Tanzania continues to improve the investment climate through regulatory reforms. During the month of February 2023, the government has tabled before the Parliament a bill to amend the Public-Private Partnership Act through GN No. 2 of 2023.
The bill proposes to amend the PPP act, Cap 103 [RE 2018] by removing the obligation for a private party to deposit 3% of the project value; PPP projects to benefit from tax incentives; contracting authority is authorized to procure privately, parties are at liberty to choose the means of dispute settlement including ICSID; establishment of Special Purpose Vehicle (SPV) and the PPP Act to supersede other written laws.
The amendment of the PPP Act set a better investment ground in terms of a soft landing and smooth operationalization of PPP projects.
The new investment act, Tanzania Investment Act No. 10 of 2022 was enacted to replace the long overstaying Tanzania Investment Act No. 26 of 1997.
The new act provides extra incentives to investors including lowering the capital investment threshold requirements from USD 100,000 to USD 50,000 for local investors; eligibility for expansion and rehabilitation projects to access both fiscal and non-fiscal incentives granted by the National Investment Steering Committee (NISC)