Summary
President Samia Suluhu Hassan’s pro-business approach has restored domestic and foreign investors’ trust and confidence
Dar es Salaam. The ongoing efforts to improve Tanzania’s business climate have had a positive outcome on the attraction of investments, with latest data showing a 173 percent rise in the amount invested in the country during the past two years.
Data from Tanzania Investment Centre (TIC) show that the amount invested in the country rose to $8.64 billion (about Sh19.87 trillion) during the past two years of President Samia Suluhu Hassan’s presidency, from $3.16 billion (about Sh7.27 trillion) that was registered two years prior to her coming to power.
This is attributed to President Samia Suluhu Hassan’s pro-business approach that has restored both domestic and foreign investors’ trust and confidence.
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Between March 2021 and February 2023, the number of registered projects, of which the money was injected into, jumped from 455 to 575, which is equivalent to 26 percent increase.
TIC said in its report availed to the media yesterday that, of the projects registered under the current regime, 32 percent are owned by Tanzanians, 41 percent foreigners and 27 percent joint venture between local and foreign investors.
As a result of the investment under the period of review, jobs that were created climbed from 61,900 to 87,187.
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The sectors that attracted more investments in the last two years are industrial production by 49.43 percent, construction of commercial buildings 17.51 percent and transportation 11.07 percent.
“Improvement in the business environment through the blueprint for regulatory reforms, is paying off, and this could be attested to the increase in the investments in the country,” reads a part of the report.
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The report further linked the high performance with President Hassan’s efforts in marketing Tanzania to the rest of the world.
The report further connects the positive performance with the country’s participation in various international conferences.
In the same vein, the report highlighted that a 26-percent increase in investment by local investors was attributed to incentives offered to domestic investors.
“The Centre (TIC) in collaboration with Regional Commissioners’ offices and embassies has continued to encourage both domestic and foreign investment,” a part of the report said.
“Despite the Covid-19 pandemic, investors kept on flowing into the country, thanks to a friendly business environment and an enabling infrastructure like roads, railways, ports, airports and power,” the report stated.
Commenting on the report the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA) executive director Nebart Mwapwele said the increase in the value of registered projects is a positive move that will fuel the growth of the country’s economy.
“This will stimulate money circulation and boost value addition in locally produced products and that is why various countries are doing whatever they can to attract investments,” Mr Mwapwele told The Citizen by phone.
Tanzania Private Sector Foundation (TPSF) acting chief executive officer Raphael Maganga also said the promising performance was triggered by the improvement in the Investment Act and policies.
“It means a lot to the private sector and the country at large,” said Mr Maganga, adding: “this positive development has a significant multiplier effect.”
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