Tanzania Investiment Guide

Table of Contents


There are several risks associated with business investment. You already shoulder a heavy load of duties as a businessman. You may focus on your business while the rest is taken care of with the assistance of a qualified business investment expert.

We at Bill and Williams Advocates provide Tanzanian business investment consultancy services that will aid you in achieving your professional objectives. Our business investment counseling department includes a group of knowledgeable consultants who will guide you through each step to ensure the success of your enterprise. We are professionals who understand what it takes to assist a company like yours in investing in Tanzania.

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Why Invest in Tanzania

Tanzania is blessed with a variety of natural resources, providing investors with fantastic investment options. These include a favorable geographic location (six landlocked countries rely on Tanzania ports as their least expensive entry and exit ports), arable land, internationally renowned tourist destinations (Serengeti, Kilimanjaro, Ngorongoro, and the Spice Islands of Zanzibar), natural resources, a sizable domestic and subregional market, a broad local raw materials supply base, an abundance of affordable skills, assurance of personal safety, warm and hospitable people, and a suitable suitable market policy orientation.

Without a question, Tanzania is a fantastic destination to invest in Africa right now. You are invited to investigate the limitless investment and business opportunities available.

Reasons Why you should Invest in Tanzania

The following are some of the main justifications for investing in Tanzania. The topography of the nation is quite advantageous. Tanzania stands between the ocean and six landlocked nations (Uganda, DRC, Rwanda, Burundi, Zambia, and Malawi) that depend on Tanzania for the transportation of goods. Tanzania is immediately connected to the Indian Ocean, providing it trading linkages to Asia. The nation’s three deep water ports—Dar es Salaam, Tanga, and Mtwara—serve the neighboring boring nations. Tanzania is a natural transportation hub for East and Central Africa due to its strong rail and road networks, membership in the SADC Free Trade Area, and EAC Common Market.

Tanzania is a natural hub for economic activity in the East African region in addition to being a site for the transit of products because of its strong internal production capacities, which are supported by a wealth of natural resources, such as extensive arable land areas and mineral deposits.

A 1,424-kilometer coastline, vast arable land, world-class tourist sites, minerals, oil, and gas are just a few of the natural riches Tanzania is blessed with. Opportunities exist in agro-production and agro-processing, livestock farming, and the processing of livestock products such as meat, milk, and leather due to the availability of arable land, favorable weather, ground conditions, and surface water.

Both precious gemstones and minerals are abundant in Tanzania. Gold, iron, silver, copper, platinum, nickel, limestone, soda ash, gypsum, salt, phosphate, and tin are among the minerals that can be found in Tanzania. Tanzania is home to several different types of precious stones, including sapphire, ruby, emerald, spinel, tanzanite, alexandrite, tourmaline, zircon, aquamarine, tsavorite, spessartite, rhodolite, and demantoid garnet. Tanzania has become one of the region’s top producing nations of gemstones.

The recent discovery of huge natural gas reserves may have the greatest economic transformational impact. The discovery and production of gas reserves are still very much in their infancy, but they have a very bright future.

High level of investment security resulting from unrivaled political stability, which is conflict-free and devoid of ethnic division; democratic governance which respects diversity of opinion; and a strong tradition of constitutionality and rule of law.

Low inflation (4.2%), stable exchange rates, and macroeconomic stability that is business-friendly are maintained by the unlimited and unconditional transferability of profits, loan repayments, emoluments, royalties, fees, and modifications.

reduced red tape thanks to the renowned services of the Tanzania Investment Centre, a one-stop government facilitation center for registered investors and enterprises;

The most advantageous geographic location of Tanzania is quickly becoming the most efficient entrance point and gateway for trade into Eastern, Southern, and Central Africa.

Investment assurances, dispute resolution, and Tanzania offers a guarantee against political risks, nationalization, and expropriation for investments.

Any foreign company doing business in Tanzania is eligible to apply for credit from local financial institutions up to the capped amounts set by the Bank of Tanzania. In Tanzania, major banks have also made investments.

