DAR ES SALAAM, Tanzania — Tanzania says it has recorded its strongest investment performance since independence under the ongoing Third National Five-Year Development Plan (FYDP III; 2021/22–2025/26), with authorities reporting record project registrations, rising foreign direct investment inflows and rapid expansion of industrial parks and Special Economic Zones (SEZs).
According to the Tanzania Investment and Special Economic Zones Authority (TISEZA), investment project registrations reached historic levels for two consecutive years, with 901 projects worth more than 9 billion US dollars registered in 2024, surpassing the previous record of 886 projects worth 8.2 billion US dollars set in 2013.
The momentum continued in 2025, when Tanzania registered 927 projects valued at more than 10 billion US dollars, marking the highest investment level ever recorded in the country.
TISEZA Director General Gilead Teri said the performance reflects improved confidence among both domestic and foreign investors following reforms introduced under President Samia Suluhu Hassan’s administration to improve the business climate and modernise investment systems.
He said the government has implemented a range of reforms, including the Investment Act of 2022 and institutional restructuring that merged the former Tanzania Investment Centre (TIC) and the Export Processing Zones Authority (EPZA) into TISEZA to streamline investment facilitation and improve efficiency.
The authority reported that domestic investment projects increased from 394 during the Second Five-Year Development Plan (2016/17–2020/21) to 965 during the current plan period, representing a 145 percent increase. Over the same period, foreign direct investment inflows rose from 615 to 1,302 projects, an increase of 112 percent.
“All these trends tell me that implementation of the Third National Development Plan covering 2021/22 to 2025/26 has been fully achieved with remarkable progress in terms of investments and job creation,” Teri said.
According to TISEZA, more than 648,000 jobs were created during the current development plan period, compared with 246,000 jobs recorded under the previous five-year plan.
The government has also lowered the minimum investment capital threshold for domestic investors from 100,000 US dollars to 50,000 US dollars and expanded services through the One Stop Facilitation Centre aimed at simplifying registration procedures and accelerating approvals for investors.
Teri said local investors have increasingly expanded into agro-processing, food and beverage production and manufacturing, while foreign investors continue to contribute capital, technology, management expertise and access to international markets.
He noted that Tanzania has experienced diversified sectoral investment growth, with manufacturing, energy, agriculture, mining, tourism, transport and logistics emerging among the leading sectors attracting investors.
As Tanzania prepares to implement its National Development Vision 2050, TISEZA said it aims to register annual investment projects worth 30 billion US dollars by 2030, with the private sector expected to contribute about 70 percent of the country’s economy.
The authority also plans to attract investments worth 15 billion US dollars this year alone.
Alongside rising investment inflows, the government has accelerated development of industrial parks and Special Economic Zones as part of its industrialisation strategy. According to TISEZA, the number of SEZs increased from one — the Benjamin Mkapa SEZ — to 34 during the implementation of the current development plan, while industrial parks expanded from nine to 55.
Teri said 16 of the SEZs are owned by TISEZA, four by local government authorities, two by parastatal institutions and 12 by private investors.
“The increase in number of SEZs signals growing investor confidence and renewed momentum among public institutions and local authorities in allocating land for industrial development,” he said.
He noted that most SEZs are currently dominated by investors from China and India, while participation by Tanzanian investors remains relatively limited.
“This situation underscores the need to deliberately encourage and empower local investors to actively participate in the SEZ ecosystem,” Teri said, adding that stronger domestic participation would help increase job creation, foreign exchange earnings and value addition within the economy.
Investors operating within SEZs and industrial parks are eligible for both fiscal and non-fiscal incentives, including exemptions on corporate income tax, VAT and import duties on capital goods and machinery, as well as the free repatriation of profits after payment of applicable taxes.
To further support industrial development, TISEZA has launched a national investment promotion campaign targeting five strategic SEZs — Buzwagi, Nala, Benjamin Mkapa, Kwala and another Buzwagi-linked zone — focusing on sectors such as agro-processing, fast-moving consumer goods, textiles and garments, pharmaceuticals and motor vehicle assembly.
Economists and business analysts attributed Tanzania’s growing investment appeal to infrastructure expansion, policy reforms and regional trade integration initiatives.
Economist and investment banker Hildebrand Shayo said Tanzania’s business-friendly orientation, legal and regulatory reforms and relatively stable investment environment have increasingly positioned the country as an attractive destination for investors.
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He said major infrastructure projects, including roads, airports, ports and the electrified Standard Gauge Railway (SGR), are strengthening Tanzania’s role as a regional trade and logistics hub.
The SGR railway begins at the Indian Ocean port city of Dar es Salaam and extends inland through key commercial centres including Morogoro, Dodoma, Tabora, Kigoma and Mwanza. Tanzania is also partnering with Burundi on a cross-border electric railway linking Kigoma Region with Musongati in Burundi.
Analysts said Tanzania’s geographical position — bordering eight countries and providing access to the Indian Ocean through the ports of Dar es Salaam and Mtwara — continues to strengthen its importance within both the East African Community (EAC) and Southern African Development Community (SADC).
Economic diplomacy expert Professor Kitojo Wetengere said Tanzania’s regional cooperation efforts and joint infrastructure projects with neighbouring countries have reinforced its image as a gateway to EAC and SADC markets.
Business expert Sylvester Jotta attributed the country’s investment growth to predictable business policies, legal reforms and the government’s decision to place investment coordination under the President’s Office through the Ministry of Planning and Investment.
Meanwhile, local investors also expressed confidence in the business environment. Akberalis Hardware and Electric Limited founder Akberalis Jozer said the company, which manufactures aluminium ladders and polypropylene ropes in Dar es Salaam, has continued operating smoothly under what he described as improved governance and reduced bureaucracy.