The Parliament of the United Republic of Tanzania on Thursday, February 14, 2025, passed the Investment and Special Economic Zones Bill of 2024, introducing the Tanzania Investment and Special Economic Zones Authority (TISEZA). This new authority will replace the Tanzania Investment Centre (TIC) and the Export Processing Zones Authority (EPZA).
The newly established TISEZA will be responsible for advising the government on investment and special economic zone matters while acting as the main government agency for investment coordination, promotion, and facilitation in the country.
Speaking in Parliament while tabling the bill, the Minister of State in the President’s Office responsible for Investment and Planning, Prof. Kitila Mkumbo, stated that the decision to merge TIC and EPZA stemmed from a government study conducted in 2023. The study assessed the efficiency of public institutions and parastatals.
According to Prof. Mkumbo, the study revealed that some parastatals and institutions had overlapping functions, which led to inefficiencies, increased operational costs, and a less conducive business environment.
“The government decided to merge or dissolve some institutions and public organizations,” said Prof. Mkumbo. “The Tanzania Investment Centre and the Export Processing Zones Authority were identified as having overlapping responsibilities and were therefore ordered to merge into a single institution.”
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TISEZA will now serve as a One-Stop Centre for facilitating investment processes and ensuring efficient service delivery to both domestic and foreign investors. It will oversee the smooth registration of investment projects, the issuance of investment licenses, and the resolution of investment-related complaints. Additionally, the authority will be responsible for identifying and designating areas for investment, including special economic zones.
With the passing of this bill, which now awaits presidential assent to become law, the previous legislations governing investment are officially repealed. The repealed laws include the Tanzania Investment Act of 2022, the Export Processing Zones Act of 2002, and the Special Economic Zones Act of 2006.
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According to Prof. Mkumbo, the bill aims to promote investment in Tanzania by establishing favorable conditions for investors. It sets up an institutional framework for investment coordination, protection, encouragement, and promotion while outlining procedures for establishing, developing, and managing special economic zones.
The bill guarantees investors the right to repatriate their income abroad only through eligible banks and in foreign currency. “Investor rights include the repatriation of profits, income, and dividends through any bank after paying taxes, fees, and other statutory deductions,” said Prof. Mkumbo.
Other key provisions in the bill include a prohibition on the nationalization of investment projects without fair compensation, the establishment of a land bank, incentives for investors, mechanisms for conflict resolution, guarantee of access to loans from domestic financial institutions, and the formation of the National Investment Development Committee.
