East African Community Secretariat (EACS)
EAC Close Afrika Mashariki Road
P.O. Box 1096 Arusha
United Republic of Tanzania
Tel: +255 (0)27 216 2100 Fax: +255 (0)27 216 2190 Email:This email address is being protected from spambots. You need JavaScript enabled to view it.
Burundi
Burundi Development Agency
B.P : 7057 Bujumbura-Burundi
Tel: +257 22 27 59 96/97 Email:This email address is being protected from spambots. You need JavaScript enabled to view it.
Kenya
Kenya Investment Authority (KenInvest)
UAP Old Mutual Tower
15th Floor, Upper Hill Road.
P.O. Box 55704 - 00200 City Square,
Nairobi, Kenya
Tel: +254 (730) 104-200 | +254 (730) 104-210 Email:This email address is being protected from spambots. You need JavaScript enabled to view it.
Rwanda
Rwanda Development Board (RDB)
KG 220 St, Kigali,
Gishushu | Kigali | Rwanda
P.O. Box 6239
Kigali, Rwanda
Tel: +250 727775170 Email:This email address is being protected from spambots. You need JavaScript enabled to view it. | This email address is being protected from spambots. You need JavaScript enabled to view it.
South Sudan
South Sudan Investment Authority (SSIA)
GMS Plaza, May Street,
Juba, South Sudan
Tel: +249 956 212 355
Tanzania
Tanzania Investment Centre (TIC) Shaaban Robert Street Plot No: 9A & B
P.O. Box: 938
Dar es Salaam, Tanzania
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Zanzibar
Zanzibar Investment Promotion Agency (ZIPA) Maruhubi Industrial Area,
Zanzibar, Tanzania
Tel: +255 24 2233026 Email:This email address is being protected from spambots. You need JavaScript enabled to view it.
Uganda
Uganda Investment Authority (UIA) The Investment Centre
Plot 22B, Twed Plaza
Lumumba Avenue, Nakasero
P.O.BOX 7418,
Kampala, Uganda
Tel: +256 0417 788300 Email:This email address is being protected from spambots. You need JavaScript enabled to view it.
Regional trade integration is a cornerstone of EAC Partner States’ trade policies. This involves strengthening of public institutions and private sector organisations involved in export promotion.
EAC Partner States are committed to improving their investment environment with targeted investments into priority sectors, as well as to attract Foreign Direct Investments (FDIs) inot those sectors.
Infrastructure is one of the most critical enablers of a successful regional integration, taking into account its importance in facilitating activities such as trade, agriculture, tourism and the movement of labour and other resources.
Each EAC Partner State has well-developed public and private education institutions at primary, secondary and tertiary levels, and specialised Regional Centres of Excellence are being established across the EAC.
Each EAC Partner State currently has its own financial sector, consisting of a Central Bank, commercial banks, non-bank financial institutions, and foreign exchange bureaus among others.
EAC Partner States have well-established tax regime and national revenue authorities that are responsible for assessment, collection and accounting for all revenues that are due to the government in accordance with the national laws.
The Treaty for the Establishment of the East African Community emphasizes a people-centered, market-driven and private sector led integration process for accelerating regional growth, creating wealth and reducing poverty.
Each Partner State has put in place investment procedures to guide investments. The investment procedures can be classified under three categories: key investment procedures, Trade procedures and other procedures.
The Investment Code Act 1991 led to the establishment of Uganda Investment Authority (UIA) to promote and facilitate local and foreign investments. With the passage of time, coupled with local, regional and global economic development and a growing competitive environment for investment and for purposes of providing adequate protection and facilitation to the investors, it necessitated amendment of the law that lead to the enactment of the Investment Code Act 2019.
