<br />
2,550+10%<br />
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4 Large Scale<br />
Manufacturing and<br />
processing<br />
5 Large scale<br />
agriculture and<br />
animal husbandry<br />
profession and consultancy<br />
services.<br />
Persons intending <strong>to</strong> engage<br />
in<strong>to</strong> large scale<br />
manufacturing and<br />
processing.<br />
Persons intending <strong>to</strong> engage<br />
in agriculture or animal<br />
husbandry<br />
6 Artisans Persons intending <strong>to</strong> engage<br />
in activities like tailoring,<br />
goldsmiths<br />
First issue, renewal<br />
and Re-entry.<br />
First issue, renewal<br />
and Re-entry<br />
First issue, renewal<br />
& Re-entry<br />
2,050+10%<br />
2,050+10%<br />
2,050+10%<br />
Residence Permit Class B<br />
Residence Permit Class B is issued <strong>to</strong> a foreigner other than a prohibited immigrant who<br />
has obtained specified employment in <strong>Tanzania</strong> and the Principal Commissioner of<br />
Immigration Services is satisfied that he possesses qualifications or skills necessary for<br />
that employment and that his employment will be of benefit <strong>to</strong> <strong>Tanzania</strong>.<br />
Applications for Residence Permit Class B should be lodged at the Office of the Direc<strong>to</strong>r of<br />
Employment, Ministry of Labor and Employment or the <strong>Tanzania</strong> <strong>Investment</strong> Center.<br />
Fees for Residence Permit Class ‘B’:<br />
1. Resident Permit: US$ 2,000<br />
2. Re-entry pass: US$ 50<br />
3. Dependents (specifically spouse and children under 18 years) should pay re-entry<br />
pass US$ 50 each if they have <strong>to</strong> be included in the permit<br />
4. Administration fee 10% of the above <strong>to</strong>tal amount<br />
If dependents are children under 18 years and intend <strong>to</strong> attend schools or colleges in<br />
<strong>Tanzania</strong>, they should apply for class ‘C’ permit.<br />
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Residence Permit Class C<br />
Residence Permit Class C may be issued <strong>to</strong> foreigners intending <strong>to</strong> enter and reside in<br />
<strong>Tanzania</strong> for purposes other than those specified for the grant of Residence Permit Class<br />
A or B. These include; students, researchers, volunteers, persons attending cases in Court<br />
of Laws, persons who have formerly been residents and are about <strong>to</strong> leave the country<br />
(i.e. winding up affairs), and persons attending medical treatment in hospitals.<br />
Requirements for Residence Permit Class C differs depending on the categories of<br />
activities that a foreigner intends <strong>to</strong> engage in.<br />
8.3. HUMAN RESOURCES AND LABOUR RELATIONS<br />
<strong>Tanzania</strong> has an extensive supply of competent human capital and welcomes talents from<br />
around the world. <strong>Tanzania</strong> invests highly in education relative <strong>to</strong> other Sub-Saharan<br />
countries. In addition, <strong>Tanzania</strong> has implemented progressive immigration policies and<br />
invites skilled people from around the world <strong>to</strong> make <strong>Tanzania</strong> their home and contribute<br />
<strong>to</strong> its economic growth.<br />
Legislation and <strong>guide</strong>lines that set Labour Standards include:<br />
Employment and Labour Relations Act (No. 6 of 2004)<br />
Labour Institutions Act (No. 7 of 2004)<br />
National Social Security Fund, Cap. 50 RE 2002<br />
Workmen’s Compensation Ordinance, Cap. 263 R.E 2002<br />
Occupation Health and Safety Act (No.5 of 2003)<br />
8.3.1. Work Permit<br />
Any foreigner who wants <strong>to</strong> work in <strong>Tanzania</strong> must obtain a Work Permit. The work<br />
permit application should be lodged by the employer <strong>to</strong> the Labour Commissioner, P.O.<br />
Box 9014, Dar Es Salaam. The application should be copied <strong>to</strong> the Principal<br />
Commissioner of Immigration through the TIC Executive Direc<strong>to</strong>r.<br />
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An inves<strong>to</strong>r who is applying for a Work Permit through TIC is allowed <strong>to</strong> bring 5 qualified<br />
expatriates whom the company intends <strong>to</strong> employ. For any extra person who is <strong>to</strong> be<br />
employed, the employer shall justify why he needs him/her. <strong>Inves<strong>to</strong>rs</strong> are encouraged <strong>to</strong><br />
generate employment for <strong>Tanzania</strong>ns in the quest <strong>to</strong> make an investment a “win-win”<br />
proposition.<br />
On receipt of the Work Permit application, the Labour Commissioner may, within 14 days,<br />
grant work permit or reject (with reasons). The work permit granted is issued for a<br />
maximum period of two years, after which the employer (inves<strong>to</strong>r) will be required <strong>to</strong><br />
apply for renewal.<br />
The inves<strong>to</strong>r must have a succession plan (training of local employees), which should be<br />
submitted <strong>to</strong> the Labour Commissioner.<br />
Work Permit is governed by the National Employment Promotion Service Act, 9/1999<br />
and <strong>Tanzania</strong> <strong>Investment</strong> Act 26/1997.<br />
Note: In case an inves<strong>to</strong>r wants <strong>to</strong> employ an expatriate who was working in <strong>Tanzania</strong> in<br />
another Company, he/she must submit a letter of no objection from a previous employer.<br />
8.3.2. Social Security<br />
<strong>Tanzania</strong>ns cannot be exempted from the National Social Security Scheme, but foreign<br />
employees can be exempted if they can prove <strong>to</strong> be involved in another scheme.<br />
8.3.3. Workmen’s Compensation Ordinance<br />
Employers are required <strong>to</strong> purchase workmen’s compensation insurance for their<br />
employees.<br />
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8.3.4. Working Hours<br />
The standard working time is 45 hours a week (International Labour Organisation<br />
standard). Over 45 working hours per week may be allowed in the event of overtime<br />
work, but not exceeding 12 hours. The standard overtime pay is 1.5 times the employee’s<br />
standard pay for normal working days and 2 times for Sunday and Public Holidays.<br />
8.3.5. Leave & Holidays<br />
The law provides for an annual leave of 28 calendar days. At the end of every second year;<br />
a leave allowance shall be paid.<br />
8.3.6. Maternity Leave<br />
Female employees are entitled <strong>to</strong> paid-maternity leave of 84 calendar days once in every<br />
3 years for one child, and 100 days for two or more children.<br />
8.3.7. Paternity Leave<br />
Male employees are entitled <strong>to</strong> a paternity leave of three calendar days upon delivery by<br />
their spouse.<br />
8.3.8. Other Statu<strong>to</strong>ry Benefits<br />
Employers may provide fringe benefits <strong>to</strong> their employees, e.g. rent allowances, transport<br />
allowance, etc. Employers should pay the skills development levy which is 6% of the<br />
gross wage bill.<br />
8.3.9. Retrenchment and Termination Procedures<br />
Firms must first meet with the Trade Union leaders. After reaching an agreement, it must<br />
be discussed with the Labour l Court.<br />
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8.3.10. Severance Pay<br />
This refers <strong>to</strong> the payments which an employer is supposed <strong>to</strong> pay an employee on<br />
termination of employment. This payment however is only for those who have completed<br />
12 months of continuous service with an employer and have not been terminated on<br />
grounds of misconduct, capacity compatibility, or operational requirements of the<br />
employer. The computation of the severance pay as per the Employment and Labour<br />
Relations Act No 6 of 2004 (“ELR”) is an amount at least equal <strong>to</strong> seven days’ basic wage<br />
for each completed year of continuous service with that employer up <strong>to</strong> a maximum of<br />
ten years.<br />
8.3.11. Laws Regulating Various Professions<br />
A number of professionals such as dentists, doc<strong>to</strong>rs, accountants, audi<strong>to</strong>rs, engineers,<br />
procurement and suppliers, advocates and notaries, etc., are required <strong>to</strong> be licensed by<br />
the appropriate Licensing or Regula<strong>to</strong>ry Authority. Tour <strong>guide</strong>s are for locals only.<br />
8.3.12. Settlement of Labour Disputes<br />
Disputes under the Employment and Labour Relations Act, 2004 are resolved by:<br />
• Mediation<br />
• Arbitration<br />
• Adjudication<br />
There is a council established <strong>to</strong> exclusively deal with labour matters <strong>to</strong> avoid court<br />
proceedings that may take very long and hamper business operations. <strong>Inves<strong>to</strong>rs</strong> are<br />
encouraged <strong>to</strong> utilize this avenue.<br />
Mediation<br />
The media<strong>to</strong>r is under obligation <strong>to</strong> resolve the dispute within 30 days of the referral or<br />
any longer period <strong>to</strong> which the parties agree in writing.<br />
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Arbitration<br />
It is conducted in the manner that the arbitra<strong>to</strong>r considers appropriate in order <strong>to</strong> resolve<br />
the dispute fairly and quickly. The arbitra<strong>to</strong>r shall deal with the merits of the disputes<br />
with minimum legal formalities.<br />
Adjudication<br />
The labour court has exclusive jurisdiction over the application, interpretation, and<br />
implementation, of the provision of Employment and Labour Relations Act and <strong>to</strong> decide<br />
on:<br />
• Appeals from the decision of the registrar made under this part<br />
• Reviews and revisions of (i) arbitra<strong>to</strong>rs award made under this Part (ii) decision of<br />
the essentials services committee under Part (vii)<br />
• Reviews of decisions, codes <strong>guide</strong>lines or regulations made by the minister under<br />
this Act<br />
• Complaints other than those that are <strong>to</strong> be decided by arbitration under the<br />
provisions of this Act<br />
• Any dispute reserved for decision by the labour court under this Act and<br />
• Applications including:<br />
• A declaration in respect of any provision of this Act, or<br />
• An injunction<br />
8.4. OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION<br />
The Occupational Health and Safety Authority (OSHA) was established under Executive<br />
Agencies Act No. 30 of 1997, and is the cus<strong>to</strong>dian of Occupational Health and Safety Act<br />
No.5 of 2003.<br />
The primary objective of Occupational Safety and Health Authority (OSHA) is <strong>to</strong> ensure<br />
the creation and maintenance of ideal work environments that are free of occupational<br />
hazards that may cause injuries or illness <strong>to</strong> all employees in the work environment. This<br />
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will be achieved by promoting occupational health and safety (OHS) practices in order <strong>to</strong><br />
