Govt reshapes laws to attract tech investment

DAR ES SALAAM: THE government is reshaping its investment laws around artificial intelligence and the digital economy, seeking to attract technology-driven businesses and strengthen its position as a competitive destination for global investors.

The legal reforms, which will cover legislation governing digital financial transactions, electronic commerce, company operations and public-private partnerships (PPPs), are intended to provide greater regulatory certainty for businesses while improving the investment climate, Constitution and Legal Affairs Minister Juma Homera said.

“As the global economy becomes increasingly digital, Tanzania must ensure that its legal framework evolves accordingly,” Homera said in an interview on the sidelines of the Africa50 General Shareholders Meeting in Dar es Salaam. “We are reviewing our laws so they support innovation, investment and the use of emerging technologies, including Artificial Intelligence.”

The reforms come as governments across Africa compete to attract technology firms and digital infrastructure investment by updating regulations to accommodate AI, fintech and e-commerce while balancing innovation with consumer protection.

Homera said the review includes the Public-Private Partnership Act, the Companies Act and financial legislation to facilitate digital transactions, support electronic commerce and improve the legal environment for technology-enabled businesses.

Legal certainty has become increasingly important for investors as businesses rely more heavily on digital platforms for payments, trade and service delivery, he said, adding that the government aims to establish regulations that encourage innovation while safeguarding both investors and consumers.

The legal review forms part of Tanzania’s broader Vision 2050 strategy, which envisages the private sector implementing more than 78 per cent of the country’s long-term development agenda through increased investment and public-private collaboration.

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Homera said Tanzania is also studying countries that have successfully integrated digital payment systems into their economies, citing gains in revenue collection, financial inclusion and business efficiency as lessons that could support the country’s digital transformation.

Beyond legislative reforms, the government plans to strengthen digital skills and artificial intelligence capabilities to ensure Tanzanians are equipped to participate in an increasingly technology-driven global economy.

Homera said the government has also begun translating laws into Kiswahili to improve public access to justice, while the wider legal overhaul is expected to remove regulatory bottlenecks, improve the ease of doing business and create a more predictable environment for domestic and foreign investors.

The reforms underscore Tanzania’s effort to modernise its legal framework as digital technologies reshape investment, commerce and public services across the continent.