There are also other various laws that support the investment function which include the Public Enterprise Reform and Divestiture Act 1993, the Companies Act, 2012, the Uganda Free Zones Act, 2014, the Public Private Partnerships Act, 2015, the Petroleum (Exploration, Development and Production) Act 2013, all aimed at attracting Local and Foreign Direct Investment for economic and social transformation of the country. Uganda has a legal and regulatory reform ongoing process where various commercial laws are being reviewed for amendment and business licensing reforms to reduce the burden of fees on businesses.
While the amendment of the key investment law is ongoing, Government has transformed Uganda Investment Authority (UIA) into a physical and electronic One-Stop Centre for investors. Uganda Investment Authority is a semi-autonomous primary government-supported one-stop centre for investment. The services it offers are extensive including investment and licensing facilitation, assistance with work permits for immigration, acquisition of secondary licenses, provision of industrial land in its 22 industrial parks across the country, financial advisory, recommendation of entities and after-care services. Most services are provided without cost. Its reputation has been as a primary business developing service provider for international investors, but UIA has made an effort to reach out and include domestic businesses. The UIA is active in commercial law reform and serves as the Secretariat for the Presidential Investors Roundtable (PIRT). The PIRT brings together international and domestic investors to provide input on business constraints.
Uganda’s investment promotion agency is also charged with providing investment licenses and assisting investors with various regulatory activities associated with their investments. No charge is applied in obtaining the investment license. There is a threshold of USD 100,000 for foreign investors and USD 50,000 for Ugandan investors to be eligible for an investment license. The fiscal incentives are enshrined in the domestic laws and EAC tariff book, making them accessible to both foreign and domestic investors. Other incentives are provided for by various Ministry Development Agencies (MDAs) per sector.
The Ministry of Finance, Planning and Economic Development (MFPED) is mandated with the formulation of investment policy, strategy and related investment facilitating laws to guide and attract investment in the country. These legal frameworks are aimed at strengthening economic and social infrastructure for higher productive capacities, upgrading investment promotion, building competitive incentive framework, streamlining the institutional, legal and regulatory framework, building strategic partnerships and strengthening the financial sector for better mobilisation and intermediation for investment financing.
Companies Act 2012 has widened its definition of a “re-registered company” making the registration of companies easier by including that a private limited company may re-register as a public company, a limited liability company as an unlimited company, an unlimited liability company as a limited liability company and a public company as a private company. The Act has introduced a number of other changes namely introduction of a Single Member Company (Section 4 (1)); and Section 5 gives a new meaning to the term “a private company”.
The Insolvency Act, 2011, provides on how member voluntary winding up as well as amending and consolidating all laws relating to insolvency.
The Foreign Exchange Act (2004) provides for the exchange of foreign currencies and the making of international payments and transfers of foreign exchange. The Act has provisions relating to restrictions on carrying on foreign exchange business, and enforcement of compliance.
Uganda has liberalised the capital accounts and the law imposes no restrictions on capital transfers in and out of the country. Investors can obtain foreign exchange and make transfers at commercial banks without approval from the Bank of Uganda (BOU) in order to repatriate profits, dividends, and make payments for imports and services.
Uganda has reformed her commercial justice system to include a mandatory mediation session for all commercial disputes. In 2007, a new law allowed for Chief Magistrates and Grade One Magistrates to adjudicate more commercial disputes, easing the burden on the commercial court judges.
The Government has taken significant measures and reforms to liberalize its economy and encourage both foreign and domestic local private investment to realize National Development Vision 2025. The vision spells out national long-term development goals priorities and directions, and aims amongst other things to transform Tanzania from a low-productivity agriculture economy to semi-industrialized highly productive agriculture activities.
Some of the notable reforms in Tanzania since 1986 include, the reduction of the budget deficit, monetary control, liberalization of the trade regime, removal of most price controls, eased restrictions on the marketing of food crops, freed interest rates, and initiated a restructuring of the financial sector. The economic reforms implemented by the government have greatly boosted a better investment climate by encouraging private sector participation and attracting FDI.
