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Viewing cable 06DARESSALAAM63, TANZANIA: INVESTMENT CLIMATE STATEMENT 2006

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Reference ID Created Released Classification Origin
06DARESSALAAM63 2006-01-18 03:52 2011-08-25 00:00 UNCLASSIFIED Embassy Dar Es Salaam
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 08 DAR ES SALAAM 000063 
 
SIPDIS 
 
DEPT FOR EB/IFD/OIA 
ALSO AF/EPS FOR M NORMAN AND AF/E FOR B YODER 
DEPT PASS TO USTR FOR W JACKSON 
CIMS NTDB WASHDC 
 
E.O. 12958: N/A 
TAGS: EINV EFIN ETRD ELAB KTDB TZ PGOVPZ OPIC USTR
SUBJECT: TANZANIA: INVESTMENT CLIMATE STATEMENT 2006 
 
REF: 05 STATE 0201904 
 
----------------------------- 
OPENNESS TO FOREIGN INVESTMENT 
------------------------------ 
1. The Government of Tanzania has taken significant steps to 
encourage foreign investment by creating an attractive 
package of incentives for investors and easing bureaucratic 
requirements. As a result, Foreign Direct Investment (FDI) in 
Tanzania has increased steadily in the last five years. 
Tanzania is formally open to foreign investment in all 
sectors, although a successful investor must overcome many 
procedural barriers. 
 
2. The Tanzania Investment Center (TIC), established by the 
Tanzania Investment Act of 1997, is a focal point for all 
investors and performs all liaison work such as answering 
inquiries and facilitating project start-up. Tanzania was 
named Africa's best investment promoter at the Africa 
Investment Promotion Agencies 2004 competition, where the TIC 
received the first prize among 48 African countries that took 
part. The TIC provides certificates of incentives on approved 
projects that have a minimum investment of USD 300,000 if 
foreign owned and USD 100,000 if locally owned.  In 2004, TIC 
registered 454 investment projects (worth over USD 1 
billion), up from 372 in projects in 2003. 
 
3. The priority sectors for investment, as identified by TIC, 
are: mining, petroleum and gas, tourism, infrastructure 
development, aviation, agriculture, construction, financial 
services, and manufacturing. Investment in other sectors is 
not restricted. Foreign firms can participate in 
privatization programs without restriction.  There is no 
limit on foreign ownership or control, though land ownership 
remains restricted. TIC services are provided to local and 
foreign investors without discrimination, though a variety of 
regulatory fees are higher for foreign firms than for local 
firms. Remaining obstacles to foreign investment include 
bureaucratic intransigence, corruption and poor 
infrastructure. 
 
4.  Zanzibar, consisting of two islands off the coast of 
Tanzania with a semi-autonomous government, controls its own 
investment policies and maintains the Zanzibar Investment 
Promotion Agency (ZIPA). Like the mainland, Zanzibar aims to 
create a welcoming environment for foreign investors and 
provides similar incentives. 
 
-------------------------------- 
CONVERSION AND TRANSFER POLICIES 
-------------------------------- 
5.  Regulations continue to permit the unconditional transfer 
through any authorized bank in freely convertible currency of 
net profits, repayment of foreign loans, royalties, fees, 
charges in respect of foreign technology, and remittance of 
proceeds. The only official ceiling on transfers of foreign 
currency apply to cash carried by individuals traveling 
abroad, which should not exceed USD 10,000 over a period of 
forty days. Tanzania occasionally experiences shortages of 
foreign exchange, but this problem has been eased 
considerably by the growth of Bureau de change returns. 
Bureaucratic hurdles continue to impact the length of time it 
takes to process and effect a transfer, which can range from 
days to weeks. 
 
------------------------------ 
EXPROPRIATION AND COMPENSATION 
------------------------------ 
 6.  Since 1985, the government of Tanzania has not 
expropriated any foreign investments. 
 
