Tanzania’s legal system is underpinned by written laws, where the Constitution of Tanzania is the main source of law. Other sources of law include written laws enacted by the Parliament of Tanzania, customary laws, judicial precedents and international treaties and conventions that have been localised. Tanzania is a common law jurisdiction; common law principles, doctrines of equity and statutes of general application are enforceable in Tanzania, but only so far as local circumstances permit and subject to qualifications.

Foreign direct investment (FDI) in Tanzania is not a “free ride”; it requires several reviews and approval from different authorities, depending on the sector one is intending to invest in.

The Tanzania Investment Centre (TIC) is mandated to oversee foreign investment in Tanzania. In July 2023, the government introduced the Tanzania Investment Regulations, which in turn created the National Steering Committee. This committee has powers to receive and issue directives, and to approve major investment projects having a significant impact on the national economy according to the amount of capital, employment and technology required for the projects.

The TIC has set a minimum initial capital requirement of USD500,000 for an investment wholly owned by a foreigner or a joint venture.

Tanzania’s economic, political and business climate in 2025 shows relative stability, despite ongoing reforms to attract FDI. The government has improved regulatory frameworks to boost investor confidence and streamline processes. The Tanzania Investment (Amendment) Regulations, 2024, shifted leadership of the Investment Technical Committee to the Ministry of Finance and set stricter timelines for ministerial decisions on investor appeals, enhancing accountability. The Public Private Partnership (PPP) (Amendment) Act, 2023, expanded tax incentives for PPP projects, mandated special-purpose vehicles (SPVs) for implementation and broadened dispute resolution to include international arbitration, strengthening investor protections.

In March 2025, new foreign currency regulations mandated that domestic transactions be conducted in Tanzanian shillings (TZS). The aim is to stabilise the currency and reduce dollarisation, but the regulations also introduce currency risk and compliance challenges for foreign investors, who must renegotiate foreign currency contracts and manage exchange rate exposure (with exemptions for foreign loans and diplomatic entities).

A key enforcement development in late 2024 was Tanzania’s USD27 million settlement with Montero Mining over the Wigu Hill expropriation, signalling a commitment to amicably resolve disputes and uphold investor rights.

Looking ahead, the recent enactment of Investment and Special Economic Zones Act No 6l, of 2025, aims to consolidate investment regulation under a new authority – the Tanzania Investment and Special Economic Zones Authority (TISEZA) – as a one-stop centre for investors, and to digitise services and enhance incentives. These reforms are expected to significantly boost FDI inflows and regional competitiveness.

In Tanzania, the most common structures for transactions include share purchases, asset purchases, and mergers and acquisitions (M&A) (amalgamations). The choice of structure often depends on the type of entity being acquired (public versus private), the tax implications, sectoral regulatory requirements and the specific commercial goals of the parties.

For private companies, share purchases are the most frequently used structure, as they allow the buyer to assume ownership of the entire business with relative ease, including existing contracts, employees and licences. Alternatively, asset purchases may be used where the buyer seeks to acquire specific business assets and avoid inheriting historical liabilities.

In contrast, for public companies, acquisitions typically require a more structured approach in compliance with the Capital Markets and Securities Authority (CMSA) regulations. Takeovers of listed companies must comply with the Capital Markets and Securities (Takeovers and Mergers) Regulations, 2002, which mandate disclosure, pricing rules and approval thresholds.

There are several key factors to consider when selecting a transaction structure in M&A, including regulatory approvals, tax considerations, transfer of liabilities and ease of integration.

Where a transaction involves a minority investment, share subscriptions or purchases of a minority equity interest are common. These transactions generally require fewer regulatory approvals but demand robust shareholder agreements.

In addition to FDI regulations, domestic M&A transactions in Tanzania are subject to several layers of regulatory oversight, depending on the nature and sector of the target business.