On account of its political structure – Mainland Tanzania and Zanzibar – Tanzania has two investment regimes. As a result, the country has two investment policies, namely: The National Investment Promotion Policy (1996) and the Zanzibar Investment Policy (2004). It also has two regulatory frameworks which are National Investment Act 1997 for mainland Tanzania and Zanzibar Investment and Protection Act 2004 as well as two investment promotion agencies Tanzania investment Centre for mainland Tanzania and Zanzibar Investment Promotion Authority for Zanzibar.
The Government is committed to improve business environment for the private sector to operate and stimulate rapid expansion in local and foreign private investment. The investment policies have underscored the need for maximum mobilisation, utilisation of domestic capacity, and the promotion of exports of goods and services.
Policy reforms undertaken since the 1980s have to a great extent contributed to attracting a considerable amount of foreign resources in the form of Foreign Direct Investment (FDI), Official Development Assistance (ODA), and Remittances to argument limited domestic savings and bring with them finance, managerial skills, technology, marketing experience for the development, and to create a transparent legal framework that facilitates the promotion and protection of all investment.
The Tanzania Investment Act (1997), Cap 38 is the principal law guiding investment activities in Mainland Tanzania. Section 4 of the Act established the Tanzania Investment Centre (TIC) which is the principal agency to facilitate, encourage and promote investment. The Centre is under the Ministry of Industry, Trade and Investment. The Ministry of Industry, Trade and Investment is mandated to formulate industrial, trade and investment policies and strategies. The mission is to create an enabling environment for the sustainable development of industry, trade and investment.
The TIC’s mandate includes both investment facilitation and promotion. The functions of the TIC include, but are not limited to, assisting all investors both foreign and local, to obtain all necessary permits, licenses, approvals, consents, authorizations, registrations, and other matters required by law for a person to set up and operate an investment under the One-Stop Centre. The Centre issues certificate of incentives to eligible investors based on the established laws and regulations. The Certificate of Incentives provides investors with a package of fiscal and non-fiscal incentives.
The minimum investment to qualify for and obtain a Certificate of Incentives is USD100,000 for projects that are wholly owned by Tanzanian citizens and USD 500,000 for projects that are wholly owned by foreign investors or a joint venture. Other than this difference in financial thresholds, the Investment Act does not appear to discriminate against foreign investors in favor of domestic investors. Incentive guarantees available to holders of Certificates of Incentives – both foreign and domestic.
In 2014 the government introduced a Strategic Status Investors category which comprises of investors whose investment is above USD 50 million for foreigners and USD 20 million for local investors, the contribution of the project in terms of creating employment opportunities, new and innovative technology to be introduced by the prospective strategic investment project, the extent to which the project brings capacity to manufacture products for experts and the earning of foreign exchange and when the project is located in Special Economic Zones and geographically disadvantaged region.
In order to strengthen and expedite the facilitation of investment services and its image as a “One-Stop Center” Tanzania Investment Centre pulls together under one roof MDAs necessary for investment and investors handling. The agencies that have permanently stationed staff at the TIC include Ministry of Lands, Housing and Human Settlement Development Ministry of Labor, Employment, and Youth Development; Ministry of Industry, Trade and Investment; Tanzania Revenue Authority (TRA); the Immigration Department; Business Registration and Licensing Agency (BRELA); and National Environmental Management Committee (NEMC). Others are Occupational Safety and Health Authority (OSHA); Tanzania Bureau of Standards (TBS); Architectural and Quantitative Registration Board (AQRB); and Tanzania Food and Drugs Authority (TFDA).
To formalize business in Tanzania, one has to register a company with Business Registration and Licensing Agency (BRELA), established by the Executive Agencies Act. 1997 under the Ministry of Industry, Trade and Investment. Investors will also have to obtain a Tax Identification Number (TIN) which currently is the same number as the certificate incorporation/compliance, and other licensing from regulatory authorities depending on the type of business for example tourism, energy, mining etc.
