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INVESTMENT & TRADE OPPORTUNITIES IN TANZANIA
Tanzania is one of the most rapid growing countries in Africa.
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Number of multinationals: 150
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Population: 61.4 million
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Area: 947,300 km²
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GDP: 62,4 billion USD $
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Economic growth: 7%
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Key sectors: Agriculture, Mining, Tourism, Manufacturing, Agro-processing, Pharmaceuticals, Real Estate, Livestock and Fishing
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Export products: Gold, Coconuts, Cashew, Brazil nuts, Copper, Dried Legumes and Precious metal ore
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Import products: Wheat, Packaged medicaments, Machinery, Transport equipment, Palm oil, Petroleum and Chemical products
ECONOMY OF TANZANIA
Tanzania is one of 10 fastest growing economies in Africa. For the past 10 years, the country’s economy grew at an average of 7 percent. The IMF projects a GDP growth for Tanzania of +5.1% in 2022, and 6.0% in 2026. The WB, in its 17th Tanzania Economic Update (TEU), estimates a real GDP growth rate of 4.5–5.5% in 2022 and 6% over the medium term as exports and domestic demand recover from the Covid-19 pandemic.
In July 2020, Tanzania was officially promoted to a lower-middle-income country by the World Bank. These achievements can be attributed to political and economic stability, good and predictable policies as well as peace and tranquility.
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Investment climate
The United Republic of Tanzania has sustained 6-7 percent Gross Domestic Product (GDP) growth since the late 1990s due to a relatively stable political environment, reasonable macro-economic policies, structural reforms, resiliency from external shocks, and debt relief. In November 2020, President Magufuli announced that in the next five years its government will put great emphasis on key economic sectors, especially agriculture, livestock, fisheries, industry, mining, trade, and tourism.
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Furthermore opportunities lie in infrastructure and due to the discovery of large gas fields there are also opportunities in the energy sector. Especially Tanzania’s rapidly expanding tourism sector continues to be a source of great economic promise. The Mount Kilimanjaro, the highest peak in Africa, serves as a major tourist attraction, as does the country’s network of national parks, reserves, and conservation areas, which together span some one-fourth of the country. Tanzania’s beaches and coral reefs are also attractive to tourists.
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Challenges the Tanzanian investment climate has to overcome is that it remains difficult doing business in Tanzania despite good (growth) prospects. This is mainly due to arbitrary claims of the Tanzanian Tax Authority, coupled with heavy fines. There is no “equal level-playing-field”. Foreign and visible companies seem to be particularly targeted by the authorities.
Despite these challenges compared to its many neighbouring countries Tanzania remains a politically stable and peaceful country, as well as a regional leader, including in the East African Community (EAC).
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Doing business in Tanzania
Are you interested to learn more about the countries economy, investment climate and business opportunities in Tanzania?
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Register now and join one of our online webinars about the latest business opportunities in Tanzania.
INVESTMENT OPPORTUNITIES
IN TANZANIA
The total value of foreign investments in Tanzania in the period March-November 2021 reached USD 4.144 billion. This is 300% more than the USD 1.013 billion in FDIs in 2020. Investments were drawn mostly to the mining sector, the oil and gas industry, and the primary agricultural products sector (coffee, cashew nuts, and tobacco). The top five providers of FDI into Tanzania are South Africa, the UK, Kenya, Canada, and China.
On behalf of our members TAIC is continuously capturing and monitoring the most interesting investment opportunities in Tanzania. Our team of business consultants on the ground is well connected among key business leaders and policy makers working closely together with the Tanzania Investment Centre (TIC). As a member of TAIC, you can opt in to receive our newsletter highlighting the most interesting Investment opportunities in Tanzania.
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TRADE OPPORTUNITIES
In 2020 Tanzania was the number 75 economy in the world in terms of GDP (current US$), the number 107 in total exports and the number 87 in total imports.
