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unparallel political stability that is strife free without ethnic division
Investment guarantees and settlement of disputes. Investments in Tanzania are guaranteed against political risks, nationalization and expropriation by local legislation and International Agreements. Tanzania is a signatory of (MIGA) Multilateral Investment Guarantee Agency and a member of the International Centre for Investment Settlement Dispute (ICSID) a body of affiliated to World Bank.
The Country enjoys a low crime rate.
There are international insurance companies offering Business Insurance and medical insurance.
Availability of Resources
Tanzania enjoys an abundance of natural wealth which offers tremendous investment opportunities.
It has abundant tourist attractions that are mostly under utilized.
It's climatic and soil conditions give it comparative advantage in farming of a variety of crops.
It has mineral wealth largely still unexploited.
Abundant trainable and inexpensive skilled labor force.
What is the Market
Tanzania is strategically positioned as a gateway to six land locked countries.
Has a population of 35 million people with ever increasing real income and high level of domestic investment spending.
Belongs to regional economic grouping, EAC, SADC, MMTZ-SACU- thus expanding its market access to all member countries of these economic groupings with a total of over 300 million people.
Has quota free and duty free entry to the markets of USA, (AGOA), Canada, Japan, South Korea and China. Therefore, establishing a factory in Tanzania, one has a larger market than the confines of Tanzania Borders.
Starting and sustaining Business in Tanzania
To cut down all bureaucracy and have a "peace of mind", let the Tanzania Investment Centre, a one stop centre do it for you. TIC with your cooperation will assist you to get all approvals, licences, work permits, visas, business premises and even land for investment.
TIC will offer you the most competitive incentives to commensurate the magnitude of your investment and risk associated with it.
The comprehensive economic and political reforms measures, undertaken since 1988 have brought about an efficient economic management, financial discipline and a framework for a dynamic high growth economy with inflation at around 5%.
The Tanzania shilling is freely convertible to all major currencies and transfer of capital and profit is allowed.
Investors are not compelled to enter into joint ventures. You can have 100% foreigner owned investment.
You need not to worry as to wasting time constructing sheds, Export Processing Zones Parks are there for you to fix your machines and start production, if you are an export oriented manufacturer, if not have your production unit in the Special Economic Zones Parks.
Due to less competition in the market, profit margins are undoubtedly very high.
Reaching your markets
By air - Tanzania is served by major airlines which fly from Tanzania to major hubs in the world. Regular flights fly form Dar es Salaam, Kilimanjaro and hired cargo planes from Mwanza/KIA to Europe. Currently, Emirates, Qatar Air and Kenya airways fly out from Dar es Salaam daily. Mbeya International Airport is due the start operation soon.
Dar es Salaam Kilimanjaro
Mwanza Due to open soon - Mbeya International Airport
By sea - There are regular ship sailing from Dar port, Tanga Port and Mtwara Port including Container cargo, Fuel tankers, Roro’s, break bulk cargo, liquefied cargo and refrigerated cargo ships.
Dar port Tanga Port
Mtwara Port Container cargo ship, Fuel tanker, Roro's,
Call at these ports on regular basis to ship in and out break bulk, cargo, containerize cargo, liquidified cargo and refrigerated cargo.
By Rail - Tanzania is connected to Kenya, Zambia and Uganda by rail therefore for bulk exports you can opt to use railway.
By Road - There is a good road network connecting Tanzania to its eight neighbours and beyond
Other are already there
Some proactive companies from the globe have already set their footing in Tanzania including those from UAE, who have invested in Petroleum exploration, Tourism, mining and many more other sectors. Opportunities are Limitless. Come and Grow with Us .
Tanzania is a country where opportunities abound. Investors are welcome to bring along capital, technology and expertise so that these limitless opportunities could be tapped for the mutual benefit of the investors and peoples of Tanzania. Investment opportunities include but not limited to the following:
|Large scale commercial farming with 44m hectors of arable land available||Tourism and Hospitality sector|
|Service Sector ICT, Education, Health, Infrastructure development||
Exhibition & Conversation Industry Development
|Mining and Oil Exploration||Food processing|
|Hotel and resort construction||Gemstone cutting and polishing|
|Energy generation||Economic Infrastructure on BOO/BOT|
|Bridges||Airport Infrastructure and Related Services|
|Road Construction||Agro Processing|
|Fishing and fish processing||Floriculture and Horticulture|
|Timber & wood processing||Real Estate|
|Ranching and Livestock development 60 m hectares of land readily available.||Air Ground transport exhibition and convention centres etc|
EPZ Infrastructure Development, Production & Services
Gemstone & Industrial mineral mining
To obtain profiled investment projects, kindly fill in the investment Enquiry from
11 March 2011
"The evolving relationship between China and Africa could be one of the most important developments in the international relations of the post-Cold-War era," say Kweku Ampiah and Sanusha Naidu.
