The Industrial Promotion and Development Fund Act

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.35
CHAPTER 198
THE INDUSTRIAL PROMOTION AND
DEVELOPMENT FUND ACT
[PRINCIPAL LEGISLATION]
Arrangement of Sections
Section Title
part i
PRELIMINARY PROVISIONS
1. Short title.
2. Interpretation.
part ii
THE INDUSTRIAL PROMOTION AND DEVELOPMENT FUND
3. Establishment of Fund.
4. Purpose of Fund.
5. Resources of Fund.
6. Management of Fund.
7. Accounts and audit.
8. Power of Minister to allocate moneys in Fund.
9. Application.

Purpose of Fund.
5. Resources of Fund.
6. Management of Fund.
7. Accounts and audit.
8. Power of Minister to allocate moneys in Fund.
9. Application.

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.36
PART I
PRELIMINARY PROVISIONS
1. This Act may be cited as the Industrial Promotion and
Development Fund Act.
2. In this Act, unless the context requires otherwise-
“co-operative society” means a co-operative society
registered under the Co-operative Societies Act;
“district development corporation” means a district
development corporation established under the Local
Government (District Authorities) Act;
“foreign government” includes any agency of that
government;
“Fund” means the Industrial Promotion and Development
Fund established under section 3;
“International Organisation” includes specialized agencies of
the United Nations Aid Foundations or other Multilateral
Aid Institutions;
“Investment Bank” means the Tanzania Investment Bank;
“Minister” means the Minister responsible for finance.
Short title
Interpretation
Cap. 211
Cap. 287
CHAPTER 198
THE INDUSTRIAL PROMOTION AND
DEVELOPMENT FUND ACT
An Act to establish the Industrial Promotion and Development Fund and to
provide for the management of that Fund.
[1st July, 1984]
Act No.
11 of 1984

An Act to establish the Industrial Promotion and Development Fund and to
provide for the management of that Fund.
[1st July, 1984]
Act No.
11 of 1984

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.37
THE INDUSTRIAL PROMOTION AND DEVELOPMENT FUND ACT [CAP. 198 R.E. 2023]
PART II
THE INDUSTRIAL PROMOTION AND
DEVELOPMENT FUND
3. There is hereby established a fund to be known as the
Industrial Promotion and Development Fund. 4.

I
THE INDUSTRIAL PROMOTION AND
DEVELOPMENT FUND
3. There is hereby established a fund to be known as the
Industrial Promotion and Development Fund. 4.

The purposes for which the Fund is established are-
(a) financing by way of loan or equity investment by
parastatal organisations, district authorities, or Co-
operative Societies engaged in the manufacture,
production or processing of consumer or industrial
raw materials and products;
(b) financing by way of loan or grant, procurement or
purchase of raw materials and spare parts by parastatal
organisations, co-operative societies or private
enterprises engaged in the manufacture, production or
processing of consumer or industrial raw materials and
products;
(c) financing by way of loan or grant, research or study
by or for the benefit of organisations, enterprises or
industries engaged in the manufacture, production or
processing of consumer or industrial raw materials and
products;
(d) financing by way of loan or grant, the training of
citizens of the United Republic as-
(i) industrial operators and technicians;
(ii) maintenance and repair personnel;
(iii) material management officers, or in any similar
crafts;
(e) financing by way of loan or grant any project agreed
or approved for implementation pursuant to any
Agreement or Memorandum of Understanding
between the Government of the United Republic and a
foreign government or international organisation.

to any
Agreement or Memorandum of Understanding
between the Government of the United Republic and a
foreign government or international organisation.