In view of continuing to improve the ease of doing business, the Ministry of Industry, Trade and Investment has come up with a Blue Print for Regulatory Reforms to Improve Business Environment. The Blue Print is aimed to ensure that private sector as an engine of economic inclusive growth operates in a friendly and competitive environment. Tanzania's Investment Environment is governed by other laws affecting facilitation and protection such PPP Act 2014, EPZA and SEZ.
In addition, the Government signed new Bilateral investment agreements (BITs), which are aimed at promoting and protecting new and existing investments. It also signed Double Taxation Treaties (DTTs) with various countries. As of now, the government of Tanzania has already signed BITs with the Governments of Germany, Italy, Finland, South Korea, the Netherlands, United Kingdom, Sweden, Denmark, Canada, Switzerland, Thailand, China, Oman and Kuwait. On the other hand, the Government of Tanzania has entered into DTTs with the Governments of the United Kingdom, Italy, Sweden, Norway, Denmark, Finland, South Korea, Switzerland, Oman, Malaysia, Thailand, Canada, the Netherlands, and Kuwait. Also, Tanzania is a member of Multilateral Investment Guarantee Agency (MIGA), the International Centre for Settlement of Investment Disputes (ICSID) and is signatory to the United Nations Commission on International Trade Law (UNCITRAL).
The government has also taken specific steps to promote investment in the country. Some of these include:
Establishment of the South Sudan Investment Authority (SSIA);
Development of investments laws that spell out the investment guidelines in the country;
Equal treatment and opportunity for local and international investors; and Enactment of specific laws that support investment by making provisions for attractive fiscal regimes, protection of industrial and intellectual property rights, the credible guarantee of legal security and investment stability, repatriation of profits and dividends, custom duties exemptions, as well as reduced red tape and bureaucracy.
The specific investment principles include:
Policy of non-discrimination: Foreign investors can invest in and run businesses in any sector in Southern Sudan;
Guarantees against expropriation: The government shall not nationalize any enterprise. Further, no investor will be compelled (by law or otherwise) to cede any part of investment capital;
Protection of Intellectual Property laws: The government shall protect all intellectual property and rights of all persons and investors. All trademarks, copyrights, patents, etc. will be enforced;
Access to Public Information: Investors have open and direct access to all laws and decisions of courts, other adjudicative bodies and to any public information;
Repatriation of capital, profits and dividends: Investors have the right to freely repatriate their money in freely convertible currency or dispose of it in any manner they deem fit, subject to tax and other lawful obligations; and
Dispute Resolution: Any aggrieved investor has recourse to the courts of Southern Sudan which has jurisdiction over business disputes. Parties to a dispute are also free to specify alternative dispute resolution mechanisms they may agree upon. Any investor in dispute with the Government of South Sudan has recourse to internationally accepted dispute resolutions mechanisms.
The Government of Kenya recognizes the critical role investments play in economic development and realization of Vision 2030 objectives. To this end, Kenya has streamlined business licensing regimes and adopted online investment facilitation portals to ensure faster registration and approval of investment new projects.
The Kenya Investment Authority (KenInvest) is the lead agency on investment matters. Established by an Act of Parliament, Investment Promotion Act, 2004 cap 485 B of the laws of Kenya. The Authority’s core mandate as spelt out in the act is to promote and facilitate the growth of both local and foreign investments in Kenya. The Act allows foreign investments minimum investment threshold of USD100,000 and USD 10,000 minimum for local investment.
KenInvest set up a One Stop Center (OSC) in 2017 under the Investment Facilitation department to provide for timely and transparent processing of investment applications and approvals required. The OSC brings on board officials from relevant government agencies involved in investment facilitation such as the Registrar of Companies (Business registration Services), Kenya Revenue Authority, Ministry of Lands, NHIF and NSSF, Immigration Services Department and NEMA. The Authority is progressively embracing and integrating digital facilitation services to ensure investors can place their applications for new investments from all over the world and be able to access some of the requisite documentations online. The Kenya Investment Authority has developed an online portal (http://eregulations.invest.go.ke/), to further showcase investment procedures in the country; and increase accuracy and transparency on access to relevant information and data by investors.
