TANZANIA

  • September 7, 2016

Tanzania formally the United Republic of Tanzania is a nation in East Africa in the African Great Lakes region. It is surrounded by Kenya and Uganda to the north; Rwanda, Burundi and the Democratic Republic of the Congo to the west; and Zambia, Malawi and Mozambique to the south. The country’s eastern border is shaped by the Indian Ocean. Kilimanjaro, Africa’s highest mountain, is in northeastern Tanzania.

Tanzania is one of the emerging countries whose economy hang on agriculture. The sector accounts for almost half of GDP, provides 85% of the country’s exports and employs 80% of the total workforce. On the other side, the industrial sector traditionally structures the processing of agricultural products and light consumer goods.

Investment Opportunities in Tanzania

Tanzania is an emerging economy with a very high growth potential. Whilst the economy is comparatively expanded, a number of opportunities remain unexploited in many sectors. These investment opportunities have been divided into two categories: the Lead Sectors and the Priority sectors.

The Lead Sectors include: Agriculture and Agro-based Industries; Mining; Petroleum and Gas; Tourism, and Infrastructure. The Priority Sectors include: Energy, Manufacturing, Chemical Industries, Natural Resources (Fishing & Forestry), Construction and Real Estate Development, Management Consultancy, Human Resource Development (Hospitals, Health Centers, and Educational Facilities), Radio and Television Broadcasting and Export Oriented Projects.

Agribusiness

Tanzania tells about its immense latent for the agribusiness sector. Tanzania has brilliant potential for agriculture-led economic growth. The nation has plentiful land and water resources, interested agricultural entrepreneurs, and entrance to international markets through a major port. Women contribute along the entire value chain and are engaged and authorized as beneficiaries. The climate is promising for a variety of crops and with increased irrigation and better-quality seeds, productivity and yields could quickly increase.

Telecom and ICT

The prospective in telecom and ICT in Tanzania remains largely unexploited. But the potential is too abundant to ignore and drive in the sector has already displayed that the country is on the right track. The government has poured large amounts of capital and energy into the National Fiber Optic Cable network known as the National ICT Backbone (NICTBB).

The sector will also do well from government and non-governmental investment in educational programs, counting laptop distribution, e-learning, and training centers.

Real Estate

The energy industry, and a complete growing interest in Tanzania, energies this sector. Foreign investors are increasingly becoming fascinated by real estate players in the market.

Tanzania’s roads and railways are not the greatest in the region, but the government is making a vigorous struggle to change that with the support of development finance institutions (DFIs).

The mounting enhancement in roads and railways across East Africa unlocks occasions  for logistics in a country where urbanization stands at about 30 percent, and many farms work at a momentous distance from the ports in Dar es Salaam. Fuel and electricity prices have undermined logistics and warehousing generally in Africa, but the changing dynamics around these two factors in Tanzania in the near future should lift returns. Prices for both fuel and electricity should slowly starting lessening with new investments in each sector. As they drop, manufacturing and industrials will raise, giving way to a call for logistics and warehousing for a multitude of sectors.

Investors Corner

Tanzania own vast natural resources and is gifted with exceptional comparative advantages thus proposing remarkably striking opportunities to investors. After three decades of a centrally planned and state run economy, Tanzania has now privatized state-owned business enterprises, liberalized all spheres of economic activity and put in place a business-friendly environment, which is supported by a strong empowering and facilitative framework.

Tanzania is also purposefully positioned as it delivers an entrance to six landlocked neighbouring countries. Therefore business opportunities in Tanzania go outside its borders, by considering the East African Community (with almost 90 million people), SADC (300 million people), EU (through Everything But Arms initiative), US market through the African Growth and Opportunity Act (AGOA) window, and Chinese market through Special Preferential Tariff Agreement with China. In all these markets products from Tanzania obtain either relatively low tariff or tariff free treatment.

A lot in Tanzania, in the end, is about potential. But investing in Africa in general is about buying into the big picture. It will not be a speedy stroke of the paint brush but a few strokes could make a masterpiece.

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