Tanzania has become one of the most attractive investment destinations in East Africa, owing to its political stability, robust economic growth, expanding population, and geographical advantages. The country boasts the second largest population and third biggest economy in East Africa. Tanzania’s GDP grew at an average annual rate of 6.3% between 2010-2019. The government has implemented various measures such as the new Tanzania Investment Act 2022,visa-free policy for investors, and infrastructure development plans, to further improve the business environment and attract foreign investment. Key areas that present lucrative tanzania investment prospects include fintech, e-commerce, agritech and renewable energy.
Strong and steady GDP growth makes tanzania an appealing investment destination
According to official statistics, Tanzania’s GDP increased from 4.9% in 2021 to 5.2% in Q3 2022. The World Bank projects the country’s GDP growth rate to reach 6.2% in the coming years. In addition, Tanzania has maintained modest inflation at around 4% recently. The steady GDP expansion and sound macro-economic policies reinforce Tanzania’s appeal to investors in the long run.
Government stimulus leads to surging foreign investment in tanzania
Tanzania Investment Centre (TIC) data shows that foreign investment in Tanzania soared by 173% in the past two years, from $3.16 billion in 2021 to $8.64 billion, thanks to continuous government efforts in improving business climate. From March 2021 to February 2023, registered investment projects rose 26% from 455 to 575. In Q1 2023 alone, Tanzania attracted 93 projects worth nearly $1.2 billion.
Ongoing reforms make tanzania business environment more investor-friendly
The Tanzanian government has been actively enhancing the business environment through introducing new Tanzania Investment Act 2022, reviewing existing Tax Laws, expanding port capacity, upgrading inter-country railway and road infrastructure. Tanzania is also pushing reforms in the East African Community (EAC) to facilitate intra-regional trade and investment flows. These factors contribute to Tanzania’s growing prominence as a top FDI destination in Africa.
Fintech, e-commerce, agritech shine among tanzania investment opportunities in 2023
While the Tanzanian startup ecosystem is still at an early stage, it holds substantial potentials across multiple sectors. Fintech thrives on serving the large unbanked population. E-commerce startups can leverage the surging middle class and internet adoption. Agritech solutions that enhance productivity, reduce waste and connect farmers to markets are in high demand. Hence, these fields present the best tanzania investment opportunities in 2023.
In conclusion, Tanzania’s political stability, robust economic expansion driven by sound macroeconomic policies, together with recent government endeavors in reforming business climate have made the country an increasingly appealing destination for foreign investors. Key sectors such as fintech, e-commerce and agritech are likely to present the best tanzania investment prospects going forward.