US investors show renewed interest as Tanzania’s reforms gather pace

Business Reporter

Mwananchi Communications Ltd

Dar es Salaam. Ongoing government reforms are drawing renewed interest from American business leaders, with investors from the United States signalling readiness to channel capital into key sectors of Tanzania’s economy.

The development was announced yesterday following the signing of a cooperation agreement between the Tanzania Investment and Special Economic Zones Authority (Tiseza) and the American Chamber of Commerce (AmCham). The two institutions said the deal is intended to strengthen collaboration and enhance the utilisation of available investment opportunities. Speaking shortly after the signing ceremony, AmCham chairman Mr Geofrey Mchangila said the business community was encouraged by the government’s efforts to address investors’ concerns and improve the operating environment.

“In any investment environment, challenges are inevitable. What matters most is how they are addressed. We are satisfied with the way the government is resolving our concerns and providing us with a platform for dialogue,” he said.

Mr Mchangila noted that several reforms have already been implemented, while others are ongoing, making Tanzania increasingly attractive to foreign investors. He said the agreement would further cement cooperation between the two sides and promote two-way investment flows, including Tanzanians investing in the United States.

He added that in a fast-growing economy, challenges are unavoidable, but investor confidence depends on the government’s willingness to resolve them. According to him, feedback from AmCham members has been positive, particularly regarding policy reviews and the availability of structured engagement platforms.

Tiseza director general Mr Gilead Teri said the United States is among the top three sources of foreign capital in Tanzania, with cumulative investments estimated at $5 billion. He expressed optimism that the new agreement would help to increase that figure further.

On challenges facing investors, Mr Teri identified taxation and land as areas requiring continued attention. He noted that President Samia Suluhu Hassan has established a special commission to review tax-related concerns, with recommendations expected soon.

“The ambassadors’ letter largely addressed tax matters. A commission has already been formed and will soon present its recommendations. Overall, many reforms have been undertaken, and they continue to attract more investors to the country,” he said.

Mr Teri acknowledged that access to land permits had previously taken up to two years, posing a major obstacle to investors. However, he said the establishment of special economic zones under Tiseza has significantly streamlined the process.

Currently, investors can secure land within 48 hours in designated zones and obtain construction permits simultaneously, accelerating project implementation.

He added that Tiseza monitors 14 key areas affecting investors, with taxation and land now the only major outstanding challenges. These, he said, are being closely addressed to further strengthen the business climate.

According to Mr Teri, tax challenges often arise in complex, rapidly expanding economies where private sector activity outpaces regulatory adjustments, underscoring the need for continuous policy and legislative reforms to keep pace with growth.