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"Whilst aiming for excellence is not a unique aspiration, the extent to which we actually achieve it puts us in the top echelon of investment consulting firms in Tanzania".
 Director, IDI Solutions

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Frequently Asked Questions...
          What is the role of IDIS?

          IDIS Role:
  • To facilitate investment (both local and foreign) in the country, this is done by way of presenting current investments opportunities and providing consulting services to companies or individuals who wish to invest in projects, export, import or start-up new projects
  • We work with the government and Tanzania Investment Centre (TIC) to look for investment opportunities, provide brochures, flyers and investors’ guides.
  • We can take our services a step further to identify land, register companies, file for business licences, work permits, residence permits, tax issues, property and even travel.
  • Our service will continue for the duration of the investors project and may even include share-holding within the company/project.

    Why invest in Tanzania?

    Tanzania offers a well-balanced and competitive package of fiscal incentives in comparison with other African countries.  Tanzania is a signatory of several multilateral and bilateral agreements on protection and promotion of foreign investment. Among other international agreements and membership, Tanzania is a member of Multilateral Investment Guarantee Agency (MIGA) and International Centre for Settlement of Investment Disputes (ICSID).

    Natural Resources

    Tanzania’s untapped natural resources offer a wide range of investment opportunities; arable land, minerals and natural tourist attractions are all awaiting potential investors. Tanzania is internationally renowned for its abundance of wildlife attractions and unexploited mineral reserves. These sectors (Mining and Tourism) are the leading recipient of foreign investment flow and are tipped to become the “growth sectors” of the economy.

    Investment Environment

     During the past decade Tanzania has distinguished itself as one of the few African countries that have radically transformed their economies. Successes of these reforms are reflected in the country’s strong macroeconomic fundamentals with consistently increasing growth rates, consistent falling inflation and increasing inflow of FDI. One of the factors that contributed to this success is the country’s unwavering commitment to build a strong private sector. The pro investment attitude by Government is clearly demonstrated by the innovative investment legislation, the increasing number of foreign direct investments in the country and economic and structural reforms that have led to substantial progress in establishing a functioning market economy.

    Peace and Stability

    Tanzania is free of ideological confrontations, ethnic problems and labour disputes. It is a centre of economic and political stability in Sub Saharan Africa

    Skilled Workforce

    Access to skilled labour is a key priority for companies competing in African economies. The Government has made a long-term commitment to develop a pool of well-trained and educated specialists.

     

           What are the benefits/incentives of investing in Tanzania?

          The Incentives Guarantees Available To Holders Of TIC Certificates Of Incentives Are (TIC, 2007):
  1. The recognition of private property and protection against any non-commercial risks. Tanzania is an active member of the World Bank Foreign Investment Insurance wing, MIGA (Multilateral Investment Guarantees Agency). Likewise Tanzania is a member of The International Centre for Settlement of Investment Disputes (ICSID) also a body affiliated to the World Bank.
  2. Zero percent (0%) Import Duty on project capital goods, computers and computer accessories, raw materials and replacement parts for agriculture, animal husbandry and fishing, human and livestock pharmaceuticals and medicaments, motor vehicle in Completely Knocked Down (CKD) form and inputs for manufacturing pharmaceutical products.
  3. Ten percent (10%) - Import Duty for Semi-processed inputs and spare parts other than for motor vehicles.
  4. Fifteen percent (15%) - Import Duty for fully processed inputs and motor vehicle spares.
  5. Twenty five percent (25%) - Import Duty for final consumer goods.
  6. Abolition of the mandatory pre-shipment inspection on imported raw materials that have zero rate of Import Duty.
  7. Introduction of pay and refund scheme for excise duty paid on fuel purchased by eligible companies.
  8. 50% expensing of capital expenditure for all classes of assets. In subsequent years implement wear and tear allowance.
  9. VAT exemption on ground transport run by Tour Operators, milk packaging materials, computers, printers and accessories, hospital equipment and drugs used by victims of HIV/, Malaria and TB and locally produced yarn.
  10. Deferment of VAT payment on project capital assets
  11. Import Duty drawback on raw materials used to produce goods for exports and deemed exports. Deemed exports cover locally produced or manufactured goods, which are sold to foreign agencies or entities operating in Tanzania, which are exempt from payment of import duties.
  12. Locally procured building materials are deemed to be capital and therefore subject to VAT deferment.
  13. Zero-rated VAT on exports
  14. Straight line depreciation allowance on capital goods
  15. Indefinite carry forward of losses against future profits.
  16. Corporate Tax Rate of 30% and Withholding Tax Rates on dividends (10%) and (0%) on loan interest in both priority and lead sectors.
  17. The right to transfer outside the country 100% of foreign exchange earned, profits and capital
  18. The ease of obtaining other permits such as Residence/Work Permits, industrial license, trading license etc.
  19. Automatic permit of employing 5 foreign nationals on the project holding Certificates of Incentives
  20. Land Rent on commercial agricultural farms, Livestock ranches and forests Tshs. 200/= per acre per annum

Any more questions....

We are waiting to hear from you. Contact us at info@idistz.com for more information. If we can not answer your questions, we will direct you to places where you will get answers. Based on your questions, we will continue to post them up in this FAQ section

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 Information Source: Tanzania Investment Centre
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