reduce accidents and occupational diseases, and ultimately achieve better productivity.<br />
The main role of OSHA is <strong>to</strong> promote a good, sound and healthy working environment<br />
and thereby <strong>to</strong> create a conducive environment for enterprises as well as workers. By the<br />
provision of a healthy working environment, both workers, enterprises, and the society<br />
will benefit and save precious resources. Ultimately, this will lead <strong>to</strong> enhanced<br />
productivity and economic growth.<br />
8.5. MEDICAL INSURANCE AND HEALTH SERVICES<br />
8.5.1. Medical Insurance<br />
Due <strong>to</strong> high competition among insurance companies and efficient regula<strong>to</strong>ry<br />
environment put forth by the Insurance Supervisory Department (ISD), the availability<br />
and standards of health insurance services in <strong>Tanzania</strong> are considered as fine and still<br />
advancing. Whereas National Health Insurance Fund (NHIF) provides health insurance<br />
for government employees only, several private sec<strong>to</strong>r companies offer private insurance<br />
services. Please refer <strong>to</strong> the next list of private sec<strong>to</strong>r insurance companies for reference.<br />
Name Telephone number E-mail<br />
Strategis Insurance (T) Ltd. +255 22 2136579 insurance@strategistz.com<br />
Jubilee Insurance Co. (T) Ltd +255 22 2135121 jictz@jubilee<strong>tanzania</strong>.com<br />
Prosperity Life Care Insurance +255 22 2139970 info@yahooprosperityhealth.com<br />
AAR Insurance Co Ltd. +255 22 2701120 info@aar.co.tz<br />
Alliance Insurance Corp (T) Ltd. +255 22 2139100 alliance@intafrica.com<br />
8.5.2. Hospitals<br />
As of 2010, the number of health facilities was 6,321, whereby the Government owned 97<br />
hospitals, 449 health centres and 3,773 dispensaries; parastatals owned 11 hospitals, 5<br />
health centres and 70 dispensaries; and private and charity organizations owned 128<br />
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hospitals, 230 health centres and 1,289 dispensaries. The number of hospital beds in all<br />
health centres in the country was 45,241, out of those, 23,523 beds were in government<br />
centres, and 2,161 beds in private hospitals.<br />
8.6. EMERGENCY SERVICES<br />
Emergency services are provided by the police forces, fire brigade, and ambulance<br />
services. In addition <strong>to</strong> that, there are several private security companies that offer<br />
emergency services for their clients on special pre-agreed arrangements. The emergency<br />
telephone number for the police is 112 and 114 for fire and ambulance.<br />
8.7. AIRPORTS IN TANZANIA<br />
Major airports in the country are: Julius Nyerere International Airports (JNIA) in Dar es<br />
Salaam, Kilimanjaro International Airport (KIA), Arusha Airport, Mwanza Airport,<br />
Zanzibar Airport, and Mbeya International Airport in Songwe.<br />
8.8. ACCOMMODATION COST<br />
8.8.1. Hotel Accommodation<br />
Hotel rates vary according <strong>to</strong> season, location, class, and, of course, room category. Hotel<br />
cost per day may be anywhere from US$ 20 <strong>to</strong> US$ 350.<br />
8.8.2. Residential Apartments<br />
There are studio, two-bedroom, three-bedroom, and a few four-bedroom residential<br />
apartments. Some are serviced while others are not and prices depend on multiple<br />
fac<strong>to</strong>rs. For example, in Dar es Salaam, upper class neighbourhoods, such as Masaki,<br />
Oysterbay, Regent Estate, and Upanga, the price ranges from US$ 2,000 <strong>to</strong> US$ 3,000 per<br />
month. For middle class neighbourhoods, for instance Msasani, Ada Estate, Mbezi Beach,<br />
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and City <strong>Centre</strong>; prices are negotiable, but in the range of US$ 1,500 <strong>to</strong> US$ 2,000 per<br />
month.<br />
8.8.3. Single Family (Stand Alone) Homes<br />
Furnished and unfurnished homes are also available for rent purposes. Prices range as<br />
well depending on the nature, size, and location; whereas low end may cost US$1,500<br />
while high end may cost up <strong>to</strong> US$ 10,000 per month.<br />
8.8.4. Office Space<br />
Rates for office space also vary highly depending on a variety of fac<strong>to</strong>rs. While in Dar es<br />
Salaam, the commercial capital, rates may range from US$ 8 <strong>to</strong> US$ 40 per square metre,<br />
other regions, for instance, Arusha, Kilimanjaro, and Mwanza, can be expected <strong>to</strong> have on<br />
average lower rates per square metre.<br />
8.8.5. Warehousing Space<br />
There are also numerous warehouses available for rent in Dar es Salaam, and in several<br />
parts of other regions. The rates for hiring a warehouse space range from US$ 8 <strong>to</strong> US$ 15<br />
per square metre.<br />
8.9. WATER AND UTILITY<br />
8.9.1. Water<br />
In terms of water services, the Government is the primary provider of clean water. Dar Es<br />
Salaam Water and Sewerage Corporation (DAWASCO), is the state utility company<br />
responsible for providing water in the Dar es Salaam region. The cost of tap water is<br />
currently TZS 1,119 (US$ 0.70) per 1,000 litre unit. Aside from using the public water<br />
service, an alternative is <strong>to</strong> dig a borehole, of which cost is mostly negotiable between the<br />
service provider and receiver, more likely than not TZS 60,000 (US$ 37) per metre depth.<br />
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8.9.2. Electricity<br />
The Government is the distribu<strong>to</strong>r of electricity in <strong>Tanzania</strong> through the state utility<br />
company <strong>Tanzania</strong> Electric Supply Company Limited (TANESCO). Numerous companies<br />
such as Independent Power <strong>Tanzania</strong> Limited (IPTL), Symbion Power, and Aggreko<br />
generate power and dispatch the produced power <strong>to</strong> TANESCO, which uses its national<br />
grid power lines for countrywide distribution.<br />
Tariff Categories and Rates<br />
There are four tariff categories:<br />
• Domestic low usage tariff (D1): this category covers domestic cus<strong>to</strong>mers who on<br />
average have a consumption pattern for 50 kWh. For consumption of less than<br />
50kwh the current rate is TZS 60.0 (US$ 0.04) per unit. Under this category, any<br />
unit exceeding 50 kWh is charged at a higher rate of TZS 273.0 (US$ 0.17)<br />
• General usage tariff (T1): This segment is applicable for cus<strong>to</strong>mers who use power<br />
for general purposes: including residential, small commercial and light industrial<br />
use, public lighting, and billboards. In this category the average consumption is<br />
more 283.4 kWh per meter reading period. Unit cost is TZS 221.0 (US$ 0.10) plus<br />
a monthly service charge of TZS 3,841 (US$ 2.4)<br />
• Low voltage, maximum demand (MD): Applicable for general use where power is<br />
metered at 400V and average consumption is more than 7,500kWh per meter<br />
reading period and demand doesn’t exceed 500KVA per meter reading period.<br />
Monthly service charge of TZS 14,233 (US$ 8.9) plus demand charge of TZS 16,944<br />
(US$ 10.6) per KVA and energy charge of TZS 132 (US$ 0.08) per kWH<br />
• High voltage, maximum demand (MD): Applicable for general use where power is<br />
metered at 11KV and above. Monthly service charge of TZS 14,233 (US$ 8.9) plus<br />
demand charge of TZS 14,520 (US$ 9.0) per KVA and energy charge of TZS 118<br />
(US$ 0.07) per kWH<br />
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8.10. MEANS OF LOCAL TRANSPORT<br />
Road transport is served by taxis, private rental cars, or public commuter buses, some<br />
operated by the government and some by portfolio of private companies. Marine<br />
transportation is through public and private ferry boats, while a single state-owned<br />
airline and several private airlines provide air transportation. Cost vary by service<br />
provider and also depend on season, location/destination. The diagram that follows<br />
provides a broad overview of the country’s transportation network.<br />
In the large cities such as Dar es Salaam and Arusha, business and <strong>to</strong>urists travelers can<br />
readily rely on taxis <strong>to</strong> ferry them around. Taxis are safe, identifiable by their emblems<br />
and certification and mostly metered.<br />
Exhibit 6: Transport Infrastructure Network<br />
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8.11. TELECOMMUNICATION<br />
The main provider of landline (fixed line) telecommunication in <strong>Tanzania</strong> is <strong>Tanzania</strong><br />
Telecommunications Company Limited (TTCL). However, there are several registered<br />
mobile phone providers, namely Vodacom <strong>Tanzania</strong>, MIC (Tigo), Bharti (Airtel) <strong>Tanzania</strong>,<br />
Zantel, Benson Online, and Dovetel (Sasatel); most of which provide both data and voice<br />
solutions. There are also 13 registered Internet Service Providers (ISP), for example,<br />
Africa Online, Cats-Net, Raha, UhuruOne, TTCL, Zan Link, TTCL, SimbaNet, and DATEL.<br />
Detailed information on tariffs and services is available online.<br />
8.11.1. National ICT Infrastructure Backbone<br />
Internet connectivity in <strong>Tanzania</strong> is available virtually across the entire country.<br />
Connections are also reliable, quick and cost-effective.<br />
The national ICT infrastructure backbone services are provided by a special unit under<br />
<strong>Tanzania</strong> Telecommunication Company Ltd (TTCL). All regions are now connected <strong>to</strong> the<br />
National ICT backbone. In addition, 63 service stations have been constructed in many<br />
areas in <strong>Tanzania</strong> including areas along the borders, such as:<br />
• Rusumo (Rwanda);<br />
• Kabanga (Burundi);<br />
• Namanga (Kenya);<br />
• Kasumulo (Malawi); and<br />
• Tunduma (Zambia).<br />
8.12. OPENING A BUSINESS BANK ACCOUNT<br />
<strong>Tanzania</strong> is served by international, regional and local banks; these include Standard<br />
Chartered and Barclays from the UK, Citibank from the US, Stanbic (Standard Bank) and<br />
FNB from South Africa and several others.<br />
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The process of opening a corporate bank account depends on the particular bank, but the<br />
requirements are almost similar and hassle-free as long as one fulfills the prerequisites.<br />
Current accounts require maintaining a minimum balance and can be denominated in<br />
<strong>Tanzania</strong>n shillings, US dollars, euros and British pounds. Foreign and local banks also<br />
offer internet and mobile banking services <strong>to</strong> their cus<strong>to</strong>mers as well as linkages with<br />
mobile money accounts. Domestically regulated banks adhere <strong>to</strong> strict Know Your<br />
Cus<strong>to</strong>mer (KYC) and anti-money laundering (AML) laws.<br />
Cus<strong>to</strong>mers seeking <strong>to</strong> open a bank account are asked <strong>to</strong> provide the following information<br />
