Business
The Companies Act 2002 with mandatory local participation in mining and gas
The Companies Act 2002 governs incorporation on an English model. The 2017 natural wealth legislation asserted permanent sovereignty over resources, voided disputed arbitration clauses in extractive contracts and required local content, which substantially changed the risk profile of resource investment.
Key rules
- Jurisdiction — The Commercial Division of the High Court hears company disputes; BRELA maintains the register.
- Deadline — Annual return: filed with BRELA within the statutory period
- Deadline — Local content plans: filed annually in the extractive sectors
Governing law
- Companies Act, 2002No. 12 of 2002
- Natural Wealth and Resources (Permanent Sovereignty) Act, 2017
- Natural Wealth and Resources Contracts (Review and Re-Negotiation of Unconscionable Terms) Act, 2017
In practice
The 2017 statutes are the defining feature of Tanzanian business law for foreign investors: they require that disputes over natural resources be resolved in Tanzanian forums rather than international arbitration, and permit parliamentary review of existing contracts for unconscionable terms. Whether they are compatible with pre-existing bilateral investment treaties is a live question.