A key legal and regulatory regime applicable to M&A transactions is the Fair Competition Act, administered by the Fair Competition Commission (FCC). Transactions that meet certain turnover or market share thresholds require notification and approval of the FCC before completion. The FCC conducts a merger assessment to determine whether the transaction is likely to substantially lessen competition in any market in Tanzania.

Where the target is a public company, the transaction must comply with the CMSA’s takeover regulations, which require mandatory offers when an acquirer crosses certain control thresholds (typically 35% shareholding).

Sector-specific approvals may also be required. For example, the Bank of Tanzania must approve M&A transactions involving banks and financial institutions, the Tanzania Insurance Regulatory Authority (TIRA) must approve acquisitions in the insurance sector and the Energy and Water Utilities Regulatory Authority (EWURA) or Tanzania Communications Regulatory Authority (TCRA) may be involved for regulated utilities or telecom entities.

In Tanzania, corporate affairs are governed by various pieces of legislation, including the Companies Act, Chapter 212 (Revised Edition, 2023), the Public Private Partnership Act (Chapter 103, 2023), the Fair Competition Act (Chapter 285, 2023), the Income Tax Act (ITA; Chapter 332), the Public Corporation Act, the Capital Market Securities Act, the Mining Act (Chapter 123, 2023) and the Banking and Finance Act.

These pieces of legislation introduce frameworks and mechanisms governing the general affairs of both local and foreign companies operating businesses in Tanzania, guiding companies from the period of formation to operation and dissolution, as well as in terms of tax liabilities and regulatory and sectoral compliances.

The foregoing legislation lays down corporate governance rules for the management and operation of companies in Tanzania. Corporate entities in Tanzania take two forms, public and private companies, each governed by different rules. The governance landscape for public companies is more formal. The CMSA has issued the Guidelines on Corporate Practices by Public Listed Companies, which recommend best practices including board independence, the establishment of audit and remuneration committees and regular stakeholder engagement. Other rules include mandatory disclosure requirements, periodic reporting requirements and prohibition of insider trading.

In addition, the Companies Act introduces the requirement to file annual returns for both public and private companies. Annual returns are filed by a company on a designated date, or on the anniversary of the company’s creation, through the online registration system (ORS) of the Business Registrations and Licensing Agency (BRELA). The returns reflect the governance and financial positions of the company in the past 12 months.

In Tanzania, the law allows the creation of various business entities; the most common one is the public company, which is a company owned by the state that the general public is permitted to purchase shares in. These companies require a minimum of two shareholders and seven directors to be registered, and they are formed to generate revenue for the government for various purposes. A public company may also take the form of a statutory company or corporation established according to the enactment of specific legislation.

The private company is another common form of corporate legal entity, and it requires a minimum of two shareholders and two directors. Private companies are formed by individuals with the common interest of doing business. Members of the general public are not allowed to purchase shares in these companies; only members can purchase shares.

When a foreigner wants to invest in Tanzania, there is always a fear of possible harm to the business because of the uncertainty associated with investments made from a foreign country. To ensure that their investment is protected, key factors that the investor must consider when deciding which corporate or legal entities to invest in include policies and governance, infrastructure, tax liability, currency stability, market availability, and sectoral regulations and compliance. In recent years, the government has been taking steps to make Tanzania a hub for FDI, namely the various mechanisms and legislations mentioned in the foregoing. In particular, the recently enacted Special Economic Zones Act No 6 of 2025 establishes TISEZA as a “one-stop centre” for investors. TISEZA aims to integrate the Export Processing Zone Authority and the TIC to centralise and facilitate investment.

The legal relationship between a company and its minority investors is a fiduciary one, whereby the directors of a company must act in the best interests of all shareholders, including minority ones. This relationship is also contractual in nature, where minority shareholders – through purchasing shares in a company – enter into a relationship governed by the Companies Act, as well as by the company’s memorandum and articles of association and, where applicable, a shareholders’ agreement. The rights of minority shareholders include participation rights, whereby they retain the right to attend and vote at shareholders’ meetings. There are also protection rights: when a minority shareholder is affected by the actions of a majority investor that arbitrarily exercises powers in a manner unfairly prejudicing the interest of minority investor, the latter may seek redress from the court. A minority shareholder may also exit the company at any time by transferring their shares.

