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Tanzania Investment Centre - Diaspora III London 2011

Tanzania Investment Centre - Diaspora III London 2011



Courtesy of TIC as presented at Diaspora III Conference In London May 2011 Edition.

Courtesy of TIC as presented at Diaspora III Conference In London May 2011 Edition.



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    Tanzania Investment Centre - Diaspora III London 2011 Tanzania Investment Centre - Diaspora III London 2011 Presentation Transcript

    • Investment Opportunities for the Diaspora Tanzania Diaspora 3 Conference London, UK 6-7 May, 2011 Presentation by: Patricia Mhondo, Manager Foreign Investment Promotion Tanzania Investment Centre, Tel: +255 22 2116328-32, mhondo @tic.co.tz United Republic of Tanzania Tanzania Investment Centre
              • OUR TASKS
              • Investment Promotion
              • Investment Facilitation
              • After Care Services to Investors
              • Business Linkages
              • Research and Information
    • According to African Development Bank and World Bank Reports, 30 Million Africans across the globe have directly invested 40 Billion USD . Officially recorded remittance flows to developing countries are estimated to increase by 6 percent to $325 billion in 2010. African Diasporas Investment
    • Source: Bank of Tanzania (Tanzania BOP statements). Tanzania Remittances, 2005 – 2010 (in US $ Millions) * Note: Only about 0.06% of remittances coming to Africa.   The figures above comprise  both compensation of employees and workers remittances from abroad.             2005 2006 2007 2008
      • 2010
      10.2 6.4 6. 0 9.3 11.4 Workers' Remittances ( Staying more than a year ) 9.2 9.0 8.3 9.3 11.9 Total Diaspora Remittances 19.4 15.4 14.3 18.6 23.3 25.0
    • Africa is perceived as a continent of war, corruption, diseases, political turmoil etc and that most foreign investors wouldn’t like to be associated with such a continent. The few investors that have already invested in the continent know that the rate of return on investment is higher in African than in any other developing region. An analysis by The Economist finds that over the ten years to 2010, six of the world’s ten fastest-growing economies were in sub-Saharan Africa . Over the next five years Africa is likely to take the lead. Africa is the Best Region to invest…
    • Africa is the Best Region to invest…
      • You are in a better position to succeed in your home countries because:
      • - Can easily create both Government and private networks in their respective countries
      • Easy access to land and other important information
      • Know the environment
      • - etc
      Invest Home… Its easier for Diasporas …
    • Invest Home… Its easier for Diasporas …
      • You are in a better position to :
      • write best business plans
      • Source Interested investors
      • Learn and understand global issues
      • To source finance
    • TANZANIA Investment Climate
    • Labour Force: 20.38 million (2009 est.) T A N Z A N I A’S E C O N O M Y Population: 41.8 Million (2010 est.) Inflation 6.4% (Jan 2011) GDP Growth Rate < 5.4% (2009 Est.) GDP Per Capita $ 517 (2009 Est.) GDP $ 22.4 Billion (2009 Est.) Tanzania contains a total area of 945,087 sq km The economy depends heavily on agriculture , which accounts for more than 40% of GDP, provides 85% of exports, and employs 80% of the work force . Labour Force: 20.38 Million (2009 est.) Annual Budget (2010/11) : TShs 4.7 Trillion Av. Monthly tax collection (2010/11): TShs 390 Billion Bank Reserves (2010/11) : Tshs 3,551.3Billion Source: NBS/BOT
    • Trend and Structure of Tanzania Imports
    • Tanzania: Production of Selected Major Crops
    • EAST AFRICA About 130M People AGOA (USA) Africa Growth and Opportunity Act Over 6,000 items China Over 4,000 Items Negotiated EPAs-EBA, Everything But Arms SADC 300m People Japan, Canada etc Market Access Tanzania enjoys Preferential Mar ket Acc ess with;
    • TREND OF PROJECTS REGISTERED WITH TIC FROM 2000 TO 2010 Number of Projects Projection The decline from 2008 – 2010 is due to Financial Crisis. But as predicted The U-Scenario shows the pick of investments from 2010-2011 on wards Source: TIC data
    • Structure of ownership of projects registered by TIC 2000- 2010 Source: TIC Database Foreign =1,241, Joint Venture = 1,323 and Local = 2,391 Domestic Investors Foreign Investors Joint Investors
    • Ten leading countries that have invested in Tanzania (by Value Million US$ ) 1990 –2010 Source: TIC Database
      • UKTI
      • Chambers of Commerce
      • FDI Intelligence
    • Investment Incentives
    • Investment in Tanzania is guaranteed by constitution and is guaranteed against Nationalization and Expropriation. Tanzania is a member of both the International Centre for Settlement of Investment Dispute (ICSID) and Multilateral Investment Guarantee Agency (MIGA). We have in place Investment Guarantees and Settlements of Disputes
