The Tanzanian government has introduced a legislative proposal aimed at attracting investments from its diaspora by amending restrictive laws. The proposed Miscellaneous Amendments Bill 2024 seeks to grant Tanzanians living abroad special status, enabling them to establish businesses in key economic sectors back home.
The bill, which has been tabled in Parliament for debate, proposes changes to the Immigration Act, Cap 54, and the Land Act, Cap 113. These amendments would allow Tanzanians abroad to access land occupancy titles and benefit from investment incentives through the Diaspora Tanzanite card.
Historically, land and property ownership in Tanzania has been restricted to citizens, creating barriers for those with dual citizenship. The Miscellaneous Amendments Act 2024 aims to dismantle these barriers, allowing diaspora members to own land and properties in Tanzania.
During her official visit to South Korea in June, President Samia Suluhu Hassan addressed Tanzanians in Seoul, promising to review and amend the Immigration Act. She assured that her government would provide Tanzanians abroad with special status, facilitating their residency in Tanzania without a complicated visa process. President Hassan emphasized the importance of creating a conducive legal environment to enable diaspora members to invest in Tanzania, particularly in agriculture, manufacturing, and services.
President Hassan highlighted the significant contributions of the Tanzanian diaspora, noting investments of about Tsh280 billion ($106 million) in housing and shares worth Tsh6.45 billion ($2.4 million) in UTT Asset Management and Investors Services (UTT AMIS) by 2023.
The Tanzania Investment Centre (TIC) has been actively encouraging East African Community (EAC) citizens to establish joint businesses in Tanzania through harmonized regulations within the EAC region. The Ministry of Foreign Affairs and the East African Cooperation has also set up a diaspora database to assist Tanzanians abroad in registering for business and investment opportunities, leveraging the country’s ample and suitable land for such endeavors.
Despite its rich agricultural resources, Tanzania has struggled to attract vibrant investments in agriculture, resulting in limited returns from cash crops and a weak agro-industrial base. According to the Ministry of Agriculture, Tanzania possesses 44 million hectares of cultivable land, but only 15 million hectares are currently under cultivation for both cash and food crops.
Investment in livestock is seen as a lucrative business opportunity in Tanzania, given the country’s substantial livestock and pastureland resources. The Ministry of Livestock and Fisheries reports that Tanzania has around 38 million cattle, 28 million goats, 9 million sheep, and 4 million pigs, making it second only to Ethiopia in Africa in terms of livestock numbers. However, traditional livestock breeding practices and a lack of ranching investments have hindered higher revenue gains from this sector.
In conclusion, the proposed legal reforms represent a significant step towards encouraging diaspora investment in Tanzania. By removing restrictive laws and providing special status to Tanzanians abroad, the government aims to attract much-needed investments that can boost the country’s economic growth and development. The success of these reforms will depend on their effective implementation and the continued support of the Tanzanian diaspora community.