Dar es salaam stock exchange listing requirements

Dar es salaam stock exchange listing requirements

Posted: xxwebmaster Date of post: 14.07.2017

The Government of Tanzania GOT generally has a favorable attitude toward foreign direct investment FDI and has had considerable success in attracting FDI. InFDI into Tanzania rose to over USD 1. The legacy of socialist policies endures in certain sectors, however, and some officials remain suspicious of foreign investors and free competition.

There are no laws or regulations that limit or prohibit foreign investment, participation, or control, and firms generally do not restrict foreign participation.

The Tanzania Investment Center TIC is the primary agency of the GOT to coordinate, promote and facilitate investment in Tanzania. Established by the Tanzanian Investment Act ofTIC is a one stop facilitative center for all investors, and has the authority to manage Public Private Partnerships PPPs under the PPP legislation that sets a framework for Build-Operate-Transfer arrangements with private companies. The review process takes up to 10 days and involves multiple GOT agencies, which are required by law to coordinate fully with TIC in facilitating foreign investment, but in practice can create bureaucratic delays.

TIC does not have specific criteria for screening or approving projects, and considers factors such as: Currently, TIC does not require companies to disclose proprietary information or meet standard fair competition practices in order to be approved.

Projects with all required documents submitted are seldom rejected. Similar incentives are offered to investors in semi-autonomous Zanzibar through the Zanzibar Investment Promotion Agency ZIPA. TIC promotes investment and trade opportunities in agriculture, mining, tourism, telecommunications, financial services, energy, and transportation infrastructure.

However, investment tax incentives can be unpredictable; in capital goods tax exemptions were reinstated, and agricultural equipment imports were given generous exemptions. TIC continues to improve investment facilitation services through provision of joint venture opportunities between local and foreign investors, and information dissemination. Despite a number of improvements in recent years, some investment challenges remain.

Ina new legislation required foreign-owned telecommunications firms to list on the Dar es Salaam Stock Exchange DSE within 3 years. This legislation also gave the Minister of Energy and Minerals discretion to require foreign mining companies to give the government an ownership share in order to receive a Mining Development Agreement. Foreign investors generally receive national treatment but the Tourism Act of bars foreign companies from engaging in mountain guiding activities and only Tanzanian citizens can operate travel agencies and car rental services and engage in tour guiding.

Land ownership remains restrictive in Tanzania. Under the Land Act ofall land in Tanzania belongs to the state. Procedures for obtaining a lease or certificate of occupancy can be complex and lengthy, both for citizens and foreign investors.

Foreign investors may occupy land for investment purposes through a government-granted right of occupancy "derivative rights" facilitated by TICor through sub-leases through a granted right of occupancy. Foreign investors can also partner with Tanzanian leaseholders. Rights of occupancy and derivative rights may be granted for periods up to 99 years and are renewable.

The GOT's Better Regulation Unit BRU manages the implementation of the World Bank- supported Business Environment Strengthening for Tanzania BEST program. Inthe World Bank's "Doing Business" report listed Tanzania as among the top ten reformers. In response to this decline, the GOT has consolidated key reform programs requiring inter-ministerial actions in the Prime Minister's Office.

The financial sector has continued to expand, with an increase in foreign-affiliated financial institutions and banks operating in Tanzania. As ofthe Bank of Tanzania listed a total of 32 commercial banks licensed and operating in Tanzania, over half of which are foreign-affiliated.

Competition among these foreign commercial banks has resulted in significant improvement in the efficiency and quality of financial services, though interest rates are still relatively high, reflecting a high risk of fraud. To mitigate this fraud risk, the GOT is in the process of implementing a national ID program, which would require all Tanzanian citizens to get a national ID card. The registration process for IDs began in early with the date for issuing IDs still to be announced.

The East African Community's EAC Customs Union came into force on January 1, In Julythe member states Burundi, Kenya, Rwanda, Tanzania, and Uganda enacted a Common Market Protocol to allow free movement of goods, people, and capital within the region. Although the EAC member countries continue to discuss economic integration and harmonize regulations, non-tariff barriers--such as the administration of duties and other taxes, and corruption--remain a problem.

