How TIC helps to promote local investments in the country

The Tanzania Investment Centre (TIC) was established in 1997 by the Tanzania Investment Act to be “the Primary Agency of the government to coordinate, encourage, promote and facilitate investment in Tanzania and to advise the government on investment policy and related matters.”

TIC’s functions include creating and maintaining a positive climate for private sector investment; providing advice to the government on investment related matters; stimulating local and foreign investments; facilitating foreign and local investors; stimulating and supporting the growth of entrepreneurship and SMEs in Tanzania.

It also provides and disseminates up-to-date information on investment opportunities and incentive available to investors, monitoring the Tanzania business environment and growth of Foreign Direct Investment (FDI) in the Country.
Apart from encouraging and attracting locals to awaken and grab the available investment opportunities, on the other hand it attracts foreign investors to come and invest in the country. TIC has also been ensuring the investors get the required licences through the ‘One Stop Window.’

Speaking recently during the Tanzania-Vietnam Business Forum on the occasion of the visit of the Vietnamese President Truong Tan Sang that was organised by the Tanzania Investment Centre (TIC) in collaboration with the Tanzania Private Sector Foundation (TPSF) and the Vietnam Chamber of Commerce and Industry (VCCI), Minister of Industry, Trade and Investment Charles Mwijage said that TIC was established for all investors.

He adds that the misconception that TIC was established for foreign investors should be stopped. “TIC is a home for both local and foreign investors,” he stressed.

For her part, TIC’s executive director Juliet Kairuki said that many Tanzanians have been struggling to grab the available investment opportunities in different sectors through her centre.

However, Kairuki revealed that TIC did not have the legal mandate to deal with investors who have invested in projects being implemented by mining companies, researching and drilling of oil and gas, production and supplying of poisonous chemicals, firearms and explosives.

Such projects are registered through other laws like the Mining Act of 1998 and Petroleum and Gas (Exploration and Production) Act of 1980. From 2005 to 2015 alone, TIC has managed to register projects invested in different sectors.

During the said period there were a total of 7,589 registered projects, 50 per cent of which were directed to local investors, while 23 per cent were projects run by foreigners. The remaining 27 per cent were shareholding projects between Tanzanians and foreigners.

Since the coming to power of the fifth phase government in November 2015, TIC had succeeded to register 30 investment projects by February 2016.

Findings show that Tanzanians were leading in registering projects, having recorded 15, which is equivalent to 50 per cent of the total, whereas those belonging to foreigners totaled only 11, an equivalent of 36.66 per cent.
The remaining, which were 4 projects, equivalent to 13.34 percent, were joint ventures between Tanzanians and foreigners.

With the above data, it is obvious that many opportunities in the country are being grabbed by Tanzanians, contradicting the mentality that foreign investors were benefiting enormously from investment opportunities available in the country through TIC.

Royal Oven executive director Exaudi Kiwali, speaking recently during a special radio programme on the successes of TIC, said in the beginning they started their activities without using TIC’s services because they had the mentality that TIC only handled foreign investors.

They did not even bother to inquire about the Centre’s responsibilities
However, after a survey they realised that what was being said against TIC was just to tarnish the image of the TIC, according to Kiwali. In the real sense, however, the Centre caters for diverse investors, be they local or foreign, small or large.

As a result, the TIC board chairman, Prof Lucian Msambichaka, has called on Tanzanian investors to utilise the Centre properly and effectively for their individual and national benefits.“I call upon Tanzanians to realise that TIC is a centre that was established by the government for them. The more you invest, the more you grow our economy,” he urged.

Hamis Msaghaa from Mihan Gas, commenting on the successes of TIC during a radio special programme recently, said that TIC has been of great help to many investors.

“The investment centre, due to its special system, is an instrument where all services are provided and matters pertaining to investments in the country are solved,” he said.

Msaghaa noted some of the services being offered by TIC as those detailing how one could easily register a company, advice on the best way of paying taxes, handling land issues as well as workers. The availability of these services under one roof eliminates the troubles and bureaucracy which an investor could have faced moving from one office to another.

