By Africa Risk Control (ARC) – Tanzania has in recent years made major strides in positioning itself as a destination for foreign direct investment (FDI) by streamlining regulations, improving infrastructure, and offering incentives in key high-growth sectors.
According to data from the Tanzania Investment Centre (TIC), 2024 saw 901 registered investment projects worth roughly US$ 9.31 billion, creating over 212,293 jobs.
To achieve its goal of attracting US$ 15 billion in new investments in 2025, the government is doubling down on sectors with strong potential.
Here are the key sectors driving investment in Tanzania:
Manufacturing & Industrialization
Manufacturing leads in project registrations, contributing about 42 % of all investment projects in 2024.
Cement, steel, textiles, beverages, and agro-processing are among the areas with strong investor interest. Incentives like special economic zones (SEZs), tax breaks, and improving energy supply are helping reduce costs and risk.
Agriculture and Agro-Processing
Agriculture remains foundational, employing large portions of the rural population and contributing nearly one-quarter of GDP.
The government’s focus is on value addition: crop processing, edible oils, dairy, leather, and improving supply chains. Irrigation, cold chain logistics, and export opportunities in crops like cashew, coffee, rice remain especially promising.
Transport & Infrastructure
Transport infrastructure — including new railways, road networks, and ports — plays a critical enabling role. For example, the Standard Gauge Railway (SGR) and ongoing efforts in real estate and logistics infrastructure provide both immediate construction and long-term connectivity value.
Energy & Clean / Renewable Energy
With industrialization accelerating, demand for reliable power is surging. Tanzanian projects in hydropower (notably the Julius Nyerere Hydropower Plant), solar, wind, natural gas, and rural electrification are being prioritized. Investors are drawn to large-scale energy generation and distribution, plus clean energy projects that align with global climate goals.
ICT, Financial Services & Tourism
The ICT sector is expanding rapidly: mobile money, fintech, and internet penetration are rising.
Tourism remains a strong foreign exchange earner, with growth in hotel and leisure infrastructure, eco-tourism, and connectivity improvements.
Implications & Challenges
While the opportunities are strong, investors still face hurdles: inconsistent infrastructure, power supply issues, weak cold chain logistics in agricultural supply, and bureaucratic delays in permits.
There are also land tenure uncertainties and regulatory risk in some sectors. For maximum return, investors should pair sector selection with careful due diligence, local partnerships, and risk intelligence.