The past two decades have witnessed the growth of an increasingly close relationship between Africa and China. China's phenomenal economic growth has had many positive implications for the African continent, including increased trade, investment, and development. Africa has experienced significantly higher levels of foreign direct investment as a result of its engagement with China, the latter having established more than 540 companies and 1600 development projects in 47 African countries. This number rose sharply to 750 companies by 2007.
However, the Africa-China relationship has sparked much debate, as scholars and economists alike try to interpret what it means for Africa's development in the long term. Ampiah and Naidu present two competing visions of this relationship: one casts China as a coloniser, the other views China as a competitor with the West. Many see China as an imperialist that seeks to exploit Africa and perpetuate its deplorable state of underdevelopment, but others argue that China competes with the West for Africa's resources and that this situation affords Africa the opportunity to promote its growth and development in an international system largely dominated by the West. This newsletter by Consultancy Africa Intelligence (CAI) argues that the China-Africa relationship, questionable as it may be, should be hailed for challenging hegemonic Western power and for actively supporting development in Africa.
Increased infrastructure and trade for Africa
Despite China's phenomenal growth levels, which quickly rendered it an international economic force, it maintains and displays solidarity with developing countries. China is one of the biggest aid donors to African countries. Its infrastructure-development projects have ranged from building railway lines in Tanzania and Zambia, to erecting skyscrapers in Luanda and stadiums in Ghana. China has further invested millions of US dollars in oil-rich countries such as Sudan, Nigeria, Angola and Algeria, and has granted loans to numerous African countries.
Due to its own history of economic stagnation and poverty, China realises the importance of infrastructure development in developing countries. Unlike the West, it does not simply offer Africa humanitarian aid, but rather growth and development opportunities through increased trade and infrastructural capacity. Struggling African countries have grabbed these opportunities for growth with both hands. The China-Africa relationship can thus be considered a strategic partnership rather than simple patronage. It has not only contributed towards Africa's infrastructure, but also encouraged South-South trade. China's engagement with Africa has made other developing countries, such as India, aware of the lucrative investment opportunities the African continent has to offer. China's involvement in Africa put it on the international trading map and increased its international trade with southern-hemisphere countries.
An alternative to United States hegemony
China's own development sets an example for other developing countries that are working to find their place in the international system, yet want to remain relatively independent. China's alternative development model, the Beijing Consensus, challenges the Western Washington Consensus. The Beijing Consensus emphasises the importance of innovation, non-interference by investors in domestic affairs, and self-determination in Third World states' bid to promote their economic development. These development tenets differ significantly from the Washington Consensus approach, which suggests that poverty alleviation and development be achieved by the liberalisation, deregulation and privatisation of domestic economies. The Washington Consensus has had devastating effects on African countries as their economies struggled to cope with the ‘shock therapy' of liberalising their markets and subsequently being exposed to the unfair trade practices of the West.
Apart from offering an alternative to the Washington Consensus, the Beijing Consensus affords African states the advantage of a choice between two major economic poles. They are no longer coerced to align with United States hegemony. However, the Beijing Consensus should not be seen as a development model that can simply be applied to all African countries, but rather as one that can bring about the global terms that would accommodate and encourage the development of African countries.
Non-intervention and sovereign equality for Africa
China's relationship with Africa has been based on five tenets since 1996, namely, "reliable friendship, sovereign equality, non-intervention, mutually beneficial development and international cooperation." These five points strongly contrast with the conditions attached to loans and development packages offered by the West, the International Monetary Fund (IMF) and the World Bank. Developing African states, who are reluctant to turn to the West and the IMF, now have an alternative source of funding. China's dynamic economic growth has increased its need for energy sources, in which Africa is rich. African countries that have abundant amounts of crude oil, titanium, copper, iron ore, platinum, coal, zinc and a wide range of other natural commodities such as timber and natural gasses, have experienced high levels of investment by China along with growing markets (due to China's increasing energy needs) in which they are able to sell their products at a competitive price.
