(Bloomberg) -- Foreign investment in Tanzania is expected to grow by a third next year as President Samia Suluhu Hassan’s pro-business stance helps reverse the impact of her predecessor’s policies that antagonized investors.
Authorities expect to receive foreign direct investment inflows of around $2.5 billion this year and $3 billion in 2025 from $2.2 billion last year, according to Tanzania Investment Center’s executive director, Gilead Teri.
“We’re heading toward another record-breaking year in investment growth in Tanzania under President Samia,” Teri said in an interview.
TIC expects investment interest for projects valued at $8 billion this year from $5.4 billion in 2023. The nation attracted $3.7 billion in 2021 when Hassan took over following President John Magufuli’s demise. Her pro-business agenda has included stepping up foreign visits to woo investors, engaging local businesses and simplifying the tax regime.
Magufuli, who was nicknamed ‘The Bulldozer’ for his aggressive leadership style, enacted controversial reforms that put his administration on a collision course with foreign investors. In 2017, the nation demanded Barrick Gold Corp.’s local unit pays a $190 billion tax bill, but later settled for $300 million.
Logistics Investment
TIC expects inflows into sectors such as manufacturing, logistics, real estate, tourism and agriculture. “On average, it takes three years for the full extent of the investment figure to be realized, which means that at least one third of investment is verified to flow within the first year,” Teri said.
An improved Dar es Salaam port, which is now being partly managed by global operator DP World Ltd., has had a positive impact on investment inflows, he said.
“The surge in logistics investments such as transport and warehousing for the regional transit trade, is the follow-through of efficiency gains at the Dar es Salaam port after the DP World investment,” he said.
The Dubai-based company signed a 30-year agreement in October 2023. Tanzania also awarded Adani Ports and Special Economic Zone Ltd. of India a similar concession to operate its main container and upgrades its key infrastructure.
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