which is used by banks for cus<strong>to</strong>mer due diligence and is an integral part of global efforts<br />
<strong>to</strong> combat money laundering, terrorist financing, and fraudulent activities. Common<br />
prerequisites for opening a business account include:<br />
• Applicant Particulars<br />
• Type of Company<br />
• Business Activities<br />
• Other Bank Details (If Any)<br />
• Name of Holding/Subsidiary Company in <strong>Tanzania</strong> or Abroad<br />
• Details of Direc<strong>to</strong>rs, etc.<br />
<strong>Tanzania</strong> has no foreign exchange controls, exchange rates are determined by market<br />
forces. Resident and non-resident corporations and individuals can hold bank accounts<br />
in any currency as stipulated in the Foreign Exchange Act.<br />
Under the <strong>Investment</strong> Act 1997, inves<strong>to</strong>rs are guaranteed unconditional transferability<br />
through any authorized dealer in freely convertible currency of net profits, foreign loan<br />
service, royalties, fees and technology transfer charges, emoluments of foreign personnel<br />
and repatriation of capital, after taxes, on sale of the investment. The <strong>Tanzania</strong>n<br />
transmitting banks may, however, request documentation such as agreements, contracts,<br />
invoices, resolutions, etc. <strong>to</strong> support the remittances<br />
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9. About <strong>Tanzania</strong> <strong>Investment</strong> <strong>Centre</strong><br />
9.1. ORGANIZATION DESCRIPTION<br />
<strong>Tanzania</strong> <strong>Investment</strong> <strong>Centre</strong> (TIC) is the primary agency of the Government responsible<br />
for coordinating, encouraging, promoting and facilitating investments in<strong>to</strong> <strong>Tanzania</strong>. It<br />
also advises the Government on investment matters and policy. TIC’s vision is <strong>to</strong> become<br />
a world-class investment promotion agency promoting <strong>Tanzania</strong> as Africa’s premier<br />
investment destination.<br />
TIC has been recognized internationally for successfully fulfilling its function in terms of<br />
facilitating investments. TIC has won several international awards, including the African<br />
Innovative Management Award (AAPAM) 2008, Best <strong>Investment</strong> Promotion Agency in the<br />
World in 2007 (By WAIPA), Best Country of the Future in 2006 (By Financial Times), and<br />
The Best <strong>Investment</strong> Promotion Agency in Sub Saharan Africa in 2005 (By Africa<br />
Inves<strong>to</strong>r).<br />
9.2. FUNCTIONS OF THE CENTRE<br />
TIC is charged with the following functions:<br />
• Aggressively market <strong>Tanzania</strong>’s priority investments<br />
• Service inves<strong>to</strong>rs whereby inves<strong>to</strong>rs can obtain the necessary licenses, work<br />
permits, visas, approvals, land derivative title deeds and other facilities under one<br />
roof (One S<strong>to</strong>p Shop), <strong>to</strong> set up their business in <strong>Tanzania</strong><br />
• Grant certificates of incentives, investment guarantees and register technology<br />
agreements for all investments, which are over and above US$ 300,000 and<br />
US$ 100,000 for foreign and local investments respectively<br />
• Assist in the establishment of enterprise e.g. incorporation and registration of<br />
enterprises<br />
• Create and maintain a positive climate for private sec<strong>to</strong>r investment<br />
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• Address any administrative barriers confronting both local and foreign<br />
investments<br />
• Promote both foreign and local investment activities<br />
• Stimulate and support the growth of entrepreneurship and small and medium size<br />
enterprises (SMEs) in <strong>Tanzania</strong><br />
• Secure investment sites and assist inves<strong>to</strong>rs <strong>to</strong> establish EPZ projects<br />
• Provide and distribute up <strong>to</strong> date information on existing investment<br />
opportunities, benefits or incentives available <strong>to</strong> inves<strong>to</strong>rs<br />
• Assist all inves<strong>to</strong>rs whether or not registered by TIC<br />
9.3. ONE STOP FACILITATION CENTRE<br />
TIC is the first point of call for prospective inves<strong>to</strong>rs, a one-s<strong>to</strong>p facilitation centre for all<br />
inves<strong>to</strong>rs, which brings relevant government agencies in one location <strong>to</strong> provide<br />
coordinated, streamlined, efficient, and transparent, services <strong>to</strong> inves<strong>to</strong>rs. TIC shortens<br />
and simplifies administrative procedures for issuing and or facilitating inves<strong>to</strong>rs <strong>to</strong> obtain<br />
investment certificates, permits, licenses, and company incorporation. That, in large part,<br />
removes bottlenecks faced by inves<strong>to</strong>rs in establishing and running businesses, hence<br />
reducing the cost of doing business in <strong>Tanzania</strong>. TIC has established satellite offices major<br />
economic areas across the country such as Moshi, Mwanza, and Mbeya.<br />
TIC performs a range of activities on behalf of inves<strong>to</strong>rs, including:<br />
• Assistance <strong>to</strong> obtain certificate of incentives<br />
• Tax registration<br />
• Land issues<br />
• Business licensing and company registration<br />
• Immigration issues<br />
• Labour issues<br />
• After care services<br />
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In order <strong>to</strong> obtain a TIC certificate of incentives, inves<strong>to</strong>rs are required <strong>to</strong> meet a<br />
minimum invested capital requirement. After successful registration, TIC grants<br />
certificates of incentives, investment guarantees, and registers technology agreements<br />
that are worth in excess of US$ 300,000 for foreign inves<strong>to</strong>rs or US$ 100,000 for local<br />
inves<strong>to</strong>rs. TIC is also mandated <strong>to</strong> assist all inves<strong>to</strong>rs irrespective of whether or not they<br />
are registered by TIC.<br />
Please refer <strong>to</strong> the following table for information regarding types, time, and cost of<br />
services offered by the TIC<br />
Exhibit 7: <strong>Investment</strong> Facilitation and Service Delivery<br />
Services Provided Delivery Time Frame Fee (US$/TZS<br />
TIC application form Immediately US$ 100<br />
<strong>Investment</strong> Guide Immediately Free<br />
Provision of <strong>Investment</strong> Act Immediately Free<br />
Certificates of incentives 7 days US$ 1,000<br />
VAT registration 7 days Free<br />
Tax clearance 1 day Free<br />
Tax Identification Number 1 day Free<br />
Cus<strong>to</strong>ms approval import list 14 days Free<br />
Business name search 1 day Free<br />
Business licensing 3 days Free<br />
Company registration 3 days TZS 50,000-371,200<br />
Residence permit class A 14 days US$ 3,355<br />
Residence permit class B 14 days US$ 2,255<br />
Special pass for class A & B 1 day US$ 660<br />
Work permit class B-Labour 7 days Free<br />
Linkages with government institutions 7 days Free<br />
Services Provided<br />
Delivery Time Frame<br />
*10% administration fees paid <strong>to</strong> TIC <strong>to</strong>wards respective cost for all services<br />
9.4. PUBLIC-PRIVATE PARTNERSHIPS<br />
The Government of <strong>Tanzania</strong> recognizes the role of private sec<strong>to</strong>r in bringing about socioeconomic<br />
development through investments. Public-Private Partnership (PPP)<br />
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frameworks provides important instrument for attracting investments. Indeed, PPP has<br />
been identified as a viable means <strong>to</strong> effectively address constraints of financing,<br />
management and maintenance of public goods and services.<br />
Most PPPs implemented in <strong>Tanzania</strong> are concession arrangements for running existing<br />
enterprises with limited provisions for rehabilitation and new investments. It is<br />
noteworthy that in the case of services, PPPs have been implemented successfully by<br />
Faith Based Organizations (FBOs) in education, health and water sec<strong>to</strong>rs for many years<br />
The principal act governing PPPs in <strong>Tanzania</strong> is the Public Private Partnership Act No. 18<br />
of 2010 (Act). Also applicable are the Public Private Partnership Regulations<br />
(Regulations) passed in 2011. The Act aims <strong>to</strong> promote private sec<strong>to</strong>r participation in the<br />
provision of public services. It is hoped that the Act will facilitate the transfer of skills and<br />
technology from the private sec<strong>to</strong>r <strong>to</strong> the public sec<strong>to</strong>r as well as encourage foreign direct<br />
investment.<br />
The Act established a PPP Coordination Unit (Coordination Unit) within the <strong>Tanzania</strong><br />
<strong>Investment</strong> <strong>Centre</strong> <strong>to</strong> promote and coordinate PPP projects in mainland <strong>Tanzania</strong>. The Act<br />
also established a PPP Unit in the Ministry of Finance tasked with assessing proposed<br />
PPP projects that involve public finance.<br />
In addition <strong>to</strong> setting up the two units, the Act sets out:<br />
(a) The responsibilities of each of the contracting parties in any given project<br />
(b) What is <strong>to</strong> be contained in every PPP Agreement<br />
(c) Penalties for non-adherence <strong>to</strong> the Act<br />
There are some notable requirements for all PPP agreements. In particular, they must<br />
i. Provide for remedies in case of breach by either party<br />
ii. Provide for the period of execution<br />
iii. Provide for assistance by the public party <strong>to</strong> the private party in obtaining licenses<br />
and permits necessary for implementation of the project<br />
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iv. Impose financial management duties on the private contracting party in the form of<br />
internal financial controls, transparency, reporting and accountability<br />
v. Contain obligations on the private party <strong>to</strong> be liable for risks arising from the<br />
performance of its functions<br />
The Act further states that all disputes arising out of such agreements shall be resolved by<br />
negotiation, mediation or arbitration and those agreements must be reviewed and<br />
approved by the At<strong>to</strong>rney General before they can be signed by the relevant public<br />
authority.<br />
All PPPs are <strong>to</strong> be moni<strong>to</strong>red by the ministry responsible for the provision of the<br />
particular service.<br />
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10. One S<strong>to</strong>p Facilitation Services<br />
For purposes of easing the processes and saving time and other resources pertaining <strong>to</strong><br />
setting up a business in <strong>Tanzania</strong>, TIC offers numerous services under a one-s<strong>to</strong>p-centre<br />
approach. Officials of various Government agencies have permanent workstations at TIC<br />
