Investment Opportunities In Tanzania

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From the South which is blessed with oil and other natural resources to the north which is blessed with gold and other resources to the West, Tanzania is full of opportunities for anyone willing to invest.

Tanzania is East Africa’s second-largest economy after Kenya. With approximately 61.4 million people, the nation is considered an attractive market for both local and foreign investors. In 2020, Tanzania reached an important milestone when it formally graduated from a low-income country to lower-middle-income country status.

With a rapidly emerging market, Tanzania ranks among the 20 fastest-growing economies in the world. Over the past two decades, it has been transformed from a centrally planned economy to a market-oriented system through the successful implementation of free-market-orientated reforms.

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. The Government has encouraged private sector-led growth through the restoration of market forces and less Government intervention in commercial activities.

Tanzania is accessible through the Indian Ocean, which gives it trade links to Asia, and sits in between 6 landlocked countries; the Democratic Republic of Congo, Uganda, Rwanda, Burundi, Zambia, and Malawi; which rely on Tanzania as the most efficient point for passage of goods. Investing in Tanzania, therefore, provides the advantage and opportunity to access local, regional, and international markets. Apart from being a point for the passage of goods, Tanzania’s internal production capabilities, driven by rich natural resources, e.g. large size of arable land and mineral deposits make it a natural hub for economic activity in the East African Region.

Certain sectors in the Tanzanian economy require investment to reduce the dependence on agriculture-based revenue streams as it contributes over half the GDP and absorbs around 80% of the workforce. Sectors like economic and financial infrastructure, transportation, real estate, manufacturing, agriculture and livestock development, petroleum, mining, energy and ICT present a host of investment opportunities.

The most lucrative investment opportunities in Tanzania include:

Agriculture and Agri-business

Agriculture is one of the most important investment opportunities in Tanzania. It employs about 67 % of the engaged population and remains central to Tanzania’s industrialization as it provides markets for industrial products and raw materials for industries.

The region is an excellent place to start an agricultural business because of its favourable environment, climate and enough rainfall. It has 44 million hectares of arable land with an estimated 29.4 million hectares suitable for irrigation.

Tanzania spends more than US$ 150,000 annually to import edible oil. The lack of modern mechanical extraction equipment and ineffective way to increase productivity in agriculture has positioned Tanzania to rely on imported edible oil. Meanwhile, Tanzania has sunflower, cotton, groundnuts, soya beans, and palm, which, with increased production, and productivity can be used to anchor a competitive edible oil industry in the country and regional market. This is a huge investment opportunity.

Soil and topography in target sugar zones are ideal for industrial sugarcane cultivation.
Many financial institutions including the ministry of finance in Tanzania offer special financial assistance to Agriculture focused businesses through the Tanzania Agricultural Development Bank. Thus, investing in the agriculture sector will be a very lucrative venture.


Tanzania boasts of 22 National Parks, 1 Conservation Area, 2 Game Reserves, 44 Game Controlled Areas, 4 Wetland Sites, 33 Wildlife Management Areas, and 6 Nature Reserves.
Kilimanjaro Mountain – the highest free-standing mountain in the World and highest in Africa, Ngorongoro Crater- a World Heritage Site, and the Spice islands of Zanzibar and Serengeti National Park- are some of the biggest tourist attractions in the east African nation.

Tourism is one of Tanzania’s leading foreign exchange earners and accounts for about 24.0 % of its exports and 17.2% of its GDP. It is a fast-growing sector that offers plenty of investment opportunities.

Investors can also take advantage of several strategies and programs that have been earmarked by the government to attract investments into the industry such as the introduction of the Tanzania Unforgettable program, branding of premium parks, development of high-value niche products, and building of new high- end international hotels chains among others.

Real Estate

With a booming population of over 60 million at a growth rate of 2.7% per annum, demand for modern housing is increasing across the country. Large migration to major cities such as Dar es Salaam, Mwanza, Arusha, Zanzibar etc. has made real estate one of the most profitable investment opportunities in Tanzania.

The opportunities include low-cost and affordable housing such as trailer homes, tiny houses, or houses built with non-traditional building materials, supplies of building materials, hotels, shopping complexes and so many more.

Investment in real estate in major cities will be very lucrative for investors. Investors may form a synergy with National Housing Corporation or Tanzania Building Agency, or other private firms and provide commercial building solutions for residential and commercial purposes.


Tanzania is a country that is dependent on importation for the smallest of things. Due to its rapidly growing economy, there is an urgent need to produce locally. The manufacturing sector is at its infancy stage with few exploited areas.

There are many crucial things to manufacture: food items, table and sachet water, electrical materials, telecommunication equipment, building materials, fashion accessories and many more.

Consecutive governments have constantly called for investment in the manufacturing sector. An investment in Tanzania’s manufacturing sector will create employment and boost the economy.


Energy is identified as one of the infrastructural enablers of the pillars of Tanzania’s Vision 2025, with an expected surge in energy use within the commercial sector on the road to 2025.

As a result, the government has identified the need for the generation of additional energy and efficiency in energy consumption as priorities in Vision 2025.

Tanzania is endowed with diverse energy sources including biomass, natural gas, hydro, coal, geothermal, solar and wind power and uranium, much of which is untapped.

Commercial energy sources i.e., petroleum and electricity, account for about 8% and 1.2%, respectively, of the primary energy, used. Coal, solar and wind account for less than 1%.
Investment opportunities exist in the provision of solar energy, Wind Energy, generation of Geothermal power, Hydroelectric generation, Development of diesel plants, etc.

The discovery of oil in Zanzibar and coal deposits in Mchuchuma, Liganga, and Ngaka provide more opportunities in meeting Tanzania’s energy needs.


Tanzania is blessed with very numerous natural resources which include coal, copper, diamonds, gold, nickel, silver, uranium, kaolin and Tanzanite gemstone, which is found nowhere in the world other than the east African country.

The mining sector in Tanzania is under-explored and the government has continued to show signs it is willing to cooperate with investors who want to get in. The Government plans to have this sector contribute 10% of GDP by 2025. This plan offers an opportunity to investors.

A high level of investment security due to unparalleled political stability; Strong economic liberalization measures commended by both the World Bank and the IMF; a favourable package of incentives and benefits are some of the reasons why investors should consider Tanzania as an investment destination.

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