Investiment Opportunities in Tanzania

The nation anticipates becoming an industrialized, middle-income nation by 2025. In line with this strategy, we have made the decision to give building a solid industrial base more importance. In order to encourage export trade, Tanzania established Special Economic Zones (SEZs) and Export Processing Zones (EPZs) as pools of industrial growth and services. While the SEZ program covers agriculture, trade, tourism, mining, and forestry, the EPZ program promotes investment in the industrial sector, particularly for export.

  • Industry of sugar (considering a demand gap currently met through imports).
  • Increasing the production of edible oil (there is a need to reduce dependence on imports).
  • Manufacturing of meat, fish, fruit, vegetables, oils and fats
  • Manufacturing of dairy products; manufacturing of grain mill products, starches and starch products, and prepared animal feeds
  • Manufacturing of other food products (e.g., bread, sugar, chocolate, pasta, coffee, nuts, and spices)
  • Tanzania relies entirely on imported automobiles, such as passenger cars.
  • Natural gas, soda ash, and other minerals required by the petroleum, gas, and chemical industries have been discovered in Tanzania
  • Tanzania imports 60 percent of its edible oil in 2015.
  • Tanzania is one of the 20 countries that will offer the largest prospects for consumer products companies globally in the near future, notably for food and beverages.

Tanzania has risen to the top of the African economies in terms of attracting FDIs. Tanzania is rich in a wide range of industrial minerals, precious metals, and gemstones. Iron ore, soda ash, coal, clay soil, uranium, gold, diamond, and tanzanite are among them.

  • Precious metals and gemstones processing
  • Construction of a caustic soda refinery in Engaruka.
  • Iron ore and steel production in Liganga
  • Nickel processing in Kabanga; Uranium extraction in Mkuju
  • Mineral smelters are being built.
  • Mineral exports accounted for USD 1.37 billion (or 24 percent) of Tanzania’s overall export value in 2015, with gold accounting for more than 90% of the total.

Tanzania has a diverse range of industrial minerals, precious metals, and gemstones, including iron ore, soda ash, coal, clay soil, uranium, and gold. Tanzania also possesses a diverse range of gemstones, including aquamarine, garnet, ruby, sapphire, tourmaline, and tanzanite.

  • The majority of these resources are exported in their unprocessed state, depriving the country of work.

This sector is critical to Tanzania’s industrialization since it provides markets for industrial products as well as raw materials. Tanzania has 44 million hectares of arable land, including 29.4 million hectares suited to irrigation.

  • Engaging in large-scale commercial cultivation of crops like sugarcane, rice, wheat, coffee, tea, sunflower, pulses, floriculture, cotton, sisal, grape, and maize. Sugarcane planting and production are aided by abundant water resources, favorable weather conditions, and a large market potential
  • Development of out growers to supplement the supplies of raw materials for the industries as suitable
  • Huge potential for investment in agro-industries and agro-processing
  • Irrigation system expansion and enhancement; agricultural cultivation R&D improvement. Agriculture employs about 67 % of the employed population and remains central to Tanzania’s industrialization as it provides markets for industrial products and raw materials for industries
  • Tanzania has the second largest livestock population in Africa;
  • Less than 1% of all meat is processed locally, while vast quantities of processed meat are imported
  • Freshwater cover is estimated to be 54,337 square kilometers, or about 6.1 percent of the total country’s surface area;
  • Tanzania has the second largest livestock population in Africa, with less than 1% of all meat processed locally while vast quantities of processed meat are imported.
  • Freshwater cover is estimated to be 54,337 sq km, or around 6.1 percent of the total country’s surface area.

From the present 300,000 tons per year, the sugar supply shortfall is expected to grow at a rate of 6% per year

  • Tanzania currently has four sugar plantations that produce a total of 300,000 tons of sugar per year and are operating at full capacity.
  • Tanzania currently has four sugar plantations that produce a total of 300,000 tons of sugar per year and are operating at full capacity
  • Tanzania has one of the greatest average cane yields in the world, at 120 tons per hectare
  • Tanzania has one of the best irrigation potentials in the sub-region, thanks to abundant rainfall and bountiful rivers fed by the high hinterland plateaus

In target sugar zones, the soil and topography are excellent for industrial sugarcane cultivation.

