The criteria used to award Strategic Investor status is captured in Rule 49 of the Tanzania investment Regulations of 2002. Strategic investors are able to enjoy more incentives than normal investors. Criteria used to award such status consider the following:
- The amount of capital to be invested;
- The contribution of the project in terms of creating employment opportunities;
- New and innovative technology to be introduced by the Prospective investors strategic project;
- The extent to which the Project brings capacity to manufacture products for export and the earning of foreign exchange;
- Whether the Investment is in
the Special Economic Zone or Geographically disadvantaged regions.
A business shall be regarded as strategic or major investment if:
(a) locally owned, the minimum investment capital is not less than Tanzanian shillings equivalent to twenty million US dollars (US$ 20,000,000); and
(b) wholly owned by a foreign investor or is a joint venture, the minimum investment capital is less than Tanzanian shillings equivalent to fifty million US dollars (US$ 50,000,000); and
Special strategic investment status may be granted to projects which meet the following criteria
- A minimum investment capital of not less than the equivalent in Tanzanian shillings of three million US dollars (US$ 300,000,000); and
- Investment capital transaction is undertaken through a registered local financial and insurance institutions;
- At least one thousand five hundred direct local employment is created with satisfactory number of senior positions in projects that do not require high and sophisticated technology; and
- Capability to significantly generate foreign exchange earnings, produce significant import substitution goods or supply of important facilities necessary for development in the social, economic or financial sector
All strategic investment projects are approved by the National Investment Steering Committee (NISC).
National Investment Steering Committee
In an effort to improve the business environment and foster economic growth through increased investment, the Government formed a National Investment Steering Committee chaired by the Hon. Prime Minister.
This committee is entrusted with the role of investment policy formulation and solving problems of investors on a fast track basis.
So far, the government, through the NISC, has approved 43 Strategic Investment Projects of which 17 are agriculture sector including livestock projects.