Investment boom creates thousands of jobs

DAR ES SALAAM: TANZANIA’S investment climate surged in 2023, with the number of registered projects jumping 15.2 per cent and their total value soaring by 55.8 per cent compared to the previous year.

Prime Minister Kassim Majaliwa announced in Dar es Salaam on Wednesday that the government registered 9,678 projects valued at 8,658 million US dollars (about 23.6tri/-) in 2023 up from 8,401 projects valued 5,558 million US dollar (about 15.2tri/-) registered in 2022.

Speaking during the launch of five pivotal reports along with an online portal designed to streamline business operations and enhance investment management across the country, the Premier said the significant increase underscores the country’s growing attractiveness to investors.

He said the registered projects are expected to generate 195,803 direct jobs, a significant increase from the 76,841 jobs created in 2022.

The launch event, attracted key stakeholders from various sectors, including government officials, businesses and international investors.

Mr Majaliwa said that these new resources will play a crucial role in simplifying procedures and increasing efficiency for both local and foreign investors.

“The tools will help us assess our progress, highlight the challenges we face and provide clear guidance on creating competitive and investor-friendly environments,” Majaliwa said.

One of the reports launched is an assessment of the implementation of Tanzania’s plan to improve its business and investment environment.

This report provides an overview of the progress achieved, existing challenges and actions taken to improve the business environment.

It will play a vital role in ensuring that business policies and plans are continuously adjusted to meet the actual market needs.

The second report is a guideline for managing Special Economic Zones (SEZs), offering best practices for SEZ management.

Mr Majaliwa said that this will ensure SEZs are optimally utilised, adding value, and attracting more investors.

The guideline covers land planning, feasibility studies, master plans and environmental assessments within investment zones.

It also outlines procedures for issuing licenses and offers incentives and facilitation services to all investors.

Additionally, the Prime Minister launched the 2023 National Investment Report, which presents critical information on the state of investment in the country.

The report identifies challenges and highlights available opportunities.

Mr. Majaliwa noted that this report is a crucial tool for policymakers and investors as it sheds light on the investment landscape and will assist in shaping future strategies.

Another key launch was the strategic plan for the President’s Office on Planning and Investment for the fiscal years 2024/2025 to 2025/2026.

The plan focuses on medium and long-term goals, contributing to a predictable and stable environment for investors in the country.

The Prime Minister also unveiled a new electronic system, the Business Facilitation Portal, which will serve all investors in the country’s SEZs, including Export Processing Zones (EPZs).

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This system is part of the government’s ongoing efforts to simplify investment procedures in Tanzania, offering streamlined services that reduce time, increase transparency, and encourage investment.

“These initiatives align with the government’s broader agenda to foster investment in both the public and private sectors, while also improving the business climate through policy reforms, regulations and laws,” Mr. Majaliwa said.

“The government has also strengthened ICT systems, including the Tanzania Electronic Investment Window, which allows investors to register projects and obtain permits within three days from anywhere in or outside the country.”

He said the first phase of this system is now complete, integrating seven key institutions, including Business Registration and Licensing Agency (BRELA), Immigration, Tanzania Investment Centre (TIC), and Tanzania Revenue Authority (TRA) to mention a few.

Moreover, Mr. Majaliwa said Special Economic Zones play a crucial role in industrial and economic development, particularly in export production and product availability in the local market.

The government has registered 34 SEZs, 23 of which are government-owned, and there is growing interest from the private sector to establish SEZs, especially industrial clusters.