------------------ 
DISPUTE SETTLEMENT 
------------------ 
7.  Tanzania is a member of both the International Center for 
the Settlement of Investment Disputes (ICSID) and the 
Multilateral Investment Guarantee Agency (MIGA). About five 
years ago the Tanzania Institute of Arbitrators (TIA) was 
established in accordance with the Tanzania arbitration law. 
This domestic arbitration body has proven to be inefficient, 
and most disputes end up at the ICSID. The Government of 
Tanzania established a Commercial Court in September 1999. 
The Commercial Court is a division of the High Court of 
Tanzania and, in principle, provides a place for speedy, 
efficient and commercially aware litigation of commercial 
disputes. While the Commercial Court has helped to speed up 
some commercial cases, the court system continues to be 
plagued by inefficiency and corruption. The few recent 
disputes involving U.S. firms have shown that it is difficult 
to enforce external arbitration awards within Tanzania. 
Disputes with the Government of Tanzania are generally 
resolved only after much effort and time. 
 
--------------------------------------- 
PERFORMANCE REQUIREMENTS AND INCENTIVES 
--------------------------------------- 
8.  According to the National Trade Policy (February 2003), 
the Tanzanian government intends, in the course of future WTO 
Trade-related Investment Measures (TRIMS) negotiations, to 
adopt measures related to equity requirements, local content 
requirements, technology transfer and export performance as 
necessary conditions for a Least Developed Country to 
expedite socioeconomic development. Currently, however, 
Tanzania has not introduced such measures. 
 
There is no requirement that specifies that local investors 
must hold a certain percentage of a firm's equity or that the 
share of foreign equity be reduced over time. The government 
does not require investors to purchase from local sources nor 
require local content in exports. The government does not 
impose any "offset" requirements with respect to approval of 
major procurements. Only companies operating in Export 
Processing Zones (discussed below) are required to export a 
certain percentage of goods produced. 
 
9.  The Tanzania Investment Center (TIC) offers assistance in 
the establishment of enterprises and provides facilitation 
services for required permits and licenses for both local and 
foreign investors. TIC issues the formal Investment 
Certificate of Incentives, which serves as the official 
recognition of one's status in the country. TIC serves as a 
one-stop government liaison for investors from inquiry stage 
right up to project start and all Government departments and 
agencies are required by law to cooperate fully with TIC in 
facilitating investors. 
 
10.  Tanzania offers a well-balanced package of investment 
benefits and incentives that are applied uniformly to all 
investors (domestic and foreign investors) and systematically 
as specified by law (the Tanzania Investment Act, 1997 No. 26 
of 1997). These incentives include: 
 
-- Zero Customs Duty and deferred VAT on capital goods for 
investments in targeted sectors: mining, export processing 
zones, infrastructure, road construction, bridges, railways, 
airports, generation of electricity, telecommunications, and 
water services. 
 
-- Five percent Customs Duty and deferred VAT on capital 
goods for other sectors:  livestock, aviation, commercial 
buildings, commercial development and micro finance banks, 
export oriented projects, geographical special development 
areas, human resources development, manufacturing, natural 
resources including fisheries, rehabilitation and expansion 
projects, tourism and tour operators, transport, radio and 
television broadcasting. 
 
-- Exemption from corporate income tax for up to five years. 
 
-- Income tax benefits such as: allowing interest deduction 
on capital loans; removal of the 5-year limit for carrying 
forward losses; 100 percent capital allowance deduction in 
the years of income for targeted sectors. 
 
-- Further incentives for companies with EPZ status 
(discussed below). 
 
