Tanzania has introduced innovative legislation allowing for increased foreign direct investment into the country, including into the tourism and hospitality sector. The Tanzania Investment Centre is a one-stop shop for foreign investors wanting to invest in the country.

1. Creating an Enabling Environment for Investments Garden Court OR Tambo International Airport, September 1, 2014
TANZANIA NATIONAL PARKS
Dr. Ezekiel Dembe

2. Tanzania Overview
•Tanzania is home to the Kilimanjaro, Zanzibar and the Serengeti.
•Tanzania is a top safari destination in Africa
•Three natural wonders (The Serengeti, Ngorongoro Crater and Kilimanjaro)
•It is a mega biodiversity nation second only to Brazil
•Only a fraction of it is developed for tourism.
Dr. Ezekiel Dembe

3. Tanzania and Investments
•Tanzania has made significant progress in moving from a centrally- planned economy to a market-based regime.
•Government has an innovative investment legislation that allows for increasing number of foreign direct investments and economic and structural reforms
Dr. Ezekiel Dembe

4. Supporting Investment Infrastructure
Tanzania Investments Centre (TIC)
•TIC is a strong institution and is a One Stop Centre for all investors. TIC coordinates, encourages, promotes and facilitates all investments in Tanzania.
•TIC undertakes the following:-
•(i) Investments facilitation;
•(ii) Business licensing and registration;
•(iii) Land issues;
•(iv) Labour issues; (v)
•Tax registration; and
•(vi) After Care Services.
Dr. Ezekiel Dembe

5. Supporting Investment Infrastructure….
Attractive investment fiscal regime
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.
Dr. Ezekiel Dembe

6. Supporting Investment Infrastructure….
Tanzania National Business Council
Since 2002 Tanzania has established the Tanzania National Business Council which is the Lead Dialogue Institution where Government interact with diverse stakeholder representatives from the Private Sector for dialogue on strategic issues related to the investment process and business environment in Tanzania.
The Council (TNBC) has 50 percent members from the Private sector and 50 percent members from the Government. The Council is chaired by the President of Tanzania. The President’s commitment to transparency manifests itself in the workings of the Roundtables such as the local Investor’s Round Table (LIRT), International Investor’s Roundtable (IIRT) and the Chief Executive Officers (CEO) roundtable where the President meets private sector representatives on a regular basis to discuss specific issues aimed at improving Tanzania’s business competitiveness.
Dr. Ezekiel Dembe

7. Tanzania National Parks (TANAPA)
•TANAPA is a government parastatal organization established by an Act of parliament in 1959. This organization manages 16 national parks in Tanzania mainland. The national parks are spread all over the country, covering a total area of about 4.5% of Tanzania.
•TANAPA is not subsidized by government instead pays taxes to the government.
Dr. Ezekiel Dembe

8. 16 National Parks
Dr. Ezekiel Dembe

9. Policy Framework
Investments in the National Parks are guided by:
•The National Policies for National Parks in Tanzania (1994, revised in 2012);
•TANAPA Development Action License Procedures (DALP) of 1995, revised 2012 and;
•Specific Park’s General Management Plans (GMPs).
Dr. Ezekiel Dembe

10. Investment Incentives (TIC)
Non Fiscal Incentives and Fiscal Incentive
•Zero percent (0%) Import Duty and VAT exemption on capital goods and Import Duty Back Scheme.
•Refund of duty charged on imported used for producing goods for export and goods sold to foreign institutions like the UN and its agencies operating in Tanzania.
Dr. Ezekiel Dembe

11. Non Fiscal….
•The recognition of private property and protection against any non- commercial risks.
•Allowed to repatriate all your profits, gains and dividends from investment after tax.
•Favorable Investment allowances and deductions
Dr. Ezekiel Dembe