Tanzania is also a member of the Southern Africa Development Community and the Common Market for East and Southern Africa COMESA. Tanzanian regulations permit unconditional transfers through any authorized bank in freely convertible currency of net profits, repayment of foreign loans, royalties, fees charged for foreign technology and remittance of proceeds. Shortages of foreign exchange occur rarely.

Bureaucratic hurdles continue to cause delays in processing and effecting transfers; delays can range from days to weeks. Investors rarely use convertible instruments. The Embassy is not aware of any recent complaints from investors regarding delays in remitting returns and there have been no remittance policy changes this year. The GOT may expropriate property after due process for the purpose of national interest. The Tanzanian Investment Law guarantees:.

GOT authorities do not discriminate against U. Sincethe Government of Tanzania has not expropriated any foreign investments. Investment-related disputes in Tanzania can be protracted. The Commercial Court of Tanzania, established inis headquartered in Dar es Salaam, and operates two sub-registries located in Arusha and Mwanza.

The government intends to establish more branches in other regions including Mbeya, Tanga and Dodoma, in the coming years. Lack of court capacity remains an issue, and cases are currently backlogged 2 - 4 years. Tanzania recently moved to a computerized arbitration system aimed at solving business related disputes within a short period of time but backlogs remain.

Despite the legal mechanisms in place, foreign investors sometimes complain that the GOT "changes the goalposts" and does not honor agreements. Additionally, investors continue to face challenges receiving payment for services rendered for GOT projects.

The GOT has acknowledged the problem as being affiliated with the current budget crisis, leading many government ministries to try to work with significantly reduced budgets.

The GOT is engaging in a number of strategies to pay off a number of debts including those incurred in the energy sector. According to the World Bank's Doing Business report it takes on average 3 years to close a business. The recovery rate for creditors on insolvent firms is only Tanzania is a member of both the International Center for the Settlement of Investment Disputes ICSID and the Multilateral Investment Guarantee Agency MIGA. The ICSID was established under the auspices of the World Bank by the Convention on the Settlement of Investment Disputes between States and Nationals of Other States.

MIGA is also World Bank-affiliated and issues guarantees against non-commercial risk to enterprises that invest in member countries. There is no specific legislation in Tanzania providing for enforcement under the New York Convention or for the enforcement of awards under the ICSID Convention.

Under Tanzanian regulations, disputes between a foreign investor and the Tanzanian Investment Center that are not settled through negotiations may be submitted to arbitration, through one of several options:.

The GOT uses the World Trade Organization's WTO Trade-related Investment Measures TRIMs to promote development objectives, encourage investments in line with national priorities, and to attract and regulate foreign investment. EPZs were established by the EPZ Act and are open to both domestic and foreign investors. The Export Processing Zones Authority EPZA is charged with designating suitable areas for the location of EPZs. The EPZA also oversees incentive packages such as exemptions from corporate tax and withholding taxes on rent, dividends and interest; remission of customs duty, value-added tax VAT and other taxes on raw materials and capital goods; and exemption from VAT on utilities, wharf charges, and levies imposed by local authorities.

Tanzania has largely completed its transition to a liberalized market economy, though the government retains a presence in sectors such as telecommunications, banking, energy and mining. The GOT has sought foreign investors to manage formerly state-run companies in public-private partnerships, but successful privatizations have been rare. Though there is an official privatization program, bidding criteria are not always clear and transparent. In the government took back its control from formerly privatized Tanzania Railways Limited, General Tyre, and Kilimanjaro International Airport after expressing disappointment with the failure of the management companies to achieve desired goals.

The GOT does not restrict the right of a foreign investor to repatriate returns from an investment. Any dispute arising between the Government and investors can be settled through negotiations or submitted for arbitration.

The Zanzibar Investment Promotion Agency ZIPA and the Zanzibar Free Economic Zones Authority ZAFREZA offer roughly equivalent incentives as those offered by the Mainland's TIC and EPZ policies.

There are currently no requirements that all foreign investors buy from local sources, export a certain percentage of output, or only access foreign exchange in relation to exports.

TIC guides foreign investors to specific locations through its land bank system. The GOT plans to expand TIC's land bank and modernize its land titling and registration system, though both changes are long delayed in execution. Tanzanian regulations allow foreign and domestic private entities to establish and own business enterprises and engage in legal forms of remunerative activity.

The Business Registration and Licensing Act established licensing regulations for business operations. It provides the right to freely establish private entities, to own property both movable and immovable, and to acquire and dispose of property including interest in business enterprises and intellectual property.

