TZ among top investment destinations in Africa – report

TANZANIA is among the top ten investment destinations in Africa, thanks to reforms and a conducive investment environment set by the government.

The Rand Merchant Bank (RMB) ranked the country tenth in investment attractiveness, in the ‘Where to Invest in Africa 2021’ report released recently.

Rand Merchant Bank (RMB)

The East African nation has been on a rapid path of development over the past few years, a feat which has also seen one of Africa’s fastest growing economies claim the third spot within the EAC.

This progress can be attributed to consistent public investment from the government in key secondary and tertiary sectors, ranging from the energy sector to advancements in the telecommunications and finance sectors, according to the findings.

The Government Chief Spokesperson (pictured) recently revealed that the number of new investment projects registered in Tanzania between March and August in 2021, had risen to 133, with a worth of about 2.98billion US dollars (about 7tri/-).

These projects which have been registered by the Tanzania Investment Centre (TIC) are expected to create employment for 29,709 people in the country.

“Such a rise is attributed to the massive reforms being undertaken by the administration of President Samia Suluhu Hassan, aimed at making the investment environment more conducive,” explained Mr Msigwa.

Egypt comes first in the report followed by Morocco and South Africa at position two and three respectively, while Rwanda sits at number four.

Kenya, another East African nation is at number nine, according to the Where to Invest in Africa 2021 report.

According to the author, RMB Africa economist Daniel Kavishe, a new world called for a new approach to the publication.

Where previous reports positively projected Africa’s prospects – discerned through reliable and readily available data – Covid-19 has muddied the analytical waters and compelled the team to adapt their methodology.

The approach required an extra layer of sophistication, according to Mr Kavishe.

“We created a new set of rankings that incorporated some of the unavoidable Covid-19-induced challenges, of which the operating environment score was one,” he said.

A fiscal score was also part of the methodology, according to the economist, noting that of its importance in indicating how governments responded to Covid-19.

“Of these, three are central to fighting the pandemic and resuscitating economic conditions,” he contented.

“They are government intervention, a focus on our triple-threat sectors and healthcare,” Mr Kavishe said.

Historically, investment destinations in Africa have been ranked based on the tenets of economic activity and business operating environment.

Aimed at investors targeting real assets in an economy or looking to expand businesses that rely on physical infrastructure, the rankings offer a strong basis for investing.

“Although the pandemic brought much devastation, it also enabled opportunities for reimagining policies and trade relationships. Increasingly clear now is that homegrown strategies to tackle poverty, inequality and unemployment across Africa must be implemented. If not, all of Africa suffers,” added Mr Kavishe.

RMB is a leading African corporate and investment bank and part of one of the largest financial services groups in Africa.

In April this year, President Samia ordered sweeping reforms in the investment sector, as part of the government’s grand plan to restore investors’ trust in the country.

She said it was crucial for the country through the Investment Ministry to ensure Tanzania regains the investors’ trust by improving the climate that forces some of them to shift their business to other countries.

President Samia’s determination to support the private sector’s growth has continued to attract more investments and expand the tax base. Equally, she assured of the government’s commitment to address challenges in the investment and business sector for the sake of building a stable and sustainable economy.

 

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