The Tanzania Investment Centre (TIC) will soon be bouncing back, ready to promote and enable more investments into the country as the investment environment improves.
Investors have aired their existing challenges that hinder their operations and expansion of economic activities.
The primary agency of the government has thus taken the matter seriously and has taken the initiative to address the barriers to business, as the country aims to not only attract more investments but rank higher in the global rankings of doing business. President John Magufuli has emphasized the need for foreign investments to drive economic development that is sustainable and that would create employment opportunities and fulfil the government’s development objectives.
Venance M. Mashiba, TIC’s Eastern Zonal Manager stated that the TIC revamped the regulatory framework for investment in Tanzania. The introduction of legislation of the regulatory system aims at boosting the market economy, gain competitive ground and stability. He said to a local daily, “We want to help in putting in place a more conducive environment for investors that is why we make sure we improve the investment environment.”
Acquisition of permits of required licenses was a challenge highlighted by traders. The legal procedures were hectic and time-consuming that discouraged many businesses. However, the organisation has looked into the matter and addressed the issues accordingly.
As well, business incentives offered are slowly improving the business climate as more FDI inflows are coming in.
The meteoric rise of Ethiopia has attracted the attention of many investors, an opening that has stiffened competition with other East African countries. Ethiopia has become the preferred investment hub regionally due to its potential, market size and economic outlook as forecast by World Bank. Its attractiveness has compelled its neighbouring states to restructure their business strategies.
Last year, Ethiopia attracted over $3.6 billion worth of investments, almost half of the FDI invested in East Africa. Tanzania attracted $1.2 billion, while President Museveni’s Uganda received $0.7 billion. Kenya recorded the lowest as it trailed in the pecking order with $0.6 billion the same year. For Kenya though, this came as a relief as the FDI increased by an impressive 71 per cent in spite of political uncertainties the country had been experiencing, affecting its economic climate.
Foreign direct investment in East Africa increased by 4.2 per cent in 2016 before it dropped 25.3 per cent from $8.8 billion in the same year to $6.6 billion in 2017. Despite the decrease, the region remains an attractive hub for foreign firms.
According to the World Bank report, FDI inflow to North Africa was down 4 per cent to $13 billion while in Southern Africa, FDI declined by 66 per cent to $3.8 billion. The top five investors in Africa in 2016 were the United States, the United Kingdom, France, and China.