Foreign investment protection in Tanzania

This study seeks to examine the protection of foreign investments within Tanzanian' s political and socio-economic system. The bulk of the work is therefore devoted to an analysis of various legal instruments (national and international) that deal with the encouragement and treatment of foreign capital. Chapter One lays the basis for the discussion of the subject -matter in that it provides a general survey of the treatment of foreign investment at the global level. Since the subject falls within the general area of international law, the different rules of the law of the nations that relate to the treatment of alien property abroad are examined at some length. Special attention is given to principles governing nationalization expropriation and compensation. An attempt is also made at discussing the different methods used in protecting forcing capital through national legislation, bilateral and multilateral treaty approaches. Chapter Two addresses itself to the concrete Tanzanian situation. Of the essence here is Tanzania's policies affecting foreign investments seen through its political and socio-economic system. Two periods are discussed in this part - the pre-Arusha period and the post-Arusha period. Before the Arusha Declaration of 1967 the Government of the United Republic of Tanzania pursued development policies that were extremely favourable to foreign investment. However following the small amount of investments that were made in the country at the time the government adopted a new approach which placed emphasis on socialism and self-reliance. Henceforth the Government Development Plans gave the private sector insignificant importance in the national economy. This was illustrated by the nationalizations that rocked the nation in 1967. Chapter Three is dominated by the municipal laws and regulations that control the LZany facets of foreign investments. In particular the Foreign Investments (Protection) Act of 1963 - the principal legislation in this regard - is put into sharp focus. The rationalisations Acts that have been passed