Representatives of Turkish companies jet in Tanzania yesterday to kick off their six-day tour as they explore possible investment opportunities in the country. The investors are interested in three major sectors – hospitality, agriculture, and industries – that the President of State John Magufuli has prioritized to steer the industrialization drive in the economy, as revealed by the Deputy Minister for Foreign Affairs and the East African Community (EAC), Hon Dr. Damas D. Ndumbaro.
President Magufuli’s strategy to make the East African country attain middle-income status by 2025 has caught the attention of foreign investors who are ready to partner with the government in achieving its target. The Parliament has highlighted major sectors that could be investment vehicles to actualize the dream. As a result, a conducive business regulatory framework has been established with business incentives to attract more businesses.
Under the industrial sector, the Turkish companies would invest in textile sugar, cement and construction materials. According to Tanzania Invest, the industry contributes to 25 percent of the national GDP and has grown by 8 percent in the last five years. There remains untapped potential in the textile sector to be harnessed to better the performance of the industry.
In 2016, the country’s cotton exports surged to $46.8 million from $30.2 million, recording a 55 percent increase. In 2016/17 season the cotton plantation increased to 116,110 acres, recording a 66 percent increase from the precious 2015/16 season.
In their latest “Hotels outlook: 2018-2022” report, PricewaterhouseCoopers (PwC) expects Tanzania’s hospitality industry to bounce back with increased revenue of 10.2 percent. Tanzania is looking for investments bolster tourism earnings and performance. The sector is the fastest growing in the economy reaping massive benefits for the nation. Its competitiveness in the region is catalyzed by marketing strategies in the international market.
Turkish investments in Tanzania should increase employment opportunities and add impetus to economic performance. Tanzania recorded strong FDI growth 22 in 2016 to 35 last year.