INVESTMENT UPDATE : Navigating the Implications of the Formation of the Tanzania Investment and Special Economic Zone Authority (TISEZA)

• The law behind the formation of the authority.
• What will happen to the licenses and incentives granted under TIC and EPZA.
• What happens to pending applications and matters at the TIC and EPZA.
• Does the new law affect the licences instituted before the merger of the two authorities?
• Establishment of an integrated electronic system.
• Dispute Resolution Methods for Investor-State Disputes

1.0 Introduction

On the 1st day of July 2025, the president of the United Republic of Tanzania appointed Mr. Gilead John Teri to be the Director General of the Tanzania Investment and Special Economic Zones Authority (TISEZA), marking the official commencement of operation of the Authority.

The authority is established under section 4 of the Investment and Special Economic Zones Act No. 6 of 2025, which is a result of the merging of two authorities, the Tanzania Investment Centre (TIC) and the Export Processing Zone Authority (EPZA) to form Tanzania Investment and Special Economic Zones Authority (TISEZA). In this Article, Breakthrough Attorneys has analysed in brief what the merger represents to investors and businesses previously regulated by the TIC and the EPZA.

2.0 What will happen to the licenses and incentives granted under TIC and EPZA

The new law has repealed the Investment Act 2022, the Export Processing Zones Act 2002, and the Special Economic Zones Act 2006. However, the new law specifies that any investment incentives certificate or agreement that was issued under the repealed law remains valid. Investors and businesses will continue to enjoy the benefits, protections, and safeguards stipulated in those original certificates or agreements. The same will remain valid for their stated duration, and once that period ends, they will be governed by the new Act and its accompanying regulations.

3.0 What happens to pending applications and matters at the TIC and EPZA

For investors and businesses with ongoing applications or unresolved matters under the old systems, the new Investment and Special Economic Zones Act, 2025, offers a reassuring provision in Section 51. The law essentially states that anything that was in progress with the former Tanzania Investment Centre, or the Export Processing Zones Authority, will simply pick up where it left off, but now under the newly formed Tanzania Investment and Special Economic Zones Authority. This means you don’t have to restart your applications or resubmit documents; all pending issues are automatically transferred to the new, unified body, ensuring a smooth and uninterrupted transition for your investment activities.

4.0 Enhanced mandates of the One Stop Facilitation Centre

A significant feature bolstering the efficiency of the new One Stop Facilitation Centre, as detailed in Section 13 of the Investment and Special Economic Zones Act, 2025, lies in its explicit mandate regarding processing timelines and escalation mechanisms. Should an investor require a service not directly available at the Centre, the Authority is empowered to proactively engage the relevant government institution in writing.

The law stipulates a clear timeframe, requiring the contacted institution to provide the requested service or a written status update within seven (7) working days. This provision introduces a measurable standard for responsiveness across government agencies dealing with investor applications. Furthermore, to address potential bureaucratic hurdles, the Act grants the Authority the power to escalate matters directly to the responsible Minister if the specified seven-day response period is not met or if an application is rejected, thereby establishing a formal pathway for resolving delays in the investment facilitation process.

5.0 Establishment of an integrated electronic system

The Investment and Special Economic Zones Act introduces a fundamental shift towards digital integration in investment facilitation processes. Section 14 of the Act mandates the establishment of an integrated electronic system that will be managed and coordinated by the TISEZA.

This system is meant to link all key authorities involved in issuing the various licenses, permits, approvals, and consents that investors require, thereby creating a truly unified digital platform for investment-related services. Importantly, all governmental bodies providing services to investors are legally obligated to ensure their services are integrated into, and accessible through, this electronic system. This provision marks a significant step towards fully digitizing and streamlining the investor journey, reducing paperwork and physical visits.

6.0 Dispute Resolution Methods for Investor-State Disputes

The Act introduces a tiered approach to dispute resolution under Section 40. For the first time, investors and the Authority must attempt mandatory negotiations to resolve disputes amicably before escalating further, which is a departure from the repealed Export Processing Zones Act (which allowed immediate arbitration) and the Tanzania Investment Act (where negotiation was optional).

Should negotiations fail, parties may jointly select flexible arbitration mechanisms (e.g., ICSID/ICC, ad hoc tribunals) or alternative methods as provided in their agreements, unlike the rigid ICSID frameworks previously imposed by the repealed Investment Act. This new framework balances investor autonomy and aligns Tanzania’s investment protection standards with modern international practices, offering predictability and reducing enforcement risks for awards issued under mutually agreed-upon arbitration.

7.0 Conclusion

In conclusion, the Act marks a pivotal moment in Tanzania’s commitment to enhancing its investment climate. By repealing and consolidating previous fragmented legislations and establishing the unified TISEZA, the new law aims to significantly streamline processes for both existing and new investors. The provisions ensuring the validity of prior incentives and the seamless transfer of pending applications offer reassurance and continuity, while the explicit mandates for an integrated electronic system and clear dispute resolution mechanisms underscore a proactive move towards greater efficiency, transparency, and predictability.

Breakthrough Attorneys believes this framework must realize its full potential. This hinges on the true success of the One-Stop Facilitation Centre and the integrated electronic system. Officials from all integrated authorities within TISEZA must be empowered with authoritative and approval mandates to fast-track applications and resolve issues on the spot. This practical implementation is crucial to create a tangible, seamless, and efficient investor experience.

 

Important Notice:

This publication has been prepared for general guidance on matters of interest only and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, Breakthrough Attorneys, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.