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

Abstract

This article examines the legal framework governingEconomic Processing Zones (EPZs) which are among thekey investment tools in Tanzania. It focuses on selectedthree broad aspects of EPZs, namely incentives, creation offorward and backward economic linkages and promotion ofexports. The article shows that the legal framework on EPZsin Tanzania is inadequate. Although the law focuses oncreating an investment friendly environment through, forexample, providing preferential treatment of EPZinvestments, it fails to adequately focus on the balancebetween the costs of running the EPZs and the benefits tothe national economy. The article emphasizes that the lawshould enable the government to fairly implement the hoststate ' s dual responsibility in EPZ investment i.e. protectinginvestors on the one hand and the national interests on theother hand. In doing this, there should not be fear thatinvestors will be scared away. The reason is that investorsare not scared of good regulation; they are scared of a regulatory framework that creates unpredictable investmentenvironment.Keywords: African Growth and Opportunity Act (AGOA),Economic Processing Zones Authority (EPZAuthority), Export Processing Zones (EPZs),incentives, labour laws