Top Reasons Why You Should Invest In Tanzania

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Tanzania is endowed with a variety of natural resources including a 1,424-kilometer coastline, enormous arable land, world-class tourist attractions, minerals, oil, and gas which offers tremendous investment opportunities. Available arable land and conducive weather provide opportunities for agro production and agro-processing, livestock farming as well as the processing of livestock products including meat, milk, and leather. Tanzania is rich in minerals as well as precious gemstones offering mining opportunities. Minerals found in Tanzania include gold, iron, silver, copper, platinum, nickel limestone, soda ash, gypsum, salt, phosphate, and tin. Gemstones that can be found in Tanzania include sapphires, rubies, emeralds, spinel, tanzanite, alexandrite, tourmaline, zircon, aquamarines, tsavorite, spessartite, rhodolite, and demantoid garnets.


Investment opportunities in Tanzania includes:

  • Telecom and ICT
  • Aviation
  • Agricultural Business
  • Travel and Tourism
  • Logistics And Warehousing

Top Reasons Why You Should Invest In Tanzania

Tanzania has emerged as one of the most important gemstone-producing countries in the region. The Discovery of huge offshore gas reserves will help Tanzania to achieve economic diversification and enhance macroeconomic stability. Other sectors with investment potential include manufacturing, tourism, real estate, telecommunication, broadcasting, energy, finance, etc

Tanzania is among the top ten investment destinations in Africa, thanks to reforms and a conducive investment environment set by the government.

The Rand Merchant Bank ranked the country tenth in investment attractiveness, in the Where to Invest in Africa 2021 report released recently.

The East African nation has been on a rapid path of development over the past few years, a feat that has also seen one of Africa's fastest-growing economies claim the third spot within the EAC.

This progress can be attributed to consistent public investment from the government in key secondary and tertiary sectors, ranging from the energy sector to advancements in the telecommunications and finance sectors, according to the findings.

The Government Chief Spokesperson Gerson Msigwa recently revealed that the number of new investment projects registered in Tanzania between March and August 2021, had risen to 133, with a worth of about 2.98 billion US dollars.


Why invest in Tanzania

Tanzania enjoys an abundance of natural wealth, which offers tremendous investment opportunities for investors. These include an excellent geographical location six landlocked countries depend on Tanzania ports as their cheapest entry and exit ports, arable land, world-renowned tourist attractions like Serengeti, Kilimanjaro, Ngorongoro, and the Spice Islands of Zanzibar, natural resources, a sizeable domestic and sub-regional market, a wide local raw materials supply base, abundant and inexpensive skills, assurance of personal safety, warm friendly people and a suitable market policy orientation.

The following are among the major reasons why you should invest in Tanzania:

The high degree of investment security because of unparalleled political stability that is strife-free without ethnic division; a democratic rule that respects the diversity of opinion and a strong tradition of constitutionality and rule of law.

Business-friendly Macro-Economic Stability with a low inflation rate of 4.2 percent, stable exchange rates supported by unrestricted and unconditional transferability of profits, loan repayments, emoluments, royalties, fees, and charges;

Simplified bureaucracy, streamlined through the acclaimed services of the Tanzania Investment Centre which is a one-stop facilitation agency of government serving registered investors and businesses;

Successful economic liberalization measures are commended by both the World Bank and the IMF with business-supportive legislation continually being improved through genuine dialogue between government and the private sector

A well-balanced package of incentives to investors with additional negotiated benefits to strategic investors

Rapidly emerging as the most effective entry point and gateway for trade into Eastern, Southern, and Central Africa;




Lucrative investment opportunities in infrastructure, privatization, and value-adding facilities.

Investment guarantees, and settlement of Disputes. Investments in Tanzania are guaranteed against Political risks, Nationalization, and Expropriation.

Any foreign business operating in Tanzania may obtain credit from domestic financial institutions up to the limits established by the Bank of Tanzania. Major banks like Standard Chartered, ABSA, Barclays, Citibank, Stanbic, Exim, etc. have invested in Tanzania.

Existing investors are ready to expand their businesses in Tanzania as depicted in the recent survey conducted by TIC, BoT, and NBS.

Tanzania has been rated as the number one investment destination with the highest sales growth by the UNIDO´s Report of Foreign Investor Perception Survey, November 2003.


Investments Opportunities in Tanzania

Tanzania under the new enacted investment code Tanzania Investment Act 1997 and the Zanzibar Investment and Protection Act 11 2004 has been able to identify and categorize investment opportunities into load and priority sectors as follows:

Load Sector

Mining, Infrastructure which includes: Road Construction, Bridges, Airports, Generation of Electricity, Telecommunications, Water Services, Backup, services to Mining, and the Like and Export Processing Zone.
Priority Sector
Agriculture including Livestock, Air Aviation, Commercial Buildings, Commercial Development, and Microfinance Banks, Export processing, Geographical special development areas, Human resources development, Manufacturing, Natural resources, including fishing, Rehabilitation, and Expansion, Radio and Television broadcasting, Tourism, and tour Operation.



Top 5 Investment Opportunities in Tanzania

Telecom and ICT: The potential in telecom and Information and Communications Technology remains enormously high and untapped, even the government of Tanzania has poured a large amount of capital and energy into the national fiber optic cable network which also follows its connection to submarines. This sector will also benefit from government and non-government investment, where even more importance will be given to mobile banking because it has not reached its full potential yet.


