Tanzania Postal Bank - Western Union Presentation Diaspora III London11
Tanzania Investment Centre - Diaspora III London 2011
1. 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
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3. One Stop Shop BUSINESS LICENSES TAX REGISTRATION IMMIGRATION COMPANY REGISTRATION LABOUR LAND ISSUES INFORMATION DESK AFTERCARE SERVICES
4. 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
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6. 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…
11. 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
14. 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;
15. 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
16. 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
19. 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
20. 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.
21. 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
22. 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
25. 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
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29. Come & Grow with your COUNTRY It is possible, it can be done…..You need a good plan, focus and perseverance. Many ….have done it!!
30. Thank You For Your Kind Attention www.tic.co.tz