Investment centre targets $5bn FDI inflows by 2020

What you need to know:

However, according to the TIC acting director of research, planning and information systems, Mr Ayubu Sizya, the main challenge so far is outdated policy, laws and regulations.

Dar es Salaam. The Tanzania Investment Centre (TIC) is targeting to more than double foreign direct investments (FDI) inflows to $5 billion in 2020.
The World Investment Report 2015 indicates that Tanzania had attracted $2.1 billion FDI inflows but the state-owned agency says it targets $5 billion by 2020.
However, according to the TIC acting director of research, planning and information systems, Mr Ayubu Sizya, the main challenge so far is outdated policy, laws and regulations.
The National Investment Promotion Policy was last reviewed in 1996 and the agency says that is too far to suit the current investment environment.
“Many things have changed between then and now,” said Mr Sizya adding that they were in the process of reviewing the laws.
“For instance, the dairy sector is governed by different laws that allow different parties to impose charges on the dairy investments. We want to make sure that Tanzania is attractive enough to compete with other countries. These investors are one of the largest taxpayers.” TIC organised a workshop for journalists to create public awareness and the role it plays in promoting, facilitating and stimulating investments.
TIC acting executive director Clifford Tandari said talks were underway with a Chinese investor based in Ethiopia to establish a factory for leather products.
He hopes the deal would be struck also for the benefit of livestock keepers.
“Once this is done then the local leather will contribute more to the economy through jobs and even stimulate modern livestock keeping,” said Mr Tandari as he opened the workshop.
“We hope that will also reduce conflicts between pastoralists and farmers,” he added.
He said TIC was now ‘new’ and would like to review laws to attract more investors as the new government is focusing on industrialization.