How Tanzania is fast becoming one of the best investment destinations in the world

Tanzania’s pro-business stance, perpetrated by the President of the country, Samia Suluhu Hassan is sending a positive message to investors, who are increasingly choosing Tanzania as their preferred investment destination, with the number of registered projects increasing by 128%, according to the most recent data.

The aforementioned data which was released by the Tanzania Investment Centre (TIC) shows that in February 2023, a total of 41 projects were registered across the country. This represents a 128%increase compared to 18 projects that were registered in February 2022.

Projects registered in February 2023 had a total value of $339.2 million (over Sh780 billion) and were expected to create 7,370 jobs. This reflects a 347% growth over the $75.9 million in capital estimated to be pumped into the country’s economy in February 2022.

Likewise, the 7,370 jobs expected from the new projects portray a 493% increase over those created by projects registered in February 2022.

The TIC executive director Gilead Teri noted via the TIC’s Monthly Investment Bulletin for February 2023 that through President Samia’s initiative to simplify business license registration, coupled with her devotion to growing the investment portfolio of the country, Tanzania has been able to become the attractive investment destination it is in her young tenure so far.

He stated, “apart from devoting considerable attention to supporting investors, the administration of President Samia Suluhu Hassan has streamlined licenses and permits procedures through implementing the Blueprint for Regulatory Reforms.”

He also noted that the government has increased its use of automation in compliance processes in recent months. It has also rationalized institutions to reduce duplication and simplified the process of acquiring land for investment purposes.

President Hassan recently moved the investment docket from the Ministry of Industry and Trade to the President’s Office in an effort to further transform Tanzania’s investment landscape.

Additionally, the value of capital expected to be invested has increased by 413%, rising from $66 million in January to $339 million in February of this year.

Transportation remained the most capital-intensive sector, followed by agriculture, manufacturing, tourism, and commercial buildings. Transportation emerged as the leading sector in attracting investment in February 2023, with projects worth $156.17 million.

In February 2023, it accounted for 46% of the total value of projects registered. Agriculture came in second with $90.20 million, accounting for 27%, while manufacturing received $53.68 million, accounting for 15.8%.

Tourism projects were valued at $29.02 million, while commercial buildings brought in $10.15 million, representing 9% and 3% of the total.

Manufacturing, tourism, and agriculture emerged as the top three leading sectors in attracting foreign direct investments (FDIs).