UAE eclipses China as Tanzania’s leading Foreign Direct Investment source in Q3

The projects are expected to generate 20,808 employment opportunities.

The UAE brought projects worth $502 million followed by China at $401.55 million and India at $176.18 million.

China was a leading source of Foreign Direct Investment (FDI) into Tanzania, accounting for 1,098 investment projects worth $9.6 billion, until October 2022, which have created 131,718 jobs.

China was followed by the UK and the USA in the second and third positions, respectively.

According to Tiseza, the top five sources of foreign direct investment (FDI) recorded in the fourth quarter of the last financial year were, China ($1.5 billion), Cayman Islands ($495 million), United Arab Emirates ($305.4 million), India ($115.9), and Mauritius ($98.27 million).

The government targets to attract Sh36.862 trillion in total investments by the end of the current financial year with focus areas including special economic zones, said Tiseza director general, Mr Gilead Teri.

“Despite the fact that Tanzania is in an election season, investor confidence has remained strong, with continued momentum across key sectors,” he said, adding that out of that, 130 projects are owned by foreigners and 120 joint ventures.

Five sectors that lead in the registration projects include manufacturing which accounted for 42.29 percent, followed by constriction of commercial building at 14.93 percent and transport at 14.43 percent.

Dar es Salaam led all regions with 79 projects valued at Sh2.03 trillion, followed by the Coast Region which recorded 29 projects worth Sh417.99 billion, while Mwanza registered 12 projects worth Sh482.97 billion, Dodoma followed closely with 13 projects amounting to Sh455.32 billion, and Arusha secured 16 projects with a combined value of Sh261.02 billion.

“These figures are not just numbers; they reflect growing confidence across sectors and across regions. Tanzanians should be alert to the opportunities ahead,” he said.

To build on this momentum, Tiseza has launched a targeted national campaign to promote five high-priority Special Investment Zones.

These include Bagamoyo, Kwala, the Benjamin Mkapa area in Dar es Salaam, and Buzwagi in Kahama, with additional areas such as Ruvuma, Mirerani, and Tanga also receiving priority status under the current investment strategy.

Mr Teri further announced that investors who commit to establishing a factory within 12 months in these designated zones will be provided land free of charge, a move aimed at accelerating industrial development and attracting both domestic and international investors.

In these zones, Tiseza has identified ten priority sectors for investment, which include fast-moving consumer goods, textile manufacturing, pharmaceutical production, vehicle assembly and auto parts manufacturing, paper and packaging materials, rubber products including tire production, boat and motorcycle engine manufacturing, solar technology and battery production, electrical devices, and furniture for the construction industry.

“These sectors have high growth potential, strong capacity for job creation, and the ability to generate significant export value,” he said.

In his remarks, Mr Teri also urged the public and potential investors to rely on official data from Tiseza and other government institutions, cautioning against the use of unofficial or unverified sources when making investment decisions.

He reaffirmed the authority’s commitment to transparency and open engagement with stakeholders across all regions.

He noted that the sustained pace of investment, even in the context of a national election, is a clear sign of investor confidence in Tanzania’s long-term stability, policy direction, and commitment to economic transformation.