Aviation: This is one of the most highly profitable business enterprises one can get into because even the government of Tanzania is ready to issue a license to the investors who are willing to invest in it because the aviation industry is still growing.

Agricultural Business: In the past years as the GDP is increased the calorie intake during this time has increased accordingly which shows the fact of growing demand for vegetables and meat. Tanzania is blessed with diverse climate conditions and fertile land and water to support its agriculture. Distributions of all these products should also improve the demand of supermarket chains.

Travel and Tourism: Beautiful destination attracts tourists and makes it a plus point for the country to increase the GDP. It also increases employment, and is considered the fastest-growing sector in Tanzania and is still open for investors.

Logistics And Warehousing: Manufacturing industries will grow which will create the necessity for logistics and warehousing for many sectors. Now, the government of Tanzania is also making efforts to bring a change with the help of financial institutions and currently is working on the Tanzania to Kenya Road project because roads and railways are the keys to smooth functioning and improving distribution and life in Tanzania.


Tanzania is a country located in Eastern Africa bordering the Indian Ocean. It shares borders with Kenya and Uganda to the north, Rwanda, DRC, and Burundi to the west, Malawi, Zambia, and Mozambique to the south, and the Comoro Islands to the east. It gained independence from the United Kingdom and became the United Republic of Tanzania on 29 October 1964 following the amalgamation of Tanganyika and Zanzibar. It is the Presidential Republic with the President sitting as the Head of State and government. Its administrative capital is Dar es Salaam and its Legislative capital is Dodoma. It has an administrative structure divided into 31 regions. It runs a unicameral legislative system, and its legal system is based on English common law. Swahili and English are the official languages as English is regarded as the language of commerce. Christianity is a major religion and a sizeable number of those who practice Islam. It has an area size of 0.947 million square kilometers. The country’s geography is strategically located. Tanzania’s shoreline with the Indian Ocean gives it trade links to Asia, the country sits in between the ocean and 6 landlocked countries namely: Uganda, DRC, Rwanda, Burundi, Zambia, and Malawi that rely on Tanzania for the passage of goods. It has 3 deepwater ports namely: Dar es Salaam, Tanga, and Mtwara that are servicing the neighboring countries. Furthermore, its membership in the SADC Free Trade Area and EAC Common Market, with developed rail and road networks, makes Tanzania a natural transportation gateway for East and Central Africa.


Tanzania has an estimated population of 62.09 million comprising mostly of younger population less than 25 years which makes up about 63.1 percent of the population, those in the age bracket of 25 to 64 years makeup about 33.8 percent of the population and above 65 years age group makes up of about 3.1 percent of the population. The average population density is estimated at 67 inhabitants kilometers. In terms of human development indicators, it has a life expectancy of 71.7 years for Women and 68.1 years for Men. It achieved universal primary education with a 98.8 percent Primary enrolment rate in 2019 and an overall literacy level of 77.9 percent as of 2015.


Tanzania has vast mineral resources such as gold, copper, diamond, iron, natural gas, uranium, tin, gemstone, nickel, coal, phosphate, etc and the economy depends on agriculture accounting for about 25 percent of GDP and employs 65 percent of the country’s active population. Tanzania has one of the widest crop varieties in Africa. Tourism is another important component of the country’s economic sector contributing about 10 percent of GDP in 2018 as Tanzania has one of the richest and most diverse wildlife in Africa. Huge offshore gas reserves which were discovered in 2010 could turn the country into one of the main LNG producers in sub-Saharan Africa. It managed to achieve a modest 5-year compound annual GDP growth of 6.6 percent. Its currency is the Tanzanian Shilling. Main exports include coffee, cashew nut, gold, cotton, etc. Major imports include machinery and transport equipment, consumer goods, industrial raw material, crude oil, etc.

The future of Tanzania has an unwavering opportunity for individuals to invest and for new enterprises to spring up. The industries are ever booming and new opportunities are available because this is one of the African countries that can guarantee good returns because you will be buying into the bigger picture of opportunities where you can successfully set up a business in Tanzania.


Foreign investors generally receive treatment equivalent to domestic investors but limits still persist in a number of sectors. Tanzania conforms to best practices in several cases. There are no geographical restrictions on private establishments with foreign participation or ownership, no limitations on the number of foreign entities that can operate in a given sector, and no sectors in which approval is required for foreign investment greenfield FDI but not for domestic investment.


The United Republic of Tanzania, according to Government officials, welcomes foreign direct investment as it pursues its industrialization and development agenda. However, in practice, government policies and actions do not effectively keep and attract investment. The 2019 World Investment Report indicates that FDI flows to Tanzania increased from 938 million dollars in 2017 to 1.1 billion dollars in 2018, although they have not recovered to pre-2015 levels. Investors and potential investors note the biggest investment challenges include difficulty in hiring foreign workers, reduced profits due to unfriendly and opaque tax policies, increased local content requirements, regulatory or policy instability, lack of trust between the Government of Tanzania and the private sector, and mandatory initial public offerings in key industries.

However, Tanzania discourages foreign investment in several sectors through limitations on foreign equity ownership or other activities, including aerospace, agribusiness (fishing), construction and heavy equipment, travel and tourism, energy and environmental industries, information and communication, and publishing, media, and entertainment.





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Tanzania is a country located in Eastern Africa. It shares borders with Kenya and Uganda to the north, Rwanda, DRC, and Burundi to the west, Malawi, Zambia, and Mozambique to the south, and the Comoro Islands to the east.



top reasons why you should invest in tanzania
top reasons why you should invest in tanzania 2022





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