Where the money comes from as Tanzania investment hits $11bn

The capital flow reached $10.95 billion this year, up from $9.3 billion in 2025 and $3.8 billion in 2021, Prof Mkumbo said, adding that the projects are expected to create more than 161,600 jobs.

“The continued increase in registered projects and capital is a clear indication that Tanzania remains a safe and attractive investment destination in the region,” Prof Mkumbo said, citing improved infrastructure, predictable policies and sustained political stability as key drivers of investor confidence.

“The projects span multiple sectors including manufacturing, construction, energy, transport, agribusiness, and services,” he said during a ceremony to hand over investment certificates to six investors at the Bagamoyo Eco-Maritime City Special Economic Zone (BEMC SEZ).

Top source countries

Data from the Tanzania Investment and Special Economic Zones Authority (TISEZA) show that China emerged as the largest source of investment capital in 2025, accounting for $3.12 billion and more than 81,600 jobs. It was followed by the United Arab Emirates with $882.5 million, and the United Kingdom with $824.1 million.

Other major sources of investment were the Cayman Islands ($395 million), India ($328.5 million), Mauritius ($193.5 million), Switzerland ($183.8 million), Singapore ($152.5 million), Kenya ($144.3 million) and France ($130.8 million) .

The minister said the diversity of capital sources reflected Tanzania’s broad-based appeal to investors from Asia, Europe, the Middle East and Africa, supported by fiscal and non-fiscal incentives as well as streamlined approval processes.

According to him, most projects were registered in manufacturing, building construction and transport, sectors the government considers critical for industrialisation, job creation and value addition.

Of the 915 projects registered in 2025, 442 were foreign-owned, 284 locally owned and 182 joint ventures between Tanzanians and foreign investors.

Prof Mkumbo said the government was prioritising investments with strong forward and backward linkages, export potential and the ability to generate foreign exchange, in line with the National Development Vision 2050.

Following the growth, Tanzania has entered the top 10 investment destinations in Africa, moving up three positions from 12th in 2024 to 9th in 2025, according to the RMB Africa Investment Report. “These achievements have also made Tanzania the leading country in East Africa for a favorable investment environment,” Prof Mkumbo added.

On regional investment distribution, Dar es Salaam leads, with 334 projects creating 33,707 jobs, solidifying its role as a commercial and financial hub attracting both local and international companies. Pwani Region ranks second with 208 projects, followed by Arusha (67 projects), Dodoma (37), and Mwanza (35).

Dar es Salaam remained the leading investment destination, accounting for 334 projects worth $3.21 billion. It was followed by the Coast Region (Pwani) with investments valued at $2.97 billion, and Kagera with $945.4 million.

Other top regions included Arusha ($723.4 million), Mtwara ($703 million), Kilimanjaro ($369.4 million), Dodoma ($319 million), Mwanza ($286 million) and Morogoro ($234.9 million) .

On the handover of investment plots, Tiseza CEO Gilead Teri explained that the signed agreements result from extensive consultations involving government, private sector, and professional institutions. Investors are provided with designated plots for their projects, with full compliance to Tanzanian laws and regulations.

Several strategic projects are slated for implementation at the Bagamoyo Eco-Maritime City SEZ, aiming to boost industrial production, exports, technology transfer, and employment, particularly for youth.

Canary Industries Limited: Investing Sh1 billion to establish a modern food packaging factory on one acre, enhancing local production and export to Rwanda and DRC.

Grosso Engineering and Fabricators Limited is investing Sh12.8 billion to create over 100 permanent jobs and 200 temporary jobs, strengthening engineering and manufacturing.

Jaribu Cashews Production Limited is investing Sh12.32 billion to process cashew, coffee, and spices for international markets, creating over 140 jobs.

Novara Global Steel Limited is investing Sh19.71 billion in steel production, with 80 percent of output aimed at exports, creating over 100 jobs.

Shah Steel Global: Planning a Sh12.3 billion ferroalloys plant, expected to generate 200+ jobs and up to Sh105.96 billion annually through exports.

MCGA Auto Limited is investing $50 million to assemble various types of vehicles, creating 500–1,000 direct jobs and over 3,500 indirect jobs, reducing vehicle imports and boosting government revenue.

Mr Teri emphasised that these projects will enhance domestic value chains, technology transfer, youth employment, government revenue, and socio-economic development in Bagamoyo and surrounding areas. “Additionally, these investments will strengthen Tanzania’s position as a production and trade hub in East and Central Africa,” he said.

Opportunities and attractions

Tanzania currently has 34 SEZs and EPZs, the minister said, adding that the strategic zones are in Bagamoyo, Kwala, Nala, Buzwagi and the Benjamin William Mkapa SEZ being promoted to anchor industrial growth .

Key investment opportunities highlighted in the statement include agro-processing, edible oil production, livestock, fisheries and aquaculture, manufacturing of ICT equipment, automotive assembly, renewable energy, mining value addition and logistics .

Looking ahead, Prof Mkumbo said the government targets attracting at least $15 billion in investment capital and registering 1,500 projects in the 2025/26 financial year.

“We call upon all Tanzanians to continue protecting and improving the investment climate, because strong investment is essential for job creation, technology transfer and sustainable economic growth,” he said.

The government is also set to launch a National Investment Forum from January 2026 to strengthen engagement with investors, address bottlenecks and further enhance Tanzania’s competitiveness as an investment destination