Only foreign investors meeting a minimum investment threshold (higher than required from domestic investors) have access to unconditional after-tax profit and capital repatriation.
The new Investment Act adopted on December 2022 reduced the minimum investment capital for locally owned businesses from $100,000 to $50,000.
"Section 2. Application [....]
(2) A business classified for the purposes of this section that can obtain the benefits and immunity provided under this Act is that which-
(a) if it is wholly owned by a foreign investor or if it is a joint venture, the minimum investment capital is not less than Tanzanian shillings equal to five hundred thousand United States dollars (US$ 500,000);
(b) if it is owned by a Tanzanian, the minimum investment capital is not less than Tanzanian shillings equal to fifty thousand United States dollars (US$ 50,000).
[...]
Section 28. Investment guarantee, capital transfer, profits and dividends
Subject to this section, a commercial institution governed by this Act is guaranteed that, through any authorized bank and in freely convertible currency, it will be able to transfer unconditionally-
(a) the net profit or dividend arising from the investment;
(b) payment related to loan recovery where the loan has been obtained from abroad;
(c) income, after deduction of taxes and other payments, in case the commercial entity is sold or bankrupt or any profit derived from the investment; and
(d) payment of entitlements and other benefits to foreign workers employed in Tanzania in a commercial institution." (Tanzania Investment Act, 2022, Sections 2 and 28 [google translation])
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Previously
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"Section 2. Application [...]
2) The businesses specified for the purpose of this section which may enjoy the benefits and protection provided under this Act, are those which—
a. if wholly owned by a foreign investor or if a joint venture, the minimum investment capital is not less than Tanzanian Shillings equivalent of US dollars three hundred thousand (US$ 300,000); or
b. if locally owned, the minimum investment capital is not less than Tanzanian shillings equivalent of US dollars one hundred thousand (US$100,000).
[...]
Section 3. Interpretation
In this Act, unless the context requires otherwise—[...]
"foreign investor" in the case of a natural person means a person who is not a citizen of Tanzania, and the case of a company, a company incorporated under the laws of any country other than Tanzania in which more than fifty percent of the shares are held by a person who is not a citizen of Tanzania, and in the case of partnerships, means a partnership in which the partnership controlling interest is owned by a person who is not a citizen of Tanzania;[...]
"local investor" means a natural person who is a citizen of Tanzania; a Company incorporated under the laws of Tanzania in which the majority of the shares are held by a person who is a citizen of Tanzania; or a partnership in which the partnership controlling interest is owned by a person who is a citizen of Tanzania; "member" means a member of the Board of the Centre; "Minister" means the Minister responsible for investments;
[...]
Section 21. Investment guarantees, transfer of capital profits and dividends
Subject to this section, a business enterprise to which this Act applies shall be guaranteed unconditional transferability through any authorised dealer bank in freely convertible currency of—
a. net profits or dividends attributable to the investments;
b. payments in respect of loan servicing where a foreign loan been obtained;
c. royalties, fees and charges in respect of any technology transfer agreement registered under this Act;
d. the remittance of proceeds (net of ail taxes and other obligations) in the event of sale or liquidation of the business enterprise or any interest attributable to the investment:
e. payments of emoluments and other benefits to foreign presonnel employed in Tanzania in connection with the business enterprise.[...]" (Tanzania Investment Act, 1997)
Tanzania Investment Act, 2022, Sections 2 and 28 [google translation]
Tanzania Investment Act, 1997
[<a href="https://fbattorneys.co.tz/wp-content/uploads/2022/12/New_Investment_Act_2022.pdf">Act</a>],[<a href="https://procedures.tic.go.tz/media/INVESTMENT%20ACT.pdf">Act</a>]