China creates training and employment opportunities
These investments, as well as the infrastructural development discussed above, have led to job creation and the increase of technical training programmes in Africa. Chinese companies that establish business initiatives in Africa provide training in technical areas such as agricultural production, irrigation and telecommunications to African citizens. The maintenance and repair of the equipment used in these business initiatives and technical areas further stimulate job creation. Large numbers of previously unemployed Africans can now provide for their families.
Whilst food security has become a growing concern in China, Africa is rich in agricultural goods and able to supply China with much-needed foodstuffs. This has led to further Chinese investment in African industries like agriculture, farming machinery, fisheries, secondary production and agricultural processing facilities. China has also used military cooperation with Africa as a means to further gain access to its resources and economy. China has provided uniforms to Mozambique's army, as well as equipment, training and arms to various African countries. It has provided fighter jets and helicopters to Zimbabwe, Angola, Namibia, Sierra Leone and Mali. China has also contributed humanitarian aid and peacekeepers to the African Union (AU) and United Nations (UN) missions in Africa, in an attempt to promote stability on the continent. Last but not least, China has granted many African countries complete debt cancellation.
Trade and investment with no strings attached
Chinese investment came with some political conditions, such as trading partners not being allowed to have relations with Taiwan. They must accept the ‘one-China' policy. However, investment and development aid from the West came with political conditions, too, including adherence to the practice of good governance and acceptance of a liberalised economy, in exchange for financial assistance. Many feel that the West has always regarded Africa as a backward, poverty- and disease-ridden continent. It has treated Africa as a burden to the international system, and engaged with the continent in a spirit of paternalistic and cultural superiority.
Africa's relationship with China has given the continent an opportunity to escape old stereotypes and Western conditions and to promote its development instead. China and the West have now become strategic competitors for Africa's resources. As a result of China's regarding Africa as a sovereign equal in the international system and a lucrative investment destination, it has also promoted Africa as an official approved travel destination. More Chinese citizens now travel to African countries, which generates revenue, motivation for growth, and other positives in destination countries.
It is true that China's interest in Africa is economically and politically motivated, but it has produced a magnitude of possibilities and developments. China found a lucrative market for investment, and Africa continues to gain from the infrastructural and economic developments arising from that investment. The China-Africa relationship challenges US hegemony in the global economy, which may convince the West to alter its policies in order to maintain desired levels of involvement with the African continent. Some may argue that China has dark motives, but even if this is true, China's supportive involvement in African countries is still an example that the West is not necessarily the best answer to Africa's challenges.
Tanzania registered eight consecutive years of gross domestic product (GDP) growth in excess of 6% until the global economic downturn began to affect growth in 2009. Consequently, the country achieved one of the most impressive rates of growth for a non-oil-producing sub-Saharan African country in the 2000s. Available data suggest that Tanzania’s real GDP growth is firmly on the recovery path with growth at an estimated 6.8% in 2010. Economic prospects for the medium term continue to look bright: inflationary pressures are low, gold prices (a major Tanzanian export) are at historic highs and investor sentiment towards East Africa’s second largest economy remains upbeat.
Key drivers of growth in the short and medium term include private consumption, exports and gross fixed capital, tourism revenues, foreign investment and aid. The government also intends to direct interventions to ensure that GDP growth is propelled mainly by key sectors, namely agriculture, manufacturing, tourism, mining and infrastructure. Given these factors, which should see the economy continuing its robust expansion in real terms, and in the absence of major adverse effects from the global economy, the forecast is a real GDP growth rate of 6.9% in 2011 and 7.3% in 2012.
The greatest risk to economic growth in the short and medium term is the growing fiscal deficit and the implied potential need to raise bridging funds. In turn, this could translate into an even greater reliance on foreign grants and investment or the government’s need to raise such funds from non-concessional borrowing. Any significant disruption to either of these sources of funding would have negative ramifications for macroeconomic stability, and in turn, for economic development.
The government started using a revised methodology to calculate inflation in October 2010. That month, headline inflation declined to 4.2% from 4.5% in September, and followed on from a generally disinflationary trend in place for most of 2010. That trend is expected to bottom out in early 2011 before rising to a forecast 5.1% for the year. Higher energy and food prices, coupled with potential adverse weather conditions bode ill for inflation, especially given that food is the largest single contributor in the consumer price basket. Nonetheless, inflation is expected to be contained at around 6.9% and decline to just above 6% in 2012.