Establishment of
Fund
Purpose of Fund

Establishment of
Fund
Purpose of Fund

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.38
THE INDUSTRIAL PROMOTION AND DEVELOPMENT FUND ACT [CAP. 198 R.E. 2023]
5. The resources of the Fund shall be-
(a) the whole of the proceeds of import support which
may be received by the Government from foreign
governments and international organisations;
(b) any sums which may in any manner become payable
to or vested in the Fund either under the provisions of
any written law or incidental to its administration by
the Investment Bank. 6.–(1) The Investment Bank shall administer the Fund as a
special Fund and, subject to the provisions of this Act. (2) The Investment Bank shall maintain the Fund in
separately designated bank account or accounts and shall
manage the same in accordance with any directions which the
Minister may issue:
Provided that, the Investment Bank shall not make any
payment out of the Fund save with the consent in writing of
the Treasury Registrar in accordance with the agreed annual
expenditure programme.

ake any
payment out of the Fund save with the consent in writing of
the Treasury Registrar in accordance with the agreed annual
expenditure programme.

(3) Notwithstanding the preceding provisions, the Bank
may where circumstances require, administer part of the Fund
and maintain accounts for that part of the Fund jointly with a
foreign government or international organisation. (4) Where any payment out of the Fund is made for the
purchase of any equity investment, that equity investment
shall be held by-
(a) the Investment Bank;
(b) any parastatal organisation;
(c) any district development corporation;
(d) any co-operative society;
(e) the Treasury Registrar,
as the Treasury Registrar may direct, and any parastatal
organisation, district development corporation or co-
operative society holding that equity investment shall, at any
time, on the direction of the Treasury Registrar, transfer the
Resources of
Fund
Management of
Fund

ciety holding that equity investment shall, at any
time, on the direction of the Treasury Registrar, transfer the
Resources of
Fund
Management of
Fund

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.39
THE INDUSTRIAL PROMOTION AND DEVELOPMENT FUND ACT [CAP. 198 R.E. 2023]
equity investment to any other organisation specified by the
Treasury Registrar or to the Treasury Registrar. (5) The Minister may, by regulations published in the
Gazette regulate the administration of the Fund. (6) A person who authorise any payment out of the Fund
in contravention of any provisions of this Act or any direction
given or of regulations made under this section commits an
offence and on conviction, shall be liable to a fine not exceeding
fifty thousand shillings or to imprisonment for a term not
exceeding five years or to both. (7) The Bank may deduct from the Fund a service charge to
be determined by the Minister. 7.–(1) The Investment Bank shall cause to be provided and
kept proper books of account of the payments made into and
out of the Fund. (2) The accounts of the Fund shall be audited annually by
the Tanzania Audit Corporation and the audited accounts of
the Fund shall be published at the same time as the audited
accounts of the Investment Bank are published.

dit Corporation and the audited accounts of
the Fund shall be published at the same time as the audited
accounts of the Investment Bank are published.

8.–(1) Where the Minister is satisfied that, at the close of
any financial year there are in the Fund moneys which are
not immediately required for the purpose of the Fund which
moneys shall in this section be referred to as a “surplus”, he
may, if in his opinion financial exigencies or the public interest
require, and notwithstanding any provision to the contrary
contained in this Act or in any other written law, authorise
the application of the whole or any part of the surplus for
or towards defraying the development expenditure of any
Ministry or Department of the Government in any financial
year. (2) Every authorisation for the application of any surplus
made under this section shall be sufficient authority, without
further appropriation, to issue from the Fund the sum required
for the purpose specified by the Minister. Accounts and
audit
Power of Minister
to allocate
moneys in Fund

on, to issue from the Fund the sum required
for the purpose specified by the Minister. Accounts and
audit
Power of Minister
to allocate
moneys in Fund

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.40
THE INDUSTRIAL PROMOTION AND DEVELOPMENT FUND ACT [CAP. 198 R.E. 2023]
(3) Where the Minister proposes to authorise application of
any surplus other than that agreed to between the Government
and any foreign government or international organisation, he
shall first obtain the concurrence of the foreign government or
the international organisation as the case may be.
9. The provisions of this Act shall apply notwithstanding the
provisions of the Public Finance Act or any other written law
and any allocation of any public revenue to the Fund shall be
made without further appropriation.
Application
Cap. 348