TIC nets projects worth over 5tri/- in quarter one

DAR ES SALAAM:THE Tanzania Investment Centre (TIC) has registered 137 projects worth 2,069 million US dollars (about 5.2tri/-) in the first quarter (Q1).

This is significant increase in number of projects in comparison to the corresponding period last year, whereby 82 projects worth 2,417 million US dollars (about 6tri/-) were recorded.

The figure representing a 67 per cent increase in the number of approved registered projects with 14 per cent decrease in the value of the capital invested, according to the TIC recently released report covering the months of July, August and September in the 2023/2024 fiscal year.

“We take pride in a highly successful quarter, marked not only by the attraction of both Domestic and Foreign Direct Investment (DI and FDI), but also by the enhancement of investor confidence,” TIC’s Executive Director, Gilead Teri said in the report.

Mr Teri said TIC has been focusing on resolving domestic challenges, opening doors for expansion for investments and encouraging domestic entrepreneurs to leverage the opportunities available to them in order to qualify for investment incentives.

He said the new height in attracting investors is rooted in among others- President Samia Suluhu Hassan’s formation of the Ministry of Planning and Investment led by Professor Kitila Mkumbo as the Minister, which has been playing a pivotal role in steering investment promotion and facilitation activities in the country.

According to the report the 137 recorded projects in Q1 are expected to provide about 87,000 jobs in comparison to 12,000 jobs in a similar period in 2022/2023 fiscal year.

Registration of project by sector is led by the manufacturing sector, which has recorded 58 projects worth 356 million US dollars (about 891bn/-) with 8,634 jobs compared to last year in similar period where by the sector recorded 37 projects worth 2,155 million US dollar (5tri/-), creating 7,006 jobs.

According to the report, the manufacturing sector also has experienced an increase in the number of projects with decrease in value of capital invested.

The manufacturing sector is followed by the transport sector which has recorded 24 projects worth 223 million US dollar (500bn/-) and the commercial building sector, which recorded 17 projects worth about 528 million US dollars (about 1.2tri/-).

According to the report, the number of projects in the agriculture sector has doubled from six projects worth 7.5 million US dollars (about 17bn/-) in the Q1 of last financial year, to 15 projects worth 569 million US dollars (over 1.4tri/-) of the same quarter in this fiscal year.

Local ownership of the projects has increased to 45 from 30 projects marked in the corresponding quarter in 2022, while foreign ownership of the projects registered has increased to 49 projects, compared to 38 projects recorded in the same period in 2022, reads the report.

Furthermore, joint venture ownership has increased to 43 projects in Q1 from 14 projects in the same period last year.

According to the report, Domestic Investments (DIs) accounted for 49 per cent of total approved investments worth 1,016 million US dollars (about 2.5tri/-) in comparison to Foreign Direct Investments (FDIs) that accounted for 51 per cent of total approved investments worth 1053.32 million US dollars (about 2.6tri/-).

“In this Q1, commercial building, manufacturing, agriculture, services, and transportation were the top five sectors in attracting FDI. These sectors also led in terms of expected job creation and the value of investments registered. However, the top sectors in attracting DI are agriculture, economic infrastructure, transportation, manufacturing, and commercial building,” reads the report.

According to the report, in this Q1 the projects are primarily concentrated in Dar es Salaam, which attracted 54 projects, followed by Coast Region 20 projects and Mwanza 11 projects.

FDI by country, according to the report, China is the leading investor with capital worth 614 million US dollars (about 1.5tri/-), followed by Singapore 139 million US dollars (about 325bn/-), Germany 119 million US dollars (about 297bn/-), India 42 million US dollars (about 105bn/-) and Mauritius with a total capital worth 25 million US dollars (about 63bn/-).

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