5G in Africa: What’s its potential, Selasi Ahorlumegah?
Naa Oyoe Quartey
With its fast speeds and revolutionary potential, 5G stands out as a noteworthy milestone in the field of […]
Tanzania doubles FDI year-on-year
FILE PHOTO: Tanzanian President Samia Suluhu Hassan speaks during a meeting at the White House in Washington, U.S., April 15, 2022. REUTERS/Elizabeth Frantz/File Photo
Tanzania experienced a twofold increase in Foreign Direct Investments (FDI) during the third quarter of 2023 compared to the corresponding period in 2022.
The East African country witnessed a year-on-year FDI surge between July and September 2023, reaching $1.05 billion, in contrast to $524.4 million in the same period the previous year.
Released by the state-run Tanzania Investment Center (TIC) and reported in The East African publication, these statistics highlight a substantial advancement in Tanzania’s FDI objectives. The nation has set ambitious targets of $15 billion in FDI inflows by 2025 and $30 billion by 2030.
According to the TIC report, this surge is attributable to investor confidence in the East African state. Simultaneously, the report revealed that the increase in FDI was counterbalanced by a significant decrease in local investments, leading to a 14% reduction in new investment capital during the reviewed period, declining from $2.41 billion to $2.06 billion.
“FDI accounted for 51 percent of the new investments, compared to 49 percent for domestic investments, which experienced a first-quarter turnover decrease from $1.91 billion in 2022 to $1.01 billion this year. Almost half ($480.38 million) of the new FDIs were directed towards the real estate sector, and another $245.58 million was allocated to manufacturing projects,” states The East African report.
“In contrast, domestic investors exhibited more interest in ventures related to agriculture ($420.25 million), economic infrastructure ($212.52 million), and transportation ($178.32 million),” the publication added.
Tanzania’s pursuit of growth Tanzania’s upswing in FDI is in line with the administration’s commitment to collaboration with global entities.
President Samia Suluhu Hassan has spearheaded a business-focused administration, emphasising the creation of a conducive environment to attract foreign investors while supporting local investments.
Throughout the year, the administration has forged significant partnerships with countries worldwide, from South Korea to China and Australia. President Samia Suluhu Hassan continues to prioritize attracting foreign businesses, with the goal of elevating Tanzania to a global economic powerhouse. The International Monetary Fund has even projected that Tanzania’s economy is on track to surpass that of East Africa’s second-largest economy, Kenya.
President Samia Suluhu Hassan also places emphasis on intra-EAC partnerships, having closed deals with neighboring countries, including agreements with Burundi to construct an interconnected electric railway and with Kenya for a $1 billion energy project, among other regional collaborations.
