Tanzania proposes law changes to encourage diaspora investment

Tanzania proposes law changes to encourage diaspora investment

By APOLINARI TAIRO

Targeting more foreign investments, the Tanzania government has proposed amendment of its laws to grant special status to Tanzanians in diaspora, to set up business in key priority economic sectors.

Relaxing its prohibitive laws and legislations, the government has tabled to Parliament for debate, Miscellaneous Amendments Bill 2024, which seeks to grant special status to Tanzanians living in other countries to set up business back home.

The proposed amendments to immigration laws are set to grant inheritance rights and investment incentives to Tanzanians living in other countries through the Diaspora Tanzanite card.

Land and property ownership in Tanzania have been limited to Tanzanian citizens only. The Miscellaneous Amendments Act, 2024 which was published on June 26, proposes changes to the Immigration Act, Cap 54 and Land Act, cap 113 to allow Tanzanians living in other countries to access land occupancy titles.

Read: Samia perfects Ruto’s game to attract trade, investment

Tanzania is among African countries with restrictive immigration laws and regulations imposed to foreigners and locals with dual citizenship on land ownership rights.

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President Samia Suluhu Hassan had earlier promised to review the Immigration Act. While addressing Tanzanians in South Korea during her six-day official visit in Seoul in June, she said her government would ensure that Tanzanians living in other countries would be given special status, including the ability to take up residence in Tanzania without passing through a complicated visa process.

She pledged a legal environment that would enable Tanzanians in the diaspora to remit money through their families back home for investments, expertise and technology needed mostly for agricultural production, manufacturing and services.

Tanzanians in the diaspora have invested about Tsh280 billion ($106 million) through housing, while others bought shares worth Tsh6.45 billion ($ 2.4 million) in the UTT Asset Management and Investors Services (UTT AMIS) by 2023, Samia told the Tanzanians in Seoul.

The Tanzania Investment Centre (TIC) has been encouraging East African Community (EAC) citizens to establish joint businesses in Tanzania through harmonised regulations in the EAC region.

The Ministry of Foreign Affairs and the East African Co-operation established a diaspora database aiming to recognise and assist Tanzanians in diaspora to register for business and investments, banking on ample and available land suitable for investments.

Despite its rich agricultural land, Tanzania had lacked vibrant investments in agriculture with little returns from cash crops and poor agro-industrial base.

Data from the Ministry of Agriculture shows that Tanzania possesses a total of 44 million hectares of land for cultivation, but only 15 million hectares are under cultivation for both cash and food crops.

Investment in livestock has been rated among lucrative business, banking on the big number of livestock and pastureland available in Tanzania.

Statistics from the Ministry of Livestock and Fisheries indicate that Tanzania has a stock of about 38 million heads of cattle, about 28 million goats, nine million (9 million) sheep and four (4) million pigs.

It is second in Africa with big numbers of livestock after Ethiopia, but poorly developed for higher revenue gains. Traditional livestock breeding and lack of ranching investments have slowed down livestock revenue gains.

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Air Tanzania Banned From EU Airspace Due to Safety Concerns
Tanzania Foreign Investment News
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Air Tanzania Banned From EU Airspace Due to Safety Concerns

Several airports have since locked Air Tanzania, dealing a severe blow to the Tanzanian national carrier that must now work overtime to regain its certification or go the wet lease way

The European Commission has announced the inclusion of Air Tanzania on the EU Air Safety List, effectively banning the airline from operating in European airspace.

The decision, made public on December 16, 2024, is based on safety concerns identified by the European Union Aviation Safety Agency (EASA), which also led to the denial of Air Tanzania’s application for a Third Country Operator (TCO) authorisation.

The Commission did not go into the specifics of the safety infringement but industry experts suggest it is possible that the airline could have flown its Airbus A220 well past its scheduled major checks, thus violating the airworthiness directives.

“The decision to include Air Tanzania in the EU Air Safety List underscores our unwavering commitment to ensuring the highest safety standards for passengers in Europe and worldwide,” said Apostolos Tzitzikostas, EU Commissioner for Sustainable Transport and Tourism.

“We strongly urge Air Tanzania to take swift and decisive action to address these safety issues. I have offered the Commission’s assistance to the Tanzanian authorities in enhancing Air Tanzania’s safety performance and achieving full compliance with international aviation standards.”

Air Tanzania has a mixed fleet of modern aircraft types including Boeing 787s, 737 Max jets, and Airbus A220s.

It has been flying the B787 Dreamliner to European destinations like Frankfurt in Germany and Athens in Greece and was looking to add London to its growing list with the A220.

But the ban not only scuppers the London dream but also has seen immediate ripple effect, with several airports – including regional like Kigali and continental – locking out Air Tanzania.

Tanzania operates KLM alongside the national carrier.

The European Commission said Air Tanzania may be permitted to exercise traffic rights by using wet-leased aircraft of an air carrier which is not subject to an operating ban, provided that the relevant safety standards are complied with.

A wet lease is where an airline pays to use an aircraft with a crew, fuel, and insurance all provided by the leasing company at a fee.

Two more to the list

The EU Air Safety List, maintained to ensure passenger safety, is updated periodically based on recommendations from the EU Air Safety Committee.

The latest revision, which followed a meeting of aviation safety experts in Brussels from November 19 to 21, 2024, now includes 129 airlines.

Of these, 100 are certified in 15 states where aviation oversight is deemed insufficient, and 29 are individual airlines with significant safety deficiencies.

Alongside Air Tanzania, other banned carriers include Air Zimbabwe (Zimbabwe), Avior Airlines (Venezuela), and Iran Aseman Airlines (Iran).

Commenting on the broader implications of the list, Tzitzikostas stated, “Our priority remains the safety of every traveler who relies on air transport. We urge all affected airlines to take these bans seriously and work collaboratively with international bodies to resolve the identified issues.”

In a positive development, Pakistan International Airlines (PIA) has been cleared to resume operations in the EU following a four-year suspension. The ban, which began in 2020, was lifted after substantial improvements in safety performance and oversight by PIA and the Pakistan Civil Aviation Authority (PCAA).

“Since the TCO Authorisation was suspended, PIA and PCAA have made remarkable progress in enhancing safety standards,” noted Tzitzikostas. “This demonstrates that safety issues can be resolved through determination and cooperation.”

Another Pakistani airline, Airblue Limited, has also received EASA’s TCO authorisation.

Decisions to include or exclude airlines from the EU Air Safety List are based on rigorous evaluations of international safety standards, particularly those established by the International Civil Aviation Organization (ICAO).

The process involves thorough review and consultation among EU Member State aviation safety experts, with oversight from the European Commission and support from EASA.

“Where an airline currently on the list believes it complies with the required safety standards, it can request a reassessment,” explained Tzitzikostas. “Our goal is not to penalize but to ensure safety compliance globally.”

Airlines listed on the EU Air Safety List face significant challenges to their international operations, as the bans highlight shortcomings in safety oversight by their home regulatory authorities.

For Air Tanzania, this inclusion signals an urgent need for reform within Tanzania’s aviation sector to address these deficiencies and align with global standards.

The path forward will require immediate and sustained efforts to rectify safety concerns and regain access to one of the world’s most critical aviation markets.

Source: allafrica.com

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