Most countries around the world, including Tanzania (Zanzibar as a part) sought to establish the proper legal framework in attracting and protecting foreign investments. The enactment of Local Investment Legislations and signing of Bilateral Investment Treaties (BITs) are among the primary tools for achieving the aforementioned goal. The participation of a state into international investment treaties, as well as the ratification of conventions into domestic legislation, makes the protection measures part of their legal structure. Their significance stems from the fact that they contribute to access to justice for foreign investors, hence creating a favorable environment for foreign investments. This article’s objective is to examine the legal framework related to the protection of foreign investments in Zanzibar. In doing so, the article examines the laws responsible for the protection and whether those laws are strong enough for such protection, challenges foreign investors may face and the opportunities for foreign investors especially the Chinese. The study has however established that, the laws are inadequately strong, and therefore the protection is somehow ineffectual. As a result, there is a need for legislative amendments and updates for an effectively protection of foreign investments and their reassurance in the event of any apprehension especially currently where Tanzania has begun the process of regulating its foreign investment regime by passing laws that exclude international arbitration.
(2002). Tanzania Human Rights Jurisprudence. University of Minnesota, Human Rights Library, UN-Habitat 69.
(2010). Doing Business in Zanzibar. https://openknowledge.worldbank.org/bitstream/handle/10986/13439/74678.pdf;jsessionid=2535DC215BAA26D25B9277455E3D3397?sequence
(2020, December 28). Corporate Registration Guide, Zanzibar. https://ark.co.tz/corporate-registration-guide-zanzibar/?print=pdf
(2020, December 9). A Foreigner’s Guide to Property Investment in Zanzibar. https://newslo.com/a-foreigners-guide-to-property-investment-in-zanzibar
Abba, B., & Demarso, Y. (2020). The Legal Framework Governing Investment Areas and Incentives in Ethiopia: A Critical Appraisal. Beijing Law Review, 11, 740-758. https://doi.org/10.4236/blr.2020.113045
Abbas, A. O., & Zhang, X. F. (2016). Impact of Foreign Direct Investment on Employment Evidence: Zanzibar Tourism Industry. International Journal of Economics, Finance and Management Sciences, 4, 250-256. https://doi.org/10.11648/j.ijefm.20160405.13
AG v. Lohay Akonaay & Joseph Lohay. CIVIL APPEAL NO. 31 OF 1994.
Ajl, M. (2020). Reclaiming Africa: Scramble and Resistance in the 21st Century. Review of African Political Economy, 47, 1-3. https://doi.org/10.1080/03056244.2020.1788362
Armstrong, J. D. (2018). Revolutionary Diplomacy: Chinese Foreign Policy and the United Front Doctrine. University of California Press.
Awunyo-Vitor, D., & Sackey, R. A. (2018). Agricultural Sector Foreign Direct Investment and Economic Growth in Ghana. Journal of Innovation and Entrepreneurship, 7, 15. https://doi.org/10.1186/s13731-018-0094-3
Bevan, D. et al. (1987). East African Lessons on Economic Liberalization. Gower.
Beveridge, F. (2000). The Treatment and Taxation of Foreign Investment under International Law: Towards International Disciplines. Manchester University Press.
Bojanic, D. C., Warnick, R., & Musante, M. (2009). An Evaluation of the Relative Importance of Tourism for Islands. Lender School of Business, Quinnipiac University. https://scholarworks.umass.edu/ttra
Budeba, Y. L. (2016). The Tanzanian Fisheries Sector: Challenges and Opportunities. Royal Danish Embassy. https://www.coursehero.com/file/79349212/The-Tanzanian-Fisheries-Sector-Challenges-and-opportunitiespdf/
Bukuku, E. S. (1993). The Tanzania Economy: Income Distribution and Economic Growth (p. 43). Praeger.
