COUNTRY OF TANZANIA

The United Republic of Tanzania was established in 1964 when the sovereign states of Zanzibar and Tanganyika united. Tanzania is 947,300 km2, which includes 54,337 km2 of inland water. The island of Pemba is roughly 984 km2 and the island of Zanzibar is 1,657 km2. One of the five countries in East Africa, Tanzania is located south of the equator.

Mainland Tanzania is situated between the area of Tanganyika, the Great Lakes of Victoria, Nyasa, and the Indian Ocean. It boasts roughly 1,400 kilometers of coastline and is bordered by eight countries: Uganda, Burundi, Kenya, Rwanda, Zambia, Malawi, the Democratic Republic of the Congo, and Mozambique. Due to six of these countries being landlocked, Tanzania provides natural access to the region.

POPULATION

Tanzania’s population is 51.82 million as per the National Bureau of Statistics 2014. Of the total population, around 97% live in mainland Tanzania and 2% live in Zanzibar. The population is growing at a rate of 3.2%, with the youth under the age of 15 years accounting for 45% According to the current population prospects of the United Nations, the population of Tanzania in the year 2050 will rise to 129,420,000 and, in the year 2100, to 275,620,000. The life expectancy in Tanzania is 61.4 years. Population by age 0–14 years: 45.00% 15–64 years: 52.00% Labour force (over 15 years): 25.28 mm (2014) Population growth: 3.2% (2014) Youth literacy rate (15–24 years): 86% (2012) Male: 87% (2012) Female: 85% (2012) Urban population: 31% (2014) English and Swahili are official languages. Religion: Christians, Muslims, and Indigenous beliefs.

REGIONAL INTERGRATION

Tanzania is a member of regional trading blocs of SADC and the EAC, as well as a beneficiary country under the preferential trade enhancing schemes offered by the AGOA legislation, of which 6,500 products enjoy duty and quota-free access to the USA market. Additionally, Tanzania enjoys benefits that are set by the European Union

CLIMATE OF TANZANIA

The climate in Tanzania can be defined as ranging from tropical along the coast to temperate in the highlands.
From November till February Tanzania faces pleasant weather with about 25°C to 31°C, these are declared the hottest months in the year.
In contrast, the period from May till August is the coolest time with only 15°C to 20°C. The climate is not the same among all Tanzanian areas so the temperature in the highlands ranges from 10°C to 20°C and the rest of Tanzania faces temperatures under 20 rather rarely. Seasonal rainfall is caused mainly because of the migration of the Intertropical Convergence Zone. It actually migrates through the country from October till reaching the south of the country in January and returning northwards around March, April, and May. This causes the north and east of Tanzania to experience two distinct wet periods – the short rains from October till December and the long rains from March to May – while the southern, western, and central parts of the country experienced one wet season, that continues October through to May.

ECONOMIC OVERVIEW

Following two decades of sustained growth, Tanzania reached an important milestone in July 2020, when it formally graduated from a low-income country to lower-middle-income country status. Tanzania’s achievement reflects sustained macroeconomic stability that has supported growth, in addition to the country’s rich natural endowments and strategic geographic position

POLITICAL SYSTEM

President Samia Suluhu Hassan was sworn in on March 19, 2021, as the United Republic of Tanzania’s sixth, and first woman, president, following the death of President John Pombe Magufuli on March 17, 2021. President Hassan was the Vice President of the Fifth-Phase Government from October 2015. The government has prioritized efforts to clamp down corruption, improve public infrastructure systems, and improve public administration and accountability, and proper management of public resources for improved social outcomes. Tanzania is based on a presidential Republic with partial autonomy regarding Zanzibar. President of Tanzania, Ms. Samia Suluhu Hasani, is both, the head of state and the head of government. Regarding its political system, the country inherits a multiparty system with the ruling Chama Cha Mapinduzi, the Revolutionary State Party, since 1992. The executive branch on the one hand is exercised by both, the government and the parliament. The Judiciary, however, acts independently from the other two branches. Regarding the administrative division and structure of Tanzania play an important role when it comes to making and implementing decisions about policy. Therefore, this administrative division is laid down by Part 1, Article 2.2 of the Constitution of Tanzania. As one can see in the picture, Tanzania was divided into twenty-six different regions under the British in 1922. Each of these regions is in turn subdivided into districts, which amounts to a total number of 127 districts.

