Foreign direct investment in Tanzania has entered a new regulatory phase following the establishment of the Tanzania Investment and Special Economic Zones Authority (TISEZA) in 2025. For foreign investors, the practical question is no longer simply whether Tanzania welcomes international capital, but how an investment should be structured, registered and kept compliant under the current framework.
The Tanzania Investment and Special Economic Zones Act, 2025 established TISEZA as the principal institution responsible for investment promotion, coordination and facilitation, while also bringing special economic zone functions into the same institutional framework. TISEZA became operational on 1 July 2025.
This guide explains what foreign investors need to understand about the current investment framework, including TISEZA registration, business establishment, incentives, regulatory approvals and ongoing compliance.
What is the current framework for foreign direct investment in Tanzania?
Foreign direct investment in Tanzania is now primarily administered through the Tanzania Investment and Special Economic Zones Authority under the Investment and Special Economic Zones Act, 2025.
TISEZA was created through the consolidation of the former Tanzania Investment Centre and Export Processing Zones Authority. The reform is intended to provide investors with a more centralised investment facilitation system and a single institutional point of contact.
The current framework includes:
- The Tanzania Investment and Special Economic Zones Authority Act, 2025
- The Tanzania Investment and Special Economic Zones Regulations, 2025
- The Tanzania Investment Regulations, 2023, where applicable
- The Finance Act, 2025
- Sector specific legislation and licensing requirements
- Tax, employment, immigration, land, environmental and foreign exchange rules
TISEZA’s official publications currently list the 2025 Authority Act, the 2025 Investment and Special Economic Zones Regulations and the 2025 Finance Act among the principal instruments relevant to investors.
What changed from the TIC framework?
Before July 2025, foreign investors generally dealt with the Tanzania Investment Centre for investment facilitation while EPZA handled export processing and special economic zones.
The new structure consolidates these functions under TISEZA. The authority describes itself as the apex institution responsible for investment promotion, coordination and facilitation, together with the development and management of special economic zones.
For investors, this matters because the institutional route for investment facilitation has changed. Existing legal, tax and sector requirements have not simply disappeared because the investment authority has changed.
How does TISEZA registration work for foreign investors?
TISEZA registration is the principal investment facilitation route for qualifying investments under the new framework.
TISEZA operates a One Stop Centre intended to coordinate investment related services and connect investors with the relevant government authorities. The new framework also provides for an integrated electronic system connecting authorities involved in licences, permits, approvals and consents.
A foreign investor should therefore distinguish between investment registration and business or sector licensing.
Registering an investment does not automatically mean that the investor has obtained every licence required to operate.
Depending on the business, an investor may still need approvals involving:
- Company registration
- Tax registration
- Immigration and work permits
- Land acquisition or access
- Environmental approvals
- Sector specific licences
- Local government approvals
- Employment and social security compliance
- Customs and import approvals
- Foreign exchange requirements
The correct sequence depends on the sector, investment structure and activities being undertaken.
What should a foreign investor establish before entering Tanzania?
The first step is to determine the legal structure through which the investment will operate.
For many foreign investors this will involve establishing a Tanzanian company or using an existing structure where the law and commercial circumstances permit it.
The decision should be made alongside an assessment of:
- The proposed business activities.
- Ownership and shareholder structure.
- Required capital.
- Sector specific licensing.
- Land requirements.
- Tax exposure.
- Immigration requirements.
- Foreign exchange considerations.
- Potential local content obligations.
- Whether the project qualifies for investment incentives.
This is particularly important for regulated sectors. A company can be properly incorporated while still lacking the approvals necessary to conduct its intended business.
What investment incentives are available in Tanzania?
Tanzania’s investment framework provides incentives for qualifying investments, but the applicable incentives depend on the nature, location and status of the investment.
The 2025 Finance Act introduced provisions relevant to TISEZA registered strategic investors. TISEZA’s own investment bulletin notes, for example, customs duty relief of up to 75% on certain non-originating capital goods for qualifying strategic investors, alongside VAT related incentives for specified sectors including textiles, agriculture and cashew processing.
Investors should therefore avoid treating “Tanzania investment incentives” as a single universal package.
The relevant questions are:
- Is the project registered with TISEZA?
- Does it qualify as a strategic investment?
- What sector does it operate in?
- Where is the investment located?
- Does it operate within a special economic zone?
- What capital goods or inputs are being imported?
- What tax and customs legislation applies to the particular investment?
An incentive should be assessed as part of the investment structure rather than assumed at the beginning of the project.
What sectors are relevant to foreign investors?
Tanzania continues to attract investment interest across a broad range of sectors.
Recent investment promotion activity has highlighted manufacturing, agriculture, infrastructure, tourism, mineral processing and technology among areas attracting investor attention.
However, each sector has its own regulatory environment.
For example, an investor considering mining cannot rely solely on the general investment framework. Mining projects must also be assessed against the applicable mining legislation, licensing regime and local content requirements.
Similarly, investments in financial services, telecommunications, gaming, insurance, energy and other regulated sectors require sector specific regulatory analysis.
This is why investment registration should be treated as one component of market entry rather than the entire market entry process.