In public companies in Tanzania, a minority shareholder is typically defined as a shareholder who holds less than 50% of the voting rights, and they are protected through a combination of statutory rights under the Companies Act, Chapter 212 (Revised Edition, 2023), the Capital Markets and Securities Act, Chapter 79 (Revised Edition, 2023) and the rules and regulations of the CMSA and Dar es Salaam Stock Exchange (DSE). These legal instruments aim to protect minority shareholders from unfair prejudice and ensure they can participate meaningfully in corporate governance.

Legal protection for minority shareholders in public companies is available through various mechanisms, including the following.

• Statutory protection against oppression: Under Section 233 of the Companies Act, a minority shareholder can petition the High Court if the company’s affairs are being conducted in a manner that is oppressive, unfairly prejudicial or discriminatory to them. The Court may order remedies such as share buyback, appointment of independent directors or regulation of the company’s future affairs.

• Derivative actions: Under Section 234 of the Companies Act, a minority shareholder may bring a derivative action on behalf of the company if directors or majority shareholders are committing wrongs against the company, and the company itself fails to act.

• Voting rights: These include the right to attend and vote at annual general meetings (AGMs) and extraordinary general meetings (EGMs) on matters such as the appointment/removal of directors, approval of dividends and major corporate actions.
• Protection during takeovers and mergers: Under the CMSA Takeover and Mergers Regulations, minority shareholders are protected during acquisitions. For example, in a mandatory takeover, an acquirer must make a uniform offer to all shareholders (including minorities).

As part of corporate governance, there are various laws in Tanzania imposing disclosure obligations, generally with the intention of achieving transparency, regulatory compliance and a relatively efficient and competitive environment.

Disclosure of Incorporation in Another Jurisdiction

Foreign companies investing in Tanzania must disclose their country of origin by submitting a certificate of incorporation. Their financial position and source of funds must also be disclosed. The regulator, BRELA, requires foreign companies to submit their most recent accounts and related reports, and a list of shareholders and directors of the company in the country of origin.

Disclosure of the Source of Initial Capital

FDI in the agricultural sector is regulated by the TIC, and the initial capital to obtain a permit to invest is USD500,000. The source of funds in the country of origin must also be disclosed.

Local Content Report

The Tanzanian petroleum sector is governed by the Petroleum Act, Chapter 392 and its regulations, which require the contractor to submit a “local content report” in which the investor must detail its operations, how the investment promotes knowledge transfer (eg, by providing training to locals employed in the sector, where the number of training sessions should be disclosed, as well as the target number of local employees) and how the venture will promote locally goods and services.

Disclosure of M&A

M&A in Tanzania is governed by the FCC, created by the Fair Competition Act, Chapter 285 (Revised Edition, 2023). The law requires that when the combined turnover of two merging entities meets the threshold of TZS3.5 billion, this must be notified to the FCC prior to the merger. Notification and disclosure of the merger is designed to prevent arbitrary dominance and protect competitors, thus ensuring a fair business environment.

Disclosure of Beneficial Owners

The Companies Act, Chapter 212 (Revised Edition, 2023), through Companies (Beneficial Ownership) Regulations Government Notice 478 of 2023, introduced a requirement for a company to submit information on its beneficial owners within 30 days from the date on which they become beneficial owners. The rationale is to ensure transparency and accountability in corporate governance, and to avoid crimes such as tax evasion and money laundering.

Capital markets in Tanzania are governed by the Capital Markets Securities Act, Chapter 79 (Revised Edition, 2023), which promotes and ensures fair, equitable and efficient capital market business practices and stock exchange in Tanzania.

The Capital Market Securities Act created the CMSA, which is the authority entrusted with regulating capital markets. According to the CMSA, the major sources of funds and finance for businesses in Tanzania are selling shares and security bonds, asset leasing and government grants.