facilities so that they can provide inves<strong>to</strong>rs with the needed services <strong>to</strong> facilitate<br />
inves<strong>to</strong>rs’ ambition <strong>to</strong> trade in <strong>Tanzania</strong>.<br />
The offered services include, but are not limited <strong>to</strong> immigration, land acquisition,<br />
company registration procedures, industrial license, and trademark/service mark<br />
registration. Other services include business licensing, certificate of incentives, patent<br />
registration, as well as engagement <strong>to</strong> Export Processing and Special Economic Zones<br />
(EPZ and SEZ).<br />
10.1. IMMIGRATION<br />
All foreigners from non-Commonwealth countries are required <strong>to</strong> have a valid visa unless<br />
their countries have agreements with <strong>Tanzania</strong> under which the visa requirement is<br />
waived. Visas can be obtained from <strong>Tanzania</strong> Embassy or High Commission in the country<br />
of origin and can be acquired upon arrival at international airports of Julius Nyerere<br />
International Airport (JNIA) and Kilimanjaro International Airport (KIA).<br />
<strong>Inves<strong>to</strong>rs</strong>’ application documents should be submitted <strong>to</strong> TIC offices and addressed <strong>to</strong>:<br />
Principal Commissioner Immigration Services<br />
P.O. Box: 512, Dar es Salaam.<br />
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10.2. LAND ACQUISITION<br />
Under the Land Act, Cap. 113 (R.E. 2002), all land in <strong>Tanzania</strong> belongs <strong>to</strong> the state vested<br />
in the President as trustee on behalf of all citizens. Public land is categorised as general<br />
land, village land, or reserved land. However, land can be owned in three different ways:<br />
1. Government Granted Rights of Occupancy<br />
2. TIC Derivative Rights<br />
3. Subleases created out of Granted Rights of Occupancy by the private sec<strong>to</strong>r<br />
Rights of Occupancy and Derivative Rights are granted for a long-term, ranging from 33 <strong>to</strong><br />
99 years and the term is renewable.<br />
TIC has stationed officers from the Ministry of Lands, Housing and Human Settlements<br />
Development <strong>to</strong> facilitate land acquisition. This process is provided by TIC free of charge.<br />
10.2.1. Right of Occupancy<br />
Requirements for application and acceptance for Right of Occupancy include:<br />
• A duly completed Land Form no. 19<br />
• 3 passport size pho<strong>to</strong>graphs<br />
• TZS 80,000 (US$ 50) application fee<br />
• Declaration of all rights and interests in land in <strong>Tanzania</strong>, which the applicant has<br />
at the time of application<br />
• Consent of a local authority or other body as required by law<br />
• An application by a non-citizen or foreign company should be directed <strong>to</strong> TIC,<br />
accompanied by a certificate of incentives granted by TIC under the <strong>Tanzania</strong><br />
<strong>Investment</strong> Act, Cap.38 (R.E. 2002).<br />
• Payment by the applicant of land rent and other land fees as prescribed in the<br />
payment invoice issued by the Commissioner for Lands<br />
• Signing by the applicant Acknowledgement of Payments Form<br />
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• Signing by applicant a Certificate of Occupancy (Land Form no. 22 and 23 for<br />
urban and rural lands respectively)<br />
• Signing Derivative Rights being a lease agreement by the parties i.e. TIC, the lessor<br />
and Inves<strong>to</strong>r the lessee, (Land Form no. 56)<br />
• TIC undertakes all application Procedures on behalf of <strong>Inves<strong>to</strong>rs</strong>.<br />
Fees payable include:<br />
10.2.2. For Urban Land<br />
• Survey Fee - varies<br />
• Registration Fee - varies<br />
• Preparation Fee - varies<br />
• Stamp Duty – varies<br />
• Land Rent charges:<br />
• Industrial Plots (within urban areas) range between TZS 75 - 1,500<br />
(US$ 0.05 - $0.93) per square metre per year, while for other uses charges<br />
vary depending on the market value of the particular land. Please refer <strong>to</strong><br />
exhibit No. 4 for procedures <strong>to</strong> acquire urban land.<br />
Under the Land Act, citizens or local inves<strong>to</strong>rs can acquire land through Granted Right of<br />
Occupancy or a Derivative Right or by obtaining a sub-lease from a private land owner.<br />
• Occupation of land by non-citizens is restricted <strong>to</strong> investment purposes under the<br />
<strong>Tanzania</strong> <strong>Investment</strong> Act. Under the Land Act, a foreign company may occupy land<br />
through<br />
• Derivative Rights under section 20(2) of the Act; Application <strong>to</strong> the<br />
Commissioner for Lands for a grant of Right of Occupancy under section<br />
25(1) (h) and (i) of the Land Act, and section 3 of the Land (Amendment)<br />
Act, No. 2 of 2004; sub-leases from private owner; licenses from the<br />
Government and Purchase from other holders of granted Rights of<br />
Occupancy.<br />
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Exhibit 4: Procedure <strong>to</strong> Acquire Urban Land<br />
1<br />
2<br />
3<br />
4<br />
5<br />
6<br />
7<br />
8<br />
9<br />
10<br />
• Application <strong>to</strong> urban authority:<br />
Land form No. 19<br />
• Application submitted <strong>to</strong> urban<br />
land authority allocation committee<br />
• Application approved/rejected<br />
• Payment invoices issued stipulating<br />
fees <strong>to</strong> be paid by an applicant<br />
• Certificate of occupancy prepared:<br />
Form No. 22<br />
• Certificate of Registration by Registrar<br />
of titles<br />
• Duplicate certificate given <strong>to</strong><br />
Occupier<br />
• Derivative right prepared: Land<br />
Form No. 56<br />
• Derivative right registered by<br />
Registrar of Titles<br />
• One copy given <strong>to</strong> inves<strong>to</strong>rs<br />
• Applicant notified<br />
Fees payable under stage 4 of the urban land acquisition process outlined above<br />
• Survey fee – varies<br />
• Registration fee – varies<br />
• Preparation fee – varies<br />
• Stamp duty – varies<br />
• Land rent charges<br />
10.2.3. For Farmland<br />
• Survey fee – varies<br />
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• Registration fee – varies<br />
• Preparation fee – varies<br />
• Stamp duty – variable<br />
• Land rent charges:<br />
• Farm outside <strong>to</strong>wnship TZS 5,000 (US$ 3.11) per acre per year<br />
• Farm within <strong>to</strong>wnship TZS 10,000 (US$ 6.22) per acre per year<br />
Exhibit 5: Procedure <strong>to</strong> Acquire Farmland<br />
1<br />
Application submitted <strong>to</strong> the Commisional for Lands<br />
[Land Form No: 19] accompanies by certificate of<br />
incentives issued by TIC and pho<strong>to</strong>graphs of the<br />
applicants<br />
2A<br />
2B<br />
Application approved by<br />
Commisional for lands<br />
Application rejected<br />
3<br />
Inves<strong>to</strong>r notified<br />
For further information, inves<strong>to</strong>rs may contact:<br />
Commissioner for Lands<br />
Ministry of Lands, Housing and Human<br />
Settlements Development<br />
P.O. Box 9230<br />
Permanent Secretary<br />
Ministry of Lands, Housing and Human<br />
Settlements Development<br />
P.O. Box 9132<br />
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Dar es Salaam, <strong>Tanzania</strong><br />
Tel. 255 22 2117870<br />
Fax: 255 22 2113224<br />
Dar es Salaam, <strong>Tanzania</strong><br />
Tel. 255 22 2121241-9<br />
Fax: 255 22 2113224<br />
Email: ps-ardhi@africanonline.co.tz<br />
10.3. STARTING A BUSINESS:<br />
10.3.1. Company Registration Procedures<br />
For inves<strong>to</strong>rs who pass through TIC facilitation registration will be processed by TIC. All<br />
enterprises operating in <strong>Tanzania</strong>, whatever their legal forms, must register with the<br />
Business Registration and Licensing Agency (BRELA) of the Ministry of Industry & Trade.<br />
However, other approvals, permits, and licenses, are also required depending on the<br />
sec<strong>to</strong>r in which the company intends <strong>to</strong> operate. Private companies are required <strong>to</strong> have<br />
at least two direc<strong>to</strong>rs.<br />
10.3.2. Types of Companies<br />
Companies Act Cap.212 introduced four main types of companies as follows:<br />
• Private companies<br />
• Non-private companies (Public)<br />
• Foreign companies (companies incorporated out of <strong>Tanzania</strong>)<br />
• Parastatal or state owned companies<br />
Private companies<br />
• Private companies are normally formed by persons with prior relationships other<br />
than only business relationship e.g. father and son's and or daughters, friends etc.<br />
• Minimum number of membership for a private company is two and maximum is<br />
fifty excluding persons who become member by virtue of being employees of the<br />
company.<br />
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• The shares of these companies are not freely transmissible. The transferability is<br />
subject <strong>to</strong> strict control and regulations, as such, these types of companies may not<br />
list on the s<strong>to</strong>ck exchange for purposes of trading in shares.<br />
• These types of companies are supposed <strong>to</strong> submit annual returns and any other<br />
statu<strong>to</strong>ry fillable documents <strong>to</strong> the Registrar (e.g. Changes of particulars of<br />
direc<strong>to</strong>rs, change of company names etc.). Filing fees are also payable and penalty<br />
for late filing is also levied.<br />
Foreign companies (companies incorporated out of <strong>Tanzania</strong>)<br />
• These are companies incorporated outside <strong>Tanzania</strong>. Their offices in <strong>Tanzania</strong> are<br />
treated as branches of foreign company. Even if all subscribers and our<br />
shareholders are nationals of the United Republic of <strong>Tanzania</strong>, the companies are<br />
regarded as foreign. They are registered under part XII of Cap.212.<br />
• The Registration procedure of this type of companies includes the submission of:<br />
1. Certified copies of Memorandum and Articles of Association.<br />
2. Notice of the location of the registered office in the country of domicile.<br />
3. List of Direc<strong>to</strong>rs of the company.<br />
4. Persons resident in the country who are the representatives of the company<br />
5. Copy of the most recent accounts and related reports of the company<br />
a. Fees payable are US$ 500 <strong>to</strong>wards registration fees and US$ 600 for<br />
filing<br />
b. Certificate of companies is issued <strong>to</strong> applicants after the process<br />
Note: All companies need <strong>to</strong> submit annual returns which are done in prescribed forms.<br />
Audited company accounts form a part of the returns. Foreign companies are required <strong>to</strong><br />
file only audited balance sheets of their companies.<br />
Registration procedures<br />
1. Applicants submit a letter for name clearance; the registry clears the proposed<br />
