United Republic of Tanzania
Issues Investment and Special Economic Zones Regulations
25 Jul 2025
On 25 July 2025, the United Republic of Tanzania issued the Investment and Special Economic Zones Regulations, 2025. The regulations include the following key features:
One of the central provisions is the regime for investor registration and the issuance of an Investment Certificate. To be eligible, new foreign-owned or joint venture businesses must commit a minimum capital of $500,000. Existing businesses applying for a certificate must demonstrate at least $100,000 in capital, while fully Tanzanian-owned enterprises must show $50,000. The Tanzania Investment and Special Economic Zones Authority (TISEZA) is required to review applications and respond within 30 days.
The Investment Certificate provides protections, including safeguards against unfair seizure and guarantees on expropriation subject to prompt and adequate compensation. It also guarantees the right to repatriate funds and allows for the employment of foreign experts, subject to immigration laws.
The regulations also establish a comprehensive incentives package for investors operating within designated special economic zones (SEZs). SEZ investors are eligible for a ten-year corporate income tax holiday; exemptions from withholding taxes on dividends, interest and rent; and customs duty and value added tax (VAT) exemptions on capital goods and raw materials. Relief is also provided from local government taxes, land rent and VAT on utilities.
SEZ developers — who must commit at least $20 million in capital — are eligible for additional exemptions related to infrastructure construction and operation. Strategic investors in sectors such as agro-processing, energy, telecommunications and manufacturing may receive further benefits.
Nature of measure:
Type:
-
Promotion and facilitation (Investment facilitation , Special economic zones)
Industry:
Inward FDI:
Yes
Outward FDI:
No
Sources:
