What you need to know:
- Tanzania Investment Center (TIC) registered 132 investment projects valued at $3.16 billion from July to November 2022, with the agency attributing the growth to President Hassan's pro-business approach and emphasis on economic diplomacy
Dar es Salaam. President Samia Suluhu Hassan’s pro-business approach is having a profound impact in the government’s efforts to stimulate economic growth, with latest data showing that the value of investment projects has almost tripled during the past five months.
The industrial, transportation and tourism sectors dominated the investment projects which hit $3.16 billion between July and November, this year.
A total of 132 projects worth $3.16 billion were registered by the Tanzania Investment Center (TIC) in the five months to November 2022, compared with 108 projects worth $881 million recorded during the similar period in 2021.
About 51 percent of the number of projects are in the manufacturing sector, according to the TIC.
According to the TIC acting executive director, Mr John Mnali, the increase in both number and value of the projects, is a result of investor confidence towards Tanzania’s policies and environment.
“The number of registered projects increased by 22.2 percent, which shows the impact of economic diplomacy and favourable investment policies that the government has been promoting,” he said during a press briefing yesterday.
From holding meetings with key players in the international economy, and foreign traders to several international visits, the government under President Hassan has strengthened the country’s trading partnership with the rest of the world, he said.
Since ascending to the Presidency in March, 2021, President Hassan has led her government’s tireless efforts in improving the business and investment climate.
“President Hassan has managed to earn praise and trust from investors who are now confident and more than willing to come and invest in the country….It is an open secret that the President has managed to effectively tackle the hurdles that investors face in their businesses,” the Minister for Investment, Industry and Trade, Dr Ashatu Kijaji, is on record as having said in April 2022.
During the past one year and ten months off President Hassan’s administration, the government has been able to address the hurdles ranging from red tape, unfriendly taxation system, complexity in the issuance of work permits to foreigners and other unnecessary trade barriers.
Mr Mnali told reporters that about 50 of the registered projects were from foreign investors, while 30 were from local investors and the remaining 52 projects are the results of joint ventures between foreigners and locals.
“The distribution of these projects also shows that the manufacturing sector led by inviting 67 projects, followed by transportation at 25, tourism at 12, agriculture with nine projects, and the services sector at eight projects,” he said.
According to Mr Mnali, there were also seven projects for the commercial real estate sector, three human resources projects, and one financial project.
“The TIC has been tagging along when government leaders take these foreign trips where we get a chance to speak with potential investors and present the available opportunities,” he said. Tanzania was recently ranked highly by the Absa Africa Financial Markets Index 2022, an annual report highlighting economies with the most supportive environment for effective markets.
The report shows that the country’s strong regulatory framework, sound macroeconomic fundamentals, and vibrant financial market as key facilitators of the business environment.
Another international recognition was issued by Moody’s Investors Service which changed Tanzania’s outlook from stable to positive as a result of President Hassan’s pro-business approach.
Ratings such as that of Moody’s are used by investors globally to decide where and why they should invest their money in any particular economy.
“The outlook change to positive reflects Moody’s view that political risks have lessened under the government’s new approach to promoting economic development and engagement with the international community,” Moody’s said in its latest change on Tanzania’s rating which was published in October 2022.
Last month, the Minister for Investment, Industry and Trade Dr Ashatu Kijaji, said the government is in the final stages of establishing a single window that will provide prompt services to investors, in attempt to improve Tanzania investment climate.
The one-stop window will make sure that investors get their licences in a span of one to three days, Dr Kijaji said.
According to her, the investment window will be different from other one-stop centres in the sense that it will contain some top decision makers who will be in a position to solve some issues instantly.
Dubbed Tanzania Electronic Investment Window (TeIW), the system targets to link all electronic systems that already provide one-stop services at the Tanzania Investment Centre (TIC) which include 12 institutions.