Disclosure obligations that must be satisfied to be listed on the DSE include publishing prospectuses, financial audits and corporate governance standards. Listed companies must also adhere to continuous reporting obligations and insider trading restrictions.

Foreign investors are generally permitted to invest in listed securities, subject to certain restrictions in some sectors. Additional disclosure and notification requirements typically arise only if the investment involves the acquisition of a significant stake in a public company. Notably, cross-border listings and foreign entities offering securities in Tanzania must obtain CMSA approval and comply with certain requirements, including the submission of offering documents and alignment with local investor protection standards.

Foreign investors structured as investment funds may be subject to regulatory review if the fund intends to carry out capital-raising or fund management activities within Tanzania. According to the Capital Markets and Securities (Collective Investment Schemes) Regulations, such funds must be approved and registered by the CMSA if they are marketed or operated in Tanzania.

However, exemptions may apply in cases where the investment fund is not actively soliciting Tanzanian investors, or where the fund is investing directly into Tanzanian entities without public fundraising. Regulatory reviews cover the fund’s legal structure, governance, disclosure practices and protection offered to Tanzanian investors. Funds may also be required to appoint a local representative or fund manager licensed by the CMSA.

Overall, while regulatory oversight exists to ensure transparency and investor protection, Tanzania remains open to foreign capital participation, provided compliance with local rules is maintained.

Tanzania has a merger control regime governed by the Fair Competition Act (Act No 8 of 2003), as amended by the Fair Competition (Amendment) Act (Act No 13 of 2024) (the “Competition Amendment Act”) and the Competition Rules, 2018, and regulated by the FCC.

Pursuant to Section 11 of the Fair Competition Act, a merger must be notified (whether occurring in Tanzania or elsewhere) when it results in the direct or indirect change of control of an asset, business or part of a business in Tanzania, and the combined asset value or annual turnover of the acquirer and target entity exceeds the merger threshold amount set by the FCC. The threshold specified in the Fair Competition (Threshold for Notification of a Merger) Order, 2006 (as amended) is TZS3.5 billion.

There are no prescribed exemptions for any category of foreign investor or investment; however, the Competition Amendment Act allows the FCC to approve a merger that is likely to result in substantial benefits for the public that would outweigh any detrimental effects – namely, preventing, restraining or distorting competition. This approval does not supersede the requirement to notify the FCC; rather, it allows the FCC to overlook the effects of an otherwise-prohibited merger when there are substantial benefits for the public, such as the transfer of skills, improvement of production and distribution of goods and services and promotion of technical or economic progress.

The process for merger approval begins with the filing of a notification to the FCC, under a prescribed form (number 8) provided under the Competition Rules, 2018. There is no prescribed timeline for submitting the notification, although it must be submitted before implementation of the M&A. Once the application is submitted, the FCC is required to issue a notice of complete or incomplete filing within five working days of receipt of the application. Where the FCC issues a notice of complete filing, it will conduct an initial review of the application within 14 days from the date of issuing the notice of complete filing. If the FCC issues a notice of incomplete filing, the parties will be required to submit the missing information/documents within the timeframe specified by the FCC in the notice of incomplete filing. After the application has been reviewed and the FCC determines to examine the transaction, the FCC will issue a notice prohibiting implementation of the transaction for a period of 90 days, during which the FCC is required to complete its assessment. The law permits the FCC to extend the 90-day review period by a further 30 days.

After the FCC has completed its review, it will issue a merger clearance approval; following this, the transaction can be implemented. The Fair Competition Act prohibits implementing a notifiable transaction unless a merger filing has been filed with the FCC and a merger clearance approval is issued. Contravening this requirement mandates the FCC to inter alia impose a penalty of up to 10% of annual turnover that has a source in Mainland Tanzania.

