- Tanzania Investment Centre (TIC) targets to register 1,000 investment projects in 2024
- The government of Tanzania is also revising the immigration law to draw diaspora investors.
Tanzania Investment Centre (TIC)
From changing harsh taxing practices to revising the foreign direct investment environment – the Tanzania Investment Centre (TIC) is significantly making notable efforts to make the East African nation investor-friendly.
On Tuesday, July 16, TIC displayed its ambitious goal of attracting nearly $10 billion in capital investments in 2024.
The new target comes seven months later after the government of Tanzania introduced a new campaign to increase investment to around $14 billion attributed by locals.
Tanzania’s investment trajectory took an uplift witnessing 504 projects worth $5.2 billion in 2023 an increase from $3 billion previously.
According to TIC executive director, Gilead Teri, the ambition eyes building impressive growth in foreign and domestic investments for five consecutive years, factored by favourable investment laws and incentives.
“Tanzania Investment Centre (TIC) targets to register 1, 000 projects, with $5 billion in foreign capital and $3.5 billion in domestic capital,” he said.
Further, the TIC chief highlighted that the government closed the 2023/2024 fiscal year in June, the centre had registered 707 projects worth $6.56 billion.
He also said local participation has also been impressive, with 38.19 per cent of the registered projects owned by Tanzanians, while foreigners own 42.86 per cent, and 19.38 per cent are joint ventures between Tanzanians and foreigners.
“These projects are expected to generate 226,585 jobs compared to 53,871 jobs during the same period in the 2022/2023 financial year,” he said.
READ:U.S. investment in Tanzania to grow after Samia’s policy shift
Numbers point to growth
Tanzania Investment Centre (TIC) records show that, the top-leading sector was the manufacturing sector, with 313 projects valued at $2.462 billion, followed by the transportation sector, with 128 projects worth $1.03 billion.
Then commercial building construction sector came third with 76 projects valued at $1.07 billion. Meanwhile tourism registered 75 projects valued at $349.40 million, and agriculture had 56 projects valued at $710.02 million.
However, the $6.56 billion recorded in the preceding fiscal year was the highest recorded in the past five fiscal years, according to the statistics provided by the TIC.
During the corresponding period between July 2022 and June 2023, TIC recorded 369 projects worth $5.39 billion.
Data indicate that in 2021/2022 fiscal year, 274 projects were registered worth $2.24 billion, while in 2020/2021 fiscal year, 234 projects were registered worth $3.34 billion, and in 2019/2020 fiscal year, the TIC registered 220 projects worth $1.73 billion.
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Investment ambition
The Tanzania Investment Centre (TIC) confidently argues that’s implementation measures aim to facilitate the government’s gigantic ambition to fuel investment via the new investment act and the corporate strategic plan to enable Tanzanians to invest by collaborating with foreign investors.
According to TIC data, the center recorded a 111 per cent increase in the number of registered projects from 100 between January and March 2023 to 211 during this year’s corresponding period.
Further down the line, the total project value also increased by $217.98 million from $1.26 billion in the first quarter of 2023 to $1.48 billion in the first three months of 2024.
More importantly, when it comes to job creations – the number of jobs created increased to 24,931 this year compared to 17,016 that were created last year, which is a 46.5 per cent increase.
Undoubtedly Tanzania’s President Samia Suluhu Hassan pro-investment strategy and economic diplomacy agenda has contributed towards triggering global investors attention towards her nation.
During her predecessor’s administration, Late President John Magufuli investment saw a challenging flow as FDI declined.
Today Tanzania is reinvigorating the entire investment agenda by rolling out methods that increase numbers, including registering 1,000 projects this year. Also collaborating with regional authorities to promote local investment by local investors.
Furthermore, the figures depicted the number of projects registered in the manufacturing sector increased from 34 last year to 104 this year, attracting $454.23 million and anticipated to create 11,961 jobs.
The transportation sector follows after registering 46 projects as compared to 27 projects listed last year.
The projects registered this year are worth $578.93 million and are anticipated to create 7,049 jobs, up from 4,959 generated in a similar period last year.
The tourism, commercial buildings, and agriculture sectors follow in the list of segments that have registered many projects in the third quarter of the 2023/24 fiscal year.
Furthermore, the report shows that the value of capital attracted by commercial buildings increased to $333.17 million from $250.19 million recorded last year.
The tourism and agriculture sectors come next by bringing in $162.88 million and $107.01 million, respectively.
But also, on job creation things were fair. Agriculture generated 4,510 jobs as compared to 2,756 recorded last year, followed by tourism, services, and commercial buildings.
Changing the game
Just like other avenues of the economy, investment requires stringent changes. In the same vein, Tanzania is targeting more foreign investments, drawn from its nationals abroad (diaspora). The latter is driven by banking on the proposed amendment of revising laws granting special status for diaspora to set up business in crucial economic areas.
A report by The Citizen indicated how the government of Tanzania is looking forward to pausing its prohibitive laws and legislations, the government has tabled to Parliament for debate, Miscellaneous Amendments Bill 2024, which seeks to grant special status to Tanzanians living in other countries to set up business back home.
The proposed amendments to immigration laws are set to grant inheritance rights and investment incentives to Tanzanians living in other countries through the Diaspora Tanzanite card.
Uniquely, land and property ownership in Tanzania have been limited to Tanzanian citizens only. Tanzania is one of African countries with restrictive immigration laws and regulations imposed to foreigners and locals with dual citizenship on land ownership rights.
The Citizen report pointed out that the Miscellaneous Amendments Act, 2024 which was published on June 26, proposes changes to the Immigration Act, Cap 54 and Land Act, cap 113 to allow Tanzanians living in other countries to access land occupancy titles.
The investment field demand sound and effective strategies. On comparative basis, Kenya draws more (151) US companies investing than its neighbor Tanzania with only 10 US companies investing locally.
President Samia ambition to put Tanzania on the global economic map is evident in her actions. She promised to address immigration issues in the Act and assuring Tanzania’s diaspora smooth process in acquiring visa, remitting money back home channeled towards investment, expertise and technology for agricultural production, manufacturing and services.
Tanzanians in the diaspora have invested about $106 million through housing, while others bought shares worth Tsh6.45 billion ($ 2.4 million) in the UTT Asset Management and Investors Services (UTT AMIS) by 2023, Samia told the Tanzanians in Seoul.
Overall investment laws and regulations are instrumental in shaping a bright future for Tanzania’s investment landscape.
“These incentives include tax exemptions for ordinary and strategic investors, reductions in customs duties, and other financial incentives that make investing in Tanzania more appealing,” TIC chief said.
Mr Teri said the government decision to also lower the investment threshold to $50,000 for domestic investors will attract more registrations from local investors.
To improve the convenience and ease of investing in Tanzania, the government plans to strengthen the One-Stop Service Centre services at the TIC by introducing an online system for registering investment projects.
“This system allows investors to register their projects from anywhere in the world within one to three days,” said Mr Teri.
In a nutshell, all strategies on the table stand to put Tanzania on a competitive pathway to industrial revolution, if all things remain constant.
