Why American investors are showing interest in Tanzania

US Ambassador to Tanzania Donald J. Wright (second right) at the opening of US Business Fact- Finding Mission to Mainland Tanzania and Zanzibar in Dar es Salaam. Second left is chief executive of American Chamber of Commerce Kenya Maxwell Okello. PHOTO | COURTESY

What you need to know:

  • A delegation of 19 US companies who jetted in to the country to explore investment opportunities in various sectors.

Dar es Salaam. The United States investors’ interest in setting shop in Tanzania is gaining momentum, thanks in part to what is being referred to as a conducive business environment created by the current government.

American Chamber of Commerce in Tanzania (AmCham-TZ) chairman Geofrey Mchangila said yesterday following a delegation of 19 US companies who jetted in to the country to explore investment opportunities in various sectors.

Mr Mchangila said during the opening of the US Business fact-finding mission in Mainland and Zanzibar that the investors had shown interest in agriculture, Information and Communications Technology (ICT), energy and productive sectors.

The investors were in Dar es Salaam yesterday, and have left for Zanzibar today for the same purpose, Mr Mchangila who doubles as the Citibank Tanzania chief executive officer said.

“The US companies want to invest in alternative energy sources,” he said as he explained the aspect of their interests in the energy sector.

US ambassador to Tanzania Donald Wright said with President Samia Suluhu Hassan’s leadership advocating for conducive business environment, the US investors were seeing a bright future in the country. He said in the past, it was a challenge to do business in Tanzania, citing the difficulties in securing work and residential permits.

“We are grateful that since President Samia took power, things are now improving and our investors are encouraged to invest in Tanzania.

“I am glad to see Tanzania’s goods on US shelves and vice versa. This is a reflection of our good bilateral ties through trade and investments,” he said.

In his opening remarks, Investment, Industry and Trade deputy minister Exaud Kigahe said the stable cooperation between the two countries led to a meaningful trade partnership.

However, he noted that business has been fluctuating in the favour of the US, pointing out that as of June 2022, the US exported $27.1 million (about Sh62.3 billion) and imported $7.36 million (about Sh16.9 billion) from Tanzania.

“This data is a wake-up call for the two countries to do something so that we can narrow the Tanzania-US trade deficit,” said Mr Kigahe.

For this to happen, he called for more US investors to come and set up their factories in Tanzania to enhance value addition and hence more exports of finished goods.

“We are very much encouraged by the approach of several American companies which have shown interest and plans to develop their production base here in Tanzania,” stressed the deputy minister.

According to him, the move will promote value addition, transfer of skills and technology as well as creating a stronger partnership between Tanzania and American business people.

He said between 1997 and August 2022, a total of 263 US investment projects worth $4.77 billion (about Sh10.97 trillion) were registered by the Tanzania Investment Centre (TIC), which were expected to create some 54,310 jobs.

Cementing, he said, five US-based companies have invested a total of $31.51 million ((72.5 billion) under the Export Processing Zone (EPZ), in meat processing, agro-processing and solar energy, creating direct employment of 866 people.

In additional remarks, ambassador Wright said: “One of our Mission’s primary goals is to bring more US investors.

“US firms bring ingenuity, know-how, and capital, but also a desire to train Tanzanians to manage and run their local operations. The jobs they develop in Tanzania are not just line-level employees, but highly skilled technology and management professionals.”