Tanzania with approximately 63 million people residing the country, is the largest populated country located in entirely southern hemisphere. It has one of the largest marketplaces in East Africa. The country’s geography is greatly beneficial. Tanzania is connected to the Indian Ocean giving it trade links to Asia and sits in between the ocean and 5 landlocked countries (Uganda, Rwanda, Burundi, Zambia and Malawi) that rely on Tanzania for passage of goods.

The country has 3 deep water ports (Dar es Salaam, Tanga and Mtwara) that are servicing the neighboring countries. Furthermore, its membership to the SADC (South African Development Community) Free Trade Area and EAC (East African Community) Common Market, with developed rail and road networks, makes Tanzania a natural transportation gateway for East and Central Africa. The following are among the major reasons why you should invest in Tanzania.

1. Favourable Location

Tanzania is ideally situated in East Africa, providing connectivity with the Indian Ocean and acting as hub for travel to neighboring nations. Its advantageous location helps entrepreneurs expand their business and easily access the nearby regions.‌

Tanzania is a member of the East African Community (EAC) as well as the Southern African Development Community (SADC). With an aggregate population of more than 180 million, the EAC market offers firms an enormous opportunity to reach millions of consumers which is one of the best advantages of registering a company in Tanzania.

Apart from being a point for passage of goods, Tanzania’s production capabilities, diverse economy boost the country’s potentiality. Not only that, the country’s rich natural resources, e.g. large size arable land and mineral deposits make it a natural hub for economic activity in the East and Central African Region.

2. Investment Guarantee and Security

Investments in Tanzania are guaranteed against political risks, nationalization and expropriation. Any foreign business operating in Tanzania may obtain credit from domestic financial institutions up to the limits established by the Bank of Tanzania. Major banks have also invested in Tanzania.

High degree of investment security because of unparalleled political stability that is strife-free without ethnic division. Democratic rule that respects diversity of opinion and a strong tradition of constitutionality and rule of law.

3. Natural Resource

Tanzania is endowed with a variety of natural resources including a 1,424 kilometre coastline, enormous arable land, world class tourist attractions, minerals, oil and gas. Available arable land, conducive weather and ground along with surface water provide opportunities in agro-production and agro-processing, livestock farming as well as processing livestock products including meat, milk and leather.

Tanzania is rich in minerals as well as precious gemstones. Minerals found in Tanzania include gold, iron, silver, copper, platinum, nickel limestone, soda ash, gypsum, salt, phosphate and tin. Gemstones that can be found in Tanzania include sapphire, ruby, emerald, spinel, tanzanite, alexandrite, tourmaline, zircon, aquamarine, tsavorite, spessartite, rhodolite and demantoid garnet. Tanzania has emerged as one of the most important gemstone producing countries in the region.

The large natural gas reserves that were recently discovered could be the most significant transformative factor on the economy. Currently, the exploration and extraction of the gas reserves are very much in the infancy stage, with a huge potential upside in the near future.

4. Business Friendly

Business-friendly Macro-Economic Stability with low inflation (4.2%), stable exchange rates supported by unrestricted and unconditional transferability of profits, loan repayments, emoluments, royalties, fees and changes. All this facilities makes Tanzania a good place for investment.

Tanzania inspires new investments and motivates new and upcoming entrepreneurs. Tanzania being amongst the developing countries and the market is full of chances for investments ranging from agribusiness, tourism, manufacturing to importation.

5. Infrastructure Development

The Tanzania government has made substantial infrastructural improvements to facilitate trade enhancement in the country. Tanzania has made great progress in reforming its trunk roads, improving the quality of the road network. The transportation and other infrastructural facilities of the nation make up around ten percent of Tanzania’s yearly expenditure.

With the aim of reducing travel costs for both people and businesses in order to promote the formation of a vibrant private sector, Tanzania is making important contributions to the development of infrastructures like roads, trains, and canals. The East African Nation has also invested in energy, water system and telecommunications.

The country has also seen significant gains in ICT networks, and has one of the most competitive domestic air transport sectors in Africa. The country boasts a well-maintained road network, a modern airport, reliable energy supply, power generation, off grid generation and uninterrupted power supply.

6. Expanding Opportunities

Tanzania is a growing nation, and the market offers a wide range of opportunities for investment, including in production, tourism, agriculture, exporting and importing. Food processing, textiles, tourism are a few of the main industries in Tanzania.

Tanzania’s booming tourism industry is a great place for investing as it offers the country’s unique economic potential. Nearly 1/5th of the country’s GDP is generated by the tourism sector. Investing in the travel and hospitality fields, along with associated industries like agro-tourism, can greatly benefit both local and foreign investors.

7. Politically Stable Economy

Tanzania is one of the most politically stable economy of the region. Tanzania is a secure, politically and economically prosperous nation without any significant records of internal instability, civil wars, or ethnic disputes.

A stable and secure economy is essential for firms that are established in Tanzania. Because it safeguards the investors and additionally offers a setting that is excellent for companies to thrive in and grow.

8. Rapidly Expanding Market

Tanzania is a rapidly growing emerging market. It ranks among the 20 fastest growing economies in the world. The country has exhibited a GDP growth rate of around 7% for the past 10 years and it is predicted by the IMF and World Bank to continue this rapid growth for the next decade.

Over the past two decades, it has been transformed from a centrally planned economy to a market-oriented system through successful implementation of free-market orientated reforms. The Government has encouraged private sector-led growth through the restoration of market forces and less Government intervention in commercial activities. Overall the reforms have resulted in positive growth trends and impressive macro-economic indicator s with inflation rates falling from 27.4% in 1995 to about 3.4% in 2019.

9. Simplified Bureaucracy

Streamlined through the acclaimed services of the Tanzania Investment Centre which is a one-stop-facilitation agency of government serving registered investors and businesses. Setting up business in Tanzania is relatively easy and less time-consuming than most other African countries.

A well-balanced package of incentives to investors with additional negotiated benefits to strategic investors. The government encourages industry-specific investments with a focus on agriculture, commerce, tourism, and mineral extraction, whereas the EPZ plan encourages investments in export-oriented manufacturing industries.

10. Investment Incentives

Tanzania has improved its economic environment significantly in the past few years, which has made it simpler for foreign investors to establish and run companies there. The government offers a range of investment benefits to foreign as well as overseas investors via the Tanzania Investment Centre.

Tanzania places no restrictions or conditions on the unrestricted movement of funds or revenues, which promotes investment in the nation. Tanzania has a wide range of bilateral investment treaties with several nations which assist in raising foreign investment in the nation. Moreover, non-fiscal incentives include the automatic immigration quote, protection against non-commercial risks, protection against nationalization and confiscation, and an unconditional transferability of funds.

Conclusion

Tanzania has emerged as a highly promising investment destination in Africa, thanks to its strong commitment to economic development and good governance. The country provides a business-friendly environment, characterized by streamlined processes, enticing incentives, and a dedication to innovation.

With a robust regulatory environment, emerging market potential, and a growing middle class, the country has significant strengths. The government efforts to create friendly business and investment climate have made Tanzania to be a safe destination for investors from different parts of the world.