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INVESTMENT ENVIRONMENT

The investment climate has shown remarkable improvement since the introduction of trade liberalization  in 1985. A number of economic programmes have been launched in collaboration with bilateral and multilateral institutions. These programmes include the Economic Recovery Programmes  (ERP) and more recently the Economic and Social Advancement Programme (ESAP).

As a move towards opening up the economy, the government, in June 1990 passed the National Investment (Promotion and Protection) Act of 1990 to create a friendly environment for investors. The act provides (Part II) for establishment of  Tanzania investment Centre (TIC), which is now functional.

The act also made specific fiscal adjustments that now make Tanzania a globally competitive country for mining investment. Subsequent legislations have established mining as a priority area for investment.

Investment Guarantees.

The trust of the country’s new policies emphasizes the importance of the private sector. Foreign and local investors, including investors in mining, are protected against nationalization. Property guarantees are provided under the Multilateral Investment Guarantee Agency (MIGA) of which Tanzania is a member. Tanzania is also a member of the international Centre for settlements of Investment Disputes (ICSID), a body affiliated of the world bank.

Settlement of disputes between a foreign investor and the Government or Tanzania Investment Centre (TIC) in respect of a business enterprise will be through negotiations for an amicable settlement. A dispute, which is not settled through negotiation, may be submitted to arbitration in accordance with any of the following methods as may be mutually agreed by the parties:

●Arbitration laws of Tanzania for investors.

●The rules of procedure for arbitration of the International Centre for the Settlement of investment Disputes (ICSID).

●Within the framework of  any bilateral or multilateral  agreement on investment protection agreed to by the Government of the country from which the investor originates. 

The new open – door policy has added Tanzania on to the list of countries that earn improved treatment by international insurance agencies. Investment insurance coverage for approved projects can normally be obtained from specialized government – chartered organizations in the investor’s home country.