Why invest in Tanzania?

 

Tanzania is among the ten fastest-growing economies in Africa, with an average growth rate of 7 percent over the past decade. In July 2020, the World Bank upgraded Tanzania to a lower-middle-income country, a milestone achieved due to the nation's political and economic stability, consistent policies, and peaceful environment.

The country presents a wide array of investment opportunities across all sectors. The government, however, is particularly focused on key sectors such as agriculture, mining, tourism, manufacturing, agro-processing, pharmaceuticals, real estate, livestock, and fishing. Under the leadership of President Samia Suluhu Hassan, the 6th phase government is committed to integrating Tanzania more fully into the global economy by enhancing the investment climate and developing major infrastructure projects. These efforts aim to facilitate the flow of both Foreign Direct Investments (FDIs) and Domestic Direct Investments (DDIs), thereby promoting economic and social development for Tanzanians.

To achieve this, the government has embarked on significant legal and regulatory reforms to position Tanzania as a top investment destination in Africa. These reforms span areas like tax policy, the automation of investment procedures, institutional harmonization, land law revisions, and the removal of obstacles that hinder business growth.

The construction of the Nyerere Hydroelectric Dam, with a capacity to produce over 2,000 megawatts, will ensure a reliable and affordable power supply for investors. Additionally, the new electric-powered Standard Gauge Railway (SGR), connecting Dar es Salaam Port with Uganda, Rwanda, Burundi, and the Democratic Republic of Congo (DRC), is set to improve transport efficiency and reduce cargo costs by 40%.

As a member of the African Continental Free Trade Area (AfCFTA), Tanzania offers a promising environment for investors, thanks to its efficient transport networks, dependable and affordable electricity, and a supportive regulatory framework. Strategically located, Tanzania provides access to lucrative markets in the East African Community (EAC), the Southern African Development Community (SADC), and benefits from preferential trade agreements like the African Growth and Opportunity Act (AGOA) with the United States, as well as partnerships with major economies such as China, Japan, India, and the European Union.

Moreover, Tanzania is dedicated to upholding democratic values, good governance, human rights, and freedom of speech. These principles, rooted in the country's tradition, reflect a commitment to collaboration with the international community and the pursuit of shared goals.  (Tanzania Investment Centre)