- This follows a move by Zanzibar to initiate a programme to allow foreign investors to easily take advantage of tax and residency benefits for investment on the Isles
Dar es Salaam. The United States Wednesday commended Tanzania for the efforts the latter is making towards attracting more foreign investment in the country.
US ambassador to Tanzania Donald Wright made the remarks as he reacted to recent measures by Zanzibar to initiate a programme that would allow foreign investors to more easily take advantage of tax and residency benefits for investment on the Isles.
Zanzibar’s latest measure is continuation of Tanzania’s efforts towards creating an enabling climate for investment by advocating for a friendly taxation regime and policy predictability.
“These types of policies continue to make Tanzania and Zanzibar more attractive to US investors,” noted Ambassador Wright.
“Since my arrival to Tanzania over a year ago to serve in my role as US Ambassador, one of my key areas of focus has been to develop two-way trade and investment between Tanzania and the US,” he said.
He was speaking during the official opening of Re/Max Coastal Realty offices -- boutique real estate firm which will focus on rental and sales of residential, commercial and luxury real estate.
He expressed his gratitude with the way each time a US business opened its doors in Tanzania, saying that was making bilateral relationship between the two countries stronger.
This year Tanzania and the US are celebrating the 60th anniversary of a strong bilateral relationship.
“We are excited to see more and more US companies investigating the Tanzanian market for trade and investment opportunities,” noted the envoy.
This, he added, will eventually lead to those companies needing assistance finding commercial and residential real estate to support their business operations.
The commercial relationship is a vital element of the sustained ties that the two countries have enjoyed.
“With Re/Max’s expansion in Tanzania, US and other investors will have a globally recognised advisor to assist them in making these important business investment decisions,” noted Mr Wright.
Explaining about the incentives, Zanzibar’s Finance Minister Jamal Kassim said the revolutionary government had recently passed the attractive policy incentive to the real estate industry.
He said for investors coming with an investment capital of at least $100 million (about Sh230 billion), they were now enjoying exemption on import duty and Value Added Tax (VAT) on equipment meant for the project.
Further, for a buyer of residential houses, he would now be able to get a permanent residential permit.
“If the buyer of a residential house and his or her dependents want to come to Zanzibar, they don’t need to have a visa. Again, if the house is sold, no withholding tax will be charged,” said the minister, detailing that all this was meant to attract investors to invest in the sector.
The director and owner of the Re/Max, Ms Stephi Hill, the native of Denver, USA, said the office in Dar es Salaam brings professionalism and expertise with more than 32 years of combined experience in real estate.
“The Tanzanian industry/ consumer confidence is at a record high and there is an increase in interest by foreign investors, creating growing demand for residential and commercial real estate here in Dar es Salaam,” she said.
Re/Max Tanzania regional director James Prevost expressed his excitement about the potential in Tanzania.
“We honored to be part of this groundbreaking opportunity to take part in the development of the formal real estate sector and the imminent boom in the property market,” he told the gathering.