CHAPTER 38
TANZANIA INVESTMENT ACT

[SUBSIDIARY LEGISLATION]

INDEX TO SUBSIDIARY LEGISLATION

   REGULATIONS

      The Investment Regulations

REGULATIONS

THE INVESTMENT REGULATIONS

TABLE OF CONTENTS

   Regulation

Title

PART I
PRELIMINARY PROVISIONS

   1.   Citation.

   2.   Interpretation.

PART II
THE BOARD AND ITS FUNCTIONS

   3.   Board to pursue objectives of the Centre.

   4.   Activities of the Board.

   5.   Disqualification of members.

   6.   Termination of membership.

   7.   Filling of casual vacancy.

   8.   Board to act notwithstanding vacancies.

   9.   Meeting of the Board.

   10.   Request of special meeting.

   11.   Failure to arrange special meeting.

   12.   Standing Orders and procedure of the Board.

   13.   Invitation of Expert(s).

   14.   Quorum.

   15.   Resolution in writing.

   16.   Minutes.

   17.   Defect in appointment of members.

   18.   Conflict of interest and disclosure.

   19.   Beneficial interest.

   20.   Board may delegate its powers.

   21.   Performance of functions by the Board.

   22.   Conditions applicable to committees.

   23.   Validity of acts of Board members or committees.

PART III
ADMINISTRATION AND FINANCIAL MATTERS OF THE CENTRE

   24.   Appointment of Executive Director.

   25.   Responsibility of Executive Director.

   26.   Secretariat.

   27.   Qualification of Executive Director and officers.

   28.   Remuneration of Executive Director and officers of the Centre.

   29.   Powers and duties of the Executive Director.

   30.   Secretary to the Board.

   31.   Source of funds.

   32.   Fees.

   33.   Other sources of funds.

   34.   Control of funds.

   35.   Financial and Staff Regulations.

   36.   Accounts and annual report.

   37.   Content of annual report.

   38.   Other reports and information relating to the Centre.

   39.   Financial year of the Centre.

   40.   Disclosure of information.

PART IV
INVESTMENT APPLICATION AND REGISTRATION

   41.   Who may register.

   42.   How to register.

   43.   Powers of the Executive Director.

   44.   Issue of Certificate of Incentives.

   45.   Benefits under Certificate of Incentives.

   46.   Certificate is conclusive evidence.

   47.   Change of name, shareholding or control.

   48.   Change not to affect benefits.

   49.   Factors to be considered by the Minister.

PART V
INVESTMENT PROMOTION ACTIVITIES

   50.   Investment Promotion Programme.

   51.   Implementation of the Programme.

PART VI
REQUIREMENT TO FILE INFORMATION

   52.   Investor's report.

   53.   Content of report.

   54.   Form of report.

PART VII
LAND MATTERS

   55.   Stationing of Land Officers and issuance of derivative titles to investors.

PART VIII
FACILITATION OF IMMIGRATION, LABOUR MATTERS, BUSINESS REGISTRATION AND LICENSING

   56.   Residence and work permits, certificates of business registration and licensing.

   57.   Stationed officers to speed up process of approval.

PART IX
INVESTMENT IN MINING AND PETROLEUM SECTORS

   58.   Access to guarantees and transfer of profits.

   59.   Enjoyment of other Facilities under the Act.

PART X
CO-ORDINATION OF INVESTMENT FACILITATION COMMITTEES AND TASK FORCES

   60.   Committees and Task Force.

   61.   Application to the Task Force on Capital Goods.

   62.   Contents of the application.

PART XI
MlSCELLANEOUS PROVISIONS

   63.   Engagement of consultants.

   64.   Procedure for engaging consultants or contractors.

   65.   Doing of work by the centre to include doing of work by contractors.

   66.   TIC Tender Board.

   67.   Implementation of the Financial and Staff Regulations.

SCHEDULE

THE INVESTMENT REGULATIONS

(Section 29)

[16th August, 2002]

G.N. No. 381A of 2002

PART I
PRELIMINARY PROVISIONS (regs 1-2)

1.   Citation

   These Regulations may be cited as the Investment Regulations.

2.   Interpretation

   In these Regulations, unless the context requires otherwise:

   "Act" means the Tanzania Investment Act;*

   "Board" means the Board of the Tanzania Investment Centre established under section 7 of the Act;

   "connected person" means a person who is connected with an individual who is–

   (a)   that individual's spouse parent, brother, sister or child;

   (b)   a person acting in his capacity as the trustee of any trust, the principal beneficiary of which is the individual, his spouse or any of his children or anybody corporate which he controls; or

   (c)   a partner of that individual; or

   (d)   directly or indirectly controlling or is controlled by the individual;

   ''control" means the power to direct or cause the direction of the general management and policies of a person. An individual shall be deemed to control a body corporate if, he is, alone or together with any of the persons referred to in paragraph (a) to (d) in the definition of "connected person", interested, whether nominally or beneficially, in more than one-half of the equity share capital of that body, or entitled to exercise, or control the exercise, of more than one-half of the voting power at any general meeting of that body, and references to voting power exercised by an individual, shall include references to voting power exercised by another body corporate which that individual controls;

   "Minister" means the Minister responsible for investments;

   "officer" shall include the Executive Director of the Centre, Zonal Heads and Departmental Heads of the Centre;

   "person" shall include–

   (a)   a natural person (and heirs, executors, administrators, or other representative of a person) and any corporation or other entity which is given, or is recognized as having legal personality by the law of any country or territory;

   (b)   the government of a country or territory, any public, local or municipal authority in Tanzania or elsewhere and any international organization or body, whether or not its members include Tanzania and whether or not having legal personality.

