Revealed: preferred investment areas

Arusha. Tanzania registered 6,234 projects worth a total of $180 billion between 2007 and 2015, with economic infrastructure emerging as the most preferred investment avenue.

Railways, roads, air and sea ports and electricity generation attracted $86.561 billion in investment and created 154,672 jobs, according to Tanzania Investment Centre (TIC) data.

Financial institutions came second, with investments worth $39 billion, while telecoms, manufacturing, commercial buildings, transportation, tourism and agriculture coming third, fourth, fifth, sixth, seventh and eighth with $13 billion, $11.9 billion, $7.2 billion, $5 billion, $4.2 billion and 3.9 billion, respectively.

Investment in manufacturing created 208,655 jobs – representing 22 per cent of the 926,181 jobs that were created during the period.

Manufacturing and tourism emerged as the sectors with the highest number of projects, reaching 1,796 and 1,535, respectively, during the period.

Tourism projects – which include tourist hotels and lodges, tour operation, tented camps and tourist restaurants – accounted for 25 per cent of the investments registered during the eight-year period, and slightly below manufacturing (29 per cent), transportation (16 per cent) and commercial buildings (13 per cent).

An investment trends report by TIC which was presented at the Ngorongoro Investment Forum here last week indicated higher prospects for the tourism attracting more investments.

Apart from protected wildlife areas which over 25 per cent of the country’s total area, other opportunities cited include conference and eco-tourism, tour operations and transport services, as well as recreational facilities.

“Tanzania is a renowned tourist destination in the world and Ngorongoro Conservation Area (NCA) is the only place in the world where visitors are able to see the big five in their natural environment,” said TIC northern zone manager Daudi Riganda.

According to him, investments that go with tourism include a 75 per cent tax relief on deemed capital goods imported such as utility vehicles and camping equipment.

Others are zero import duty on goods (hotel equipment), engraved, printed or marked with a hotel logo imported by a licensed hotel for its use.

Other fiscal incentives, in which the facility is mandated under the Investment Act of 1997 which created it, include a 50 per cent capital allowance on tourist services and the same for the hotels.

Mr Riganda said TIC has lately been transformed into “a truly one-stop centre” for investors, allaying fears of delays and bureaucracy for both local and foreign investments.

“We encourage potential investors to visit Ngorongoro to further explore available opportunities. We are prepared to assist them to conform to legal as well as regulatory requirements,” he pointed out.

The 8,292 square kilometre NCA, arguably the leading single tourist destination in the country, currently has about 300 hotel rooms, mostly on the edge of its famous crater.

The proposed investments in tourism, the TIC report said, would not only generate more foreign currency for the economy but also increase employment opportunities.

Besides leading in foreign exchange earnings, tourism is one of the fastest growing sectors of the economy, registering a 14.3 per cent growth in the 12 months to February this year during which it generated $2.4 billion.

During the 12 months which ended in February last year, some $2.1 billion was earned. Revenue earnings rose in tandem with the number of visitors who rose to 1.3 million last year, 1.2 million in 2016 and 1.1 million in 2015.