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Tanzania Best Investment Destination in East Africa

DAR ES SALAAM: TANZANIA is the most preferred investment destination in East Africa for investors eyeing to explore the region in the next two years, according to survey conducted by KPMG advisory firm.

The survey shows 15 per cent of respondents on 150 C-suite level and senior executives in the region say they would consider investing in Tanzania behind South Africa (50 per cent) and Nigeria (30 per cent.)

It shows respondents who said they would consider investing in Kenya were 14 per cent, Mauritius (14 per cent), Zambia (11 per cent) Uganda (10 per cent), Mozambique (6 per cent) and Zimbabwe (6 per cent).

Analysis by KPMG shows that the Sub-Saharan Africa (SSA) region reported mergers and acquisitions worth 19.2 billion US dollars (about 48tri/-) last year, from a reported 297 deals.

Tanzania is one of the most preferred destinations for foreign investment in Africa and counts among the 10 biggest recipients of FDI in Africa.

According to UNCTAD’s 2022 World Investment Report, the flow of foreign direct investment to Tanzania was 1,190.5 million US dollars in 2021 compared with USD 943.8 million in 2020.

Analysts credit success to attracting FDIs to reforms spearheaded by President Samia Suluhu Hassan since she assumed power.

Tanzania recorded significant increase of the projects in the fourth quarter of the previous financial year.

The number of projects recorded in the fourth quarter of the 2022/2023 financial year nearly doubled from 68 projects worth 478 million US dollars to 129 projects worth 1.009 billion US dollars.

Among the efforts undertaken by the government include aggressive promotion of investment opportunities in Tanzania and implementation of the blueprint for regulatory reforms to improve business environment.

The blueprint provides the government’s main framework for enabling a holistic review of the Business Enabling Environment (BEE) in order to improve the business climate in Tanzania including in the industrial sector.

By recognising that investment is a cross-cutting issue, the president formed a special Ministry of Planning and Investment, which is plays a significant role in attracting more investments.

On Tuesday, President Samia reached out to Tanzania and Zambia next generation of leaders, including those in the private sector, to fight for economic independence to realise vibrant development of their countries.

Dr Samia made the call while gracing the Tanzania-Zambia Business Forum which convened in Zambia as part of her state visit in Zambia at the invitation of her counterpart, President Hakainde Hichilema.

She invited the Zambia business community to come to Tanzania in good numbers to trade, form collaboration and partnerships so that the two countries can elevate the level of trade volumes.

Dr Samia observed that Tanzania was fast growing, whereby the size of the market and supportive infrastructure are a key aspect that continues to attract investment to its growth.

In early October this year, President Samia urged Indian investors to come to Tanzania, promising a business-friendly environment and progressive economic reforms. She said this during Tanzania- India Business and Investment Forum in the capital New Delhi.

The Head of State said Tanzania is implementing Africa’s most ambitious and progressive economic reforms, leveraging the private sector and investments as catalysts for economic growth.

Tanzania has also streamlined its business regulations, making it easy for investors to comply and provides robust incentive packages to investors.

“We have moved from registering 2.0 billion US dollars of FDI in 2020 to 5.0 billion US dollars in the year ending June 2023. We target to reach 15 billion US dollars per year by the end of 2025,” she said.

Since 1997 to date, Tanzania has reached a stock of over 3.87 billion US dollars of investments from India, with a total of 675 projects and over 61,000 jobs delivered, making India one of the top five investors in India.

President Samia said investment promotion agencies in Tanzania Mainland and Zanzibar target to attract at least 3 billion US dollars of foreign direct investments (FDI) from India per year by 2025.

In the UAE during the Dubai Expo 2022, President Samia witnessed the signing of 36 Memorandum of Understanding (MoUs) worth 7.49 billion US dollars (about 17.8tri/-), between Tanzania and UAE investors. The signed pacts aim at creating 204,575 jobs by the year 2026.

While in China in 2022, President Samia and her Chinese counterpart Xi Jinping witnessed the signing of 15 agreements to improve bilateral trade relations, transport and expand the market for agricultural products.

Other countries that Dr Samia has visited include Mozambique, France, Belgium, and United Arab Emirates (UAE), United States (US) and Uganda.

The list also includes Ghana, Oman, Senegal, the Democratic Republic of Congo (DRC), Kenya, United Kingdom and Egypt.

Source : Daily News