investment opportunities in zanzibar presented by shariff a. shariff
Post on 31-Dec-2015
88 Views
Preview:
DESCRIPTION
TRANSCRIPT
1
INVESTMENT OPPORTUNITIES INVESTMENT OPPORTUNITIES IN ZANZIBARIN ZANZIBAR
PRESENTED BY SHARIFF A. PRESENTED BY SHARIFF A. SHARIFFSHARIFF
DIRECTOR – INVESTMENT DIRECTOR – INVESTMENT FACILITATION,FACILITATION,
ZANZIBAR INVESTMENT ZANZIBAR INVESTMENT PROMOTION AUTHORITY (ZIPA)PROMOTION AUTHORITY (ZIPA)
2
Investments
Investments
Investments
Investments
Inflation 18% (2012)
Area (Sq km.) 2,654Unguja 1,666Pemba 988
Population1.3Million
(Census 2012)
Per Capita Income $617
(2011)
GDP Growth Rate 6.7%
(2009)
Investments
ZANZIBAR OVERALL ECONOMIC OVERVIEW
Zanzibar
3
Table 1: Zanzibar’s current account, US$ million, 2004-2008
Year Ending June
Annual % change
Item 2004 2005 2006 2007 2008
Goods Account (net) -51.3 -71.6 -67 -65.1 -77.8 19.6
Exports 13.1 7.2 11.8 15.9 16 0.8Imports (fob) 64.3 78.9 78.8 81 93.8 15.9Services Account (net) 11.1 20.8 19.9 41.6 34.1 -17.9
Receipts 39.4 58.9 81.2 92.2 75.9 -17.7
Payments 28.4 38.1 61.3 50.7 41.8 -17.6
Goods and Services (net) -40.2 -50.8 -47.1 -23.5 -43.7 85.9
Exports of Goods and Services
52.5 66.1 93 108.1 91.9 -15
Imports of Goods and Services
92.7 117 140.1 131.6 135.6 3
Income Account (net) -0.1 0.17 0.36 0.21 -1.02 -579.7
Receipts 0 0.19 0.36 0.3 0.17 -42.5
Payments 0.1 0.02 0 0.08 1.19 1,300.20
Current Transfers(net) 14.2 11.2 50.2 56.4 53.7 -4.8
Inflows 14.2 11.2 50.2 56.4 53.7 -4.8
Outflows 0 0 0 0 0
Current Account Balance -26.1 -39.4 3.4 33.1 8.9 -73
Table below illustrates the Zanzibar Current Account for the year 2004 – 2008.
INFRASTRUCTURE
Infrastructure to support investments Functional Sea Port
Airport servicing international flights Road network covering most investment areas Considerable ground water resources Telecommunication facilities Financial institutions
4
FINANCIAL SERVICES Various local, regional and international financial
institutions offer a wide range of services, including facilitating international commercial transaction like opening letters of credit and guarantees. Some of them are:
The Peoples’ Bank of Zanzibar (PBZ)National Bank of Commerce (NBC)Barclays BankFederal Bank of Middle East (FBME)Kenya Commercial Bank (KBC)Exim Bank (T)Western Union (money transfer services)Postal Bank Insurance companies
5
6
Number of foreign vessels called at Zanzibar port from January 2006 – December 2011
•According to Zanzibar Ports Corporation, Department of Marine Services, total number of 1,187 foreign vessels called between January 2006 to December 2011.
•These include general cargo ships, container ships, passenger ships, tankers, car carriers and other types of ships. Number of container ships called within this period were 521 ships
7
YEAR DISCHARGED (IMPORT) LOADED (EXPORT)CONTAINERS TOTAL
CONT.CONTAINERS TOTAL
CONTRS.
20’ 40’ 20’ 40’F E F E F E F E
2006 3,735 101 1,640 5 5,481 780 2,723 306 1,373 5,182
2007 4,276 54 2,278 7 6,615 694 3,648 305 1,884 6,5312008 5,722 5 2,966 - 8,693 709 5,050 357 2,627 8,743
2009 9,332 4 3,240 - 12,576 647 8,481 365 2,795 12,291
2010 10,541 53 4,477 1 15,072 737 9,881 294 4,025 14,937
2011 13,750 25 5,998 - 19,773 961 12,510 316 5,735 19,522
TOTAL 47,356 242 20,599 13 68,210 4,528 45,293 1,946 18,439 67,206
Source: Zanzibar Ports Corporation, Department of Operation.
Cargo volume handled in Zanzibar Malindi Sea Port
ZANZIBAR INVESTMENT PROMOTION AUTHORITY (ZIPA)
• Established under THE ZANZIBAR INVESTMENT PROMOTION AND PROTECTION ACT, NO. 11 OF 2004,
• A government focal point for Promotion and Facilitation of investments (private capital) in Zanzibar.
8
9
ZIPA serve, facilitate and provide aftercare services to all investors.
OTHER TASKSInvestment PromotionPolicy AdvocacyImage Building
ONE STOP FACILITATION CENTRE Tax Issues, Land Issues, Business Licensing and
Registration, Immigration and labour issues
10
Investors in Zanzibar are protected both constitutionally and through international conventions to which Zanzibar, being part of the United Republic of Tanzania, is a signatory.