At a more fundamental level, Tanzania remains one of the world’s poorest countries despite the huge strides made in recent years to promote economic development. The country still lags behind most of its neighbours in terms of economic development and is unlikely to meet all the Millennium Development Goals (MDGs). With rapid population growth forecast for the next 50 years, it will prove very challenging to stem poverty in the medium to longer term, particularly as government revenues are spread very thinly.
Having won the elections in 2010, the ruling Chama Cha Mapinduzi (CCM) party faces no serious threats in 2011. Confident of his political base, President Kikwete has vowed to continue the economic reforms that have allowed Tanzania to have one of Africa’s fastest-growing economies in the 2000s. There are, however, potentially destabilising political factors including Zanzibari separatism and periodic unrest along Tanzania’s borders. However, neither is a severe threat for the short term.
Tanzania Resources and Articles on Afribiz
- : East Africa: Key Sectors and Business Environment in 2011
- : Tanzania: Economy Overview 2011
- : Tanzania: Multilateral and Regional Agreements Affecting Multinational Corporations
- : Tanzania: Laws Affecting Multinational Corporations
- : Foreign Multinational Corporations in Tanzania
- : Tanzania: Top Agricultural Commodity Products in 2008
- : Tanzania: Key Agricultural Commodity Imports
- : Tanzania: Key Agricultural Commodity Exports
- : Airlines Servicing Tanzania
- : Urban Locality Populations in Tanzania
- : Starting a Foreign Business in Tanzania
- : Registering Property in Tanzania
- : Starting (Registering) a Business in Tanzania
- : Tanzania: Government Leaders and Key Ministries
- : Tanzania: Laws and Regulations
- : Tanzania: Business, Economic, Investment, and Trade Resources
Some multinational corporations (MNCs) with affiliates in Tanzania are listed below. For further details on the inflow and outflow of foreign direct investment in Tanzania, check the World Investment Directory 2008: Africa by the United Nations Conference on Trade and Development (UNCTAD).
|Alliance Ginneries Ltd||Kenya||Agriculture and hunting|
|Aon Tanzania Limited||United States||Insurance|
|Barclays Bank (T) Ltd||United Kingdom||Finance|
|Body Care Ltd||United States||Chemicals and chemical products|
|Brooke Bond Tanzania Ltd||United Kingdom||Food, beverages and tobacco|
|Citibank Tanzania Ltd||United States||Finance|
|City Water Services Ltd||United Kingdom||Electricity, gas and water|
|D T Dobie & Company (Tanzania) Ltd||France||Wholesale trade|
|Desbro Tanzania Ltd||Kenya||Wholesale trade|
|Gailley & Roberts (T) Ltd||United Kingdom||Wholesale trade|
|Geita Gold Mine (T) Ltd||Ghana||Mining and quarrying|
|Glaxo Wellcome Tanzania Ltd||United Kingdom||Wholesale trade|
|Karibu Textile Mills Limited||Mauritius||Textiles and clothing|
|Kibo Breweries Ltd||Kenya||Food, beverages and tobacco|
|Matsushita Electric Company (E A) Ltd||Japan||Electrical and electronic equipments|
|Mic Tanzania Ltd||Luxembourg||Wholesale trade|
|National Bank Of Commerce Limited||South Africa||Finance|
|Pricewaterhousecoopers||United States||Other services|
|Regional Air Services||Kenya||Air transport|
|Rentokil Initial Tanzania Ltd||United Kingdom||Other business activities|
|Sadolin Paints Tanzania Limited||Oman||Chemicals and chemical products|
|Service And Computer Industries Ltd||Kenya||Wholesale trade|
|Standard Chartered Bank Tanzania Ltd||United Kingdom||Finance|
|T P C Ltd||Mauritius||Agriculture and hunting|
|Treadsetters Tyres (T) Ltd||Kenya||Rubber and plastic products|
|Tri Clover Industries ( T ) Limited||Kenya||Chemicals and chemical products|
|Tri Telecommunications Ltd||Malaysia||Telecommunications|
|Unilever Tea Tanzania Ltd||United Kingdom||Food, beverages and tobacco|