Tanzania to double investment by 2025, targeting local Investors

Dar es Salaam. The government is targeting increasing investment to Sh37.72 trillion by 2025 after embarking on a campaign that seeks to convince more locals.

Minister for Planning and Investment, Prof Kitila Mkumbo, said yesterday that the Tanzania Investment Centre (TIC) registered 504 projects worth Sh14.06 trillion in 2023, up from $3 billion (Sh7.5 trillion) previously, and now the government has a campaign that will be used to sensitise Tanzanians to invest in the country.

According to him, the campaign, which will last for the whole year, aims to increase the number of Tanzanians who invest in the country and remove the notion that a person who invests should be a foreigner with a lot of money.

“The government continues to implement various strategies to motivate, attract, and promote economic activities in the country, while the goal is to increase capital and modern technology,” he said during a media briefing.

He said that promoting the economy means that activities are increasing and expanding.

“This means jobs are increasing and taxes are increasing, reducing the import of goods from the country, which will reduce the use of foreign currency by increasing production in the country through industrial investment,” he said.

Speaking about the investment campaign that is taking place this year, he said that it aims to give special inspiration to Tanzanians to grab investment opportunities available in the country.

“This first month is special for raising awareness through the media. After that, it will continue throughout the country and conclude with the national investment conference that will be held in November this year,” said Prof Mkumbo.

He said the campaign will focus on seven areas, including providing investment education to Tanzanians to remove the concept that investments are for foreigners.

“We will also explain the procedures for registering investment projects through TIC, and we will explain the various tax and non-tax incentives offered to local and foreign investors when they register projects through the agency,” said Prof Mkumbo.

Giving an example of specific benefits that Tanzanians will get if they order investment facilities through TIC, he said that if you order a car with a cooling system for selling vegetables and fruits and you register through TIC, then you will get a 100 percent customs tax exemption.

“If you are building your hotel, internal equipment such as furniture is exempted by 100 percent. These opportunities are also available to Tanzanians,” he said.

He said the government aims to have 45 percent of all registered projects in the country owned by Tanzanians, 29 percent by foreign investors, and 26 percent by joint ventures.

“This means that about 73 percent or more of the projects registered in the country are owned by Tanzanians and joint ventures,” he said.

Contacted, a business and economic analyst, Oscar Mkude, said that when this goal is set, it is good to ensure that the projects that are registered are then implemented 100 percent.

“Some decades ago, a person who finished college could spend six months looking for a job, but now, up to nine years later, they are on the street, and these projects should show us the results,” said Mr Mkude.