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Student's Book Form Five

businesses to mitigate risks and instill growth and competitiveness of medium-
confidence in investors. These guarantees sized businesses operating in Tanzania.
may take the form of guarantees against In addition, domestic investors have access
nationalization, and breach of contract, to the following international preferential
as well as guarantees for repatriation of treatments:
profits and capital. By offering assurances
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of protection and stability, investment The African Caribbean and Pacific-
guarantees help to attract long-term European Union (ACP-EU) framework
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investment and foster a conducive business signed on 15 November 2023 with the aim
environment for medium-sized businesses. of mobilising investment, supporting trade
For a medium-sized business to enjoy the and fostering private-sector development,
investment guarantee, it has to register with to achieve sustainable and inclusive growth
TIC and enjoy the rights as provided in the and create decent jobs for all.
Tanzania Investment Act No. 10 of 2022. The African Growth Opportunity Act
These rights include investment guarantees, (AGOA) was enacted on 18 May 2000
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access to land, and employing expatriates. as Public Law 106 of the 200 Congress
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In addition, investments are guaranteed of the United States of America (USA).
against any form of expropriation. Tanzania The AGOA legislation has been renewed
is a signatory of several multilateral and on different occasions, most recently in
bilateral agreements on the protection and 2015, when its validity was extended to
promotion of foreign investment. September 2025. It provides duty-free

Preferential treatment for domestic entry into the United States for almost all
investors: The government of Tanzania African products, which helps in fostering
prioritizes domestic investment and an improved business environment in
offers preferential treatment to domestic Tanzania. Tanzania also qualifies for textile
investors including medium-sized and garment benefits under the AGOA.
businesses, through various policies and The East African Community (EAC)
initiatives. Domestic investors benefit vision 2050 signed on 2 March 2016 as
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from preferential access to government implementation of the EAC treaty of 1999
procurement contracts, priority in obtaining aimed at promoting inter and intra-regional
licenses and permits, and eligibility for trade and investment through creating a
government-funded development programs conducive environment for cross border
and incentives. Moreover, the government and foreign investment. In the Vision,
may provide financial support, technical Tanzania’s priority areas include promotion
assistance, and capacity-building programs of an investment and savings culture. The
specifically tailored to the needs of vision is currently in the early stages of
domestic investors thereby promoting the phase 2 out of 7 phases with activities

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