Tanzania Saw Strong Growth in FDI Projects in 2017

Tanzania Africa FDI Ranking 2017

Global services from EY has recently published the 8th edition of its annual Africa Attractiveness report, a key source of insight on foreign direct investment (FDI) in the continent. 

East Africa continued to register notable GDP growth in 2017, performing stronger than all other regions across the continent.

The region also registered a notable 82% increase in the number of FDI projects compared with 2016.

The share of FDI projects of Tanzania was 18%, in 3rd place after Kenya (34%) and Ethiopia (31%), followed by Uganda (7%), and Rwanda (6%).

In 2017, Tanzania posted a sharp rise in FDI projects, up by 59% from 2016, with 35 new projects.

With nine projects, real estate, hospitality and construction (RHC) attracted most of the capital, benefitting from government investment in infrastructure, as well as private investment in the development of a regional hydrocarbons sector.

Tanzania FDI

FDI net inflows to Tanzania rose by 13% from USD1.8b in 2010 to USD2.04b in 2014.

Investments in the country increased largely thanks to natural gas discoveries across the country.

In 2015, FDI net inflows in Tanzania decreased by 34% to USD1.5b from USD2.04b in 2014.

RELATED:  TIC Plan to Attract USD5b FDI to Tanzania by 2020