  • Tanzania spends more than $150,000 per year on edible oil imports. Tanzania is reliant on imported edible oil due to a lack of sophisticated mechanical extraction equipment and inadequate ways to boost agricultural output.
  • Tanzania contains sunflower, cotton, groundnuts, soya beans, and palm trees, which can be utilized to underpin a competitive edible oil industry in the country and regional market with enhanced production and productivity.

Tanzania’s tourism industry accounts for around 24% of exports and 17.2% of GDP. This is a rapidly expanding industry with numerous investment prospects.

Construction of Tourist Hotels in towns, game parks, and along the 850-mile coast line of mainland Tanzania and the gorgeous coastlines of the spice Island of Zanzibar are all regions where tourism offers plenty of investment prospects.

  • The creation of recreational parks.
  • Golf course construction.
  • Investing in tourism-related convention facilities.
  • Air and land transportation.
  • Sea and lake cruising, as well as tour operations and trophy hunting.
  • Ecotourism development, beach tourism, cultural and historical places
  • Tanzania is the only country in the world that has set aside more than a quarter of its total land area for the conservation of wildlife and other natural resources.

There are 16 National Parks, 28 Game Reserves, 44 Game Controlled Areas, 1 Conservation Area, and 2 Marine Parks in Tanzania. • Tanzania’s wildlife resources are among the best in the world and have long been well-known.

In 2014, the industry continued to thrive, as evidenced by an increase in international tourist arrivals to 1,140,156 from 782,699 in 2010. As a result, tourism revenue climbed from USD 1,254.50 in 2010 to USD 2,006.32 million in 2011.

The services sector, notably ICT, which is one of Tanzania’s fastest-growing sub-sectors, offers great opportunities. In the previous ten years, Tanzania’s communications market has experienced remarkable expansion and transformation. The ICT market has expanded in terms of subscribers, service variety, and geographic coverage.

  • Provision of mobile services, particularly in rural areas, as urban penetration is higher.
  • Network/data value-added services provision and operation (internet, voice mail, electronic mail services).
  • Telecommunications facility repair and maintenance
  • There is a lot of room for financial institutions, microfinance banks, investment banks, agricultural banks, and commercial banks.
  • In December 2015, there were roughly 39,808,4196 mobile customers in the market, compared to 2,963,737 in 2005.
  • In December 2014, penetration was 67 percent, up from 10% in 2005.
  • By December 2015, there were around 16,280,943 Internet service subscribers, up from 3,563,732 in 2005.

Tanzania has a total size of 945,037 square kilometers. Freshwater cover is predicted to be 54,337 square kilometers, or around 6.1 percent of the country’s total surface area. The country has a 64,000-square-kilometer Territorial Sea, a 223,000-square-kilometer Exclusive Economic Zone (EEZ), and a 1,424-kilometer stretch of Indian Ocean coastline, as well as other inland water bodies (major and minor lakes, rivers, dams, ponds, and wetlands) covering about 5,000 square kilometers. Lake Victoria (shared with Kenya and Uganda), Lake Tanganyika (shared with Burundi, DRC, and Zambia), and Lake Nyasa are the country’s three major interior lakes (shared with Malawi and Mozambique). Establishment of fishing port and fishing in the Exclusive Economic Zone,