Exports
The top exports of Tanzania are Gold ($2.36B), Coconuts, Brazil Nuts, and Cashews ($386M), Raw Copper ($345M), Precious Metal Ore ($343M), and Dried Legumes ($208M), exporting mostly to India ($891M), United Arab Emirates ($866M), Switzerland ($796M), Uganda ($734M), and China ($388M).
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Imports
The top imports of Tanzania are Refined Copper ($1.55B), Refined Petroleum ($730M), Packaged Medicaments ($368M), Palm Oil ($302M), and Wheat ($219M), importing mostly from China ($4.17B), Democratic Republic of the Congo ($1.67B), India ($1.41B), United Arab Emirates ($788M), and South Africa ($336M).
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Do you want to expand your business in Tanzania and profit from the economic growth in the next years? Join one of our online webinars and learn more about the latest trade and business opportunities in Tanzania.
INVEST IN THE MOST INNOVATIVE & SCALABLE COMPANIES
Tanzania has a growing number of innovative and scalable companies with a high growth potential. In order to grow foreign capital is needed. TAIC is the matchmaking platform that connects founders, investors and enterprises. Every quarter we publish a executive report with a shortlist of the most innovative & scalable companies of Tanzania that are ready for foreign investment.
Do you want to receive our newsletter with a shortlist of the most investable ventures from Tanzania?
HOW TO INVEST IN TANZANIA
A foreign investor in Tanzania is required to obtain an investment licence. As a foreign investors it is possible to get several benefits that can be negotiated by or granted to the holder of an investment certificate, such as:
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The recognition of private property and protection against any non-commercial risks. Tanzania is an active member of the World Bank Foreign Investment Insurance wing, MIGA (Multilateral Investment Guarantees Agency). Likewise, Tanzania is a member of The International Centre for Settlement of Investment Disputes (ICSID) also a body affiliated to the World Bank.
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Zero percent (0%) Import Duty on Project Capital Goods, Computers and Computer Accessories, Raw Materials and Replacement Parts for Agriculture, Animal Husbandry and Fishing, Human and Livestock Pharmaceuticals and Medicaments, Motor Vehicle in Completely Knocked down (CKD) form and inputs for Manufacturing Pharmaceutical Products
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Ten percent (10%) - Import Duty for Semi-processed/semi-finished goods).
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100% capital expenditure to Mining & Agricultural sectors.The Income Tax Laws allows 50% Capital allowances in the first year of use for Plant and Machinery used in manufacturing processes and fixed in a factory, fish farming; or providing services to tourists and in a hotel.
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Do you have questions or do you more information about investing or doing business in Tanzania?
Feel free to contact us.
SUCCESS STORIES
15,6 million customers for Vodacom Tanzania
Vodacom Tanzania had a market capitalization of 743 million U.S. dollars. Vodacom Tanzania Limited is Tanzania's leading cellular network company. As of December 2020, Vodacom Tanzania had over 15.6 million customers and was the largest wireless telecommunications network in Tanzania. Vodacom Tanzania is a subsidiary of Vodacom Group Limited is a South African mobile communications company, providing voice, messaging, data and converged services to over 55 million customers.
Tanzania Breweries a subsidiary of ABInBev
Tanzania Breweries Limited Plc is a subsidiary of ABInBev. ABInBev is the largest brewer in the world. It has operations in over 50 markets and a presence in 15 African countries. TBL Plc subsidiaries are Tanzania Breweries Limited; Tanzania Distilleries Limited and Darbrew Limited. TBL Plc has won many accolades in Tanzania. These include the 2015 and 2016 Employer of the Year Award; 2015, 2016 and 2017 Manufacturer of the Year and is the Largest Taxpayer in Tanzania.
Bolloré Logistics Tanzania Successfully Completes Logistics for the Songo Songo Project
Bolloré Logistics Tanzania is a subsidiary of Bolloré Logistics headquartered in Puteaux, on the western outskirts of Paris, France, the company runs a network of 603 offices and employs 20,682 staff worldwide in 111 countries. Bolloré Logistics is a global leader in international transport & logistics.
