- Tanzania is rolling out new laws aimed at attracting investors in digital/tech markets.
- Government reassures stakeholders of ‘favourable investment laws’.
- AI and digital infrastructure are now the new investment frontiers.
Tanzania has passed legal reforms aimed at attracting digital investments in the country by among others revamping its digital financial transactions regime, electronic commerce, company operations and public-private partnerships (PPPs). These changes are also intended to provide greater regulatory certainty for businesses and help rejuvenate investment in the larger tech sector.
According to the Tanzania Constitution and Legal Affairs Minister Juma Homera; “The government of Tanzania is reshaping its investment laws around artificial intelligence and the digital economy, seeking to attract technology-driven businesses and strengthen its position as a competitive destination for global investors.”
Speaking on the sidelines of the Africa50 General Shareholders Meeting in Dar es Salaam over the weekend, the minister said; “We are reviewing our laws so they support innovation, investment and the use of emerging technologies, including Artificial Intelligence.”
“As the global economy becomes increasingly digital, Tanzania must ensure that its legal framework evolves accordingly,” he added.
According to the minister, the law review covers the Public-Private Partnership Act, the Companies Act and financial legislation to facilitate digital transactions, support electronic commerce and improve the legal environment for technology-enabled businesses.
“Legal certainty has become increasingly important for investors as businesses rely more heavily on digital platforms for payments, trade and service delivery,” the minister said.
The legal review forms part of Tanzania’s broader Vision 2050 strategy, which envisages the private sector implementing more than 78 percent of the country’s long-term development agenda through increased investment and public-private collaboration.
Tanzania is also learning from countries that have successfully integrated digital payment systems into their economies, and gained in revenue collection, financial inclusion and business efficiency.
Beyond legislative reforms, the government plans to strengthen digital skills and artificial intelligence capabilities to ensure Tanzanians are equipped to participate in an increasingly technology-driven global economy.
Homera said the government has also begun translating laws into Kiswahili to improve public access to justice, while the wider legal overhaul is expected to remove regulatory bottlenecks, improve the ease of doing business and create a more predictable environment for domestic and foreign investors.
The reforms underscore Tanzania’s effort to modernise its legal framework as digital technologies reshape investment, commerce and public services across the continent. New laws also provide for translating laws into Kiswahili to improve public access to justice, the government has said.
“Beyond legislative reforms, the government plans to strengthen digital skills and artificial intelligence capabilities to ensure Tanzanians are equipped to participate in an increasingly technology-driven global economy,” the minster detailed.
He reassured stakeholders that Tanzania’s ongoing efforts to modernize its legal framework shows that the country is inline with gobal digital technology development and is open to investment in the sector.
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Reforms in Tanzania to drive digital investment
Tanzania has a comprehensive 10-year Digital Economy Strategy (2024-2034) which is the foundation of the reforms. However, these changes go beyond legislative restructuring, the government says it plans to strengthen digital skills and artificial intelligence capabilities to ensure the new generation of Tanzanians are equipped to participate in the increasingly technology-driven global economy.
“This move underscores Tanzania’s effort to modernize its legal framework as digital technologies reshape investment, commerce, and public services across the continent,” notes Mark Haule a digital law expert from UDOM.
According to the expert, the reforms have significant implications for lawyers and compliance officers who advise clients on navigating the new regulatory environment.
“They will need to ensure that their clients’ businesses comply with the updated laws, particularly those involved in digital transactions, e-commerce, or public-private partnerships,” he notes.
According to the sector pundit, while the legal changes aim to create a more predictable environment for domestic and foreign investors, improve the ease of doing business, and remove regulatory bottlenecks, it will now require all stakeholders to trend carefully to adhere and utilize the new laws and their various provisions.
However, the expand generally commends the reforms and says they serve as a model for other African countries that also seek to attract technology-driven businesses, start ups and the growing AI investments.
The legislative reforms across the digital sector now positions Tanzania among the growing number of African economies that are all competing to attract technology driven companies to invest in their countries.
For example, AI play a crucial role in enhancing and advancing the performance of various sectors of the economy like the health sector. To attract investment in this sector is crucial for national development in Tanzania but it faces competition across the EAC.
Tanzania has developed the Policy Framework for Artificial Intelligence in the Health Sector (2022), which provides a structured approach to integrating AI into healthcare. AI applications in healthcare include diagnostic imaging and radiology, where AI analyzes medical images to accurately detect diseases like tuberculosis and cancer.
Also, AI-powered chatbots provide initial consultations and symptom analysis, easing the burden on healthcare professionals. AI accelerates drug discovery, which is crucial for addressing emerging health threats. The list of benefits is endless and comes with an equally long list of investment potential. To tap into this investment opportunity will require favourable laws like the ones that Tanzania has now enacted.