The Act stipulates that no business entity can enter into business activities in Tanzania before obtaining a business license through the Business Registration and Licensing Agency BRELA. Registration fees and charges for foreign companies are significantly higher than for domestic companies.

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The government is now implementing the Business Activities Registration Act ofwhich aims to reduce administrative barriers with one centralized licensing database. Under the Tanzania Investment Act and the Land Actoccupation of land by non-citizen investors is restricted to lands for investment purposes.

Land in Tanzania is state property that can be leased for up to 99 years. The law does not allow individual Tanzanians to sell land to foreigners.

Foreigners can only lease land in Tanzania through the Tanzania Investment Center TICwhich has designated specific plots of land a land bank to be made available to foreign investors. Foreign investors may also enter into joint ventures with Tanzanians, in which case the Tanzanian provides the use of the land but retains ownership, i.

Tanzania's Fair Competition Commission FCC actively combats intellectual property rights IPR violations, but its impact is limited by inadequate legal penalties for counterfeiters. FCC is pursuing increase in penalties through changes to Tanzania's law, but considers the East African Community's draft Anti-Counterfeiting Act ACA as a possible faster route to achieve the same end.

Tanzania is one of the signatories to WTO and TRIPS agreements. The available IPR-related legal instruments in the country are governed by the following acts: The Fair Competition Act, FCA ; Merchandise Marks Act Regulations and Zanzibar Industrial Property Act Tanzania has made a big step to stamp out counterfeiting and piracy by amending its laws on the protection of IP rights to comply with international standards prescribed in the TRIPs Agreement and other international conventions.

However, despite enacting a number of domestic laws on intellectual property rights protection, the sale of counterfeit goods, particularly in the entertainment and apparel sector remains common and widespread. Secured interests in property, both movable and real, are recognized and enforced under different laws in Tanzania. There is no single comprehensive law to secure property rights. Though the Tanzania Investment Center maintains a land bank, restrictions on foreign land ownership can significantly delay investments.

Land not already processed for investment in the land bank has to go through a lengthy review and approval process by local level authorities as well as the Ministry of Lands and Human Settlements Development and the President's office, in order to be officially re-designated, from Village Land, with customary rights of occupancy, to General Land, which can be titled for investment and sale.

The Ministry of Lands and Human Settlements Development handles registration of mortgages and rights of occupancies. The Office of the Registrar of Titles is responsible for issuing titles and registering mortgage deeds. Title deeds are recognized as a mortgage for securing loans from banks.

dar es salaam stock exchange listing requirements

Traditional Certificates of Occupancy for Village Land are still being piloted for use as collateral, and this is currently limited to groupings of village-level borrowers. The functions of EWURA include: EWURA is also responsible for promoting effective competition and economic efficiency, protecting the interests of consumers and promoting the availability of regulated services to all consumers including low income, rural and disadvantaged consumers in the regulated sectors.

SUMATRA is a multi-sector regulatory agency which was established by an Act of Parliament No. To ensure safety, security and regularity of civil aviation in Tanzania by providing effective oversight and efficient air navigation services while protecting the environment and safeguarding the interest of consumers and the public. The functions of TCRA include: According to the Fair Competition Act, the FCC will work to develop and promote polices to enhance competition and consumer welfare and help to publicize consumer information and guidelines relating to the obligations of persons under the Act and the rights and remedies available to consumers under the Act.

Tanzania is implementing a taxpayer's charter that enables taxpayers to complain about rr sen forex delhi or malpractice within the Tanzania Revenue Authority TRA.

The tax policy reform agenda includes abolition of nuisance taxes, harmonization of the regulatory framework, establishment of a clear incentive regime and gradual reduction in rate structure. The GOT has broadened tax incentives and incorporated them in the relevant tax laws to attract more investments.

The private sector is represented through private associations such as the Confederation of Tanzania Industries CTITIC, and the umbrella Tanzania Broker concerned stock Sector Federation, which provides grants and business training for small local businesses. The Council is chaired by the President of Tanzania.

Businesspeople complain, however, that the government is not sufficiently responsive to the private sector's concerns. Bureaucratic procedures for licenses and permits continue to be burdensome and time-consuming.

