Investments in Tanzania up 74 percent to $787m in first quarter

Dar es Salaam. The value and number of investments being registered in the country is rising steadily as investment authorities capitalise on President Samia Suluhu Hassan’s pro-business approach to attract investors.

President Hassan’s government has been making efforts to improve Tanzania’s business environment since she come into office on March 19, 2021 following the death of her predecessor, Dr John Magufuli, two days earlier.

President Hassan’s pro-business approach has rekindled hope that investors’ money will be safe if they decide to invest in Tanzania.

Latest figures from the Tanzania Investment Centre (TIC) show that the number of investments registered during the first quarter of 2022 rose by 67 percent compared to the corresponding period last year.

“We registered 85 projects during the first quarter of this year compared 51 projects which were registered from January to March 2021,” the TIC executive director, Dr Maduhu Kazi, said yesterday.

The growth in the number of projects also translates into a rise in the value, as well as the number of jobs created.

While the 51 projects registered during the first quarter of 2021 were valued at $450.56 million, the 81 projects registered during the corresponding period in 2022 are valued at $787.4 million, translating into a 74 percent rise.

Briefing journalists on TIC’s operations during the third quarter of the 2021/22 financial year – which is also the first quarter of the 2022 calendar year – Dr Kazi also spoke about four projects which he described as key in strengthening the national economy and creating jobs.

These include one for conversion of vehicles from using either petrol or diesel to compressed natural gas; $113 million cement production projects; a vehicle assembly project, and an edible oil project.

The natural gas project will be implemented by Taqa Arabia Tanzania Limited, and is expected to create 160 jobs.

“The company will build 12 conversion centres in Dar es Salaam where private, passenger, and heavy duty vehicles will be converted to use natural gas. Two big centres will be completed between April and June, this year, and the project will have an annual production capacity of 700,000 kilogrammes,” he explained.

The $113 million cement projects are being implemented by Alotaib and Blak Bib Company Limited and Prime Cement.

“The projects are expected to produce 1,079,500 tonnes of cement annually, and are projected to create 1,097 direct jobs,” said Dr Kazi.

He said the $11 million vehicle assembly project will be implemented in partnership by Tanzania and Canada in Kigamboni, Dar es Salaam, where Howo commercial vehicles will be assembled. It is expected to yield 320 direct jobs, and will assemble 3,000 units a year.

The fourth project will involve processing of edible oil through a $42.68 million investment to be executed by Organo Africa.

With an annual edible oil production capacity of 182,000 tonnes, the project is expected to generate 700 direct jobs.

Dr Kazi said TIC has implemented a special programme that seeks to show investment opportunities to Tanzanians along the standard gauge railway.

On this particular aspect, he said so far feasibility studies of eight projects have been completed with the support of the United Nations Development Programme (UNDP).

The projects involve animal feed production, milk processing, preparation of base, land use plans and plots surveys, stone quarry, meat processing, livestock fattening, parking facilities, and pasture production.

Having participated in the Doha trade symposium, 25 investors visited Tanzania between March 23 and 29, Dr Kazi said.

“TIC also held tailor-made meetings with 24 companies between January and March this year and attended to 155 enquiries. We also met with met members of the Tanzanian diaspora in Egypt and in Scandinavian countries,” he said.

TIC also took part in investment and trade symposiums in Egypt, Kenya, Burundi, France, Belgium, Qatar, Turkey, South Africa and Algeria.

TIC’s one-stop facilitation centre has improved during the past few months to enable the facilitation of investors directly by officials from Immigration, Labour, Tanzania Revenue Authority, the Ministry of Land and the Business Registration and Licensing Agency.

Also available at TIC are officials from the National Identification Authority, National Environment Management Council, Tanzania Bureau of Standards, Tanzania Medicines and Medical Devices Authority and Occupational Safety and Health Authority.