Tanzania Investment Centre Records $1.4 Billion in Investments in Q1 2024

The Tanzania Investment Centre (TIC) has released its Investment Bulletin for the period January-March 2024 which indicates a notable increase in the number of registered projects and job opportunities.

During Q1 2024, TIC registered 211 investment projects, with a total value of USD 1,475 million. These projects are expected to generate 24,931 new job opportunities.

The transportation and manufacturing sector performed particularly well, with a projected capital of USD 479.55 million and 454.23 million, followed by commercial building (USD 250.19 million), and tourism (USD 162.88 million).

This represents a remarkable increase of 111% in the number of approved registered projects compared to the same period of the previous year, where TIC registered 100 projects worth USD 1257.02 million that were expected to generate 17,016 new jobs.

Additionally, there has been an increase of 17.37% in capital and 46.51% in jobs created.

Projects Ownership

In the first quarter of 2024, ownership of projects has increased for both foreign, joint venture (JV), and local entities.

The number of projects owned by foreign entities has risen to 96, compared to 41 registered in the same period last year.

In terms of JV ownership, the number of projects remains the same as the previous quarter, with 24 projects registered.

Meanwhile, local entities have increased their ownership of projects to 91 from the 35 projects recorded in the corresponding quarter of 2023.

Regional Distribution Of Projects

During Q1 of 2024, the majority of the projects registered were located in Dar es Salaam, which attracted 85 projects. Pwani followed with 52 projects and Arusha with 10 projects.

Expansion And Rehabilitation Projects

During the third quarter, a total of 17 expansion and rehabilitation projects were registered. These projects are expected to create 2,743 jobs and attract a total investment of USD 258.66 million. The New Investment Act, No. 10 of 2022, which re-introduced fiscal incentives to expansion and rehabilitation projects, contributed to motivating existing domestic and foreign investors to re-invest project earnings in Tanzania. It is worth noting that TIC-registered projects under expansion and rehabilitation enjoy 75% import duty relief on imported project goods of capital nature (Deemed Capital Goods).

FDI and DI

Throughout the 3rd quarter, TIC has been engaged in active investment promotion and facilitation initiatives targeting to attract and facilitate investment activities for both domestic and foreign investors.

TIC investment data during this quarter reveals that Foreign Direct Investments (FDIs) constituted a major share of the overall approved projects with a total of USD 770.20 million equivalent to 52%.

It is worth noting that in the recent past, the government through the Investment Act and other strategies has instituted measures aiming at enabling Tanzanians to invest in the country which is gradually proving to bear positive results.

Particularly during the Q1 of 2024, TIC implemented the first phase of the National Investment Promotion Campaign traversing 18 regions which led significantly to the increase in Domestic Investments (DIs) as TIC registers a total of USD 701.93 million equivalent to 48% of the total TIC approved investments during the quarter.

FDI & DI By Sector

During Q1 of 2024, the top five sectors attracting FDI were Manufacturing, Commercial Building, Transportation, Tourism, and Agriculture. However, the top sectors attracting DI were Transportation, Manufacturing, Tourism, Commercial Building, and Energy.

FDI by Country

The top five sources of FDI recorded in the first quarter of 2024 were China, India, Bahamas, Mauritius, and the United Arab Emirates (UAE).