The Tanzania Investment Center (TIC) will register 1,000 investment projects in 2024. The Tanzanian government is also revising immigration laws to attract diaspora investors.
Promoting FDI to boost Tanzania’s economy
From changing tax practices to revising the environment for foreign direct investments, the Tanzania Investment Center (TIC) is making significant efforts to attract investors to the region. TIC has set an ambitious goal of attracting nearly 10 billion USD in capital investments in 2024.
This new target comes seven months after the Tanzanian government launched a new campaign to increase investments by about 14 billion USD. Tanzania’s investment trajectory is accelerating with 504 projects worth 5.2 billion USD in 2023, a 3 billion USD increase compared to 2022.
According to TIC Executive Director Gilead Teri, the ambition is to generate impressive growth in foreign and domestic investments for five consecutive years. Teri states that local participation has also been amazing, with 38.19 % of registered projects owned by Tanzanians, 42.86 % by foreigners, and 19.38 % as joint ventures between Tanzanians and foreigners.
Growth indicators
Records from the Tanzania Investment Center show several sectors registering positive figures :
- Manufacturing sector with 313 projects worth 2.462 billion USD
- The transport sector with 128 projects worth 1.03 billion USD
- Construction sector with 76 projects worth 1.07 billion USD
- The tourism sector with 75 projects worth 349.40 million USD
- The agriculture sector with 56 projects worth 710.02 million USD
During the corresponding period from July 2022 to June 2023, TIC registered 369 projects worth $5.39 billion. Data indicates that during the 2021/2022 fiscal year, 274 projects were registered with a value of 2.24 billion USD. In the 2020/2021 fiscal year, 234 projects were registered with a value of 3.34 billion USD. In the 2019/2020 fiscal year, TIC registered 220 projects worth 1.73 billion USD.
Investment ambition
Whether in the manufacturing industry, Tanzania’s telecommunications sector, transport and logistics, tourism, or agriculture, Tanzania’s investment trajectory shows no signs of slowing down. TIC confidently asserts that implementation measures aim to facilitate the government’s grand ambition to stimulate investment.
According to TIC data, the center recorded a 111 % increase in registered projects, from 100 between January and March 2023 to 211 in the corresponding period this year. More importantly, regarding job creation, the number of jobs created increased to 24,931 this year from 17,016 last year, representing a 46.5 % increase.
President Samia Suluhu Hassan’s pro-investment strategy and economic diplomacy program have undoubtedly attracted global investors’ attention to her country. Today, Tanzania is revitalizing its entire investment agenda by implementing methods that increase the numbers, including registering 1,000 projects this year.
Enacting measures to foster investment
Like other economic sectors, investment requires rigorous changes. In the same spirit, Tanzania targets more foreign investments, especially from its nationals abroad (diaspora).
A report from the Citizen indicates that the Tanzanian government plans to suspend its prohibitive laws and legislation. The government has submitted the 2024 amendments bill to Parliament for debate. The goal is to grant special status to Tanzanians living in other countries to create businesses in their homeland.
The proposed amendments to immigration laws aim to grant inheritance rights and investment incentives to Tanzanians living abroad through the Tanzanian diaspora card.
Tanzania is one of the African countries where land and property ownership rights are restricted to Tanzanian citizens only. It is also one of the African countries where immigration laws and regulations are restrictive and apply to foreigners and locals with dual nationality concerning land ownership rights.
The investment sector requires solid and effective strategies. Comparatively, Kenya attracts more American companies (151) than its neighbor Tanzania, with only 10 American companies investing locally. President Samia’s ambition to place Tanzania on the global economic map is evident in her actions. She has promised to address immigration issues in the law and ensure a smooth process for the Tanzanian diaspora to obtain visas and transfer money to the country for investment.