The GOT's "Road Map" to improve the investment climate aftermarket stocks for mak 91 to reduce the number of construction permits and inspection procedures.

The Tanzania Chamber of Commerce and Industry Association issues certificates of origin for companies exporting to the U. Proposed laws and regulations are sometimes published in draft form for public comment. There are many opportunities to provide input as government officials are relatively accessible, especially to industry associations.

The Tanzania Chamber of Minerals and Energy was heavily involved in the years-long dialogue process that unique binary option strategy pdf to the Mining Act of The Electronic Communications Act, however, which requires telecommunications firms to list on the DSE, was passed in early with little opportunity for stakeholder comment.

Legal, regulatory, and accounting systems are transparent and consistent with international norms. There are no efforts to restrict foreign participation in industry standards-setting consortia or organizations.

Associations representing the tourism, telecommunications, and mining industries are composed of, and often led by, foreigners. The GOT established a Law Reform Commission LRC in to periodically review the legal and regulatory requirements relating to trade and investments and proposed appropriate reforms. The GOT what binary options to buy 31 march also modernizing the business-licensing regime to reduce impediments to investment.

Under the Tanzania Investment Act, the Tanzania Investment Center TIC has become a 'one-stop shop' that provides fast track assistance to obtain approvals and permits such as work permits, industrial licenses, and trading licenses from various ministries. The Business Activities Registration Act BARAenacted in Februaryis implemented by the Business Registration and Licensing Agency BRELA.

BRELA intends to start a simplified and decentralized registration system which establishes a single national database for all registered businesses. The Tanzanian judicial system continues to function inefficiently and remains plagued with corruption. These factors increase the cost and difficulty of doing uk gaap foreign currency transactions in Tanzania, particularly with regard to dispute resolution.

The GOT has begun a program to train judiciary officials and combat corruption in the regulatory system; challenges with the judiciary persist. The banking system continues to be sound and stable. The Tanzanian Capital Markets and Securities Authority CMSA Act facilitates the free flow of capital and financial resources to support the product and factor markets. This constraint on investment flows has consequences which negatively affect both the cost and availability of capital for all borrowers.

Steps have been taken to address this issue and in Q4 the GOT announced that EAC-based investors will be permitted to invest directly in domestic government securities in and international investors will eligible in There are no "cross-shareholding" and "stable shareholder" arrangements to restrict foreign investment through mergers and acquisitions.

There are no measures designed to protect against foreign hostile takeovers. Foreign investors can get credit in the local financial market, where credit is allocated on market terms.

Recent bank lending rates ranged from 13 to 15 percent for ordinary borrowers. Corporate borrowers can negotiate lower lending rates. Credit to the private sector continues to grow though there are few local institutions large enough to finance significant deals such as infrastructure projects and power stations.

The financial sector in Tanzania has expanded in recent years, with a significant increase in the number of foreign-affiliated financial institutions and banks. Of the 32 commercial banks licensed and operating in Tanzania, more than half are foreign-affiliated banks. The banking sector is adequately capitalized and has limited reliance on foreign borrowing.

Private sector companies have access to a variety of commercial credit instruments including documentary credits letters of creditoverdrafts, term loans, and guarantees.

Foreign investors can open accounts and make deposits in registered private commercial banks. Interest earned by non-residents or foreign investors from deposits in banks registered by the Bank of Tanzania BOT is exempt from income tax, in accordance with the Income Tax Act of Foreign exchange regulations have been eliminated to attract investors and simplify international transactions. Profits, dividends, and capital can be readily repatriated.

Several venture capital funds have been established to meet the demand for equity by growing businesses.

Tanzania

The Banking and Financial Institution Act of establishes a framework for a Credit Reference Bureau and permits banks and financial institutions to release information to licensed reference bureaus in accordance with regulations and allows credit reference bureaus to provide to any person, upon legitimate business request, a credit report.

There is, however, no national credit database. The Tanzania Bankers Association recently agreed to share information and the central Bank of Tanzania will consolidate credit histories for release to authorized bureaus. Tanzania restricts the free flow of investment in and out of the country and non-citizens cannot buy bonds and other debt securities in the domestic market.

In addition, Tanzanians cannot sell or issue securities abroad, unless approved by the Capital Markets and Securities Authority. Under the terms of the planned East African Community EAC monetary union, all EAC residents were expected to receive national treatment byhowever this has yet to be implemented.