name after search. The registry search is <strong>to</strong> establish:<br />
a. The availability or non-availability of the applied name<br />
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b. Desirability of such name<br />
2. Applicants are then advised if the name is available or not after which they<br />
prepare Memorandum and Articles of Association and submit the same <strong>to</strong> the<br />
Registrar for registration process<br />
3. Compliance with all requirements relating <strong>to</strong> the formation of the company is<br />
declared in form No: 14b, which is sworn before a Commissioner for oath.<br />
Particulars of direc<strong>to</strong>rs are given through form 14a and notice of the situation of<br />
the registered office is also given through the same form 14a, where physical<br />
locations and postal addresses must be provided<br />
Fees Payable<br />
There are three types of fees payable by applicants for registration of new companies:<br />
Fee<br />
Registrations Fees<br />
Details<br />
Fees based on nominal share capital of the Company. Minimum share<br />
capital range is TZS 20,000 <strong>to</strong> 500,000 (US$ 12.45 <strong>to</strong> 311.24) where<br />
corresponding fee is TZS 50,000 (US$ 31.12). Highest band is share<br />
capital in excess of TZS 30,000,000 (US$ 18,674) where corresponding<br />
fee is TZS 300,000 (US$ 186.74)<br />
Filing fee TZS 45,000 (US$ 28) for the whole application, meaning TZS 15,000<br />
(US$ 9.34) for each document i.e. Memorandum and Articles of<br />
Association, Form no.14a and 14b.<br />
Stamp Duty<br />
Each copy of the Memorandum and Articles of Association is charged a<br />
stamp duty of TZS 5,000 (US$ 3.11) and form 14Ib is charged a stamp<br />
duty of TZS 1,200 (US$ 0.75).<br />
10.3.3. Patent Registration<br />
What is a Patent?<br />
A patent is an exclusive right granted by the Government <strong>to</strong> an inven<strong>to</strong>r for a limited<br />
amount of time, normally 20 years from the time of filing. However, this right is only valid<br />
during the lifetime of the patent. When this time expires, the patent falls in the public<br />
domain and it can be used by anyone for commercial or any other purpose.<br />
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How is Patent Granted?<br />
An inven<strong>to</strong>r or any person who has a right over an invention files a patent application<br />
with the office of the registrar of patents. This application should contain a title of the<br />
invention, description of the invention, stating the technical field under which the<br />
invention falls. The description should be in clear language <strong>to</strong> be unders<strong>to</strong>od by a person<br />
with an average understanding in the field such that they can work on the invention<br />
basing on the description. More elaboration such as drawings should be made and should<br />
also state what is claimed in the invention.<br />
Kinds of Inventions that can be protected<br />
In order for an invention <strong>to</strong> be protected, it must be:<br />
• Novel, not obvious that it should be new in the field<br />
• Should be of practical use<br />
• Must contain inventive steps. This excludes scientific theories, mathematical<br />
theories, discoveries of methods of medical treatment<br />
• Should be industrially reproducible.<br />
How <strong>to</strong> register a Trade and/or Service Mark<br />
The application for registration of a trade mark or service mark is made by filing form<br />
namely TM/SM2, which can be obtained from the office of the Registrar of Trade/Service<br />
Mark or from Trade and Service Mark agents.<br />
10.3.4. Industrial License<br />
The Industrial Licensing Division implements the National Industries Licensing and<br />
Registration Act No. 10 of 1967 (as amended by ACT No.13 of 1982). The act makes<br />
provision for orderly Promotion and Development of Industries <strong>to</strong> provide for<br />
Registration and Licensing of Industries. There are two methods of issuing out Industrial<br />
Licenses <strong>to</strong> firms, and it is dependent on whether the requesting firm goes through the<br />
<strong>Tanzania</strong> <strong>Investment</strong> <strong>Centre</strong> (TIC) or the Board.<br />
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Firms with TIC Approval<br />
These companies are generally those with investments greater than TZS 100 million<br />
(US$ 62,200). These firms start at TIC (seeking exemptions), who scrutinize their<br />
documents, and issue a Certificate of Incentive approval. A copy of this certificate is then<br />
presented <strong>to</strong> the Registrar <strong>to</strong>gether with the appropriate BRELA forms filled in. The<br />
Registrar then issues and Industrial License <strong>to</strong> the firm.<br />
Types of Certificates<br />
Enterprise whose capital investment cost is lower than TZS 100 million (US $ 62,200) get<br />
a Certificate of Registration. These applications are approved by the registrar of<br />
Industries without passing through the board. Enterprise whose capital <strong>Investment</strong> is<br />
above TZS 100 million (US $ 62,200) qualify for Industrial License.<br />
Fees<br />
Enterprise with investment cost of over TZS 100 million pay a fee of US$ 500 or its<br />
equivalent in TZS. For license projects with investment cost less than TZS 100 million pay<br />
US$ 400 or its equivalent in TZSs for issuance of certificate of registration.<br />
10.3.5. Business Licensing<br />
The business license desk at TIC processes business licenses from <strong>Inves<strong>to</strong>rs</strong>, issues<br />
Temporary business licenses for 60 days and Permanent License after <strong>Inves<strong>to</strong>rs</strong> obtain all<br />
necessary documents. The Ministry of Industry and Trade provides licenses which have<br />
International level and Municipal issues license which has national level.<br />
Application Requirements for Business License:<br />
• Pho<strong>to</strong>copy of certificate of incorporation<br />
• Memorandum and articles of association<br />
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• Proof of <strong>Tanzania</strong> citizenship e.g. pho<strong>to</strong>copy of passport or birth certificate. In case<br />
of non- citizen, residence permit class A showing that the holder is an Inves<strong>to</strong>r in<br />
that Company/Business.<br />
• Lease agreement or title deed<br />
• TIN<br />
• In case the shareholders of the company are non-residents but not living in<br />
<strong>Tanzania</strong>, Powers of At<strong>to</strong>rney <strong>to</strong> a Citizen/Resident Permit should be submitted<br />
• Additional Requirements for Specific Business:<br />
• Cus<strong>to</strong>ms Agency Licenses for a Clearing and Forwarding Company, Cus<strong>to</strong>ms<br />
Agency License (CAL) for those applying for clearing and forwarding licenses.<br />
• Tourism Agency License (TALA) for those applying licenses related <strong>to</strong> <strong>to</strong>urist<br />
promotions e.g. Tourist Hotels, Travel Agents, Tour Opera<strong>to</strong>rs, hunting etc.<br />
• Professional Certificates/Authority for all Professional Businesses. E.g. Running<br />
Hospitals, Dispensaries, Advocates, Pilots, Ship Captains, etc.<br />
• Certificate <strong>to</strong> authorize aircraft <strong>to</strong> fly (Air worthiness) or ship <strong>to</strong> sail (Sea<br />
worthiness)<br />
Note: The recently introduced Business Activities Registration Act 2007 has replaced the<br />
Business Licensing Act No. 25 of 1972. Under the new system, each business activity<br />
operating in <strong>Tanzania</strong> shall be registered permanently in the registry. The Business<br />
Activities Registrar can suspend a certain business activity if any of the following<br />
happens:<br />
• The business premise ceases <strong>to</strong> be useful for the intended purposes<br />
• The owner is convicted of any offence<br />
• Bankruptcy, or<br />
• Failure <strong>to</strong> comply with the conditions of the certificate<br />
Each application shall contain the following:<br />
1. Name of the business<br />
2. Date of commencement<br />
3. Name and nationality of owners<br />
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4. Nature and core of activity of the business<br />
5. The number of employees in the business and if the business has more than one<br />
branch a number of employees in each sub branch.<br />
6. The physical and postal address of the business<br />
7. Chief executive or anyone in charge in the company<br />
8. In the case of a subsidiary business, the name and location of the head office and<br />
TIN.<br />
10.3.6. Certificate of Incentives<br />
TIC issues a formal certificate of incentives. Although investments in the mining and<br />
petroleum sec<strong>to</strong>r are obliged <strong>to</strong> follow the Mining Act 1998 and Petroleum (Exploration<br />
and Production) Act 1980, TIC helps inves<strong>to</strong>rs <strong>to</strong> obtain authorizations required by other<br />
laws <strong>to</strong> set up and operate businesses in <strong>Tanzania</strong>.<br />
Requirements for the Certificate of Incentives:<br />
• Three copies of the project business plan/feasibility study<br />
• One copy of the memorandum and articles of association<br />
• One copy of certificate of incorporation<br />
• Covering letter and three copies of TIC application forms<br />
• One copy of a company board resolution<br />
• One copy of an evidence of land ownership<br />
• One copy of an evidence of financing<br />
Additional Requirements for Specific Business:<br />
• Cus<strong>to</strong>ms Agency Licenses for a Clearing and Forwarding Company, Cus<strong>to</strong>ms<br />
Agency License (CAL) for those applying clearing and forwarding licenses.<br />
• Tourism Agency License (TALA) for those applying licenses related <strong>to</strong> <strong>to</strong>urist<br />
promotions e.g. Tourist Hotels, Travel Agents, Tour Opera<strong>to</strong>rs, hunting etc.<br />
• Professional Certificates/Authority for all Professional Businesses. E.g. Running<br />
Hospitals, Dispensaries, Advocates, Pilots, Ship Captains, etc.<br />
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• Certificate <strong>to</strong> authorize aircraft <strong>to</strong> fly (Air worthiness) or ship <strong>to</strong> sail (Sea<br />
worthiness)<br />
Note: The recently introduced Business Activities Registration Act 2007 has replaced the<br />
Business Licensing Act No. 25 of 1972. Under the new system, each business activity<br />
operating in <strong>Tanzania</strong> shall be registered permanently in the registry. The Business<br />
Activities Registrar can suspend a certain business activity if any of the following<br />
happens:<br />
• The business premise ceases <strong>to</strong> be useful for the intended purposes<br />
• The owner is convicted of any offence<br />
• Bankruptcy, or<br />
• Failure <strong>to</strong> comply with the conditions of the certificate<br />
Each application shall contain the following:<br />
1. Name of the business<br />
2. Date of commencement<br />
3. Name and nationality of owners<br />
