Dar es Salaam. Tanzania has unveiled a new investment framework designed to attract more local and foreign investors by making it faster, cheaper and easier to establish manufacturing and export-oriented businesses.
The director general of the Tanzania Investment and Special Economic Zones Authority (Tiseza), Mr Gilead Teri, said the approach prioritises speed and measurable results.
Writing on his social media platforms, Mr Teri said that under a “one-year speed” plan, strategic investors are expected to obtain approvals, secure land and commence production within 12 months.
“The goal is to move away from long waiting periods and ensure projects start operating quickly,” he said.
To support this, qualifying investors are allocated land at no cost, on condition that they begin manufacturing within an agreed timeframe. The measure is intended to curb land speculation and encourage serious, production-focused investment.
The reforms are anchored in Special Economic Zones (SEZs), which are overseen by Tiseza. Within these zones, investors can obtain project approvals and building permits within 24 hours, significantly reducing bureaucratic delays that have historically slowed the start of business operations.
Mr Teri said firms producing goods for export enjoy a range of incentives, including a 10-year corporate tax holiday, duty-free importation of machinery and raw materials, and a 75 percent reduction in duties on capital goods, factory buildings and transport trucks. He emphasised that the incentives are primarily targeted at manufacturing rather than trading activities.
From the SEZs, investors gain access to both regional and global markets. Tanzania offers entry into the East African Community (EAC) and the Southern African Development Community (Sadc), as well as broader market access through the African Continental Free Trade Area (AfCFTA). Exporters also benefit from preferential trade arrangements with the United States, Europe and parts of Asia.
To further streamline operations, all key licences and approvals are processed through a one-stop centre under Tiseza.
In addition, officers have been deployed at major ports to facilitate faster cargo clearance and reduce transport delays.
According to the Ministry of State in the President’s Office (Planning and Investment), foreign investment in Tanzania continues to expand.
China is currently the largest investor, followed by the United Arab Emirates and the United Kingdom. Investments are concentrated mainly in manufacturing, infrastructure and energy, and have generated thousands of jobs.
Total registered investment increased from Sh9.32 trillion in 2021 to Sh22.91 trillion in 2024, placing Tanzania among Africa’s top 10 investment destinations and the leading one in East Africa.
Despite the positive trajectory, private sector organisations and analysts say there are still gaps that must be addressed for Tanzania to fully realise its investment potential.
The acting chief executive officer of the Tanzania Private Sector Federation (TPSF), Mr Deogratius Massawe, welcomed the new framework, saying it responds to long-standing concerns such as high costs, slow approvals and unclear procedures. He said effective implementation could position Tanzania as a regional manufacturing and logistics hub.
However, Mr Massawe cautioned that success would depend on consistent execution across government agencies, reliable infrastructure within and around SEZs, and improved access to long-term financing, particularly for local investors.
“TPSF is ready to work with the authorities to ensure the reforms translate into real investments, jobs and economic growth,” he said.
Separately, the chief executive of the Tanzania National Chamber of Commerce, Industry and Agriculture (TNCCIA), Mr Oscar Kisanga, said foreign direct investment remains critical for job creation, technology transfer and industrial development.
He noted that improvements in infrastructure, including the Standard Gauge Railway (SGR), have strengthened Tanzania’s attractiveness to investors.
He also underscored the need for partnerships between foreign and local firms to promote skills transfer, support domestic businesses and maximise economic benefits.
Independent financial analyst Mr Oscar Mkude said that while tax incentives are politically attractive, their application procedures remain lengthy and complex.
“Investors often have to engage with multiple ministries to resolve a single issue, which slows the process and can create opportunities for corruption,” he said.
Mr Mkude also highlighted the importance of political stability, noting that uncertainty tends to erode investor confidence. He called for a thorough review of previous incentive programmes to assess their effectiveness and determine corrective measures where they have fallen short.
American entrepreneur and investor Mr Michael Coudrey said Tanzania has exceptional natural, strategic and demographic advantages, but added that unlocking large-scale American institutional investment would require greater clarity, secure ownership rights, policy stability and non-adversarial regulation.
“Tanzania is standing at the threshold of a historic capital-inflow opportunity.
If the regulatory landscape is refined to strengthen investor ownership security, uphold free-market principles and proactively defend legitimate investments, the country will unlock billions in new investment and position itself as one of Africa’s most competitive and respected destinations for international capital,” said Mr Coudrey, the chief executive officer of Tova Farms, a multinational avocado producer and exporter.
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