top of page

Incentives and Subsidies for International Companies Entering the Tanzanian Market

Expanding a business into a new market can be a daunting task for any company, particularly international firms. There are several factors to consider, including language and cultural barriers, regulatory compliance, and navigating the local business landscape.

However, in recent years, Tanzania has become an attractive destination for international investors due to its growing economy and the government's willingness to support foreign businesses. In this article, we will explore the incentives and subsidies available to international companies looking to enter the Tanzanian market.

Export Processing Zone (EPZ) Program

The Tanzanian government's EPZ program is one of the most popular incentives available to international companies. The program aims to promote exports and foreign investment in Tanzania by providing a range of benefits to companies engaged in export-oriented activities.

Some of the benefits include a reduced corporate tax rate of 10%, exemptions from customs duties, and capital allowances. The program also provides companies with access to ready-built factories and warehouses, as well as other infrastructure facilities.

Tax Incentives

In addition to the EPZ program, the Tanzanian government offers several tax incentives to foreign investors. These incentives are designed to reduce the cost of doing business in the country and encourage entrepreneurship. Some of the most attractive tax incentives include income tax holidays, reduced corporate taxes, and tax credits.

These incentives can help to reduce the tax burden on foreign investors, making it easier for them to establish and grow their businesses in Tanzania.


The Tanzanian government also offers a range of subsidies to international companies. These subsidies are designed to cover various expenses associated with doing business in the country, including the cost of equipment, research and development projects, training, marketing, and overhead costs. In addition, the government provides loan guarantees, capital grants, and direct payments to foreign companies to help offset the cost of doing business in Tanzania.

These subsidies, coupled with investment promotion and protection agreements (IPPAs) and foreign investment protection agreements, provide additional protection against unfair or discriminatory treatment by the government.

Goal of the Tanzanian Government

The Tanzanian government's goal is to create an environment that is attractive to foreign investors and encourages entrepreneurship. The government is offering tax holidays and other incentives to encourage foreign companies to invest in the country. Additionally, the government provides subsidies in various sectors, such as agriculture and manufacturing, to encourage job creation and boost the local economy.


In conclusion, the Tanzanian government has implemented several programs to make the process of entering the market easier and more attractive to foreign investors. The EPZ program, tax incentives, and subsidies are just a few of the benefits available to international companies.

These incentives and subsidies can help to reduce the cost of doing business in Tanzania and make it easier for foreign companies to establish a presence, gain an edge in the Tanzanian market and increase their chances of success.

If you are an international company looking to expand into the Tanzanian market, it's worth exploring the various incentives and subsidies available to you.

11 views0 comments


Join the Club

Be the first to receive valuable insights on market entry facilitation, helping you stay ahead of the competition and make informed decisions as you expand your business globally.

Thanks for submitting!

bottom of page