TIC to register record number of investment projects

Dar es Salaam. The Tanzania Investment Centre (TIC) said yesterday it aims to register the highest number of new projects this year.

TIC executive director Gilead Teri told journalist the Centre has already registered 229 projects worth $2.2 billion (about Sh5.15 trillion) in the first half of 2023.

The projects are predicted to create 31,647 jobs.

The number of the registered projects is 27.9 percent below the projects registered the whole of last year.

“We are on the course to break the record. There is a possibility for doubling last year’s performance,” Mr Teri said.

He said TIC registered a total of 293 new projects valued at $4.54 billion (Sh10.62 trillion) last year.

This suggests that in the second half of this year, the Centre has little task of attracting 64 more projects to reach the same figures registered last year.

“We are positive we will break the record. We are working round the clock to secure the future of our country,” said Mr Teri.

He banked his hopes on President Samia Suluhu Hassan’s pro-business approach, saying it would attract more local and foreign investors.

He said the new Tanzania Investment Act of 2022 has created an enabling business environment that makes investors consider Tanzania as the best place for investment in Africa.

While the new Act has reduced the minimum investment capital threshold for a business owned by a Tanzanian from $100,000 to $ 50,000, the threshold for foreigners remains $500,000.

 This means a lot to local investors as it will broaden a scope for them to take part in investment activities and thus boosting their shares.

Going by the TIC data, local investors accounted for 33.62 percent of all registered projects during the first half of this year, with foreign investors’ shares standing at 41.92 percent.

The rest of the shares were for the joint ventures.

“With the government’s commitment to create an enabling business environment, we are expecting to see more local investors capitalising on the available potentials,” said Mr Teri.

The manufacturing, transportation, Commercial building/construction, tourism and agriculture are sectors that attracted more investment during the first half of 2023.

Mr Teri said changes in the Investment Act has improved the system of providing investors with certificates of incentives.

“Currently it is The Tanzania’s National Investment steering Committee (NISC), managed by the Ministry of Finance that coordinates the issue of incentives to investors.

“And it is the cabinet that gives a greenlight for the incentives, and not separate institutions as it used to be before.

 “Previously, there was no harmonisation among institutions and thus confusing investors at some points, he said

With the new system which started in January this year, it takes an investor three to six months to get incentives.

“The period for obtaining the incentives might look longer, but investors are comfortable with it because for them predictability is important than anything else,” said Mr Teri.