Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA): Invest and Do Business in Tanzania

0
4156

Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA) is a private sector association established in 1988 with the support of the Tanzanian Government to strengthen the private sector. The establishment of the TCCIA was a very important step as the Government was moving from centra-
lized, planned economy towards a more open, mixed economy giving full scope to private owned enterprises and farms.

TCCIA operates in both Regions and districts. TCCIA has 26 Regional Chambers in Tanzania Mainland and over 120 District Chambers in the country, which are semi-autonomous in their operational activities. TCCIA works closely with different international organizations for several of its activities to strengthen private sector in the country while working very closely with the Government of Tanzania for the same objective.

Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA) is a member based Private Sector Organization which works closely with the government of the United Republic of Tanzania to deliver different services to its esteemed corporate and ordinary members across the country.

TCCIA as a PSO in Tanzania has the mandate to issue the certificates of origins (COO) in Tanzania for export facilitation beyond Tanzania boundaries; TCCIA is an important body to facilitate International Trade in Tanzania. Among the chamber services involve business networking, business linkages, business recommendations both local and foreign, business conflict resolutions, trade inquiry, business promotions through the chamber’s trade fairs systems and most of business facilitation services as far as Trade and Business Investment are concerned.

TRADE AND INVESTIMENT IN TANZANIA

Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA) works closely with other Trade and Investment bodies like the Tanzania Trade Development Authority (TANTRADE) and Tanzania Investment Center (TIC) to facilitate International Trade and Investment across the country.

TCCIA champions for its esteemed members across the country as well as international partners outside Tanzania, to which have mutual agreements (MOUs) on business promotion and trade facilitation for the interest of both countries.

Tanzania Investment Center (TIC) works to facilitate trade and investment in the country, Tanzania is endowed with many natural resources and investment op-
portunities. The Government of the United Republic of Tanzania has simplified most of its investment regulations to attract investors from all around the world. Investment in Tanzania is overseen by the Tanzania Investments Centre (TIC), a one-stop primary Government agency responsible for all investment matters.

The Tanzania Investment Center has the following functions:

I.Promoting investment activities in Tanzania;

II. Addressing administrative constraints facing local and foreign investors;

III. Assisting in the establishment and registration of enterprise processes;

IV. Facilitating investors in obtaining necessary licenses, work permits, visas, approvals, facilities or services;

V. Assisting investors to secure investment sites and the establishment of Export Processing Zone (EPZ) projects especially in the Agricultural, Mining, Infrastructure, Fisheries and Tourism sectors;

VI. Granting Certificates of Incentives, investment guarantees and registering technology agreement for all investments which are over and above US$ 300,000 and US$100,000 for foreign and local investments, respectively;

VII. Providing and disseminating up to date information on existing investment opportunities, benefits and incentives available to investors: and

VIII. Facilitating investors to have smooth working relationships with Public and Private Sector bodies such as Tanzania Chambers of Commerce, Industry and Agriculture (TCCIA), Confederation of Tanzania Industries (CTI), Tanzania National Business Council (TNBC), Tanzania Private Sector Foundation (TPSF)

THE INCENTIVES AVAILABLE TO THE HOLDERS OF TIC CERTIFICATES OF INCENTIVES ARE:

The recognition of private property and protection against any non-commercial risks, Tanzania is an active member of MIGA (Multilateral Investment Guarantees Agency). Likewise Tanzania is also a member of The International Centre for Settlement of Investment Disputes (ICSID) so investors have unrestricted rights to International arbitration in case of dispute with government.

I. Reduced import tariff on project capital items (5% import duty for investments in priority sectors and ZERO% for investment in Lead Sectors).

II. Favorable investment allowances and deductions i.e. capital allowance (100%) on industrial buildings, plant and machinery and on agricultural expenditure.

III. Deferment of VAT payment on project capital goods as defined in the tariff book and its relevant annexes deferred VAT to be shown on monthly return after which it will be extinguished unless it is discovered otherwise after audit.

IV. Imports Duty drawback on raw materials.

V. Zero-rated VAT on mining inputs, agriculture inputs, goods manufactured for exports, foodstuff and tourism.

VI. Straight line accelerated depreciation allowance on capital goods.

VII. Up to five years carryover of all business losses against future profits.

VIII. Up to five years carryover of all business losses against future profits.

IX. A reasonable corporate tax rates 30% and low withholding tax on loan interest payments.

X. The unrestricted right to transfer outside the country 100% of foreign exchange earned profits and capital.

XI. Tease of obtaining other permits such as Residence/Work Permits, industrial licence, trading license etc. through one-stop-shop operation of TIC.

XII. Automatic permits for employing an initial quota of 5 foreign nationals on the project holding Certificates of Incentives.

Mining and backup services to the mining industry incentive for projects in economic infrastructure

The incentives are the same as in mining sector

INCENTIVES FOR TOURISM SECTOR

In addition to the incentives provided to holders of Certificates of Incentives item in “ECONOMIC INFRASTRUCTURE” all essential hotels facilities are treated as capital goods as spelt out in the Capital Goods schedule annexure.

INCENTIVES FOR AGRICULTURE SECTOR

I. Zero-rated duty on capital goods, all farm implements, fertilizers, pesticides etc.

II. Zero-rated VAT on capital goods, all farm implements, fertilizers, pesticides etc.

III. Other incentives as under item in “ECONOMIC INFRASTRUCTURE”

Incentives offered under petroleum exploration and development basic documents required by the Tanzania Investment Centre (tic) in order to register your investment

FACILITATION SERVICES AND FEES

TIC renders services to facilitate all Investors whether covered by the TIC Act (1997) or not.

Facilities Fees:

  • Certificate of incentives US $750
  • Application Forms US $120
  • Other Services: 10% on top of what is charged by relevant Departments

ZANZIBAR BLUE ECONOMY

Zanzibar has set aside Sh149 billion to stimulate growth in areas directly linked to its blue economy initiative as the semi-autonomous Indian Ocean archipelago marks the 58th anniversary of the January 12, 1964 revolution.

That revolution resulted in the overthrow of the Sultan of Zanzibar and his mainly Arab government by local African revolutionaries.

President Hussein Ali Mwinyi, who took the reins of power after the October 2020 General Election, touted the blue economy as the best way to develop Zanzibar’s economy.

The World Bank defines a blue economy as the “sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of the ocean ecosystem”.

In his recorded national address to mark the 58 years of political independence from the Sultanate, Dr Mwinyi said his government had developed all legal frameworks and key policies for the implementation of the strategic economic plan.

The Sh149 billion fund would be used to empower stakeholders like fishermen, aquaria developers and growers of sea crops, he said.