11.  The Export Processing Zone (EPZ) Act has enabled the 
establishment of EPZs throughout the country. EPZ incentive 
packages are managed by the National Development Corporation 
(NDC), independently from TIC. The government has established 
one EPZ business park for the purpose of attracting export 
industry investment, but EPZ benefits do not depend on 
location in a specific geographical area. Rather EPZ status 
reflects unique benefits offered to export industries. EPZ 
companies must export at least 70 percent of goods produced, 
and export at least USD 100,000 to qualify to apply for EPZ 
status. EPZ status is available to both domestic and foreign 
investors, but is currently limited to "new export 
companies," thus excluding established exporters from 
benefiting. 
 
12.  Companies investing within the EPZ park have access to 
ready-made buildings and reliable infrastructure, which 
limits the need for large capital investments in 
infrastructure. The EPZ policy places emphasis on products 
that use local materials such as textiles and garments, 
leather goods, agro-processing, and the lapidary industry. 
Historically, large job-creating investments (in the textile 
industry, for example) have      received significant 
incentives packages. 
 
13.  Incentives offered to EPZ exporters are numerous, and 
may include: 
 
-- Exemption from corporate income tax for the first 10 
years; after 10 years, a reduced tax of 25 percent rather 
than the ordinary 30 percent. 
 
-- Exemption from withholding tax on dividends and interest 
for the first 10 years. 
 
-- Exemption from all taxes and levies imposed by local 
governments for goods and 
services produced or purchased in the EPZs. 
 
-- Exemption from potential foreign exchange control and 
restrictions. 
 
-- Exemption from pre-shipment inspection requirements. 
 
-- On-site Customs inspection in lieu of off-port inspection. 
 
-- Remission of Customs duty, VAT, and any other tax payable 
on goods purchased for use as raw materials, equipment, and 
machinery, or goods and services related to manufacturing in 
the EPZs (except motor vehicles, spare parts, and 
consumables). 
 
-- Provision of temporary visas at the point of entry to key 
technical, management, and training staff for a maximum of 
period of 30 days. 
 
-- Access to high-quality infrastructure. 
 
14.  Incentives, whether under the TIC or EPZ provisions, are 
granted on a case-by-case basis, following general 
guidelines. The Tanzanian Investment Act allows for the 
Minister of Trade to specify additional incentives and 
benefits in consultation with TIC's inter-ministerial board 
"for the purpose of promoting identified strategic or major 
investments." 
 
15.  Incentives and investment guarantees are offered to both 
domestic and foreign investors. Investments in Tanzania are 
guaranteed against nationalization and expropriation. 
Tanzania is a member and signatory of several international 
agreements for protecting investments. Any dispute arising 
between the Government and investors are settled through 
negotiations or may be submitted for arbitration before the 
international organizations. 
 
16.  Generally, the Government of Tanzania facilitates 
investors with TIC or EPZ certificates in the otherwise 
onerous bureaucratic process of acquiring the various 
required permits.  However, investors are routinely granted 
work and residence permits for only five 5 expatriates; 
investors complain that this is insufficient and limits their 
ability to operate. 
 
17.  The Zanzibar Investment Promotion Agency (ZIPA) and the 
Zanzibar Free Economic Zones Authority (ZAFREZA) offer 
roughly equivalent incentives as those offered by the 
mainland's TIC and EPZ policies. 
 
 
-------------------------------------------- 
RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT 
-------------------------------------------- 
18.  Tanzania observes the right of foreign and domestic 
private entities to establish and own business enterprises 
and engage in legal forms of remunerative activity. The 
Business Registration and Licensing Act provides the right of 
any local or foreign investor to freely establish private 
entities; to own property both movable and immovable; to 
acquire and dispose of property including interest in 
business enterprises and intellectual property.  The Act 
stipulates that no business entity can enter into business 
activities in Tanzania before getting a business license 
through the Business Registration and Licensing Agency 
(BRELA). Registration fees for foreign companies are 
significantly higher than for local companies. 
 