12. TANAPA investment incentives
•Free park entry during mobilization and construction stage.
•All staff living in the parks are given free entry permits
•All administrative vehicles are given free entry permits
•Directors and family members pass with a minimal annual fee of US $ 100
•A grace period of six months for not paying concession fees after opening the facility
Dr. Ezekiel Dembe

13. Investment Guarantees (TIC)
•Tanzania is a member of Multilateral Investment Guarantee Agency (MIGA) member of World Bank and African Trade Insurance Agency (ATIA). The two Institutions provide political risks insurance guarantee to the private sector
•Tanzania is an active member of World Bank Foreign Investment Insurance wing Multilateral Investment Guarantees Agency ( MIGA)
•Tanzania is also member of the International Centre for Settlement of Investment Disputes (ICSID) also a body affiliated to the World Bank.
Dr. Ezekiel Dembe

14. TANAPA Investment Procedures
National Policies for National Parks in Tanzania
According to the National Policies for National Parks in Tanzania, TANAPA will encourage all major developments only if:
•All the criteria are met for specific park uses.
•The development will be located in development zones established in the park’s approved GMP
•There is a complete and thorough site specific environmental impact assessment of the action.
Dr. Ezekiel Dembe

15. TANAPA Investment Procedures…
TANAPA Development Action License Procedures [DALP] 2012:
•This is a document which provides a step by step procedure for seeking approval to develop facilities in the National Parks.
•All investments in the National Parks are guided by this document from project design layout, implementation, up to monitoring and evaluation stages.
Dr. Ezekiel Dembe

16. TANAPA Investment Procedures…
License Agreements
•All developers are issued a license agreement with specific requirements on how construction and operation of the investment would be carried out.
•Investment by a foreign company is for an initial license term of not exceeding 15 years for permanent tented camps and not exceeding 20 years for lodges/hotels
•Investment by a local term is of an initial license term of not exceeding 15 for tented camps and not exceeding 25 years for lodges/hotels.
•After the license term ends, they will be renewed and thereafter the property may revert back to TANAPA.
Dr. Ezekiel Dembe

17. TANAPA Investment Arrangements
•Private owned
•TANAPA Owned
•Joint Venture (TANAPA and Private Sector)
Note: All TANAPA license and non-license accommodation categories will prohibit the concessionaire from establishing any type of procedures that will result in discrimination or “exclusive use” of the facility.
Dr. Ezekiel Dembe

18. TANAPA Investment Criteria
Once sites are available for investment in the National Parks, the sites are advertised to the public through news paper and the TANAPA website.
Multiple Selection Criteria
•Investors are required to submit project proposals, which are used by a multidisciplinary team to select the best investor. Once a competent developer has been selected by the Board, that developer is given a go ahead to survey for water (normally from ground water sources), develop a full project proposal and finally carry out environmental impact assessment of the proposed development before commencing construction. The license is given by the Minister of Environment under the guidance of the National Environment Management Council (NEMC).
Dr. Ezekiel Dembe

19. Criteria….
Single Selection Criteria
•A potential investor is given a provisional letter of offer indicating the type of investment and where the investment can take place.
•Once a competent developer has been selected, the developer first surveys for water (normally from ground water sources), develops a full project proposal and finally conducts environmental impact assessment of the proposed development before commencing construction.
Dr. Ezekiel Dembe

20. Type of Investments
•Accommodation facilities
 Hotels
Lodges
Tented camps
•Balloon safaris
•Canopy walkways
•Cable car safaris
•Water sports - Boat cruises in four parks: Saadani (Indian Ocean), Gombe (Lake Tanganyika), Mahale (Lake Tanganyika) and Rubondo (Lake Victoria)
Dr. Ezekiel Dembe

21. Challenges
•Protection of tourism products such as elephants and rhino
•Political influence
•Insufficient infrastructure to the parks
•Population increase around the parks (human- wildlife and boundary conflicts, diseases)
•Incompatible land use practices, and
•Security
Dr. Ezekiel Dembe

22. Dr. Ezekiel Dembe