OECD Investment Policy Reviews: Tanzania 2013

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This review of investment policy in Tanzania evaluates the current policy situation and makes recommendations for  enabling Tanzania to attract higher investment to exploit its full potential and become a regional trade and investment hub. The review finds that while private investment in Tanzania has considerably risen since the early 1990s, further progress can be made to improve the business climate and attract more investment in key sectors, such as infrastructure and agriculture.

Informed by the subsequent chapters of this report, this overview provides policy options to address these challenges. In particular, investors’ rights and obligations could be rationalised and made more accessible and regulations on foreign investment and investment incentives reviewed. The land legislation could be revised and land rights registration accelerated, notably by providing stronger incentives for registration. The short-term and long-term costs and benefits of the regulatory restrictions imposed by crop boards and of export bans could be closely analysed.



Executive summary

Tanzania’s legal regime for investment had opened up considerably to foreign investors by the mid-1990s with the passage of the 1996 National Investment Promotion Policy and the 1997 Tanzania Investment Act (TIA). The establishment of the Tanzania Investment Centre in 1997 was another stride in building a more efficient framework for business establishment. More recently, the Government Roadmap for Improving the Investment Climate was launched in 2009 with the stated aim of improving Tanzania’s overall Doing Business ranking from three digits performance to two. Government has also sought to attract investment into specific sectors, including agriculture with the Kilimo Kwanza (“Agriculture First”) strategy and the development of the Southern Agricultural Growth Corridor (SAGCOT). Government now plans to review its Investment Promotion Policy and Investment Act so as to tackle remaining challenges, which are manifold.


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