Tanzania aims for 1,500 new projects, seeks top 5 spot in African Investment ranking

Dar es Salaam . Tanzania is setting an ambitious goal to attract 1,500 new investment projects worth $15 billion by December 2025, with the aim of becoming one of the top five investment destinations in Africa.

Currently, the country ranks among the best in Africa for service delivery to investors. The targeted sectors for this initiative include manufacturing, agriculture, transport, clean energy, tourism, mining, and services.

As of December 2024, the Tanzania Investment Centre (TIC) has registered 901 projects worth $9.31 billion, indicating that the target is achievable if the current trend continues. This marks a significant increase from the 526 projects registered during the same period in 2023.

The new target represents a $5.69 billion increase in project registrations within a year, translating to a remarkable 71.3 percent growth. In 2023, registered projects attracted $5.72 billion, primarily driven by policy reforms, improved infrastructure, and strategic government initiatives to draw foreign direct investment.

The investments secured in 2024 are expected to create 212,293 jobs, a rise from the 137,010 jobs generated by projects in 2023.

During a briefing with editors from various media outlets on January 10, 2025, Prof. Kitila Mkumbo, Minister of State in the President’s Office for Planning and Investment, emphasized that registering 1,500 investment projects is a top priority for TIC this year.

“This increase will position Tanzania among the top five investment destinations in Africa in terms of capital inflow. Tanzania is already recognised for its favourable service delivery to investors,” Prof. Mkumbo stated.

He highlighted that one of the government’s primary objectives for 2025 is to boost domestic investment, targeting 50 percent of all registered projects to be owned by Tanzanians.

“We are focusing on collaborating with various government agencies to attract local investors, particularly small and growing businesses,” he added.

The government also plans to engage the Tanzanian diaspora to promote investment through a structured framework facilitated by TIC in collaboration with other government institutions.

New Investment Law on the horizon

This year, Prof Mkumbo indicated that the National Assembly is expected to enact a new Investment Bill that will merge TIC with the Export Processing Zones Authority (EPZA).

“The bill was presented to Parliament in 2024 and is currently under review by the Parliamentary Standing Committee,” he noted.

Additionally, the government will launch the second phase of the Business and Investment Environment Improvement Plan (MKUMBI II), following an assessment of the first phase which highlighted achievements in enhancing the business environment.

MKUMBI II aims to address remaining challenges by improving regulatory frameworks, streamlining licensing processes, and upgrading infrastructure to support investors.

Tanzania also plans to introduce a system to evaluate the efforts of local government authorities in improving the business environment and facilitating investments. This system will incorporate a comprehensive set of metrics, including the number of investment projects attracted, the efficiency of business registration processes, the development of necessary infrastructure, and the provision of investor support services.

Authorities will be assessed based on their ability to reduce bureaucratic hurdles and improve the overall ease of doing business in their regions.

The government also intends to strengthen regional secretariats to enhance their capacity to facilitate investments at both regional and district levels.

In 2024, five regions led in registering investment projects, with the number of attracted ventures as follows: Dar es Salaam (356), Coast (166), Arusha (64), and Dodoma (47). Together, these regions accounted for 70.3 percent (633 projects) of all registered investments.

The manufacturing sector topped the list, with 377 registered projects, making up 41.8 percent of the total. This sector's leading position can be attributed to favourable government policies, improved infrastructure, and the availability of raw materials.

Additionally, the focus on industrialisation within Tanzania's economic development plans has made manufacturing increasingly attractive to both local and foreign investors.

The transport sector followed with 138 projects (15.3 percent), real estate with 91 projects (10.1 percent), tourism with 76 projects (8.4 percent), and agriculture with 66 projects (7.3 percent).

These five sectors alone attracted $6.071 billion in capital, representing 65.2 percent of the total investment capital secured in 2024.

“We can declare 2024 as the best year for Tanzania’s investment sector, considering that TIC registered more projects (901) than in any other year since the agency began recording data,” he said.