4. Nature and core of activity of the business<br />
5. The number of employees in the business and if the business has more than one<br />
branch a number of employees in each sub branch.<br />
6. The physical and postal address of the business<br />
7. Chief executive or anyone in charge in the company<br />
8. In the case of a subsidiary business, the name and location of the head office and<br />
TIN.<br />
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For further information, please contact:<br />
Chief Executive Officer<br />
Business Registration and Licensing Agency (BRELA)<br />
P. O. Box 9393, Dar Es Salaam, <strong>Tanzania</strong><br />
Tel: 2180141/2180113<br />
Fax: 255-22-2180371<br />
Email: usajili@cats-net.com<br />
Website: www.brela-tz.org<br />
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11. Other Important Processes<br />
11.1. TAXATION<br />
<strong>Tanzania</strong> has a stable and predictable fiscal regime, providing a soft landing <strong>to</strong> all<br />
inves<strong>to</strong>rs. The kind of regime that recognizes the need for inves<strong>to</strong>rs <strong>to</strong> recover their<br />
investment costs before paying corporate tax. The administration of various tax laws is<br />
entrusted <strong>to</strong> the <strong>Tanzania</strong> Revenue Authority (TRA), a semi-au<strong>to</strong>nomous government<br />
agency created by Act No.11 of Parliament in 1995. It is responsible for central<br />
government taxes and several non–tax revenues.<br />
Revenue departments under TRA include:<br />
• Domestic Revenue Department<br />
• Cus<strong>to</strong>ms and Excise Department<br />
• Large Taxpayer Department, and<br />
• Tax Investigations Department<br />
Testimonial<br />
A Government Agency Leading the Way <strong>to</strong> High Performance<br />
“Since its inception in 1996, <strong>Tanzania</strong> Revenue Authority (TRA) has evolved from<br />
a government agency focusing only on revenue collection, in<strong>to</strong> an organisation<br />
which gives special attention <strong>to</strong> the quality of service for its cus<strong>to</strong>mers. TRA’s<br />
success is clearly manifested by an increase in revenue collection from US$ 1,575<br />
million in 2004/05 <strong>to</strong> US$ 3,996.5 million in 2011/12, which in turn raised the<br />
ratio of tax revenue contribution <strong>to</strong> GDP from 11.8% <strong>to</strong> 15.8% respectively.<br />
On the tax policy front, TRA has carried out reforms <strong>to</strong> review the tax laws in<br />
order <strong>to</strong> ensure fairness and equity, while on the tax administration side it has<br />
ensured convenience of paying taxes. These have included integration of<br />
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operations <strong>to</strong> have one-s<strong>to</strong>p centres for all taxes; payment of taxes through<br />
commercial banks; electronic filing for both domestic and cus<strong>to</strong>ms operations;<br />
and trade facilitation by streamlining cus<strong>to</strong>ms processes, hence reducing<br />
clearance time at harbours and airports. All reforms are discussed with taxpayers<br />
through the stakeholders’ forum.<br />
In recognition of the success of the reforms, TRA became the first government<br />
agency in <strong>Tanzania</strong> <strong>to</strong> implement the Quality Management System based on the<br />
ISO 9001:2008 standard for service delivery, and became certified in 2008. TRA<br />
also was the first winner of the prestigious Continental Award for Innovative<br />
Management in 2010, which is jointly sponsored by African Association for Public<br />
Administration and Management (AAPAM) with the Commonwealth Secretariat.<br />
TRA, as part of the government machinery, is playing its part diligently <strong>to</strong> ensure<br />
that <strong>Tanzania</strong> is a preferred investment destination.”<br />
Harry M. Kitillya<br />
Commissioner General, <strong>Tanzania</strong> Revenue Authority (Oc<strong>to</strong>ber 2012).<br />
11.2. REGISTRATION WITH DOMESTIC REVENUE AND TAX STRUCTURE<br />
AND ADMINISTRATION<br />
Registration which can be undertaken by TIC on behalf of the inves<strong>to</strong>r requires the<br />
following documents:<br />
• Taxpayer identification number (will be issued <strong>to</strong> a company & shareholders):<br />
• Certificate of registration or certificate of incorporation<br />
• Memorandum and articles of association<br />
• Certificate of incentives in the case of projects approved by TIC<br />
• Partnership agreement (deed), in the case of a partnership<br />
• Lease agreement ( Stamp Duty & Withholding Tax on Rental Income have <strong>to</strong> be<br />
Paid); or Title Deed<br />
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• Pho<strong>to</strong>graphs of direc<strong>to</strong>rs<br />
• The Shareholders will be required <strong>to</strong> be taken fingerprints and pho<strong>to</strong>graph at TRA<br />
Office (Biometric)<br />
• Forms <strong>to</strong> be filled include:<br />
• TIN forms<br />
• Business inquiry forms<br />
• Provisional Return/Assessment – Statement of Estimate Entity forms (ITX202. 01<br />
E)<br />
Taxes under the domestic revenue department include:<br />
• Corporate tax (30% for both resident and nonresident)<br />
• Withholding tax (for dividend payments, pension, insurance premium, royalties,<br />
transport and disposal of assets)<br />
• Income tax rates for individuals (the marginal rate ranges from 14 % <strong>to</strong> 30%)<br />
• Income tax rate for non-resident individuals (a flat rate of 20% applies)<br />
• Taxable value of employment benefits (generally all benefits are taxable)<br />
• Capital gains tax (the gain/loss upon sale realization is included in business<br />
income and taxed at the general rate)<br />
• Skills and development levy (6% of the <strong>to</strong>tal gross emoluments paid by employers<br />
<strong>to</strong> employees)<br />
• Gaming tax (as prescribed in the Pools and Lotteries Act, 1967)<br />
When a loss is incurred, such a loss is treated as an allowable deduction in ascertaining<br />
the <strong>to</strong>tal income of that person, thus a loss is carried forward indefinitely. However, the<br />
companies with perpetual tax losses for three consecutive years because of tax incentives<br />
on investments are charged 0.3% of annual turnover.<br />
A number of capital deductions are entitled under the Income Tax Act 2004, including<br />
wear and tear granted <strong>to</strong> a person who owns machinery. The Income Tax Laws allow<br />
100% capital expenditure <strong>to</strong> Mining & Agricultural Sec<strong>to</strong>rs. The Law also allows a 50%<br />
allowance in the first year of use for plant and machinery used in manufacturing<br />
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processes and fixed in a fac<strong>to</strong>ry, fish farming, and providing services <strong>to</strong> <strong>to</strong>urists and fixed<br />
in a hotel. Thereafter, different wear and tear rates apply.<br />
11.2.1. Value Added Tax (VAT)<br />
Value Added Tax is a consumption tax charged by VAT Registered traders on all taxable<br />
goods and services at a standard rate of 18%. The VAT is a multi-stage tax levied at each<br />
stage of production and distribution up <strong>to</strong> the retail stage.<br />
VAT registration is compulsory for any business, which has a turnover that exceeds TZS<br />
40 million per annum or TZS 10 million in a period of 3 consecutive months is obliged <strong>to</strong><br />
apply for registration <strong>to</strong> the Commissioner for Domestic Revenue. Applicants for VAT<br />
registration should complete form No.VAT 101. A taxpayer is required <strong>to</strong> submit a<br />
monthly VAT return along with the payments <strong>to</strong> the nearest regional VAT office by the last<br />
working day of the month following the month of business.<br />
11.2.2. VAT Special Relief<br />
Capital goods for investment do not attract VAT upfront as the VAT is relieved <strong>to</strong> allow<br />
inves<strong>to</strong>r relief of tax up front. VAT relief on any capital goods is open <strong>to</strong> all VAT registered<br />
and non-registered trader.<br />
11.2.3. VAT Refunds<br />
VAT refunds are made within either 30 days or 6 months from the due date depending on<br />
the type of taxpayer. Regular repayment traders like exporters can claim their refund<br />
within 30 days while other traders can get their refunds after 6 months.<br />
11.2.4. VAT Schedules<br />
There are various goods and services that are either zero rated, such as exports, or,<br />
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• VAT exempts/Exempt supplies: such as lives<strong>to</strong>ck, animal products, unprocessed<br />
dairy products, unprocessed agricultural products, fresh edible vegetable, fruits<br />
and nuts, pesticides, fertilizers, computers, oil cakes (mashudu, layers marsh,<br />
health supplies and <strong>to</strong>urist services).<br />
• Special Relief: Such as supplies <strong>to</strong>, or importation of goods or services by,<br />
diplomats or diplomatic missions; supplies or importation of goods or services<br />
under technical aid or donor funded agreement; supply of specified goods <strong>to</strong> the<br />
armed forces; and supply <strong>to</strong> a registered medical practitioner, optician, dentist,<br />
hospital or clinic or <strong>to</strong> a patient, of equipment designed solely for medical or<br />
prosthetic use, including ambulance and mobile health clinics.<br />
• Importation by or supply of capital goods <strong>to</strong> any person: importation by or<br />
supply <strong>to</strong> a registered water drilling company of goods <strong>to</strong> be used solely for water<br />
drilling; importation by or supply of railway locomotives, rolling s<strong>to</strong>cks, parts, and<br />
accessories <strong>to</strong> a registered railways company, corporation or authority. In addition,<br />
importation by or supply <strong>to</strong> fire fighting vehicles <strong>to</strong> the government, or its<br />
agencies, etc.<br />
11.3. TAXES ON INTERNATIONAL TRADE<br />
The Cus<strong>to</strong>ms and Excise Department administers all taxes on international trade which<br />
are:<br />
• Import duty,<br />
• Excise duty on imports, and<br />
• VAT on imports<br />
11.3.1. Import Duty<br />
The East African Community (EAC) partner states have adopted a Common External<br />
Tariff that is applied throughout the region with effect from 1st Jan. 2005. The Process of<br />
harmonizing the external tariff has resulted in<strong>to</strong> charges in tariff rates and even tariff<br />
codes in certain areas. The rates applicable with effect from 1st January 2005 are:<br />
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• 0% for raw materials, capital goods, agricultural trac<strong>to</strong>rs, pure breeds animals,<br />
fertilizers and medicines.<br />
• 10%, for semi-finished goods,<br />
• 25% for finished final consumer goods<br />
It is levied at an ad valorem rate on the CIF value of goods imported in<strong>to</strong> the country.<br />