PART II
THE BOARD AND ITS FUNCTIONS (regs 3-23)

3.   Board to pursue objectives of the Centre

   Subject to the provisions of the Act, the Board shall ensure that the objectives of the Centre are fulfilled and to that end the Board shall do or cause to be done the following matters to enable the Centre–

   (a)   to act as the statutory body to promote, assist and develop all aspects of economic activity by taking measures to encourage investment in Tanzania by persons other than the state in accordance with the aims of the Government policies and any Investment Promotion Programme;

   (b)   to prepare an overall policy and strategy for investment promotion and to prepare an annual Investment Promotion Programme for approval of the Government and to apply the approved policy, strategy and programme;

   (c)   to co-operate with ministers, divisions, departments, corporation, boards, authorities, agencies, public enterprises municipal or regional authorities and other relevant persons to implement the Investment Promotion Programme to take steps to co-ordinate arrangements with relevant persons whereby investment in Tanzania can be carried out expeditiously and with minimum financial cost or other burden;

   (d)   to ensure that all required measures to facilitate business activity in Tanzania are identified and brought to the attention of the Government, including requirements for physical amenities, infrastructure, manpower and training, processing of applications for permits and licences and to devise measures that will encourage the provision of these requirements;

   (e)   in consultation with the Minister, to form a Consultative Committee with representatives of relevant bodies including Lands, Immigration and Revenue Authority to ensure common understanding of investment matters and to give effect to the commitment required by the Government for priority treatment to investor related matters;

   (f)   to effectively communicate and build public support for investment from all sources and to create public understanding of the necessity for a strong private sector involvement in the economy to increase investment, exports and living standards;

   (g)   to advise and assign Government endeavours to promote facilitate and conclude bilateral and multilateral agreements for the promotion and protection of investment with other countries.

4.   Activities of the Board

   Subject to the provisions of the Act the board shall–

   (a)   keep the functions of the Centre under constant review to ensure that it achieves its objectives;

   (b)   constantly monitor the national investment situation as well as world investment climate and to propose measures to be adopted to make the investment environment in Tanzania more competitive;

   (c)   submit to the Minister quarterly progress reports on the activities of the Centre.

5.   Disqualification of members

   A member of the Board appointed according to the provisions of the Act shall vacate office if–

   (a)   he is incapable by reason of mental disorder, illness or injury, of managing and administering his affairs; or

   (b)   by notice in writing given to the Minister, Chairman and the Secretary he intends to resign his office. The resignation shall take effect on the date on which the notice is received by the Minister; or

   (c)   he is convicted of a criminal offence or any offence involving fraud or dishonesty whether in connection with business or not and whether in connection with the work of the Centre or not; or

   (d)   he becomes bankrupt or makes any arrangement or composition with his or her creditors; or

   (e)   having been given proper notice of each meeting, he or she is absent from three consecutive meetings of the Board without the prior written permission of the Chairman, or in the case of the Chairman without the prior written permission of the Minister;

   (f)   the member or Chairman shall automatically cease to be a member or Chairman of the Board and the Centre shall inform the Minister or in the case of the Chairman, the President, in writing immediately after the third consecutive Board meeting from which the member or Chairman has been absent and the Minister, or in the case of the Chairman, the President shall appoint a member and the person appointed shall be appointed in the same manner as the member of the Board who occasioned the casual vacancy; or

   (g)   at any time for substantial reasons he or she be removed from membership of the Board by the Minister, or in the case of the Chairman by the President, if, in the Minister's opinion, or in the case of the Chairman, if, in the President's opinion, the member has become incapable through ill-health of performing his or her functions, or has committed stated misbehaviour, or his or her removal appears to the Minister, or in the case of the Chairman appears to the President, to be necessary for the effective performance of the functions of the Board.

6.   Termination of membership

   The President may remove the Chairman and the Minister may terminate the appointment of a member of the Board by giving notice of the termination in writing to the member, Chairman and the Secretary at the same time.

7.   Filling of casual vacancy

   If a member of the Board dies, resigns, retires, becomes disqualified or is removed from office, the Minister, or in the case of the Chairman, the President, may appoint a person to be a member of the Board to fill the casual vacancy so occasioned and the person appointed shall be appointed in the same manner as the member of the Board who occasioned casual vacancy.

8.   Board to act notwithstanding vacancies

   The Board may act notwithstanding one or more vacancies amongst its members.

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