United Republic of Tanzania

United Republic of Tanzania

Revises investment regime, including new IPA and SEZ regime

13 Feb 2025

On 1 July 2025, the United Republic of Tanzania adopted the Investment and Special Economic Zones Act (No. 6 of 2025). The Act introduced significant reforms to the previous legal and institutional frameworks. Key features include:

  • Establishment of the Tanzania Investment and Special Economic Zones Authority (TISEZA) as an autonomous entity with perpetual succession. TISEZA now serves as the principal agency for coordinating, promoting, facilitating and enabling investment in the United Republic of Tanzania, and acts as a one-stop centre for investors. The Act consolidates the functions of the Tanzania Investment Centre (TIC), previously established under the Tanzania Investment Act, 2022, and the Export Processing Zones Authority (EPZA), established under the Export Processing Zones Act, 2002 and the Special Economic Zones Act, 2006.

  • Creation of an integrated electronic system to link all relevant authorities for licences, permits, approvals and consents, and the establishment of a land bank comprising investment-ready land. While the 2022 Act mandated the TIC to develop an electronic system, the earlier EPZ and SEZ Acts did not contain such provisions. The new framework merges investment facilitation and land access under a unified authority.

  • Strengthening of investor protections, including guarantees for the transfer abroad of capital, profits and dividends; protection against expropriation with fair compensation; and equal treatment for foreign and domestic investors. The Act also sets out procedures for complaint handling and dispute resolution (sections 33–40). These protections consolidate provisions found in the 2022 Act and extend them to all zones, moving beyond the limited guidance previously provided under the 2002 and 2006 Acts.

  • Provision of unified fiscal and non-fiscal incentives for licensed investors in special economic zones, such as exemptions from certain customs duties, value added tax (VAT), income tax and local government levies. The 2022 Act offered similar incentives; however, the 2002 and 2006 Acts applied only to EPZ and SEZ operators. The 2025 Act brings all such incentives under a single, harmonised regulatory framework.

  • Empowerment of TISEZA to establish special economic zones for priority sectors, including industrial parks, EPZs, free trade zones, free ports, tourism clusters, agricultural zones and science and technology parks (section 25). Unlike the 2006 SEZ Act, which was limited in scope, and the 2002 and 2022 Acts, which lacked provisions for defining priority zones, the 2025 Act expands and formalises the mandate for priority sector development.

  • Repeal of the Tanzania Investment Act, 2022; the Export Processing Zones Act, 2002; and the Special Economic Zones Act, 2006, with transitional provisions for continuity. The earlier Acts functioned independently, leading to overlapping jurisdictions and fragmented institutional structures. The 2025 Act consolidates investment and zone management under the single authority of TISEZA.

 

Nature of measure:
  • Facilitation
  • Promotion
  • Other regulatory changes
  • Incentives
Type:
  • Treatment and operation (Non-discrimination, Nationalizations and expropriations, Capital transfer and FOREX, Dispute settlement)
  • Promotion and facilitation (Investment facilitation , Investment incentives, Investment promotion, Special economic zones)
Industry:
  • Not industry specific
Inward FDI:
Yes
Outward FDI:
No
Sources: