Faith Nyasuguta
In a bid to attract more foreign investments, the Tanzanian government has proposed amendments to its laws to grant special status to Tanzanians in the diaspora for setting up businesses in key priority economic sectors. The proposed changes aim to relax prohibitive laws and legislation, facilitating easier investment back home.
The Miscellaneous Amendments Bill 2024, tabled for debate in Parliament, seeks to grant Tanzanians living abroad special status to establish businesses in Tanzania. These amendments to immigration laws will provide inheritance rights and investment incentives through the Diaspora Tanzanite card.
Traditionally, land and property ownership in Tanzania have been limited to Tanzanian citizens only. However, the Miscellaneous Amendments Act 2024, published on June 26, proposes changes to the Immigration Act (Cap 54) and Land Act (Cap 113) to allow Tanzanians living abroad to access land occupancy titles. Tanzania is known for its restrictive immigration laws and regulations, especially concerning land ownership rights for foreigners and locals with dual citizenship.
President Samia Suluhu Hassan had previously promised to review the Immigration Act. During her six-day official visit to Seoul in June, she addressed Tanzanians in South Korea, assuring them that her government would grant special status to Tanzanians living abroad. This special status includes the ability to take up residence in Tanzania without undergoing a complicated visa process.
President Samia pledged to create a legal environment that would enable Tanzanians in the diaspora to remit money back home for investments, providing expertise and technology needed primarily for agricultural production, manufacturing, and services. Tanzanians in the diaspora have already invested approximately Tsh280 billion ($106 million) in housing and bought shares worth Tsh6.45 billion ($2.4 million) in the UTT Asset Management and Investors Services (UTT AMIS) by 2023.
The Tanzania Investment Centre (TIC) has been encouraging East African Community (EAC) citizens to establish joint businesses in Tanzania through harmonised regulations within the EAC region.
The Ministry of Foreign Affairs and East African Cooperation has established a diaspora database to recognise and assist Tanzanians in the diaspora to register for business and investments, capitalising on ample and available land suitable for investments.
Despite its rich agricultural land, Tanzania has lacked vibrant investments in agriculture, resulting in little returns from cash crops and a poor agro-industrial base. Data from the Ministry of Agriculture shows that Tanzania possesses 44 million hectares of land for cultivation, but only 15 million hectares are currently under cultivation for both cash and food crops.
Investment in livestock has been identified as a lucrative business opportunity, given the large number of livestock and available pastureland in Tanzania. Statistics from the Ministry of Livestock and Fisheries indicate that Tanzania has about 38 million heads of cattle, 28 million goats, 9 million sheep, and 4 million pigs. Despite being second in Africa in terms of livestock numbers after Ethiopia, the livestock sector is poorly developed for higher revenue gains. Traditional livestock breeding practices and a lack of ranching investments have slowed down revenue growth in this sector.
By amending its laws and granting special status to Tanzanians in the diaspora, the Tanzanian government aims to boost foreign investments, particularly in agriculture and livestock, thereby enhancing the country’s economic growth and development.
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