DAR ES SALAAM – In a high-stakes overhaul of its economic machinery, Tanzania has consolidated its two primary investment bodies into a single, powerful authority, betting that bureaucratic efficiency and strategic pragmatism can finally unlock its long-touted potential as an East African industrial powerhouse.
The launch of the Tanzania Investment and Special Economic Zones Authority (TISEZA) on July 1, 2025, marks the most significant reform of the nation’s investment landscape in decades. It represents a conscious effort to shed a history of regulatory fragmentation and position the country as a premier destination for capital in the era of the African Continental Free Trade Area (AfCFTA).
Gone are the Tanzania Investment Centre (TIC) and the Export Processing Zones Authority (EPZA). In their place stands TISEZA, an entity endowed with a sweeping mandate to not only attract investment but to directly manage the industrial parks where that capital is put to work. The move, experts say, is a direct response to intensifying regional competition and the urgent need to transition from a resource-dependent economy to a semi-industrialized one.
“This is more than a simple administrative merger; it is a philosophical shift,” said a Dar es Salaam-based economist who advises international firms. “For years, investors were caught between TIC, which offered incentives, and EPZA, which managed the zones. The left hand didn’t always know what the right hand was doing. TISEZA is an attempt to create a single, commanding brain.”
The Imperative for Change
The pre-TISEZA era was often characterized by what locals termed “bureaucratic bouncing.” An investor might secure a Certificate of Incentives from the TIC, only to spend months navigating a labyrinth of other ministries for permits related to land, environment, and taxes. The EPZA, meanwhile, managed specific export-oriented zones but operated in a silo, creating a confusing duality where investors could “shop” for the best tax deal.
This friction was a major impediment to realizing the goals of Tanzania’s National Development Vision 2050, which aims for upper-middle-income status through a shift from agriculture to high-productivity manufacturing. Under President Samia Suluhu Hassan’s “4R” philosophy (Reconciliation, Resilience, Reform, and Rebuilding), TISEZA is the flagship institution of the “Reform” pillar.
“The government has recognized that you cannot promote investment in a vacuum,” said Ambassador Aziz Mlima, the seasoned diplomat appointed as TISEZA’s Board Chairman. “You must also control the industrial real estate. By merging promotion with infrastructure, we are creating a cohesive ecosystem for investors.”
A New Command Structure
The leadership of TISEZA signals a departure from traditional civil service appointments. The day-to-day operations are led by Director General Gilead John Teri, a former World Bank and International Finance Corporation (IFC) official with deep roots in Tanzania’s private sector.
“Appointing someone with Teri’s profile—a technocrat with multilateral and private sector experience—sends a powerful message to international investors that this agency intends to speak their language,” noted an analyst from the Tanzania Private Sector Foundation (TPSF).
The operational heart of TISEZA is its digitally integrated One-Stop Facilitation Centre (OSFC), which physically and virtually collocates over 15 government agencies, including the revenue authority, immigration services, and environmental regulators. The goal is to allow a company to complete its entire establishment process—from incorporation to work permits to tax registration—without leaving the TISEZA ecosystem.
A Smarter, More Strategic Incentive Regime
The new framework, governed by the Investment and Special Economic Zones Act No. 6 of 2025, introduces a more nuanced approach to incentives. A pivotal change is the mandatory registration of all investors with TISEZA, giving the government a comprehensive picture of capital flows for the first time.
The most significant reform, however, is a market-based segmentation of fiscal benefits. The coveted 10-year corporate tax holiday is now exclusively reserved for investors who export 100% of their goods to markets outside the East African Community (EAC). Those targeting the domestic or regional EAC market receive a different, less generous package of capital goods exemptions.
“This is a landmark policy,” explained a tax consultant in Dar es Salaam. “It ends the ‘free rider’ problem where a factory in an export zone could use its tax holiday to undercut local Tanzanian manufacturers in the domestic market. Now, the tax break is a direct reward for earning foreign exchange.”
The government has also introduced a “negative list”—including sugar, cement, and PVC pipes—that are ineligible for import duty exemptions, a move designed to protect nascent local industries that have achieved sufficient production capacity.
Brick and Mortar: The Five Strategic Zones
A policy is only as good as the infrastructure that supports it. In August 2025, TISEZA launched five Strategic Special Economic Zones (SEZs), each designed with a specific industrial focus and, critically, linked to the country’s massive investments in the Standard Gauge Railway (SGR) and hydropower.
The most innovative is the Buzwagi SEZ in Shinyanga. This is a pioneering “brownfield” project, repurposing the infrastructure of a former gold mine—including its airstrip, power substation, and water reservoirs—into a ready-made industrial park for mineral beneficiation and heavy industry.
Meanwhile, the Kwala SEZ in the Coast Region is positioned as a logistics hub adjacent to a major dry port, designed to decongest the port of Dar es Salaam by allowing for immediate processing of goods arriving via the SGR.
Early Signs of Success
The initial data suggests the market is responding positively. In its first full quarter of operation (July-September 2025), TISEZA registered 201 projects worth a combined TZS 6.18 trillion (approx. USD 2.35 billion), projects expected to create over 20,000 jobs.
Notably, 35% of these projects were from local Tanzanian investors, a significant jump from 27% a year prior, indicating that the new framework is also successfully mobilizing domestic capital.
The Road Ahead: Challenges and Opportunities
Despite the promising start, significant hurdles remain. The transition for existing investors holding legacy incentives from the TIC or EPZA needs clear “grandfathering” rules to avoid legal disputes. Land acquisition remains a complex and politically sensitive issue, as foreign ownership is prohibited and investors must rely on TISEZA to grant them “Derivative Rights.”
Perhaps the most persistent challenge is the historical disconnect between the investment promotion agency and the Tanzania Revenue Authority (TRA). Investors have long complained that TRA auditors do not always honor incentives granted by the promotion bodies. While TRA now has a desk inside TISEZA’s one-stop shop, achieving true policy alignment at the highest levels is critical.
“TISEZA has the right blueprint,” concluded the economic advisor. “It has the legal tools, the strategic zones, and the leadership. But its ultimate success will be determined not in the boardroom, but on the ground—in the speed of land allocation, the reliability of power in the new SEZs, and the consistency of tax policy. If they can get that right, Tanzania may finally claim its place as the engine of East Africa.”
The sleeping giant, it seems, is stirring. The world is watching to see if it will truly awake.