The FCC is the main authority regulating competition matters and assessing the effects of investments on competition. Other regulatory authorities may be involved, depending on whether the sector in which the acquirer/target conducts business is a regulated sector. For instance, M&A in regulated sectors such as telecommunications, banking/financial and energy usually require consents from the respective regulatory authorities in addition to FCC approval before the transaction can be implemented. The criteria are similar to those under the Fair Competition Act, and the regulatory authorities have the mandate to investigate any competition issues and give recommendations to the FCC. Consideration and analysis is given to several issues, including whether the proposed merger is likely to lessen competition and whether the transaction is likely to be detrimental more so than beneficial to the public.

Where an act or omission that has contravened the Fair Competition Act has caused damage to other people, the FCC may issue compensatory orders requiring payment of money or costs. Furthermore, the FCC may issue a compliance order against a person who has committed an offence against the Fair Competition Act. The compliance order may require the person to refrain from certain conduct, or to take certain actions to comply with the law within a specified time – including disposing of shares or assets and declaring the acquisition void. The FCC may also impose a penalty of up to 10% of the annual turnover that has a source in Mainland Tanzania.

The FCC has the authority to block the implementation of an investment if it is a threat to competition. As mentioned in the foregoing, this can be achieved through compliance orders and the imposition of penalties, including fines and imprisonment. Where a person is not satisfied by any decision or order issued by the FCC, they can appeal to the Fair Competition Tribunal (FCT); thereafter, further appeals can be made to the Court of Appeal of Tanzania as the final court.

Foreign investments are largely regulated by TISEZA. Sector-specific regulatory authorities also regulate FDIs, such as the Energy and Water Utilities Authority in the energy sector, the TCRA in the telecommunications sector and the Bank of Tanzania in financial sectors. All FDIs are subject to review by TISEZA and the relevant sector authority. The reviews usually relate to corporate structure, capital and local content, among other things. No FDIs are exempt from review. However, for strategic and special strategic investors, the government may provide certain fiscal or non-fiscal benefits or incentives, potentially including the unconditional transfer – through authorised dealer banks in freely convertible currency – of net profits or dividends attributable to the investment, withholding tax (WHT) exemptions and import duty exemptions.

The processes for reviewing FDI are not specifically prescribed under the Investment Act, instead depending entirely on the kind of FDI. Generally, where a foreign investor intends to invest in Tanzania, it will be required to incorporate a local subsidiary or register a foreign branch of its company, depending on the specific sectoral requirements. After registration, the investor will be issued with a certificate of incorporation or compliance from the Business Registrations and Licensing Agency (BRELA) and a business licence. Then, the investor can make applications for a taxpayer identification number from the Tanzania Revenue Authority (TRA) and sector-specific licences or permits. Where the investor wishes to own land in Tanzania, it will be required to submit an application to TISEZA for a certificate of incentives, through which it can own land. There is no specific timeline for these processes as they depend on the efficacy of the administrative offices. All required permits and licences must be obtained prior to making the actual investment.

Please see 7.1 Applicable Regulator and Process Overview for a general overview of the processes. The criteria, considerations and analyses differ for partnerships and joint ventures, foreign governments or government-affiliated entities and non-controlling minority investments, mainly in terms of local content requirements – where, in certain sectors, it is necessary for FDI to involve a certain percentage of local ownership.

Relevant authorities may require compliance with the applicable laws for the investment to be made, including shareholding, capital and local content requirements.

Sector-specific regulatory authorities have the ability to challenge FDI, either before or after the investment has been made, where there has been non-compliance with the laws. Where an investor is dissatisfied with the decision issued by the TIC, the investor may appeal to the Minister responsible for investment within 21 days from the date of the decision of TISEZA. Concerning sector-specific regulatory authorities, there may be various bodies with decision-making powers, and the foreign investor may appeal any decision to the body above the initial decision-maker, or to court. For instance, for telecommunication disputes, the matter will be heard and determined by the TCRA, and appeals can be made to the FCT.