    • Tanzania has Stable and Predictable Fiscal Investment Regime - providing a Soft Landing to all investors. It recognizes that investors need to recover their Investment Costs first before paying corporation tax. All capital goods and raw materials are not taxed . Investors in Tourism sector in Tanzania are for example allowed to import all establishment equipment as deemed capital goods It has put in place an attractive Investment Fiscal Regime Provision of Capital allowance and carrying forward of losses.
    • All capital goods and other projects establishment items under various Sectors are exempted from IMPORT DUTY AND VAT , Such Sectors include : Agriculture and Livestock – farm implements inputs etc are tax zero rated Real Estate and Commercial Buildings – all building materials certified by quantity surveyor and necessary structures are tax zero rated as deemed capital goods. Tourism and Tour Operation – building materials, motor vehicles for tour operators are tax zero rated as deemed capital goods Finance and Commercial Banks – building materials and banking equipments are tax zero rated as deemed capital good Telecommunication, Health, Education and other Services – establishment equipments are also tax zero rated as deemed capital goods Energy Sector – establishment equipment are exempted from import duty and VAT Mining Sector - has tax exemption from exploration stage to production stage It has put in place an attractive Tax Investment Incentives
    • Free repatriation of funds In addition to the incentives that the government provides for investors in Tanzania, the Government is continuing to work on reducing the cost of doing business in Tanzania Transfer of funds is allowed through any authorized bank in freely convertible currency of net profits, repayment of foreign loans, royalties, fees charges in respect of foreign technology, remittance of proceeds and payment of emoluments, etc
    • Investment Opportunities in Tanzania
      • 1. Agriculture and 2. Agribusiness
      • In Addition To
      • Traditional Crops
      • Horticulture
      • Floriculture
      • Fish And
      • Aquaculture
      • Sugar Ethanol
      • Palm Oil And
      • Jatropha
      • Pyrethrum And
      • Artemisia
      • Organic Cotton
      • 3. Extractive Industries
      • Minerals – Base
      • Metals and Gemstones
      • Gold
      • Tanzanite
      • Hydrocarbons:
      • Oil And Natural Gas
      • Coal
      • Refining, Processing,
      • Smelting, Cutting
      • And Polishing
      • 4. Infrastructure 5. Tourism
      • Power Beach Tourism
      • ICT Backbone Conference Tourism
      • Roads Sports/Golf Tourism
      • Seaports City Tourism
      • Airports Medical Tourism
      • Historical Tourism
    • The Government is in the process of identifying suitable land for investment purposes in the whole country. The following is information on some of the Surveyed Land that has been identified: LAND BANK Source: TAMISEMI/TIC Ownership Surveyed Land (Ha) Non-surveyed Land (Ha) 1 Public Institutions 162,748 1,000 2 Central Government 160,954 2,433 3 Local Authority 89,867 363,238 4 Village Land 111,408 669,620 5 Private Land 103,013 1,226.48 TOTAL 627,990 1,037,517.48
      • Tanzania has recently enacted a Public Private Partnership (PPP) Legislation
      • The objectives of PPP Act is to promote private sector participation in the provision of public services through public-private partnership projects in terms of investment capital, managerial skills and technology.
      • All PPP projects will be promoted and coordinated by TIC and the Ministry of Finance will host the finance unit
      • Such projects will include major projects of infrastructure, agriculture, energy, service sector, transportation etc
      Private Public Partnership Act, No. 19, 2010
      • Diaspora can access these projects for investment purposes through TIC. You may act as a consultant who is able to have this information and You may seek investors of financiers who may be interested in developing these
      • Investments. We have projects in the following sectors:
              • Agriculture
              • Mining
              • Power
              • Infrastructure
              • Tourism
      • The booklets have information on projects and contact persons. TIC can assist and link you to the project owners .
    • C O N C L U S I O N
      • Take advantage of the exposure you have, explore and bring home the benefits…
      • Challenges are always there. Let us have your views, concerns, advice, recommendations on how we can work together better especially on issues of investment opportunities and incentives for diasporas.
      • Our Corporate plans emphasize on development of local investors, no country in the world got development by foreign investment only. You are part of our local investors.
      • Contact TIC directly or through our High Commission to get important business and other information. We are your partners in business development.
    • Come & Grow with your COUNTRY It is possible, it can be done…..You need a good plan, focus and perseverance. Many ….have done it!!
    • Thank You For Your Kind Attention www.tic.co.tz