Dar es Salaam. Tanzania recorded robust growth in investment flows during the third quarter of the 2024/25 fiscal year (January to March 2025), registering projects worth $2.16 billion. The growth was largely driven by a rise in Foreign Direct Investment (FDI).
Capital inflows from key global and regional partners—including China, the United Arab Emirates, Switzerland, Burundi, and Rwanda—contributed to a notable 46.72 percent increase in total investment compared to the same period in the previous fiscal year, when registered capital amounted to $1.47 billion.
According to the Tanzania Investment Centre’s (TIC) quarterly investment report, FDIs accounted for a dominant 63 percent of the approved capital, valued at $1.36 billion.
This figure marks a substantial 77.06 percent increase from the FDI registered in the third quarter of 2023/24, underscoring a strong upward trajectory in foreign capital inflows.
China emerged as the leading source of FDI, contributing $389.16 million, followed by the United Arab Emirates ($185.54 million), Switzerland ($164.02 million), Burundi ($115.75 million), and Rwanda ($114.22 million).
Domestic investments, although comprising a smaller share of 27 percent, still amounted to a significant $795.12 million. This represents a healthy year-on-year increase of 13.28 percent, reflecting sustained local investor confidence.
TIC Executive Director Gilead Teri said that during Q1 2025, the Centre intensified its focus on project monitoring and investor aftercare, following the record-setting achievements of 2024.
That year, TIC registered the highest number of projects in its history—901 projects with a total capital value of $9.31 billion.
“This quarter has been a significant period of continued improvement,” he said.
A sectoral breakdown of the attracted capital revealed strong performance across several areas.
Manufacturing led all sectors with $662.59 million in capital, up from $454.23 million in the same period last year.
Agriculture recorded an exceptional surge, climbing from $40.85 million to $522.72 million, positioning it as the second-largest sector by investment value.
The energy sector also saw substantial growth, with capital inflows rising from $57.75 million to $373.19 million, indicating increasing investor interest.
In addition, the Economic Infrastructure sector, which recorded no projects in the same period last year, registered nine new projects worth $129.98 million.
Similarly, investment in the Human Resources sector (Health and Education) increased from $11.8 million to $58.43 million, and the number of projects rose from two to five.
Mr Teri also highlighted 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 13 February 2025, through the merger of TIC and the Export Processing Zones Authority (EPZA).
“The Act aims to stimulate both local and foreign investment by introducing key incentives, establishing a comprehensive land bank of public and registered private land, and digitising service delivery through an enhanced One Stop Facilitation Centre,” he said.
He added that the legislation sets capital thresholds for attaining strategic investment status—a move expected to significantly improve the investment climate and accelerate economic development.
In terms of ownership, foreign-owned projects led with 94 registrations, while locally owned projects accounted for 66. Joint ventures also showed encouraging progress, rising by 62.5 percent to 39 projects, up from 24 in the third quarter of 2023/24.
Geographical distribution of projects showed a strong concentration in the Dar es Salaam Region, which attracted 73 projects. The Coast Region followed with 48 projects, while Arusha recorded 16.
However, not all sectors recorded growth. Capital in the transportation sector dropped markedly from $479.55 million to $203.81 million. Similarly, commercial building investments fell from $250.19 million to $88.20 million, and the tourism sector declined from $162.88 million to $46.31 million.