There are a myriad of laws, regulations and regimes that are applicable to a foreign investor in effecting an FDI, depending on the industry. These include BRELA for incorporated entities in relation to corporate governance, the TRA for tax issues and the TIC for investment matters (including obtaining a certificate of incentives and specific industry regulatory approval, as applicable). For example, in effecting an FDI in real estate transactions, the foreign investor will be required to incorporate a local subsidiary and obtain a certificate of incorporation and a business licence from BRELA, and then to register as a taxpayer and obtain a taxpayer identification number from the TRA. Then, the investor can approach the TIC for a certificate of incentives, which will allow it to own land through a derivative title.

In Tanzania, companies conducting business are generally subject to corporate income tax under the ITA, Chapter 332 (Revised Edition, 2023). The standard corporate tax rate is 30%, applicable to both resident companies and non-resident companies operating through a permanent establishment in Tanzania. However, some companies enjoy a reduced corporate tax rate depending on the nature of their business, as provided under the first schedule to the ITA. A non-resident company is taxed only on income having a source in Tanzania, including business income, interest, dividends, royalties and management or technical fees derived from Tanzanian sources.

Partnerships are treated as pass-through entities for income tax purposes. They are not taxed at the entity level; instead, the partners are taxed individually on their share of the partnership income.

Tanzania imposes WHT on payments made to both resident and non-resident persons in accordance with the ITA. Dividends are subject to WHT at a rate of 5% for companies listed on the DSE, and 10% for other companies. Interest payments are taxed at a flat rate of 10%. Royalties and service fees are subject to WHT at a rate of 5% when paid to resident entities, and 15% when paid to non-resident entities.

These WHT rates may be reduced under the terms of double taxation agreements (DTAs) that Tanzania has signed with various countries, including Canada, India, Italy, South Africa, Sweden and the United Kingdom.

Common tax planning strategies employed in Tanzania to mitigate tax liability include the carry forward of tax losses, which allows businesses to defer tax payments by offsetting future taxable income. Investors can also take advantage of various tax incentives, such as tax holidays and exemptions, especially when registered with TISEZA. Another strategy is the depreciation uplift, where the acquisition of assets is structured to increase the depreciable base, thereby enhancing capital allowances and reducing taxable income. Additionally, earnings stripping, the practice of managing interest expenses to reduce taxable profits, is used as part of broader tax optimisation efforts.

Tanzania generally taxes capital gains arising from the disposal of business or investment assets, including gains realised by non-residents. For non-residents, the applicable capital gains tax rate is 20%. However, gains from the sale of listed securities on the DSE are exempt from capital gains tax, provided the seller holds less than 25% of the shares in the company. Additionally, gains derived from the realisation or transfer of mineral rights and mineral information to a partnership entity formed between the government of the United Republic of Tanzania and an investor are exempt from capital gains tax.

Tanzania enforces several anti-avoidance and anti-evasion measures to ensure tax compliance at the highest level. Under the ITA, the TRA has the mandate to recharacterise transactions that lack commercial substance. Additionally, the Transfer Pricing Regulations require that related-party transactions, particularly those involving cross-border dealings, be conducted at arm’s length and supported by comprehensive documentation. Thin capitalisation rules further restrict interest deductions where the debt owed to a non-resident parent company exceeds prescribed debt-to-equity ratios, preventing excessive leveraging for tax benefits.

Employment and labour matters in Tanzania are governed by the Employment and Labour Relations Act (ELRA), Chapter 366 (Revised Edition, 2019) and the Labour Institutions Act, Chapter 300 (Revised Edition, 2019), together with various subsidiary legislations made thereunder.

The ELRA allows for the formation and registration of the trade union, and upon registration, trade unions may be recognised as exclusive bargaining agents of the employees within that unit. Under the ELRA, trade unions are allowed to establish their own collective bargaining arrangements by collective agreements.

