Creating an Enabling

Environment for

Investments

Garden Court

OR Tambo International Airport,

September 1, 2014

TANZANIA NATIONAL PARKS

Dr. Ezekiel Dembe

Tanzania Overview

• Tanzania is home to the Kilimanjaro, Zanzibar and the Serengeti.

• Tanzania is a top safari destination in Africa

• Three natural wonders (The Serengeti, Ngorongoro Crater and Kilimanjaro)

• It is a mega biodiversity nation second only to Brazil

• Only a fraction of it is developed for tourism.

Dr. Ezekiel Dembe

Tanzania and Investments

• Tanzania has made significant

progress in moving from a centrally-

planned economy to a market-based

regime.

• Government has an innovative

investment legislation that allows

for increasing number of foreign

direct investments and economic

and structural reforms

Dr. Ezekiel Dembe

Supporting Investment Infrastructure

Tanzania Investments Centre (TIC)

• TIC is a strong institution and is a One Stop Centre for all

investors. TIC coordinates, encourages, promotes and

facilitates all investments in Tanzania.

• TIC undertakes the following:-

• (i) Investments facilitation;

• (ii) Business licensing and registration;

• (iii) Land issues;

• (iv) Labour issues; (v)

• Tax registration; and

• (vi) After Care Services.

Dr. Ezekiel Dembe

Supporting Investment Infrastructure….

Attractive investment fiscal

regime

Tanzania has stable and predictable

Fiscal Investment Regime - providing

a Soft Landing to all investors. It

recognizes that investors need to

Recover their Investment Costs first

before paying corporation tax.

Dr. Ezekiel Dembe

Supporting Investment

Infrastructure….

Tanzania National Business Council

Since 2002 Tanzania has established the Tanzania National Business Council

which is the Lead Dialogue Institution where Government interact with diverse stakeholder representatives from the Private Sector for dialogue on strategic issues related to the investment process and business environment in Tanzania.

The Council (TNBC) has 50 percent members from the Private sector and 50

percent members from the Government. The Council is chaired by the President of Tanzania. The President’s commitment to transparency manifests itself in the workings of the Roundtables such as the local Investor’s Round Table (LIRT), International Investor’s Roundtable (IIRT) and the Chief Executive Officers (CEO) roundtable where the President meets private sector representatives on a regular basis to discuss specific issues aimed at improving Tanzania’s business competitiveness.

Dr. Ezekiel Dembe

Tanzania National Parks (TANAPA)

• TANAPA is a government parastatal organization

established by an Act of parliament in 1959. This

organization manages 16 national parks in

Tanzania mainland. The national parks are

spread all over the country, covering a total area

of about 4.5% of Tanzania.

• TANAPA is not subsidized by government

instead pays taxes to the government.

Dr. Ezekiel Dembe

16 National Parks

Dr. Ezekiel Dembe

Policy Framework

Investments in the National Parks are guided

by:

• The National Policies for National Parks in

Tanzania (1994, revised in 2012);

• TANAPA Development Action License

Procedures (DALP) of 1995, revised 2012

and;

• Specific Park’s General Management Plans

(GMPs).

Dr. Ezekiel Dembe

Investment Incentives (TIC)

Non Fiscal Incentives and Fiscal

Incentive

• Zero percent (0%) Import Duty and VAT

exemption on capital goods and Import

Duty Back Scheme.

• Refund of duty charged on imported used

for producing goods for export and goods

sold to foreign institutions like the UN and

its agencies operating in Tanzania.

Dr. Ezekiel Dembe

Non Fiscal….

• The recognition of private property

and protection against any non-

commercial risks.

• Allowed to repatriate all your profits,

gains and dividends from investment

after tax.

• Favorable Investment allowances and

deductions

Dr. Ezekiel Dembe

TANAPA investment incentives

• Free park entry during mobilization and

construction stage.