  • Establishing sophisticated fishing boat building yards and fish processing units.
  • Establishment of eco-tourism and dry-docking facilities.
  • Mafia Island has around 3000 hectares suited for shrimp cultivation.
  • Commercial fish cage culture in both marine and freshwater environments
  • Freshwater species such as Tilapias, African Catfish, Rainbow Trout, and Freshwater Prawns • Cultured species such as Mud crabs, Oysters, Grouper, and Scallops for mariculture
  • Formulated fish feeds and live fish food production (eg. Earthworms)
  • Deep sea fishing, fish processing, value addition in fish and other fisheries products, cold chain, fishing equipment and accessory manufacture
  • Establishing sophisticated fishing boat building yards and fish processing units.
  • Establishment of eco-tourism and dry-docking facilities.
  • Mafia Island has around 3000 hectares suited for shrimp cultivation.
  • Commercial fish cage culture in both marine and freshwater environments
  • Freshwater species such as Tilapias, African Catfish, Rainbow Trout, and Freshwater Prawns • Cultured species such as Mud crabs, Oysters, Grouper, and Scallops for mariculture
  • Formulated fish feeds and live fish food production (eg. Earthworms)
  • Tanzania generated US$ 195.2 million per year from fish and fisheries goods exports between 2005 and 2010.
  • Lake Victoria (shared with Kenya and Uganda), Lake Tanganyika (shared with Burundi, DRC, and Zambia), and Lake Nyasa are the country’s three major interior lakes (shared with Malawi and Mozambique).

Tanzania offers excellent natural resources for livestock production, including hardy livestock breeds, wide rangelands, and diversified natural vegetation. The country’s land resources total 88.6 million hectares, of which 60 million hectares are suitable for grazing.

  • Establishment of joint venture projects to modernize existing ranches with National Ranching Company (NARCO) and other privately owned ranches,
  • Establishment of new ranches (cattle, sheep, and goats) and farms (poultry and piggery)
  • Livestock fattening
  • Construction of modern slaughterhouses and processing factories;
  • Establishment of breeder farms for grand and parent stock
  • Establishment of animal feed processing plants to supply feeds to large local small and medium scale producers
  • Establishment of commercial layers and broiler farms
  • Establishment of broiler processing plants to serve as a hub/market for small and medium scale poultry production
  • Establishment of tanneries, footwear and leather goods production
  • Establishment of dairy farms and milk processing facilities
  • Investment in livestock farming, with a priority on beef, dairy, chicken, hides, and skins

Tanzania has a varied range of energy resources, including biomass, natural gas, hydro, coal, geothermal, solar and wind power, and uranium, much of which is still underutilized. Petroleum and electricity, which are commercial energy sources, account for roughly 8% and 1.2 percent of the primary energy used, respectively. Coal, solar, and wind make up less than 1% of the total.

  • Energy generation, transmission, and distribution from a variety of sources
  • Development, restoration, and expansion of power infrastructure
  • Construction of petroleum pipelines and petroleum products unloading terminals; development of upcountry storage and distribution facilities
  • Exploration and development of geothermal resources
  • Electrification of rural areas
  • Promotion of energy efficiency and conservation programs, as well as the development of new and renewable energy resources
  • Currently, electricity is available to 21% of the population, with 7.4% of the population living in rural areas
  • Tanzania’s power sector is dominated by Tanzania Electricity Supply Company Ltd (TANESCO), a single vertically integrated national utility. • The total grid installed generation capacity of both TANESCO’s power plants and private producers is currently at 1,438.24 MW. • TANESCO owns 561 MW of hydro power stations and 658 MW of thermal power plants.
  • Non-hydro renewable energy accounts for less than 5% of total power generation.

Wood-fuel contributes for up to 90% of total national energy consumption, with electricity accounting for 2% and petroleum products accounting for 8%.

Accommodation in Dar es Salaam and other cosmopolitan places is in short supply, owing to, among other things, the rapid expansion of economic projects, which has drawn a large number of people (both international and local) in need of a place to live. Investors may form a partnership with the National Housing Corporation (NHC), Tanzania Building Agency (TBA), or other private companies to supply residential and commercial building solutions. Development and management of housing estates

  • Constructing and managing residential flats
  • Constructing and managing residential flats
  • Developing and managing office buildings
  • Constructing and managing conference and banquet facilities
  • Constructing and managing shopping malls
  • Constructing and managing movie theaters and entertainment venues
  • Hotel development and management
  • Creating and managing mixed-use real estate projects
  • Providing home finance, and so on.