Bureau of Economic and Business Affairs (2013, February). Investment Climate Statement. https://2009-2017.state.gov/e/eb/rls/othr/ics/2013/204744.htm
Cabestan, J.-P. (2016). Tanzania-China all Weather Friendship from Socialism to Globalization: A Case of Relative Decline. SUNScholar Research Repository. http://hdl.handle.net/10019.1/100545
Cardenas, L. (2020, May 14). International Negotiation: Overcoming Cultural Barriers in Negotiations and the Importance of Communication in International Business Deals. https://www.pon.harvard.edu/daily/international-negotiation-daily/bridging-the-cultural-divide-in-international-business-negotiations
China Embassy (2008). Political Relations between China and Tanzania and Ministry of Foreign Affairs of the PRC. http://tz.china-embassy.org/eng/ztgx/zz/t427908.htm
China’s Economic Rise: History, Trends, Challenges, and Implications for the United States. https://www.everycrsreport.com/reports/RL33534.html
Constitutional History of Tanzania. https://constitutionnet.org/country/tanzania-country-constitutional-profile
Customs Tariff Act (No. 1 of 1979) (Amendment Act).
Davies, K. (2013). China Investment Policy: An Update. OECD Working Papers on International Investment, 2013/01, OECD Publishing.
Deari, H., Kimmel, V., & Lopez, P. (2008). Effects of Cultural Differences in International Business and Price Negotiations—A Case Study of a Swedish Company with Operations in e.g. South America. International Marketing Strategy FE3014 VT-08. Växjö.
Doing Business in United Republic of Tanzania. https://rexattorneys.co.tz/wp-content/uploads/2020/04/Doing-Business-in-Tanzania-Clean-Ver.-08.04.2020-converted.pdf
Dowans v. TANESCO Misc. Civil Case No. 8 of 2011.
Employment Act (No. 11 of 2005).
Feidi, I. H. (2005). The Fisheries of Zanzibar: Potential for New Investments. NAGA, World Fish Center Quarterly, 28, 37-40.
Finance Act of 1964.
Foreign Investment (Protection) Act. 1963.
Foster, A., Butterfield, V., Chen, W., Chuan and Pushak, N. (2008). Building Bridges: China’s Growing Role as Infrastructure Financier for Sub-Saharan Africa. Public-Private Infrastructure Advisory Facility, World Bank.
Gabagambi, D. M. (2013, May). Tanzania’s Growth Experience Following Economic Reforms: Comparative Perspectives with Vietnam. International Journal of Humanities and Social Science, 3, 97.
Gagné, G. (2019). The Canadian Policy on the Protection of Foreign Investment and the Canada-China Bilateral Investment Treaty. Beijing Law Review, 10, 361-377. https://doi.org/10.4236/blr.2019.103021
Gestrin, M. (2006). Policy Framework for Investment: A Review of Good Practices. Investment Division. Directorate for Financial and Enterprise Affairs.
Green, J. (2018, November 27). Chinese Oil Dripping Ships Dock in Zanzibar. https://theexchange.africa/economic-growth/energy/Chinese-oil-dripping-ships-dock-in-zanzibar
Hikmany, A.-N. (2015, September 2). The Many Land Acquisition Laws of Zanzibar: Is There an Innermost Objective? In International Conference on Advanced Research in Business and Social Sciences 2015. Ahmad Ibrahim Kulliyyah of Laws, International Islamic University Malaysia, 50728. https://ssrn.com/abstract=2687652 https://doi.org/10.2139/ssrn.2687652
IBP USA (2013). Tanzania Investment and Business Guide Volume 1. Strategic and Practical Information. International Business Publications.
Income Tax Act 2004.
Investment Climate Statements 2020: Tanzania. https://www.state.gov/reports/2020-investment-climate-statements/tanzania
Jansson, J., Kiala, C., Liu, H. F., Hon, T., & Burke, C. (2009). Evaluating China’s FOCAC Commitments to Africa and Mapping the Way Ahead. Coming Publication, Centre for Chinese Studies.
Jurisic, K., & Wietzorek, M. (2021, April 21). The First Year of Tanzania’s 2020 Arbitration Act. University of Munich and Taylor Wessing. Kluwer Arbitration Blog. http://arbitrationblog.kluwerarbitration.com/2021/04/21/the-first-year-of-tanzanias-2020-arbitration-act
Karume, S. (2006). Dilemmas of Political Transition: Towards Institutionalisation of Multiparty Democracy in Tanzania. NORAD and OSIS.
