TANZANIA INVESTMENT CENTRE - TIC

As a primary agency of the Government in all investment matters, TIC is charged with the following functions:

• Assist in establishment of enterprise e.g. incorporation and registration of enterprises;

• Obtain necessary licenses, work permits, visas, approvals, facilities or services;

• Sort out any administrative barriers confronting both local and foreign investments;

• Promote both foreign and local investment activities;

• Secure investment sites and assist investors to establish EPZ projects;

• Grant Certificates of Incentives, investment guarantees and register technology agreement for all investments, which are over and above US$ 300,000 and US$100,000 for foreign and local investments respectively;

• Provide and disseminate up to date information on existing investment opportunities, benefits or incentives available to investors: and

• Assist all investors whether or not registered by TIC.

In order to strengthen and expedite facilitation services, eight senior officers from Government or its executive agencies have been permanently stationed at TIC to serve investors under the general direction of the TIC Executive Director. Presently these officers include those from:

• Lands Department

• Tanzania Revenue Authority (TRA)

• Immigration Department

• Labour Division

• Directorate of Trade

• Business Registration & Licensing Agency (BRELA)

Certificates of Incentives
All Government departments and agencies are required by law to cooperate fully with TIC in facilitating investors. The Centre issues a formal Certificate of incentives, which serves as the official recognition of ones investment status in the country.

Although for approval and registration, enterprises engaging or intending to engage in mining and petroleum sector are obliged to follow the approval process contained in their perspective laws [Mining Act 1998 and Petroleum (Exploration and Production) Act, 1980] as required by section 6(1) of the Mining Act 1998 and section 19 (for exploration license) of petroleum Act 1980; the Centre will help all these investors to obtain permits and authorizations required by other laws to set up and operate businesses in Tanzania.

Procedures to Obtain Certificate of Incentives

In order to issue a certificate of incentives, the following documents are required:

• Three copies of the projects business plan/feasibility study

• One copy of Company Memorandum & Articles of Association

• One copy of Certificate of  Incorporation

• Three copies of TIC application forms

• One copy of Company board resolution

• One copy of evidence of land ownership (Title deed/lease agreement or sale agreement)

• One copy of evidence of financing (Bank reference letter or a letter form the Bank indicating that the loan is being processed.

• Covering letter

Facilitation Services
In an effort to improve investors’ service the Centre has adopted a new operational system by introducing “Relationship Manager” concept. Each “Relationship Manager” is assigned a portfolio of investment projects which he/she is responsible for serving throughout the investment process.

This includes providing information, assisting investors to obtain approvals and permits without requiring the investors to move from one office to another.  The investors obtain all their requirements at TIC.

In order to avoid delays, a time limit has been allocated for each process. To augment this service, relevant service officers from the Government Ministries and Departments have been physically stationed at TIC.

Business Registration and Licenses
An application for company registration can be forwarded to TIC and it will be processed on behalf of the investors. The procedures and requirements for successful application are illustrated under registration with Business Registration and licensing Agency (BRELA). Applications for business licenses are also processed through TIC assistance.

Registration with Tanzania Revenue Authority (TRA)
Registration with Income Tax and VAT Department can be done at TIC offices through TRA officers stationed at the Centre. Requirements for successful registration are illustrated under registration with Income Tax Department and registration with VAT Department.

Residence/Working Permits and Visas
With the assistance of TIC through Immigration Department and Labour Division officers at the Centre, residence permits class “A” and “B” are fulfilled.

Investors’ access to Land
As investment land was a major obstacle for investments, Tanzania Investment Centre has been assigned the duty to provide land management and land delivery services to both local and foreign investors. Land bank has been established and 743 land parcels (3.14m hectares) were verified of which 2.5m hectares are suitable for investment purposes.

As appropriate land reserved for investment has been identified, investors will be advised and given details on the available land in view of the Investment type he wants to venture in. 

TIC Zonal Offices

Tanzania Investment Centre has established Zonal offices in Moshi and Mwanza in order to assist Investors who are based in nearby regions to access TIC’s services without necessarily travelling to Dar es Salaam. Furthermore the Centre is currently working on establishing a third Zonal Office in Mbeya region.

The Zonal offices are responsible in assisting investors to obtain all relevant permits, approvals and licenses they require in order to set up their business. To develop SMEs, the zonal offices in collaboration with the TIC head office identifies and assist them to develop their entrepreneurial skills and to prepare feasible projects that qualify for access to finance, technology and joint venture partners.

Development of Domestic Investors and Small and Medium size Enterprises (SMEs).
The centre has the role of promoting domestic investment projects and small and medium enterprises, by identifying feasible projects from domestic investors seeking partnership, technology, equity finance and loans throughout Tanzania.
 
The exercise entails preparation of project profiles, which will be promoted through international investors’ seminars, TIC Website, Government Website, UNIDO and UNCTAD websites.

On SMEs, the centre in Collaboration with SIDO conducts sensitization seminars for district and municipal authorities to assist in the growth of viable SMEs. TIC advocates the removal of costly legal and regulatory framework to facilitate easier company registration and business licensing, develop entrepreneurship capabilities and assist SMEs in securing capital for the projects.

Relationship with the Private Sector
TIC works closely with Private Sector bodies such as Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA), Confederation of Tanzania Industries (CTI), Tanzania National Business Council (TNBC), Tanzania Private Sector Foundation (TPSF) and Chief Executive Officers of major Companies in Tanzania.

TIC also has good working relationship with donors and UN Agencies such as the Britton Wood Institutions, USAID, BEST Group (DANIDA, DFID, SIDA and The Royal Nether Lands Embassy).

The National Investment Steering Committee (NISC)
The National Investment Steering Committee was established in September 2000. The Committee, which is chaired by the prime Minister, was mandated to resolve investment issues that cut across different sectors on a fast track manner. The National Investment Steering Committee is comprised of highly powered cabinet Ministers including Attorney General, the Governor of the Central Bank with Executive Director – TIC as secretary.

Summary of Registered Projects from 1990 - Dec 2005
Between September 1990 and December 2005, TIC was able to register 3,531 projects, which are worth about $17.2 billion in value employing about 609,259 people. The table below shows the number of projects that have been registered in each sector in the category of either local, foreign or joint venture ownership

Leading countries that have invested in Tanzania
Many countries in the world have invested in Tanzania. The top ten countries that have invested in Tanzania between 1990 and 2005 include UK (23%), India (18%), China (13%), South Africa (10%), Netherlands (10%), Kenya (9%), USA (8%), Canada (6%), Italy (2%) and Germany (1%).

Projects registered with TIC
Projects that have been registering with TIC had been on the increase from about 111 projects (worth $650m) in 1996 to 550 projects (worth $17,153m) in 2005.

Structure of investment ownership
The structure of ownership of investments that have registered with TIC between 1990 and 2005 indicate local investments (45%), foreign investments (25%) and Joint venture (30%).

Foreign Direct Investment (FDI) in Tanzania
According to the World Investment report (2005), world FDI flows in 2004 was $648 billion of which only $18 billion (3%) came to Africa.  As shown in the figure below, Tanzania had a slight decrease in FDI inflows from $527m in 2003 to $470m in 2004.

5.4 Facilitation Fees
TIC currently charges the following fees for the facilitation process:

• Certificate of Incentives: US$ 750

• Application forms: US$ 100

• A facilitation fee of 10% of the total fees payable to various institutions as indicated on the client charter is payable to Tanzania Investment Centre

Tanzania Investment Centre can arrange special Facilitation services on request.

For further information, please contact;
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

Please visit their website on www.tic.co.tz for the relevant documents required for all stages of the investment process.