Growth, reforms lift investors’ confidence
DAR ES SALAAM: TANZANIAN’s steady economic growth and commitment to structural reforms have positioned it as one of Sub-Saharan Africa’s most attractive investment destinations.
The country’s Gross Domestic Product (GDP) is projected to grow by 6.2 per cent in 2025, building on the momentum of 4.7 per cent growth in 2022 and 5.1 per cent in 2023, according to the World Bank.
According to KPMG’s ‘Doing Deals in Sub-Saharan Africa report – October 2023’, Tanzania is now ranked as the third most preferred investment destination in the region, trailing only South Africa and Nigeria.
The report cites Tanzania’s sound macroeconomic policies, improved regulatory environment and sustained reform agenda as key drivers of investor confidence.
The report also highlights Tanzania’s positive investment climate and growth opportunities, making it one of the top choices for prospective investors in sub-Saharan Africa.
Moody’s Investors Service and Fitch Ratings have also assigned favorable credit ratings to the country.
The government’s efforts to improve the business environment, alongside constructive engagement with the international community, have supported the assessments. Moody’s rated Tanzania with B2+, while Fitch affirmed a ‘B+’ rating, both indicating a stable outlook.
The ratings reflect Tanzania’s relatively strong macroeconomic fundamentals high real GDP growth, low inflation and moderate debt levels underpinned by ongoing structural reforms.
In the World Bank’s 2023 report on the 30 largest African economies, Tanzania was ranked as the third fastest-growing economy on the continent, with a 5.1 per cent growth rate.
Similarly, the African Development Bank’s report, From Millions to Billions: Financing the Development of African Cities, placed Tanzania among the top 10 fastest-growing economies in Africa in 2023.
ALSO READ: Private sector helps Dar Port reap 8.26tri/- in revenue
The country secured the fifth spot, with a GDP growth of 5.2 per cent, thanks to its diversified economy that significantly contributes to regional growth.
Speaking in Dar es Salaam recently, the Minister for Finance Dr Mwigulu Nchemba said the government’s vision is to create a modern and competitive economy driven by private sector growth. He said Tanzania’s geographical location is another major advantage.
He described it as a natural gateway to East Asia. He said the country offers unmatched access to global trade routes.
Moreover, Tanzania enjoys preferential access to over 400 million consumers through the East African Community (EAC) and Southern African Development Community (SADC) regional blocs.
Over the past few years, Tanzania has introduced farreaching legal and institutional reforms aimed at attracting both local and foreign investment.
These include streamlining business registration and licensing processes, improving land acquisition systems, digitizing public services and modernizing tax and customs administration.
The government has also prioritized the development of Special Economic Zones (SEZs) and granted strategic investor status to high-impact projects, particularly in energy, infrastructure, agriculture and manufacturing.
The country has also enhanced its investor outreach by participating in global investment forums and promoting public-private partnerships (PPPs) as a way to bridge infrastructure and financing gaps.
