Browsing: Invest in Tanzania

• 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 …

Foreign Investors Challenges in Tanzania

“We are writing to express our concerns regarding both recent and ongoing challenges faced by foreign investors in Tanzania,” said a letter by a group of Ambassadors representing the United States, the United Kingdom, the Kingdom of Netherlands, France, Belgium, Canada, Korea, Sweden and Germany obtained by The Exchange, in part.

According to the letter addressed to January Makamba, Minister of Foreign Affairs …

Contrary to her predecessor, President Samia’s pro-business approach has yielded impactful results, paving the way to a prosperous investment journey for Tanzania. President Samia’s administration spent the first year and ten months dealing with various drawbacks that hurt the nation’s ability to market its investment potential to the world.

The government of Tanzania has done away with an unfriendly taxation system, complexity in issuing work permits to foreigners, and trade setbacks. Consequently, Tanzania’s pro-investment approach caught international economic analysts’ attention, including global credit rating, research and data, and Moody’s.…

• In the year before Samia’s administration, Tanzania’s FDI closed 2020 at $3.16 billion though the Covid-19 pandemic might have impacted the inflows.
• Between March 2021 and February 2023, the number of registered funded projects rose from 455 to 575, equivalent to a 26 percent increase.
• Investment expansion in Tanzania trickled down towards the community during the period under review, and job creation grew from 61,900 to 87,187.

Over the past six years, Tanzania investment sector has gone through a somewhat cyclic pattern. Former President John Magufuli’s polices were deemed unfriendly by investors forcing capital to flee to more predictable and profitable markets.

However, in the last two years, there has been a wind of change brought about by President Samia Suluhu who has taken a pro-business approach focused on improving international business and diplomatic relations in the region and across the world.

According to data from Tanzania Investment Centre (TIC), …

• The European Union Investment Bank (EIB) have agreed with commercial banks to unlock a whole new business financing valued at around $580 million.
• The EU is optimistic about the government’s efforts to attract businesses and support investment
• Tanzania Development Vision (TDV) 2025 indicates that about 54.3 percent of Tanzania’s small, medium and micro enterprises (MSMEs)

Over the past two years, President Samia’s administration has not only brought back confidence to investors who left Tanzania but attracted new ones and reinforced the old partners, including the United States.

Tanzania is walking confident with almost $1 billion in investment from various companies from the US, thanks to President Samia’s US visit in April 2022.

The European Union Investment Bank (EIB) and other investors have agreed with commercial banks in Tanzania to unlock a whole new business financing valued at around $580 million.

The support is breathing life into additional capital to small …

 The Tanzania Investment Centre (TIC) said that the country garnered a 22.2 percent rise in registered projects over the past five months. 132 additional projects will be registered between July and November of 2022, compared to 102 during the same period in 2021. 

Tanzania is making significant progress in attracting the appropriate investment over time and space. This development is attributable to the current government under the leadership of President Samia Suluhu Hassan, whose dedication to expanding investment is shared by the whole economy. 

Tanzania’s economy is currently at 5,2 percent of GDP (3rd quarter 2022) and 4.9 percent inflation. Notwithstanding this, growth in other vital areas has been crucial to ensure Tanzania’s industrialization goals remain on track. 

 According to a research published by African Mining Market on February 13, the mining industry in East Africa is witnessing tremendous expansion. Whereby, Tanzania’s sector is adding to the GDP whose proportion …

Politics in Tanzania are now taking a different shape compared to the past five years. Opposition parties in Tanzania, such as CHADEMA  and ACT are collaborating with the main leading party CCM to put the nation in the right economic boost trajectory.

Over the past two decades, East Africa has witnessed how political instability has dealt a blow to economic growth. During the 2007/2008 post-election violence in Kenya, the country recorded its worst economic performance. The ripple effects spread to neigbouring countries of Uganda and as far as Rwanda and DRC.  

Tanzania had its own political turmoil between 2015 and 2020 where human rights and press freedom were often infringement. 

However, Tanzania, which has ambitions of becoming an industry-driven economy, is tuning its economic pro-growth policies in the right way to attract the necessary investors and environment for sustainable development. 

This economic vision is now being backed by President Samia …

• The tripling of investment in 2022 is a statement to the world that the East African nation is open for business.
• The success is a straightforward strategic plan from President Samia’s administration since she assumed office in March 2021.

Tanzania Investment Centre (TIC) records show that the year 2022 has made the statement ‘Invest in Tanzania’ hold water. Over the past months, several activities have echoed across multiple fields, including manufacturing, transportation and tourism.

TIC records show that from July to November 2022 there was an increase of 22.2 percent in investment projects (132 registered projects) compared to 102 projects registered during the same period in July to November 2021.

In October, the American firm Moody’s Investors Service changed its status on Tanzania’s outlook from stable to positive, noting that political risks have declined under President Samia Suluhu Hassan’s administration, which concurrently promotes economic development and strong diplomatic ties.

Tanzania’s …

Energy producers argue that Tanzania’s LNG international markets could be worth around 44.3 billion (based on 2021 markets), thus proving how the sector benefits all parties involved in the investment. 

The EACOP pipeline is another success story that Tanzania wears as a badge of honour. It managed to win Uganda over and sweep off Kenya from the deal, as Tanzania’s land laws and policies favoured the project timeline. According to information from the EACOP official website, the oil project will transform oil and gas investment in both countries while increasing their FDI by over 60 per cent during the construction phase alone. 

Mining is another extractive sub-sector that yields profits for both Tanzania and investors. After facing a series of international legal complications, Tanzania’s new mining landscape is open for business.

Big global miner such as Barrick Gold has solidified investment in Tanzania mines which produce valuable diamond and gold …

• China is one of Tanzania’s biggest trade partner
• Tanzania’s industrial economy has been growing over the past decade
• Tanzania has nabbed US$3 billion investment from China company

Investment in Tanzania is changing the labour market and industries in Tanzania for the better.

The government of Tanzania is doubling down on expanding its industrial complex as the new industrial scheme stands to draw around 100,000 direct jobs and 300,000 by 2025 and change Tanzania economy for good.

Tanzania’s industrial economy is slated to expand twelve-fold in the next three years, adding more support to the minor industrial landscape currently operating nationwide, while expanding the list of reasons to invest in Tanzania.

Industries in Tanzania have become a critical component of economic transformation.  Tanzania has more than 62,000 small industries which add value to raw materials extracted internally.

READ: Tanzania bagging billions in natural gas investments

According to the Ministry of Investment, …