TOP TEN REASONS WHY INVEST IN TANZANIA
1. STRATEGIC GEOGRAPHICAL LOCATION
The United Republic of Tanzania is located in Eastern Africa. It is bordered by Kenya and Uganda to the North, Rwanda, Burundi, and the Democratic Republic of Congo to the West, Zambia, Malawi, and Mozambique to the South and the Indian Ocean to the East. The port in Dar es Salaam serves as an important import-export route for neighboring land-locked countries. Tanzania has major ports along the Indian Ocean and those along the freshwater inland ports around Lakes Victoria, Tanganyika, and Nyasa. Tanzania provides access to the land-linked countries of Uganda, Burundi, Rwanda, Zambia, Malawi, DRC (Eastern part), and beyond. Tanzania has a central location in terms of its distance from major global markets. Tanzania is accessible through the Indian Ocean, which gives it trade links to Asia, which relies on Tanzania as the most efficient point for the transit of goods.
2. PEACE AND POLITICAL STABILITY
Tanzania is a Centre of economic and political stability in Sub-Saharan Africa. It is free of ideological confrontations and ethnic problems. The multi-party democracy adopted in 1992 has not disturbed the peaceful political climate of the country. The political scene is characterized by parliamentary democracy and public consensus on key social and economic priorities. Tanzania has strong institutions that promote peace and inclusive societies for sustainable development, provide access to justice for all, and build effective, accountable, and inclusive institutions at all levels.
3. WORLD CLASS TORURISM BRANDS
Tanzania is known for hosting among the best tourist attractions in the world. The tourism industry in Tanzania is one of the most highly developed in Africa. 38% of land in the country is protected or reserved for conservation-related purposes. The country has 22 national parks, 40 national reserves, and several marine parks. Tourist attractions include the plains of Serengeti National Park, Ngorongoro Conservation Crater, Arusha National Park, Mikumi National Park, Lake Manyara, Tarangire National Park, Selous Game Reserve, Nyerere National Park, Ruaha National Park, Gombe Stream National Park, Katavi National Park and Kilimanjaro National Park which include top climbing destinations in the world at Africa’s highest mountain and the world’s highest free standing mountain, Mount Kilimanjaro. On the offshore, lies the tropical islands of Zanzibar and Mafia, with marine parks home to whales, sharks, and coral reefs.
4. ABUNDANCE NATURAL RESOURCES
Tanzania is endowed with abundant natural resources including arable lend, minerals and natural gas. Tanzania is endowed with 44 million hectares of arable land with an estimated 29.4 million hectares suitable for irrigation. All these hectares offer ample opportunity for agriculture as well as other sectors.
The critical mineral deposits include Graphite, Rare Earth, Cobalt, Copper, Iron, Nobium, Lead, Lithium, Manganese, Diamond, Nickel, Titanium, Uranium, Vanadium, Tungsten, Lead, Bauxite, and other gaseous minerals such as helium. Tanzania is also endowed with precious metals including Tanzanite, the gemstone solely found in Tanzania. Over 18 million tons of graphite reserves (estimated to be the 5th largest reserve in the world) are present mostly in Lindi, Morogoro, and Tanga Regions. An estimated 1.52 million tons of nickel deposits have been discovered in the Kagera region and about 138 billion cubic feet of helium is at Lake Rukwa Basin. This is said to be the second-largest helium deposit in the world.
5. MARKET ACCESS
Tanzania offers a huge market opportunity with a population of 61,741,120 as per the National Population and Housing Census, 2022. Tanzania is among the rapidly growing economies in Africa. The country has high levels of domestic investment spending, making the market an important target destination for local and foreign products and services. In addition, Tanzania is part of two distinct market areas: the Southern Africa Development Community (SADC) with a population of 366 million, and the East African Community (EAC), with 304 million consumers. Tanzania applies agreements signed under the WTO multilateral trading system. Also, unilateral trade arrangements that accord preferential treatment to some export products from Tanzania like the African Growth and Opportunity Act (AGOA) allow qualifying products from Tanzania to access the American market at duty-free of 6000 items and quota-free. The African Continental Free Trade Area (AfCFTA) with a population of 1.39 billion where Tanzania has ratified the Treaty, offers a huge market for Tanzanian investors. Tanzania is also under Bilateral, Trade and Investment Agreements with various countries including China, India and members of the European Union.
6. STABLE FISCAL AND MONETARY REGIME
Tanzania’s economy has been resilient, growing by 5.1% in 2023 compared to 4.6% in 2022. Inflationary pressures have continued to be moderate. Inflation averaged 3.8 % in 2023, remaining within the annual target of 5.4 %. The government has demonstrated a commitment to narrowing the fiscal deficit through enhanced tax revenue collection and restrained spending. The fiscal deficit fell from 4.6% of GDP to 3.0%, aligning well with the fiscal consolidation target of 3% for FY2023/24. Tanzania has also narrowed its current account deficit to 3.9% in 2023, helped by an uptick in tourism receipts, going forward. GDP is projected to grow by 5.6% in 2024, with a long-run potential of around 6%, supported by an improving business environment and ongoing structural reforms (BOT,2023).
7. TRANSPARENT INVESTMENT LAWS
The pro-investment attitude of the Government is demonstrated by the innovative investment legislation, the increasing number of domestic and foreign direct investments in the country, and economic and structural reforms that have led to substantial progress in establishing a functioning market economy. Institutional support for priority investment projects is readily available from the Tanzania Investment and Special Economic Zones Authority. Tanzania has implemented tremendous reforms through a blueprint which comprehensively analyses the existing regulatory challenges, taking into account best practices internationally, and proposes robust principles and guidelines for reforms. It
8. INVESTMENT AND EXPORT-CREDIT GUARANTEES
The Tanzania Investment Act of 2025 provides guarantees against nationalization and expropriation of investor’s assets. Tanzania is also a signatory of several multilateral and bilateral agreements on the protection and promotion of foreign investments. Among other international agreements and memberships, Tanzania is a member of the Multilateral Investment Guarantee Agency (MIGA) and the International Centre for Settlement of Investment Disputes (ICSID). Tanzania is also a member of the African Insurance Guarantee. In addition, the BOT, on behalf of the Government, administers two Credit Guarantee Schemes (CGS) namely the Export Credit Guarantee Scheme (ECGS) and the Small and Medium Enterprises Credit Guarantee Scheme (SME-CGS).
9. STRONG PUBLIC-PRIVATE ENGAGEMENT
The presence of autonomous private sector organizations contributes to economic growth by increasing the productive capacity of the economy, creating jobs, and introducing technologies. To fully engage the private sector in national development issues, the Government established the Tanzania National Business Council (TNBC) to provide a forum between the public and private sector actors. This is achieved through Public and Private Dialogues (PPDs) under the leadership of the President of the United Republic of Tanzania, who serves as the Chairperson of the Council. The forum has been effective in coordinating business councils at district, regional, and national levels with a view of reaching a consensus and mutual understanding of strategic issues relating to the efficient management of resources and the promotion of socio-economic development in Tanzania (TNBC, 2023).
10. INFRASTRUCTURE DEVELOPMENT
Tanzania's government has embarked on the construction of massive infrastructure in key sectors such as work, transport, energy, water, and ICT. The current developments aim at facilitating affordable access to utility, data, and transportation services for investors and the general public. Infrastructure projects play a significant role as enablers of the investment climate in the country.