19.  Competitive equality is applied and embedded in the 
Tanzanian National Trade Policy of February 2003 as a 
standard.  The Tanzanian competition policy aims at 
perpetuating freedom of trade, freedom of choice and access 
to markets. It prohibits firms (both private and public 
enterprises) from engaging in anti-competitive behavior and 
abuse of dominant market position. Tanzania has established 
the Fair Competition Commission (FCC) to oversee compliance 
with competitive equality standards. 
 
20.  Under Tanzanian law, non-citizens or foreign companies 
cannot own land, which continues to be a significant barrier 
to foreign investment. Land in Tanzania is government 
property and can only be leased from the government for 33, 
66, or 99 years, depending on its use. Occupation of land by 
non-citizens is restricted to lands for investment purposes, 
as approved by the TIC. Under this arrangement, known as 
Derivative Title, Tanzanian tenants sub-lease their land to a 
TIC-approved foreign investor. The TIC has designated 
specific plots of land (a land bank) to be made available to 
foreign investors. Foreign investors may also enter into 
joint ventures with Tanzanians, in which case the Tanzanian 
provides the use of the land (but retains ownership, i.e. the 
leasehold). 
 
----------------------------- 
PROTECTION OF PROPERTY RIGHTS 
----------------------------- 
21.  Movable property and land rights: Secured interests in 
property, both movable and real, are recognized and enforced 
in Tanzania under an evolving set of laws, some of which 
appear contradictory. Land in Tanzania is technically owned 
only by the government and is leased for periods of up to 99 
years. Recent reforms have tried to establish a reliable 
system of transferable property rights, with titles 
representing leaseholds. The Ministry of Lands and Human 
Settlements Development deals with the registration of 
mortgages and rights of occupancies. The Office of the 
Registrar of Titles within the Ministry is responsible for 
issuing the pertinent title and registered mortgage deeds. 
Under the recent Land Act (1999), such title deeds can now be 
used for securing loans from banks. However, the concept of a 
mortgage is very new, and the system to register such 
security interests remains unreliable. In practice, banks 
only issue mortgage loans on capital improvements on the 
land, and not on the value of the land itself. 
 
The establishment of both the Commercial Court of Tanzania 
and a special Land Court as special divisions of the High 
Court has been a tremendous step towards protection and 
effective enforcement of property rights. The new Land Act, 
the Ministry of Lands registration offices and the Land Court 
comprise a legal system that will potentially protect and 
facilitate the acquisition and disposition of land, 
buildings, and mortgages, but the system is still in its 
infancy. 
 
22. Intellectual Property Rights: Adherence to key 
international agreements on intellectual property rights in 
Tanzania began only in recent years. In 1999, Tanzania passed 
the Copyright and Neighboring Rights Act Number 7 of 1999, 
which deals with the protection of intellectual property 
rights (IPR) and also protects expressions of folklore. This 
legislation conforms to international copyright and property 
rights conventions, including the WTO TRIPS agreement, and 
provides adequate protection for intellectual property, 
patents, copyrights, trademarks and trade secrets. The Act 
also establishes the Copyrights Society of Tanzania (COSOTA), 
which has the duty and authority to promote and enforce 
intellectual property rights; collect and distribute 
royalties on behalf of its members; maintain registers of 
works, productions and association of its members; and 
identify, publicize and defend the rights of copyright owners. 
 
Despite the recent legislation, enforcement of intellectual 
property rights remains ineffective. Violations are not 
seriously investigated, and the courts lack experience and 
training in IPR issues. 
 
Tanzania has not yet signed or ratified the WIPO Internet 
treaties. 
 
------------------------------------- 
TRANSPARENCY OF THE REGULATORY SYSTEM 
------------------------------------- 
23.  The TIC facilitates applications for the variety of 
permits an investor may need, which greatly decreases the 
time and effort spent on complying with bureaucratic 
regulations. The regulatory system can be burdensome in terms 
of the steps, time and costs of complying with licensing and 
permit requirements for ongoing operations.   In general, 
however, the regulatory system does not generally serve to 
impede investment. 
 
