DAR ES SALAAM, Dec 27 (NNN-DAILYNEWS) — THE year 2024 is shaping up to be a landmark year for investments in Tanzania, with the Tanzania Investment Centre (TIC) reporting a significant increase in project registrations.
Here, a total of 842 new projects have been registered, reaching 84.2 per cent of the ambitious target of 1,000, compared to 526 projects registered in 2023.
This surge represents a remarkable boost in the country’s economic growth and demonstrates strong interest from both local and international investors in Tanzania’s emerging market. With this momentum, 2024 is expected to be remembered as a defining year for the nation’s investment landscape.
The registered projects in 2024 are valued at 7.7 billion US dollars (over 18tri/-) and are expected to create over 204,000 jobs.
During a recent press conference, TIC Executive Director Gilead Teri attributed the impressive progress to an improved business climate under the new Investment Act of 2022.
This law offers incentives to investors, ensuring they receive favourable returns. “2024 will be a record year for project registrations, surpassing any year since independence,” he stated.
In 2021, Tanzania registered projects worth 3.7 billion US dollars (about 9tri/-), while in 2023, 526 projects valued at about 14 trillion shillings were registered, compared to 293 projects worth over 10 trillion shillings in 2022.
The new Investment Act of 2022 provides fiscal incentives for expansion and rehabilitation projects, allowing investors to enjoy import duty exemptions for capital goods such as machinery and plants.
Additionally, deemed capital goods can access a 75 percent import duty relief, while non-fiscal incentives include capital protection under the TIC.
The Act also lowered the capital threshold for domestic investors from 100,000 US dollars (242m/-) to 50,000 US dollars (121m/-).
Teri praised President Samia Suluhu Hassan for her continued efforts to promote investment, particularly through economic diplomacy, which has encouraged both local and foreign investors to invest in Tanzania.
He also highlighted the strengthened collaboration between the government and the private sector, which has contributed to job creation and overall economic growth.
He noted that the investment sector plays a crucial role in boosting trade, generating revenue, and transferring technology.
Out of the registered projects, 768 are new, and 44 are expansion projects. In terms of ownership, 290 are domestic investments, 367 are foreign direct investments (FDIs), and 155 are joint ventures.
The manufacturing sector led in attracting investment, with 377 projects worth 3.1 billion US dollars (about 7.5tri/-), followed by the transport sector with 138 projects valued at 1.2 billion US dollars (about 3tri/-).
Teri noted that the manufacturing sector’s 377 projects suggest that, on average, one new firm is registered every month. Other sectors attracting significant investments include real estate construction, with 91 projects worth 706 million US dollars (1.7 tri/-), and tourism, with 76 projects worth 338 million US dollars (about 818bn/-).
The agriculture sector recorded 66 projects worth 600 million US dollars (about 1.4tri/-). — NNN-DAILYNEWS