The Kenya investment environment is governed by other laws as well, affecting investment. For instance, The Kenya Constitution 2010, the Company Act 2015, Business Registration Act 2015, Foreign Investment Protection Act (FIPA), The Public Private Partnerships (PPP) Act 2013, The Insolvency Act 2015, among other laws. Details of this laws can be accessed from http://www.klrc.go.ke/
Since independence, in 1963; the Government of Kenya has formulated strategic policies, legislations and developmental blue prints that focus on investment growth and support. The Kenya Vision 2030 is the latest blue print to guide the country on developmental issues. These include export compensation schemes to duty draw backs and remission, import substitution and manufacturing under bond. These schemes were succeeded by import substitution, Industrial policies on export processing zones, and other export promotion programmes. Currently, the Vision 2030 drives the country’s developmental objectives. The advent of devolution in 2010 also created more investment opportunities for investors seeking to locate in the 46 Counties. There is also work in progress towards development of a Kenya National Investment Policy (KIP). The KIP is envisaged to be a comprehensive and harmonized policy to guide attraction, facilitation, and retention of private investments. It will create an institutional framework that allows for coordination for more efficient investment promotion and facilitation as well as creating a favorable investment climate. In addition, Kenya subscribes to African Union agenda 2063 and the United Nations Sustainable Development Goals (SDGs) which are designed to ensure that development activities are conducted with a long-term view towards sustainability and continued social development of her citizens.
Kenya’s investment environment is fully liberalized. Foreign investors can invest up to 100% ownership; except in securities, Insurance, Power and Lighting and any other identified sectors by government that may be deemed to pose security risk to the country. The attainment of sustained growth and development is feasible through promotion of local and foreign investments.
There are no regulations restricting joint venture arrangements between Kenyans and foreigners or prohibiting the acquisition of Kenyan firms by foreign-owned firms. Nonetheless, there are some restrictions on investment in companies listed on the Nairobi Securities, the insurance sector, and the KPLC. The Kenya Communications Act No 2 of 1998 and Kenya Information and Communications (Amendment) Act 2008 limit foreign investments in the communications sector to 30%.
Protection of private property, is enshrined in the Constitution 2010. Private property may be compulsorily acquired by the government only for reasons of public safety, public interest or security; but with prompt and full compensation. The court of law (Industrial and Commercial Court) provides for arbitration mechanisms. Foreign investors also have the option to seek recourse from the International Centre for Settlement for Investment Disputes (ICSID) for which Kenya is a member Recourse to ICSID for arbitration requires the consent of both parties involved in the dispute. The Investment Disputes Convention Act (1967) stipulates that awards granted by the ICSID Arbitration Tribunal are binding in Kenya and have the same validity as final decrees of the High Court.
Rwanda has comprehensively improved its business environment through the enactment of the Investment Code 2015 on Investment and Export Promotion and Facilitation as the main law governing the country’s investment regime. The Investment Code calls for equal treatment of foreign and local investors. The Code also outlines the incentives available to investors who qualify.
Article 6 of the Code provides that the government is responsible for protecting invested capital and shall not acquire the rights of an investor … no action to expropriate an investor’s property in public interest shall be taken, unless the investor is given fair compensation in accordance with the laws. The specificity of this provision is comforting for foreign investors who fear loss of their investment at the hands of the Rwandan government.