Some bilateral and multilateral international treaties signed including Multilateral Investment Guarantee Agency (MIGA), the International Centre for the Settlement of Investment Disputes (ICSID), the Convention for the Protection of Industrial Property and Convention on Recognition and Enforcement of Foreign Arbitration Award and double taxation treaties with several countries
These arrangements guarantee the security of FDI against losses arising from armed conflict or international disorder, and protection against nationalization. Further, they ensure transfer of profit, dividends and capital.
11
OPPORTUNITIESOPPORTUNITIES
12
Tourism SectorTourism Sector
With emphasis with eco –tourism opportunities exist in the Development of up market /high class chain hotels in Unguja and Pemba
Establishment of specialized cuisine restaurants to serve Thai, Chinese , French, and Japanese (joint venture arrangement) foods
Hotels and Modern RestaurantHotels and Modern Restaurant
13
Conference Conference TourismTourism and Amusement Park and Amusement Park
Establishment of Conference and Convention Centres ; and investment in Amusement Parks at Fumba and Micheweni
14
Sports Sports TourismTourism
Sports facilities like Golf /Tennis Court and Foot Ball stadium
Sea sports and diving activities
Tourist Ground, Air and Balloon Transport
game viewing experiences are untouched opportunity in Zanzibar
15
Services SectorsServices Sectors
Establishment of Specialized Modern Colleges for Hotels and Tourism Management
Establishment of Specialized Hospitals , diagnostic centres and nursing home
Establishment of Shopping Malls
• Health care centres• Education• Business & Financial services• Information and Communication
technology
• Fisheries • Territorial Sea Zone Act and Exclusive Economic Zone Act• Sea Fisheries Act in 1998 as amended in 2002 to implement
government policy on fisheries sector
• Opportunities in Fisheries
• Deep Sea Fishing• Fish Processing & Canning• Aqua culture (fish farming and seaweed production).
16
Agriculture• Poultry farming to serve domestic
market, tourism industry and for Export
• Construction of Modern slaughterhouse
• Production of ornamental fish • Flower production (in greenhouses)
17
18
InfrastructureA policy framework on road construction and infrastructure has already been put in place to enable the private Sector to participate fully in construction of roads, bridges, ports etc. under BOT, BOO, and BOOT systems.
Roads Bridges Ports
WHY SHOULD YOU INVEST IN ZANZIBAR ?
Geographical LocationIdeal investment & Profit making destination Historical sites & other Tourists attractionSupportive citizensPolitical and economical stability Trainable and affordable labourConducive Business EnvironmentPeace and tranquility
19
INVESTMENT INCENTIVES
Long term lease of land Up 99 years (renewable)
No payment of land rent during construction period• Up to 30 months grace period may be granted.
100% foreign ownership allowed ( Joint venture with locals is encouraged)
Opportunity to employ expatriates in key positionsRepatriation of profits and dividends after
payment of government dues.
20
21
INCENTIVE EPZ Freeport OthersExemption from import duty & similar taxes on machinery, equipment, construction/raw materials & other inputs.
Exemption from taxes on goods for export
Exemption from Corporate tax
100% for the first 10yrs, 75% in the succeeding 10 yrs.
100% for up to the first 20 years.
100% for up to five (5) years.
Sale of up to 20% of production to the local market (subject to all taxes)
N/A
Exemption from tax on dividend for ten years
No No
Exemption from any local taxes for goods produced in the zone.
N/A
On site customs inspection
No
Source: ZIPA, 2013
OTHER INCENTIVES
Industry Total % Total %
A - Agriculture hunting and forestry 28,206,314.00 0.88 25 4.89
B - Fishing 14,266,236.00 0.44 2 0.39
D - Manufacturing 67,591,642.55 2.10 49 9.59
E - Electricity gas and water supply 2,394,000.00 0.07 1 0.20
F - Construction 4,675,000.00 0.15 6 1.17
G - Wholesale and retail trade 36,141,307.00 1.12 36 7.05
H - Hotels and Restaurants 1,545,616,162.38 48.10 295 57.73
I - Transport storage and communications 731,764,366.00 22.77 34 6.65
J - Financial Intermediation 639,345,226.15 19.90 6 1.17
K - Real Estate Renting and Business Activities 53,856,680.00 1.68 14 2.74
M - Education 6,832,146.00 0.21 5 0.98
N - Health and social work 35,312,040.00 1.10 5 0.98
Tour Operation/Diving & Game Fishing 47,417,246.20 1.48 33 6.46
Total 3,213,418,366.28 100.00 511 100.00
ZIPA APPROVED PROJECTS - SECTORWISE
CONTACT:EXECUTIVE DIRECTOR
ZANZIBAR INVESTMENT PROMOTION AUTHORITY(ZIPA)P.O.BOX 2286ZANZIBAR - TANZANIA
TEL: 255 24 2237353FAX: 255 24 2232737EMAIL: zipa@zanzinet.com
zipaznz@zanzinet.comWEBSITE: www.zanzibarinvest.org
23
AHSANTENI
SANA
top related