Joseph Isangura
Tanzania has witnessed a remarkable surge in investment over the past four years, with the country attracting 2,020 new projects worth $23.67 billion (approximately 61.8 trillion Tanzanian shillings).
This marks a significant 91% increase compared to the 1,057 projects recorded in the previous four-year period from 2017 to 2020.
The latest figures highlight Tanzania’s growing appeal as a key investment destination in Africa. The surge in investment is attributed to economic reforms, improved business policies, and strategic efforts to attract both local and foreign investors.
According to data from the Tanzania Investment Centre (TIC), 34.3% of the registered projects are owned by Tanzanians, while 42.6% are under foreign ownership. Additionally, 23.1% are joint ventures between local and international investors, showcasing an increased collaboration between businesses.
The Executive Director of TIC, Mr. Gilead Teri, emphasized the government’s commitment to fostering a business-friendly environment. “We have undertaken major reforms to eliminate barriers to investment, enhance infrastructure, and streamline regulatory processes. This has significantly boosted investor confidence,” he stated.
Sectors Driving Investment Growth
The investment boom has been felt across various key sectors, contributing to economic expansion and job creation. Among the leading sectors are:
- Manufacturing: 917 projects, making it the top sector for investment.
- Transport and Infrastructure: 348 projects, supporting roads, ports, and railway expansion.
- Real Estate: 204 projects, meeting the rising demand for housing and commercial properties.
- Tourism: 191 projects, reinforcing Tanzania’s status as a premier travel destination.
- Agriculture: 180 projects, strengthening food security and agribusiness.
Job Creation and Economic Impact
With the increase in investments, employment opportunities have also expanded. Over 523,000 jobs have been created across various sectors, a significant rise from the 136,000 jobs recorded between 2017 and 2020.
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Business owner John Michael, who recently established a manufacturing plant in Dar es Salaam, credited the government’s investor-friendly policies for his decision to invest. “The ease of doing business has improved significantly, and there is strong government support for industrialization. This has given investors confidence to expand their operations in Tanzania,” he said.
2024: A Historic Year for Investment
Last year marked a record-breaking period, with TIC registering 901 new investment projects valued at $9.31 billion (around 24.2 trillion Tanzanian shillings). This was the highest number of investments recorded in a single year since TIC was established in 1997.
Minister of State in the President’s Office (Planning and Investment), Prof. Kitila Mkumbo, described 2024 as a turning point for Tanzania’s economy. “Our country is emerging as one of Africa’s most attractive investment hubs. The economic policies implemented in recent years are yielding tangible results,” he noted.
Future Prospects
Building on this momentum, the government has set an ambitious target of attracting 1,500 new investment projects worth at least $15 billion (about 39 trillion Tanzanian shillings) by the end of 2025. Special focus will be placed on sustainable industries, technology, and renewable energy.
With Tanzania’s growing reputation as a stable and investor-friendly nation, the future looks promising for businesses and the broader economy. The foundation laid over the past four years is expected to drive long-term economic growth, benefiting millions of Tanzanians in the years ahead.
