TANZANIA INVESTMENT REGULATIONS

TANZANIA INVESTMENT REGULATIONS Introduction On 21st July, 2023, the Parliament of Tanzania passed the Tanzania Investment Regulations, GN No. 477 of 2023 which has the following important parts; i) Responsibilities of the Board of the Tanzania Investment Centre (the Board). ii) Implementation of functions of the National Investment Steering Committee (NISC) and Technical Committee. iii) Procedures for submitting various matters before NISC. iv) Certificate of incentives, rehabilitation and expansion. v) Promotion, facilitation and coordination of investment matters. vi) One stop Centre vii) Appeals Responsibilities of the Board According to Regulation 3, the Board is responsible for reviewing the functions of the Tanzania Investment Centre (the Centre), monitor the national investment situation, submit to the Minister the activities of the Centre and approve codes of ethics.

The Regulations impose a requirement for the quorum of the Board at the meeting which shall be not less than five members, (R.6) and where the consensus decision is not met, the members shall vote, (R. 7) and any act done by the Board shall be valid notwithstanding that there was a defect in the appointment of a Board Member before the effect. (R.9) Implementation of functions of NISC NISC The Regulations provide that NISC may build a common understanding in facilitating matters relating to investment, issue directives in removing obstacles, receive and deal with complaints and receive directives and approve major projects.

(R.13) Technical Committee To ensure the efficiency in the investment sector, the Regulations list the members of the Technical Committee as follows: the Permanent Secretary of the Ministry responsible for investment (Chairman), Deputy Permanent Secretary of the Ministry of Finance (Vice Chairman), Commissioner for policy analysis, Commissioner for Land, Director of Contract and Treaties, Commissioner for large tax payers, Director of investment development, Director of industry development. The functions of NISC shall be to receive and process various matters aiming at improving investment, receive and process applications for additional benefits. (R.

14) Procedures for submitting matters before NISC In order to increase efficiency and speed up approvals, the application for strategic and special strategic investment shall be submitted to the Secretary of NISC by completing a prescribed form, accompanied with the following documents; a) a copy of certificate of incentives, b) analysis of the project showing actual costs, profits and benefits, c) brief statement showing key issues of investors’ application etc. (R.19) Certificates of Incentives, Rehabilitation and Expansion Regarding the application of the certificate of incentives shall be accompanied by proof of payment of the prescribed fees. The Centre shall process the application where it may accept and certify the business or reject and notify the applicant (R. 20). When obtained, the certificate of

incentives become a conclusive evidence that all the requirements of the act and the Regulations were followed. (R.21) The Regulations provide allow the extension of the certificate of incentives before its expiry provided justifiable reasons are provided to the Centre. The Centre shall process the application while considering if there were delays in the process of acquiring land, capital or permits and thereafter communicate the decision in writing. (R.25) However, where there is a reason to revoke the certificate of incentives, the Regulations have provided the procedures to do so; whereby the Center shall notify the holder of the certificate to rectify the anomalies and where the holder fails to remedy the anomalies, the Center shall issue seven days’ notice of intention to revoke and the reasons.

The holder of certificate is required to submit his defense and if the defense is not accepted by the Center, the Center shall revoke the certificate. (R.26) It is worth noting that, the Tanzania Investment Act retains the restriction of applicability of the certificate of incentives to the extractive sector, the Regulations have established a different category of certificate of incentives which can be issued to mining companies to enable such mining companies to enjoy the following benefits: (a)guarantee of transfer of capital, profits and dividends; and (b)guarantees against expropriation. As it can be noted, the above benefits are applicable to all businesses in Tanzania whether or not such businesses qualify to hold the certificate of incentives.

One Stop Centre In the facilitation of the implementation of its objectives, the Tanzania Investment Act imposed the requirement for a one stop center where all Government ministries, departments and agencies work closely with TIC (S.18 (4)). The Regulations have provided the functions of the stationed officers at TIC whereby the Land officers shall be responsible to make fast track arrangements with respect to land by receiving, processing applications and advice the Executive Director, the labor and immigration officers at the Center with the intention of helping the investors to secure work and residence permits; while other Government officers stationed at the Center shall assist the investors in getting other licences and permits from different Government institutions (R. 31-33).

Appeals On the other hand, the Regulations have provided for the right of appeal to the person dissatisfied with the rejection of the application and revocation of the certificate of incentives whereby they may appeal by writing a letter to the Minister within twenty-one days after the date of decision and the Minister can confirm, reverse or vary the decision or give directives in respect of the decision of the Center. The Minister’s decision is final (R. 35). Also, the Investor who is not satisfied with the decision of NISC, the Investor may apply for a review to the Minister. Disclaimer The views expressed in this paper are those of the author only and should not be considered as an official interpretation, defamatory or interference of any legislation, laws or policies of any country including Tanzania.

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