Tanzania may be best known for its impressive tourist’s destinations and colourful history, but the largest East African country is also popular among investors. The country is widely considered to be a major investment destination in the East African region.
Investors seeking to invest into the region need to understand characteristics of Tanzania as the largest country in the region both by population and size.
Hon. Dr. John Pombe Magufuli, President of the United Republic of Tanzania has put more emphasis on industrialization as the main agenda for his government. He stated categorically that his government focuses on building an industry driven economy and creates an environment for private sector growth and conducive for investments and businesses.
Tanzania Investment Centre has been undertaking intensive campaigns on promoting the establishment of new industries. Both local and foreign companies have shown great support to the government initiatives in the establishment of new industries.
For Tanzania to achieve industry driven economy, investors are cordially invited to invest in manufacturing sector. It is through industries that Tanzania will be capable of exporting finished goods as opposed to raw materials. The sector will also create employment, expand markets for agriculture products, and generate revenue to investors and government.
According to Word Economic Outlook report 2016. Tanzania is among the fastest growing economies in the world ranking 9th out of 190. As per 2017 World Investment Report, Tanzania continues to perform strongly against partner states in the East African region.
Tanzania is currently ranked among top ten most attractive business locations in Africa as per Rand Merchant Bank (RMB) statistics of 2016.
UNCTAD statistics also reveal that in 2016, Tanzania attracted US$1.35 billion in FDI surpassing its EAC partners, Uganda, Rwanda, Kenya and Burundi which only received US$ 541 million, US$ 410 million, US$ 394 million and US$ 0.1 million of FDI respectively for the same period. Thus making Tanzania the largest recipient of FDI in the region.