Half of Tanzania’s 45 million people are expected to move to cities in the next 20 years, thus more needs to be done in terms of housing loans and construction to fulfill the country’s ever-growing housing demands.

Investment Incentives in Tanzania

A range of services relating to licenses, permits, and permissions are available at the TIC One Stop Facilitation Centre.

the defense of noncommercial risks and respect for individual property. Tanzania is a participant in the MIGA (Foreign Investment Guarantee Agency) program of the World Bank (Multilateral Investment Guarantees Agency). Additionally, Tanzania belongs to the World Bank-affiliated International Centre for Settlement of Investment Disputes (ICSID). Project capital goods, computers and computer accessories, raw materials and replacement parts for agriculture, animal husbandry, and fishing, human and livestock pharmaceuticals and medications, completely knocked-down (CKD) motor vehicles, and inputs for producing pharmaceutics are all exempt from import duties.

10% import duty (on semi-processed or semi-finished goods).

Through a pay-and-refund system, excise duty paid on fuel purchased by eligible firms is now reimbursed.

100% of the capital investment will go to the mining and agricultural industries.

According to the Income Tax Laws, all fixed plant and machinery employed in manufacturing operations, fish farming, or providing services to tourists and in hotels are entitled for 50% capital allowances in the first year of use. The remaining items are then subjected to the following wear and tear rates: VAT Capital items for the project, such as machinery and plant, have been postponed. However, the person is required to carry out economic activity, maintain appropriate VAT records, and submit returns.

Having no unpaid taxes, and each capital goods unit requires at least twenty million shillings in VAT.

Negative effects of import taxes on components used to produce goods that are exported. Items produced or manufactured in Tanzania that are sold to foreign organizations or companies operating in Tanzania and are not charged import duties are deemed exports.

VAT is not applied to exports.

the freedom to transfer all money, profits, and foreign currency acquired outside of the country.

Automatic authorisation to employ up to five foreign nationals with Certificates of Incentives on the project.

Hotel equipment is exempt from import duties under the EAC Customs Management Act.

any of the following products imported by a hotel with a license for its use and imprinted, stamped, or marked with the hotel logo:

  • Washing machines
  • Kitchen Ware
  • Cookers
  • Fridges and freezer
  • Air Conditioning Systems
  • Cutlery
  • Televisions
  • Carpets
  • Furniture
  • Linen and Curtains
  • Gymnasium equipment
  • Zero-rated VAT on exports
  • The right to transfer outside the country 100% of foreign exchange earned profits and capital
  • Drawback on import taxes on materials used to make products for exports and considered exports. Deemed exports are items made or produced locally that are sold to international organizations or businesses operating in Tanzania and are excluded from paying import taxes.

Tanzania Country Overview

The United Republic of Tanzania was created in 1964 as a result of the union of the independent republics of Zanzibar and Tanganyika. 54,337 square kilometers of Tanzania’s 947,300 square kilometers are covered by inland water. Zanzibar Island is 1,657 km2, while Pemba Island is 984 km2. Tanzania, one of the five nations that make up East Africa, is situated south of the equator.

The Victoria and Nyasa Great Lakes, the Indian Ocean, and the Tanganyika region all encircle the mainland of Tanzania. Uganda, Burundi, Kenya, Rwanda, Zambia, Malawi, the Democratic Republic of the Congo, and Mozambique are the eight nations that border it. There are over 1,400 kilometers of shoreline there. Due to the fact that six of these nations are landlocked, Tanzania naturally provides access to the region.

From 2006 to 2014, Tanzania’s GDP grew by an average of 6.4 percent annually.

This growth track record is outstanding. It has consistently ranked among the top 20 fastest-growing economies in the world, exceeding the average growth rate for Sub-Saharan Africa, which is 5.2 percent. Overall, the outlook is positive, with consumption rising and per capita income rising at an average pace of 7%. The trade imbalance alerts potential investors that there is great opportunity for the European Union (EU), the United States of America, and South Africa, to mention a few, to explore and take advantage of current duty-free market opportunities. Exports rose by about 90% over a ten-year period, while imports rose by 70%.

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