Public enterprises do not compete under the same terms and conditions as private enterprises because they have access to government subsidies and other benefits.

SOEs are active in the power, communications, railway, telecommunication, aviation, and port sectors. SOEs typically report to ministries and are led by a board possibly a presidential appointee but also composed of private leadership.

SOEs are not subjected to hard budget constraints and Tanzania does not have a sovereign wealth fund. SOEs do not discriminate against or unfairly burden foreigners, though they do have access to sovereign credit guarantees.

SOE financial results are audited by donors and accessed by the media. SOEs primarily work in industries that are nationalized are not competitive e.

With emerging potentials in the oil and gas sector, investors continue to monitor the potential increase of governmental influence on these economic activities. The financial results of these entities are not consolidated within the main financial statements of GOT.

Details such as the balance at the year-end and for the previous year of any funds operating technical indicators for indian stock market ministries, departments and agencies are also provided.

Tanzania has in place modern shareholders protection mechanisms that at least meet the minimum standards set out under the OECD principles on corporate governance. CSR is practiced mainly by large foreign firms in the banking, mining and telecommunications sectors and is generally viewed favorably. Companies typically pay for media coverage of their charitable activities.

Tanzania also has guidelines on corporate governance by publically listed companies. In these meetings, shareholders have the right to view annual accounts, directors' report, auditors' report, proposal for appointment of auditors, proposals for the appointment and resignation of directors. A company must also provide shareholders bi-annual and quarterly results as a matter of best practice.

dar es salaam stock exchange listing requirements

The Tanzania guidelines state that the board should ensure shareholders' right of participation are protected by providing them with sufficient information on voting procedures, opportunity to put questions to the management, right to place items on the agenda, opportunity to vote in absentia and opportunity to consider the costs and benefits of their votes.

Recently, Tanzania has developed new regulations requiring companies mainly in the mobile telecommunications and mining sectors to list on the Dar es Salaam stock exchange. Tanzania has been one of the most politically stable countries in Africa. Since gaining independence, Tanzania has enjoyed a remarkable degree of peace and stability. Tanzania has held four national multi-party elections sincethe most recent in Elections on the mainland have been generally free of political violence.

The dar es salaam stock exchange listing requirements in Zanzibar, held following changes to the constitution to mandate formation of a Government of National Unity, were the most peaceful since Zanzibar's entry into the union. Tanzania's next general election is scheduled for Prior to the next election, the GOT hopes to complete a constitutional review process and hold a referendum on a new constitution in As this process continues, tensions remain high as public debate centers on a number of controversial issues including the status of the Union between mainland Tanzania and Zanzibar, land reform, and others.

Furthermore, experienced an increase in demonstrations by citizens regarding a variety of political causes, including Zanzibari independence. Although some of the demonstrations were marred by violence, a number of the demonstrations both on the mainland and in Zanzibar proceeded peacefully.

In addition to monitoring the political climate in the run up to the completion of the constitutional review and elections, foreign investors remain concerned about land tenure issues. Although the government owns all land in Tanzania and oversees the issuance of land leases of up to 99 years, many Tanzanian citizens feel that foreign investment has led to exploitation of Tanzanian resources.

This has resulted in conflict between investors and residents in some areas. In Arusha, some of these conflicts have lead to violence, prompting the GOT to emphasize its commitment to supporting foreign investment while also ensuring the intended benefit of the investments to Tanzanian citizens. Corruption remains a major concern for foreign investors. While giving or receiving a bribe including bribes to a foreign scalping futures tradestation is a criminal offense in Tanzania, the enforcement of laws, regulations and penalties to combat corruption has largely been ineffective.

The government launched a series of high-profile corruption prosecutions synthetic stock ak-47 for sale late and secured a conviction in Corruption is endemic, and measures to combat it are applied impartially to foreign and domestic investors.

Corruption persists in government procurement, privatization, taxation, and customs clearance. A nationwide survey by NGO Concern for Development in Africa ForDIA found that the police authorities were considered most corrupt, followed by local health authorities, the judiciary, state power utility Tanesco and the Tanzania Revenue Authority TRA.

dar es salaam stock exchange listing requirements

The Tanzania Port Authority and the TRA remain a great hindrance to importers throughout Tanzania despite some success in recent years reducing average port dwell times from more than 20 days to about 11 days by increasing storage fees and pushing more goods to inland container depots. Unpredictable and lengthy clearance delays and bribes to expedite service are commonplace.