• All staff living in the parks are given free entry

permits

• All administrative vehicles are given free entry

permits

• Directors and family members pass with a minimal

annual fee of US $ 100

• A grace period of six months for not paying

concession fees after opening the facility

Dr. Ezekiel Dembe

Investment Guarantees (TIC)

• Tanzania is a member of Multilateral Investment

Guarantee Agency (MIGA) member of World Bank and African Trade Insurance Agency (ATIA). The two Institutions provide political risks insurance guarantee to the private sector

• Tanzania is an active member of World Bank Foreign Investment Insurance wing Multilateral Investment Guarantees Agency ( MIGA)

• Tanzania is also member of the International Centre for Settlement of Investment Disputes (ICSID) also a body affiliated to the World Bank.

Dr. Ezekiel Dembe

TANAPA Investment Procedures

National Policies for National Parks in

Tanzania

According to the National Policies for National Parks

in Tanzania, TANAPA will encourage all major

developments only if:

• All the criteria are met for specific park uses.

• The development will be located in development

zones established in the park’s approved GMP

• There is a complete and thorough site specific

environmental impact assessment of the action.

Dr. Ezekiel Dembe

TANAPA Investment Procedures…

TANAPA Development Action License

Procedures [DALP] 2012:

• This is a document which provides a step by

step procedure for seeking approval to

develop facilities in the National Parks.

• All investments in the National Parks are

guided by this document from project

design layout, implementation, up to

monitoring and evaluation stages.

Dr. Ezekiel Dembe

TANAPA Investment Procedures…

License Agreements

• All developers are issued a license agreement with specific requirements on how construction and operation of the investment would be carried out.

• Investment by a foreign company is for an initial license term of not exceeding 15 years for permanent tented camps and not exceeding 20 years for lodges/hotels

• Investment by a local term is of an initial license term of not exceeding 15 for tented camps and not exceeding 25 years for lodges/hotels.

• After the license term ends, they will be renewed and thereafter the property may revert back to TANAPA.

Dr. Ezekiel Dembe

TANAPA Investment Arrangements

• Private owned

• TANAPA Owned

• Joint Venture (TANAPA and Private Sector)

Note: All TANAPA license and non-license accommodation categories will prohibit the concessionaire from establishing any type of procedures that will result in discrimination or “exclusive use” of the facility.

Dr. Ezekiel Dembe

TANAPA Investment Criteria

Once sites are available for investment in the National Parks, the sites are advertised to the public through news paper and the TANAPA website.

Multiple Selection Criteria

• Investors are required to submit project proposals, which are used by a multidisciplinary team to select the best investor. Once a competent developer has been selected by the Board, that developer is given a go ahead to survey for water (normally from ground water sources), develop a full project proposal and finally carry out environmental impact assessment of the proposed development before commencing construction. The license is given by the Minister of Environment under the guidance of the National Environment Management Council (NEMC).

Dr. Ezekiel Dembe

Criteria….

Single Selection Criteria

• A potential investor is given a provisional letter of offer indicating the type of investment and where the investment can take place.

• Once a competent developer has been selected, the developer first surveys for water (normally from ground water sources), develops a full project proposal and finally conducts environmental impact assessment of the proposed development before commencing construction.

Dr. Ezekiel Dembe

Type of Investments

•Accommodation facilities

Hotels

Lodges

Tented camps

•Balloon safaris

•Canopy walkways

•Cable car safaris

•Water sports - Boat

cruises in four parks:

Saadani (Indian Ocean),

Gombe (Lake

Tanganyika), Mahale

(Lake Tanganyika) and

Rubondo (Lake Victoria)

Dr. Ezekiel Dembe

Challenges

• Protection of tourism products such as elephants and rhino

• Political influence

• Insufficient infrastructure to the parks

• Population increase around the parks (human-wildlife and boundary conflicts, diseases)

• Incompatible land use practices, and

• Security

Dr. Ezekiel Dembe

Dr. Ezekiel Dembe