Is a foreigner allowed to own shares in Tanzanian companies?
Subject to the exchange control restrictions and sector specific laws, ownership of a project by foreign persons and companies is generally not restricted. Most of business activities are open to foreign investors. In a few sectors such as shipping agencies, insurance, telecommunications and broadcasting, ceilings have been placed on foreign shareholdings by licensing authorities. Under the Shipping Agency Act, 2002 a license to conduct shipping agency business can only be granted to a citizen of Tanzania or body corporate incorporated in Tanzania in which more than 50% of the share capital is held directly or indirectly by a citizen of Tanzania. A licence to provide telecommunications and postal services can only be granted to an entity in which a local shareholder possesses thirty five percent of the shares. In case of broadcasting content businesses, a licence can only be granted to an entity in which a local shareholder possesses a minimum of fifty one percent of equity interest. S