11.4. AGREEMENT ON CUSTOMS VALUE (ACV)<br />
In <strong>Tanzania</strong>; the Cus<strong>to</strong>ms and Excise Department has adopted the system of goods<br />
valuation known as Agreement on Cus<strong>to</strong>ms Valuation (ACV). This is part of <strong>Tanzania</strong>’s<br />
obligation <strong>to</strong> implement World Trade Organization (WTO). The system provides for use of<br />
price actually paid or payable for the goods and forbids the use of arbitrary or fictitious<br />
cus<strong>to</strong>ms values.<br />
11.4.1. Excise Duty<br />
This is charged on specific or ad valorem tax rate on certain imported and locally<br />
manufactured consumer goods. Currently, there are three ad valorem rates 10%, 15%<br />
and 30%. Most of the locally manufactured goods are charged excise duty.<br />
11.4.2. Stamp Duty<br />
Stamp duty is charged on certain legal instruments/ transactions, affidavits, conveyances<br />
& lease agreements. The rate applicable is 1% and TZS 500 (US$ 0.31) for conveyance<br />
and agricultural land respectively. The maximum stamp duty rate for registration of<br />
property for security or mortgage is TZS 10,000 (US$ 6.23).<br />
11.4.3. Mo<strong>to</strong>r Vehicle<br />
Transfer of mo<strong>to</strong>r vehicle costs TZS 50,000 (US$ 31.13). The mo<strong>to</strong>r vehicle registration<br />
and annual license fees vary depending on the engine cubic capacity of the car.<br />
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11.4.4. Double Taxation Agreements<br />
Double taxation agreements exist with Canada, Denmark, Finland, India, Italy, Norway,<br />
South Africa, Sweden, and Zambia. Bilateral investment treaties exist with Denmark,<br />
Egypt, Finland, Germany, Italy, Republic of Korea, Netherlands, Sweden, Switzerland, and<br />
the UK.<br />
11.5. INVESTMENT GUARANTEES<br />
<strong>Investment</strong>s in <strong>Tanzania</strong> are guaranteed against nationalisation and expropriation.<br />
<strong>Tanzania</strong> is a signa<strong>to</strong>ry of several multilateral and bilateral agreements on protection and<br />
promotion of foreign investment. Among other international agreements and<br />
membership, <strong>Tanzania</strong> is a member of Multilateral <strong>Investment</strong> Guarantee Agency (MIGA)<br />
and International <strong>Centre</strong> for Settlement of <strong>Investment</strong> Disputes (ICSID).<br />
11.6. BILATERAL TRADE & INVESTMENT AGREEMENTS<br />
<strong>Tanzania</strong> is eligible for African Growth and Opportunity Act (AGOA). It also qualifies for<br />
textile and apparel benefits. The African Growth and Opportunity Act (AGOA) was signed<br />
in<strong>to</strong> law by President Clin<strong>to</strong>n in May 2000 with the objective of expanding U.S. trade and<br />
investment with sub-Saharan Africa, <strong>to</strong> stimulate economic growth, <strong>to</strong> encourage<br />
economic integration, and <strong>to</strong> facilitate sub-Saharan Africa's integration in<strong>to</strong> the global<br />
economy.<br />
At the centre of AGOA are substantial trade preferences that, along with those under the<br />
Generalized System of Preferences (GSP), allow virtually all marketable goods produced<br />
in AGOA-eligible countries <strong>to</strong> enter the U.S. market duty-free.<br />
Trade Agreements: The U.S. signed Trade and <strong>Investment</strong> Framework Agreements<br />
(TIFA) with the East African Community (EAC) in 2008 and with the Common Market for<br />
Eastern and Southern Africa (COMESA) in 2001. <strong>Tanzania</strong> is a member of both regional<br />
organizations.<br />
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11.7. SETTLEMENTS OF COMMERCIAL DISPUTES<br />
Disputes arising between the Government and inves<strong>to</strong>rs are settled harmoniously<br />
through negotiations. Otherwise, they may be submitted <strong>to</strong> arbitration based on:<br />
• Arbitration laws of <strong>Tanzania</strong> for inves<strong>to</strong>rs<br />
• Rules of procedure for arbitration of the ICSID<br />
• Within the framework of any bilateral or multilateral agreement on investment<br />
protection agreed by <strong>Tanzania</strong> and the government where the inves<strong>to</strong>r originates<br />
11.8. FIRE AND RESCUE COMPLIANCE<br />
Premises of all organisations are required by the Fire and Rescue Services Act 1985 <strong>to</strong> be<br />
inspected and certified by the Fire and Rescue Force under the Ministry of Home Affairs.<br />
<strong>Inves<strong>to</strong>rs</strong> need <strong>to</strong> be informed of this requirement.<br />
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12. Appendices<br />
Appendix A - <strong>Tanzania</strong> Fact Sheet<br />
Official Name<br />
United Republic of <strong>Tanzania</strong><br />
Head of State Hon. Jakaya Mrisho Kikwete (2005-2015)<br />
Population 44.9 Million. National census (2012)<br />
Geographical Area<br />
Geographical Location<br />
Climatic Condition<br />
Currency<br />
Languages<br />
GDP<br />
Religions<br />
947,300 km²: The world's 31st-largest country<br />
East Africa: Between latitudes 1° and 12°S, and longitudes<br />
29° and 41°E.<br />
Tropical in most areas and temperate in highlands<br />
<strong>Tanzania</strong> Shilling<br />
English & Swahili as two official languages, plus 120+ tribal<br />
languages<br />
USD 28.3 Billion. World Bank 2012 Estimates<br />
Christians, Muslims, and Indigenous beliefs<br />
Local Time GMT +3:00<br />
Electrical Voltage<br />
220V<br />
Country Telephone Code 00255<br />
Road Side of Driving<br />
Visa<br />
Bordering Countries<br />
Capital/Political City<br />
Principal Commercial &<br />
Administrative City<br />
Left<br />
Required by all natives except Commonwealth and residents<br />
whose countries have agreements with <strong>Tanzania</strong> under<br />
which the visa requirement is waived<br />
Kenya and Uganda <strong>to</strong> the north, Rwanda, Burundi, and the<br />
Democratic Republic of Congo <strong>to</strong> the west, and Zambia,<br />
Malawi, and Mozambique <strong>to</strong> the south.<br />
Dodoma<br />
Dar Es Salaam<br />
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Appendix B – List of Official Public Holidays<br />
1st January<br />
12th January<br />
Date Varies<br />
Date Varies<br />
Date Varies<br />
Date Varies<br />
7th April<br />
26th April<br />
1st May<br />
7th July<br />
8th August<br />
Date Varies<br />
14th Oc<strong>to</strong>ber<br />
9th December<br />
Date Varies<br />
25th December<br />
26th December<br />
New Year's Day<br />
Zanzibar Revolution Day<br />
Maulid Day<br />
Good Friday<br />
Easter<br />
Easter Monday<br />
(Karume) Day<br />
Union Day<br />
May Day<br />
Sabasaba Day<br />
Nanenane Farmer's Day<br />
Eid El Fitr<br />
Nyerere Day<br />
Independence and Republic Day<br />
Eid El Haj<br />
Christmas Day<br />
Boxing Day<br />
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Appendix C – Main Annual Trade Exhibitions<br />
Note: Below is 2012-trade shows calendar. Prospective participants are advised <strong>to</strong><br />
double-check if interested with attending the same shows for the forthcoming years, as<br />
some of these shows happen annually while others happen infrequently.<br />
East African Trade Exhibition Fair<br />
Description:<br />
Date:<br />
Location:<br />
EATE attracts predominantly managing direc<strong>to</strong>rs, managers, design<br />
and production engineers, technical managers, purchasers and sales<br />
and marketing direc<strong>to</strong>rs from all key industry sec<strong>to</strong>rs. Important<br />
visi<strong>to</strong>r industry sec<strong>to</strong>rs include packaging, plastics, printing, food,<br />
agriculture, pharmaceutical, medical, I.T., Industries, textiles, paper<br />
and consumer. A <strong>to</strong>tal of 140 exhibi<strong>to</strong>rs from over 30 countries visit<br />
the leading exhibition for Multi-Sec<strong>to</strong>r Products & Machinery,<br />
Printing, Packaging & Plastics products, Food, Hotel & Agricultural<br />
products & machinery, Medical Equipment, I.T. & Electronic<br />
products as well as consumer products<br />
24 th <strong>to</strong> 26 th May<br />
Dar es Salaam<br />
Karibu Fair<br />
Description:<br />
Date:<br />
Location:<br />
Karibu is the leading travel trade event in East Africa. Originally<br />
created <strong>to</strong> promote <strong>Tanzania</strong>, it’s now a regional event that also<br />
features many products and delegates from Kenya, Uganda and<br />
Rwanda. Karibu’s major function is one of a relationship broker who<br />
targets, attracts and matches the needs of buyers and suppliers. Key<br />
participants include camping equipment, food suppliers, furniture<br />
providers, printing companies, safari gear providers, gems<strong>to</strong>ne<br />
suppliers, financial institutions, wine and spirit manufactures ad<br />
distribu<strong>to</strong>rs, vehicle distribu<strong>to</strong>rs, etc.<br />
31 st May <strong>to</strong> 2 nd June<br />
Arusha<br />
Dar es Salaam International Trade Fair (Saba-Saba)<br />
Description:<br />
Agricultural products - Food and Beverages. - Textiles, garments and<br />
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Date:<br />
Location:<br />
yarns. - Manufactured products. - Information and Communication<br />
Technology. - Construction materials - Au<strong>to</strong>mobiles - Electrical<br />
goods and appliances - Farm implements - Chemicals and cosmetics.<br />
- Timber and furniture - Trade services - Engineering products -<br />
Machinery - Computer software - Gift articles and handicrafts - Etc<br />
1st <strong>to</strong> 7th July<br />
Dar es Salaam<br />
Farmer’s Trade Show<br />
Description:<br />
Date:<br />
Agribusiness products and services<br />
1st <strong>to</strong> 8th August<br />
Location: 7 zones: Northern-Arusha, Eastern-Morogoro, Lake-Mwanza,<br />
Highland-Mbeya, Southern-Lindi and Songea, Western-Tabora, and<br />
Central-Dodoma<br />
Medipharm <strong>Tanzania</strong><br />
Description: Medical, Pharmacy, Surgical & Healthcare Products<br />
Date: 21 September 2012 <strong>to</strong> 23 September 2012<br />
Location:<br />
Dar es Salaam<br />
<strong>Tanzania</strong> Trade Show<br />
Description: House wares, Home Appliances & Household Consumables<br />
Date: 21 September 2012 <strong>to</strong> 23 September 2012<br />
Location:<br />
Dar es Salaam<br />
Buildint <strong>Tanzania</strong><br />
Description: Building Construction Material, Equipment and Sanitary ware<br />
Date: 21 September 2012 <strong>to</strong> 23 September 2012<br />
Location:<br />
Dar es Salaam<br />
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Appendix D – Sources of Further Information<br />
Prime Minister’s Office<br />
Magogoni Street<br />
P.O. Box 3021<br />
Dar es Salaam<br />
Tel. 255 22 2117249-58<br />
Fax: 255 22 2112850<br />
Website: www.pmo.go.tz<br />
Permanent Secretary<br />
Labour, Employment and Youth<br />
Development<br />
Hifadhi House, Azikiwe Street<br />
P.O. Box 1422,<br />
Dar es Salaam<br />
Tel. 255 22 2110889/2110877<br />
Fax: 255 22 211 3082<br />
Website: www.kazi.go.tz<br />
Permanent Secretary<br />