For quite some time now the government of Tanzania, through TIC, has been employing more efforts to ensure that Tanzanians know and grab different investment opportunities at their disposal and also understand the way the government helps to promote investment through various, already laid down, procedures that ease the procedures of establishing investment projects in the country. They also provide information on tax incentives offered to local investors.

The promotion of local investment has been done through different zonal and regional workshops, special training on local investment and entrepreneurships involving the participation in exhibitions organised across the country.

Likewise, the government in collaboration with the Tanzania Investment Centre (TIC) has been organising different workshops in different districts and regions in the country.

A good example is when TIC, in collaboration with the Bunda District authority, organised an economic and investment symposium in February, last year, that drew participants from within and outside the district.

Previously, TIC in collaboration with different regions in the country, organised regional investment forums in Rukwa, Ruvuma, Tabora and Mara Regions respectively between 2009 and 2012.

In recent years, those regions decided to pool their resources and organised regional investment forums where they can exchange investment and market opportunities available in their regions.

The investment centre, in cooperation with the various regions in the country, organized zonal forums as follows: the north zonal forum, which includes Manyara, Arusha, Kilimanjaro and Tanga regions. This forum, which was officiated by former Prime Minister Mizengo Pinda, took place in Arusha in September, 2013.

Then there was an investment forum that took place in August, 2014, in the southern highlands, which included regions like Mbeya, Njombe and Iringa. The forum was also officiated by PM Pinda and was attended by over 300 people from public and private institutions.

There was also the Lake zone investment symposium that included Rukwa, Katavi and Kigoma regions. The symposium took place in 2014 in Sumbawanga Township and was attended by around 500 people. Another investment forum took place in the same zone and venue in September, 2015. Its guest of honour was former Vice President, Dr Mohamed Gharib Bilal.

As if that was not enough, in February, 2014, TIC in collaboration with Lake Zone authorities from Mwanza, Geita, Kagera, Mara, Shinyanga and Simiyu regions organised an investment symposium. At the event, TIC signed around six memoranda of understanding (MoU) with regional commissioners; and one of them with NARCO, about advertising investment opportunities in that zone.

Also, the government through TIC carried out training for entrepreneurs and businesspeople from different districts and regions in the country to encourage them to establish various investment projects.

It also informed them on the different investment opportunities that can be found in their places and the readiness of their government to help them to establish investment companies and tax reduction which the government would offer them through TIC.

Some of the districts that have benefitted from the training between 2011 and 2014 were Mbinga, Songea, Iringa Urban, Singida, Mbozi, and Musoma, including all districts of Mara Region. Other districts were Kilombero, Ifakara, Kilosa, Ruaha, Makambako and Njombe.

The seminars and various trainings on investment and empowerment have to a great extent imparted the indigenous business people with knowledge on various issues on investment in the country. Hence, they have helped to remove the wrong mentality by on the role of TIC.

TIC, through its ”After Care Services” department, has enabled business linkages between small entrepreneurs and large business companies engaging in communication, construction, agriculture, cement, mining, fisheries, milk processing, beverages and soft drinks , and hotels.

This programme was initiated by TIC in collaboration with the United Nations Conference on Trade and Development (UNCTAD).

Since the commencement of the programme in 2009, TIC has managed to offer training to 451 SMEs where 275 were men and 176 were women. The objectives of the programme were to train small entrepreneurs and change their mindset on investment, increase skills in providing services or products.

It was also aimed at teaching them how to keep their business records and improve their business linkages with large companies which engage in the above mentioned sectors.

During this period, a total of 81 businesspeople and local suppliers graduated from the course. Since the establishment of this programme by TIC, in collaboration with UNCTAD, a lot of achievements have been attained.

Some of those achievements include offering training and creating business linkages between 150 Tanzanian small entrepreneurs and 20 big local and international companies.

“This clearly indicates how TIC has been working tirelessly to enable local investment in the country,” he said.