In 2008, Rwanda established Rwanda Development Board (RDB) as a successor to the Rwanda Investment and Export Promotion Agency (RIEPA). The RDB is a multi-institutional body which was created by bringing together eight existing related public institutions and agencies to provide investment-related services under one roof and reporting directly to the office of the President. These include Rwanda Investment & Export Promotion Agency; Centre for Support to Small and Medium Enterprises; Rwanda Commercial Registration of Service Agencies; Environmental Impact Assessment (EIA) Unit; Privatization Secretariat; Rwanda Office of Tourism and National Parks; Rwanda Information and Communication Technology Authority; and Human and Institutional Development Agency (HIDA)(represented by a Unit of Human Resource and Institutional Capacity Development).
RDB is Rwanda Government’s specialized agency operating as a One-Stop Centre for investment. It is tasked with the mission to fast-track economic development in Rwanda. Its mandate is to enable private sector growth towards the transformation of Rwanda into a hub for global business, investment, and innovation. RDB invites, receives, and facilitates international investors to take full advantage of Rwanda’s sustained high economic growth, robust governance, investor-friendly climate, accessibility to markets within the region, and a range of well-planned projects for direct investment.
Investors (local or foreign) who choose to register with the Rwanda Development Board (RDB) can apply for additional benefits. An Investment Code adopted in 2015 specifies all fiscal incentives available to investors depending on the sector and amount invested. The benefits provided to holders of investment certificates consist mostly in access to facilitation services, fiscal incentives, and the entitlement to three work and residence permits for foreign citizens for an investment of at least two hundred and fifty thousand (USD 250,000), investment protection and guarantees for the repatriation of funds.
Through Company Law (2017) that governs companies, their incorporation, registration, functioning, winding up and other related matters, Rwanda provides a foundation for investor protection. This is complemented by Investment Code (2015) that has important protections of particular concern to foreign investors. This makes Rwanda one of Africa’s most open FDI regime, with no restrictions on FDI entry and establishment. All foreign investments are allowed without screening or restriction of amount or sector, and foreign investors are granted national treatment for most intents and purposes. A positive element per se, this high degree of openness makes it all the more important that other regulations (relating to public health, consumer interests, environmental protection, etc.) be properly established and enforced
Investors (local or foreign) who choose to register with the RDB can apply for additional benefits. The Investment Code specifies all fiscal incentives available to investors depending on the sector and amount invested.
Article 42 of the Constitution specifies that “every foreigner legally residing in the Republic of Rwanda shall enjoy all rights save those reserved for nationals as determined under this Constitution and other laws.” The Constitution also grants protection over private property rights, which can be expropriated only for reasons of public interest and following fair and prior compensation. In addition, holders of investment certificates are entitled to fair compensation in a convertible currency in case of expropriation. They also benefit from the guarantee that the compensation will be free of any tax or duty and freely transferable overseas.
Kigali International Arbitration Centre (KIAC) was created by an act of Parliament in 2011 at the initiative of the Private Sector Federation in partnership with the Government as an independent body. The aim of KIAC is to strength the Capacity of Economic Operators in Rwanda to resolve their disputes themselves without need to go to courts. Investors can also utilize the Multilateral Investment Guarantee Agency (MIGA) to address investment disputes.
The government of Burundi has undertaken several legal reforms and has established regulatory institutions in various sectors of the economy to create a conducive environment for investment.
The Government of Burundi’s official attitude toward foreign direct investment is reflected in the new Investment Code, which ostensibly aims to attract and reassure foreign investors. The new Code encourages and promises to facilitate acquisitions, production, transformation and distribution of goods and services.
Burundi has over the last few years greatly benefited from the deliberate government efforts that have seen a total revamp of its economic policies with a view to bolstering economic development in the country. The investment Code led to the establishment of the Burundi Investment Promotion Authority (API) which provides streamlined and fair handling of all investors, whether local or foreign.
