THE Tanzania Investment Centre (TIC) has set a goal of attracting investment projects valued at five billion US dollars (about 12tri/-) per year by 2026.
This means that the centre plans to register projects of 15 billion US dollars (about 36.5tri/-) in three years.
Current data released by the centre shows that TIC registered a total of 256 investment projects in 2021 valued at 3.8 billion US dollars, while in 2022-it recorded 293 projects worth 4.5 billion US dollars.
Further statistics recorded by the centre shows TIC registered a total of 229 projects valued at 2.2 billion US dollars from January to June 2023. This means that from January 2021 to June 30, 2023, it registered a total of 778 projects worth 10.5 billion US dollars.
“To reach the goal, we will ensure the use of technology and innovation in attracting Foreign Direct Investment (FDI) by effectively capitalising on our embassies abroad,” the TIC Executive Director, Mr Gilead Teri revealed on Monday, when addressing editors on the achievements recorded by the centre for 1,000 days from January 2021 to June 2023.
“In order to attain the three year goals, it is necessary for us to put emphasis on the implementation of the land bank manual, to be able to have enough land with infrastructure such as roads, electricity and water.
“We will continue to improve human resources capital by continuing to provide short-term, medium- and long-term training as well as continuing to improve the use of internal and external systems,” said Mr Teri.
Mr Teri further said that TIC oversee the implementation of the principles of the new investment law and prepare and implement a strategic plan for the centre as well as use of technology and innovation in attracting FDIs using Tanzania embassies.
The Tanzania Investment Act of 2022 repealed the Investment Act of 1997. Among others the new law reduces the minimum investment capital threshold for a business owned by a Tanzanian from 100,000 US dollars to 50,000 US dollars. The minimum investment capital threshold for foreigners remains 500,000 US dollars.
The Act also introduces an integrated electronic system, indicates duration and cancellation of certificates of incentives, removes an automatic immigration quota incentive and retained right to International arbitration and increases fine for non-compliance with the Act.
“We have set ourselves a giant goal but we trust it is possible because Tanzania is the country with the potential to attract many projects, including top quality infrastructures such as roads, airports and standard rail lines… we have enough land, coupled with low costs of electricity and water, and also our strategic geographic position enables us to export goods to many countries with huge capital like Asian countries, said Mr Teri.
He also said the investment projects of five billion US dollars per year, will make up seven per cent of the Gross Domestic Product (GDP) growth.
He said they also expect investment in the new sector — green climate technologies amounting to two billion US dollars in and another 1 billion US dollars in technological investment.
Furthermore, Mr Teri also said there will also be a 100 per cent growth in exports, which is caused by growth in agriculture, Fast-Moving Consumer Goods (FMCG), construction products, minerals and forest products.
He said there are countries that are similar to Tanzania in terms of population, but they attract more investment like Vietnam, where they attract investment of up to 38 billion US dollars per year, Indonesia 24 billion US dollars, Egypt 9.8 billion US dollars, therefore, he said Tanzania can achieve its goals as well.
“It is our vision that electronic products can also be produced in Tanzania, so that in the next three years, we can do assembling here in the country,” said Mr Teri.
Elaborating on the TIC success, Mr Teri said within the 1,000 days under President Samia Suluhu Hassan, there has been great success, where the centre was able to register 778 projects and create 125,382 new jobs.
He said that the factors that made the success possible included the registration of strategic projects, aftercare services for investors, the enactment of the New Investment Law, the installation of systems and their use, the provision of information to the public and the promotion of investment.