Tanzania: TIC identifies ventures that are ready for PPP

The Tanzania Investment Centre has identified a number of projects it says are up for public private partnership or joint ventures.

They include Southern Agricultural Corridor of Tanzania (SAGCOT), National Ranch Company (NARCO), Suma-JKT, Tanzania Prisons farms and Tanzania Private Sector Foundation projects.

The TIC Acting Director of Investment Promotion, John Mathew Mnali told The Guardian on Saturday that the centre invites potential investors from different parts of the world to inject capital in these areas.

“Local and foreign investors keen to invest in these areas, the government through the Tanzania Investment Centre (TIC) will provide assistance to see that these projects are promoted,” he said.

He said presently Tanzania has a stable and predictable fiscal investment regime providing a soft landing to all investors and recognises that investors need to recover their costs first before paying corporation tax.

On the other hand, Tanzania’s strategic geographical location and its easy connection businesswise to other locations worldwide, is a motivating factor to investors, he said.

Currently, Tanzania has three major ports include Tanga, Dar es Salaam and Mtwara providing services to neighbouring landlocked countries.

Prospective investors are most welcome to take advantage of the generous incentives under the liberalised environment offered by the new investment regime-Tanzania Investment Act, 1997 (Act No 26 of 1997),” he said.

On settlement of disputes, according to Mnali, Tanzania is a member of the International Centre for Settlement of Investment Disputes.

A dispute which is not settled through negotiations may be submitted for arbitration in accordance with the rules of procedure, he said.

Tanzania is a member of the Multilateral Investment Guarantee Agency, also a member of the World Bank and African Trade Insurance Agency, he said, noting that the two institutions provide political risks insurance guarantee to the private sector.

Highlighting on access to credit from domestic sources, he said that foreign investors may in relation to the business enterprises that they operate obtain credit from domestic banks and financial institutions up to the limit established by the Bank of Tanzania (BoT).

Currently, Tanzania enjoys preferential market access with Japan, Canada, East Africa, Sadc, Africa Growth and Opportunity Act (AGOA) and Negotiated EPAs-Everything But Arms (EBA).

Elaborating on funds repatriation by foreign investors, he said transfer of funds is allowed through any authorised bank in freely convertible currency of net profits, foreign loan repayment, royalties, charge fees in respect of foreign technology, proceed remittances and emolument payments.

SOURCE: THE GUARDIAN