Kasanda, P. A. S., & Maganga, M. (2019, March 14). Land Acquisition in Tanzania: What Foreign Investors Should Know. Clyde & Co LLP. https://www.lexology.com/library/detail.aspx?g=ac76bd9d-e19b-43d7-8e66-dee181f53e3f
Loimeier, R. P. L. (2009). The Politics of Islamic Education in 20th Century Zanzibar.
Maina, C. P. (1988). The 1986 Investment Protection Act of Zanzibar. ICSID Review—Foreign Investment Law Journal, 3, 338-351. https://doi.org/10.1093/icsidreview/3.2.338
Maina, C. P. (1994). Foreign Investments in Tanzania: The Mainland and Zanzibar. Friedrich Ebert Stiftung.
Masato, M. (2021, August 11). Zanzibar to Open 50 plus Small Islands for Investors. Daily News.
Mdoe, N. S. Y. (2003, June). Survey on Livestock and Agriculture Development in Zanzibar, Post-Tsetse Eradication: Socio-Economic Study. Department of Agricultural Economics and Agribusiness Sokoine University of Agriculture.
Ministry of Trade and Industry. Zanzibar Industrial Policy (2019-2029). https://www.zanrevenue.org/uploads/znz_investment_policy_2007.pdf
Mittelman, J. H. (1981). Underdevelopment and Transition to Socialism: Mozambique and Tanzania (p. 169). Academic Press.
Monson, J. (2013). Remembering Work on the Tazara Railway in Africa and China, 1965-2011: When “New Men” Grow Old. African Studies Review, Piscataway, 56, 45-64. https://doi.org/10.1017/asr.2013.5
Mosedale, J. (2011). Political Economy of Tourism: A Critical Perspective (p. 162). Routledge. https://doi.org/10.4324/9780203835876
Moshi, H., & Mtui, J. (2008). Scoping Studies on China-Africa Economic Relations: The Case of Tanzania. http://hdl.handle.net/10419/93166
Mpongwe Juma Simba and 8 Others v. Dadi Faki Dadi and Head of Department of Lands and Registration.
Neerso, P. (1972). Some Aspects of Tanzania’s Policies on Private Foreign Investments (p. 17). Institute for Development Research.
Ngumy, D., & Sejpal, S. (2021). Tanzania Terminates Bilateral Investment Treaty with the Netherlands. https://www.africalegalnetwork.com/tanzania/news/legal-alert-tanzania-terminates-bilateral-investment-treaty-netherlands/#:~:text=On%2030%20September%202018%2C%20hours,(BIT)%20between%20both%20nations
Nyerere, J. K. (1966). Freedom and Unity (p. 209). Oxford University Press.
OECD (2002). Global Forum on International Investment Attracting Foreign Direct Investment for Development. FDI and Domestic Private Sector Development in Africa “The Experience of Tanzania”.
OECD Investment Policy Reviews: Tanzania 2013.
Omission on Sustainable Development (1996). Progress in the Implementation of the Programme of Action for the Sustainable Development of Small Island Developing States. Report of the Secretary-General. Fourth Session.
Peter, C. M., & Mwakaje, S. J. (2004). Investments in Tanzania: Some Comments, Some Issues. Dept. of International Law, University of Dar es Salaam.
Rahim, B. (1968 June). Legislative Implementation of the Arusha Declaration. East African Law Journal, 4, 183.
Rainer, M. B., & Peter, C. M. (1989). Administration of Justice in Tanzania and Zanzibar: A Comparison of Two Judicial Systems in One Country. The International and Comparative Law Quarterly, 38, 395-412. https://doi.org/10.1093/iclqaj/38.2.395
Ratansi, L. (2020, August 25). Electronic Filing of Tax Returns. https://www.rsm.global/tanzania/insights/consulting-insights/electronic-filing-tax-returns-0
Rugumamu, S. (1988). State Regulation of Foreign Investment in Tanzania: An Assessment. Journal Storage, 13, 5-28.
Rwegelera, M. K. (2014). The Effect of Globalization on Tanzanian Culture: A Review. The Open University of Tanzania.
