TISEZA Introduces Tax and Nontax Incentives Across Tea Value Chain

New Incentives Announced for Tea Sector

The Tanzania Investment and Special Economic Zones Authority (TISEZA) has introduced tax and nontax incentives across the tea value chain, aiming to attract more investors, lower investment costs, and strengthen tea production. Deputy Minister in the President's Office (Planning and Investment), Dr Pius Chaya, announced the measures in the National Assembly, stating that the incentives would also help increase farmers' incomes, create jobs, boost export earnings, and promote the adoption of modern technology.

Dr Chaya was responding to a basic question from Suma Fyadomo (Special Seats MP, CCM), who asked about the government's strategy for attracting investors to tea farming and processing industries. The Deputy Minister outlined that the existing strategy is to attract investment in tea production, processing, packaging, storage, and value addition for both domestic and export markets.

He assured legislators that the government would continue to promote opportunities in the agriculture sector and crop processing as priority areas for investment.

Government Collaboration and Farmer Protection

During a supplementary question, Pindi Chana (Special Seats, CCM) asked what measures were being taken to ensure investors benefiting from the incentives paid tea farmers on time, offered fair prices, and bought their produce during harvests. Dr Chaya responded that the President's Office (Planning and Investment) is working with the Ministry of Agriculture to attract productive investors who would strengthen the tea value chain and support farmers.

He added that the government's approach is to attract investors who would create a reliable market for tea growers while improving investment across the sector. "I would like to assure the Honourable Member that, as the government, we will work on the concerns she has raised for the benefit of our people," he said.

Development at Bunda Export Processing Zone

In another supplementary question, Ester Bulaya (Bunda Urban, CCM) asked what the government was doing to develop the Bunda Export Processing Zone (EPZ) to stimulate local investment and growth. According to reports from the National Assembly, two major investors have already begun clearing the site at the Bunda EPZ. One investor is investing in meat-processing factories, an abattoir, and packaging, while the second is investing in the fish value chain.

Tourism Investment Priority

The government has also indicated that attracting investors to the tourism sector is a priority, with Arumeru among the areas where efforts have begun to build modern hotels, five-star hotels, and other tourism facilities. This aligns with the broader strategy to promote investment in key economic sectors across the country.