Tanzania’s business and investment environment has experienced a significant boost, with the number of registered investment projects increasing by over 90% in the past year, according to the Tanzania Investment Centre (TIC).
The positive trend is attributed to government reforms aimed at attracting both domestic and foreign investors.
President Samia Suluhu Hassan, in her maiden speech to Parliament, pledged to create a more conducive environment for investment by streamlining regulations and enacting policy changes. These measures have resulted in a surge in both investment and employment opportunities for Tanzanians, driving growth in various industrial and business sectors.
Between July 2023 and June 2024, TIC registered 707 projects with a total value of USD 6.561 billion, a significant increase from the 369 projects registered in the previous financial year. These projects are expected to generate 226,585 jobs, compared to 53,871 in the 2022-2023 financial year.
“The government has made substantial policy and regulatory changes to improve the business and investment environment,” stated Gilead Teri, Executive Director of TIC. “These changes demonstrate Tanzania’s commitment to creating a more accessible investment environment.”
The manufacturing sector has led the charge, with 313 projects worth USD 2.462 billion registered. Other prominent sectors include transportation (128 projects, USD 1.035 billion), construction of commercial buildings (76 projects, USD 1.079 billion), tourism (75 projects, USD 349.40 million), and agriculture (56 projects, USD 710.02 million).
One key factor contributing to the increase is the government’s development of the One-Stop Service Centre at TIC, which now offers an online system for registering investment projects. Investors can now register their projects from anywhere in the world within one to three days.
Additionally, the centre has introduced a Premier Service Centre, providing faster assistance with permits and registration within 24 hours.
The TIC has also implemented the “Tanzania Electronic Investment Window (TeIW),” a digital platform that allows for the registration of projects and applications from anywhere globally, simplifying the process for investors.
To further promote domestic investment, TIC launched a national campaign in August 2023, aiming to encourage local investors to register their projects. The campaign, spearheaded by Prime Minister Kassim Majaliwa, has reached 17 regions across Tanzania and will soon extend to the remaining regions.
The campaign emphasizes the benefits of investing in Tanzania, aiming to dispel the perception that investment is exclusively for foreigners. It seeks to increase awareness of available incentives and encourage Tanzanians to participate in building the country’s economic future.
The TIC is optimistic about the future of investment in Tanzania. The organization aims to register 1,000 projects with a total value of USD5 billion in foreign capital and USD3.5 billion in domestic capital by 2025. Additionally, TIC is committed to ensuring that 10% of these projects contribute to efforts to combat climate change.
With the government’s continued commitment to creating a favorable investment environment, Tanzania is poised to attract significant investment capital, driving economic growth and creating opportunities for all Tanzanians.
