Investment for African Development - Sociology - Lecture Slides, Slides of Sociology

Download Investment for African Development - Sociology - Lecture Slides and more Slides Sociology in PDF only on Docsity! Investment for African Development: Making it happen Docsity.com CONTENTS/OVERVIEW 1. Introduction 2. Economic Policy Reform 3. Investment Policy Framework 4. Private Sector Development Initiatives a) National Investment Steering Committee (NISC) b) Tanzania National Business Council (TNBC) c) Investment guarantees & settlement of disputes 5. Remaining regulatory, legislative & administrative impediments to private investment 6. Tanzania Investment Regime 7. Challenges and The way Forward 8. Conclusion Docsity.com TANZANIA ECONOMIC REFORMS The Government has implemented reforms aimed at transforming its economy from one based on a large State-owned sector and central planning to a market-and private-sector-based economy. 16 major reform legislations were enacted between 1990 and 2004. These reforms have helped Tanzania to improve efficiency and weed out ills that impede growth. Docsity.com Major reform legislations enacted between 1990 and 2002 are as follows:-  The Income Tax Act 2004  The Companies Act No. 12 of 2002  The Export Processing Zones Act No. 11 of 2002  The Commission for Human Rights & Good Governance Act No. 7 of 2001  The Land Act 1999  The Mining Act 1998  The Privatisation Trust Act No. 7 of 1997  The Financial Laws Miscellaneous Amendments Act 1997  The Tanzania Investment Act No. 26 of 1997  The Tanzania Revenue Authority Act No. 11 of 1995  The Immigration Act No. 7 of 1995  Capital Market and Security Act No. 5 of 1994 and as amended by Capital Market and Security Act No. 4 of 1997  The Public Corporations Act 1992 and Amendment Act 1993  The Foreign Exchange Act 1992  The Banking and Financial Institutions Act No 12 of 1991  The Loans and Advances Realization Act 1991 TANZANIA ECONOMIC REFORMS Docsity.com  TIC established in 1997 to be “The Primary Agency of the Government to coordinate, encourage, promote and facilitate investment.  “One-Stop Facilitative Centre” with officers from Ministry of Trade & Industry, Business Registration & Licensing Authority (BRELA), Lands, Immigration, Labour and TRA stationed at the TIC.  TIC Relationship Managers regularly visit investment projects to follow up on implementation and obtain feedback to resolve any business problems.  Facilitates investors to acquire land by offering them land derivative titles on behalf of the Govt. TANZANIA INVESTMENT CENTRE (TIC) Docsity.com NATIONAL INVESTMENT STEERING COMMITTEE (NISC) • Spearheading investment policy formulation, • Fast track solutions to investors problems of investors, • Identify and supervise the elimination of legal impediments to investment • Chaired by the Hon. Prime Minister, • Other members of the committee are Ministers for Finance, Agriculture, Lands, Industry and Trade, President’s Office Planning & Privatisation; Governor of BoT; Attorney General and Executive Director-TIC (Secretary). Docsity.com NATIONAL BUSINESS COUNCIL (TNBC)  National Business Council seeks to enhance Public/Private sector “smart partnership”.  The Business Council is chaired by the President and the Chairman of Tanzania Private Sector Foundation is Vice Chairman.  TNBC organizes and facilitates Investors Round Table Meetings (IRT); Local and International  The TNBC has resolved a number of business impediments including enactment of a new business friendly land law and abolition of many nuisance taxes. Docsity.com INVESTMENT GUARANTEES AND SETTLEMENTS OF DISPUTES •Tanzanian law offers guarantees against nationalization and expropriation, •Tanzania is a member of both the International Centre for Settlement of Investment Dispute and Multilateral Investment Guarantee Agency, •Free/Unconditional Transfer of Capital, Profits, dividends and other benefits for investors and employees working in Tanzania Docsity.com REGULATORY PRACTICES OTHER THAN RESTRICTIONS S/No. Regulatory Practices Current Status New Developments 1. Practices encouraging FDI •FDI-targeted tax & and other incentives •Number of bilateral investment treaties (of which with OECD members) •Number of bilateral tax treaties (of which with OECD members) Yes 20 (12) 12 (7) Initiatives are underway to harmonise EAC investment Regimes Pending negotiations 10 Pending negotiations 8 2. Enhancing Policy Transparency •Publications of regulations •Notification prior to regulatory changes •Negative list of restricted sectors •“silent and consent” authorisation Yes Yes Yes Yes Publication through various media