Trade and Investment in Tanzania

Business2019-08-02T16:31:40+01:00

       

Tanzania is endowed with many natural resources and investment opportunities. The Government of the United Republic of Tanzania has simplified investment regulations in order to attract investors from around the world. Investment in Tanzania is overseen by the Tanzania Investments Centre (TIC), a one-stop primary Government agency responsible for all investment matters. Please download the Tanzania Investment Guide for available opportunities.

The TIC is charged with the following functions

  • Promoting investment activities in Tanzania.
  • Addressing administrative constraints facing local and foreign investors.
  • Assisting in the establishment and registration of enterprise processes.
  • Facilitating investors in obtaining necessary licenses, work permits, visas, approvals, facilities or services.
  • Assisting investors to secure investment sites and the establishment of Export Processing Zone (EPZ) projects especially in the Agricultural, Mining, Infrastructure, Fisheries and Tourism sectors.
  • Granting Certificates of Incentives, investment guarantees and registering technology agreement for all investments which are over and above US$ 500,000 and US$100,000 for foreign and local investments, respectively or joint venture.
  • Providing and disseminating up to date information on existing investment opportunities, benefits, and incentives available to investors.
  • Facilitating investors to have smooth working relationships with Public and Private Sector bodies such as Tanzania Chambers of Commerce, Industry and Agriculture (TCCIA), Confederation of Tanzania Industries (CTI),Tanzania National Business Council  (TNBC), Tanzania Private Sector Foundation (TPSF).

Trade in Tanzania
Tanzania attaches great importance to the role of trade in realizing National goals on poverty eradication through structural transformation of the economy with the private sector taking a leading role as an engine for national economic growth.

Tanzania offers a well-balanced and competitive package of fiscal trade incentives especially in the priority sectors such as manufacturing, agriculture, Tourism, petroleum, gas and Mining. For all these sectors, except petroleum and gas sectors, acquisition of all capital goods and parts are zero-rated for import duty purposes and VAT thereon deferred.

Research expenses for agriculture are allowable for income tax purposes, while capital acquisitions are 100% expensed. You can also import duty-free all capital goods, spare parts, hotel facilities, explosive material for gas and oil exploration. Tanzania has also signed double taxation treaties with Denmark, India, Italy, Norway, Sweden, Kenya, Uganda, Zambia, and Finland.

The Leading Investment Sectors include
Agriculture and Agro-based Industries; Mining; Petroleum and Gas; Tourism, and Infrastructure. For Business and Investment News and discussion in Tanzania please visit Tanzania Invest

The Priority Sectors for Investment
Energy, Manufacturing, Agriculture, Chemical Industries, Natural Resources (Fishing & Forestry), Construction and Real Estate Development, Management Consultancy, Human Resource Development (Hospitals, Health Centers, and Educational Facilities), Radio and Television Broadcasting and Export Oriented Projects.

Trading Partners

Tanzania’s major trading partners include China, Germany, Japan, India, the European Union, United Arabic Emirates, United Kingdom, Kenya, Japan, India and South Africa. ajor commercial/trading cities include Dar es Salaam, Mwanza, Zanzibar, Arusha, Mbeya, Tanga, Kilimanjaro and Kigoma.

Import Products
Major import commodities include agricultural machinery, implement and pesticides, industrial raw materials, machinery, and transportation equipment, petroleum and petroleum products, construction materials, consumer goods. The list is not exhaustive,

Export Products

The principal export commodities include Minerals (gold, gemstones, diamonds, coal e.t.c.), coffee, cotton, cashew nuts, tea, sisal, tobacco, pyrethrum and organic spices. For reliable contact to business partners, licenses and permits for buying and exporting above products please contact their relevant product boards, Chambers of Commerce, Trade Corporations/organisations/Associations e .g Tanzania Coffee Board; Tanzania Cashewnut Board; Tea Board of Tanzania; Tanzania Sisal Board;  Tanzania Cotton Board; Pyrethrum; Board Procedures for Export of Minerals; Zanzibar State Trading Corporation; Tanzania Trade Development Authority; Tanzania Chamber of Commerce, Agriculture and Industries, Tanzania Horticulture Association or send an email to the Embassy of Tanzania in Sweden.

Potential Export Products From Tanzania

The Embassy of Tanzania in Sweden has identified the following products which have export potential in the Nordic, Baltic countries and Ukraine.

(i)   Horticultural Products:

  • We think the best possibility for trade in the agricultural sector lies in high-value horticultural products such as fresh fruits and vegetables.

(ii)  Organic foods

  • Specialised organic foods often fetch higher prices in Scandinavia and we think that such products from Tanzania are likely to find viable markets here and at higher price level. Such products are Cashew nuts, groundnuts, Sesame seeds, Cotton, Coffee, Peper, Lemon grass, Ginger, Clove, Cardomon, Cinamon, Vanila, Black Peppar, Turmeric, essential oils, Spice, Coconut, Tea, Paprika, Hibiscus, and Certified Organic Fruits

(iii) Seafood products

  • The Nordic countries imports the entire range of seafood that Tanzania has available for export.
  • Greater sales from chilled fish and prawns could easily be achieved if suppliers are assisted in quality, packaging to meet delivery requirements.
  • We think there could be an excellent market in the Nordic for Fish Lake, ocean and crustaceans.

(iv) Floriculture

  • The Nordic can easily be a great market for Tanzania
  • Tanzania with an advantage of warmer climate, high light levels and low labor costs could become an important cut flower exporter to the Nordic countries.
  • As a cautionary note here, mistakes by a supplier or demonstration of unreliability could definitely result in loss of business as potential buyers could turn to alternative suppliers worldwide like Latin America, US, Australia, Israel, Madagascar, Comoros, New Zealand, Thailand.

(v) Non-perishable products

  • Fruit juices, sun-dried fruits and mangoes in syrup could also enjoy a market in the Nordic countries.
  • Processed food products have an easier time with health regulations.
  • The strong condition here is that these food products must conform to international packaging and labeling standards.

(vi) Apparel and Textiles

  • Small and medium exporters dealing with textiles could find market opportunities in the Nordic and Baltic Countries. The textile and clothing industry in Tanzania has the potential to become a significant sourcing location for foreign buyers.
  • The Textile Development Unit (TDU) is promoting Tanzania as “the best overall location for making apparel in Africa”. Tanzania offers a sustainable supply of locally-grown handpicked cotton for Textile and Apparel brands, buyers and manufacturers.
In addition to availability of products that have an export potential we think that forming a relationship with established importers in Scandinavian countries and Aid for Trade is predominantly essential to gaining a foothold in the/Scandinavian market.

For trade statistics and further details on trade in Tanzania, please contact

Permanent Secretary
Ministry of Industry, Trade and Marketing
P. O. Box 9503, Dar es Salaam
Tanzania

Telephone: +255 22 2127898/97
Fax: +255 22 2125832
E-mail: ps@mit.go.tz
Website: https://www.mitm.go.tz

The Executive Director
Tanzania Investment Centre (TIC)
P. O. Box 938, Dar es Salaam
Tanzania

Tel: +255 22 2116328 -31
Fax: +255 22 2118253
E-mail: information@tic.co.tz
website: https://www.tic.co.tz