INVESTORS’ GUIDE TO TANZANIA TANZANIA WELCOMES YOU THE ECONOMY Since 1986 , Tanzania has been implementing a series of BASIC DATA recovery and adjustment programmes with the support of LAND AREA :947.087 sq.km. World Bank and IMF. POPULATION:31.0 million(1999est) POPULATION GROWTH RATE: 2.8% per annum The Government has withdrawn from business. The tax CURRENCY:Tanzania shilling:Tshs800=US£1 (2000) system has been simplified and strengthened, public Official Language: Kiswahili&English spending reorganised, inflation lowered and the exchange MAIN EXPORT: Coffee, Cashewnuts, Tobacco, Cotton, Tea, rate stabilised. Individuals can move the capital freely in and Manufactured Goods and Minerals out of the country.All aspect of the economy have been CAPITAL CITY: Dodoma liberalised. Restriction on trade, foreign exchange rates, COMMERCIAL CITY: Dar-Es salaam private investments, private banking and interest rates now GDP PER CAPITAL:USD 276.6 belong to the past. The reform programme is resolutely GROWTH RATE: 4.0% ( 1998) market oriented and private sector investor friendly.The LITERACY RATE:85% Government has in place a new investment policy TIA 1997 which was formulated to replace old National Investment THE LAND Promotion and Protection Policy with the aim of creating The United Republic of Tanzania which includes the Island better and conducive Investment climate. Tanzania has also of Zanzibar and Pemba lies on the East coast of Africa. It embarked on other measures to improve investment climate has a common border with eight countries: Kenya and and some of which are as follows. Uganda to the north; Rwanda Burundi and Congo to the west; Zambia,Malawi and Mozambique to the south. ! Anacted latest mining Act 1998 and Land Act 1999 , Tanzania boasts the highest mountain in Africa, Mount PetroleumAct 1980. KILIMANJARO (5895m above sea level), a highland ! Adopted integrated road rehabilitation program with the plateau, several inland water ports on three Great lakes and a World Bank TANZANIA :YOUR INVESTMENT coastline of 800 kilometres bordering the Indian Ocean. DESTINATION IN SUB- SAHARAN AFRICA ! Initiated Privatisation programme with the GOVERNEMENT establishment of the Presidential Parastatal Reform « Policies are in place for Tanzania to become a major Mainland Tanzania gained independence in December 1961 Commission PSRC ( 1993 ). investment destination in the whole of sub-Saharan Africa. While Zanzibar gained Independence in January 1964 All economic sectors are open to foreign direct investors through a revolution. The two countries united to form the WHY SHOULD YOU INVEST IN TANZANIA: including banking and Insurance. The economy is picking United Republic of Tanzania in April, 1964.Tanzania up as Tanzania follows the reform programme started in adopted a multi–party political system in July 1992 the 1986 with the support of the World Bank and IMF. ♦ Tanzania is a sizeable country in Africa and enjoys country maintains an excellent record of politically stability Special efforts have been directed at the tourism, mining, excellent geographical location with a diverse and has held successful general elections in both 1995 and construction and energy sectors. These are now at centre investment opportunities. 2000. stage , along with on going efforts to transform agriculture ♦ Is a gateway to East and Central Africa. Six Land Tanzania is a member of the United Nation, UNIDO, the from subsistence farming to a modern commercial locked countries have access to Tanzania Ports. World Bank, the IMF, the Commonwealth, the non-aligned industry”. ♦ A sizeable domestic and Sub regional market with a Movement, SADC, PTA, and the ADB. Quoted from The President of UNITED REPUBLIC OF wide local raw material supply. It is also a signatory to the Lome Convection.; TANZANIA, BENJAMIN WILLIAM. MKAPA. ♦ Enjoys abundance of natural wealth which offers: " Favarouble investment allowances and i) Tremendous Investment opportunities in deductions(100%) on Industrial Buildings, Plant & PROJECT OPPORTUNITIES : agriculture, mineral and energy resources Machinery and on Agriculture expenditure. i) Portfolio of 25 project opportunities in various ii) A land of spectacular natural beauty with " Deferment of VAT payment on project capital assets. sectors mount Kilimanjaro rising to the North and " Import duty drawback on raw materials ii) Studies in Textile and Leather Industry the National Parks and Game Reserves " Zero ratedVAT on manufactured exports iii) Fruits and vegetables sector opportunities covering one-seventh of the country. " Straight line accelerated depreciation allowance on iv) Food Industries studies and program available There are the home of the largest wild animals population capital goods. in the world " Yearly appreciation of unrecovered capital ORGANISATIONS TO ASSIST YOU ♦ It has in-inexpensive and un-exploited labour investment in mining. ♦ It offers the package of incentives to investors " five year carry- over of all business losses against In TANZANIA future profits ♦ Allows unconditional transfer of capital and profits The executive Director, " A reasonable corporate tax rate (30%) and low ♦ It enjoys political stability with a suitable market policy withholding tax rates on dividends (10%)and on loan Tanzania Investment Centre . interest (0%) Plot no; 9A&B, INVESTMENT OPPORTUNITIES " The right to transfer outside the country(100%) of Shabaan Robert Street, Tanzania under the new anacted investment code TIA 1997 foreign exchange earned, profits and capital P.O Box No 938, has been able to identify and categorize investment " Automatic permit of employing 5 foreign nationals on Dar-Es-Salaam, opportunities into Lead and Priority sectors : the project holding certificate of incentives. TANZANIA • LEAD SECTORS : Mining, Infrastructure,(e.g . " Reduced import tariffs on project capital items.5% Tél: 255 22 2113365/ Road Construction, Bridges, Air ports, Generation of import duty for investment in Priority areas and 116328-32 Fax: 255 22 2118253 Electricity, Telecommunications, Water Services, Back- zero% for investment in Lead sectors up services to Mining and the Like) and Export Email:firstname.lastname@example.org Processing Zone. TANZANIA INVESTMENT CENTRE • PRIORITY SECTORS : Agriculture including Tanzania Investment Centre(TIC) is a one stop agency of livestock, Air Aviation, Commercial Buildings, the government of Tanzania established under the Tanzania Commercial Development and Micro finance Banks, Investment Act NO26 of 1997 to promote, co-ordinates and In FRANCE Export processing , Geographical special development facilitate investment into Tanzania. The centre is a focal areas, Human resources development, Manufacturing, point for all investors and performs all liaison work for the Natural resources,including fishing, Rehabilitation and investor from enquires right up to project start up. The Expansion, Radio and Television broadcasting, centre deals with all enterprises whose minimum capital Tourisim and tour Operation. investment is not less than US§ 300000 (Fr 2,700,000) foreign owned and US§ 100000 ( Fr700,000) if local owned INVESTMENT BENEFITS AND INCENTIVES .Enterprises engaged in Mining , and Petroleum , shall Nakuala SENZIA, Tanzania offers a well balanced package of incentives follow the approval process contained in their respective laws.But the centre shall assist all investors to obtain Tanzania delegate in France which have been spelt out under TIA 1997to investors who have chosen Tanzania as their investment destination. permits, authorisation etc. required by other laws to set up 9 ,rue ND des Victoires " Investment Guarantees and Settlement of and operate investment in Tanzania. 75002, Paris FRANCE disputes: Investment in Tanzania are guaranteed Tél: 01 44 55 05 17 against nationalisation and expropriation.Tanzania Fax: 01 49 26 97 26 is a member of both the International centre for Email: email@example.com Settlement of Investment Disputes( ICSD)and Multilateral Investment Guarantee Agency (MIGA ).