including newly parliamentary website at: www.parliament.go.tz Government website at: www.tanzania.go.tz and Treasury at: www.mof.go.tz A good example is at the TIC’s One Stop Centre operation, when seeking authority from other Govt. MDAs MDAs = Ministries, Departments and Agencies Docsity.com BILATERAL INVESTMENT TREATIES. LIST OF BIT SIGNED AS OF JANUARY 2005 S/No OECD Countries Year of Signing S/No Non OECD Countries Year of Signing 1 Denmark 1999 1 South Africa 1959 2 Finland 2001 2 Zambia 1968 3 Germany 1965 3 India 1979 4 Italy 2001 4 Egypt 1997 5 Korea 1998 5 Mauritius 2003 6 Netherlands 2001 6 Zimbabwe 2003 7 Sweden 1999 7 Malawi* 2003 8 Switzerland 1965 8 OPEC Fund* 2003 9 United Kingdom 1994 10 Canada 1995 11 Korea 1998 12 Swiss Confederation 2004 Source: Government of Tanzania * Partial Agreement Docsity.com BILATERAL TAX TREATIES. LIST OF DTTs SIGNED AS OF JANUARY 2005 S/No OECD Countries Year of Signing S/No Non OECD Countries Year of Signing 1 Canada 1995 1 Zambia 1968 2 Denmark 1976 2 South Africa 1959 3 Finland 1976 3 India 1979 4 Italy 1973 4 Kenya (EAC) 2004 5 Norway 1976 5 Uganda (EAC) 2004 6 Sweden 1976 6 Zimbabwe 7 Korea 2003 7 UAE 8 Russia 9 Seychelles 10 Mauritius 11 Egypt 12 Yugoslavia 13 Oman Source: Government of Tanzania * Under negotiations Docsity.com RECENT DEVELOPMENTS • The establishment of the Customs Union Protocol, which was signed on 2nd March 2004, is one of the greatest achievements of the new EAC. • A number of specialized taskforces have been formulated and revision of regulations through task forces such as the Tax Reform Taskforce, the Land Reform Taskforce, and the Labour Reform Taskforce, etc. These task forces include members from different government departments, civil society, and the business community. • Tanzania has also signed a number of international agreements governing the protection of foreign investment in Tanzania including bilateral investment treaties (BIT) and double taxation treaties (DTT). Negotiations are currently in the process to conclude agreements with Zimbabwe, Malawi, Mauritius and South Africa. Docsity.com ATTRACTIONS 1. Beautiful country with friendly people 2. Favourable Investment Environment A. Successful Macroeconomic performance B. Effective “One Stop facilitative Centre” (TIC) C. National Investment Steering Committee D. Tanzania National Business Council for“smart partnership” 3. Abundant Investment Opportunities 4. Talented and skilled labour force. 5. Willingness to listen Docsity.com PERCEPTIONS HINDERING FDI BUREAUCRACY No. of Days to start a business 122 403538 46 85 153 45 92 215 146 97 4 0 50 100 150 200 250 An go la Bo ts wa na DR C Le so th o M al aw i M oz am bi qu e Na m ib ia S/ Af ric a Ta nz an ia Za m bi a Zi m ba bw e Ch in a US A Source: Doing business in 2004 (World Bank) Docsity.com 0 50 100 150 200 250 300 350 400 450 500 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 Years N o. o f R eg is te re d P ro je ct s 0 200 400 600 800 1000 1200 1400 1600 1800 V al ue s of P ro je ct s in U S $ M ill io n No. of Registered Projects Values of Projects (US$ Million) TIC REGISTERED PROJECTS FROM 1995 TO 2004 Docsity.com FDI INFLOWS TO TANZANIA FROM 1992-97 TO 2003 • Despite declining world FDI inflows, FDI into Tanzania has been increasing in the past five years, with an average of US$ 356 million annually. 90 172 248240 467 282 542 0 100 200 300 400 500 600 1992-97 1998 1999 2000 2001 2002 2003 US$ Million * @ * @ Annual average from 1992 to 1997 * Sharp increase was due to huge investment in mining projects Source: World Investment Report - 2004 Docsity.com THE WAY FORWARD Docsity.com THE WAY FORWARD The establishment/formation of programmes such as • Business Environment Strengthening for Tanzania (BEST) • Export Processing Zone (EPZ) • Special Economic Zones (SEZ) • Spatial Development Initiatives (SDIs) • Tanzania National Business Council (TNBC) • National Investment Steering Committee (NISC) Among others, is a manifestation of the Govt’s commitment towards establishing a private sector led economic growth. Docsity.com THE WAY FORWARD • Proactively championing Regional Integration to create bigger markets and investments with enhanced benefits and faster growth to all. • As follow up action to the UNCTAD Investment Policy Review –2003, TIC has commissioned two research studies (i.e. Tanzania comparative/competitive advantages study and a study to evaluate the growth and impact of investment) in order to target more precisely investment promotion & facilitation activities. • New licensing legislation (under BEST programme) • Labour laws being amended Docsity.com