Author(s)

Naumi Kassim Mohammed, Dexiang Guo^*, Yongyeh Ngalim Elizabeth

School of Law, Zhengzhou University, Zhengzhou, China.

Most countries around the world, including Tanzania (Zanzibar as a part) sought to establish the proper legal framework in attracting and protecting foreign investments. The enactment of Local Investment Legislations and signing of Bilateral Investment Treaties (BITs) are among the primary tools for achieving the aforementioned goal. The participation of a state into international investment treaties, as well as the ratification of conventions into domestic legislation, makes the protection measures part of their legal structure. Their significance stems from the fact that they contribute to access to justice for foreign investors, hence creating a favorable environment for foreign investments. This article’s objective is to examine the legal framework related to the protection of foreign investments in Zanzibar. In doing so, the article examines the laws responsible for the protection and whether those laws are strong enough for such protection, challenges foreign investors may face and the opportunities for foreign investors especially the Chinese. The study has however established that, the laws are inadequately strong, and therefore the protection is somehow ineffectual. As a result, there is a need for legislative amendments and updates for an effectively protection of foreign investments and their reassurance in the event of any apprehension especially currently where Tanzania has begun the process of regulating its foreign investment regime by passing laws that exclude international arbitration.

Foreign Investments, Foreign Investors, Legal Framework, Legal Protection, Zanzibar

Mohammed, N. , Guo, D. and Elizabeth, Y. (2021) Legal Protection of Foreign Investment (FI) in Zanzibar: Lesson for China Investments. Beijing Law Review, 12, 1191-1214. doi: 10.4236/blr.2021.124062.