YOUR INVESTMENT GUIDE TO TANZANIA
Investment Incentives in Tanzania: Unlocking Opportunities for Growth
Tanzania offers a range of attractive incentives for investors, designed to foster a business-friendly environment and encourage both foreign and domestic investments. These incentives span across various sectors and provide substantial benefits, making Tanzania a key destination for businesses looking to tap into East Africa’s growing markets.
Streamlined Facilitation through the TIC One-Stop Centre
The Tanzania Investment Centre (TIC) serves as a centralized hub for obtaining permits, licenses, and approvals, significantly reducing the bureaucratic hurdles for investors. The TIC One-Stop Facilitation Centre streamlines the process, offering efficient support for setting up and operating businesses in Tanzania.
Robust Protections and Risk Mitigation
Tanzania provides strong protections for investors, including the safeguarding of private property and coverage against non-commercial risks. As a member of the World Bank’s Multilateral Investment Guarantee Agency (MIGA) and the International Centre for Settlement of Investment Disputes (ICSID), Tanzania ensures that investments are secure and disputes are resolved transparently.
Tax and Duty Incentives for Capital Goods and Manufacturing
To encourage investment in key sectors, Tanzania offers a 0% import duty on project capital goods, computers, raw materials, and parts used in agriculture, livestock, and fishing, as well as motor vehicles in Completely Knocked Down (CKD) form. Additionally, items such as plant and machinery used in manufacturing, fish farming, and hospitality services benefit from deferred VAT and favorable capital allowances, enabling investors to reduce their initial costs.
Sector-Specific Benefits for Mining and Agriculture
The mining and agricultural sectors receive substantial incentives, including a 100% capital allowance on qualifying investments. Investors in these sectors can also benefit from VAT exemptions and other tax advantages that enhance profitability and encourage long-term growth.
Excise Duty and VAT Reliefs
Eligible businesses can reclaim excise duty on fuel through a pay-and-refund system, reducing operational costs. Additionally, exports benefit from zero-rated VAT, while deemed exports—goods sold to foreign entities operating within Tanzania—are also eligible for duty refunds and exemptions.
Simplified Import Duty on Hotel Equipment
Investors in the tourism and hospitality sector benefit from a 0% import duty on essential hotel equipment under the EAC Customs Management Act. Items such as kitchenware, washing machines, fridges, air conditioning systems, and more can be imported duty-free, provided they bear the hotel’s logo. This supports the growth of high-quality hospitality services in Tanzania’s thriving tourism industry.
Flexible Foreign Exchange and Profit Repatriation
Investors enjoy the right to transfer 100% of their foreign exchange earnings, profits, and capital outside the country, ensuring financial flexibility and security. Additionally, projects with TIC incentives automatically receive approval to hire up to five foreign experts, further supporting smooth operations.
Maximizing Export Competitiveness
Tanzania supports export-oriented businesses with import duty drawbacks on raw materials used in manufacturing goods for export. These measures make it easier for businesses to compete globally while benefiting from favorable local production conditions.
Establishing your footprint in Tanzania
With its attractive investment incentives, streamlined processes, and robust legal protections, Tanzania offers a compelling environment for businesses seeking growth in East Africa. Whether you’re venturing into manufacturing, agriculture, tourism, or services, Tanzania’s strategic location and supportive government policies make it an ideal choice for your next investment.
