Investment reforms loom large
DODOMA: THE National Assembly yesterday passed the Investment and Special Economic Zones Bill, 2024 by introducing significant changes to investment matters.
Among the changes, it includes merging the Tanzania Investment Centre (TIC) and the Export Processing Zones Authority (EPZA).
Following the merger of TIC and EPZA, a new entity known as the Tanzania Investment and Special Economic Zones Authority (TISEZA) is now formed. The authority will serve as a one-stop centre for investors, meaning that all investments will fall under one authority. The passed Bill repeals the previous acts—the Tanzania Investment Act, 2022 and the Special Economic Zones Act, 2002
Tabling the Bill in Parliament, the Minister of State in the President’s Office (Planning and Investment) Prof Kitila Mkumbo said the legislation introduces significant reforms aimed at enhancing the country’s investment climate.
The Bill creates a structure that centralises investment facilitation. For instance, for the manufacturing investors, the Bill streamlines services such as licensing, land acquisition and permits issuance. The Bill also obliges all investments in the country to be registered at TISEZA to allow the newly formed authority to have accurate data on the investments in the country.
The Bill passed also mandates an integrated electronic system linking all authorities involved in licensing, permits and clearances. This technology-driven approach already exists and is functioning within the Tanzania Investment Centre. Therefore, building on what already exists can improve transparency and efficiency, ensuring timely support for manufacturers who often require precise coordination of multiple regulatory approvals.
Furthermore, the Bill guarantees equal opportunities for foreign investors and protects their rights against expropriation, fostering trust. It also places a number of obligations on investors such as sourcing local raw materials to promote integration with domestic industries.
The Bill also establishes structured mechanisms for complaints handling and dispute resolution, providing assurance to investors.
The Bill also focuses on incentivising investors that will be exporting products outside the country. It also gives mandate to TISEZA to identify land for establishing land bank.
The focus of the Bill, coupled with fiscal incentives and streamlined processes, positions the country as an attractive destination for manufacturing investments.
By encouraging foreign direct investment and partnerships, the passed Bill facilitates the transfer of advanced manufacturing technologies, boosting productivity, innovation and local ownership.
The new Bill aligns Tanzania with regional peers like Kenya and Ethiopia, which have successfully leveraged Special Economic Zones (SEZs) to attract global manufacturing firms.
The Bill also establishes the National Investment Development Committee and the board of the authority.
Legislators, who contributed to the Bill, called for proper adherence to land laws when acquiring land to be included into the land bank. According to the Bill, individuals are allowed to offer their land to TISEZA under a special arrangement.
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Charles Mwijage (CCM-Mwibara) called for ensuring that TISEZA is served by staff members who are conversant in foreign languages, considering the fact Tanzania receives a considerable number of foreign investors.
Deputy Speaker Mussa Zungu said the Bill is important for the nation, given the fact that investments play an integral role in fostering the country’s economic growth.
“We, the Tanzanian people, should not be afraid of changes. This Bill is very important for the country. Without investments, the country cannot reach anywhere,” Mr Zungu said.
