Tanzania gazettes new investment and special economic zones regulations

Dar es Salaam. The Tanzanian government has officially published the Investment and Special Economic Zones Regulations, 2025 designed to streamline investment procedures and enhance the country’s appeal to both local and foreign investors through a clear and predictable legal framework.

The regulations were published on September 3, 2025 after they had been gazetted on July 25, 2025 under Government Notice No. 466.

The regulations, formulated under the Investment and Special Economic Zones Act, No. 6 of 2025, come after the operationalization of the Tanzania Investment and Special Economic Zones Authority (TISEZA) that was crafted following the merger of the former Tanzania Investment Centre (TIC) and the Export Processing Zones Authority (EPZA).

Investor Registration, Investment Certificate

The new regulations set out detailed procedures for investor registration and the issuance of an Investment Certificate.

To qualify, investors must meet specific capital requirements depending on the ownership structure of the business.

New foreign-owned businesses or joint ventures must have a minimum investment capital of USD500,000 (approximately TSh1.5 billion), while existing businesses seeking a certificate require at least USD100,000.

Fully Tanzanian-owned businesses must demonstrate a minimum capital of USD50,000 (TSh150 million).

Applications must be submitted to TISEZA and include a comprehensive business plan, financial statements, and company registration documents.

The Authority is mandated to review applications and issue a decision within 30 days.

The regulations provide robust protection for investors’ assets against unfair seizure, while allowing for lawful expropriation in the public interest, provided adequate and prompt compensation is paid.

The Investment Certificate also guarantees the right to repatriate funds, including profits, loan repayments, and interest, without restriction, and permits the employment of foreign experts in line with immigration laws.

Certificates are valid for five years but may be revoked if conditions are violated.

Investment in Special Economic Zones

Part Five of the regulations details the framework and incentives for investment within Special Economic Zones (SEZs).

These zones are designated areas offering favourable conditions to attract investors.

Investors operating in SEZs are eligible for significant tax incentives, including a ten-year corporate tax exemption and relief from withholding tax on dividends, interest, and rent.

Additional benefits include exemptions from customs duties, value-added tax (VAT), and other levies on capital goods and raw materials, as well as exemptions from land rent, local government taxes, and VAT on utilities such as electricity, water, and telephone services.

SEZ developers, required to have a minimum capital of USD20 million (TSh60 billion), receive further tax and duty exemptions for the construction and operation of infrastructure.

The regulations classify SEZ investors into three categories: Developers, Operators, and Strategic Investors, each entitled to specific conditions and incentives.

Strategic projects, considered vital for national economic growth, such as investments in agro-processing, energy, telecommunications, and manufacturing, are given priority and may receive additional benefits, reflecting the government’s emphasis on high-impact investments.

Key Provisions and Incentives

Developers within SEZs benefit from exemptions from corporate income tax, customs duties, VAT, and other taxes on capital goods, as well as relief from stamp duty and withholding taxes on dividends and interest for the first ten years.

They also enjoy VAT exemptions on water, electricity, gas, and telephone services, and customs duty exemptions on specific administrative vehicles.

Operators in SEZs are granted a ten-year corporate tax exemption and relief from withholding tax on rent, dividends, and interest.

They also benefit from a ten-year exemption from local government taxes and fees on goods produced within the zone.

Producers targeting the domestic market may receive exemptions from customs duties, VAT, and other taxes on raw materials and capital goods.

They also enjoy a ten-year exemption from withholding tax on rent, dividends, and interest, alongside local government tax relief.

By providing a comprehensive legal framework and a suite of incentives, the Investment and Special Economic Zones Regulations, 2025, mark a significant step in Tanzania’s drive to create a more attractive and predictable investment environment for both domestic and international investors.