TIC records rise in domestic investments
DAR ES SALAAM: TANZANIA has recorded a significant increase in domestic investments in the just ended financial year, compared to the previous year.
The growth is attributed to improvement in the business environment and intensive promotion of incentives by the Tanzania Investment Centre (TIC).
Speaking yesterday in Dar es Salaam during a meeting with local investors, TIC’s Executive Director, Mr Gilead Teri said in the justended 2023/2024 financial year, registration of domestic investment reached 38 per cent from only 10 per cent recorded in the 2022/2023 financial year.
Mr Teri (pictured) said in the last financial year, TIC He attributed the notable increase in domestic investments to President Dr Samia Suluhu Hassan’s unwavering leadership, which among others, contributed to the enactment of the new Investment Act of 2022 and improvement of the One Stop Facilitation Centre.
He highlighted that the new Investment Act reduced investors’ capital threshold to 50,000 US dollars (133m/) from 100,000 US dollars (267m/-), a situation that enables more Tanzanians to qualify for being registered registered 707 projects worth 7 billion US dollars (about 19tri/-) in comparison to 369 projects worth 5.4 billion US dollars (14tri/-) recorded in the 2022/2023 financial year, equivalent to 91 per cent rise in investments.
According to him, 43 per cent of all projects were Foreign Direct Investments (FDIs) while 19 per cent were joint ventures by the centre.
“Currently, it is 10 times easier for a Tanzanian to invest in the country compared to a foreign investor. As a result, we are seeing surging in number of domestic investments in such an unprecedented scale,” Mr Teri said.
Adding “This is what President Samia wants… she wants Tanzanians to be owners of their own economy and be part of investment story in their own country.
TIC is more than committed to ensure this dream is realised.” He noted that the foreign investor’s capital threshold for being registered at the centre is 500,000 US dollars (1.3bn/-).
Mr Teri emphasised that there are tremendous incentives, including import duty exemption on deemed capital goods for both local and foreign investors who registered their projects to the TIC.
Deemed capital goods encompasses equipment for running factories.
More significantly, Mr Teri said the TIC through the One Stop Facilitation Centre which puts together fourteen government entities for investment project registration under one umbrella has cut considerably the time spent for setting business in Tanzania.
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The One Stop Facilitation Centre is a place designated by TIC for an investor to obtain permits, approvals, licence and information using the centre’s stationed officers from various integrated government authorities including the Tanzania Revenue Authority (TRA) and Business Registration and Licensing Authority (BRELA).
Generally, he said TIC targets to register 1,000 projects worth 10 billion US dollar (about 27tri/-) by December 2024 TIC.
Mr Teri said investments are crucial in creating jobs, generating foreign currency and government’s revenue, fostering innovation as well as stimulating transfer of technology.
Earlier, TIC’s Research and Planning Manager, Ms Anna Lyimo said in the last financial year, the centre conducted a National Domestic Investment Campaign which was extended to 18 regions across the country to raise awareness on investment to citizens.
“As I speak, the second phase of the campaign is underway in Bariadi District, Simiyu Region,” she said.
Also, she said the TIC organised a total of 19 investment exhibitions which attracted turnout from both domestic and foreign investors.
On monitoring the progress of the projects, Mr Lyimo said the TIC in the just ended FY have had a follow up to 2,411 projects through outreach programmes including visits and evaluating their progress report submitted at the centre.
