Tanzania sees robust investment growth in Q3 of 2024/25 fiscal year

According to the Tanzania Investment Centre's (TIC) quarterly investment report, FDIs accounted for a dominant 63 percent of the total approved investments, valued at $1.36 billion.

This figure alone represents a substantial 77.06 percent increase compared to the FDI recorded in Q3 2023/24, highlighting an accelerated inflow of foreign capital.

The top five sources of this burgeoning FDI were China, injecting $389.16 million, followed by the United Arab Emirates with $185.54 million, Switzerland contributing $164.02 million, Burundi at $115.75 million, and Rwanda adding $114.22 million.

Domestic Investments, while making up a smaller 27 percent of the total capital, still contributed a significant $795.12 million, reflecting a healthy 13.28 percent increase from the prior year, indicating sustained local confidence as well.

TIC executive director, Gilead Teri, said during Q1 2025 (Jan-March), the Centre (TIC) shifted focus to project follow-up and aftercare, building on the unprecedented achievement of 2024.

In 2024, TIC set a record for the highest number of projects registered in a calendar year, where it registered a total of 901 projects worth $9.31 billion.

"This quarter has been a significant period of continued improvement,” he said.

 Sectoral analysis of the attracted capital reveals dynamic shifts and significant growth areas.

Manufacturing led all sectors, attracting $662.59 million, a notable increase from $454.23 million in the previous year.

Agriculture experienced an extraordinary surge, with capital jumping from $40.85 million to $522.72 million, positioning it as the second-highest sector by capital.

Energy also saw substantial capital growth, rising from $57.75 million to $373.19 million, reflecting growing interest in the sector.

Economic Infrastructure, which had no projects in the previous period, recorded 9 new projects valued at $129.98 million, alongside growth in Human Resources (Health & Education) from $11.8 million to $58.43 million in capital and 2 to 5 projects.

According to Teri, a landmark development was the passing of the Tanzania Investment and Special Economic Zones Authority Act, which facilitated the establishment of the Tanzania Investment and Special Economic Zones Authority (TISEZA) on February 13, 2025, merging TIC and the Export Processing Zones Authority (EPZA).

 “The Act seeks to stimulate local and foreign investment by introducing key incentives, creating a comprehensive land bank comprising both public and registered private land, and digitizing service delivery through a strengthened One Stop Facilitation Centre,” he said.

Teri also stated that the Act sets capital thresholds for strategic investment status, a move that is set to significantly improve the investment climate and accelerate economic growth.

In terms of project ownership, foreign-owned projects led with 94 registrations, while locally owned projects accounted for 66.

Notably, joint venture projects showed a positive trend, increasing by 62.5 percent to 39 projects from 24 in the same quarter of 2023/24.

Geographically, investment projects showed a clear concentration, with the majority (73 projects) located in the Dar es Salaam region, followed by the Coast region with 48 projects, and the Arusha region attracting 16 projects.

While many sectors thrived, some experienced a decline in capital.

Transportation saw a significant drop from $479.55 million to $203.81 million, and Commercial Building experienced a sharp decrease from $250.19 million to $88.20 million.

Tourism also recorded a capital decrease from $162.88 million to $46.31 million.