Reclaiming Sovereignty over Natural Wealth and Resources in Tanzania: Legal and Regulatory Implications on Investments

Abstract

Abstract The enactment of the legislation on review of unconscionable contractual terms in various investment agreements and the assertion of permanent sovereignty over natural resources marked a significant policy and regulatory shift in Tanzania. The new legislation reopened an opportunity for parliamentary scrutiny over various existing and future investment contracts which, in the opinion of the government, contain unfair terms. The new laws have also sought to introduce a new landscape for investment dispute settlement. This article examines the legal implications of the new laws on the regulation of investments as informed by both: the national investment code and the various international investment obligations assumed by Tanzania. It offers an exploration and critique of the misguided assumption that galvanized the new enactments based on the contemporary narratives and principles of the investment law. It concludes by proposing that the new legislation should be reviewed in line with the constitutional dictates and principles of international investment law.