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| Tanzania Investment Centre Executive Director, Gilead Teri. |
Dar es Salaam: Tanzania’s economic diplomacy and improved business environment have continued to attract investments, with the recently concluded first quarter covering July to September witnessing registration of 256 new projects.
The number of newly registered projects shows an increase of 100 projects compared to the 137 recorded in the corresponding period last Financial Year.
Tanzania Investment Centre (TIC) Executive Director, Mr. Gilead Teri told reporters yesterday in Dar es Salaam that the value of investments in the Q1 reached 3.9 billion US dollar (about 11tri/-) compared to 2.1 billion US dollar (about 5.7tri/-) in the corresponding period of the 2023/2024 FY.
He attributed the success with strong commitment of the government under President Samia Suluhu Hassan in attracting and welcoming domestic and foreign investors into the country.
“President Samia, through her economic diplomacy and international promotion of the country, has prioritised the investment sector as a key driver in boosting the county’s economic growth and reducing poverty,” Mr. Teri said.
“As a result, Tanzania has emerged as an attractive destination for investors from all corners of the globe,” he added.
More significantly, Mr. Teri said the government has adopted the new Investment Act, 2022 which offers more favourable conditions for investors in ensuring that they get sound returns from their investments.
The Investment Act, 2022 gives fiscal incentives to the expansion and rehabilitation projects from which investors can enjoy import duty-free for capital goods such as machines and plants, while the deemed capital good can access the import duty relief by 75 per cent while enjoying non-fiscal incentives under the TIC.
The Act also reduced investors’ capital threshold for domestic investors to 50,000 US dollar (133m/-) from 100,000 US dollar (267m/-).
Furthermore, he said the remarkable feat in attracting new investments is also due to the collaborative efforts involving Tanzania’s embassies across the world, TIC and other public entities which together have been creating visibility regarding economic opportunities available to all investors and their tailored incentives.
In another development, the TIC boss noted a substantial increase of investment in Q4 (covering April to June) of the last FY (2023/2024) whereby the centre registered 198 projects worth 1.6 billion US dollar (about 4.3tri/-) which are expected to generate over 96,000 new jobs.
He said in Q4 of last FY, the number of new projects registered was up by 53 per compared to the same period in 2022/2023, when only 129 projects valued 1 billion US dollar (about 2.7tri/-) were registered. He said the projects created a total of 14,631 jobs in the country.
According to TIC, in the Q4, the capital investment saw a growth of over 60 per cent while job creation surged by an impressive 558 per cent.
In the Q4, Foreign Direct Investment (FDIs) constituted a notable share of the overall approved investments valued at 938 million US dollar (about 2.6tri/-), read the recent TIC’s Quarterly Bulletin.
Conversely, the Domestic Investments (DIs) made up about 12 per cent of the total approved investments, amounting to 681 million US dollar (about 1.9tri/-).
In that regard, Mr. Teri said the country’s consistent upward trends in registering projects, capital inflows and job creation echo the growing business confidence in Tanzania and the positive impact of TIC’s efforts towards facilitating investments.
Detailing investment registration by sector in Q4, he said the manufacturing sector surpassed other sectors by attracting an estimated capital of 637 million US dollar (1.7tri/-).
He said the manufacturing sector was followed by other high-performing sectors including commercial building, human resources, transportation and tourism.
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