API offers a one-stop center/shop (with five counters i.e. Burundi Revenue Authority (OBR), Commercial/ Tribunal Court (TC), National Institute of Social Security (INSS), Labour Inspection Unit and Burundi Investment Promotion Authority (API)) for registering a business and issuing the required legal documents within 24 hours. The promulgation of a new Corporate Code reduced the procedures from 11 to 2. Currently, for a cost of Burundi Francs BIF40 000 (USD 25), the investor can get at API, in just one day, the company statutes; the Tax Identification Number (TIN) and the trade registry certificate and membership card of INSS and fees payment slip.
The Government of Burundi has set priority economic sectors from which investment projects are eligible for incentives. The agricultural sector including agro processing, fisheries and livestock, energy and mining and as well as transforming and manufacturing industry are seen as most important to boost the economy. Innovative technology transfer and export oriented can qualify for physical incentives.
The investor benefits from a tax rate reduction of taxes on profits of 2% if he employs between 50 and 200 Burundians full time and5% if he employs more than 200 Burundians. In agriculture and manufacturing sectors, 1 billion BIF (USD 550,000.00) is the minimum capital requirement. In energy and mining, 20billion BIF (USD 11,000,000) is the minimum capital requirement
The Government of Burundi has embraced economic liberalization in all sectors and a lot of government entities have been privatized. Thus, attracting private investment in sectors like telecommunication and energy. Burundi permits foreign investors to repatriate profits earned without any limitations.
The Investment Code contains provisions regarding the resolution of conflicts between investors and the state. Burundi ratified the Convention on the Settlement of Investment Disputes between states and nationals of other states. A dispute with the Government of Burundi (for example, regarding an eventual expropriation) may be brought before the International Centre for Settlement of Investment Disputes (ICSID). Alternatively, the Multilateral Investment Guarantee Agency (MIGA), also a member of the World Bank Group, may intervene in case of such a dispute arising. As well as insuring investors against risks, the MIGA mediates disputes between investors and Governments and tries to prevent those disputes growing out of proportion.
Burundi joined, on April 9, 2014, the Apostille Convention on mutual legal assistance and international administrative to simplify the authentication of documents used abroad to facilitate the free movement of people, goods and services. Further, since May 9, 2014, Burundi is member of the New York Convention on the Recognition and Enforcement of Foreign Arbitral Sentences.
Burundi’s investment regime takes into account Most Favoured Nation and National Treatment Principles. In other words, the regime does not discriminate against foreign investors, nor are there any general limits on foreign ownership or control of enterprises. There is no explicit discrimination against foreign investors at any stage of the investment process, nor are there any laws or regulations specifically authorizing private firms to adopt articles of incorporation or association which limit or prohibit foreign investment, participation, or control. Burundi’s economy has been liberalized and is open to foreign investors.
Each Partner State has put in place investment procedures to guide investments. The investment procedures can be classified under three categories:
Key investment procedures that include procedures on:
Starting a business
Hiring labour
Obtaining work and resident permits where applicable
Paying taxes
Acquiring land and property
Building and constructing
Trade procedures
Other procedures that include procedures on:
Sectoral permits
Export Processing Zones
Special Economic Zones
Investment incentives
The EAC Partner States have put in place legal and institutional frameworks for handling all the above investment procedures. Investment procedures in each Partner State are in:
Articles 15- 23 of the Uganda Investment Code Act 2019;
Articles10-13,15-21 of the Rwanda Investment Promotion and Facilitation Act 2015;
Articles17-18 of the Tanzania Investment Act 1997;
Articles 23-31 of the Zanzibar Investment Promotion and Protection Authority Act 2018; and
Articles 3-11 of the Kenya Investment Promotion Act 2014.
The investment Promotion Act 2009 of South Sudan does not have any provisions on investment procedures.
Also, institutional frameworks are represented at the One-Stop Investment Centres in each of the Partner States.
The government of Burundi has undertaken several legal reforms and has established regulatory institutions in various sectors of the economy to create a conducive environment for investment.
Rwanda has comprehensively improved its business environment through enactment of the Investment Code 2015 on Investment and Export Promotion and Facilitation as the main law governing the country’s investment regime.