24.  Government decisions are not always completely 
transparent, and Ministers and high level officials have 
significant authority to make exceptions to the rule. 
Well-connected companies may obtain allowances or unfair 
advantages. 
 
25.  Although government procurement is often less 
transparent than international standards, the Tanzanian 
Government has recently carried out reforms in its public 
procurements system.  In 2004, the Government of Tanzania 
passed the Public Procurement Act; implementation of this Act 
took effect in May 2005.  The Act aims to increase the 
transparency of Tanzania's Public Procurement Regulatory 
Authority (PPRA) and to provide a margin of preference for 
local tenders to enhance the participation of local firms in 
public procurement processes. 
 
26.  Many of the laws and regulations in Tanzania that impact 
investment (including tax, labor, environment, health and 
safety) are outdated, but the Government of Tanzania has made 
an effort to revise and harmonize them. In Tanzania, all 
proposed laws and regulations, including those affecting 
trade and investment matters, must be discussed by 
stakeholders and must be published in draft form for public 
comment. 
 
27.  For example, the Government of Tanzania met with private 
sector business associations, including an investor's 
roundtable group, to discuss a proposed income tax bill, 
which was passed into law in April 2004. Tanzania is now 
implementing the new tax charter with a view toward 
establishing a tax regime that is more transparent, 
equitable, efficient, and that will increase revenues. This 
ambitious tax policy reform agenda has included the abolition 
of nuisance taxes, the harmonization of the regulatory 
framework, the establishment of a transparent incentive 
regime and a structure for a gradual reduction in rates. It 
also emphasizes transparent accounting consistent with 
international norms. 
 
28.  Disputes regarding the regulatory system are difficult 
to solve. The court system continues to function slowly and 
imperfectly and is easily influenced or manipulated by 
privileged individuals. These factors increase the cost and 
difficulty of doing business in Tanzania, but can be overcome 
by diligence and on-the-ground knowledge. Ongoing good 
governance and anti-corruption measures may continue to 
improve government transparency. 
 
--------------------------------------------- --------- 
EFFICIENCY OF CAPITAL MARKETS AND PORTFOLIO INVESTMENT 
--------------------------------------------- --------- 
29.  The Capital Markets and Securities Authority (CMSA) Act 
of 1994 provides for a policy that facilitate the free flow 
of capital or financial resources to support in the product 
and factor markets.  The CMSA has opened the Dar es Salaam 
Stock Exchange (DSE) to foreigners. The maximum allowed limit 
for foreign participation is 60 percent. Foreigners are not 
allowed to participate in Government Securities. The DSE 
provides announcements, stock reports, listings and financial 
trading statistics and updates online at 
www.darstockexchange.com 
 
30.  Foreign investors are able to get credit on the local 
market for capital injection within the country and 
importation of capital goods for use within the country. Each 
credit application is vetted on its own merit using the 
normal banking procedures and best practices.  While credit 
is allocated on market terms, it has been uneconomical to 
borrow from local sources/ commercial banks due to high 
interest rates. Bank lending rates range from 14-24 percent 
for ordinary borrowers. Large corporate borrowers can 
negotiate lower rates.  The private sector has access to a 
variety of commercial credit instruments including 
documentary credits (letters of credits), overdrafts, term 
loans, and guarantees. 
 
31.  The banking industry is growing in Tanzania, with a half 
dozen international banks expanding operations in the 
country. The process of privatizing the remaining government 
owned banks is continuing, with the diagnostic studies for 
the privatization of Tanzania Postal Bank (TPB) completed. 
In 2005, privatization of the National Micro- 
Finance Bank (NMB) advanced, with the Government approving 
the sale of 49 percent of the Bank's shares. 
 
