Tanzania Revises Investment Laws to Court Technology Investors
Tanzania · TECHNOLOGY
Key Facts
—Legal review: Tanzania is reworking laws covering digital financial transactions, e-commerce, company operations and public-private partnerships.
—Minister: Constitution and Legal Affairs Minister Juma Zuberi Homera confirmed the review includes the Public-Private Partnership Act and the Companies Act.
—Capital thresholds: The 2022 investment law cut the minimum for Tanzanian investors from US$100,000 to US$50,000; the foreign threshold stayed at US$500,000.
—New regime: The Investment and Special Economic Zones Act No. 6 of 2025 took effect on 1 July 2025, consolidating investment and SEZ rules.
—Strategic investors: Thresholds are about US$20 million for local-majority investors, US$50 million for foreign-majority, and US$300 million for special strategic projects.
—Digital ambition: One report said the digital economy could contribute more than US$1.1 billion to GDP by 2034, with ICT targeted at 3% by 2029 from about 1.5% in 2022/23.
Tanzania investment laws are being revised to make the country more attractive to technology, artificial intelligence, e-commerce and digital payments investors, with officials promising faster approvals and clearer rules.
What the legal review covers
The Tanzanian government is reworking its investment legal framework to improve regulatory certainty for technology-enabled business. The review covers laws governing digital financial transactions, electronic commerce, company operations and public-private partnerships, known as PPPs.
Constitution and Legal Affairs Minister Juma Zuberi Homera said the review includes the Public-Private Partnership Act and the Companies Act. He also pointed to financial legislation that facilitates digital transactions and supports technology-enabled business.
The changes sit inside a broader push to digitise the economy and streamline approvals. Officials say the goal is to position Tanzania as a more competitive destination for global capital.
From the 2022 act to the 2025 regime
The current direction builds on the Tanzania Investment Act, 2022, which repealed the 1997 Investment Act. That law introduced an integrated electronic system for investment promotion and facilitation.
The 2022 reforms lowered the minimum capital threshold for a Tanzanian investor from US$100,000 to US$50,000. The foreign-investor threshold remained at US$500,000.
Tanzania then enacted the Investment and Special Economic Zones Act No. 6 of 2025 in February 2025, and it came into force on 1 July 2025. It consolidated the investment and special economic zone frameworks into a new regime under the Tanzania Investment and Special Economic Zones Authority, known as TISEZA.
Why technology investors are watching Tanzania investment laws
The 2022 law elevated the role of the Tanzania Investment Centre, or TIC, and granted foreign investors access to international arbitration in disputes with TIC or the government. It also removed some procedural bottlenecks, including the time limit for appealing a rejected application.
Tanzania’s investment framework now explicitly supports an integrated electronic system. That matters for technology firms seeking faster licensing, registration and approvals.
One official presentation said certificates, permits and licences can be processed within 24 hours through the one-stop facilitation centre. The Tanzania Digital Economy Strategic Framework emphasises digital infrastructure, governance, skills, innovation, inclusion and digital financial services.
Strategic investors and the great-power contest
The 2025 regime gives special treatment to strategic investors. Thresholds are about US$20 million for local-majority investors, US$50 million for foreign-majority investors, and US$300 million for special strategic projects.
That shows Tanzania is trying to channel large-scale capital into priority sectors rather than opening the market uniformly. The push fits the wider contest among global powers and strategic investors for influence in East Africa.
Infrastructure, ports, logistics, telecoms and energy are often tied to broader geopolitical competition. Tanzania’s emphasis on special economic zones, strategic investors and one-stop facilitation is designed to capture that flow of capital while retaining domestic control over the rules, a pattern explored in Africa: The New Scramble.
The digital economy target
Government messaging points to ambitions for the digital economy to become a larger growth engine. One report said the sector could contribute more than US$1.1 billion to gross domestic product by 2034.
The information and communications technology contribution is targeted to rise to 3% by 2029 from about 1.5% in 2022/23. The Tanzania Communications Regulatory Authority and the ICT Commission are key institutions shaping that technology policy environment.
Tanzania is trying to attract capital in a period of tighter global financing conditions for African startups and infrastructure. Legal certainty and faster approvals have therefore become more valuable to investors.
What to watch next
The legal review is still unfolding, and the government has not yet published a final consolidated text. Investors will be watching whether the new rules keep the arbitration access and electronic system promised in earlier reforms.
Tanzania’s investment rules remain tied to tax and land-use incentives, including special economic zone and export processing zone benefits. Those include corporate tax holidays, duty relief and repatriation guarantees.
The direction suggests Tanzania wants foreign capital on more controlled, predictable terms. The question is whether the final framework delivers the speed and clarity that technology investors now demand.
More: Tanzania news in English, every day from The Rio Times.
Frequently Asked Questions
What is Tanzania changing in its investment laws?
Tanzania is reviewing laws covering digital financial transactions, e-commerce, company operations and public-private partnerships to attract technology investors.
How much capital does a foreign investor need in Tanzania?
The foreign-investor minimum capital threshold remained at US$500,000 under the 2022 investment law, while the Tanzanian investor threshold was cut from US$100,000 to US$50,000.
When did Tanzania’s new investment and SEZ regime take effect?
The Investment and Special Economic Zones Act No. 6 of 2025 took effect on 1 July 2025, consolidating investment and special economic zone rules.
Connected Coverage
For more on how East African states are competing for strategic capital, read Africa: The New Scramble.
Sources
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