What are the main compliance issues after investment registration?
Obtaining investment registration is not the end of the compliance process.
Foreign investors should establish an ongoing compliance framework covering at least five areas.
1. Corporate compliance
The Tanzanian operating company must maintain its corporate registrations, statutory records, filings and governance requirements.
2. Tax compliance
Investors must assess corporate income tax, VAT, withholding taxes, employment related taxes, customs obligations and any sector specific tax rules.
Cross-border structures should also be reviewed for transfer pricing and withholding tax implications.
3. Employment and immigration
Foreign employees may require appropriate immigration and work authorisations. Employment structures should also comply with Tanzanian labour legislation.
4. Sector regulation
A company must maintain all licences and approvals applicable to its specific activities.
5. Foreign currency and repatriation
Investors moving capital into or out of Tanzania must consider applicable foreign exchange rules and the requirements governing transactions in Tanzania.
For a detailed treatment of the currency rules, investors should also review our guide to foreign currency compliance in Tanzania.
Can foreign investors repatriate capital from Tanzania?
Capital repatriation should be considered during the initial structuring of the investment, rather than only when an investor wants to exit.
The relevant analysis can include:
- Dividend payments
- Loan repayments
- Interest payments
- Disposal proceeds
- Management and service fees
- Foreign exchange requirements
- Applicable taxes
- Banking documentation
The legal ability to repatriate proceeds does not remove the need to comply with tax, banking, foreign exchange and corporate requirements.
The investment structure should therefore be designed with both entry and exit in mind.
What are the main risks for foreign investors?
Tanzania’s investment reforms are intended to improve investment facilitation, but investors should still conduct detailed regulatory due diligence.
The U.S. Department of Commerce’s 2025 Tanzania Investment Climate Statement identifies concerns including inconsistent application of tax policy and regulations, corruption, lengthy government negotiations and difficulties associated with hiring foreign workers.
For investors, this reinforces an important point: regulatory risk is not eliminated by registering an investment.
Before committing capital, investors should identify:
| Risk area | Key question |
|---|---|
| Regulatory | Which authorities regulate the proposed activity? |
| Licensing | What approvals are required before operations begin? |
| Tax | What taxes apply to the investment structure? |
| Land | How will the project obtain lawful access to required land? |
| Employment | What local and foreign staffing rules apply? |
| Foreign exchange | What rules affect payments and capital movement? |
| Sector | Are there additional local content or ownership requirements? |
| Exit | How will dividends, sale proceeds or other capital be repatriated? |
What should investors do before committing capital?
A practical foreign investment process should generally look like this:
- Define the investment thesis and proposed activities.
- Conduct Tanzanian legal and regulatory due diligence.
- Select the appropriate investment and corporate structure.
- Determine whether TISEZA registration is required or beneficial.
- Identify sector specific licences and approvals.
- Assess tax and customs implications.
- Review land and environmental requirements where relevant.
- Plan employment and immigration requirements.
- Structure banking and foreign exchange arrangements.
- Complete registrations and approvals before commencing regulated activities.
- Establish ongoing compliance procedures.
This approach reduces the risk of treating company incorporation or investment registration as synonymous with full regulatory approval.
What does the TISEZA reform mean for investors in 2026?
The creation of TISEZA represents a significant change in the institutional architecture for foreign direct investment in Tanzania.
The government has positioned the authority as a single investment facilitation gateway, supported by a One Stop Centre and an integrated system for investment related approvals.
For investors, the practical benefit will depend not only on the legislation but on how effectively the new institutional framework operates in individual projects.
The key lesson is therefore straightforward: use TISEZA as the starting point for investment facilitation, but conduct the wider legal, tax and sector regulatory analysis separately.
For the broader investment case, see our strategic analysis of why Africa is attracting global capital at Swiss Shikana Invest.
Frequently Asked Questions
Is TISEZA now responsible for foreign direct investment in Tanzania?
Yes. TISEZA is the principal investment promotion, coordination and facilitation authority established under the Investment and Special Economic Zones Act, 2025. It replaced the former institutional arrangement involving TIC and EPZA.
Does TISEZA registration give a foreign investor every licence it needs?
No. Investment registration and operational licensing are separate issues. Depending on the business, additional sector, tax, environmental, immigration, employment and local government approvals may be required.
Can foreigners own businesses in Tanzania?
Foreign ownership depends on the investment activity, applicable legislation and regulatory requirements. The proposed ownership structure should therefore be reviewed as part of the investment due diligence process.
What is the first step for a foreign investor entering Tanzania?
The first step should be a legal and regulatory assessment of the proposed investment, followed by selection of the appropriate corporate and investment structure and determination of the applicable TISEZA and sector requirements.
Has TISEZA replaced the Tanzania Investment Centre?
Yes. TISEZA consolidated the investment facilitation functions previously handled by the Tanzania Investment Centre and the Export Processing Zones Authority.
Need help structuring an investment in Tanzania?
Shikana Group advises foreign investors on market entry, investment registration, regulatory compliance, tax and transaction structuring across East Africa.
Book a discovery call with our team to discuss your investment.