- In 2022, investments in Tanzania rose by $3.16 billion between July and November.
- Currently, Tanzania has stable economic diplomatic relations with global economic giants, China and US.
- Tanzania’s economy is expected to expand by 5.5 percent in 2024.
“Kazi Iendelee” Swahili term for “Let’s Proceed with Work” has become a national rallying call for progress in Tanzania under President Samia Suluhu Hassan, who is popularly referred by Mama Samia – a Swahili term of endearment and respect.
Even from foreign capitals, President Samia’s work is catching the eye of fellow leaders. When US Vice President Kamala Harris came visiting, she had this to say to Tanzania and East Africa’s first female president, “You have been a champion in terms of democratic reforms in this country and in that way, have expanded our partnership” Harris said during her state visit to Tanzania in March 30, 2023.
Three years in office and President Samia has done her best to keep East African country unified, on top of investors’ minds and fueling its way to sustainable growth.
According to Central Bank of Tanzania (BOT) in its Monetary Policy Committee Meeting Statement, the economy reached a 5 per cent growth in 2023, and the financial services regulator forecast puts the growth at a 5.5 percent in 2024.
At the moment, Tanzania is banking on its top performing sectors to grow the GDP basically agriculture, which accounts for 27 per cent, industry and construction 31 per cent and services for 42 per cent.
President Samia’s ascension to helms of power came after the death of the fifth President of Tanzania, John Magufuli. Since her swearing in on March 19 of 2021, President Samia attention has focused on stimulating the economy, enhancing diplomatic relations and internal political stability, particularly with her detractors.
Read also: How Tanzania’s President Samia attracted over $1 billion in foreign investments
President Samia’s first 100 days
In her first 100 days in office, a metric employed worldwide to make an early assessment and figure out the trajectory of an administration, various interesting aspects emerged.
The business environment was a keen aspect she took upon. While the late Magufuli took a stringent tone and a very strict direct approach when it came to business operations earning critics both locally and abroad, President Samia streamlined the system, fostering good, friendly, conducive and supporting business environment and investment climate.
This approach was marked by having proper legal, policy and regulatory frameworks that serve stakeholders across the industries. The president has also put focus on building stable infrastructures, skills and talent in Tanzania’s workforce to tap into both local and international growth opportunities.
The small matter of taxes was another crucial element President Samia chose to address. Just like her predecessor she aligned taxation as a pinnacle of nation development. Signals were received of a friendly and composed tax measures unlike Magufuli’s often “brute taxation format” that political pundits criticized. This time, President Samia’s administration assumed a policy where stakeholders’ tax matters are attended accordingly, especially on complaints.
Additionally, she dealt with delays in tax refunds, inadequate customer service by the taxman, missing of a one stop centre for tax payments, issues on electronic fiscal devices (EFDs), non-realistic estimations and much more.
Also read: Kenya, Tanzania and Congo corridors to drive East Africa trade growth by 2035
Tripling investment
President Samia’s pro-business approach, which was praised by several economists gave rise an intriguing reaction in the government’s ambition to stir growth. Data from the Tanzania Investment Centre shows the country registered projects valued at $3.16 billion in 2022, with industrial, transportation and tourism sectors topping the list.
At the moment, Tanzania is floating in a strategic international business relation, establishing and fostering business ties with nations such as China, European Union, Senegal, UAE, Qatar, UK, US, and neighbours Kenya, Rwanda, and the DRC.
Economic Diplomacy
Over three years since she took office, President Samia has engaged herself with the region and the rest of the world with one agenda – how to support Tanzania’s sustainable growth.
In May 2021 shaky, complex and vital relations between Tanzania and her neighbour Kenya took a different twist and sign of hope as Samia started engagement to eliminate unfair trade dealings, rivalry and limitations to do business between the countries.
“Your visit has given us an opportunity to renew our relationship” former President Samia and Kenya’s former President Uhuru Kenyatta said in a joint statement.
The visit saw a deal reached on the $1 billion gas pipeline from Mombasa to Tanzania, feeding an energy hungry country with power for industrialization.
Tanzania didn’t end there. In January 2023, President Samia with her host and current President William Ruto witnessed the resolution of 23 restrictive regulations that had impeded trade between the two countries.
According to a report by Business Daily, the late President Magufuli “protectionist” policies flared up a diplomatic spat between the two nations.
Hence, a year after the visit by President Samia, trade between Kenya and Tanzania marched towards $1 billion mark, according the Central Bank of Kenya.
State visits to the US solidified another important and intriguing relations with Tanzania’s long time development partner. The trip brought merit via bilateral talks, which resulted to signing of MOUs of almost $1 billion in investments from various US companies.
On the other hand, a February report by Business Daily argued that Kenya imports from Tanzania fell by $75.4 million last year on the back of renewed trade barriers, which impacted the flow of grains from the agriculturally endowed nation.
However, as the two nations mend an already complicated and bruised economic relationship, it is fair to recognize President Samia’s stern commitment to better the relations.
On March 19, alongside Uganda’s President Yoweri Museveni and Ruto, Samia once gain dived into solving East Africa Community’s integration challenges, including trade matters.
Infrastructure for development
Tanzania is now building a Standard Railway Gauge (SGR). The Africa Development Bank has provided $2.7 billion in financing for a new SGR railway project between Dar es Salaam and Isaka.
Just like any other developing economy, Tanzania exists and works it way out of setbacks, including energy poverty. Under President Samia’s administration, the government seeks to eliminate power cuts by 85 per cent and upon completion of the Nyerere Dam mega energy project, the country will have capacity of generating 2,115 megawatts.
The $2.9 billion hydropower project is expected to launched in mid-March 2024 according to the Deputy Prime Minister and Minister of Energy, Doto Biteko. In his lates update, Biteko said President Samia and Egyptian President Abel Fattah El-Sisi are expected to headline the launch.
With the ongoing investments to harness massive deposits of natural gas in Tanzania through billion dollar deals from international oil and gas investors, the country’s biting energy poverty could be a thing of the past.
Read also: U.S. announces $500m trade deal with Tanzania and cobalt refinery