32.  The Bank of Tanzania's (BOT) international reserves have 
grown steadily over the past 5 years.  In 2004, international 
reserves stood at 1.78 billion US dollars, which constituted 
the highest level of reserves in over 30 years and equivalent 
to nine months of imports. This has helped the BOT to 
intervene whenever minor fluctuations have led to a slight 
depreciation of the Tanzanian shilling.  According to the 
Bank of Tanzania, the Tanzanian shilling depreciated against 
the U.S dollar by about 1.2 percent from 2004-2005. To find 
more information about the value of the Tanzanian Shilling, 
visit http://www.bot-tz.gov 
 
------------------ 
POLITICAL VIOLENCE 
------------------ 
33.  Tanzania is one of the most politically stable countries 
in Africa and the prospects for serious and sustained 
violence are extremely low.  Since gaining independence, 
Tanzania has enjoyed a remarkable degree of peace and 
stability and in 1992, the constitution was amended to allow 
for multiple political parties.   In 1995, the first 
multi-party election took place. 
 
34.  As the country makes the transition from a socialist to 
a democratic entity, occasional conflict is possible, 
particularly during election campaigns. In 2001, 
demonstrators clashed with police officials on Pemba 
(Zanzibar) during a protest against the official outcome of 
the October 2000 elections.  The number of dead remains under 
dispute: The Government claims 23 people died while the 
opposition party, the Civic United Front, claims over 70 
people died. 
 
35.  The 2005 elections, however, were primarily peaceful and 
marked by an absence of major violence.  In the urban area of 
Unguja (Zanzibar), there were minor clashes between security 
forces and the Civic United Front but currently, the 
situation appears stable.  Most political observers believe 
further clashes on Zanzibar are unlikely and the chance for 
conflict on the mainland remains remote. 
 
---------- 
CORRUPTION 
---------- 
36.  Corruption is one of the major difficulties encountered 
by foreign investors (including U.S. firms) in Tanzania. 
Former President Mkapa elevated the elimination of corruption 
to a major priority of his administration, creating the 
cabinet position of Minister of State for Governance in the 
President's Office, charged with, among other 
responsibilities, fighting corruption.  Mkapa's 
administration undertook a number of other important steps to 
combat corruption including, the formation of a presidential 
commission of inquiry against corruption, the requirement for 
all top political leaders to declare their assets, the firing 
of public servants for corrupt activity, and the 
strengthening of the Prevention of Corruption Bureau (PCB). 
 
37.  In 2004, the Government initiated reforms in the PCB, 
giving it increased investigative and prosecution powers, 
expanding its operations to the regional and district level 
and allotting additional budget resources to the bureau (a 
budget increase of USD 3 million from 2004 to 2005).  The 
National Anti-Corruption Strategy to root out systemic 
corruption, was developed, released and distributed 
countrywide for implementation by the PCB. Also in 2004, the 
Government of Tanzania passed the Public Procurement Act, 
aiming to increase the transparency of Tanzania's Public 
Procurement Regulatory Authority. Implementation of this Act 
took effect in May 2005. 
 
38.  In his inaugural address to Parliament in late December 
2005, the newly elected fourth President of Tanzania, Jakaya 
Kikwete, pledged to continue to combat corruption at all 
levels of government.  Through an initiative known as the 
Millennium Challenge Account Threshold program, the USG will 
work with Tanzanian authorities to reduce corruption and 
improve the GOT's effectiveness and accountability. 
 
39.  While giving or accepting a bribe (including bribes to a 
foreign official) is a criminal offense in Tanzania, the 
enforcement of laws, regulations and penalties to combat 
corruption, is largely ineffective.  Areas in which 
corruption persists include government procurement, 
privatization, taxation, ports, and customs clearance. 
Transparency International has consistently rated Tanzania as 
one of the worst countries in the world for corrupt business 
practices, although its rating has improved considerably over 
the past seven years. 
 
------------------------------- 
BILATERAL INVESTMENT AGREEMENTS 
------------------------------- 
40.  Currently, the United States of America and Tanzania do 
not have a bilateral investment agreement. 
 