WATER

As of 30th June 2016, Tanzania had 131 regulated water utilities. These included the Dar es Salaam Water and Sewerage Authority (DAWASA), Dar es Salaam Water Supply Corporation (DAWASCO), 23 Regional Water Supply and Sanitation Authorities (RWSSAs), 98 District and Township Water Supply and Sanitation Authorities (DTWSSAs), and eight National Projects Water Supply and Sanitation Authorities (NPWSSAs) Due to the variations in methods employed in the water abstraction, treatment and distribution water supply tariffs varies from one water supply authority to another. In FY 2015/16, the average tariff for Water supply and sanitation in Tanzania stood at an average of TZS 1,037.4 per m3

ENERGY

The electricity supply industry in Tanzania is currently dominated by the Tanzania Electric Supply Company Limited (TANESCO), which is a vertically integrated state-owned company. TANESCO owns and carries out generation, transmission, and distribution of electricity up to the final consumers, and sells electricity in bulk to Zanzibar Electric Company (ZECO) through submarine cables to Zanzibar and Pemba Islands. On the generation side, there are other players which include Independent Power Producers (IPPs), Small Power Producers (SPPs), and Emergency Power Producers (EPPs). As of June 2016, the installed capacity in the Isolated Grid was 84 MW, while the installed capacity in the Main Grid was 1,358 MW. The Maximum Demand attained was 1026 MW, recorded on 15th March 2016. During the 205/16 period, a total of 6,449 GWh were available for sale which implies a 2.9% increase as compared to 6,262 GWh reported during the previous year. These units were received from TANESCO plants, IPPs, SPPs, and imports from neighboring countries.

WHY INVEST IN TANZANIA

Tanzania can be seen as a great attractive investment opportunity for foreign as well as for local investors, because of its abundance of natural resources and its geographic location. Especially minerals and the discoveries of natural gas make it more interesting to come up with new business.

One possibility to invest in Tanzania is through the Export Processing Zones Authority (EPZA). The EPZA is mandated to promote, register and facilitate Special Economic Zones (SEZs) and Export Processing Zones (EPZs) investments in mainland Tanzania. The functions of EPZA include the development of EPZ/SEZ infrastructure, provision of business services to EPZ/SEZ investors, and issuing of EPZ/SEZ licenses. The Authority functions as a one-stop service center for all prospective and existing investors. This guide provides you a general overview of the country Tanzania with all its amenities and current situation. Furthermore, you get detailed information about the investment opportunities in Tanzania and especially about how to cooperate with EPZA.

INVESTIMENT INCENTIVES

Attractive Investment Fiscal Incentives

The Fiscal Investment Regime in Tanzania is characterized as being predictable and stable so as all investors are warmly welcomed to the greatest extend. The fact that investors need to recover the investment expenses before paying the due cooperate taxes is one of the main functions such a Fiscal Regime takes into account.

A wealth of Natural Resources

Agricultural cropland, mineral, natural tourist attraction, and other unspoiled natural resources offer many opportunities to invest in Tanzania. Tanzania has a great potential for mineral resources which contributes to the countries development.

It is even internationally renowned for its abundance of wildlife attractions and unexploited mineral reserves.

High Growth Potential

In Tanzania, there is enormous potential in developing the economy and unlocking new economic growth. The country is able to take advantage of many trade and development opportunities. Tourism is thereby an important Sector for the growth of the economy. In 2004, Tanzania was named as the best investment promoter of African Investment Promotion Agencies.

Investment Guarantee

While investing and operating in Tanzania, investors do not need to fear nationalization or any kind of expropriation, because since Tanzania negotiated a number of bilateral and multilateral agreements concerning protection and promotion of investment there is no possibility to exploit them.

Investment Incentives

With regard to possible investment incentives, Tanzania offers many attractive and differentiated packages to its investors. In sum, the incentives are well-balanced so as they can compete with Investment Authorities in other African countries. In order to provide a fundamental basis for foreign investors and hence to attract Foreign Direct Investment, Tanzania signed several double taxation treaties and agreements

Public-Private Partnerships

The strong and cooperative relationship between Tanzania and the government, the private sector, and development partners makes it remarkably expedient to invest in the country

Magnificent Business and Leisure Destination

The Government of Tanzania is highly determined to deploy necessary measures to lower the costs of developing a business and maintain a fair competition business practice. Additionally, Tanzania offers extremely great leisure opportunities, for instance, global 5* Hotels, Exotic Beach Hotels, private jet and helicopter for hire, elegant mansions, and apartments for both hire and buy.

Export Processing Zones & Special Economic Zones

The EPZs and SEZs are special investment schemes through which investors can take different advantages. Furthermore, these Schemes give investors opportunities to choose area of their own interests to accomplish the investment dreams under simplified procedures within the One Stope Service Centre.