The Tanzania Investment Centre (TIC) has experienced remarkable success, witnessing a surge of more than 60% in newly registered projects within a year of implementing the new Investment Act, 2022. Mr. Gilead Teri, the Executive Director of TIC, shared these achievements during a press briefing in Geita town on Wednesday.
Mr. Teri highlighted the impact of the Investment Act, enacted in November 2022, emphasizing its role in simplifying the investment process for Tanzanians across various sectors. The legislation, designed to create a conducive environment for local investors, has led to a substantial increase in registered projects from 273 in 2022 to an impressive 504 in 2023.
Notably, approximately half of the newly registered projects in 2023 are owned by Tanzanians, marking a significant increase from the 20-30% ownership recorded in 2022. The surge is attributed to the government's vision and the investment-friendly environment created by the new law.
Key sectors driving this growth include the industrial sector, agriculture, transport, mining, tourism, and the construction industry. In 2023 alone, 504 projects with a total value of 5.6 billion US dollars were registered, equivalent to more than 11 trillion Tanzanian shillings, expected to generate over 100,000 jobs for Tanzanians.
Mr. Teri expressed TIC's commitment to tripling investment growth by 2025, with an ongoing awareness campaign aimed at educating Tanzanians about investor-friendly policies.
Local Investor Mr. Athanas Inyasi, CEO of Bluecoast Company Limited in Geita, attested to the positive impact of the government's policies, encouraging locals to seek investment opportunities and contributing to economic growth.
Acting Geita Regional Commissioner, Mr. Coronel Magembe, commended TIC for its investment awareness campaign, highlighting Geita's status as a haven for investors. He emphasized that this surge in investment underscores Tanzania's commitment to fostering economic growth and creating a favorable environment for both local and international investors.
The new Tanzania Investment Act, No. 10 of 2022, has introduced positive changes, including a reduced minimum investment capital for local investors from USD 100,000 to USD 50,000. It has also introduced an integrated electronic system for streamlined data sharing and outlined criteria for the validity of certificates of incentives.
While the Act has received praise for its comprehensive approach, critics have raised concerns about the removal of the channel of appeal, potential delays in objection processes, and the exclusion of technology transfer agreements. However, the government remains optimistic about refining the Act over time to address any emerging challenges.
In conclusion, the Investment Act of 2022 signifies Tanzania's commitment to attracting foreign direct investment, creating an environment conducive to economic growth, and providing transparent and efficient procedures for investors. The government aims to continuously refine and improve the legislation to meet the evolving needs of the investment landscape.