For any foreign investors considering FDI, it is important to note that the employment of foreigners is strictly regulated. Any foreigner intending to work in Tanzania must obtain both work and residence permits. Furthermore, the employment laws require foreign investors to prioritise recruitment of locals rather that foreigners, and, if a foreigner is employed, there has to be a succession plan in place indicating how a local employee will eventually take over the role. Additionally, in terms of employment taxes, a foreign investor with more than ten employees will be liable to remit to the TRA a skills and development levy, charged at 3.5% of the total gross cash emoluments of employees.

In Tanzania, the most common framework used for compensating employees is cash, composed of wages and other allowances. In some cases, an employer may also give benefits in kind – eg, provision of transportation. Where there is acquisition, change of control or some other investment transaction, an employee will be subjected to termination by operational requirements (retrenchment). Under the ELRA, a terminated employee is eligible for several statutory benefits.

Under Section 39(c) (v) of the ELRA, the employer is required to pay the employee severance pay, which is equivalent to seven days’ basic wage for each completed year of continuous service up to a maximum of ten years. Other forms of compensation are subject to consultation with an employee, but at a minimum include the following:

• any annual leave pay due for leave that the employee has not taken;
• remuneration for work done before the termination – under Section 45(1)(a) of the ELRA, the employer has an obligation to pay the employee for all the work done before the retrenchment; and
• repatriation costs – under Section 44 of the ELRA, an employee is entitled to transportation allowance, for him or herself and all of his or her belongings, where s/he is terminated at a place other than where they were recruited.

The employment laws protect an employee in case of an acquisition by requiring a compulsory and robust retrenchment process, with the employee engaged directly or through a trade union. Thus, an employer would be required to inform an employee as soon as there is an acquisition, or as soon as one is contemplated, and also to engage an employee through a compulsory consultation process before the latter is compensated and retrenched.

There is no statutory obligation requiring employees to automatically transfer their employment to a new or acquiring entity. However, under the Transfer of Businesses (Protection of Creditors) Act, Chapter 327, the previous employer remains liable for any debts or liabilities, including employment-related obligations that existed prior to the acquisition or change of ownership, unless there is a written agreement transferring such liabilities to the new owner, and proper notice has been given to creditors.

Tanzania does not have a works council system. Nevertheless, Sections 67 and 68 of the ELRA provide for the formation and recognition of trade unions. Employees are legally entitled to join trade unions and may be represented by their union in matters related to their employment. Where a collective bargaining agreement exists, the retrenchment process, including compensation payable, should adhere to the provisions of such agreement.

Intellectual property is an important aspect in screening FDI in Tanzania, especially where the FDI is being effected through merger/acquisition of an existing entity. Intellectual property is normally reviewed by an intellectual property attorney rather than a specific regulatory authority. Targets of the review include intellectual property contracts and certificates of intellectual property rights (IPRs), in addition to official searches of intellectual property registries including BRELA and the Copyright Society of Tanzania (COSOTA). The criteria are based inter alia on scrutinising the ownership of IPRs, exclusivity versus non-exclusivity, permits, licences and certificates of IPRs, confidentiality arrangements, financial obligations, assignments and dispute resolution mechanisms. Sectors such as telecommunications, media and agriculture, as well as sectors dealing in information communication technology and manufacturing, require more scrutiny because of the nature of the agreements entered into with employees and third parties that involve the development of IPRs.

Tanzania offers strong intellectual property protection. There are no particular sectors in which it is difficult to obtain intellectual property protection.

Data protection is governed by the Personal Data Protection Act, Chapter 44 (Revised Edition, 2023) and its regulations. The laws apply to Tanzania and have an extraterritorial scope, potentially extending to a foreign investor in their own country in circumstances where there is cross-border data transfer. There is a strong focus on enforcing the laws, which may include fines of up to TZS10 million and/or imprisonment, as ordered by the Personal Data Protection Commission. Practically, compensatory orders cannot be issued above the provable economic losses but may be significant where the same includes general damages that are derived from other circumstances, including psychological torture due to personal data violation.