Foreign Direct Investment in Tanzania. An Analysis of its Investment Laws

Abstract

Foreign direct investment (FDI) as a source of economic development has been embraced by most nations in recent years. Substantial liberalization of existing investment laws has been pursued to promote the seamless influx of FDI into some of these economies. National foreign investment rules, legislation and the legal structure of international investments matter in attracting FDI to a greater number of developed countries, including Tanzania. The control of the activities of FDI in a destination country is seen at three different phases. The national, regional as well as a third stage which requires regulation at the international level. In this article, attention shall be given to the model of Tanzania’s investment code for foreign investment. A study will be made on the various investment laws providing for the admission of FDI in Tanzania, the handling of foreign direct investors and their deposits, movement of deposited foreign funds, and dispute settlement mechanisms. Recommendations shall be made where foreign investment regulations are found to be subpar when contrasted with the rest of the country.