Singapore sees Tanzania as a major economic gateway in Africa

Singapore has formally recognised Tanzania as a pivotal economic gateway in Africa, a sentiment underscored by recent high-level bilateral engagements. This article examines the evolving legal and regulatory landscape in Tanzania that facilitates this strategic partnership, focusing on key legislative reforms and bilateral agreements. Recent developments, including the enactment of the Tanzania Investment Act, 2022, the establishment of the Tanzania Investment and Special Economic Zones Authority (TISEZA), and the signing of a Double Taxation Agreement (DTA) with Singapore, signal Tanzania's commitment to creating a more attractive investment climate. For legal practitioners, understanding these frameworks is crucial for advising clients on investment protection, dispute resolution, trade facilitation, and navigating the opportunities arising from this strengthened economic alliance.

Singapore's President Tharman Shanmugaratnam recently highlighted Tanzania's strategic importance as one of Africa's most promising economies, citing its geographical location, robust port infrastructure, and its role as a vital trade gateway for East Africa. These remarks, made during official talks with President Samia Suluhu Hassan at State House in Dar es Salaam, underscore a deepening economic relationship between the two nations. The recognition by a global economic powerhouse like Singapore signals a significant vote of confidence in Tanzania's potential to attract foreign direct investment and enhance regional trade.

This burgeoning partnership is not merely aspirational; it is underpinned by a series of legal and policy reforms in Tanzania aimed at improving the ease of doing business and safeguarding foreign investments. For legal professionals, this presents a critical juncture to understand the intricacies of Tanzania's investment regime, trade facilitation measures, and dispute resolution mechanisms. This article will delve into the key legal developments and bilateral instruments that are shaping Tanzania's role as an economic gateway, offering insights into the opportunities and challenges for international investors and their legal advisors.

Tanzania has progressively reformed its legal framework to foster a more conducive environment for foreign investment. A cornerstone of this effort is the Tanzania Investment Act, 2022, which repealed the previous 1997 Act. This new legislation aims to create a more favourable investment climate by, among other things, setting a minimum capital threshold of USD 500,000 for foreign investors and guaranteeing against expropriation without fair, adequate, and prompt compensation. The Act also provides foreign investors with access to arbitration for dispute resolution with the Tanzania Investment Centre (TIC) or the Government.

Further streamlining investment processes, the Tanzania Investment and Special Economic Zones Authority (TISEZA) was established under the Investment and Special Economic Zones Act No. 6 of 2025, merging the former Tanzania Investment Centre and the Export Processing Zones Authority. TISEZA now functions as a one-stop centre for investors, coordinating, promoting, and facilitating investment across the country. Complementing this, the Special Economic Zones Act, 2006 (and its subsequent integration into the TISEZA Act), provides for the establishment and management of Special Economic Zones (SEZs) and Export Processing Zones (EPZs), offering various incentives to attract both local and foreign investment.

Crucial to Tanzania's role as a trade gateway is its port infrastructure, governed by the Ports Act No. 17 of 2004, which established the Tanzania Ports Authority (TPA). The TPA is responsible for managing and operating all sea and inland waterways ports, including the principal port of Dar es Salaam, which handles approximately 90% of the country's cargo traffic and serves several landlocked neighbouring countries. Moreover, the Public Private Partnership (PPP) Act, Cap. 103 (R.E. 2023), with its recent amendments, has introduced significant changes to streamline PPP project development, including provisions for international arbitration in dispute resolution and allowing public sector minority shareholding in Special Purpose Vehicles (SPVs).

The recent signing of a Double Taxation Agreement (DTA) between Singapore and Tanzania on June 9, 2026, marks a significant legal milestone, clarifying taxing rights and capping withholding taxes on dividends (7.5%), interest (10%), and royalties (10%). This DTA, which includes provisions to counter tax base erosion and profit shifting, is expected to lower barriers to cross-border investment and trade, providing greater certainty for businesses. This is particularly relevant for Singaporean entities looking to leverage Tanzania's strategic location and for Tanzanian businesses seeking to expand into Southeast Asia.

Investment protection and dispute resolution mechanisms in Tanzania have seen notable improvements. The Tanzania Investment Act, 2022, explicitly guarantees against nationalisation or expropriation without due process and fair compensation, and importantly, grants foreign investors access to arbitration for disputes with the government. Tanzania's adherence to international arbitration standards is further solidified by its membership in the International Centre for Settlement of Investment Disputes (ICSID) and its status as a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. The Arbitration Act, 2020, which largely mirrors the English Arbitration Act, 1996, also provides a modern framework for arbitration in mainland Tanzania, enhancing investor confidence in the impartiality and enforceability of arbitral awards. Furthermore, recent amendments to the PPP Act now allow for international arbitration in PPP disputes, addressing a previous limitation that mandated local judicial bodies.

Trade facilitation is another area undergoing significant legal and operational enhancements. Tanzania ratified the WTO Trade Facilitation Agreement (TFA) in 2020 and has been actively implementing a Single Window System (TANCIS/TeSWS) to streamline customs procedures and reduce clearance times. This digital integration, managed by TISEZA, aims to connect all relevant regulatory authorities, thereby simplifying the process for importers and exporters. As a member of the East African Community (EAC) Customs Union, Tanzania applies a Common External Tariff (CET), with provisions for duty remission schemes that can benefit manufacturers. However, practitioners should be aware of ongoing challenges, such as reported inconsistencies in the application of tax incentives by the Tanzania Revenue Authority (TRA) and bureaucratic delays, which necessitate thorough due diligence.

The focus on Special Economic Zones (SEZs) and Export Processing Zones (EPZs) under TISEZA offers specific incentives for investors, including tax benefits and streamlined regulatory processes, particularly for export-oriented manufacturing and logistics. These zones are critical to leveraging Tanzania's port capabilities and its role as a regional hub. While the legal framework for land ownership prohibits freehold acquisition by foreigners, long-term rights of occupancy (leases) are available, a crucial detail for property-intensive investments. The recent bilateral agreements between Singapore and Tanzania, covering areas like trade facilitation, public service capacity building, and carbon credit trading, further solidify the legal and policy foundation for expanded economic engagement.

The enhanced economic partnership between Singapore and Tanzania, solidified by recent high-level visits and the signing of multiple agreements, presents a dynamic landscape for legal practitioners. Tanzania's ongoing legal reforms, particularly the Tanzania Investment Act, 2022, the establishment of TISEZA, the modernised Arbitration Act, 2020, and the recent Double Taxation Agreement with Singapore, collectively aim to create a more predictable and investor-friendly environment. These developments are critical for facilitating cross-border trade, protecting investments, and resolving disputes efficiently.

Practitioners advising clients interested in Tanzania should conduct meticulous due diligence, paying close attention to the specific requirements for foreign investment, the nuances of land tenure, and the evolving regulatory landscape within Special Economic Zones. While significant progress has been made in areas like trade facilitation and dispute resolution, ongoing vigilance regarding the practical application of tax policies and bureaucratic processes remains essential. The deepening ties with Singapore, coupled with Tanzania's strategic geographical advantage and commitment to reform, signal a robust potential for growth, making it an increasingly attractive jurisdiction for strategic investments in Africa. Legal professionals are well-positioned to guide clients through these opportunities, ensuring compliance and leveraging the new bilateral frameworks for successful ventures.