Tanzania is becoming the centre of investment in East Africa as the surge in investment is evident in the recently concluded first quarter (Q1) of the 2024/2025 financial year (FY), where Tanzania registered 256 new projects, a significant increase from 137 projects in the same period last FY.
The revelation came from Mr. Gilead Teri, Executive Director of the Tanzania Investment Centre (TIC), as he briefed journalists in Dar es Salaam, when he revealed that the value of investments in Q1 reached 3.9 billion US dollars compared to 2.1 billion US dollars during the corresponding period of the 2023/2024 FY.
He mentioned that the New improved Investment Act of 2022 has played a pivotal role by providing various incentives, allowing investors to enjoy import duty exemptions for capital goods such as machinery, while capital goods benefit from a 75 per cent import duty relief.
He also mentioned that the Act lowered the capital threshold for domestic investors to 50,000 US dollars from 100,000 US dollars.
Tanzania Investment Centre (TIC) reported a substantial increase in investment during the last Financial Year of the fourth quarter (Q4, April to June), where 198 projects worth 1.6 billion US dollars were registered, creating over 96,000 jobs. And Dangote Cement was top in the list of Investments.
These investments represented a 53 per cent increase from the previous year’s Q4, which had 129 projects valued at 1 billion US dollars, generating 14,631 jobs.
The most promising as regards to sector performance is the manufacturing sector leading with an estimated capital of 637 million US dollars, followed by commercial building, human resources, transportation and tourism.
The Executive Director of TIC, Mr. Teri also said that Foreign Direct Investments (FDIs) constituted a notable share of overall approved investments, valued at 938 million US dollars, while domestic investments were about 12 per cent, amounting to 681 million US dollars.
Teri said that the consistent upward trends in project registrations, capital inflows and huge job creation are due to Tanzania's business-friendly environment, low-risk landscape and a beneficial tax system and regulatory framework.
In December 31, 2023, at the end of the year speech, the President of Tanzania Samia announced that TIC registered a total of 504 projects worth 5.6 billion US dollars in 2023, a 58 per cent increase from 292 projects in 2022, with 55 of those being expansion projects, which according to him speaks of the investor's confidence in Tanzania’s business climate.
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