Browsing: Investing in Tanzania

The 2022 Tanzania Foreign Exchange Regulations will have implications on Traders and investors not only in Tanzania but also the EAC.

These foreign exchange controls and restrictions will pose challenges for international businesses and foreign investors in Tanzania.

When introducing approvals and making them necessary for just about every kind of transaction, foreign exchange restrictions add a level of complexity to investors’ business model and implementation strategy.

The Tanzania Foreign Exchange Regulations require authorisations and justifications for several areas including exporting, importing or simply where a non-resident is directly investing in Tanzania.

While there could be a problem with income being paid outside of Tanzania for activities that are taking place in Tanzania, putting foreign exchange controls rarely constitutes the answer to encourage investors to keep their funds in the country.

Tanzania is advancing towards the top and it seems nothing can stop it. The nation’s central bank (BoT) report, Economic Bulletin for the Quarter ending March 2021, showcased how the country is navigating through different sections of the economy, including its stringent monetary policies, public finance, financial market developments and external sector (imports and exports). 

The bank highlighted that the economy is projected to grow by 5.7 per cent this year, propelled by public investment and normalization of global trade and investment. 

At the moment Tanzania is proving to be courting investment, by adjusting its investment climate, setting the right tone to attract investors and forging strong partnerships—Kenya and Tanzania’s recent business agreement and the profitable East African Crude Oil Pipeline (EACOP) between Tanzania and Uganda evidence how serious is Tanzania about business. 

Tanzania is yet another country making a series of moves within the realms of the economy. At the moment the sixth President of Tanzania, Samia Suluhu Hassan is laying another foundation on top of the late John Magufuli presidency’s legacy, which was cut short before it took off for a major portion of its second term. 

Earlier in April Tanzania and Uganda managed to strike a victory on the crude oil pipeline project that had stalled. In effect, President Hassan managed to pass another crucial item left by Magufuli’s presidency forward.