-------------------------------------------- 
OPIC AND OTHER INVESTMENT INSURANCE PROGRAMS 
-------------------------------------------- 
41.  OPIC insurance programs are available for Tanzania. OPIC 
signed an updated incentive agreement with the government of 
Tanzania in December 1996. Few companies have used OPIC 
programs in Tanzania. 
 
42.  Tanzania is an active member of the Multilateral 
Investment Guarantee Agency (MIGA), and foreign investors 
have successfully utilized MIGA guarantees. 
 
43.  The Export-Import Bank of the United States provides its 
loan and guarantee products for short-term and medium-term 
financing in Tanzania's private sector. In 2004, Ex-Im Bank 
negotiated a master guarantee agreement with Ex-Im Bank 
Tanzania, a local commercial bank. 
 
----- 
LABOR 
----- 
44.  Tanzania passed a revised Labor Law in 2004 that 
conforms to international standards, including the ILO 
convention protecting worker rights. Firms are able to make 
private hiring decisions without requirements to use specific 
employment agencies. Employees have the right to organize in 
unions, to bargain collectively, and to legally strike under 
certain conditions. Labor laws apply equally to private and 
public sector workers, including workers in EPZs or free 
trade zones. 
 
45.  Unskilled labor is plentiful and inexpensive. There 
continues to be a deficit of skilled labor in Tanzania, 
though the number of university graduates is growing, 
especially in business management and information technology. 
 Many foreign investors find that local labor is not 
sufficient to fill management and administrative positions. 
The difficulty of hiring and firing workers in Tanzania is 
well above the regional and world average, according to the 
World Bank's latest report on Doing Business in Tanzania. 
 
46.  Currently, the labor and immigration regulations allow 
foreign investors to recruit up to five expatriates. Though 
additional work permits for expatriates can be granted under 
certain conditions, it can be difficult to get approval. 
 
------------------------------------ 
FOREIGN TRADE ZONES/FREE TRADE ZONES 
------------------------------------ 
47.  Beyond the incentives of Export Processing Zones (EPZs) 
discussed above, the GOT has made efforts to institute free 
trade zones at various ports, including Zanzibar, Tanga, and 
Kigoma. At these free ports, importers may bring goods of 
foreign origin without paying customs duties and taxes, 
pending their eventual processing, transshipment or 
re-exportation. 
 
48.  Zanzibar has named three areas as free trade zones, 
under the authority of the Zanzibar Free Economic Zones 
Authority. These zones are effectively export-processing 
zones, with EPZ incentives for companies operating within the 
zone. 
 
------------------------------------ 
FOREIGN DIRECT INVESTMENT STATISTICS 
------------------------------------ 
Tanzania Mainland: FDI Stocks and Flows (1999-2004) 
Value: US Dollar millions and percentage of GDP 
 
             1999     2000     2001     2002     2003     2004 
 
GDP          8,025    8,377    8,711    8,927    9,447 
10,808 
Nominal 
 
 
FDI          541.7    282.0    467.2    429.8    526.8 
469.9 
Inflows 
 
 
FDI            6.7      3.3      5.3      4.8      5.5 
4.35 
Inflows 
(percent of GDP) 
 
 
FDI          2,419    3,038    3,777    4,206     4,733 
5,203 
Stocks 
 
FDI           30.1     36.2     43.2     47.1      50.1 
48.1 
Stocks 
(percent of GDP) 
 
 
------------- 
WEB RESOURCES 
------------- 
 
Tanzanian Investment Center: http://www.tic.co.tz 
 
Public Procurement Regulatory Authority: http://www.ppra.go.tz 
 
Presidential Parastatal Sector Reform Commission: 
http://www.pscrtz.tz. 
 
Doing Business in Tanzanian (World Bank Report): 
http://www.doingbusiness.org 
 
Millennium Challenge Account: http://www.mcc.gov 
RETZER