The Evolving Investment Regulatory Landscape in Tanzania: A Quest for a New Legal Regime

Abstract

Abstract The legal and regulatory framework on investment in Tanzania has been evolving and influenced by precipitating internal and external factors. Since independence, investment policies and laws have been frequently adjusted to embrace the political ideologies of the regime in power, a major change being a shift from state-controlled to liberal economic policies. Consequent to such changes, Tanzania has had statutory changes on investments with varying regulatory set ups and objectives. This paper interrogates the historical evolution of the investment laws in Tanzania by pointing out the driving forces at each epoch of changes. It posits that in view of changing national and regional contexts, the investment legislation should be reoriented to capture the emerging dynamics. It highlights a regulatory conundrum arising from duality of regulatory regimes in Tanzania and the recent legislative reforms such as those on sovereignty over natural resources which contain legal obligations which contradict the framework of the national investment legislation and bilateral investment treaties (BITs). The paper argues that the ever-changing investment laws creates uncertainties and uncertainties to investors and thus is due for a wholesome review in order to address the existing regulatory controversies.