Tanzania investment projects up more than 100 percent
Monday, March 13, 2023Summary
- A total of 41 projects were registered across the country in February 2023, according to data released by the Tanzania Investment Centre
Dar es Salaam. The government’s pro-business approach is sending a positive message to investors, who are increasingly choosing Tanzania as their preferred investment destination, with latest data showing a 128 percent rise in the number of registered projects.
Latest data released by the Tanzania Investment Centre (TIC) shows that in February 2023, a total of 41 projects were registered across the country.
This represents a 128 percent increase compared to 18 projects that were registered in February 2022.
Projects registered in February 2023 were valued at $339.2 million (over Sh780 billion) and are expected to create 7,370 jobs.
This is an increase of 347 percent compared to the capital of $75.9 million that was expected to be injected into the economy in February 2022.
Similarly, the 7,370 jobs expected to be created from the new projects represent an increase of 493 percent on those created by projects registered in February 2022.
“Apart from devoting considerable attention to supporting investors, the administration of President Samia Suluhu Hassan has streamlined licences and permits procedures through implementing the Blueprint for Regulatory Reforms,” TIC executive director Gilead Teri says in TIC’s Monthly Investment Bulletin for February 2023.
He says during the past few months, the government has also increased the use of automation in compliance processes.
It has also rationalised institutions to reduce overlaps and simplified the process for acquisition of land for investment.
“The government has also undertaken real-time dialogue to address arising issues, and enacted a New Investment Act in 2022 to replace a long-standing one from 1997,” Mr Teri says.
In an effort to further transform Tanzania’s investment landscape, President Hassan recently moved the investment docket from the Ministry of Industry and Trade and placed it under her own watch in the President’s Office.
According to the trend, there has been an increase in both the number of projects and the value or capital expected to be invested.
When compared to 18 projects registered in January 2023, the 41 projects account for an increase of 86 percent.
Similarly, the value of capital expected to be invested has also increase by 413 percent from $66 million recorded in January to $339 million registered in February this year.
Transportation continued to be the leading sector in terms of capital followed by agriculture, manufacturing, tourism and commercial buildings.
With projects worth $156.17 million in February 2023, Transportation emerged the leading sector in the attraction of investment.
It accounted for 46 percent of the total value of projects registered in February, 2023.
With $90.20 million, agriculture came second, accounting for 27 percent while manufacturing garnered $53.68 million, representing 15.8 percent.
Tourism projects were valued at $29.02 million while commercial buildings brought in $10.15 million, representing nine percent and three percent respectively.
On the other hand, manufacturing, tourism and agriculture emerged the top three leading sectors in attracting foreign direct investments (FDIs).
However, transportation, agriculture and manufacturing sectors came the top three leading sectors in attracting domestic direct investments (DDIs).
“Likewise, the majority of the jobs are expected to be created in agriculture, transportation and manufacturing,” reads part of the Bulletin.
The major sources of investments in Tanzania in February 2023 were China, the Democratic Republic of Congo, the United Kingdom, Malawi and Kenya.
Furthermore, the bulletin shows that 34 percent of the projects registered in February 2023 are fully owned by Tanzanians, while 42 percent and 24 percent are respectively owned by foreigners and joint ventures.
Furthermore, registered projects in February 2023 have been indicated to be concentrated in Dar es Salaam and Coast regions.
“The two regions have attracted 28 projects out of the 41 projects registered in February 2023,” says the TIC bulletin.
“The 28 projects are expected to invest $310.9 million which is equivalent to 92 percent of the total investment.”
Furthermore, the TIC bulletin shows that the Export Processing Zone Authority (EPZA) which is an autonomous government agency that oversee Export Processing Zones (EPZ) and the Special Economic Zones (SEZ) Program registered six (6) investment projects in the month of review.
Furthermore, the document says that Mergers and acquisitions (M&A) are an important signal of growth, stability and potential of any economy.
The bulletin shows that investors are increasingly aware that M&A are one of the quickest ways to expand their resources, increase market share and raise capital which help them to modernise operations, increase efficiency and competitiveness.
“During the month of February 2023, four deals were recorded valued $24.34 million in the sectors of agriculture, manufacturing and mining,” reads the document.
Commenting on the development, a senior economist, Prof Samuel Wangwe, said President Hassan’s focus has been on opening the country and welcoming investors.
Secondly, investment is facilitated much better now than before, especially in the access of work permits, immigration and putting emphasis on the business online registration.
Tanzania investment projects up more than 100 percent | The Citizen“However, the challenge is that government executives are supposed to change and provide investors with what they expect. Otherwise, investors will be frustrated,” he said over the phone.