Transparency International TI has consistently rated Tanzania poorly for its perceived corrupt practices. The CPI score tracks perceptions of corruption seen by business and country analysts, ranging from zero as highly corrupt, to 10, not corrupt. The Tanzania police and judiciary featured in the list of the top 10 most corrupt institutions in the region. In an effort to deal with corruption, the GOT put in place the National Anti-Corruption Strategy NACS and sector-specific action plans for all ministries, independent government departments, executive agencies and local authorities.

The Anti-Corruption Bill, commonly referred to as the Prevention and Combating of Corruption Bureau PCCB Act, became operational in The PCCB is responsible for combating corruption alongside international, regional and local watchdog organizations. Transparency International, ForDIA, and the Tanzania Media Women's Association operate freely in Tanzania. Tanzania is a party to the UN Convention against Corruption but not a signatory to the OECD Convention on Combating Bribery.

The government's efforts to fight corruption have been fitful. Late saw the first-ever major court cases on grand corruption, with the arrests of individuals whose companies allegedly siphoned funds from the Bank of Tanzania BOTalong with several Bank employees, and the separate arrests of two long-serving former ministers on corruption-related charges. In Maythe former BOT Director of Personnel and Administration, Amatus Liyumba, was sentenced to two years in prison for abuse of office in connection with construction of the BOT headquarters.

This conviction marked the first in the grand corruption cases. Overall, the court cases have progressed slowly and several other well-publicized scandals have yet to result in prosecutions. Currently, the United States of America and Tanzania do not have bilateral investment or taxation agreements. Tanzania is a member of the East African Community EACwhich signed a Trade and Investment Framework Agreement TIFA with the United States in July In Novemberthe EAC member states signed an interim economic partnership agreement with the European Union; as of this still had not been finalized.

Overseas Private Investment Corporation OPIC signed an incentive agreement with the GOT in December While the number of U. Tanzania is an active member of the Multilateral Investment Guarantee Agency MIGAa member of the World Bank Group that promotes foreign direct investment in developing countries by offering political risk insurance guarantees to investors and lenders, and by providing technical assistance to help developing countries attract and retain foreign investment.

The Export-Import Bank Ex-Im Bank of the United States has established a cooperative agreement with the EXIM Bank of Tanzania Limited to facilitate access to guarantees by investors and importers within Tanzania. Tanzania is also a member of the International Center for Settlement of Investment Disputes ICSID.

Investments in Tanzania are guaranteed against nationalization and expropriation. However inflationary risk remain. For mission operations, the average exchange rate in was 1, Tsh to 1 USD. Tanzania faces persistent shortages of skilled labor. While the number of university graduates, especially in business management and information technology, continues to grow, tertiary education is very limited, and many foreign investors find that local labor is insufficient to fill even administrative positions.

Only few professions within the EAC, such as English and science teachers, are granted cross-border access to Tanzania's labor market without a work permit. Tanzania's recent signing of a Mutual Recognition Agreement with Kenya and Uganda, which recognizes the credentials and legalizes the employment of engineers in any of the member states, reflects progress in the regional integration process.

Labor and immigration regulations permit foreign investors to recruit up to five expatriates with more work permits may be granted under specific conditions. As an incentive under the EPZ Act, the government may provide work permits for management and technical staff when these skills are unavailable locally.

Machinery is relatively expensive to import, making labor more attractive. Tanzania's minimum wage is set by categories covering eight employment sectors. The minimum wage ranges from 70, Tsh per month for hotel workers toTsh per month for laborers in the mineral sector. Tanzania's minimum wage was last changed in May The union and Zanzibar governments have separate labor laws. Workers on the mainland have the right to form and join independent trade unions. Trade unions must consist of more than 20 employees and are required to register with the government.

A trade union or employers' association must register within six months of its establishment; failure to register is a criminal offense. The registrar in the Ministry of Labor exerted significant power over trade unions, including the right to deregister unions if overlap existed within an enterprise. Unions must submit financial records and a membership list to the registrar annually.

