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Home Biashara

Tanzania attracts investment projects worth $20.3B in 2yrs

Reforms and investor incentives fuel record foreign inflows

Ally Mayala by Ally Mayala
January 23, 2026
in Biashara
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DODOMA, Tanzania: Tanzania registered 1,828 investment projects valued at about $20.31 billion (around 50.37 trillion shillings) between 2024 and 2025, the Tanzania Investment and Special Economic Zones Authority (TISEZA) said, reflecting robust investment activity as regulatory reforms continue to improve the business climate.

The figures, disclosed by TISEZA board chair Ambassador Dr Aziz Mlima during an official visit to Geita Region, cover 901 projects worth $9.31 billion in 2024 and 927 projects valued at around $11 billion in 2025.

The investments are expected to generate thousands of jobs and demonstrate sustained interest from both local and international investors, TISEZA said.

Ambassador Dr Aziz Mlima
Ambassador Dr Aziz Mlima

TISEZA data shows the number of registered projects and capital inflows have risen markedly over recent years, with the total value of approved foreign and domestic investment capital nearly tripling to about $10.95 billion in 2025 compared with $3.7 billion in 2021.

Foreign direct investment and sector trends

Foreign direct investment has been a key driver of the surge in overall project registrations, with significant inflows into manufacturing, construction and transport sectors, and notable involvement from investors in the United Arab Emirates, China and India.

In the third quarter of the 2025/26 fiscal year alone, 201 projects worth about 6.18 trillion shillings (approximately $2.5 billion) were registered, with foreign investors accounting for a large share of capital.

TISEZA’s quarterly data also shows export‑oriented projects, including in Special Economic Zones (SEZs), gaining traction, signalling growing confidence among long‑term investors.

Regulatory reforms aim to improve business climate

Tanzania has been implementing a Blueprint for Regulatory Reforms to Improve the Business Environment, an official government framework aimed at addressing regulatory bottlenecks and making it easier to start and operate businesses.

The blueprint, developed with input from public and private stakeholders, highlights key challenges in the business environment and recommends reforms to simplify licensing, reduce costs and eliminate unnecessary regulatory barriers.

An Impact Assessment Report on the blueprint, launched by the government in September 2024, noted progress in streamlining processes and reducing bureaucratic inefficiencies, and emphasised continued cooperation between regulators and the private sector.

The then Prime Minister Kassim Majaliwa said the report reflects the government’s commitment to fostering a more conducive investment climate and positioning Tanzania as a regional investment hub.

Since the blueprint’s implementation in 2018 and the subsequent Action Plan in 2019, authorities have removed hundreds of redundant fees and charges that previously hampered business activity, easing procedures such as port consignment clearance and licensing.

The reforms are widely viewed as contributing to improved investor confidence and stronger economic engagement.

In a further push to enhance the regulatory environment, the government has recently launched planning for a second phase of the blueprint (Blueprint 2) to tackle remaining challenges and deepen collaboration between the public and private sectors, officials said.

Government investment promotion efforts

Alongside regulatory reform, the establishment of TISEZA under the Investment and Special Economic Zones Act of 2025 has centralised investment promotion, merging previous agencies into a single authority.

This restructure aims to streamline investment approvals through a One‑Stop Facilitation Centre that digitises and consolidates application processes, reducing bureaucratic delays for both local and foreign investors.

Tags: Business DevelopmentEconomic GrowthEconomic ReformsForeign InvestmentInfrastructureInvestor IncentivesTanzania

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