The government has taken specific steps to promote investment in the country including the establishment of South Sudan Investment Authority (SSIA) and Development of investments laws which spell out the investment guidelines in the country among others.
The Government has taken significant measures and reforms to liberalize its economy and encourage both foreign and domestic local private investment to realize National Development Vision 2025.
Each Partner State has gazetted Export Processing Zones (EPZ) and Special Economic Zones (SEZ).
EPZ and SEZ across the Partner States focus on contributing to building strong export-led economic development through industrialization. EPZ and SEZ provide a number of specific incentives for investors operating within them, which include fiscal and non-fiscal incentives, including corporate tax holidays, duty and VAT exemptions.
Burundi Special Economic Zones
The Burundi SEZ together with its Managing Authority were established in Burundi by a Presidential Decree Law to promote exports, provide an enabling environment and attract local and foreign direct investments. The Burundi SEZ offers a number of attractive fiscal and non-fiscal incentives including reduction or temporary tax exemption.
Kenya Export Processing Zones
The Kenya EPZ were established in Kenya with an aim of attracting and facilitating export-oriented investments. Kenya’s EPZ provide an attractive and enabling environment as well as a range of fiscal and procedural incentives for such investments. The EPZ is managed by the Export Processing Zones Authority (EPZA), which was established in 1990, by the EPZ Act CAP 517, Laws of Kenya. The Authority’s mandate is to promote and facilitate export-oriented investments and to develop an enabling environment for such investments. The EPZ Authority is a State Corporation, under the Ministry of Trade, Industry and Cooperatives. EPZA under the EPZ program offers a range of attractive fiscal, physical and procedural incentives to ensure low cost operations, fast set up and smooth operations for export-oriented business.
Rwanda Special Economic Zones
Rwanda’s SEZ program is designed to address some of the domestic private sector constraints such as availability of industrial and commercial land, availability and the cost of energy, limited transport linkages, market access and reduced bureaucracy, and availability of skills. Designated, serviced land is provided for small and large scale industrial development, as well as reliable, quality infrastructure, competitive fiscal and non-fiscal regulations, and streamlined administrative procedures.
South Sudan Export Processing Zones
South Sudan Investment Authority is responsible for the setting up of export processing zones and special economic zones and this process is still in its infancy.
Uganda Free Zones
The overall objective for adoption of Free Zones in Uganda is to create an enabling environment aimed at enhancing economic growth and development of export-oriented manufacturing in all sectors of the economy, in order to diversify the country’s economic base, attract foreign direct investment (FDI), generate employment, increase foreign exchange earnings, enhance technology transfer, skill acquisition/upgrading as well as create backward linkages. The Uganda Free Zones Authorityis a corporate body under the supervision of the Ministry of Finance, Planning and Economic Development. It was established in accordance with the Free Zones Act, 2014 and started operations on 1st September 2014. The Agency is responsible for the establishment, development, management, marketing, maintenance, supervision and control of free zones and to provide for other related matters.
Tanzania Special Economic Zones
The Export Processing Zones Authority (EPZA)in Tanzania is currently responsible for both Export Processing Zones (EPZ) and Special Economic Zones (SEZ). EPZA operates under the Ministry of Industry, Trade and Investment. EPZA is responsible for steering and implementing government policy on promotion of Special Economic Zones (SEZ) in Tanzania. Other functions of EPZA include the development of EPZ and SEZ infrastructure, provision of business services to EPZ and SEZ investors and issuing of EPZ and SEZ licenses. Once an investor obtains the EPZ or SEZ licenses, he or she does not require any other license except for highly regulated industries like food and drugs. Free Economic Zones (FEZ) in Zanzibar have been purposely established to attract foreign direct investment (FDI), specifically targeting labour intensive projects and increasing exports. Companies who set up their business in the FEZ designated areas enjoy simplified customs and other administrative procedures. Zanzibar currently has five free economic zones.
