ABOUT THIS COUNTRY
Tanzania is an East African country known for its vast wilderness areas. They include the plains of Serengeti National Park, a safari mecca populated by the “big five” game (elephant, lion, leopard, buffalo, rhino), and Kilimanjaro National Park, home to Africa’s highest mountain. Offshore lie the tropical islands of Zanzibar, with Arabic influences, and Mafia, with a marine park home to whale sharks and coral reefs.
The economic outlook is positive, with real GDP projected to grow 4.1% in 2021 and 5.8% in 2022, due to improved performance of the tourism sector and the reopening of trade corridors. Energy and fuel price increases are expected to persist in 2021, raising overall inflation to 3.9% in 2021 and 3.4% in 2022. Spending on large infrastructure projects and depressed revenue performance are expected to widen the fiscal deficit to 3.2% of GDP in both 2021 and 2022, financed mainly by external borrowing. The current account deficit is projected to grow to 3.9% of GDP in 2021, due to the lingering effects of COVID–19 on merchandise exports and increased imports of capital goods for large infrastructure projects. It is expected to narrow to 3.3% of GDP in 2022. The major downside risks to the outlook include business regulatory bottlenecks that constrain private sector activity and uncertainties regarding the pandemic. Poverty and unemployment are expected to remain high due to depressed private sector activity.
Reasons to invest in Tanzania:
- High degree of investment security because of unparalleled political stability that is strife-free without ethnic division; democratic rule that respects diversity of opinion and a strong tradition of constitutionality and rule of law;
- Business-friendly Macro-Economic Stability with low inflation (4.2%), stable exchange rates supported by unrestricted and unconditional transferability of profits, loan repayments, emoluments, royalties, fees and changes;
- Simplified bureaucracy, streamlined through the acclaimed services of the Tanzania Investment Centre which is a one-stop-facilitation agency of government serving registered investors and businesses;
- Successful economic liberalization measures commended by both the World Bank and the IMF with business-supportive legislation continually being improved through genuine dialogue between government and the private sector;
- A well-balanced package of incentives to investors with additional negotiated benefits to strategic investors;
- Rapidly emerging as the most effective entry point and gateway for trade into Eastern, Southern and Central Africa; FAVOURABLE GEOGRAPHICAL LOCATION OF TANZANIA;
- Lucrative investment opportunities in infrastructure, privatisation and valueadding facilities.
- Investment guarantees, and settlement of Disputes. Investments in Tanzania are guaranteed against Political risks, Nationalization and Expropriation.
- Any foreign business operating in Tanzania may obtain credit from domestic financial institutions up to the limits established by the Bank of Tanzania. Major banks like Standard Chartered, ABSA, Barclays, Citibank, Stanbic, Exim etc. have invested in Tanzania.
- Existing investors are ready to expand their businesses in Tanzania as depicted in the recent survey conducted by TIC, BoT and NBS.
- Tanzania has been rated as number one investment destination with the highest sales growth by the UNIDO´s Report of Foreign Investor Perception Survey, November 2003.
Mining
Electricity
Natural gas
Mining
Mining contributed 3.3 percent of GDP in 2013. The vast majority of the country’s mineral export revenue comes from gold, accounting for 89 percent of the value of those exports in 2013. It also exports sizable quantities of gemstones, including diamonds and tanzanite. All of Tanzania’s coal production, which totalled 106,000 short tons in 2012, is used domestically.
Other minerals exploited in Tanzania include:
- Pozzolana
- Salt
- Gypsum
- Kaolinite
- Silver ore
- Copper
- Phosphate
- Tanzanite
- Tin
- Graphite
- Bauxite
Electricity
- The government-owned Tanzania Electric Supply Company Limited (TANESCO) dominates the electric supply industry in Tanzania. The country generated 6.013 billion kilowatt hours (kWh) of electricity in 2013, a 4.2 percent increase over the 5.771 billion kWh generated in 2012. Generation increased by 63 percent between 2005 and 2012; however, only 15 percent of Tanzanians had access to electric power in 2011. Almost 18 percent of the electricity generated in 2012 was lost because of theft and transmission and distribution problems. The electrical supply varies, particularly when droughts disrupt hydropower electric generation; rolling blackouts are implemented as necessary.
Natural gas
- According to PFC Energy, 25 to 30 trillion cubic feet of recoverable natural gas resources have been discovered in Tanzania since 2010. The value of natural gas actually produced in 2013 was US$52.2 million, a 42.7 percent increase over 2012.
- Commercial production of gas from the Songo Songo Island field in the Indian Ocean commenced in 2004, thirty years after it was discovered there. Over 35 billion cubic feet of gas was produced from this field in 2013, with proven, probable, and possible reserves totalling 1.1 trillion cubic feet. The gas is transported by pipeline to Dar es Salaam. As of 27 August 2014, TANESCO owed the operator of this field, Orca Exploration Group Inc., US$50.4 million, down from US$63.8 million two months earlier.
Download Resources
Connect With Us
Tuscany Office Park, Ground Floor, Building XI, 6 Coombe Place, Rivonia, 2128, Johannesburg South AFrica
Opening Hours:
Mon – Fri: 08:00 – 17:00 CAT
Useful Links
Subscribe: News & Updates
The latest SADC Business Council news, articles, and resources, sent straight to your inbox every month.