Why invest in Tanzania?

Tanzania enjoys an abundance of natural wealth, which offers tremendous investment opportunities for investors. These include an excellent geographical location (six land locked countries depend on Tanzania ports as their cheapest entry and exit ports); arable land; world renowned tourist attractions (Serengeti, Kilimanjaro, Ngorongoro, and the Spice islands of Zanzibar); natural resources; a sizeable domestic and sub regional market; a wide local raw materials supply base; abundant and inexpensive skills; assurance of personal safety; warm friendly people and a suitable market policy orientation.

The following are among the major reasons why you should invest in Tanzania:
  1. 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;
  2. 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;
  3. 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;
  4. Successful economic liberalization measures commended by both the World Bank and the IMF with business-supportive legislation continually being improved through genuine dialogue between government and the private sector.
  5. Rapidly emerging as the most effective entry point and gateway for trade into Eastern, Southern and Central Africa;
  6. Lucrative investment opportunities in infrastructure, privatization and value-adding facilities.
  7. Investment guarantees, and settlement of Disputes. Investments in Tanzania are guaranteed against Political risks, Nationalization and Expropriation.
  8. 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 like Standard Chartered, ABSA, Barcleys, Citibank, Stanbic, Exim etc. have invested in Tanzania.
  9. Existing investors are ready to expand their businesses in Tanzania as depicted in the recent survey conducted by TIC, BoT and NBS.
  10. Tanzania has been rated as number one investment destination with the highest sales growth by the UNIDO’S Report of Foreign Investor Perception Survey, November 2003.
Incentives to investors
The incentives available to the holders of TIC Certificate of Incentives are:
  • The recognition of private property and protection against any non-commercial risks. Please be informed that Tanzania is active member of the World Bank Foreign Investment Insurance wing, MIGA (Multilateral Investment Guarantee Agency). Likewise Tanzania is a member of International Centre for Settlement of Investment Disputes (ICSID) also a body affiliated to the World Bank.
  • 100% Capital allowances in computing gains and profit of an enterprise.
  • Reduced import tariffs on project capital items. (5% import duty for investment in priority areas and ZERO % for investment in Lead Sectors).
  • The right to transfer outside the country 100% of foreign exchange earned, profits and capital.
  • The ease of obtaining other permits such as Residence/work permits, industrial licence, trading licence etc.
  • Automatic permit of employing 5 foreign nationals in the project holding Certificate of Incentives.
Some of the Major Investment Opportunities:
  1. Agriculture
    • Tanzania has 44 million hectares of arable agricultural land of which only 24.5% is utilized
    • There is about 60million hectares of land suitable for livestock development of which only 26% is utilized.
    • Investors are invited to invest in Commercial Farming and Ranching.
  2. Tourism
    Investment opportunities include Hotels Construction , Conference Tourism, Beach Tourism, Historical Sites, Amusement Parks, Leisure Parks, Specialized Cuisine Restaurants, Tourism Ground Golf Courses, Air/Ground Transport, Wild Life Farming and Trading of live animals.
  3. Mining
    Tanzania posses a comprehensive Geological and Minerals Database
  4. Agro Processing
    • Food, leather, garments and apparels
    • Fishing and fish processing
  5. Floriculture & Horticulture
  6. Service Sector
    ICT, Education, Health and Fashion Industries
  7. Lapidary
    Gemstone cutting and polishing, and jewelry. Please note that Tanzanite is only found in Tanzania
  8. Manufacturing Industries and Trade
  9. Export Processing Zones
  10. Timber and Wood Processing
    Forestry & Furniture
  11. Energy
    Investment opportunities exist in power generation from coal, Natural Gas, Hydro and Solar Energy
  12. Economic Infrastructure
    Road construction, Bridges, Real Estates, Telecommunication etc.
For more information contact:

Tanzania Invest Centre
PO Box 938, Dar es salaam, Tanzania

Tel : +255 22 2116328/9
Fax : +255 22 2118253
Email : information@tic.co.tz

Northern Zone Office,
PO Box 7735 , Moshi, Kilimanjaro

Phone: + 255 27 2751066
Fax: + 255 27 2753316
Email: northernzone@tic.co.tz

Areas of Investment in Zanzibar
Following are sector and areas, which are open for private investment:
  • AGRICULTURE
    This sector includes the following areas:
    1. Fruits
    2. Horticulture
    3. Spices
    4. Sugar
    5. Rubber
    6. Food
  • LIVESTOCK AND ANIMAL HUSBANDRY
    Dairy farming
  • FISHERIES
    1. Deep sea fishing
    2. Fish farming
    3. Sea-weed Farming
  • TOURISM
    1. 1st Class Hotel (4-5 Star, or on capital room ratio between US$ 10,000 - 15,000).
    2. 1st Class Restaurant
    3. Tourist related services
    4. Game fishing
    5. Tour operator? (with exception of ground handling).
  • INDUSTRIES
    1. Manufacturing
    2. Processing
    3. Assembling plant
    4. Construction and maintenance
  • TRANSPORT AND COMMUNICATION
    1. Transport by Air
    2. Transport by Sea
    3. Telecommunication
  • SERVICES
    1. Health
    2. Education
    3. Financial
    4. Import and Export
    5. Bakeries, Confectioneries and ice cream making (whole sale only).
  • AREAS RESTRICTED TO FOREIGN INVESTORS
    Barbershops, Hairdressing, Beauty saloons and Retail shops.