The registrar can suspend a trade union if it determined that the union violated the law or endangered public security. Association with an international trade union requires government approval. As ofapproximately 13 percent of the formal sector work force approximatelypeople are unionized workers including members of the Trade Union Congress of Tanzania, TUCTAthe leading labor federation. In the agricultural sector, the country's largest employment sector, an estimated 5 to 8 percent of the work force was unionized.

The law provides for collective bargaining in the private sector. In the public sector, the government set wages administratively, including for employees of state-owned organizations. On the mainland, disputes were regulated and resolved by mediation through the Commission for Mediation and Arbitration. If the mediator failed to resolve a dispute within 30 days of referral, or any longer period agreed upon in writing by both parties, either party to the dispute may give notice of its intention to commence a strike or lockout.

If the mediation fails to resolve the complaint, the Commission for Mediation and Arbitration may appoint an arbitrator to decide the dispute, or it may be referred to the labor court.

On the mainland, the law prohibits discriminatory activities by an employer against union members. In practice, however, many private sector employers adopted anti-union policies or tactics.

The law required employers found guilty of anti-union activities to reinstate workers. Mainland workers have the legal right to strike, and employers have the right to a lockout after complying with certain legal requirements and procedures.

These rights are qualified according to the law. For example, all parties to a dispute may be bound by an agreement to arbitrate, and neither party may then engage in a strike or a lockout until that process has been completed.

A lawful strike or lockout is protected and does not constitute a breach of contract, nor can it be considered a criminal offense. An employer may not terminate the employment of an employee for participating in a lawful strike or terminate an employee who accedes to the demands of an employer during a lockout.

The law restricts the right to strike when to do so would endanger the life and health of the population. Workers in certain sectors water and sanitation, electricity, health services and associated laboratory services, firefighting, air traffic control, civil aviation telecommunications, and any transport services required for the provisions of these services are restricted from striking.

Workers in other sectors may also be subject to this limitation. The labor law in Zanzibar applies to both public and to private sector workers. Zanzibar government workers have the right to strike as long as they follow outlined procedures in the Employment Act of They are not allowed to join mainland-based labor unions. The Zanzibar labor law requires a union with 50 or more members to be registered and sets literacy standards for trade union officers.

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An estimated 40 percent of the Zanzibar workforce is unionized. In collaboration with the International Labor Organization ILOthe Zanzibar government worked to draft regulations under the Employment Act of to facilitate a smooth implementation of the Act.

The regulations have been finalized but have not yet been implemented. The Economic Processing Zones Act of authorized the establishment of Special Economic Zones SEZs to encourage greenfield investments in the light industry, agro-processing industry and agriculture sectors.

The GOT's Export Processing Zones Authority EPZA continues to promote Export Processing Zones EPZ to attract investments in agricultural value added processing, textiles and electronics. EPZA has earmarked hectares for export clusters, though on-site infrastructure and facilities are lacking. Six zones have already been developed; one is owned by the GOT and the rest by the private sector 85 companies are registered under EPZA to operate in two categories - infrastructure development and manufacturing.

Tanzania Revenue Authority has an office in Mabibo EPZ complex to streamline tax and revenue procedures for participants and the GOT hopes to increase the presence of other GOT offices in additional EPZ areas. Investors in EPZs are eligible for various incentives including prime locations near ports and main roads, 10 year tax holidays, exemption on interest and dividend taxes for 10 years, duty free importation of capital goods, exemption on VAT for utilities and exemption of local tax levies.

Some of the U. Top country sources of FDI into Tanzania include the United Kingdom, Kenya, South Africa, India, China and the United States. According to TIC, the UK was the largest source of FDI in Foreign direct investment continues to grow, particularly in the sectors of telecommunications services; energy infrastructure; road construction; breweries; tourism and hotels; mining; and agriculture.

Tanzanians are currently restricted from investing abroad while very few international firms primarily Kenyan list on the Dar es Salaam stock exchange.

There is currently no information on Tanzanian FDI abroad FDI outflowsas Tanzanians are legally barred from participating in foreign investment funds or offerings. The Bank of Tanzania BOT and Tanzania Investment Center TIC reported Foreign Direct Investment FDI trends in Tanzania as follows:. The Office of Website Management, Bureau of Public Affairs, manages this site as a portal for information from the U. External links to other Internet sites should not be construed as an endorsement of the views or privacy policies contained therein.

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