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.



Investment policy in Tanzania

Tanzania’s legal regime for investment became considerably more open to foreign investors in the mid-1990s. However this legal framework still remains quite complex, and to some extent outdated. The investment climate could for instance be substantially improved by updating the legal framework for international commercial arbitration, and strengthening mechanisms for enforcing intellectual property rights. In addition access to land, and arbitration mechanisms for land disputes, are very complex and constitute a prohibitive barrier to private investment by both foreign and domestic enterprises. Clarity for investors is also limited by the fact that regulations on foreign investment by sector are dispersed over several different legal instruments, and by weak enforcement and implementation of the investment policy framework. Nonetheless there is significant scope for Tanzania to build on several ongoing policy reforms and initiatives, as highlighted in this chapter.


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