Why invest in Tanzania

Tanzania offers a wealth of natural resources and vast investment opportunities. The country’s strategic location serves as a gateway for six landlocked nations that rely on Tanzanian ports as their most cost-effective entry and exit points. With fertile land, world-famous tourist attractions (such as the Serengeti, Mount Kilimanjaro, Ngorongoro Crater, and Zanzibar), rich natural resources, a substantial domestic and regional market, and a strong supply of local raw materials, Tanzania presents a compelling environment for investment. The country also boasts an affordable and skilled labor force, personal safety, hospitable people, and a market-oriented economic policy.

Key Reasons to Invest in Tanzania:

• Strong Investment Security: Tanzania enjoys unmatched political stability, free from ethnic conflicts, with democratic governance that respects diverse opinions and upholds constitutional and legal principles.
• Stable Macroeconomic Environment: The country maintains low inflation (4.2%) and stable exchange rates, with no restrictions on the transfer of profits, loan repayments, fees, and royalties.
• Efficient Bureaucracy: The Tanzania Investment Centre (TIC) acts as a one-stop facilitation agency, simplifying the process for registered investors and businesses.
• Economic Liberalization: Tanzania’s economic reforms, praised by the World Bank and the IMF, feature business-friendly legislation that is continually enhanced through open government-private sector dialogue.
• Attractive Incentive Packages: A comprehensive range of incentives is available to investors, with additional negotiated benefits for strategic investments.
• Strategic Location: Tanzania is an ideal entry point for trade into Eastern, Southern, and Central Africa due to its favorable geographic position.
• Diverse Investment Opportunities: The country offers lucrative prospects in infrastructure, privatization, and value-adding facilities.
• Investment Protection: Investments are protected against political risks, nationalization, and expropriation. Foreign businesses can access credit from domestic financial institutions, subject to the Bank of Tanzania’s regulations. Major banks, including Standard Chartered, ABSA, Barclays, Citibank, Stanbic, and Exim, have established a presence in Tanzania.
• Positive Investor Sentiment: Existing investors are looking to expand their operations in Tanzania, as reflected in surveys by TIC, the Bank of Tanzania, and the National Bureau of Statistics.
• Top Investment Destination: According to the UNIDO Foreign Investor Perception Survey (November 2003), Tanzania ranked as the leading investment destination with the highest sales growth.
  
  

Investment Opportunities: Under the Tanzania Investment Act of 1997 and the Zanzibar Investment and Protection Act of 2004, investment opportunities are categorized into key sectors:

Lead Sectors:

• Mining
• Infrastructure (e.g., road construction, bridges, airports, electricity generation, telecommunications, water services, mining support services)
• Export Processing Zones

Priority Sectors:

• Agriculture and livestock
• Aviation
• Commercial real estate
• Microfinance banking
• Export processing
• Special geographical development areas
• Human resources development
• Manufacturing
• Natural resource utilization (e.g., fishing)
• Rehabilitation and expansion projects
• Radio and TV broadcasting
• Tourism and tour operations