Saïd, M. D. (2013, November 19). Chinese Investment in Africa (Part 1). http://www.bsi-economics.org/219-chinese-investment-in-africa-part-1
Shariff, O. (2021, July 20). Oil & Gas: A Key Sector in the Diversification of Zanzibar’s Economy. https://www.ecofinagency.com/public-management/2007-42851-oil-gas-a-key-sector-in-the-diversification-of-zanzibar-s-economy
Staff (2021, July). The Government of Zanzibar Has Launched a New Tax and Residency Programme for Expats to Live and Invest in the Tanzanian Island. https://furtherafrica.com/2021/07/08/zanzibar-luring-investors-with-new-tax-and-residency-scheme
Standard Chartered Bank v. The United Republic of Tanzania (ICSID Case No. ARB/10/12), Award, 2 November 2012, paras. 196-197.
Sueiman, R. (2021, August 28). Hospitali ya Mnazi Mmoja Yazidiwa Corona (Mnazi Mmoja Hospital Overcrowded Corona). https://www.ippmedia.com/sw/habari/hospitali-ya-mnazi-mmoja-zanzibar-yazidiwa-corona
Suhonen, R. (2009). Mapinduzi Daima—Revolution Forever: Using the 1964 Revolution in Nationalistic Political Discourses in Zanzibar. Master’s Thesis, Institute for Asian and African Studies University of Helsinki.
Tanzania Electric Supply Company Limited v. Independent Power Tanzania Limited. ICSID Case No. ARB/98/8, Final Award 12th July 2001
Tanzania Investment Centre (2012). Report on Social Accountability Session. The Contribution of Foreign Direct Investment to Local Economy in Tanzania: Achievements, Challenges and Prospects.
Tax Administration and Procedure Act 2009.
The Tanganyika Gazette, 1963.
The United Republic of Tanzania (2002). United Nations Conference on Trade and Development. Investment Policy Review. UNCTAD/ITE/IPC/Misc. 9.
The Zanzibar Industrial Property Act No. 4 of 2008.
Thembi Mutch (2012). China in Africa Win-Win? Historical and Cultural Bonds. https://www.jamiiforums.com/threads/china-in-east-africa-win-win.305206/
Thomson, S. (2017, February 9). 10 Tips for Enjoying Zanzibar during Ramadan. https://theculturetrip.com/africa/tanzania/articles/10-tips-for-enjoying-zanzibar-during-ramadan
United Nations (2003). United Nations Conference on Trade and Development. Dispute Settlement, UNCTAD/EDM/Misc.232/Add.2.
United Nations (2004). United Nations Conference on Trade and Development. International Investment Agreements: Key Issues Volume I. United Nations.
Usiri, G. (2014). The Effects of Foreign Direct Investment on Economic Growth: The Case of Tanzania. Master’s Thesis, Mzumbe University.
Wage Indicator (2021). Business Tax and Levies. Mywage.org/Tanzania.
Xie, A. L., Voon, F., & Luo, C. Y. (2020, March 16). China’s “New” Foreign Investment Law. Asia Corporate Alert.
Yannaca-Small, K. (2006). Improving the System of Investor-State Dispute Settlement. OECD Working Papers on International Investment, 2006/01, OECD Publishing.
Zanzibar Agricultural Transformation Initiative (2009). Zanzibar Agricultural Transformation for Sustainable Development, 2010-2020 for Agricultural Productivity, Food Security and Sustainable Livelihood.
Zanzibar Business and Property Registration Agency, Company Registration. https://www.bpra.go.tz/index.php/registration/company-registration
Zervos, N., Ndyetabura, J., Mramba, C. et al. (2020, October 1). Establishing a Business in Tanzania. https://uk.practicallaw.thomsonreuters.com/7-562-2905?transitionType=Default&contextData=(sc.Default)&firstPage=true
Zhang, Z. A., & Tsoi, V. (2019, March 20). China Adopts New Foreign Investment Law. https://www.whitecase.com/publications/alert/china-adopts-new-foreign-investment-law
Zheng, Y. (2021). China’s New Foreign Investment Law and Its Contribution towards the Country’s Development Goals. The Journal of World Investment & Trade, 22, 388-428.
Ziddy, I. (2013). Western Tourism in Zanzibar: Cultural and Religious Implications. State University of Zanzibar (SUZA). https://dergipark.org.tr/tr/download/article-file/230559