Analysis of the Law and Practice on the Export Processing Zones in Mainland Tanzania

Abstract

This article examines the legal framework governing
Economic Processing Zones (EPZs) which are among the
key investment tools in Tanzania. It focuses on selected
three broad aspects of EPZs, namely incentives, creation of
forward and backward economic linkages and promotion of
exports. The article shows that the legal framework on EPZs
in Tanzania is inadequate. Although the law focuses on
creating an investment friendly environment through, for
example, providing preferential treatment of EPZ
investments, it fails to adequately focus on the balance
between the costs of running the EPZs and the benefits to
the national economy. The article emphasizes that the law
should enable the government to fairly implement the host
state’s dual responsibility in EPZ investment i.e. protecting
investors on the one hand and the national interests on the
other hand. In doing this, there should not be fear that
investors will be scared away. The reason is that investors
are not scared of good regulation; they are scared of a regulatory framework that creates unpredictable investment
environment.

Keywords: African Growth and Opportunity Act (AGOA),
Economic Processing Zones Authority (EPZ
Authority), Export Processing Zones (EPZs),
incentives, labour laws