Joseph Isangura
Despite their strong economic profiles, Mbeya and Tanga are struggling to translate their regional gross domestic product (GDP) strength into actual investment and job creation.
The challenge highlights a growing disconnect between regional economic performance and real-time investment facilitation in Tanzania.
Data from the Bank of Tanzania in its Zonal Economic Performance Report – Q3, 2024 ranks Mbeya third nationally, with a GDP of TSh 4.3 trillion, while Tanga follows in 10th place with TSh 3.2 trillion. However, these figures are not matched by actual investor interest.
According to the Tanzania Investment Centre (TIC), Mbeya attracted 20 registered projects in 2024, worth $59.22 million, and created 2,442 jobs. Tanga saw 23 projects worth $137.66 million, producing 1,315 jobs — starkly lower than what other regions managed.
Dar es Salaam, the country’s largest city and economic hub, outpaced all others with 356 projects attracting over $4.4 billion in capital and generating 107,000 jobs. Similarly, Mwanza, which ranks second in GDP, recorded 37 projects valued at $581 million.
Arusha, known for its strong tourism and trade sectors, registered 64 investment projects, totalling $213 million. Even smaller regions like Ruvuma and Shinyanga reported better performance, securing $597 million and $415 million respectively in capital investments.
Experts attribute the underperformance of Mbeya and Tanga to weak institutional coordination, lack of strategic investment promotion, and outdated or non-aggressive marketing efforts to attract foreign and domestic investors.
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Despite the shortfalls, Tanzania is pushing forward with its broader national strategy. The TIC aims to secure 1,500 new investment projects worth $15 billion by the end of 2025, as the country works to position itself among the top five investment destinations in Africa.
Focus sectors include:
As of the end of 2024, the TIC had registered 901 projects worth $9.37 billion, creating over 212,000 jobs. This marks a significant jump from 2023’s 526 projects valued at $5.67 billion, which produced around 137,000 jobs.
To address regional disparities, the government is developing a national framework to assess how well local authorities facilitate investment. The evaluation will cover areas such as infrastructure readiness, registration efficiency, and bureaucratic reduction. The initiative also aims to build stronger regional secretariats with greater autonomy and capacity to support businesses directly.
If Mbeya and Tanga are to unlock their full potential, they’ll need to align economic data with deliberate, well-structured action — turning statistical GDP into tangible investments that create jobs and drive inclusive development.