Ministry of Infrastructure Development<br />
P.O. Box 9144<br />
Dar es Salaam<br />
Tel: 255 222 122 268<br />
Fax: 255 222 122 079<br />
Email: permsec@infrastructure.go.tz<br />
Website: www.infrastructure.go.tz<br />
Permanent Secretary<br />
Ministry of Lands, Housing and<br />
Human Settlements Development<br />
Kivukoni Front<br />
P.O. Box 9132<br />
Dar es Salaam.<br />
Tel. 255 22 2121241-9<br />
Fax: 255 22 2124576<br />
Website: www.ardhi.go.tz<br />
Permanent Secretary<br />
Ministry of Finance<br />
P.O. Box 9111<br />
Dar es Salaam.<br />
Tel. 255 22 2111174-6<br />
Fax: 255 22 2110326<br />
Email: mof@mof.go.tz<br />
Website: www.mof.go.tz<br />
Permanent Secretary<br />
Ministry of Foreign Affairs and<br />
International Cooperation<br />
Kivukoni Front<br />
P.O. Box 9000<br />
Dar es Salaam<br />
Tel. 255 22 2111906/12<br />
Fax: 255 22 2116600<br />
Email: nje@foreign.go.tz<br />
Website: www.mfaic.go.tz<br />
Permanent Secretary<br />
Ministry of Industry, Trade and Marketing<br />
NSSF Waterfront Building<br />
P.O. Box 9503<br />
Dar es Salaam<br />
Tel. 255 22 22127871<br />
Fax: 255 22 22125832<br />
Email: mit@mit.go.tz<br />
Website: www.mit.go.tz<br />
Permanent Secretary,<br />
Ministry of Planning, Economy and<br />
Empowerment<br />
P.O. Box 9242<br />
Dar es Salaam<br />
Tel: 255 22 2112681/3<br />
Fax: 255 2115519/2116728<br />
Email: ps@plancom.go.tz<br />
Website: www.<strong>tanzania</strong>.go.tz/planning<br />
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Permanent Secretary<br />
Ministry of Justice & Constitutional<br />
Affairs<br />
Kivukoni Front<br />
P.O. Box 9050<br />
Dar es Salaam<br />
Tel. 255 22 2118178<br />
Fax: 255 22 2113236<br />
Email: dag@africaonline<br />
Permanent Secretary<br />
Ministry of Energy and Minerals<br />
Mkwepu Street/Sokoine Drive<br />
P.O. Box 2000<br />
Dar es Salaam<br />
Tel. 255 22 2117156-9<br />
Fax: 255 22 2116719<br />
Permanent Secretary<br />
Ministry of Health and Social Welfare<br />
P.O. Box 9083<br />
Dar es Salaam<br />
Tel: 255 22 2120261/7<br />
Fax: 255 22 2139951<br />
Website: www.moh.go.tz<br />
Email: moh@moh.go.tz<br />
Permanent Secretary<br />
Ministry of Lives<strong>to</strong>ck Development<br />
P.O. Box 9152<br />
Dar es Salaam<br />
Tel: 255 22 2861910<br />
Fax: 255 22 2861908<br />
Website: www.mifugo.go.tz<br />
Permanent Secretary<br />
Ministry of Natural Resources and<br />
Tourism<br />
P.O Box 9352<br />
Dar es Salaam<br />
Tel: 255 22 213 2302<br />
Fax: 255 22 211 3082<br />
Email: info@<strong>to</strong>urism<strong>tanzania</strong>.go.tz<br />
Website: www.<strong>to</strong>urism<strong>tanzania</strong>.go.tz<br />
Permanent Secretary<br />
Ministry of Agriculture, Food Security<br />
and Co-operatives<br />
P.O Box 9192<br />
Dar es Salaam<br />
Tel: 255 22 2862480<br />
Fax: 255 22 2862481<br />
Email: psk@kilimo.go.tz<br />
Website: www.kilimo.go.tz<br />
Permanent Secretary<br />
Ministry of Education and Vocational<br />
Training<br />
P. O. Box 9121<br />
Dar es Salaam<br />
Fax: 255 22 2113271<br />
Tel: 255 22 2120403/2120412<br />
Email: psmoevt@moe.go.tz<br />
Website: www.moe.go.tz<br />
Permanent Secretary<br />
Ministry of Water<br />
P.O. Box 9153<br />
Dar es Salaam<br />
Tel: 255 22 2450838/40/41<br />
Fax: 255 22 224514/64<br />
website: www.maji.go.tz<br />
email: psmwld@maji.go.tz<br />
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Permanent Secretary<br />
Ministry of East African Cooperation<br />
P.O. Box 9280<br />
Dar-es-Salaam<br />
Tel: 255 22 2126827/2126830<br />
Fax: 255 22 2126651<br />
Website: www.meac.go.tz<br />
Permanent Secretary<br />
Ministry of Home Affairs<br />
P.O. Box 9223<br />
Dar es Salaam<br />
Tel No: 255 22 2119050/2112036<br />
Fax: 255 22 2119050<br />
Website: www.moha.go.tz<br />
E-mail: permsec@moha.go.tz<br />
Governor<br />
Bank of <strong>Tanzania</strong> (BoT)<br />
Mirambo Street<br />
P.O. Box 2939<br />
Dar es Salaam<br />
Tel: 255 22 211 0945-51<br />
Fax: 255 22 211 7342 /211 9345<br />
E-mail: info@hq.bot-tz.org<br />
Website: www.bot-tz.org<br />
Direc<strong>to</strong>r General,<br />
<strong>Tanzania</strong> Ports Authority (TPA)<br />
P.O. Box 9184,<br />
Bandari road, Kurasini,<br />
Dar es Salaam<br />
Tel: 255 22 2110401/9 or 2117816<br />
Fax: 255 22 2113938 or 2113432<br />
Email: prm@<strong>tanzania</strong>ports.com<br />
Website: www.<strong>tanzania</strong>ports.com<br />
Managing Direc<strong>to</strong>r<br />
<strong>Tanzania</strong> Petroleum Development<br />
Corporation (TPDC)<br />
Executive Direc<strong>to</strong>r<br />
<strong>Tanzania</strong> <strong>Investment</strong> <strong>Centre</strong> (TIC)<br />
P.O. Box 938<br />
Dar es Salaam<br />
Tel: 255 22 211 6328-32<br />
Fax: 255 22 211 8253<br />
E-mail: information@tic.co.tz<br />
Website: www.tic.co.tz<br />
Chief Executive Officer<br />
Business Registration and Licensing<br />
Agency (BRELA)<br />
Cooperative Bldg, Lumumba Str<br />
P.O. Box 9393, Dar es Salaam<br />
Tel: 255 22 2180141/2180130<br />
Fax: 255 22 218 0371<br />
E-mail: usajili@intafrica.com<br />
Website: www.brela-tz.org<br />
Direc<strong>to</strong>r General<br />
<strong>Tanzania</strong> Bureau of Standards (TBS)<br />
Morogoro Road, Ubungo<br />
Dar es Salaam<br />
P.O. Box 9524<br />
Dar es Salaam<br />
Tel: 255 22 2450298/2450949<br />
Fax: 255 22 245 0959<br />
Website: http: www.tbs-tz.org<br />
Direc<strong>to</strong>r General<br />
<strong>Tanzania</strong> Food And Drugs Authority<br />
(TFDA)<br />
P.O. Box 77150<br />
Dar es Salaam<br />
Tel: 255 22 2450512, 2450751<br />
Fax: 255 22 2450793<br />
Email: info@tfda.or.tz<br />
Website: www.tfda.or.tz<br />
Chief Executive Officer<br />
Capital Market and Securities<br />
Authority (CMSA)<br />
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P.O. Box 2774<br />
Tel: 255 22 226452/2118535-6<br />
Fax: 255 22 2129663<br />
Dar es Salaam<br />
Email: tpdcmd@tpdc-tz.com<br />
Website: www.tpdc-tz<br />
Direc<strong>to</strong>r General<br />
<strong>Tanzania</strong> Tourist Board (TTB)<br />
P.O. Box 2485<br />
Dar es Salaam<br />
IPS Building,<br />
Azikiwe Street,<br />
Tel: 255 22 211 1244<br />
Fax: 255 22 211 6420.<br />
Website: www.<strong>tanzania</strong><strong>to</strong>uristboard.com<br />
Direc<strong>to</strong>r General<br />
TCRA<br />
Mawasiliano Towers,<br />
Mandela Road<br />
P.O Box 474 Dar es Salaam<br />
Tel: 255 22 2118947/52;<br />
0744720411<br />
Fax: 255 22 2116664<br />
E-Mail: dg@tcra.go.tz<br />
Website: www.tcra.go.tz<br />
Commissioner General<br />
<strong>Tanzania</strong> Revenue Authority (TRA)<br />
P.O. Box 11491<br />
Sokoine Drive Dar es Salaam<br />
Tel: 255 22 2119591-4<br />
Fax: 255 22 2126 908<br />
Email: info@tra.go.tz<br />
Website: www.tra.go.tz<br />
PPF Tower, Ohio Street/Garden Ave<br />
P.O. Box 75713<br />
Dar es Salaam<br />
Tel. 255 22 211 3903/211 4959-61<br />
Fax: 255 22 211 3846<br />
E-mail: cap-markets@cats-net.com<br />
Direc<strong>to</strong>r General<br />
Fair Competition Commission<br />
Ubungo Plaza<br />
Dar es Salaam<br />
P.O. Box 7883<br />
Dar es Salaam<br />
Tel: 255 22 2122479<br />
Fax: 255 22 2122449<br />
Commissioner of Insurance<br />
Insurance Supervision Department<br />
Ministry of Finance<br />
P.O. Box 9892<br />
Dar es Salaam<br />
<strong>Tanzania</strong><br />
Tel: 255 222 132 537/ 2 116 120<br />
Fax: 255 222 132 539<br />
Email: isd@africaonline.co.tz<br />
Website: www.isd.co.tz<br />
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Appendix E – <strong>Tanzania</strong> Missions Abroad<br />
<strong>Tanzania</strong> Consulate in Abuja, Nigeria<br />
<strong>Tanzania</strong> Consulate in Amsterdam, Netherlands<br />
<strong>Tanzania</strong> Consulate in Bangkok, Thailand<br />
<strong>Tanzania</strong> Consulate in Dhaka, Bangladesh<br />
<strong>Tanzania</strong> Consulate in Dubai, United Arab Emirates<br />
<strong>Tanzania</strong> Consulate in Istanbul, Turkey<br />
<strong>Tanzania</strong> Consulate in London, United Kingdom<br />
<strong>Tanzania</strong> Consulate in Luanda, Angola<br />
<strong>Tanzania</strong> Consulate in Manila, Philippines<br />
<strong>Tanzania</strong> Consulate in Melbourne, Australia<br />
<strong>Tanzania</strong> Consulate in Milan, Italy<br />
<strong>Tanzania</strong> Consulate in Mombasa, Kenya<br />
<strong>Tanzania</strong> Consulate in Nairobi, Kenya<br />
<strong>Tanzania</strong> Consulate in Otterup, Denmark<br />
<strong>Tanzania</strong> Consulate in Perth, Australia<br />
<strong>Tanzania</strong> Consulate in Rome, Italy<br />
<strong>Tanzania</strong> Consulate in Ruwi, Oman<br />
<strong>Tanzania</strong> Consulate in Seoul, South Korea<br />
<strong>Tanzania</strong> Embassy in Abu Dhabi, United Arab Emirates<br />
<strong>Tanzania</strong> Embassy in Addis Ababa, Ethiopia<br />
<strong>Tanzania</strong> Embassy in Beijing, China<br />
<strong>Tanzania</strong> Embassy in Berlin, Germany<br />
<strong>Tanzania</strong> Embassy in Brussels, Belgium<br />
<strong>Tanzania</strong> Embassy in Cairo, Egypt<br />
<strong>Tanzania</strong> Embassy in Comoro<br />
<strong>Tanzania</strong> Embassy in Geneva, Switzerland<br />
<strong>Tanzania</strong> Embassy in Harare, Zimbabwe<br />
<strong>Tanzania</strong> Embassy in Kampala, Uganda<br />
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<strong>Tanzania</strong> Embassy in Kigali, Rwanda<br />
<strong>Tanzania</strong> Embassy in Kinshasa, Congo - Republic of<br />
<strong>Tanzania</strong> Embassy in Lagos, Nigeria<br />
<strong>Tanzania</strong> Embassy in Lusaka, Zambia<br />
<strong>Tanzania</strong> Embassy in Mapu<strong>to</strong>, Mozambique<br />
<strong>Tanzania</strong> Embassy in Moscow, Russia<br />
<strong>Tanzania</strong> Embassy in New Delhi, India<br />
<strong>Tanzania</strong> Embassy in Ottawa, Canada<br />
<strong>Tanzania</strong> Embassy in Paris, France<br />
<strong>Tanzania</strong> Embassy in Pre<strong>to</strong>ria, South Africa<br />
<strong>Tanzania</strong> Embassy in Riyadh, Saudi Arabia<br />
<strong>Tanzania</strong> Embassy in Rome, Italy<br />
<strong>Tanzania</strong> Embassy in S<strong>to</strong>ckholm, Sweden<br />
<strong>Tanzania</strong> Embassy in Tokyo, Japan<br />
<strong>Tanzania</strong> Embassy in Washing<strong>to</strong>n, D.C., United States<br />
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Appendix F – Foreign Missions in <strong>Tanzania</strong><br />
Algeria Germany Malawi<br />
Angola Ghana Mali<br />
Australia Greece Mexico<br />
Austria Guyana Mongolia<br />
Bangladesh Holy See (Vatican) Morocco<br />
Belgium Hungary Mozambique<br />
Botswana Iceland Namibia<br />
Burundi India Nepal<br />
Cameroon Indonesia Netherlands<br />
Canada Iran New Zealand<br />
China Ireland Nicaragua<br />
Cote D'Ivoire Israel Niger<br />
Cuba Italy Nigeria<br />
Cyprus Jamaica Norway<br />
Czech Republic Japan Oman<br />
Denmark Kenya Palestine<br />
Democratic Republic of Congo North Korea Poland<br />
Egypt South Korea Portugal<br />
Eritrea Lesotho Romania<br />
Ethiopia Liberia Russia<br />
Finland Libya Rwanda<br />
France<br />
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Appendix G – <strong>Tanzania</strong> Africa Map<br />
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