Should Tanzania borrow a leaf out of Kenya ruling on DTA provisions?
Tanzania is evaluating its tax laws and Double Tax Agreements to improve its competitive edge in attracting foreign direct investment. This follows the decision by Aliko Dangote to locate a major regional refinery project in Kenya rather than Tanzania.
Why it matters
Regional economic competition in East Africa is intensifying, forcing nations to reform fiscal policies to secure large-scale infrastructure and industrial projects.
For East African (EA) citizens, the past few months have been engulfed with buzzing news on regional refinery project. The famed Aliko Dangote publicized his intentions to expand his petroleum refinery business to East Africa, mirroring his 650,000 barrel-per-day Lagos refinery. The actuation of the contemplated refinery project is contingent on the EA governments offering the requisite financial and operational support.
Dangote’s announcement of the regional refinery project sparked a relevant debate regarding its location. It was initially thought that the refinery would be constructed in Tanga (Tanzania), but it was later revealed that the project’s location would be Lamu County (Kenya). The reasons behind Kenya’s preference were attributed to its deeper ports and larger markets.
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