Peace key to sustaining Tanzania’s investment boom
DAR ES SALAAM: PEACE and stability remain the backbone of Tanzania’s investment success. Economists and political analysts have urged citizens and government authorities to actively safeguard a calm political environment, warning that investor confidence depends heavily on it.
They cautioned that a repeat of incidents such as the unrest of October 29 last year could undermine the country’s investment appeal, potentially deterring both local and foreign investors and weakening Tanzania’s strong economic performance.
According to the analysts, political instability and unrest can erode investor confidence, leading to delays or even the withdrawal of planned investments. They therefore called for strong and proactive measures to prevent such incidents in the future.
Tanzania’s investment landscape reached a historic high in 2025 with surge in investment projects. Statistics released by the Minister of State in the President’s Office (Planning and Investment), Prof Kitila Mkumbo, Tanzania recorded a total of 915 investment projects valued at 10.95 billion US dollars (about 27tri/-) in 2025, the highest number since the country gained independence.
The projects were registered between January and December, marking 2025 as a historic year for investment attraction in the country.
The figure surpasses last year’s record of 901 projects worth 9.3 billion US dollars (about 23tri/-), underscoring Tanzania’s rapid progress in investment attraction. Notably, 51 per cent of the registered projects are dominated by Tanzanians, either as sole investors or through joint ventures.
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Economist at Saint Augustine University of Tanzania (SAUT), Dr Isaac Safari said recently that Tanzania has performed well in investment and that the investment climate has steadily improved since the start of the Sixth Phase government. He stressed that investment relies heavily on trust, which is built on peace, stability, legal certainty and consistent policy frameworks.
“Investment thrives on trust. Any form of violence or political uncertainty can erode that trust, causing investors to hesitate or even withdraw their capital,” Dr Safari said.
He added that while short-term events like the October unrest may not directly impact ongoing projects, they have a greater effect on new investment decisions, as potential investors often adopt a wait-and-see approach. Dr Safari said that most investors evaluate long-term trends over decades rather than reacting to isolated incidents.
“Many of the registered projects are already under implementation, some have begun operations, others are ongoing and some have already created jobs,” he said.
He called on the government to continue protecting peace, strengthening democratic institutions and ensuring that any disruptive incidents are resolved quickly, fairly and transparently to maintain the country’s image and investor confidence.
Mzumbe University, Senior Lecturer in Economics, Dr Eliaza Mkuna, echoed the sentiments, saying that attracting and retaining investors requires an environment that is both predictable and well understood.
“Investment does not happen by chance. It requires transparent systems, accurate information and ease of doing business in a consistent and sustainable manner,” he said.
Dr Mkuna added that security and stability often matter even more than incentives or policies.
“Security encompasses personal safety, protection of property, financial security, data privacy and the overall business environment. Any event that signals potential risks to citizens or their assets can create significant concern for investors,” he said.
He stressed that safeguarding peace is a shared responsibility involving the government, public institutions and society at large. He also urged citizens to remain calm and focused on economic activities while calling on the government to strengthen national unity, rebuild public trust and accelerate confidence-building initiatives.
Dr Mkuna commended the government for simplifying procedures, improving investor access to information and communicating opportunities clearly.
“The establishment of special economic zones and One-Stop Facilitation Centres is a critical step. These systems have significantly improved awareness and stimulated investment,” he said.
He further highlighted the government’s diplomatic efforts to promote economic cooperation with international partners as a major factor in strengthening the investment environment.
“Economic diplomacy has positioned Tanzania as a country of opportunity, peace and readiness for collaboration,” he said.
Nevertheless, he cautioned that challenges remain, including frequent policy changes and political transitions, which can create uncertainty for investors.
Political analyst Mr Hamiduni Maliseli stressed that violence and unrest could severely undermine investor confidence and prevent potentially transformative projects from taking root.
“Recent conflicts in countries such as Ghana, Ivory Coast, Mali, Burkina Faso, Mozambique, South Africa and Zimbabwe have affected the perception of Africa as a whole. Tanzania must ensure that internal disputes do not escalate into similar situations,” he said.
He called for strong mechanisms to prevent and manage conflict, stressing that investors respond more to actions than words.
“Security is demonstrated through the real conditions of peace, stability and protection of people and property,” he added. Young Tanzanians have echoed calls for safeguarding peace, recognising its direct link to investment and employment. Khalid Hood, a resident of Dar es Salaam, said young people must lead in protecting peace as it underpins economic opportunities. “When we protect peace, we protect our jobs. Every investment project coming into the country creates employment opportunities for youth,” he said.
Alphonce Hezron of Geita said that political and social differences should be managed through dialogue and respect.
“Peace does not mean the absence of opinions. It means expressing differences wisely and in the national interest,” he said.
He highlighted that youth behaviour, both in society and online, significantly shapes Tanzania’s international reputation.
“By being patient, patriotic and peaceoriented, we project Tanzania as a safe investment destination,” he said.
According to Prof Mkumbo the annual targets was to register projects worth 10 billion US dollars (about 25tri/-), but the Tanzania Investment and Special Economic Zones Authority (TISEZA) had registered projects valued at about 27tri/- as of December 29 this year.
The projects, which span manufacturing, agriculture, transport and commercial buildings are expected to create more than 168,000 jobs once fully operational, including positions requiring highly skilled personnel, particularly in science and engineering fields.
Prof Mkumbo attributed the impressive performance to President Samia Suluhu Hassan’s visionary leadership, characterised by a predictable legal and regulatory framework, strong institutions and political stability that prioritise investment as a key driver of socio-economic growth.
He recalled that in 2021, when President Samia assumed office, the country registered only 252 projects worth 3.79 billion US dollars (about 9.3tri/-), noting that the current record reflects sustained government efforts over the past four years to create a conducive environment for investors.
Furthermore, he commended TISEZA for translating the President’s vision into action by ensuring seamless investment facilitation through the One Stop Facilitation Centre (OSFC) and providing appropriate tax incentives to investors.
He said under the OSFC, investors can now obtain an investment permit from TISEZA within just 24 hours. The OSFC brings together 14 public institutions, including the Tanzania Revenue Authority (TRA) and the Business Registrations and Licensing Agency (BRELA), under one roof to speed up investment registration and processing.
Looking ahead, he said the target is to attract projects worth about 15 billion US dollars (around 37tri/-) in 2026 and a cumulative total of 50 billion US dollars (over 123tri/-) by 2030. At the continental level, Prof Mkumbo said Tanzania currently ranks nineth in Africa in terms of investment attractiveness, up from 12th position in 2024, citing data from Business Insider Africa.
“Tanzania continues to rank fairly high among African countries with a favourable investment and business climate,” he said.
With Seychelles currently leading in Africa, he said Tanzania aims to be among the top three African countries with the best investment environment by 2030.
In 2025, China emerged as the leading foreign investor in Tanzania, followed by the United Arab Emirates (UAE) and the United Kingdom, among others.
Driven by the goal of strengthening sectoral linkages, Prof Mkumbo identified agriculture, manufacturing and services as key sectors attracting investment as the country seeks to modernise its economy, where more than 60 per cent of citizens are engaged in farming.
In terms of regional job creation, Coast Region emerged as the leading job creation destination in 2025, generating more than 86,000 jobs, followed by Dar es Salaam with about 33,000 jobs. Other regions that performed well include Arusha, Dodoma and Mwanza.
